Major International Business Headlines Brief::: 22 July 2019

[Bulls n' Bears]

 <http://www.bulls.co.zw/> Bulls.co.zw
<mailto:info at bulls.co.zw?subject=View%20and%20Comments> Views & Comments
<http://www.bulls.co.zw/blog> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

 


 

 


Major International Business Headlines Brief::: 22 July 2019

 


 

 


 <http://www.nedbank.co.zw/> 

 


 

 


 

 

*  PepsiCo to buy South Africa's Pioneer Food for $1.7 bln

*  Sub-Saharan Africa to stay on recovery path, rate cuts on the horizon

*  Nigeria's central bank tries to force banks to lend, not buy bills

*  South Africa's rand retreats as Fed pendulum swings back to soft cuts

*  South Africa's rand rallies after central bank cuts rates

*  Barrick set to take full control of Acacia after raising bid

*  Nasper's delayed internet assets float to go ahead in September

*  Kenyan shilling weakens due to excess liquidity

*  South Africa cuts rates as economy weak, inflation steady

*  HS2: High-speed line cost 'could rise by £30bn'

*  Luxury goods join Hong Kong retail slump as protests bite

*  Crossrail costs will continue to climb, MPs say

*  Maybe Facebook will be punished after all

 

 


 <mailto:info at bulls.co.zw> 

 


 

PepsiCo to buy South Africa's Pioneer Food for $1.7 bln

JOHANNESBURG (Reuters) - PepsiCo has struck a deal to buy South Africa’s
Pioneer Food Group for $1.7 billion, the companies said on Friday, lifting
Pioneer’s shares and boosting a sector that has been hit by drought and
tough trading conditions.

 

The U.S. drinks and snack group said on Friday that Pioneer’s product
portfolio was complementary to its own and would help PepsiCo to expand in
sub-Saharan Africa by adding manufacturing and distribution capabilities.

 

“Pioneer Foods forms an important part of our strategy to not only expand in
South Africa, but further into sub-Saharan Africa as well,” PepsiCo Chairman
and CEO Ramon Laguarta said in a statement.

 

PepsiCo has offered 110 rand ($7.94) per Pioneer ordinary share in what
would be its second largest deal since 2010, the companies said, with the
news lifting the South African company’s shares by 29.32% to more than 100
rand.

 

Shares in agribusiness investment company Zeder Investments, which holds
Pioneer as part of its portfolio, also rose more than 22%.

 

“It’s a vote of confidence in South Africa at a time when we really need
it,” Pioneer CEO Tertius Carstens told Reuters.

 

Food producers have struggled amid a slump in retail sales as consumers cut
back and dry weather hit maize and other produce.

 

Pioneer, which uses maize in many of its products, reported a decline in
half-year earnings in May, weighed down by shortages in the staple food.

 

“It’s almost a signal to other overseas companies that we are open for
business. If PepsiCo is willing to put money down it may lift sentiment of
other foreign investors that might come looking at South Africa for
bargains,” said Greg Davies, equities trader at Cratos Capital.

 

Pioneer, whose brands include Weet-Bix cereal, Liqui Fruit juice and Sasko
bread, is the latest consumer goods firm to be the target of a buyout after
South Africa’s Clover Industries, which processes products including
yoghurt, beverages, and olive oil, began takeover talks with a consortium of
companies called Milco SA last year.

 

Pioneer was in talks over a potential deal with “a multinational
organisation” in 2017, but that fell apart after South Africa’s credit
rating was cut to junk status.

 

Pioneer and PepsiCo declined to comment whether those talks referred to
them.

 

Pioneer exports to more than 80 countries. Its deal with PepsiCo is
conditional on regulatory approvals.

 

($1 = 13.8613 rand)

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Sub-Saharan Africa to stay on recovery path, rate cuts on the horizon

JOHANNESBURG (Reuters) - Sub-Saharan Africa will stay on its recovery path
next year provided heavyweight economies punch better, a Reuters poll found,
but it will still grow below potential for a part of the world with a
growing population.

 

A poll of 15 analysts and economists taken this week showed Nigeria,
Africa’s biggest economy, would grow 2.6% next year and Kenya would grow
5.8%. In both cases this is 0.2 percentage points slower than thought in
April.

 

“Growth should gain slightly more traction next year, supported by a
tendency towards looser monetary policy which will support consumption,”
said Cobus De Hart, chief economist for north and west African countries at
NKC African Economics.

 

Nigerian economic growth accelerated but Kenya’s slowed in the first quarter
of the year compared to the same time last year.

 

However, even if Ghana’s growth slows as expected to 6.1% in 2020 from 6.5%
this year, next year’s performance would still be faster than the 6.0%
predicted in the last survey.

 

Interest rates - in Ghana at 16%, Nigeria at 13.5% and Kenya at 9% - are
expected to be left unchanged next week, although Nigeria will probably ease
in September and the other two next year. Other major global central banks
look set to ease policy soon.

 

Economists largely agreed Sub-Saharan Africa’s growth - which the
International Monetary Fund forecast in April would grow at 3.5% this year -
would stay on the recovery path next year.

 

South Africa’s Reserve Bank joined other emerging market banks in cutting
interest rates on Thursday and De Hart said South Africa would perform
slightly better and act as less of a drag on regional growth.

 

He included Angola, the third biggest economy in Africa when excluding
northern countries such as Egypt and Algeria, as another heavyweight if
Nigeria disappoints.

 

South Africa - where growth is expected to accelerate to 1.4% next year from
0.7% in 2019 - has been, alongside Nigeria, a drag on the continent as
combined they make up about 50% of Africa’s economy.

 

“West Africa is picking up pace nicely, not so much Nigeria though where the
rebound is now again looking more fragile. East African growth is seen
slowing slightly but will remain very robust from a regional perspective,”
said De Hart.

 

Zambia has also not been performing well due to a huge debt problem that has
weighed on growth prospects. Zambia is expected to grow 3.3% next year, 0.3
percentage points higher than this year but slower than the almost 4.0% it
grew last year.

 

African leaders launched a continental free-trade zone on Sunday after
Nigeria finally signed up. If successful, it will unite 1.3 billion people
and create a $3.4 trillion economic bloc, ushering in a new era of
development.

 

But infrastructure bottlenecks have often frustrated efforts to develop an
African manufacturing base similar to the Asian tigers.

 

“The meaningful impact would take at least 10 years of deliberate
implementation,” said Rafiq Raji, chief economist at Macroafricaintel in
Lagos.

 

There will need to be a greater political will to make the trade pact work
and avoid past failures, analysts said.

 

“Hurdles remain, with burgeoning youth populations, high unemployment,
shrinking global value chains, and increasing deglobalisation. African
governments have little choice but to make the AfCTA work,” said Raji.

 

 

 

 

Nigeria's central bank tries to force banks to lend, not buy bills

LAGOS (Reuters) - Nigeria’s central bank barred banks from buying bills for
their own accounts at an open market auction held on Thursday, a move
intended to force them to lend rather than invest in government debt,
traders said on Friday.

 

The bank is stepping up a campaign to get credit flowing. Last week, it
limited the size of interest-bearing deposits it would hold for banks, the
latest in a series of measures aimed at reviving an sluggish economy

 

The central bank, which had not issued market stabilisation bills for about
a week before Thursday’s auction, told banks bids must be backed by customer
demand. In the past, banks have bought government debt rather than assume
risk by lending.

 

It was unclear if the order applied to Thursday’s auction only. Banks can
still purchase bills on the secondary market, traders said.

 

At Thursday’s open market auction, the central bank offered 75 billion naira
($245.14 million) of bills, drawing demand totalling 475 billion naira for
the various maturities. The bank sold one-year bills at a yield of 12.25%.

 

A trader said Thursday’s auction was aimed at non-bank investors, adding
that the central bank has considered offering bills directly to foreign
investors to support the currency.

 

STRUCTURAL REFORMS NEEDED

The central bank had been issuing securities at high yields to mop up naira,
a policy it maintained for more than two years to attract foreign inflows
into bonds and support the naira.

 

It was unclear which option the central bank wants to pursue: boosting
credit flow locally or maintaining a stable currency in the face of high
inflation and dollar shortages.

 

At its last rate meeting in March, the bank cut rates by 50 basis points for
the first time since November 2015, saying it wanted to signal a new
direction. Analysts expect another 50-bp rate cut on Tuesday.

 

Bankers doubt the measure will do much to boost lending unless credit risk
is addressed through reforms.

 

“I’m not quite sure this is an effective way of getting banks to put their
balance sheet on the line to areas where they clearly perceive risk,” one
banker told Reuters. “The central bank wants to drive growth in the economy
without structural reforms, which is counter-productive.”

 

Nigerian President Muhammadu Buhari won re-election in February and has
pledged to get the economy growing again. But he has failed to set up a
cabinet months after gaining a second term.

 

Analysts said recent policies aimed at boosting loans to revive the economy
could have a knock-on effect by lowering yields to unattractive levels for
foreign investors, which could weaken the naira.

 

($1 = 305.9500 naira)

 

 

 

South Africa's rand retreats as Fed pendulum swings back to soft cuts

JOHANNESBURG (Reuters) - South Africa’s rand weakened on Friday, giving back
some of the big gains from the previous session as expectations of an
aggressive interest rate cut by the Federal Reserve cooled, prompting
investors to pocket end-of-week profits.

 

At 1520 GMT the rand was 0.63% weaker at 13.9275 per dollar from a
session-best of 13.8150 in early trade after momentum from a local rate cut
on Thursday, seen as a boost to faltering economic growth had lured
investors looking to shed long dollar positions.

 

The South African Reserve Bank (SARB) cut rates by 25 basis points to 6.5%
in a unanimous decision on Thursday, although it struck a cautious tone
suggesting future reductions to borrowing costs were not a foregone
conclusion despite benign inflation.

 

On Friday the New York Federal Reserve walked back dovish comments from its
president the prior day saying pre-emptive measures were needed to avoid
too-low inflation and interest rates.

 

A New York Fed representative said New York Fed president John Williams’
comments were not about immediate policy direction, dragging the greenback
back from a two-week low. At 1520 the dollar measured against a basket of
currencies was 0.37% firmer.

 

The U.S. central bank decides on rates on July 31.

 

Bonds also weakened, with the yield on the benchmark 10-year government
issue adding 4.5 basis points to 8.02%.

 

On the bourse, stocks rose along with emerging market shares and currencies
after comments from a top Federal Reserve official reinforced expectations
of a U.S. interest rate cut this month, stoking demand for riskier assets.

 

The benchmark Johannesburg Stock Exchange Top-40 Index was up 0.72% at
52,107.18 points while the broader All-Share Index closed 0.65% higher at
58,248 points.

 

Musa Makoni, GT247 trader, said trades were firmer earlier in day, following
the trend in Asia, with stocks in Europe and the U.S. also on the up.

 

He also highlighted the performance of Pioneer Food Group, which shot up
32.09% to 101.35 rand after it was bought by PepsiCo for $1.7 billion
dollars. Shares in agribusiness investment company Zeder Investments, which
holds Pioneer as part of its portfolio, also rose 23.17%.

 

Other blue-chip winners of the day include mining company Gold Fields which
rose 2.97% and services, trading and distribution company Bidvest which was
up 2.83%.

 

 

 

South Africa's rand rallies after central bank cuts rates

JOHANNESBURG (Reuters) - South Africa’s rand edged higher against the dollar
in early Friday trade and bond yields fell after the central bank cut its
main lending rate by 25 basis points on Thursday in a widely expected move
to counter floundering economic growth.

 

At 0730 GMT the rand was 0.13% firmer at 13.8225 per dollar, after closing
at 13.8400 in the previous session.

 

The South African Reserve Bank (SARB) cut rates by 25 basis points to 6.5%
in a unanimous decision, its first easing since March 2018, although it
struck a cautious tone suggesting future reductions to borrowing costs were
not a foregone conclusion despite benign inflation.

 

“The rand managed to hold its own again this week, trading in a tight range.
Continuous carry trade remains one of the most prominent reasons for the
rand’s resilience,” Bianca Botes, Treasury Partner at Peregrine Treasury
Solutions said in a note.

 

Government bonds were firmer, with the yield on the benchmark 2026
instrument down 1 basis point to 7.965%.

 

On the bourse, stocks rose more than 1%, led by food producer Pioneer Food
Group after U.S.-based beverage and snack maker PepsiCo made a takeover
offer of $1.7 billion.

 

Shares on Pioneer surged 28.80% to 99.95 rand after the announcement.

 

The benchmark JSE Top-40 Index firmed 1.02% at 52,263 points while the
broader All-Share Index rose 1.03% to 58,470 points.

 

 

 

Barrick set to take full control of Acacia after raising bid

LONDON (Reuters) - Barrick Gold Corp has struck a deal to buy out fellow
shareholders in Acacia Mining after raising its offer to end a two-month
standoff between the world’s second biggest gold miner and its African unit.

 

Acacia shares jumped about 20% in early Friday trading towards the offer
price. The deal was announced hours before a regulatory deadline for Barrick
to make a firm bid or walk away.

 

Barrick spun off Acacia in 2010, but still owns a 64% stake and said earlier
this year it wanted to take back full control as it sought to resolve a
protracted dispute between Acacia and Tanzania over valuable mining assets.

 

Barrick is now offering 0.168 of its own shares for every Acacia share,
worth about 232 pence per share and valuing the whole of Acacia at 951
million pounds ($1.2 billion).

 

In addition, minority Acacia shareholders could get special dividends on
Acacia exploration properties, which would add another 9 pence per share,
making a total of 241 pence.

 

Barrick first made an offer to buy out other Acacia shareholders in May,
worth 193 pence per share.

 

“It’s a good deal, especially given the current situation in the country,”
Acacia’s interim CEO Peter Geleta said in a telephone interview, referring
to the company’s long-running tax dispute with Tanzania.

 

“We think it’s a good deal for all stakeholders,”

 

Geleta said the agreement represented a 53.5% premium to Acacia’s share
price at the time of Barrick’s indicative offer in May, as well as a 24.3%
premium to Acacia’s closing price on Thursday.

 

Taking into account the special dividends, which depend on asset sales, it
would be a 60% premium.

 

Barrick’s offer in May triggered an angry response from minority Acacia
shareholders who said it undervalued the company’s mine plans and ignored
the value of its exploration and development assets.

 

TANZANIA TENSIONS

Relations between Barrick and Acacia have been strained for years,
particularly after Acacia was hit with a $190 billion tax bill by Tanzania -
later reduced to $300 million in a 2017 agreement - as Barrick took a lead
in talks with the government.

 

Tanzania has piled on the pressure, threatening a ban at Acacia’s North Mara
mine from Saturday that could halt operations at the company’s biggest
revenue earner.

 

That threat remains in place and Geleta said he hoped a swift resolution
could be agreed with Tanzania.

 

In a sign of its willingness for a deal, Acacia said on Wednesday it would
seek a stay to international arbitration proceedings against Tanzania, which
were meant to start on Monday.

 

The deal with Barrick will be “a good opportunity to rebuild relationships,”
Geleta said.

 

Another pressing issue is that two Acacia employees and one former employee
have been in jail in Tanzania since October.

 

Tanzania’s government was positive about the deal on Friday.

 

“We commend the two parties for the mutual agreement thus far. We will
eagerly wait for official communication from Barrick to chart the way
forward,” Tanzania government spokesman Hassan Abbasi tweeted.

 

In a note, analysts at Panmure Gordon, which rates Acacia “hold”, said they
saw “a high probability” of the deal being completed and that it represented
fair value for Acacia.

 

($1 = 0.7988 pounds)

 

 

Nasper's delayed internet assets float to go ahead in September

JOHANNESBURG (Reuters) - South African media and e-commerce giant Naspers
said on Friday the delayed multi-billion euro listing of its international
internet assets, including its over 30% stake in China’s Tencent, will go
ahead on September 11.

 

“It’s a significant step for Naspers and will present a new opportunity for
global internet investors,” CEO Bob van Dijk said in a statement, adding he
was pleased the listing was on track following the delay.

 

 

 

Kenyan shilling weakens due to excess liquidity

NAIROBI (Reuters) - The Kenyan shilling weakened against the dollar on
Friday due to excess liquidity in the local money markets, traders said.

 

At 0808 GMT, commercial banks quoted the shilling at 103.05/25 per dollar,
compared with 102.95/103.05 at Thursday’s close.

 

The weighted average daily interbank lending rate dropped to 1.9981 percent
on Thursday, from 2.0705 percent during the previous session, Refinitiv data
showed.

 

 

 

South Africa cuts rates as economy weak, inflation steady

PRETORIA (Reuters) - The South African central bank cut its main lending
rate by 25 basis points to 6.50%, as expected, citing weak economic growth
and inflation which has stayed around the midpoint of its target range.

 

The last time the South African Reserve Bank (SARB) cut its repo rate was in
March 2018.

 

The SARB is one of many central banks under pressure to ease monetary policy
as fears over domestic and global growth have intensified.

 

“The MPC welcomes the continued downward trend in recent inflation outcomes
and the moderation in inflation expectations of about one percentage point
since 2016,” SARB Governor Lesetja Kganyago told a news conference.

 

Kganyago said the overall risks to the inflation outlook were assessed to be
largely balanced and that economic growth was expected to rebound in the
second quarter after a sharp 3.2% contraction in the first quarter.

 

Thursday’s rate decision was unanimous.

 

Twenty-four of 30 economists polled by Reuters expected the rate to be
lowered to 6.50%. Two expected a cut of 50 basis points and the other four
said rates would be left unchanged.

 

Earlier this year a faction in the governing African National Congress (ANC)
pushed for the SARB’s mandate to be broadened to explicitly include boosting
economic growth and job creation, as well as price stability.

 

Another faction aligned with President Cyril Ramaphosa said no such plans
were being considered, but it was enough to rattle markets.

 

Kganyago, recently re-appointed to a second five year-term, is a staunch
defender of the bank’s independence.

 

 

 

HS2: High-speed line cost 'could rise by £30bn'

The chairman of the High Speed 2 rail project has reportedly warned that its
cost could rise by £30bn.

 

HS2 chairman Allan Cook has written to the Department for Transport to say
the high-speed line cannot be delivered within its £56bn budget, according
to the Financial Times.

 

The DfT said a review of HS2's costs is continuing.

 

The line will connect London, the Midlands and northern England using trains
capable of travelling at 250mph.

 

"The chairman of HS2 Ltd is conducting detailed work into of the costs and
schedule of the project to ensure it delivers benefits to passengers, the
economy and represents value for money for the taxpayer," the DfT said in a
statement.

 

"This work is ongoing. We expect Allan Cook to provide his final assessment
in due course."

 

What do we know about HS2?

Is the HS2 rail project in trouble?

The first segment of the project between London and Birmingham is due to
open at the end of 2026, with the second phase to Leeds and Manchester
expected to be completed by 2032-33.

 

An HS2 spokesperson said: "We don't comment on leaks or speculation.

 

"We have previously noted that our chair, as you would expect, continues to
scrutinise the programme, and regularly reports back to the Department [for
Transport].

 

"We are determined to deliver a railway that rebalances the economy, creates
jobs, boosts economic growth and is value for money for taxpayers."

 

Mr Cook was appointed to head HS2 in December 2018 after his predecessor,
Sir Terry Morgan, resigned as chairman because of delays at the Crossrail
project in London which he was also leading.

 

 

There has been no denial that this letter was sent by the chairman of HS2 to
the top civil servant at the Department for Transport.

 

And none of my contacts have rubbished the "potential £30bn overspend" idea
outright.

 

Sources at HS2 and at the DfT insist Allan Cook's review is ongoing and that
he has not settled on a final figure.

 

That may be true, but there has been a subtle shift of tone in recent months
from both HS2 and the government; a creeping acceptance that the project, in
its current form, is increasingly unlikely to come in within its £56bn
budget.

 

And there has already been plenty of evidence suggesting that the project's
original estimates of how much it would cost to purchase land and property
along the route were significantly below the true values.

 

This leak, which feels at the very least like a case of 'no smoke without
fire', comes at a very sensitive time.

 

Transport Secretary Chris Grayling, who has repeatedly insisted that the
project HAS to be delivered within budget, is possibly leaving his post in a
matter of days.

 

Boris Johnson - considered the front-runner to be the UK's next prime
minister - is by no means a die-hard fan of the scheme.

 

And Mr Johnson has already nominated a former HS2 executive, Douglas
Oakervee, to carry out a separate review of the project if he gets the keys
to No 10 next week.

 

£56bn was already a hefty sum. As a former senior official at the Treasury
puts it: "In terms of value for money it [HS2] scores lower than lots of
other projects."

 

And the government "is taking quite a big risk" by putting so much money
into high-speed rail, the source told me.

 

That risk looks set to rise.--BBC

 

 

 

Luxury goods join Hong Kong retail slump as protests bite

Luxury brand Richemont is the latest firm to report a hit to business over
ongoing protests in Hong Kong.

 

The Swiss company said political unrest in Hong Kong, a key market for its
watches, has knocked sales.

 

Retailers in the territory forecast a sharp sales drop this year due to the
protests, while tourism is also suffering.

 

Demonstrators have filled Hong Kong's streets over the past month with more
protests expected this weekend.

 

The demonstrations were sparked by a proposed extradition bill which would
allow people to be sent to mainland China for trial.

 

But they now reflect broader demands for democratic reform and concern that
Hong Kong's freedoms are being eroded.

 

 

The sometimes violent clashes have disrupted business in the city, a hub for
wealthy Asia shoppers.

 

Unrest has forced many stores to close and sparked widespread trading
disruption.

 

In a statement on Thursday, Richemont said sales in the Asia-Pacific rose in
the three months to June with the exception of Hong Kong, where sales sank
due to the recent street protests and the strength of the local dollar.

 

This week the Hong Kong Retail Management Association (HKRMA) said most
members had seen sales fall during in the past month, and forecast more pain
to come.

 

"The unexpected store closures due to the protests not only led to sales
loss, but also directly affected retail staff's take-home income, especially
part-time staff and those paid on a commission basis," the HKRMA said in a
statement.

 

The group said July and August are peak business seasons retailers and as
protests continue and spread, "our members forecast a drop by double digit
in the next months".

 

Tourism operators have also voiced their concerns.

 

The Hong Kong Federation of Unions said the number of tour groups from
mainland China has declined to 5,641 in June from a monthly average of 7,800
at the beginning of the year, according to reports.

 

The group also said hotel occupancy rates were down as much as 20% in June
from a month earlier, and forecast rates could drop 40% this month on the
prior year.--BBC

 

 

 

Crossrail costs will continue to climb, MPs say

London's Crossrail project will probably go even further over budget,
according to a report by MPs.

 

Commuters have been "let down" by a programme that is well behind schedule,
the Public Accounts Committee said.

 

MPs said they were "sceptical" about the Department for Transport's "ability
to oversee major rail projects".

 

In response, the Department for Transport said it had acted "swiftly and
effectively" when problems at Crossrail became clear.

 

Construction on the Crossrail route began in 2009. It is Europe's biggest
infrastructure project.

 

It has been officially named the Elizabeth Line in honour of the Queen. When
completed, it will serve 41 stations, connecting Reading, to the west of
London, with Shenfield, to the east.

 

The line will make use of some existing track, but involves 26 miles of new
tunnels connecting Paddington and Liverpool Street stations to improve rail
capacity crossing the capital.

 

The project was allocated £14.8bn in 2010, but this has since swollen to
£17.6bn.

 

While it was originally expected to start running services throughout the
line in December, Crossrail now expects it to open as late as March 2021.

 

The Public Accounts Committee also criticised the bonuses paid to bosses,
even as the project faltered.

 

The chief executive at the time, Andrew Wolstenholme, was paid a bonus of
£481,000 for the year to 2016 and £160,000 for the year to 2017.

 

The Department for Transport allowed itself few powers to curb bosses' pay
following their failings, it said.

 

"While the department is now working to learn and apply the lessons from
what went wrong with Crossrail, it should acknowledge that this is far from
an unfamiliar tale," the committee said.

 

"We have witnessed cost increases and delays on major rail projects several
times over the past few years and the department still does not appear to
have got a grip on the problem."

 

A spokesperson for the Department for Transport said: "The department
consistently challenged the leadership of Crossrail Ltd - a wholly owned
subsidiary of TfL [Transport for London] - on the delivery of the project.

 

"When problems became clear, the department acted swiftly and effectively,
changing the leadership of the board and strengthening governance
structures.

 

"The new Crossrail Ltd management team has now produced a new plan to open
the railway, and the department and TfL will continue to scrutinise progress
to ensure this happens as soon as possible."

 

Crossrail split the work between 36 contractors, creating a large burden of
organisational work, the report said.

 

A spokesperson for Crossrail said: "The Elizabeth Line is one of the most
complex infrastructure projects ever undertaken in the UK and we recognise
many of the challenges raised in the Public Accounts Committee report.

 

"The new leadership team's plan to complete the Elizabeth Line continues to
be kept under careful review. Progress against our plan will become clearer
in 2020, once we start to fully test the operational railway and integrate
the train and signalling software.

 

"We are fully focused on completing the Elizabeth Line and ensuring a safe
and reliable passenger service as quickly as possible."

 

An estimated 200 million passengers will use the new underground line
annually, increasing central London rail capacity by 10% - the largest
increase since World War Two.

 

Crossrail says the new line will connect Paddington to Canary Wharf in 17
minutes.

 

In May, Crossrail was criticised by the National Audit Office for running
late and over budget, suggesting that bosses had clung to an unrealistic
opening date.--BBC

 

 

 

Maybe Facebook will be punished after all

Many were left wholly unsatisfied by news that the punishment for Facebook's
privacy misdeeds, from the US at least, would be set at $5bn - an amount the
firm can well afford, and for which it had already mostly accounted.

 

The mood among the network’s critics: Mark Zuckerberg has gotten away with
it.

 

But if there is to be a real punishment for Facebook, we may have seen it
playing out in Washington DC this week.

 

Facebook’s ambitions to launch a cryptocurrency represents the biggest
project the company has undertaken since the dorm-room conception of
Facebook itself. Over two congressional hearings this week, Facebook’s David
Marcus repeated the potential benefits: easier money transfer around the
world, and the chance to reach more than one billion “unbanked” people.

 

But such is the animosity towards Facebook in Washington DC today, the firm
may not be allowed to launch it at all. It would be a big blow to the
company’s desire - and necessity - to diversify the way it makes its money,
at a time when the relative freedom to gather personal data with the intent
to sell advertising is coming under threat.

 

Libra could be misused, says treasury chief Mnuchin

Facebook's cryptocurrency attacked at Senate hearing

As Facebook’s army of lobbyists will know, even in divided America, stifling
the network’s power is apparently one of the few surviving bipartisan goals.
Every move Facebook now makes will draw concern from lawmakers, even if the
idea in isolation appears to be worth exploring.

 

“Just because we may not fully understand a technology proposal,” remarked
Republican Patrick McHenry, “does not mean we should immediately call for
its prohibition.

 

“But let’s face it. Let’s be honest
 it’s Facebook.”

 

'We cannot accept a new currency'

A draft bill entitled “Keep Big Tech Out of Finance”, seeks to ban any
technology company with yearly revenues in excess of $25bn (£20bn) from
entering the finance sector. Realistically, it’s too sweeping a measure to
pass, but it does draw attention to a determination here to not let
Facebook’s next moves go unchecked.

 

And that’s a feeling which extends beyond the US. Just as hearings were
taking place in Washington DC, finance ministers from the G7 countries were
meeting in Chantilly, near Paris.

 

Italy’s finance minister told reporters he would move to keep Facebook in
check, seeing Facebook’s ambitions in this space as a move to “control
what’s going on”.

 

His French equivalent, Bruno Le Maire, was similarly concerned. You might
even say incensed.

 

"I would say this is first of all a question of sovereignty,” he told
reporters. "You have states, the United States, France, Germany, Italy - all
sovereign states with sovereign currencies: dollar, euro and so on and they
are sticking to some very strong commitments, some very strong rules.

 

Will Facebook's digital money Libra be good for Africa?

“We cannot accept a new currency having the exact same kind of power,
without the same kind of rules, without the same kind of commitments and
without the same kind of obligations.”

 

Like US lawmakers, he’s concerned about the use of Libra to fund terrorism,
buy illegal goods, or launder money. It’s not hyperbole - many
cryptocurrencies, most famously Bitcoin, have been used for such purposes.

 

Mr Le Maire said: "How could we accept to have now a new currency which
wouldn’t stick to the same kind of obligation?”

 

'Change is here'

Facebook feels it will be able to build in sufficient protections to address
the concern. For starters, those who use Facebook’s own wallet - Calibra -
to trade the Libra currency, must upload a government ID, removing the
anonymity afforded by other digital currencies.

 

More broadly, David Marcus said, the Libra currency ultimately won’t be
fully controlled by Facebook - it is one of dozens of companies and groups
that have a say in how Libra will be set up, managed and secured.

 

Facebook will have no dominant position (though as the biggest player, you
could argue Facebook will command one, even if it isn’t technically in
charge)

 

Mr Marcus also, repeatedly over the two days, pressed the argument that if
Facebook doesn’t do this - someone else will, implying China, where
companies very much outside of US scrutiny and control could move into this
space.

 

“Whether Libra launches, or if it doesn’t launch, there will be other
networks,” he said. "There are other networks.”

 

This, more so than any other argument from Mr Marcus, will resonate.
Appearing tough on Facebook is a vote-winning position for sure, but
stifling American innovation in a way which boosts China would certainly
take precedent.

 

"The reality is that whether Facebook is involved or not, change is here,”
said Senator McHenry.

 

"Digital currencies exist. Blockchain technology is real, and Facebook’s
entry into this world is just confirmation.”

 

Facebook has said it won’t launch without regulatory approval. A spokeswoman
at the firm would not say if the company would launch for users outside the
US if was able to get approval elsewhere - a move that would upset
regulators here immensely, you’d imagine.

 

Either way, the company's stated aim of launching as soon as next year seems
ambitious. And that’s a lot more painful than a $5bn fine.--BBC

 

 

 

 

 


 

 


 

INVESTORS DIARY 2019

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


Bindura Nickel Corporation

 

 

 


Padenga Holdings

 

 

 


Delta Corporation

 

 

 


Meikles Limited

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
constitute an offer to sell or the solicitation of an offer to buy or
subscribe for any securities. The information contained in this report has
been compiled from sources believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
other member of Bulls ‘n Bears nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
report shall be solely responsible for making their own independent
investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and sourced from third parties.

 


 

 


(c) 2019 Web: <http:// www.bulls.co.zw >  www.bulls.co.zw Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

 


 

 

 

 

 

 

Invest Wisely!

Bulls n Bears

 

Telephone:    <tel:%2B263%204%202927658> +263 4 2927658

Cellphone:      <tel:%2B263%2077%20344%201674> +263 719 441 674

Alt. Email:              <mailto:info at bulls.co.zw> info at bulls.co.zw 

Website:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw&sa=D&sntz=1&usg=AF
QjCNH8LYgdY55h-XKseuM8Kpr-JKdfhQ> www.bulls.co.zw

Blog:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1
&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bulls.co.zw/blog

Twitter:                 @bullsbears2010

LinkedIn:              Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:                  Bulls.Bears 

Whatsapp Group:   <https://chat.whatsapp.com/CF6wllAfScU9Wr6dXxoQnO> Click
Here to Join

 



 



---
This email has been checked for viruses by Avast antivirus software.
https://www.avast.com/antivirus
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20190722/eaf03d17/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 42384 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20190722/eaf03d17/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 34707 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20190722/eaf03d17/attachment-0006.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 34715 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20190722/eaf03d17/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 34677 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20190722/eaf03d17/attachment-0008.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 3256 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20190722/eaf03d17/attachment-0009.jpg>