Major International Business Headlines Brief::: 13 June 2019

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Major International Business Headlines Brief::: 13 June 2019

 


 

 


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

 


 

 


 

 

*  Nigeria's economy is expected to grow 2.7% this year, President Buhari says

*  Ethiopia plans to issue telco licences by year-end -sources

*  Vodacom challenges 2G network suspension in Congo court

*  Zambia's Konkola Copper Mines plans to restart smelter on June 22

*  Centum Investment profit up, to sell stake in drinks firms

*  Ghana, Ivory Coast halt 2020/21 cocoa bean sales as minimum price up for discussion

*  ANC row over South African central bank unnerves investors

*  Nigeria's Pelfaco signs oil production sharing deal with Congo Republic

*  South Africa's rand edges weaker in subdued start to trade

*  Fair Trade USA raises cocoa price minimums

*  Green: Topshop empire 'didn't come close to collapse'

*  Brexit: UK firms 'not even close to ready' for no deal

*  Ford recalls 1.2 million vehicles in US over suspension fault

*  Boohoo credits floral prints for sales surge

*  Huawei cancels laptop launch because of US trade blacklist

*  Uber takes its flying taxi ambitions to Australia

 


 <mailto:info at bulls.co.zw> 

 


 

Nigeria's economy is expected to grow 2.7% this year, President Buhari says

ABUJA (Reuters) - Nigeria’s economy is expected to grow 2.7% this year, President Muhammadu Buhari said on Wednesday, in his first public speech since his inauguration for a second term last month.

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Ethiopia plans to issue telco licences by year-end -sources

ADDIS ABABA (Reuters) - Ethiopia is aiming to award telco licences to multinational mobile companies by the end of the year, ending a state monopoly and opening up one of the world’s last major closed telecoms markets, three people with direct knowledge of the process said.

 

Ethiopia’s telecoms industry is considered the big prize in a push to liberalise the country’s economy launched last year by Prime Minister Abiy Ahmed because of its huge protected market serving a population of around 100 million.

 

Government officials have already looked at several potential options, including the sale of a minority stake in Ethio Telecom, granting of new licences to multiple telecoms operators or a combination of both.

 

Abiy is keen to deliver quickly on his reform pledges but preparing Ethio Telecom, the monopoly operator, for a partial sale is proving a lengthy process, said the sources, who asked not to be named. As a result, the authorities are opting to auction new licences first.

 

The plan, which has not yet been formally announced, would open the bidding process for two licences in September and they would be awarded in December.

 

The government will expect the winning companies to start operations next year, initially using Ethio Telecom’s infrastructure to run their networks, the sources said.

 

State Minister of Finance Eyob Tekalign Tolina told Reuters the government hoped to launch a bidding process in September, but he declined to give further details of the reform plan.

 

“By this time next year, we hope that many Ethiopians will be using different SIM cards,” he said. “We are operating on a very aggressive timeline.”

 

Vodafone, South African operator MTN, France’s Orange and Etisalat of the United Arab Emirates are likely to be among the leading contenders vying for entry into the Ethiopian market.

 

Senior executives from those companies attended a telecoms conference in Addis Ababa this week and met with government officials.

 

Ethiopia’s potential as an untapped market could outweigh concerns about any risks, including Ethiopians’ low income levels and the country’s over-valued birr currency.

 

“There will be a bidding war. It’s the last greenfield site. There’s an opportunity to be market dominant,” said one company executive.

 

A new telecoms regulator will issue the licences, but this institution has not yet been set up. A law to create the new watchdog - the Ethiopian Communications Regulatory Authority - is scheduled to be debated by parliament on Thursday.

 

TOO OPTIMISTIC?

Company executives who met with government officials this week were told to expect an announcement on the liberalisation plan, possibly next week.

 

New licences are the preferred option of telecoms executives, rather than a potential sale of part of Ethio Telecom.

 

But several executives expressed scepticism over the government’s ability to deliver new licences by the end of this year.

 

One company official said opening a bidding round in September was ambitious given the complexities of the process and the number of issues that still needed tackling.

 

“We need a credible, robust, unambiguous roadmap for the next two years,” said another executive. He said Ethiopia must clarify details of the sector’s future structure before company boards could consider a possible investment.

 

Even if the government opts for new licences over a partial sale of Ethio Telecom, information on the state-owned company’s existing infrastructure and balance sheet will be crucial for assessing the licences’ value.

 

Chinese companies Huawei and ZTE and Sweden’s Ericsson have been involved in developing infrastructure for Ethio Telecom over the past few years.

 

Executives said they were more hopeful than at any point in the past decade that the government was serious about reforming the sector.

 

“It feels real this time, for the first time,” one of them said.

 

State finance minister Eyob said the reforms were on track and that, having consulted advisers from regulators including the U.S. Federal Communications Commission, the authorities were ready to move forward.

 

“We’ve reviewed global experiences, the best and worst. We are a late comer in this so we can learn from what others did wrong and right,” he said.

 

 

 

Vodacom challenges 2G network suspension in Congo court

DAKAR (Reuters) - Vodacom Group’s local unit in the Democratic Republic of Congo has filed a lawsuit against the revocation of its 2G telecoms license, the country’s telecommunications minister said on Wednesday.

 

The ministry withdrew the license in April, saying in a written order that its renewal in 2015 for $16 million did not follow proper procedures. The ministry says the actual cost of renewing the license is $65 million.

 

Vodacom, which holds a 51% stake in Vodacom Congo, did not immediately respond to a request for comment.

 

A hearing on Vodacom’s challenge of the suspension took place on Monday before the Council of State, which is expected to render a judgment soon, Telecommunications Minister Emery Okundji told Reuters, without providing additional details.

 

Vodacom Congo also holds 3G and 4G licenses, which are not affected by the order. It is not clear how many of its 12 million customers have been affected by the April order.

 

Vodacom’s operations in Congo accounted for $473.4 million of the company’s $5.85 billion in revenues ending March 31, 2019.

 

 

 

Zambia's Konkola Copper Mines plans to restart smelter on June 22

LUSAKA (Reuters) - Zambia’s Konkola Copper Mines (KCM), owned by Vedanta Resources, plans to restart its Nchanga smelter on June 22, the company said on Wednesday.

 

KCM said in a statement that the Nchanga smelter had been idle pending availability of concentrates.

 

 

 

Centum Investment profit up, to sell stake in drinks firms

NAIROBI (Reuters) - Kenya’s Centum Investment expects to complete a sale of its stakes in two drinks firms in the next four months, chief executive officer James Mworia said on Wednesday, after the company reported a 41% rise in full-year pretax profit.

 

Centum, which invests in listed firms and private companies, said it had entered an agreement to sell its stakes in Almasi Beverages Limited and Nairobi Bottlers, with a total valuation of 19.5 billion shillings ($192.5 million), to Coca Cola Beverages Africa.

 

The transactions are subject to regulatory approval, it added.

 

“The proceeds from these transactions will be applied towards repaying our current U.S. dollar denominated bank term loans of 7.5 billion shillings, which will result in finance cost savings of 700 million shillings,” Centum said in a statement.

 

 

Centum also said it planned to invest an extra 10-15 billion shillings via its private equity arm in the next five years. The company said it would look to invest in sectors it was already familiar with.

 

“For us, it’s eight sectors: financial services, consumer, agriculture, education, healthcare, IT, power and automotive sector,” Fred Murimi, managing director at Centum Capital, told Reuters. “But we are also open at looking at other sectors as well.”

 

Centum said its pretax profit for the year to the end of March rose to 4.44 billion shillings from 3.15 billion the year before.

 

Its net asset value per share, a key measure of performance for investment firms, rose to 79.1 shillings from 73.2 shillings the previous year.

 

Investment income fell to 3.2 billion shillings from 3.5 billion the year before, due to the sale of one of its businesses, GenAfrica Asset Managers, in the previous financial year.

 

Centum, which also has shares in a vehicle assembly, catering company, publisher and commercial bank, said its total assets rose to 101.76 billion shillings from 96.29 billion shillings.

 

($1 = 101.0500 Kenyan shillings)

 

 

 

Ghana, Ivory Coast halt 2020/21 cocoa bean sales as minimum price up for discussion

ACCRA/ABIDJAN (Reuters) - Ghana and Ivory Coast have suspended forward sales of cocoa beans for the 2020/21 season as buyers and sellers are set to discuss a minimum price proposal, industry sources said.

 

The two West African nations account for nearly two thirds of global output, yet they exert limited influence over international cocoa prices, which have stayed low in recent years due to overproduction.

 

Representatives from the world’s top two cocoa producers are meeting in Ghana’s capital Accra to discuss farmers’ living standards. The governments are proposing a common floor price meant to address farmer incomes, which they complain are extremely low relative to the money made by big cocoa traders.

 

The two countries agreed to harmonize their sales system earlier this year in an effort to exert more influence on international prices. [nL5N2075ZH]

 

Ivory Coast’s Coffee and Cocoa Council (CCC) and Ghana’s Cocobod proposed a minimum price of $2,600 for the main crop on Tuesday, and called for sales contracts below this threshold to be compensated by a living income differential.

 

Some traders suggested the proposed price would be unacceptable to big buyers, whose market dominance gives them a fair amount of clout in expected negotiations.

 

 

 

 

ANC row over South African central bank unnerves investors

JOHANNESBURG (Reuters) - A row within South Africa’s African National Congress (ANC) about the role of the central bank has unnerved investors and exposed deep divisions in the governing party.

 

One ANC faction loyal to President Cyril Ramaphosa is opposing calls from a rival group for the central bank’s monetary policy to do more to boost employment and growth. [nL8N23D1G4]

 

The dispute threatens to undermine confidence in Africa’s most advanced economy, as the South African Reserve Bank (SARB) has a strong reputation for acting independently.

 

Here are responses to some of the questions raised by the row over the central bank’s role.

 

WHAT IS THE SARB’S CURRENT FOCUS?

The primary focus of the bank’s monetary policy is price stability, but it also seeks to ensure sustainable growth.

 

According to the constitution, “the primary object of the South African Reserve Bank is to protect the value of the currency in the interest of balanced and sustainable economic growth”.

 

The constitution adds the SARB “must perform its functions independently and without fear, favour or prejudice, but there must be regular consultation between the bank and the cabinet member responsible for national financial matters”.

 

To achieve its monetary policy goals, the SARB has used an inflation-targeting framework since 2000.

 

The current target band is 3% to 6%, and the bank uses interest rate adjustments to meet its inflation target.

 

In 2010, the then-finance minister, Pravin Gordhan, wrote to the central bank reiterating the SARB’s mandate but drawing attention to studies on the importance of inflation management in supporting sustainable growth and employment.

 

Bank officials say they routinely take into account labour market developments as part of their monetary policy discussions.

 

WHAT ARE THE PROPOSED CHANGES?

ANC Secretary General Ace Magashule said on June 4 that a three-day meeting of party leaders had “agreed to expand the mandate of the South African Reserve Bank beyond price stability to include growth and employment”.

 

He also said the party wanted the government to consider quantitative easing, a policy widely used by developed economies after the global financial crisis to stimulate growth by pumping cash back into the economy.

 

However, the ANC issued a statement on June 6, in the name of Ramaphosa, saying its policy on the role of the central bank had not changed. The central bank governor dismissed talk of quantitative easing as not appropriate for South Africa’s economic conditions. [nL8N23D52S] [nJ8N1XA01C]

 

ANC members say there is disagreement in the party over whether the bank’s mandate should be formally reworded to give job creation and growth more prominence.

 

Some party members believe the SARB has not done enough to help the economy more than two decades after the end of white minority rule.

 

The SARB has opposed previous attempts to alter its mandate and has said the debate is an unnecessary distraction as the challenges facing the economy cannot be solved by monetary policy alone.

 

WHAT DO OTHER CENTRAL BANKS DO?

Price stability is the primary focus of monetary policy in many of the world’s largest economies, but some central banks have lesser priorities such as contributing to their governments’ economic policies.

 

A smaller group of central banks, including the U.S. Federal Reserve, Reserve Bank of Australia and Reserve Bank of New Zealand, have “dual mandates” according to which they seek to maximise employment as well as keep inflation in check.

 

Among emerging markets other than South Africa, Turkey’s central bank has price stability as its primary goal, followed by growth and employment as lesser objectives. Russia’s central bank has price stability as its principal monetary policy objective but also tries to create conditions for “balanced and sustainable economic development”.

 

In the United States, some policy experts have said the Fed’s dual mandate is outdated and should be changed.

 

New Zealand’s central bank adopted its dual mandate as recently as 2018. Officials at the bank have explained the move by saying low inflation is a means to improve people’s wellbeing and that employment is a tangible measure of wellbeing.

 

WHY ARE INVESTORS WORRIED?

In South Africa, investors are worried by the row over the SARB’s mandate because it is being driven by bitter factional battles within the ANC rather than sober policy debate.

 

They are concerned that expanding the central bank’s mandate could increase arguments for riskier monetary policy.

 

The push to change the bank’s role comes from a left-wing camp within the ANC that wants Ramaphosa to change tack on a range of policies and is using the mandate issue as a battering ram, some ANC members say.

 

The economic implications for South Africa could be serious if the change is rammed through in a way that shakes the confidence of the investors who fund the country’s twin budget and current account deficits.

 

It could also impact the country’s sovereign credit ratings.

 

Only one global ratings agency, Moody’s, still gives South Africa an investment-grade rating, but that rating is hanging by a thread and if it falls the government’s borrowing costs would almost certainly rise.

 

Moody’s has said the central bank’s credibility is an important factor in its ratings decisions.

 

HOW COULD THE SARB’S MANDATE BE CHANGED?

Altering the SARB’s mandate could be a drawn-out process, as officials understand the process differently.

 

Some believe the constitution would have to be amended since the SARB’s current focus is enshrined in that document.

 

A two-thirds majority in the lower house of parliament is required to change the constitution.

 

The ANC has 230 out of the 400 seats in the lower house, or 57.5 percent of the seats, so it would have to rely on the support of other parties.

 

But other officials believe a letter from the finance minister, like the one written by Gordhan in 2010, would be sufficient to change the mandate.

 

Current Finance Minister Tito Mboweni is an opponent of changing the SARB’s mandate.

 

If the SARB thinks its independence is under threat, it could challenge in court any moves to change its mandate.

 

 

 

 

Nigeria's Pelfaco signs oil production sharing deal with Congo Republic

BRAZZAVILLE (Reuters) - Nigerian private oil and gas company Pelfaco signed a production sharing deal with Congo Republic’s state energy firm on a 32-million barrel oil field on Tuesday, Congo’s oil ministry said.

 

Pelfaco is run by Gesi Asamaowei, a little known businessman from Nigeria’s oil producing Niger Delta region who benefited from a government push to try to bring more of the energy industry in Africa’s top producer into indigenous hands.

 

The Congolese ministry said in a statement that the field in the south of the country would last for 25 years. It gave no further details.

 

Congo’s energy industry has staged an unexpected comeback over the past year, owing to major finds from Italy’s ENI and French oil major Total, lifting an economy hobbled by massive debts, civil unrest and graft.

 

 

 

 

South Africa's rand edges weaker in subdued start to trade

JOHANNESBURG (Reuters) - South Africa’s rand edged weaker on Wednesday in a slow start that saw subdued flows as market makers looked for clear breaches either side of key technical levels.

 

At 0650 GMT, the rand was 0.14% weaker at 14.6950 per dollar compared to a close of 14.6750 overnight in New York.

 

In the previous session the rand rallied as much as one percent through the 14.80 technical support level, spurred by improving demand for emerging currencies and a better-than-anticipated manufacturing production print.

 

But it flagged in the latter stages of offshore trade with investors eyeing the commercial spat between Washington and Beijing and seeking clear direction for the rand as political risk fears from the previous week continued to dissipate.

 

“Yesterday’s local data, which was for a period after the (electricity) load shedding, provided a glimmer of hope that the local economy has some potential for recovery, although it still lags emerging-market peers,” said analysts at Nedbank in a note.

 

Manufacturing output in April grew by a consensus-beating 4.6% year-on-year, according to Statistics South Africa, as industries blighted by the nationwide power outages of the first quarter bounced back sharply.

 

The statistics agency publishes April retail sales at 1100 GMT in the only scheduled local data release for the session, while inflation numbers from the United States will also be on investors’ radar.

 

Bonds opened firmer, with the yield on the benchmark paper due in 2026 down 2 basis points to 8.31%.

 

 

 

Fair Trade USA raises cocoa price minimums

NEW YORK (Reuters) - Fair Trade USA will increase the floor price and fixed premium it requires companies to pay cocoa farmers under its certification system, the organization said on Tuesday.

 

The increase is designed to improve livelihoods in a sector that has long grappled with farmer poverty, child labor and deforestation

 

The nonprofit will increase its minimum price for conventional cocoa to $2,400 per tonne from $2,000. For organic cocoa, the price will be $300 over this minimum or the market price, whichever is higher at the time. The premium, which is used to fund community projects, will increase to $240 per tonne from $200.

 

The new pricing structure will take effect on Oct. 1, 2019.

 

The 20% increase in prices puts Fair Trade USA in line with the minimums set by Europe-based Fairtrade International in December, with these newly announced minimums impacting U.S.-based brands and manufacturers. [nL8N1Y836S]

 

In 2018, over 22,000 tonnes of cocoa beans were sold by Fair Trade certified cocoa farmers, according to the press release. Nearly 4.8 million tonnes of cocoa were produced worldwide in 2018/19, data from the International Cocoa Organization shows.

 

Representatives from Ivory Coast and Ghana, the world’s top cocoa producers, are meeting in the Ghanaian capital of Accra on Tuesday and Wednesday to discuss farmer incomes. The two countries are working to better harmonize their pricing systems.

 

For the 2018/19 main crop, Ivory Coast set its guaranteed farmgate price at 750 CFA per kilogram (about $1.29 per kg, or $1,290 per tonne) while Ghana set its guaranteed price at 7.6 cedis (about $1.41 per kg, or $1,410 per tonne).

 

On Tuesday, New York futures prices settled at $2,539, an 11-month high for the contract, but prices have fallen to as low as $1,901 this year.

 

 

 

Green: Topshop empire 'didn't come close to collapse'

Sir Philip Green has thanked landlords and suppliers who backed the deal that saved his retail empire.

 

In an interview with the BBC, he batted away the suggestion the Topshop group had been on the point of going bust in typically combative style.

 

"It didn't come close to collapse - we won the vote. It was a legitimate vote that was won"

 

He did however acknowledge that the retail landscape had changed and that he had been slow to react.

 

"The market place has changed forever - people want a different kind of service. Should we have seen that three or four years ago - maybe. But now we need to get on with the job"

 

Green secures rescue for Topshop empire

Landlord threatens Green's Topshop rescue

What's gone wrong at Green's Topshop empire?

Arcadia, whose brands also include Topman, Dorothy Perkins and Wallis, is hardly the first high street operator to suffer in recent years, but Sir Philip Green's one time status as "King of the High Street", a flamboyant lifestyle along with a series of allegations of racial and sexual harassment have singled him out for special attention.

 

But Sir Philip said that it was testament to the amount his suppliers trusted him that they continued to deliver stock to the stores when the company looked on the brink of administration.

 

Why then, does the British public not feel the same trust?

 

He said the media were to blame.

 

"Because you lot make them all ****ing jealous, that's why - it's pretty basic. They don't like people who can write cheques." Sir Philip personally paid £363m into the pension scheme of BHS after the company he sold for £1 collapsed.

 

Given the bruising both his business and he personally have suffered in recent years, I asked him whether there was a moment when he considered throwing in the towel?

 

"People who know me know that's not my style - why would I want to do that."

 

Sir Philip's empire is diminished. Fifty out of 566 stores are to close and there may be more - but it is still intact. A huge relief for his thousands of workers.

 

But some wonder whether Sir Philip, who still calls the shots but rarely visits the UK and comes from a very different retailing era, is the right person to take this business into the future.

 

He, of course, disagrees.--BBC

 

 

 

Brexit: UK firms 'not even close to ready' for no deal

Many UK businesses "are not even close to being ready for a no-deal" Brexit, figures seen by Newsnight suggest.

 

In February, HMRC launched the Transitional Simplified Procedures scheme, aimed at easing imports in the event of the UK leaving the customs union and single market abruptly.

 

Less than 10% of the firms estimated to require the status had applied for it as of 26 May, Newsnight has found.

 

HMRC said it had plans to ensure "as many traders as possible are ready".

 

The Transitional Simplified Procedures (TSP) would allow UK firms to import goods from mainland Europe without filling out new customs declarations at the border. UK businesses would also be allowed to postpone the payment of import duties for one year.

 

But figures show that only 17,800 firms had applied for the TSP as of 26 May. That's less than 10% of the total of 240,000 firms estimated to require the status by 31 October, when the UK's latest Article 50 extension is due to expire.

 

"If it really is this low we're far, far away from being day one no-deal Brexit ready - it's a very low number," said Mike Spicer from the British Chambers of Commerce.

 

"The TSP data is terrible," said Matt Griffith of the Bristol Chamber of Commerce.

 

"The top level lesson is that most small firms are not even close to being ready for a No Deal scenario."

 

A Cabinet note leaked to the Financial Times on Wednesday reveals ministers have been warned that it would take "at least four to five months" to improve trader readiness for new border checks.

 

It also suggests that officials are considering "financial incentives to encourage exporters and importers to register for new schemes".

 

Meanwhile the leading Conservative leadership candidate, Boris Johnson, has promised supporters the UK will leave the EU with or without a deal on 31 October, should he become prime minister.

 

How to get TSP status

Before firms can register for TSP they have to apply for an 'Economic Operator and Registration Identification' (EORI) number from HMRC.

 

UK businesses that have only ever traded inside the EU will not have an EORI number. But in the event of no deal, an EORI number will be a basic legal requirement for companies to be able to import and export.

 

So far 69,000 firms had signed up for EORI status by 26 May - less than a third of the 240,000 EU-trading UK firms estimated to need one, the figures seen by Newsnight show.

 

In February, then financial secretary to the Treasury Mel Stride, urged businesses against leaving things "until the last minute".

 

In September 2018, December 2018 and January 2019, HMRC wrote directly to 145,000 VAT-registered businesses that only trade with the EU advising them to apply for an EORI number.

 

But there are an additional 95,000 non-VAT registered companies that HMRC said also needed to take action, bringing the total to 240,000.

 

HMRC says that it only takes firms 10 minutes to register for an EORI number online and claims it has the capacity to sign up 11,000 businesses per day.

 

But the British Chambers of Commerce and the Federation of Small Businesses have said that HMRC should automatically issue EORI numbers to companies that need them, rather than waiting for them to apply.

 

An HMRC spokesperson said: "HMRC has well-developed plans in place to ensure the UK will have functioning tax and customs processes for UK-EU trade in the event of no deal.

 

"Many businesses have already registered with HMRC as international traders - accounting for around two thirds of the trade carried out by UK VAT registered businesses that only trade with the EU.

 

"HMRC's plans include actions and easements to ensure that as many traders as possible are ready on day one to keep trading."--BBC

 

 

 

 

Ford recalls 1.2 million vehicles in US over suspension fault

Ford is recalling 1.2 million sport utility vehicles in the US over suspension issues that the car giant said could affect steering.

 

The recall, which is expected to cost $180m (£140m), affects Ford Explorers made in the US firm's Chicago plant between 2010 and 2017.

 

Ford said one customer had reported hitting a kerb when part of the the rear suspension fractured.

 

The company said it was not aware of any injuries caused by the problem.

 

Ford said vehicles that were exposed to "frequent full rear suspension articulation" might "experience a fractured rear suspension toe link".

 

"A fracture of a rear toe link significantly diminishes steering control, increasing the risk of a crash," it added and when one customer's toe link broke they reported hitting the kerb.

 

In addition to the 1.2 million vehicles in the US, about 28,000 vehicles in Canada were affected and one in Mexico.

 

Ford dealers will remove and replace left and right and rear suspension toe links and align the rear suspension.

 

Separately Ford said it was recalling about 123,000 F-150 vehicles because of a transmission calibration issue. However, it said it was not aware of any reports of accident or injury related to the issue.

 

In addition, in Canada it has recalled 12,000 2010-17 Ford Taurus, 2009-17 Ford Flex, 2009-15 Lincoln MKS and 2010-17 Lincoln MKT vehicles, because of a a rear suspension toe link fracture.

 

The company said it was aware of one report of a "crash with minor injuries related to this condition".

 

In 2014 Ford recalled 1.1 million Explorers in North America because they could suffer a loss of power steering.--BBC

 

 

 

 

Boohoo credits floral prints for sales surge

Surging demand for floral prints and soft tailored dresses have helped Boohoo post a huge jump in revenue for three months to the end of May.

 

The fast fashion retailer, which also owns PrettyLittleThing and Nasty Gal, said strong block colours and ankle boots had also sold well.

 

Group sales jumped 39% to £254.3m, although Boohoo's lofty profit margins dipped.

 

It came as Zara-owner Inditex posted record sales of €5.9bn for the quarter.

 

The growth contrasts with tough times seen at many other retailers - particularly those focused on the UK High Street.

 

Just this week shares in Ted Baker dived 24% after it posted a profit warning.

 

Meanwhile, the future of Philip Green's Arcadia, which owns Topshop and Dorothy Perkins, is hanging in the balance as it tries to secure a rescue deal to avoid going into administration.

 

"Boohoo continues to defy the broader gloom on the High Street thanks to its appeal among younger shoppers with the tight marketing focus around celebs and social media paying off.

 

"There are doubts though about whether it can maintain margins as well as this rapid sales growth, but for now it's the one of the brightest stars in an otherwise pretty dark sky," said analyst Neil Wilson from Markets.com.

 

Founded in Manchester in 2006, Boohoo has become a hit with millennial shoppers by selling cut price, own-brand clothing that mirrors the latest celebrity trends.

 

It does all its trade online, avoiding the challenges faced by bricks-and-mortar retailers such as high shop rents and business rates.

 

However, it has faced questions about its production processes and its approach to workers' rights.

 

On Wednesday shares in the firm opened lower amid concerns about its profit margins, but later rebounded. The company's shares are up more than 40% this year.

 

It also said it was on course to post revenue growth of 25-30% for the full year.

 

It came as Spain's Inditex, which as well as Zara also owns such brands as Bershka and Pull & Bear, reported a 10% jump in profits for the first quarter as online sales surged.

 

The firm, which operates in 90 countries, said sales in the first six weeks of the second quarter were also up, as shoppers snapped up items like jewel-toned blazers and long-printed dresses from Zara's spring collections.--BBC

 

 

 

 

Huawei cancels laptop launch because of US trade blacklist

Huawei has ditched a product launch for the first time since the US placed it on a trade blacklist.

 

It was reported that the Chinese tech firm had intended to unveil a new laptop as early as this week.

 

However, its consumer device chief Richard Yu told CNBC that it had become "unable to supply the PC".

 

"[It's] unfortunate," he added via a WeChat message to the business news network. He added that the product itself might have to be scrapped.

 

"[It] depends on how long the Entity List will be there," he wrote.

 

This refers to a list of foreign parties that the US Department of Commerce has judged to pose a potential national security or foreign policy threat.

 

Specifically, Huawei is accused of having committed bank fraud to evade Iran sanctions, and obstruction of justice, among other violations.

 

As a result, other companies with business activities in the US have been forbidden to sell or transfer technologies to the Shenzhen-based firm unless they have a special licence.

 

Huawei denies any wrongdoing, and has said that claims its poses a security threat are "unsubstantiated".

 

Self-drive cars

Huawei launched new smartphones shortly after the decision was taken last month.

 

But its inability to buy computer chips and other components from Intel, Qualcomm and Broadcom - among others - appears to have hindered its ability to produce the new laptop in the volumes required, despite the fact it had built up stockpiles of parts in case such a crisis occurred.

 

In addition, there has been speculation that Huawei would be unable to license copies of the Windows 10 operating system from Microsoft.

 

Washington's intervention has resulted in some non-US companies breaking links too. The chip designer ARM, for example, which is UK-based and owned by Japan's Softbank, told staff to suspend business with Huawei because some of its R&D work is carried out in the States.

 

Despite this, the Chinese firm continues to pursue partnerships with overseas companies.

 

The Financial Times has reported that Huawei has begun working with Audi and Toyota among others, to develop self-driving cars.--BBC

 

 

 

Uber takes its flying taxi ambitions to Australia

Uber has said Australia will become the first international market for its flying taxi service Uber Air.

 

The firm has selected Melbourne as the third pilot city for its air taxi programme, joining Dallas and Los Angeles.

 

Test flights are due to start from 2020, with the aim of launching commercial operations from 2023.

 

Several companies are developing flying taxis as a future mode of transportation.

 

Uber said increased air mobility would help ease traffic congestion in cities.

 

"As major cities grow, the heavy reliance on private car ownership will not be sustainable," said Eric Allison, global head of the firm's aviation division Uber Elevate.

 

"Uber Air holds enormous potential to help reduce road congestion."

 

He said the 19 kilometre journey from Melbourne's central business district to the airport would take some 10 minutes with Uber Air, down from up to an hour by car.

 

Uber is working with Nasa and the US Army on its flying taxis and has two aircraft manufacturers - Embraer and Pipistrel Aircraft - also on board. Last year, the company said it would open a laboratory in Paris to develop flying taxis.

 

It comes at a testing time for Uber following a disappointing stock market debut last month.

 

Uber's first earnings report showed the US firm posted a $1bn (£790m) loss, as it faced strong competition in its ride-hailing business, and incurred extra costs related to its Uber Eats delivery service.

 

Back to the future

Uber is not the only company experimenting with flying taxis, reminiscent of the mode of transport in the American cartoon "The Jetsons".

 

Tech firms are competing to develop the first viable passenger-carrying sky taxis, while Airbus and a range of start-ups have also been testing self-flying taxis.

 

Dubai conducted its first test of a drone taxi service in 2017.

 

Separately, a firm funded by Google founder Larry Page has unveiled an electric, self-flying air taxi that can travel at up to 180 km/h (110mph).--BBC

 

 

 

 

 


 

 


 

INVESTORS DIARY 2019

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


RTG

AGM

Jacaranda Rooms 2 and 3, Rainbow Towers

12 June 2019, 12pm

 


Zimplow

AGM

Head Office, 36 Birmingham Road, Southerton

13 June 2019, 10am

 


TSL

AGM

28 Simon Mazorodze Road, Southerton

19 June 2019, 12pm

 


Zimpapers

AGM

Boardroom, 6th Floor, Herald House

20 June 2019, 12pm

 


Masimba Holdings

AGM

Head Office, 44 Tilbury Road, Willowvale

21 June 2019, 12:30pm

 


RioZim

AGM

1 Kenilworth Road, Highlands

24 June 2019, 10:30am

 


Proplastics

AGM

Palm Court, Meikles

25 June  2019, 10am

 


Fidelity Life

AGM

Great Indaba Room, Crowne Plaza Monomotapa

26 June 2019, 10am

 


GB Holdings

AGM

Cernol Chemicals Boardroom,  111 Dagenham Road, Willowvale

26 June 2019, 11:30am

 


Dawn Properties

AGM

Ophir Room, Monomotapa Hotel

27 June 2019, 10am

 


Unifreight

AGM

Royal Harare Golf Club

27 June 2019, 10am

 


African Sun

AGM

Ophir Room, Monomotapa Hotel

27 June 2019, 12pm

 


FMP

AGM

Palm Court, Meikles

27 June 2019, 12pm

 


MedTech

AGM

Boardroom, Stand 619, corner Shumba/Hacha Roads, Ruwa

27 June 2019, 2pm

 


FML

AGM

Palm Court, Meikles)

27 June 2019, 2:30pm

 


FBC

AGM

Royal Harare Golf Club

27 June 2019, 3pm

 


ZHL

AGM

Aquarium Room, Crowne Plaza Monomotapa Hotel

30 June 2019, 10am

 


 

 

 

 

 


 

 

 

 


 

 

 

 


 <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.

 


 

 


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