Major International Business Headlines Brief::: 20 June 2019

Thu Jun 20 02:31:59 CAT 2019

 <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::: 20 June 2019

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

*  South Africa's Ramaphosa to announce more support for Eskom

*  Ex-CEO Peter Moyo to take Old Mutual to court - statement

*  Old Mutual fires suspended CEO Moyo

*  Kenyan parliament committee proposes nationalisation of Kenya Airways

*  Rand rallies as Ramaphosa set to give more support for Eskom

*  Nigeria has no plans to go to eurobond market this year

*  MultiChoice reports full-year loss

*  Morocco cenbank holds benchmark interest rate at 2.25%

*  South Africa's rand little changed in calm before Fed meeting

*  Cargo handled by Kenya's Mombasa port up 6% in eleven months to May

*  Philip Hammond to warn war chest may disappear

*  Boohoo's recycled clothes 'will not solve fast fashion waste'

*  All aboard Britain’s first hydrogen train

*  US-China trade war: Officials to resume talks before G20

*  US Fed opens door to interest rate cut after Trump criticism

*  HK billionaire to pay $14m in tuition fees for Chinese students

*  Facebook urged to pause Libra crypto-currency project

 <mailto:info at bulls.co.zw> 

South Africa's Ramaphosa to announce more support for Eskom

JOHANNESBURG (Reuters) - South Africa’s President Cyril Ramaphosa will
announce more measures to support cash-strapped power utility Eskom, his
office said on Tuesday, without providing details.

“It is expected that the President will announce further measures to support
Eskom’s efforts at recovery and financial and operational sustainability,”
the presidency said in a statement, following a meeting between Ramaphosa
and Eskom’s board.

The presidency did not say when the measures would be announced, but
Ramaphosa is scheduled to make his State of the Nation address on Thursday.

 <mailto:info at bulls.co.zw> 

Ex-CEO Peter Moyo to take Old Mutual to court - statement

JOHANNESBURG (Reuters) - Former Old Mutual CEO Peter Moyo is to challenge
the employer’s conduct in court after the insurer fired him citing a
conflict of interest.

A statement by Moyo’s lawyer said Old Mutual had suffered no financial or
other prejudice as a result of any action from Moyo.

Old Mutual fires suspended CEO Moyo

JOHANNESBURG (Reuters) - South Africa’s second-biggest insurer Old Mutual
said it had fired suspended CEO Peter Moyo, citing a conflict of interest
with an investment firm he founded.

In a Tuesday statement, the insurer described problems engaging with Moyo
following his suspension in May, which came less than a year after he took
the over as CEO of the newly listed insurer.

“Mr Moyo’s actions since the suspension contravened his fiduciary duties to
Old Mutual, his contract of employment and his notice of suspension,” the
statement said.

“Following unsuccessful attempts to engage on the terms of separation, the
Board has now resolved to give notice of termination of employment.”

Moyo did not reply to a number of messages seeking comment. He told Reuters
following his suspension there had been no wrongdoing on his part.

Old Mutual said in the statement the conflict of interest related to
ordinary dividend payments made by NMT Capital, the investment firm Moyo
founded and in which an Old Mutual subsidiary is the only institutional
investor.

The insurer said that while Moyo’s interest in NMT Capital was declared and
protocols were put in place to manage it, the two payments made by the firm
in 2018, totalling 115 million rand ($7.78 million), were a breach of its
rights as a preference shareholder.

This was because arrear preference dividends were unpaid at the time and
preference share capital was redeemable at the time of the second payment,
it continued, adding it had not received an acceptable explanation for this.

The full-year financial statements for Old Mutual Life Assurance Company,
the subsidiary that invested in NMT Capital, said the total impairment on
preference share capital held in NMT Capital and NMT Group amounted to 97
million rand in December 2018.

Old Mutual said Moyo chaired the board meeting of NMT Capital where the
second ordinary dividend of 105 million rand was declared, and that the
benefit to Moyo and his personal investment company of the payments was 30.6
million rand.

NMT Capital declined to comment.

The insurer’s Johannesburg-listed shares were up 1.34% at 0732 GMT. Its
London-listed shares also rose following the announcement.

($1 = 14.7812 rand)

Kenyan parliament committee proposes nationalisation of Kenya Airways

NAIROBI (Reuters) - A Kenyan parliamentary committee on Tuesday recommended
the nationalisation of loss-making Kenya Airways as part of efforts to turn
the airline around, a draft report said.

The committee also proposed the setting up of an aviation holding company
with four subsidiaries, one of them being Kenya Airways, and another running
Jomo Kenyatta International Airport.

Rand rallies as Ramaphosa set to give more support for Eskom

JOHANNESBURG (Reuters) - South Africa’s rand rallied in late trade on
Tuesday after the government signalled it will give additional support to
power firm Eskom and as emerging currencies were lifted by expectations the
Federal Reserve could signal U.S. rate cuts.

At 1400 GMT the rand was 1.76% percent firmer at 14.5475 per dollar, after
early in the day trading at around the 14.80 mark. It jumped late in the
session as demand for emerging market assets was buoyed by the potential for
policy easing by the U.S. and European Union central banks.

The U.S. Federal Reserve concludes a two-day meeting on Wednesday and is
expected to lay the groundwork for a rate cut later this year.

On Tuesday the European Central Bank chief Mario Draghi said there would be
more stimulus if inflation failed to pick up.[nECBSINTRA]

“Further dovish commentary from ECB Chair Draghi has pushed the rand to the
top of the EM currency board this morning as the carry trade environment
begins to lighten,” said currency analyst at Monex Europe Simon Harvey.

The rand tumbled to 15.1750 on June 7, its worst level in 2019, following a
3.2% contraction to economic growth in the first quarter and a row between
ruling African National Congress and government officials over the central
bank’s mandate.[nL8N23D1G4]

“Although investments in South Africa continue to carry substantial
idiosyncratic risk, for now the climate looks to be much more favourable as
the woes of Eskom and divisions in the ANC party become more muted,” Harvey
added.

News that President Cyril Ramaphosa will announce more measures to support
cash-strapped power utility Eskom after meeting with the company’s board
also aided the currency, traders said.[nJ8N22M021]

“The comments from Ramaphosa about additional support for Eskom have
certainly boosted the rand. You saw stops triggered at 14.60 and a move
lower in illiquid conditions against a weakening dollar,” said Oliver Alwar,
a senior dealer at Standard Bank.

In February government pledged a 23 billion rand ($1.58 billion) a year
bailout for Eskom over the next three years, but the firm has said it needs
more cash to keep the lights on after nationwide power cuts earlier in the
year.[nL5N22R2N0]

Bonds also jumped, with the yield on the benchmark 10-year government bond
falling 11 basis point to 8.27%, their lowest level since April 2018.

On the stock market, the Johannesburg Stock Exchange’s benchmark Top-40
Index advanced 1% to 52,692 points while the All-Share Index rose 0.9% to
58,723 points, as retailers and banks were boosted by the firmer currency.

Shoprite, Nedbank and Discovery led the blue-chip pack, all gaining more
than 3% on the day, while the losers were led by commodity traders with Gold
Fields plunging more than 6% and AngloGold Ashanti sliding 4%.

Nigeria has no plans to go to eurobond market this year

LAGOS (Reuters) - Nigeria has no plans to return to the eurobond market this
year, after a sixth outing in November raised $2.86 billion, the head of the
debt office said on Tuesday.

Nigeria approved a three-year plan in 2016 to borrow more from abroad. It
wants 40 percent of its loans to come from offshore sources to lower
borrowing costs and help to fund record-high budgets.

Asked whether the government would consider a U.S. dollar- denominated
eurobond, Patience Oniha said, “For 2019, given the process, I would say
no.”

Foreign borrowing for the 2019 budget is set at 802 billion naira ($2.7
billion), Oniha said at an Islamic finance conference in Lagos.

Nigeria, which emerged from recession last year, has borrowed abroad and at
home over the past three years to help finance its budgets and to fund
infrastructure projects, but debt servicing cost is also rising.

The government has said it wanted to tap concessionary long-term loans to
finance its 2019 budget in addition to borrowing at home.

It sold $3 billion in eurobonds in 2017, part of which it used to fund its
budget that year. It then followed with a $2.5 billion eurobond sale last
year to refinance local currency bonds at lower cost.

MultiChoice reports full-year loss

JOHANNESBURG (Reuters) - Africa’s biggest pay-TV group MultiChoice on
Tuesday reported a headline loss in the year to end-March after foreign
exchange losses and a charge for a stake disposal.

MultiChoice, spun off by South African e-commerce group Naspers, reported a
headline loss per share of 353 cents ($0.2427), compared with headline
earnings per share of 410 cents the previous year.

Headline earnings is the main profit measure in South Africa that strips out
certain one-off items.

($1 = 14.5455 rand)

Morocco cenbank holds benchmark interest rate at 2.25%

RABAT (Reuters) - Morocco’s central bank kept its benchmark interest rate
unchanged at 2.25 percent on Tuesday, saying current borrowing costs were
consistent with medium-term inflation and growth outlook.

Inflation, mainly affected by food prices, is expected to ease to 0.6% in
2019 from 1.9% last year, before picking up to 1.2 % in 2020 on the back of
improved domestic demand, the bank said in a statement following its
quarterly board meeting.

Economic growth will slow to 2.8% in 2019 from 3% in 2018, it said, amid a
drop in agricultural activity. Morocco expects to produce 6.1 million tonnes
of cereals this year, down 40.7 percent from last year due to a lack of
rainfall.

South Africa's rand little changed in calm before Fed meeting

JOHANNESBURG (Reuters) - South Africa’s rand was little changed early on
Tuesday, with investors looking ahead to a local inflation report and a
United States decision on interest rates.

At 0645 GMT the rand was up 0.14% at 14.7900 per dollar from its close of
14.8075 in the previous session, taking most of its direction from Asian
currencies.

The U.S. Federal Reserve concludes a two-day meeting concludes on Thursday
and is expected to lay the groundwork for a rate cut later this year. That
would probably increase demand for emerging-market currencies as investors
look for higher- yielding assets.

With no economic data due on Tuesday and the 14.60 technical resistance
level a long way off, the rand is set to trade in a narrow range before
Wednesday’s release of local consumer price figures.

“If, as we suspect, inflation prints below 4.5% for a seventh consecutive
month, it will solidify our view for a July cut, with the SARB now
signalling its willingness to become more accommodative in response to
inflation outcomes,” Rand Merchant Bank’s Nema Ramkhelawan-Bhana said in a
note.

Bonds were also steady, with the yield on the benchmark 10-year government
bond down 1 basis point to 8.37%.

In stocks, Old Mutual said on Friday it had terminated the employment of
suspended Chief Executive Peter Moyo, following a conflict of interest
related to an investment firm he founded. [nL8N23P145]

Cargo handled by Kenya's Mombasa port up 6% in eleven months to May

MOMBASA (Reuters) - Kenya’s main port of Mombasa handled 6.3% more cargo in
the last eleven months thanks to higher efficiency, a surge in imports and
greater capacity after the port was expanded, the facility’s management said
on Monday.

The rise in cargoes came despite uncertainty after 75 tax agency staff
including customs workers were arrested last month over allegations of
fraudulent clearance of merchandise among other charges.

Mombasa, a gateway to east and central Africa, processes imports and exports
for Kenya and several other countries including Uganda, Rwanda, Democratic
Republic of Congo, South Sudan and Burundi.

Cargo handled by the port was up 6.3% to 29.8 million tonnes in the eleven
months ending May this year compared to the previous period, data released
by the port’s management showed.

“The positive performance was mainly driven by increased handling (of) cargo
for Uganda, D.R.C and South Sudan,” Daniel Manduku, the port’s managing
director, said in a report.

Container traffic increased by 13.1% to 1.27 million Twenty feet equivalent
units (TEUS) over the eleven-month period while cargo destined for other
countries was up 10%.

Mombasa port underwent expansion works in 2012 that included construction of
a new container terminal and dredging to enable bigger vessels access to the
port. The first phase of the expansion project partially-financed by Japan
was inaugurated in 2016.

Kenya is also building a second port in Lamu, north of Mombasa, with a
capacity of 23 million tonnes per year.

Philip Hammond to warn war chest may disappear

Philip Hammond is set to warn that a no-deal Brexit would harm the British
economy, devour a £26.6bn Brexit war chest, and risk the break-up of the UK.

The chancellor is expected to say that Conservative candidates who are vying
to be the next prime minister that they must come up with a Brexit plan "B".

If they do not, he will hint that a second referendum could be needed to
break the Parliamentary deadlock.

He will also pour cold water on tax and spending pledges by the candidates.

Mr Hammond is set to say in a speech at the annual Mansion House dinner in
the City of London on Thursday that a no-deal Brexit would soak up £26.6bn
that has been set aside that could otherwise be spent by an incoming prime
minister.

In a BBC debate on Tuesday, leadership candidates promised tax cuts and
increased spending on public services.

However, a no-deal Brexit would mean that was not possible, and would also
leave the UK economy "permanently smaller", Mr Hammond will say.

In March, the chancellor pledged to spend the war chest to boost the
economy, if MPs voted to leave the European Union with a deal.

Conservative candidates including Boris Johnson have pledged to leave the EU
by 31 October, even if that means quitting without a deal.

But a no-deal Brexit would "risk the Union", Mr Hammond is expected to say.

"I cannot imagine a Conservative and Unionist-led government, actively
pursuing a no-deal Brexit; willing to risk the Union and our economic
prosperity," he will say.

Scottish Tory leader Ruth Davidson told party members on Tuesday to "take a
long, hard look at themselves" after a YouGov survey suggested 63% would
back Brexit even if it meant Scotland leaving the UK.

In April, Scotland's First Minister Nicola Sturgeon said she would push for
a second referendum on Scottish independence by 2021 if the country, which
voted Remain, is taken out of the EU.

'Tell the truth'

Mr Hammond is also expected to say that certain "truths" will not change no
matter who is leader.

Unless there is a general election, Parliament will not support a no-deal,
and is unlikely to support the deal that has already been negotiated, he
will say.

So candidates need to spell out their "Plan B", he is expected to argue.

The EU will not renegotiate Theresa May's Brexit deal, and the problem of
the Irish border "will not go away", Mr Hammond will add, saying that Tory
leadership candidates "need to be honest with the public".

The chancellor will also caution the men vying to lead his party that they
have to "recognise and address the difficult trade-offs inherent in
delivering Brexit".

Brexit: Where do Conservative leadership candidates stand?

Quick Q&A: Tory candidates' Brexit plans

Candidates will also need to say how they will bring about Brexit without
harming the economy or breaking up the UK, he will say.

The leadership contenders "need realistic strategies for taking the UK
economy out of the holding pattern in which it has been stuck for the last
nine months and landing it safely on the runway marked 'prosperity Brexit'".

"If the new prime minister cannot end the deadlock in Parliament, then he
will have to explore other democratic mechanisms to break the impasse," Mr
Hammond will add, hinting at a second referendum, or even a general
election.

However, Mr Hammond's expected speech was "yet another example of how far
the Tories are cut off from the real world," said Labour's shadow chancellor
John McDonnell.

"Hammond's austerity policies have resulted in a near decade of suffering
for hungry children, a surge in food bank use, rising in-work poverty,
squeezed incomes for families and unprecedented cutbacks to public
services," he said.--BBC

Boohoo's recycled clothes 'will not solve fast fashion waste'

"If someone really cared about buying ethically sourced, green clothes then
they wouldn't shop at Boohoo," shopper Camilla tells the BBC on Oxford
Street.

She is commenting on the fast fashion retailer's first recycled clothing
range - made with reclaimed plastics - which was unveiled this week.

The 22-year-old's view is not surprising, given the millions of low cost,
fast fashion clothes that Boohoo sells every year.

But while it's easy to dismiss the move as a marketing gimmick, Boohoo
claims it is planning other green initiatives, and others have welcomed the
new collection as a "starting point".

"It is good for people to try recycled clothes and see that they are just
like normal clothes," says shopper Esme, 16.

Could ditching 'fast fashion' make us happier?

Ideas to make fashion more eco-friendly turned down

"I'm glad they are engaging because they are unlikely to change their supply
chain overnight," adds Dr Patsy Perry, senior lecturer in fashion marketing
at the University of Manchester.

Boohoo says its 34-piece range is made with recycled polyester that had been
destined for landfills and uses no environmentally unfriendly dyes or
chemicals.

The dresses, bodysuits, flares and crop tops have also been made entirely in
the UK to cut air pollution, it says. 

However, some have noted that the range was unveiled on the same day the
Environmental Audit Committee (EAC) issued a critical report on the fast
fashion industry that mentioned Boohoo.

The MPs warned companies were creating huge amounts of waste by selling
cheap clothes designed only to be worn a few times.

They also said the synthetic fabrics used to make such garments shed
micro-fibres when washed, polluting waterways.

"The problem of clothing waste driven by rising volumes and lower prices in
recent years are unlikely to be addressed by initiatives [like Boohoo's
recycled range]," says Professor Stella Claxton of Nottingham Trent
University, who gave evidence to the EAC.

"We know that too many garments that are disposed of through retailer
take-back schemes or in charity collection bins will eventually find their
way into landfill."

She also questions just how green Boohoo's recycled fabric will be, noting
that even recycled polyester clothing can take hundreds of years to
decompose.

"The garments are likely to shed microfibres into waterways when they're
machine washed, just like the non recycled versions," she adds.

Financially viable?

In its report, the EAC made 18 proposals, including a 1p charge per garment
on producers to fund better recycling of clothes, and a ban on incinerating
or landfilling unsold stock that can be recycled instead.

But the government has said already it will adopt none of the policies.

In that light, Dr Perry thinks Boohoo - and others retailers that have
launched green clothing ranges - should be encouraged for doing so
voluntarily.

"The real test will be if Boohoo can make this financially viable," she
says.

"Because if they don't carry on then it will seem like a token gesture and
them getting on the bandwagon."--BBC

All aboard Britain’s first hydrogen train

Hydrogen-powered trains are arguably the greenest trains out there.

"Mini power stations on wheels", is how Alex Burrows from the University of
Birmingham describes them.

He is the project director for the 'Hydroflex' train which was showcased at
an event in the West Midlands.

Unlike diesel trains, hydrogen-powered trains do not emit harmful gases,
instead using hydrogen and oxygen to produce electricity, water and heat.

It is "a fully green fuel", says Helen Simpson from rail rolling stock
company Porterbrook, which created the Hydroflex in partnership with
Birmingham University's centre for Railway Research.

But hydrogen trains are still incredibly rare.

The only two in active service in the entire world are in Germany.

Britain is looking to become one of the next countries to start running
them.

And the 'Hydroflex' is a tester train where the technology is being
trialled.

The hydrogen tanks, the fuel cell and the batteries sit inside a carriage
where passengers would normally sit.

In future commercial models that equipment will have to be stored away above
and beneath the train.

The Hydroflex tester train is the first hydrogen-powered train in the UK. It
will start running tests on the UK mainline from March.

So why is this all happening now?

A quarter of the UK's trains run solely off diesel.

The government wants them all gone by 2040.

"The carbon writing is on the wall", says Mike Muldoon from French train
manufacturer Alstom, the company behind Germany's hydrogen trains.

He argues the rail sector has to get greener "if we are going to convince
more people to shift from car to train."

But until the day when hydrogen trains are ferrying passengers around the
UK, diesel-powered trains are a necessity.

That is because more than two thirds of our rail lines do not have overhead
cabling which electric trains need to run.

So trains are bi-mode, which means they can run off electricity, where there
are overhead cables, and off diesel the rest of the time.

But bi-mode trains are, in environmental terms, far from perfect.

And electrifying rail lines does not come cheaply for the government.

Regional routes which carry relatively few passengers are unlikely to be
electrified soon.

And that is where hydrogen trains come in.

The hope is that they will be carrying passengers in the UK in two years.

Rail electrification in numbers

In January 2018, 36% of the UK's rail network was electrified.

Because the busiest routes are electrified, 70% of all trains in the UK are
electric.

24% of the UK's trains are diesel-only.

The remaining 6% of UK trains are bi-mode.

The short answer is no. That's because German trains are taller.

"Because the Victorians went first they built trains smaller", says Mike
Muldoon from Alstom.

Smaller trains means less space to fit all the technology on board.

The challenge now is to design trains which have enough hydrogen in their
tanks to last an entire day.

"The technology should be discreetly hidden", says Mike Muldoon, Alstom's UK
head of business development.

For example its hydrogen trains in Germany, which are similar to a future UK
train design, have the fuel cells in the roof and the batteries underneath
the train.

Porterbrook's 'Hydroflex' train is bi-mode, meaning it can be powered by
electricity made from hydrogen or take electricity from overhead cables.

The plan is that the train will begin testing on the UK mainline in March.

Helen Simpson, from Porterbrook, says hydrogen trains are "very practical"
for replacing long-distance diesel routes."--BBC

US-China trade war: Officials to resume talks before G20

US and China will resume trade talks ahead of a meeting between their
leaders at a G20 summit next week, US President Donald Trump has said.

Mr Trump said on Twitter he had a "very good" call with Chinese President Xi
Jinping and their teams would start talks before they met in Japan.

The US escalated tensions with tariff hikes in May, derailing months of
talks between the economic powerhouses.

The two countries have been fighting a damaging trade war over the past
year.

The Chinese president said he was prepared to meet with Mr Trump at the G20
meeting next week, according to state media Xinhua.

Mr Trump said he would have an "extended meeting" with his Chinese
counterpart at the summit in Japan.

Trade talks ground to a halt last month when Mr Trump accused China of
reneging on its promises and raised tariffs on $200bn (£159.2bn) worth of
Chinese goods.

The move came as a surprise to many who had thought the US and China were
nearing a trade deal. China retaliated with its own tariff hikes.

The Trump administration has threatened to impose tariffs on another $300bn
worth of Chinese products if the two sides can't reach an agreement on
trade.

Tariffs on billions of dollars worth of goods from the US and China imposed
over the past year have weighed on the global economy and hit financial
markets.

Many businesses have urged Mr Trump to end the trade war, and public
hearings on the potential impact of additional duties on Chinese goods are
underway in Washington.

Companies ranging from retailers to electronics firms have made submissions
to the US trade department warning that more tariffs will hurt their
business and consumers.

Still, in his latest comments the US president appeared more optimistic
about striking a trade deal.

"I think we have a chance. I know that China wants to make a deal. They
don't like the tariffs, and a lot of companies are leaving China in order to
avoid the tariffs," Mr Trump told reporters at the White House on Tuesday.

Despite moves to resume talks, recent comments from both sides suggest they
still remain far apart on many issues.

Sticking points in trade negotiations have included how to enforce a deal
and how fast to roll back tariffs.--BBC

US Fed opens door to interest rate cut after Trump criticism

The US central bank has opened the door to an interest rate cut, in a shift
in guidance that follows criticism by President Donald Trump.

The Federal Reserve left rates on hold, but said uncertainties about the
economic outlook could force its hand.

According to the vote, one Fed policymaker advocated an immediate cut,
something the president has called for.

Officials have in recent weeks acknowledged that the trade war with China is
darkening the outlook.

The policy-setting Federal Open Market Committee (FOMC) kept the key rate in
the 2.25-2.5% range, but said "uncertainties about this outlook have
increased" and the Fed "will act as appropriate to sustain the expansion."

The closely-watched Fed statement included a marked shift in language. No
longer did the central bank say it would remain "patient" in assessing
economic data.

"In light of these uncertainties and muted inflation pressures, the
Committee will closely monitor the implications of incoming information for
the economic outlook and will act as appropriate to sustain the expansion,
with a strong labour market and inflation near its symmetric 2% objective,"
the FOMC statement said.

James Bullard, president of the Fed's St Louis regional branch, voted for a
cut of 25 basis points.

The Fed's change in tone comes after the introduction of new tariffs on
$200bn worth of Chinese imports and Mr Trump's threat to impose new taxes on
Mexican goods.

Mr Trump says the stronger dollar is hurting US companies, and a rise in
rates would only encourage foreign investors to buy the greenback and
increase its strength further.

He has attacked the Fed and its chairman Jerome Powell on a number of
occasions over the past year, putting pressure on them to keep interest
rates low. And there have been reports that Mr Trump talked privately with
advisers about firing him.

'Not without irony'

The Fed did not cut rates, but such a move is now very clearly on the
central bank's agenda. And it would be exactly what President Trump wants
them to do.

There are some ironies in that. Launching his re-election campaign, Mr Trump
called the US economy the "envy of the world".

But the reason that the Fed is gearing up to do what he thinks they should
do is increased uncertainties about the outlook.

And one of the main factors in that is international trade.

The uncertainty in that area reflects the policies of the Trump
administration: in particular, the possibility of an escalation in the
conflict with China. Further increases in tariffs on Chinese goods are on
the President's agenda.

That said, Fed officials might yet take some comfort from his tweet
yesterday that he had had a good conversation with the Chinese President Xi
Jinping.

Which raises another irony. If the two leaders do manage a deal on trade, it
would take away one of the considerations leading the Fed to think about a
rate cut.

Jon Augustine, chief investment officer at Huntington National Bank, said he
was now expecting a rate cut in July "absent some big trade news or other
news".

Nancy Curtin, chief investment officer at Close Brothers Asset Management,
said that despite Mr Trump tweeting that trade tensions could be resolved
soon, the Fed remains worried about the impact on growth.

She sees the possibility of two interest rate cuts this year. Anything else
"will be seen as a disappointment," she said.--BBC

HK billionaire to pay $14m in tuition fees for Chinese students

Hong Kong's richest man Li Ka-Shing has pledged to pay the tuition fees for
a class of Chinese university students through his charitable foundation.

The Li Ka-Shing Foundation will fund Shantou University's 2019 incoming
class for up to five years.

Mr Li, aged 90, is worth $30.4bn (£24.2bn) according to Forbes.

Last month billionaire Robert F Smith made a similar move, saying he would
pay the loans of a US college class.

The Li Ka-Shing Foundation will cover full tuition for four to five years
for undergraduates, starting with the incoming class of 2019 at Shantou
University, in the Guangdong province of China.

Asia's 'Superman' tycoon Li retires

The tycoon who just paid off 400 students' debt

The move will cost 100m Chinese yuan ($14.4m; £11.5m) a year.

"The Foundation hopes this scheme can alleviate financial burdens for
families and encourage the pursuit of personal interests and further
learning to better prepare graduates for the challenges of an increasingly
complex global economy," the foundation said in a statement.

'Superman'

Mr Li, who has a rags-to-riches story after starting work sweeping factory
floors as a young boy, was ranked 28th on Forbes rich list in 2019.

He retired from his business empire last year, handing over the reins to his
eldest son Victor Li.

The Li family's CK Hutchison Holdings and CK Asset Holdings groups are
involved in sectors including retail, telecoms and power.

Mr Li was one of the first Hong Kong tycoons to invest in mainland China,
and property accounts for a big part in his wealth.

The billionaire was knighted by the UK in 2000, and earned the nickname
"Superman" for his business and investment success.

Media captionThe moment a billionaire cleared a whole class's student debt

Mr Li's generosity comes on the heels of a similar move by American
philanthropist Robert F Smith.

Last month the billionaire tech investor shocked graduating students in
Atlanta, Georgia, by telling them he would pay off all of their student
loans.

Nearly 400 students stand to benefit from the pledge to wipe out their debt,
thought to be worth $40m.--BBC

Facebook urged to pause Libra crypto-currency project

A US lawmaker has said Facebook should delay the launch of its Libra
crypto-currency - hours after the social network formally announced the
project.

Libra, set to be launched next year, will let people make payments via
Facebook's apps and WhatsApp.

But the company should wait until the US Congress has examined the project,
according to the chairwoman of the House Financial Services Committee.

Facebook said it looked forward to responding to policymakers' questions.

"Given the company's troubled past, I am requesting that Facebook agree to a
moratorium on any movement forward on developing a crypto-currency until
Congress and regulators have the opportunity to examine these issues and
take action," said Democratic congresswoman Maxine Waters.

She cited the firm's history of controversies involving user-data among her
concerns, and called on Facebook's executives to testify before her
committee.

"We look forward to responding to policymakers' questions as this process
moves forward," a Facebook spokesman said.

Facebook plans to allow its users to buy Libra and store it online in a
digital wallet called Calibra. It would then be transferable between users
and could eventually be used to pay bills or buy things.

US Senator Sherrod Brown, who sits on the Senate Banking Committee, said he
thought Facebook had become "too big and too powerful".

"We cannot allow Facebook to run a risky new crypto-currency out of a Swiss
bank account without oversight," he said in a statement.

UK regulators are not yet waving a red flag in front of the Facebook
crypto-currency train - but they are making it clear that if it does gather
speed they will want to step in. Or as Bank of England governor Mark Carney
said yesterday about the crypto-market in general: "Anything that works in
this world will become instantly systemic and will have to be subject to the
highest standards of regulation."

If Libra wants to be a big player in the UK's payments system it will have
to be regulated by the Financial Conduct Authority and show that it knows
who its customers are and that it has strong anti-money-laundering controls.
Existing money-transfer firms say complying with all the rules can be an
onerous and expensive business.

That said, I detect some scepticism amongst the regulators about the
prospects for Facebook's currency in the UK. One official pointed out that
the UK already had a cheap, fast and efficient payment system. "It's not
obvious why someone here would choose to hold Libra with some exchange rate
risk, when they could use pounds. "

They also point out that the Libra blockchain is still under development and
there is little detail about how the system will work. That said, if this
does turn out to be the future of money, there will be all sorts of
consequences for the world economy, so the regulators are going to keep a
close eye on how the project develops.

According to a letter seen by the Financial Times, the G7 nations plan to
set up a working group to evaluate the risks of currencies like Libra.

The participants will examine, for example, the potential for Libra to be
exploited by money-launderers.

It's not yet clear how many of Facebook's 2.38 billion users worldwide would
make use of Libra - but given the size of the social network, it is possible
that the crypto-currency could become a significant financial force.--BBC

INVESTORS DIARY 2019

Company

Event

Venue

Date & Time

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

BAT

AGM

Head office, 1 Manchester Road, Southerton

28 June 2019, 10am

ZBFH

AGM

Boardroom, Ground Floor, 21 Natal Road, Avondale

28 June 2019, 10:30am

ZPI

AGM

206 Samora Machel Avenue East

28 June 2019, 2pm

ZHL

AGM

Aquarium Room, Crowne Plaza Monomotapa Hotel

30 June 2019, 10am

Edg Edgars

AGM

Edgars Training Auditorium, 1st Floor LAPF House, 8th Avenue/Jason Moyo St,
Bulawayo

11 July 2019, 9am

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

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20190620/2f3c79b2/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/20190620/2f3c79b2/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/20190620/2f3c79b2/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/20190620/2f3c79b2/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 34641 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20190620/2f3c79b2/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/20190620/2f3c79b2/attachment-0009.jpg>