Major International Business Headlines Brief::: 06 March 2019

Wed Mar 6 08:42:50 CAT 2019

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Major International Business Headlines Brief::: 06 March 2019

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*  South Africa's economy grows in Q4 2018 as farming expands

*  S.Africa's mines minister calls on police to quell violence at Sibanye
mine

*  Kenya in talks with IMF over new standby facility - Mikkelsen

*  AngloGold Ashanti to sell Northern Colombia exploration project

*  Sudan lowers customs exchange rate to 15 pounds per dollar

*  Rest of Africa drives Nedbank earnings growth of 14 pct

*  Kenya's private sector activity slows to 15-month low in Feb -PMI

*  Nigeria's central bank head to end five-year term in June

*  Tesla: China suspends customs clearance for Model 3 car

*  UK may slash trade tariffs under a no-deal Brexit

*  JetBlue considers new US-UK flight routes

*  Goldman Sachs relaxes dress code for all employees

*  Kylie Jenner becomes world's youngest billionaire

*  Air India demands crew 'hail motherland'

*  Barclays fundraising 'about saving jobs'

 <mailto:info at bulls.co.zw> 

South Africa's economy grows in Q4 2018 as farming expands

PRETORIA (Reuters) - South Africa’s economy expanded at the end of last year
helped by growth in agriculture and manufacturing, data showed on Tuesday, a
boost for President Cyril Ramaphosa who has pledged to re-start growth after
a decade of stagnation.

Statistics South Africa said the economy grew 1.4 percent in
October-December, after expanding by a revised 2.6 percent in the third
quarter.

The growth slightly lagged market expectations of a quarter-on-quarter GDP
expansion of 1.6 percent, according to a Reuters poll.

The rand extended its session gains after the data, trading 0.51 percent
firmer at 14.1275 per dollar as of 0941 GMT.

The statistics agency said farming expanded 7.9 percent in the quarter,
while manufacturing rose 4.5 percent. Mining, however, fell 3.8 percent.

On an annual basis, Africa’s most industrialised economy grew by 0.8 percent
compared to a revised 1.4 percent expansion in 2017.

 <mailto:info at bulls.co.zw> 

S.Africa's mines minister calls on police to quell violence at Sibanye mine

JOHANNESBURG (Reuters) - Growing unrest at Sibanye-Stillwater’s South
African gold operations has left nine people dead since workers downed tools
in November, prompting the country’s mines minister to call on the police to
step in and protect the local community.

Mineral Resources Minister Gwede Mantashe has requested the assistance of
the Minister of Police to “restore and safeguard the safety and security of
the community” in Carletonville in the west of Johannesburg, the mines
ministry said.

“[The strike] has become violent, impacting negatively on communities in the
area, with nine deaths reported thus far and an estimated 62 houses burnt
down,” the mineral resources department said.

The Association of Mineworkers and Construction Union (AMCU) has been on
strike at Sibanye’s bullion operations since mid-November and plans to
extend the strike to its platinum mines as well as all other mines where the
AMCU has members.

Sibanye-Stillwater said last month it could cut nearly 6,000 jobs at its
gold mining operations, where AMCU has been on strike since mid-November
over a wage dispute.

Firms including AngloGold Ashanti, Harmony Gold, Anglo American Platinum who
received a strike notice are awaiting a labour court ruling which will
decide if mineworkers’ can embark on an industry-wide strike.

South Africa is home to the world’s biggest platinum group metals deposits
and accounts for just over 90 percent of global production.

The police minister is expected to visit the area in the next few days, the
mines ministry said.

Kenya in talks with IMF over new standby facility - Mikkelsen

NAIROBI (Reuters) - Kenya is discussing a new standby credit facility with
the International Monetary Fund after the expiry of a previous programme
last year, the institution’s representative to Nairobi said on Tuesday.

The $989.8 million arrangement expired last September after the government
failed to meet the fund’s conditions for an extension, including the repeal
of a cap on commercial lending. [nL5N1W01PS]

“I can just confirm that discussions on a new programme are ongoing,” Jan
Mikkelsen told Reuters without offering more details.

The government is preparing to issue a $2.5 billion Eurobond and analysts
say it would get better interest rates if it secured the standby credit
arrangement with the IMF before it goes to market.

AngloGold Ashanti to sell Northern Colombia exploration project

JOHANNESBURG (Reuters) - South Africa’s AngloGold Ashanti agreed to sell its
interest in Northern Colombia Holdings Limited to Royal Road Minerals
Limited to focus on its other Colombian exploration projects, it said on
Tuesday.

AngloGold, which has the Quebradona and Gramalote greenfields exploration
projects in Colombia, said it would sell Northern Colombia Holdings, which
includes mining concession agreements covering approximately 36,000 hectares
and the rights to acquire further mining concessions.

“In Colombia, AngloGold Ashanti will focus on its key projects in the
region, particularly Quebradona and Gramalote,” AngloGold said in a
statement.

The agreement with Royal Road Minerals will see AngloGold receive a cash
payment of around $4.6 million with further payments amounting to $35
million in total if certain milestones are reached.

AngloGold, which also has operations in South Africa and Australia, said
last month it was putting its interests in an Argentine mine up for sale as
it looks to focus on operations with a longer shelf life and ability to
deliver higher returns.

Sudan lowers customs exchange rate to 15 pounds per dollar

CAIRO (Reuters) - Sudan has lowered its customs exchange rate to 15 Sudanese
pounds to the dollar, from a previous rate of 18, a document seen by Reuters
on Tuesday showed.

The cabinet also decided to discount 75 percent of storage fees for cargoes
and containers stuck in Sudanese ports over the period of Feb. 1-25,
according to the document which is dated Feb. 26.

Sudanese businessmen had repeatedly called on the government to lower the
rate to help them purchase dollars as the country faces its crippling
shortage of foreign currency.

Rest of Africa drives Nedbank earnings growth of 14 pct

JOHANNESBURG (Reuters) - Nedbank, one of South Africa’s top lenders, said on
Tuesday its full-year headline earnings rose by 14.5 percent, driven mostly
by its business outside of the country, including once-troubled West African
associate Ecobank.

Headline earnings stood at 13.5 billion rand ($950.27 million) for the 12
months to Dec. 31, 2018, resulting in undiluted headline earnings per share
(HEPS) of 2,793 cents ($1.97), compared with 2,452 cents a year earlier.

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

Earnings at the bank’s South African retail operations rose 1.5 percent,
where a sluggish economy, declining consumer spending and low consumer and
business confidence have hit loan growth.

Nedbank CEO Mike Brown said the lender expected a “slow improvement” this
year in business and consumer confidence, and economic and credit growth in
South Africa.

“These assumptions, along with ongoing delivery on our strategy, support our
current guidance for growth in diluted headline earnings per share for 2019
to be at or above nominal GDP growth,” he said in a statement.

Earnings at the lender’s corporate and investment bank - its biggest
earnings driver - rose by 6.3 percent. But that was slower than an earnings
growth of 98.2 percent across its subsidiaries elsewhere in Africa and more
than 100 percent at Ecobank.

Togo-based Ecobank, in which Nedbank has a 21 percent share, is central to
Nedbank’s expansion on the continent, and after years of hefty losses and
governance issues is emerging as a source of fast-growing profits.

It posted 375 million rand in headline earnings last year after making a 975
million rand headline loss in 2017.

Nedbank raised its 2018 dividend by 10.1 percent to 1,415 cents per share
and its common equity tier one capital ratio - a measure of banks’ financial
strength - stood at 11.7 percent.

It said in 2019 it expected its net interest margin, which reflects banks’
profitability, to fall below 2018 levels, and its credit loss ratio to
increase slightly.

($1 = 14.2065 rand)

Kenya's private sector activity slows to 15-month low in Feb -PMI

NAIROBI, March 5 (Reuters) - Kenya’s private sector activity fell in
February to its lowest level in 15 months, hurt by slowing consumer demand
and growth in output, a survey showed on Tuesday.

The Markit Stanbic Bank Kenya Purchasing Managers’ Index (PMI) for
manufacturing and services fell to 51.2 from 53.2 in January. Any reading
above 50.0 indicates growth.

That was the lowest reading for the PMI since November 2017, when conditions
last worsened.

At that time Kenya was emerging from a presidential elections that had to be
repeated in October 2017 after the country’s top court nullified the
original August vote. Economic activity had been subdued in the months
leading to the polls.

Economic activity remained subdued until after March 2018, when President
Uhuru Kenyatta and his foremost rival, opposition leader Raila Odinga,
reconciled.

“Contributing to the fall in the headline figure, new order growth slowed
considerably in February to the weakest in the current sequence of
expansion. Moreover, over 25 percent of firms saw a fall in sales amid
softer customer demand,” the survey report said.

“A weaker rise in overall demand instigated slower output growth at Kenyan
firms in February. The rate at which activity increased was the least marked
in 15 months.”

Nigeria's central bank head to end five-year term in June

LAGOS (Reuters) - The head of Nigeria’s central bank is likely to exit in
June and would take leave from this month before stepping down at the end of
his five-year term, a move that could alter the path for interest rates and
the currency, sources said on Monday.

Godwin Emefiele has kept interest rates high at 14 percent for over two
years to tighten liquidity and support the naira after a crisis forced the
central bank to devalue the currency. The bank has since introduced multiple
exchange rates to prop up the naira.

It was not clear when Emefiele’s replacement would be appointed but central
bank governors in Nigeria typically go on a 3-month leave before the end of
their tenures. The central bank declined to comment.

Muhammadu Buhari secured a second term in office as Nigerian president in
last month’s election that was closely-fought on the economy, recovering
after it entered into recession in 2016.

Several candidates have been touted to replace Emefiele. Among them is the
head of Nigeria’s “bad bank” AMCON, Ahmed Kuru, who led the sale of the
country’s nationalised banks, sources say. Also Aishah Ahmad, deputy
governor of the apex bank is in the running.

Whoever succeeds Emefiele would be expected to continue to keep the naira
stable to attract foreign investors, a policy which Buhari has backed.

Foreign investors have been buying Nigerian bonds over the past six months
owing to the stable currency and as tight liquidity keep yields attractive,
as high as 15 percent.

Tesla: China suspends customs clearance for Model 3 car

Tesla's shipments of its Model 3 electric car to China have been stymied
after custom authorities suspended clearance of the vehicle.

Clearance was held up after Chinese customs discovered misprinted labels on
certain Model 3 cars.

It comes just weeks after Tesla began shipping the vehicle to China, which
is the world's biggest car market and is key to the company's future.

Tesla said it had "already reached a resolution with Chinese customs".

A spokesperson said: "We are working closely with them to resume clearance
procedures on these vehicles."

China powers up electric car market

Tesla cuts price of Model 3 to $35,000 and moves sales online

Tesla to cut about 3,000 jobs as cars 'too expensive'

They said that sales of the Model 3 in China "are not impacted, and we
continue to deliver Model 3 vehicles that have already been processed".

However, Daniel Ives, analyst at Wedbush Securities, said: "Selling into
China has clear hurdles and this is a reminder of the pitfalls when betting
on growth in the region."

Shares in Tesla fell 1.14% to $282.11.

Tesla is hoping to reduce the cost of producing and transporting the Model 3
by making the car at its own manufacturing site near Shanghai, where
construction began in January.

The plant, Tesla's first outside the US, is scheduled to start production by
the end of this year.

Last week, the company said that it had finally succeeded in reducing the
price of its Model 3 in the US to $35,000, a pledge it made more than two
years ago, by closing showrooms.

The lower priced car is expected to be made available to order in Europe and
China in three to six months' time.

Tesla made a profit in the second half of its financial year but chief
executive Elon Musk said the firm is forecast to report a loss in the first
quarter of this year.--bbc

UK may slash trade tariffs under a no-deal Brexit

The UK government may cut trade tariffs on between 80% and 90% of goods in
the event of a no-deal Brexit, reports say.

Some tariffs would be scrapped completely, including those on car parts, and
some agricultural produce.

However, 10-20% of key products would continue to be protected by the
current level of tariffs, including some textiles, cars, beef, lamb and
dairy.

The government said it would make an announcement once a decision had been
finalised.

Tariffs are taxes on imports which protect UK companies from overseas
competition.

UK to keep trade penalties post-Brexit

UK farmers promised 'no deal' tariff protection

Many supporters of Brexit argue that tariffs on food and other items should
be scrapped in order to lower prices for consumers.

But farmers fear that cheap imports and lower standards would destroy many
parts of British agriculture. Similar concerns have been expressed in other
sectors of the economy, and many business leaders fear the government could
be tempted to cut tariffs at their expense.

The plans for widespread cuts in tariffs were first reported by Sky News,
which said the government intended to publish details of the tariff cuts if
lawmakers rejected Prime Minister Theresa May's Brexit deal in a vote due
next week.

The Department for International Trade said that no final decision had been
taken on tariffs, but there had been discussion across government about the
right level in the even of a no-deal.

"If we leave the European Union without an agreement, our tariffs will need
to strike a balance between protecting consumers and businesses from
possible price rises and avoiding the exposure of sensitive industries to
competition."

'Unilateral liberalisation'

Appearing before the International Trade Select Committee on 6 February,
Liam Fox said he was carefully considering all the options for tariffs in
the event of no deal.

"Unilateral liberalisation [reducing tariffs to zero] is not what I would
propose, and I have not heard anyone else in government propose it," he
said.

"Throughout, there needs to be a balance between the impact on consumers and
the impact on producers. The government are very clear that they need to
give protection where necessary, but without becoming protectionist."

And last month, Environment Secretary Michael Gove promised farmers that the
government would apply tariffs to food imports in the event of a no-deal
Brexit, to provide "specific and robust protections" for farmers.

"Your concerns have absolutely been heard," Mr Gove told a conference of the
National Farmers' Union (NFU). "It will not be the case that we will have
zero-rate tariffs on food products.

"There will be protections for sensitive sections of agriculture and food
production."

Tariffs perform two functions: to protect businesses from competition from
abroad - and to raise money for governments.

However, these charges also spell higher prices for consumers.

By cutting tariffs on the majority of imports, the government would be
giving consumers a helping hand.

While areas such as farming would benefit from the protection of tariffs,
dropping them elsewhere would leave other UK businesses disadvantaged
relative to their European competitors.

That may weigh on politicians' minds, as the Prime Minister tries to rustle
up last minute support for her deal.

In global terms, cutting the majority of tariffs would be a hugely bold
move: it would send out the message that the UK is freeing up trade and is
open for business--bbc

JetBlue considers new US-UK flight routes

The transatlantic skies could become a little more crowded as US airline
JetBlue considers launching new routes from New York and Boston to London.

The 20-year old company says the transatlantic market suffers from poor
competition and high fares, especially in the premium category.

It would be JetBlue's first foray into Europe - it currently operates in the
US, the Caribbean and Latin America.

It is expected to make a decision on the routes this year.

UK and US agree post-Brexit flights deal

Virgin Atlantic removes cabin crew make-up rule

Climate change: Which airline is best for carbon emissions?

JetBlue has an option to convert some A321neo aircraft that it ordered from
European manufacturer Airbus in 2016 to the long range version.

A spokesman for JetBlue said: "We plan to announce our decision on the long
range version of the A321 in 2019."

He added: "Potential routes to Europe could provide us an opportunity to
grow our focus cities of Boston and New York as we consider the best use of
our aircraft from a margin perspective in those cities."

Adding to speculation about new routes, the company recently told staff that
it would hold a "chat about JetBlue's vision and strategy" on 10 April.

'Obscene'

Last year, JetBlue's chief executive Robin Hayes said the rates that some
airlines charge for business class flights between New York and London were
"obscene".

Speaking at the Aviation Festival in London in September, he said: "When we
see that, we know that we can do that a lot cheaper. We think it's a good
opportunity and when the time is right to take advantage, we may very well
do that."

British Airways and American Airlines as well the partnership between Air
France-KLM, Delta and Virgin Atlantic have traditionally dominated
transatlantic routes.

But carriers such as Norwegian Air Shuttle, Wow and Primera have emerged in
recent years to offer lower cost alternatives.

However, Norwegian recently announced plans to raise 3bn Norwegian kroner
(£260m) after reporting a loss for the full year.

International Airlines Group, which owns BA, had considered making a bid for
Norwegian and acquired shares in the company.

But it said in January that it would not make an offer for Norwegian and
would sell its 3.9% stake in the airline.--bbc

Goldman Sachs relaxes dress code for all employees

Goldman Sachs is relaxing its dress code, as the Wall Street giant moves
toward a more casual workplace.

The investment bank announced the "firm wide flexible dress code" in an
internal memo, urging employees to use "good judgement" in their fashion
choices.

Goldman Sachs loosened the dress code for its tech division in 2017, in a
bid to appeal to top talent.

Other banks like JP Morgan have taken similar steps.

In a widely cited memo, the US bank said the "changing nature of workplaces
generally in favour of a more casual environment" had prompted the move to a
"firm wide flexible dress code".

"Casual dress is not appropriate every day and for every interaction and we
trust you will consistently exercise good judgement in this regard," the
memo read.

Goldman Sachs names DJ-ing banker as boss

How Lloyd Blankfein changed Goldman Sachs

Goldman Sachs offers UK savings account

The memo was signed by the investment bank's top executives including chief
executive David Solomon.

Mr Solomon - also an electronic dance DJ - marks a new era of leadership for
Goldman Sachs after 12 years under the helm of Lloyd Blankfein.

He has promised more transparency while the bank has also made strides into
retail banking.

Goldman Sachs, the world's most influential investment bank, has faced
criticism for its role in the global financial and euro zone debt crises.

It was famously described by Rolling Stone magazine as the "great vampire
squid wrapped around the face of humanity" for its relentless pursuit of
money.--bbc

Kylie Jenner becomes world's youngest billionaire

Kylie Jenner has become the world's youngest self-made billionaire,
according to Forbes billionaires' list.

The youngest Kardashian family member is making her fortune from her
best-selling cosmetics business.

The 21-year-old founded and owns Kylie Cosmetics, the three-year-old beauty
business that generated an estimated $360m in sales last year.

She reached the milestone earlier than Facebook founder Mark Zuckerberg who
became a billionaire aged 23.

"I didn't expect anything. I did not foresee the future.

"But [the recognition] feels really good. That's a nice pat on the back," Ms
Jenner told Forbes.

What does it take to be a billionaire?

How a reality TV teen became a beauty giant

The list shows Amazon's founder, Jeff Bezos, remains the world's richest
man.

His fortune totals $131bn, according to Forbes, up $19bn from 2018.

But the billionaires' combined worth is down from $9.1 trillion at $8.7tn.

Facebook founder Mark Zuckerberg's wealth is among those falling.

It has dropped by $8.7bn (£6.6bn) in the past year to $62/3bn, according to
the Forbes list.

His shares in Facebook at one point lost a third of their value as the
company battled privacy scandals.

Amazon's share price has been good for Mr Bezos' bank balance and the gap
between him and the number two, Bill Gates, is a little wider, even though
Mr Gates' fortune has swelled to $96.5bn from $90bn last year.

Of all the billionaires on the list only 252 are women, and the richest
self-made woman is real estate mogul Wu Yajun of China, worth an estimated
$9.4bn.

The number of self-made women reached 72 for the first time, up from 56 a
year ago.

The Forbes billionaires list is a snapshot of wealth taken on 8 February
2019. The magazine uses that day's stock prices and exchange rates from
around the world.

According to Forbes there are fewer billionaires around - 2,153 of them on
the 2019 list, down from 2,208 in 2018. This, in part, explains why their
average net worth is $4bn, down from $4.1bn. Forbes also found that 994 of
them are less well off than a year ago.

Luisa Kroll, assistant managing editor of wealth at Forbes, said: "Even with
strong headwinds, resourceful and relentless entrepreneurs find new ways to
get rich."

There are 52 UK citizens on the list. At the top are the Hinduja brothers,
Srichand and Gopichand, who control the Hinduja Group conglomerate, with a
net worth of $16.9bn.

Behind them, ranked as the wealthiest single individual in the UK, is James
Ratcliffe, founder of the chemical group Ineos, and worth $12.1bn.

Another newcomer is Safra Catz co-chief executive of software firm Oracle,
who according to Forbes earns a $41m salary and ranks as one of the world's
highest paid female executives.

The US has 607 billionaires, more than any other country. China has the next
largest number with 324. But the list of Chinese billionaires has seen some
big changes - it has 44 newcomers to the list while 102 have dropped off.

The weakness of the euro has not been kind to European billionaires who make
a poor showing with only two in the top 20: Bernard Arnault (ranked 4th),
the chief executive of the French luxury goods company LVMH, and Amancio
Ortega (ranked 6th), who founded retail group Inditex which owns brands such
as Zara.

Forbes said 247 people who were on the billionaires list last year have now
dropped off. Among them are Domenico Dolce and Stefano Gabbana, fashion
designers and co-founders of Dolce & Gabbana.

The group chairman of supply chain management company Li & Fung, Victor
Fung, is also no longer classed as a billionaire by Forbes, after being on
the list for 18 years in a row.--bbc

Air India demands crew 'hail motherland'

India's national airline has told its crew to end every in-flight
announcement with the patriotic phrase, "Jai Hind" (Hail the motherland) -
and this has tickled social media users.

Air India's company advisory instructs crew to say the phrase after a
"slight pause and with much fervour".

This quickly inspired tweets of imaginary in-flight announcements that end
with "Jai Hind".

But many wondered if patriotism was the right focus for the struggling
airline.

Air India, which is in severe debt, has not turned a profit since 2007 and a
recent government offer to sell a controlling stake in it failed to attract
any takers.

Air India sale: Who'll buy the debt-laden carrier?

Indians emulate pilot's 'hero moustache'

The directive from Air India comes at a time when patriotism is particularly
high in India.

The country has been at loggerheads with its nuclear-armed neighbour
Pakistan over the past few weeks, following a deadly suicide bombing that
killed at least 40 Indian paramilitary troops in the disputed Kashmir
region.

The incident which led to airstrikes by India and the subsequent capture and
release of an Indian pilot by Pakistan, saw increasing nationalist sentiment
fuelled by national and social media.

One Twitter user even suggested a competition to see which passengers
respond with the loudest "Jai Hind" - with the winner getting a free
upgrade.

Air India, the country's oldest commercial airline, has long been the butt
of jokes focusing on its customer service and old planes. It was recently in
the news for a bed bug infestation on one of its aircraft.

So Twitter users did not miss the opportunity to also poke fun at the
airline for delays and cancellations.--BBC

Barclays fundraising 'about saving jobs'

Former Barclays boss Bob Diamond wanted to raise funds privately in the
financial crisis to preserve his own job, a court has heard.

Mr Diamond reportedly told a meeting "This is all about saving jobs - mine
and John's", referring to then chief executive John Varley.

The quote was recalled by former Barclays executive Richard Boath, currently
on trial at Southwark Crown Court together with Mr Varley.

In an interview with the Serious Fraud Office (SFO) played to the court, Mr
Boath related Mr Diamond's statement in June 2008.

Why are four former Barclays executives on trial?

Barclays bosses 'paid Qatar secret fees'

'None of us wants to go to jail'

Mr Boath told the SFO Mr Diamond was concerned he might have to leave his
job if the bank raised funds publicly, for example through a "rights issue".
In a rights issue, existing shareholders, many of them large City
institutions, are offered the right to buy new shares in exchange for
handing over new funds.

But, Mr Boath told the SFO, Bob Diamond was opposed to going to
institutions. In that event brokers would be required to check the bank's
marking of its trading positions [the value of its holdings of shares and
bonds].

"There was a meeting
 In that meeting Bob said - this is all about saving
jobs - it's mine and John's.

'Drains-up'

"What he meant was Bob had consistently said - 'no, we don't need capital'.

"The gossip in the market was that we hadn't marked our positions as
conservatively as other people and that if we couldn't raise capital in this
process the only alternative would be a rights issue
and the brokers would
come in and do their due diligence - a "drains-up" - and we'd have to defend
our position.

"What Bob said about saving jobs was that in those circumstances they [Bob
Diamond and John Varley] would have to go," Mr Boath told the SFO in 2016.

A recording of Mr Boath's interview was played at the trial of John Varley,
Roger Jenkins, Richard Boath and Tom Kolaris. They are accused of conspiracy
to commit fraud by false representation. They deny the charges.

The charges relate to two fund-raising efforts in June 2008 and October
2008, when the bank raised £12bn, mostly from private investors including
Qatar Holdings, a company owned by the state of Qatar.

The Serious Fraud Office alleges that defendants misled shareholders by
paying Qatari companies £322m in secret fees for "Advisory Services
Agreements" that were not properly disclosed.

The SFO has alleged that the agreements were in fact "a disguised mechanism
for providing extra fees to the Qataris in a way in which defendants knew
and intended would not be disclosed".

'Air cover'

Today the court heard how Mr Boath told the SFO: "The pressure to get the
deal done was intense from the very beginning."

Bankers senior to Mr Boath were communicating about the deal, he said,
including Mr Diamond and Mr Varley. The bank's most senior lawyers, Mark
Harding and Judith Shepherd, repeatedly advised that the bank could pay fees
for services if it received sufficient value for those services, he told the
SFO.

Mr Boath described in his SFO interview how he was asked in the first
capital raising in June by his senior colleague Roger Jenkins to calculate
the size of an additional fee. The Qataris had demanded a commission 1.75%
higher than what was paid to other investors.

This amount - £42m - was to secure the Qataris' participation in the capital
raising, Mr Boath told the SFO. When this was discussed the services to be
paid for had not yet been determined.

Mr Boath described how he sought "air cover" - the reassurance of knowing
lawyers and people senior to him knew the issues and had discussed them.

'Blindingly obvious'

"What I was concerned about was, one - is this legal? And two - how are we
going to deal with this if other investors discover this?

"Firstly why don't we tell them [the Qataris] to get stuffed? And two - do
the senior - does Varley and Bob and Mark - have they all read this
undertaking in the subscription agreement that everyone is getting the same

from where I sat that's a fairly brave thing to say - cos I wouldn't be
thanked for it.

"The conversation that then ensued was whether that was something the bank
could do - could reasonably do - could legally do - and in that conversation
Mark Harding repeatedly said that the bank was able to enter an arrangement
like that provided it got value for services," Mr Boath told the SFO.

"It was clear for what I recollect that the request had come from the
Qataris for a higher fee. The mechanism - the ASA was a mechanism to pay an
additional fee and satisfy their demand for an additional fee. That was
blindingly obvious from the call and everybody on that call understood
that."

There is no suggestion of wrongdoing on the part of Qatar.

The trial continues.--BBC

INVESTORS DIARY 2019

Company

Event

Venue

Date & Time

Willdale

AGM

Boardroom, Willdale Adminstration Block, Teneriffe Factory, 19.5km peg
Lomagundi Road, Mt Hampden

07 March 2019 11am

Mash

AGM

Boardroom, ZB Life Towers, 77 Jason Moyo Avenue

18 March 2019 12pm

Zimbabwe 

Independence Day

Zimbabwe

18 Apr 2019 

Good Friday

19 Apr 2019

Easter Saturday

20 Apr 2019

Easter Sunday

21 Apr 2019

Easter Monday

22 Apr 2019

Workers Day

01 May  2019

Africa Day

25 May 2019

 <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
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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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