Major International Business Headlines Brief::: 18 March 2019

Mon Mar 18 07:00:25 CAT 2019

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Major International Business Headlines Brief::: 18 March 2019

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*  South Africa's Eskom ups power cuts as storm hits Mozambique imports

*  Crisis-struck Sudan signs deals for $300 million with Arab funds

*  Eskom says South African power cuts to last till Sunday

*  Botswana's Debswana targets diamond output of 24 mln carats in 2019

*  Kenya's Commercial Bank of Africa says its shareholders have accepted merger with NIC Group

*  S.Africa's Tsogo Sun CEO to retire, hotel business spin-off to go ahead

*  S.Africa's Competition Tribunal approves Glencore's bid for Chevron subsidiary

*  Deutsche Bank and Commerzbank in formal merger talks

*  M&S plans big store shift towards weekly food shop

*  Eurostar tells customers 'don't travel'

*  Levi's ride 1980s denim trend back to stock market relisting

*  Boeing: What next after the 737 Max disasters?

*  Volkswagen and former boss face US lawsuit over Dieselgate

*  Sir Philip Green's Arcadia Group seeks to to cut costs

*  Interserve: UK contractor completes fast-track sale

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South Africa's Eskom ups power cuts as storm hits Mozambique imports

JOHANNESBURG (Reuters) - South African state utility Eskom stepped up rolling blackouts on Saturday as it lost 900 megawatts of electricity imports from neighbouring Mozambique, which was hit this week by a cyclone.

Eskom, which generates nearly all of the power for Africa’s most industrialised economy, said that it had cut 4,000 megawatts, double the 2,000 MW it had said would be cut over the weekend after repeated faults at its coal-fired power stations.

The situation worsened on Saturday after a fall in electricity exports from Mozambique, which is cleaning up after a powerful cyclone knocked out communications and electricity pylons on Thursday.

Eskom’s problems are a challenge for President Cyril Ramaphosa as they are holding back efforts to haul the economy out of a slump before a national election in May.

Ramaphosa’s government has promised to inject 23 billion rand ($1.6 billion) a year over the next three years to shore up Eskom’s finances. It has also asked a team of experts to come up with a plan to fix Eskom’s creaking coal plants.

($1 = 14.4096 rand)

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Crisis-struck Sudan signs deals for $300 million with Arab funds

CAIRO (Reuters) - Sudan has signed deals for loans worth $300 million with regional Arab funds, authorities said on Saturday, as the government struggles to cope with an economic crisis and nearly three months of street protests.

The finance ministry agreed a $230 million loan with the Abu Dhabi-based Arab Monetary Fund to support the balance of payments, the ministry said in a statement.

A deal for a second loan worth $70 million was signed with the Arab Trade Financing Program, whose shareholders include the Arab Monetary Fund and which is also based in Abu Dhabi, according to a statement from Sudan’s presidency.

The deals were signed as President Omar al-Bashir and other officials including the central bank governor met Arab Monetary Fund Director General Abdulrahman Al Hamidy in the capital, Khartoum.

A worsening economic crisis in Sudan triggered frequent demonstrations across the country since Dec. 19 in which protesters have called for an end to Bashir’s three-decade rule.

The government has expanded the money supply, pushing inflation to more than 70 percent before the end of last year before it slowed to under 50 percent in January and February, according to official figures.

Diplomats say the government has struggled to raise new funds from abroad as it tries to keep the economy afloat.

Eskom says South African power cuts to last till Sunday

JOHANNESBURG (Reuters) - South Africa’s struggling state power firm Eskom said power cuts would continue until Sunday and warned that further cuts were likely next week, underscoring the risks to businesses in Africa’s most industrialised economy.

Eskom supplies more than 90 percent of South Africa’s power but has suffered repeated faults at its fleet of mainly coal-fired power stations. It is laden with 420 billion rand ($29 billion) of debt and does not generate enough profit to meet its debt-service costs.

Its problems are a big challenge for President Cyril Ramaphosa as they are stymieing efforts to haul the economy out of a slump before a national election in May.

The company cut 2,000 megawatts (MW) of electricity from the national grid on a rotational basis on Friday, the same amount of cuts as on Thursday.

More than a quarter of Eskom’s 45,000 MW generating capacity has been offline because of unplanned power plant outages, including at faulty new mega plant Kusile.

Eskom said in a statement that the extension of the power cuts until Sunday was because it needed to manage its diesel and water reserves, which it uses when it cannot generate sufficient power from its coal plants.

If they drag on into the southern hemisphere winter, which begins in earnest in June, it could exacerbate hardships for millions of South Africans living in poverty.

Ramaphosa’s government has promised to inject 23 billion rand a year over the next three years to shore up Eskom’s finances. It has also asked a team of experts to come up with a plan to fix Eskom’s creaking coal plants.

Analysts say power cuts, which have happened in several rounds since June last year, are one of the reasons why business confidence has slumped in recent months.

The economy grew by just 0.8 percent last year. That is insufficient to meaningfully reduce poverty or South Africa’s high unemployment rate of around 27 percent.

($1 = 14.4550 rand)

Botswana's Debswana targets diamond output of 24 mln carats in 2019

GABORONE (Reuters) - Botswana’s Debswana Diamond Mining, a joint venture between De Beers and the southern Africa country’s government, aims to keep production at around 24 million carats this year, its managing director said on Friday.

Debswana lifted diamond output by 6 percent to a four-year high of 24.1 million carats in 2018, buoyed by strong demand from the United States, China and India.

“I see the year staying as we budgeted at 24 million carats. There is no reason for us to change production forecasts at this moment,” said Debswana managing director Albert Milton.

“But if the markets were to change we will adjust accordingly,” he added.

The company is the largest contributor to Botswana’s government revenues.

Botswana, Africa’s largest diamond producer and among the continent’s wealthiest nations, is trying to reduce its reliance on mineral revenues, which the government sees dropping 4 percent to 13.6 billion pula ($1.26 billion) this year.[nL5N20U62O]

($1 = 10.7759 pulas)

Kenya's Commercial Bank of Africa says its shareholders have accepted merger with NIC Group

NAIROBI (Reuters) - Kenya’s Commercial Bank of Africa said on Friday its shareholders had accepted a share swap with NIC Group, paving way for its merger.

The two banks first announced their planned merger in January, in which current NIC Group shareholders would own 47 percent of the merged entity and CBA shareholders owning 53 pct.

“As a result of the share exchange transaction, it is proposed that NIC Group will acquire sole control of CBA and its subsidiaries,” CBA said in a statement published in Kenyan newspapers.

S.Africa's Tsogo Sun CEO to retire, hotel business spin-off to go ahead

JOHANNESBURG (Reuters) - South African hotelier and casino operator Tsogo Sun said on Friday it is going ahead with the spinoff of its hotel business, as it announced its chief executive would retire in June.

Tsogo Sun CEO Jacques Booysen will be replaced by Chris du Toit, who is the CEO of Galaxy Bingo, which it acquired in 2016.

The company, which operates hotels under brands including Southern Sun, Garden Court and Holiday Inn, said in May last year that it intended to hive off and list the business separately on the Johannesburg Stock Exchange.

It expects the demerger to to take place in June, with shares in the new business distributed to current shareholders.

“Given that the gaming and hotel divisions operate in distinctly different markets and service different customers, there are limited opportunities to leverage synergies within the group as a whole,” it said in a statement.

Tsogo Sun and the new hotel company will enter into a shared services agreement, which will enable essential services currently provided by the group and some cost sharing to continue.

Marcel von Aulock, previously a CEO of the group, would lead the new hotel business, the statement said.

The group’s shares were up 3.6 percent at 1241 GMT.

S.Africa's Competition Tribunal approves Glencore's bid for Chevron subsidiary

JOHANNESBURG (Reuters) - South Africa’s Competition Tribunal on Friday approved with conditions Glencore’s proposed $973 million acquisition of Chevron Corp’s subsidiary in the country.

The tribunal said there must be no job cuts at Chevron South Africa as a result of the merger for five years, the unit must invest 6 billion rand ($416.67 million) in a refinery in the country, and its head office must remain in South Africa.

($1 = 14.4000 rand)

Deutsche Bank and Commerzbank in formal merger talks

Germany's two biggest lenders, Deutsche Bank and Commerzbank, will hold formal talks about a merger.

The announcement caps months of speculation that the two struggling banks would attempt to combine.

A merger could result in massive cost savings, in particular by closing branches. But critics say integrating the firms would be complicated and risky.

The German government appears to favour a deal.

It still owns a 15.5% stake in Commerzbank, acquired after the bank was bailed out following the financial crisis.

Reports says that German Finance Minister Olaf Scholz has urged the two to consider merging, as he believes Germany needs a national champion in the banking sector.

Combined the banks would have one fifth of Germany's High Street banking business and control €1.8 trillion of assets, such as loans and investments.

Germany narrowly avoids recession

"What is important to me is that we will only pursue options that make economic sense, building on the progress we made in 2018," chief executive Christian Sewing said in a letter to employees.

Deutsche Bank has been struggling to generate growth and has been hampered by losses at its US investment banking operations.

Commerzbank has also found it difficult to grow.

Both banks are facing an economic slowdown in the Eurozone and in Germany where, at the end of last year, the economy narrowly avoided falling into recession.

Critics of the tie-up say that combining two struggling banks would just create one large bank with problems.

Also, the deal faces opposition from unions who fear that more than 10,000 jobs could be cut if a merger is agreed.--BBC

M&S plans big store shift towards weekly food shop

Marks and Spencer is planning a big shift towards food at its stores, the retailer has said.

It said it wanted to target the weekly family shop by having more stores that offer its full range of food.

At the moment, only around 12 of its stores offer all 6,500 of its food products.

The plan is to convert more space in existing stores to food, with new stores better designed and located for customers who want to do food shopping.

In a letter to suppliers, M&S said it was not getting its line of food products "in front of enough customers" - leaving shoppers assuming that they do not have a full range.

"This must change, and it will. The full range will go online with Ocado and we are starting a store renewal programme that will get more products in front of more customers with bigger, better M&S Food Halls in new and existing sites," the letter said.

The M&S new strategy was first reported by the Mail on Sunday.

M&S to start home delivery next year

M&S announces 100 stores to close

The move ties in with a recent deal with Ocado, under which Ocado will offer the full M&S product line for home delivery.

When the deal was announced, critics said that M&S shoppers did not spend enough on each shop to justify an online delivery.

At the moment, M&S shoppers spend an average of £13 on each shop, while Ocado averages just over £100 per shop.

However, M&S thinks that if shoppers can access the full range of goods they are likely to buy more.

Larger shops will help to make customers aware of those products.

Store mix

M&S already has a chain of convenience stores branded Simply Food.

But they are too small to stock the company's full line of food products.

A store would need to devote around 12,000 sq ft to holding the full line of M&S food products. Simply Food stores are typically around 7,000 sq ft.

Last May, the retailer announced that it would close 100 stores.

Under that plan the retailer said it wanted fewer, larger clothing and homeware stores in better locations.

In total there are 1,043 M&S stores. Of those 729 are Simply Food outlets, the other 314 are stores selling clothes and food.--BBC

Eurostar tells customers 'don't travel'

Eurostar has told passengers only to travel from Paris to London "if absolutely necessary".

Its services have been hit by delays with long queues due to industrial action by French customs officers.

Four trains were cancelled on Sunday. The firm has also cancelled three trains on Monday, two on Tuesday and three on Wednesday.

The company says tickets can be changed free of charge, or affected passengers can claim refunds.

"We recommend not to travel unless absolutely necessary, " Eurostar advised passengers on its website.

"All Eurostar trains are experiencing delays and long queues for journeys from Paris Nord due to industrial action by French customs until March 19th.

"These delays impact our planned timetables and cause subsequent cancellations," the firm said.

Customs officers are demanding higher pay and better working conditions.

They also want more staff which they say will be needed after Brexit, to help process British citizens who will no longer have European Union passports.

The industrial action is due to last until 19 March.

Brexit and holidays: What do I need to know?

Passengers have been complaining on social media of long queues in Paris.

Catherine Hope tweeted that it had taken her four-and-a-half hours to clear all the queues.

Another passenger said they had waited for four hours.

Eurostar says the delays are averaging at two hours and they expect similar delays on Monday.

Last week, French unions representing around 17,000 customs workers rejected a government offer of a €14m pay boost, saying it was not enough.--BBC

Levi's ride 1980s denim trend back to stock market relisting

When it comes to style, there are certain things that should arguably be left in a land that fashion forgot.

Leg warmers, deely bobbers (fluffy sort of antennae on a headband) and jumpsuits for men don't belong in a civilised society.

The same could be said for 1980s denim which spawned such trends as stone-wash jeans.

But a new generation is rediscovering denim from that era and Levi Strauss is riding the wave of popularity all the way back to the stock market.

The 166 year-old US company will soon be relisting its shares on the New York Stock Exchange after it left the public market in 1985.

It was thought at that time that going private would allow Levi's to concentrate on the longer term as opposed to being a public company which must tell its shareholders the state of its business every three months.

It was the same year that Levi's aired a game-changing commercial showing a young model, Nick Kamen, in a 1950s-style launderette stripping off his 501 jeans and loading them into a washing machine to the strains of Marvin Gaye's "I heard it through the grapevine". 

Since its heyday in the late 1980s and early 1990s, however, denim has had a rocky ride.

Robert Burke, a retail and fashion consultant, says: "The jean industry in general had been heavily affected by how strong the athleisure and athletic market had become.

"Leggings, yoga pants, things like that had been chipping away and in many ways replaced the jean business as a category."

Levi Strauss emigrated to the US from Germany in 1853 when he was 18

Relaxed

That trend is turning around.

In 2017-18, global sales of jeans grew by 4.3%, according to Euromonitor International, a market research provider.

The change is most pronounced in the US where, after four years of falling demand, sales rose by 2.2%.

And Levi's financials reflect that.

In its US Securities and Exchange Commission filing regarding the upcoming flotation, Levi's turnover has grown from $4.4bn four years ago to $5.5bn.

Alex Badia, style director at fashion industry magazine WWD, says that the 1980s, as well as the early 1990s, are eras that people are looking back to and says "we have been seeing a sort of return to what we call the relaxed denim".

He says: "In the fashion industry, after years of distressed, extremely tight-fitting jeans the relaxed jeans look really new."

Eric Schiffer, chairman and chief executive at investment firm Patriarch Organisation, says the trend is "being driven by millennials who want to touch history, people like you and me who want to step back in time and, you could argue, Generation Z, who are fascinated by that time and its music".

'Mom jeans'

But, like the plot of a bad horror film, bringing something back from the dead has its consequences and in this case, it is the "mom" and the "dad" jean.

Spotted on the likes of models Bella Hadid, Kendall Jenner and Hailey Baldwin, the "mom" jean is typically high-waisted with a relax leg. The paternal version is also high-waisted and shapeless.

Mr Burke says: "It started really with models and influencers wearing them, particularly fashion models and then it started gaining more and more visibility.

"It fits into a whole kind of mum/dad trend which also includes really big bulky, ugly sneakers. We say "ugly" tongue in cheek but it resonated because for the younger consumer it is new."

While revisiting this style may not appeal to those who lived through it the first time around, Simeon Siegel, senior retail analyst at Nomura, says it is the duty of a new generation to annoy the one that came before.

"Fashion has to cause gut reaction," he says. "And if a certain decade is not abhorred by a prior decade's fashion it means they did something wrong."

I'll be there in blue... the "Friends" bunch - and the new jeans buyers - like their denim in a lighter hue

The 'Levi's blue'

The 501, however, is perhaps a cut above "ugly" denim rivals. The jean has been around for 146 years and has been left virtually unchanged

Mr Burke says: "There are few iconic brands whether it be a Hanes white t-shirt or a Levi 501. They may not be fashion at different times but they're iconic and staples and that's where the 501 fits in."

Mr Badia says for the younger people who are discovering the 501, there are also different washes that are coming back.

He explains: "If you remember the show 'Friends' or even '90210' - if you see the 90210 posters, they are all posing in jeans and white shirts.

"If you think of Rachel or Monica or any of the characters in 'Friends', a lot of the times they were wearing jeans and a lot of the jeans they were wearing were basically these early 1990s washes that are a 501 but are a lighter blue, not the dark blue.

"That is the blue that is happening. That is the Levi's blue, that is the 501 blue."

It seems, therefore, that now is the perfect time for Levi's to launch its shares again on the stock market.

"There is a lot of enthusiasm behind Levi's," says Mr Schiffer. "And that is one of the rationales for delivering on the [share sale]."

However, he believes that Levi's is only a short or medium-term investment because, like everything in fashion, denim's popularity will eventually wane again.

For now, Mr Burke reckons Levi's is in a good place.

It is becoming more visible - last year it built 74 stores in 2018 including a 17,000 square foot store in New York's Times Square - and he says the company had the foresight to jump on the denim "bandwagon" that started with the "mom" jeans.

"They were the original," he says: "So it just makes sense to monetise that and to grow the business simultaneously."

Acid wash

For now, there is still more to come from this bygone fashion era.

Actress Shailene Woodley recently caused a stir when she wore a pair of high-waisted acid wash jeans designed by Balmain.

WWD's Mr Badia says that the trend on the catwalk hasn't become ubiquitous, yet: "I haven't seen it trickle down at that level like it did back in the 1980s but it wouldn't surprise me.

"We have seen some designers going for it but we haven't seen it yet at the mass market."

He reckons that "we are going to see more acid washes… at the same time tie-dye is happening".

But if readers of a certain vintage are contemplating taking a sartorial trip down memory lane, Mr Badia has a word of warning.

"You need to remember always there is a rule of thumb in fashion when you see a trend coming back - you've already worn it once, you cannot wear it twice."--BBC

Boeing: What next after the 737 Max disasters?

Two fatal accidents involving Boeing 737 Max jets have left the plane maker rushing to restore confidence in the safety of its fastest-selling fleet.

As investigators work to determine the cause of the tragedies, the US regulator said the aircraft would be grounded until at least May.

Boeing has halted 737 Max deliveries and some airlines say they will demand compensation.

Some customers have signalled they could back away from orders.

But analysts say the long-term impact on the firm will depend on the outcome of the investigation.

Many countries grounded the plane after an Ethiopian Airlines 737 Max 8 flight crashed on Sunday minutes after take-off, killing 157 people on board. In October, 189 people were killed in a Lion Air crash involving the same model.

US regulators say the 737 Max, the fastest-selling plane in Boeing's history, is now likely to be grounded at least until May. The aircraft is a new model, a heavily re-engineered version of its workhorse 737. Deliveries to customers only began in 2017.

Globally, about 370 are in operation but the plane maker has close to 5,000 on order.

Teal Group aviation analyst Richard Aboulafia said although the current 737 Max fleet is relatively small "the future revenue stream is enormously important" to Boeing

Each plane on order was priced at between $45-50m, Mr Aboulafia said, and Boeing has "taken deposits worth a small portion of many of the orders received".

What will happen to 737 Max orders?

Boeing has temporarily halted deliveries of the new aircraft, following the decision by the US Federal Aviation Administration and other regulators to prevent it from operating. It will continue to build the planes, however, and currently has no plans to slow production.

Nevertheless, some customers have indicated they could scrap their orders.

Garuda Indonesia has said it may cancel its order for 20 planes, while VietJet said its recent $25bn order depended on the outcome of the investigation. Kenya Airways is also reportedly considering a switch to rival manufacturer Airbus.

Boeing jostles with the European giant to be the world's biggest plane manufacturer. Airbus's A320 Neo is the direct rival to Boeing's embattled 737 Max. But swapping from one manufacturer to the other is unlikely to be a simple process.

Both companies have bulging order books, and according to Greg Waldron, Asia managing editor of Flight Global, that means any new orders could take years to fulfil: "You can't just switch to Airbus, because Airbus has a backlog that runs for years as well."

Mr Waldron believes the size of Boeing's 737 Max order book means the jet is not just significant to the plane maker, but is "very important for the future of the industry as well".

There are other reasons, too, why moving from one manufacturer to another may be impractical.

"There's pilot training to consider as well," says Peter Morris, chief economist at the aviation consultancy Ascend. "You tend to have Boeing pilots and Airbus pilots." The instruments and control systems used by the two manufacturers are different, and pilots need to be certified to fly different aircraft, so it isn't as simple as getting out of one aircraft and starting to fly another.

However, if the 737 Max remains grounded for an extended period, some customers may see their deliveries delayed. That could mean renegotiation of orders, which could well hit Boeing's earnings.

What else have airlines said?

Some carriers say they will demand compensation.

Norwegian Air and Czech carrier Smartwings are among the airlines reportedly calling for Boeing to pay up.

But Teal Group's Mr Aboulafia said Boeing will be able to absorb any compensation costs.

He argues the "worst-case scenario" for damages would be in the range of "hundreds of millions of dollars".

"Since the company earns many billions of dollars per year, that's not a major threat."

What impact will all this have on airlines?

Because there are relatively few 737 Max in service, and the grounding has not occurred during a peak period for the industry, the impact has so far been relatively muted. Some carriers have been able to reorganise their fleets to cover for the missing aircraft.

Others have experienced some disruption. Norwegian, for example, says it has been combining services on its transatlantic routes, using a single larger Boeing 787 to replace two 737 Max.

This has left some passengers facing bus journeys to their final destination, but has avoided cancellations.

If the 737 Max remains grounded for an extended period, and deliveries of new aircraft remain suspended, things will become more complex.

During busy periods, airlines do have the option of leasing planes from specialist companies. A typical "wet lease", in which a plane is provided "ready to use" with crew, maintenance and insurance provided currently costs $3000-3300 per hour for an older 737-800, according to Ascend.

It is also possible to lease the aircraft on its own, for between $230,000-330,000 per month.

Airlines which had been expecting new aircraft to join their fleets may have to keep planes scheduled for retirement in service for a bit longer, or bring spare aircraft out of storage. While this is unlikely to trigger any safety concerns, it will add to their costs.

One of the main attractions of the 737 Max is that it is considerably more fuel efficient to operate than its predecessors. "Airlines may well face higher costs," says Peter Morris.

"They will then have to choose whether to absorb those costs or pass them on to passengers. In the end, prices will probably have to rise."

What has it cost Boeing so far?

Shares have lost around 10% since the crash, wiping about $25bn off its market value.

The longer-term impact will come down to the cause of the crash. A software fix may prove less costly and quicker to fix than a major design flaw, analysts say.

Mr Aboulafia says if the second tragedy was caused by the same issues as the Lion Air disaster, it will require "aggressive implementation of a software patch" for systems along with crew training on possible system failures.

"None of this would be terribly expensive or time consuming, probably a matter of a few months, perhaps less."

Ethiopian Airlines probe: What do we know?

But Boeing will still face challenges in rebuilding passenger confidence in the brand. Flight Global's Mr Waldron says the firm's reputation has already been hard-hit.

"Having your top-selling brand crash twice in a very short period is obviously very bad for their reputation. The fact that it has spread so widely on social media... is difficult for them.

"It should recover, but it depends on how it resolves."

The 737 Max is not the first mainstream aircraft to be prevented from flying for safety reasons, although it only happens rarely.

Boeing's own 787 was grounded in 2013 because of battery fires, for example. It was rapidly modified, returned to service and continues to notch up healthy orders.

The McDonnell Douglas DC-10 had a poor safety record in its early days, and was suspended from operating in 1979 following an accident that killed 271 people.

It remains the deadliest accident in US aviation history, but after a redesign it was allowed to resume flying - and remained in commercial service until 2014.--BBC

Volkswagen and former boss face US lawsuit over Dieselgate

The US is suing Volkswagen, accusing the German carmaker of "massive fraud" over the diesel emissions scandal.

The Securities and Exchange Commission (SEC) claims the firm misled investors by issuing billions of dollars worth of bonds and securities, without disclosing that it had cheated emissions tests.

Volkswagen's former chief executive Martin Winterkorn is also being sued.

The company said it would contest the SEC lawsuit vigorously.

VW first admitted in September 2015 that it had used illegal software to cheat US emissions tests. But between April 2014 and May 2015 the carmaker sold $13bn (£10bn) of bonds and securities to US investors, at a time when executives were already aware that illegal software had been installed to manipulate emissions tests, according to the SEC's suit.

Volkswagen boss apologises for Nazi gaffe

Ex-VW boss charged over diesel scandal

The SEC said that as a result, Volkswagen "reaped hundreds of millions of dollars in benefit by issuing the securities at more attractive rates for the company".

When the scandal was uncovered, VW's share price sank nearly 40%.

The firm "repeatedly lied to and misled United States investors, consumers, and regulators as part of an illegal scheme to sell its purportedly 'clean diesel' cars and billions of dollars of corporate bonds and other securities in the United States," the SEC added.

The suit seeks to bar Mr Winterkorn, who resigned when the scandal became public, from serving as an officer or director of a public US company. He has been charged in the US with conspiring to cover up the emissions cheating scandal. However Germany does not extradite its own citizens.

The suit also seeks to recover "ill-gotten gains" along with civil penalties and interest.

"We're not yet through the diesel scandal, it will probably still take years... and it's a burden for us." That is what VW's chief executive Herbert Diess had to say when I spoke to him at the Geneva Motor Show last week.

We were discussing the raft of legal cases which VW is still facing around the world - and to which it is still having to dedicate substantial resources

It has already paid out more than $30bn in the US alone, in fines and other penalties, and to buy back affected vehicles.

The SEC's lawsuit shows that the US authorities are not prepared to let the company off the hook just yet.

It remains under pressure in Europe too - where it is still facing a waveof consumer lawsuits over its refusal to pay compensation.

Ironically, as Mr Diess acknowledged, the scandal forced Volkswagen down a path which may help it become a leader in more environmentally-friendly technologies.

Volkswagen has already agreed to pay more than $25bn in the US over the emissions scandal including criminal and civil fines.

The firm said in a statement the SEC complaint was "legally and factually flawed".

It said the securities in question had been sold "only to sophisticated investors who were not harmed and received all payments of interest and principal in full and on time" and said that Mr Winterkorn had played no part in the sales of those securities.

The carmaker is already defending its actions in court in Germany, where investors are pursuing €9.26bn (£8.2bn) in damages, arguing the company should have come clean earlier about the emissions tests cheating. That case is expected to last until later this year.--BBC

Sir Philip Green's Arcadia Group seeks to to cut costs

Sir Philip Green is working on a restructuring of his Arcadia Group retail empire that includes Topshop and Miss Selfridge.

The billionaire's company said in a statement that it was suffering "an exceptionally challenging retail market" in the UK.

Arcadia was therefore "exploring options" to bolster the business.

Job cuts and store closures are likely, but they would not be "significant", Arcadia insisted.

There were reports on Friday that Sir Philip was considering a company voluntary arrangement (CVA), a form of insolvency that would enable him to seek rent cuts and close unwanted stores.

Arcadia said that it was issuing its statement in response to that media speculation, but made no mention about a CVA nor potential sales.

"Within an exceptionally challenging retail market and given the continued pressures that are specific to the UK high street we are exploring several options to enable the business to operate in a more efficient manner," Arcadia said.

"None of the options being explored involve a significant number of redundancies or store closures. The business continues to operate as usual including all payments being made to suppliers as normal," it added.

CVAs can be used to cut shop rent bills, and other costs, but they are controversial and when House of Fraser used the arrangement it sparked a huge legal battle with landlords.

News that one of the UK's biggest fashion retail groups is struggling comes after a string of High Street names hit financial trouble.

Debenhams, New Look, Mothercare, House of Fraser, HMV and LK Bennett are among a roll-call of retailers hit by weak consumer confidence, higher costs, and the growth of online rivals.

Philip Green 'paid harassment accuser £1m'

Karren Brady quits Philip Green's empire

Philip Green's Topshop facing boycott

Many retail experts believe Topshop, Sir Philip's prize asset, has fallen out of favour with today's young consumers. Arcadia also owns Evans and Wallis.

Last year Sir Philip was embroiled in claims - strongly denied - of bullying and inappropriate behaviour.

He was also criticised over the demise of department store chain BHS, which, after he sold it for just £1, collapsed a year later.

The reports earlier that Arcadia was working on turnaround plans suggested that formal talks with shop landlords were expected to begin in the next few weeks.

It emerged in January that the business had hired advisers at Deloitte to explore a restructuring, prompted by a decline in sales and profits.

The news comes just weeks after Baroness Karren Brady resigned from Arcadia's parent company Taveta, following the emergence of harassment allegations against Sir Philip.--BBC

Interserve: UK contractor completes fast-track sale

Control of one of Britain's biggest government contractors, Interserve, has moved to a new company after administrators were appointed.

It comes after shareholders rejected a rescue deal for the company, which has 45,000 UK staff, and 68,000 globally.

Under a pre-arranged agreement, administrators EY were installed and the assets moved immediately to a group controlled by Interserve's lenders.

Interserve insisted that the deal would protect services and jobs.

The company cleans schools and hospitals, runs catering and probation services, and manages construction projects.

On Friday, shareholders voted 59.38% against a rescue plan to address Interserve's mounting debt pile.

The plan would have seen their stake reduced to just 5%, with lenders being handed the lion's share of the business.

But after the vote, Interserve said that "in the absence of any viable alternative" rescue plan it would formally apply to the High Court to go into administration.

EY was appointed under a so-called pre-pack administration, an insolvency procedure in which a company arranges to move its assets to a another owner before administrators are officially appointed.

It meant that Interserve could avoid a Carillion-style collapse. However, investors have seen the value of their shares wiped out under the financial restructuring.

The lenders who are now in control of Interserve Group include banks RBS and HSBC, and investors Emerald Asset Management and Davidson Kempner Capital.

In a statement, EY administrator Hunter Kelly said: "This transaction secured the jobs of 68,000 employees, the majority of whom work in the UK, as well as ensuring there was no disruption to the vital public services that Interserve provides to the UK Government."

Debbie White, chief executive of Interserve Group, said: "Interserve is fundamentally a strong business and with a competitive financial platform in place we see significant opportunities ahead as a best-in-class partner to the public and private sector."

A spokesman for the Cabinet Office said: "We welcome this announcement. It brings the company the stability required for it to compete for future business and continue to deliver good value public services for the taxpayer."

Interserve accumulated debt after construction project delays and a failed energy-from-waste project in Derby and Glasgow.

Skip Twitter post by @BBCSimonJack

Interserve in administration after rescue plan voted down. 2 American hedge funds with 35% of shares voted against. 95% of all others who voted - voted FOR the rescue deal Over 16k small shareholders are totally wiped out. Company insists that pre arranged sale = biz as usual...>

Concern for jobs

However, the GMB union said earlier on Friday that Interserve's problems, which come after the failure of Carillion last year, showed it was "time to turn the tide on the disastrous experiment" of outsourcing public services.

Kevin Brandstatter, the union's national officer, said: "Ministers have learnt absolutely nothing from the Carillion fiasco and are hell-bent on outsourcing public sector contracts.

"Shambolic mismanagement is putting jobs put on the line and services in jeopardy. Our public services can't go on like this."

Although Interserve's contracts are expected to continue, there is still concern for jobs in the supply chain.

The National Federation of Builders (NFB) said there would be thousands of workers wondering whether they still have a job, and called for changes in the way the government hands out contracts to big national companies.

Richard Beresford, chief executive of the NFB, said it was time to reform "the procurement process from its foundations to ensure that more regional contractors can compete and win work".

In addition to helping smaller companies, it would "spread risk across fiscally responsible businesses who reinvest profits and are not bound by shareholders," he said.

What is Interserve?

The outsourcing firm is one of the UK's largest public services providers. The firm started in dredging and construction, and from there has diversified into a wide range of services, such as healthcare and catering, for clients in government and industry.

It sells services, including probation, cleaning and healthcare, and is involved in construction projects.

Interserve is the largest provider of probation services in England and Wales, supervising about 40,000 "medium-low risk offenders" for the Ministry of Justice.

Its infrastructure projects include improving the M5's Junction 6 near Worcester, refurbishing the Rotherham Interchange bus station in Yorkshire, and upgrading sewers and water pipes for Northumbrian Water.

Hospital contracts include a a £35m contract at King George Hospital in east London for cleaning, security, meals, waste management and maintenance.--BBC

INVESTORS DIARY 2019

Company

Event

Venue

Date & Time

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 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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