Major International Business Headlines Brief::: 03 May 2019

[Bulls n Bears]

 <http://www.bulls.co.zw/> Bulls.co.zw        <mailto:bulls at bulls.co.zw>
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::: 03 May 2019

 


 

 


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

 


 

 


 

 

*  South African government says Chinese loan to Eskom not in jeopardy

*  Angolan exchange set for first IPOs in 2019: bourse CEO

*  Kenya to lower fiscal deficit to 5.6 pct in 2019/20 fiscal year

*  Ascendis sells Bioscience business for $33 mln

*  Absa PMI rises in April as blackout fears ease

*  Dutch court to hear case vs Shell brought by widows of hanged Nigeria
activists

*  Gambia signs oil exploration deal with BP for A1 block

*  Zambia's 2018 fiscal deficit above forecast at 7.5 pct of GDP

*  Insys Therapeutics founder John Kapoor convicted in US opioid case

*  HSBC first quarter profit jumps as costs drop

*  Beyond Meat: Shares in vegan burger company sizzle 160%

*  Trump pick Stephen Moore drops out of Federal Reserve race

*  Turner Prize drops drops Stagecoach sponsorship

*  Bank warns of 'more frequent' rate increases than expected

*  Barclays sees off Edward Bramson as rebel investor concedes defeat

 

 


 <mailto:info at bulls.co.zw> 

 


 

                                      


South African government says Chinese loan to Eskom not in jeopardy

JOHANNESBURG (Reuters) - South Africa’s public enterprises ministry on
Thursday said that a China Development Bank (CDB) loan to struggling state
power company Eskom was not in jeopardy.

 

Eskom had expected to draw down 7 billion rand ($481 million) from a $2.5
billion CDB loan facility by late March, but South Africa’s finance ministry
said in a report to parliament last month that the drawdown had been
delayed.

 

The South African government and Eskom are working to ensure the transfer of
funds from CDB to Eskom, the public enterprises ministry said in a
statement.

 

($1 = 14.5500 rand)

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 



Angolan exchange set for first IPOs in 2019: bourse CEO

LUANDA (Reuters) - Angola, Africa’s second largest oil producer, should see
its first ever initial public offerings this year as the country establishes
a domestic stock exchange with the privatisation of multiple state
companies, the bourse’s head said on Thursday.

 

Patricio Vilar, chief executive officer of the Bodiva exchange, said he
expected two IPOs to take place this year with a larger, unspecified, number
set for 2020. He declined to give the names of the companies looking to
list.

 

“There are very clear signals that there will be initial public offerings
this year,” Vilar told a news conference at the bourse’s headquarters in
Luanda.

 

Angola has previously said it is looking to privatise as many as 74 state
companies in an effort to attract foreign investment and revitalise an
economy that was plunged into a tailspin after the oil price fell in 2014.

 

The southern African country has suffered three consecutive years of
recession through 2018.

 

Vilar said there were also five private companies that had shown concrete
interest in an Angolan IPO.

 

The Bodiva already serves as an exchange for the primary and secondary
trading of Angolan state debt, but has not previously operated a stock
exchange.

 

“We think that with the advent of the coming privatisations of well known
companies we will see a rapid change in the way companies finance
themselves,” Vilar said, adding he expects a shift from state banks to the
private sector and capital markets as Angola looks to open up its economy
and improve transparency.

 

 

 

Kenya to lower fiscal deficit to 5.6 pct in 2019/20 fiscal year

NAIROBI (Reuters) - Kenya will cut its budget deficit to 5.6 percent of GDP
in its 2019/20 (July-June) fiscal year from a revised 6.1 percent of GDP in
this fiscal year, the Treasury said in a draft budget summary sent to
parliament this week.

 

The East African nation will borrow 324.3 billion shillings ($3.21 billion),
equivalent to 3.0 percent of GDP, from abroad during the fiscal year and
289.2 bln shillings, or 2.7 percent of GDP, from the local market, the
document showed.

 

The government aims to reduce the overall budget deficit to 3.8 percent of
GDP in the 2022/23 fiscal year, the Treasury said.

 

The government has come under fire for ramping up its borrowing since 2013
to fund a range of infrastructure projects like roads.

 

The economy was likely to expand by 6.1 percent this year, from 6.3 percent
last year, the Treasury said in the budget summary, attributing that benign
forecast to stable economic fundamentals and the farming sector.

 

($1 = 101.1000 Kenyan shillings)

 

 

 

Ascendis sells Bioscience business for $33 mln

JOHANNESBURG (Reuters) - South African Health and wellness group Ascendis
Health said on Thursday it will sell three businesses within its Biosciences
division to a consortium for 480 million rand ($33 million) as part of a
strategic review.

 

Ascendis will sell the Efekto, Marltons and Afrikelp businesses to a
consortium comprising of RMB Ventures, Nedbank Private Equity and certain
members of the management of the Ascendis Biosciences division, it said in a
statement.

 

“Following our strategic business review last year the Biosciences division
was considered as non-core to the group’s strategy and was identified for
sale,” Chief Executive Thomas Thomsen said.

 

“While these Biosciences businesses are performing well, they serve a
different set of customers and require capabilities and skills that are not
core to Ascendis Health.”

 

Ascendis shares jumped nearly 8 percent after the announcement and closed up
1.58 percent at 4.50 rand.

 

Efekto manufactures and sells home and garden pesticides, fertiliser and
plant food products and Afrikelp specialises in natural growth stimulants
extracted from seaweed to improve the quality and quantity of agricultural
crops.

 

Marltons, established over 80 years ago, manufactures and distributes pet
care and pet products.

 

Thomsen said the cash proceeds from the sale will strengthen the group’s
financial position in the short-term and be used to reduce debt levels and
fund working capital.

 

Ascendis, which also has operations in Cyprus, Hungary, Romania and Spain,
said the remaining businesses in the Biosciences division, Avima and Klub
M5, may be considered for divestment in the short-to medium-term.

 

The group has been divesting non-core assets as part of a strategic review
aimed at improving cash generation, enhancing profitability and accelerating
organic growth.

 

It announced the sale of its pharmaceutical manufacturing facility in
Gauteng for 130 million rand in December. This followed the sale of its
South African sports nutrition business for 54 million rand in September.

 

In January, the group received an unsolicited offer for its Cyprus-based
generic pharmaceutical business Remedica.

 

($1 = 14.5125 rand)

 

 

 

Absa PMI rises in April as blackout fears ease

JOHANNESBURG (Reuters) - South Africa’s seasonally adjusted Absa Purchasing
Managers’ Index (PMI) rose in April, breaking a run of three consecutive
months of decline as business activity and new sales orders increased, a
survey showed on Thursday.

 

The index, which gauges manufacturing activity in Africa’s most
industrialised economy, rose to 47.2 points from 45.0 points in March, its
highest in four months but still below the 50 mark separating contraction
from expansion.

 

“The PMI remains below the neutral 50-point mark and is more or less in line
with the average recorded in the first quarter of 2019. This means that
factory conditions stabilised at a fairly depressed level at the start of
the second quarter,” Absa said in a statement.

 

The survey showed two of the sub indices increasing while the other three
fell, a reflection of lingering concerns after country-wide power cuts in
February and March and relief of stable power supply in April.

 

The lack of load shedding during the month may have supported the slight
improvement in sentiment, Absa said.

 

South Africa suffered deep power cuts earlier this year, as ailing utility
Eskom struggled with capacity constraints. Eskom has not implemented rolling
blackouts since March 23, but has warned the power system remains
vulnerable.

 

Last month government had to bring forward a bailout for the state firm,
rushing 5 billion rand ($355 million) to the utility to avert a default.

 

 

 

Dutch court to hear case vs Shell brought by widows of hanged Nigeria
activists

THE HAGUE (Reuters) - A Dutch court said on Wednesday it has jurisdiction to
hear a damages suit brought against Royal Dutch Shell by four widows of
activists executed by the Nigerian government in 1995.

 

In a preliminary decision, judges at the Hague District Court said they
would allow the suit to go forward, a rare win in a decades-long legal
fight, though the claimants must still prove their case. Shell denies
wrongdoing or responsibility.

 

“The court considers itself capable” of hearing the case, said presiding
judge Larissa Alwin, reading the decision of a three-judge panel. “This
procedure will continue.”

 

Dutch courts do not award large punitive damages claims, though the case has
the potential to embarrass Shell and provide a measure of comfort for the
activists’ families if it finds the company bears responsibility in their
deaths.

 

The men executed were a group that became known as the “Ogoni Nine” -
activists who included writer Ken Saro-Wiwa. They had protested against
Shell’s exploitation of the Niger Delta until they were arrested and hanged
after a trial widely seen as flawed.

 

Relatives have sought to hold the Anglo-Dutch energy company partially
responsible in foreign courts, after exhausting legal possibilities in
Nigeria.

 

Shell, headquartered in the Hague, paid $15.5 million to victims’ families
in the United States in a 2009 settlement in which it also denied any
responsibility or wrongdoing. The U.S. Supreme Court rejected U.S.
jurisdiction in 2013.

 

“I am glad that the (Dutch) court has found it has jurisdiction,” said lead
plaintiff Esther Kiobel, whose husband Barinem Kiobel was among the executed
activists.

 

“My husband was killed like a criminal. I want him to be exonerated.”

 

Judge Alwin cautioned that the three-judge panel did not agree with
assertions by the widows that Shell should have done more to prevent their
husbands’ executions.

 

But she ordered the company to turn over documents that could help the
claimants’ case, including any evidence that Shell might have made payments
to people who gave false information to Nigerian law-enforcement officials.

 

“We continue to deny all the allegations in the strongest possible terms,”
Shell representative Igo Weli said.

 

“Shell was not responsible for what happened. Shell actually made an appeal
for clemency, but sadly this was not heard.”

 

Weli, who works for Shell’s Nigerian subsidiary, said the company would give
the claimants access to internal documents as ordered.

 

No date has yet been set for a next hearing.

 

 

 

Gambia signs oil exploration deal with BP for A1 block

BANJUL (Reuters) - Gambia’s government said on Tuesday it had signed a
contract with BP to explore oil and gas off its coast.

 

Minister of Petroleum and Energy Fafa Sanyang said BP would first carry out
an environmental impact assessment at the A1 offshore block.

 

“After all that they will work on a two-year programme for drilling,”
Sanyang told Reuters. “After a specific time, they will work on the
financial terms.”

 

BP did not immediately respond to a request for comment.

 

The A1 block was one of two that President Adama Barrow’s government
stripped from Norwegian-listed African Petroleum Corporation in 2017, saying
the licenses had expired.

 

The company disputed that and launched arbitration proceedings in October
2017. No resolution has been announced in the case.

 

The two blocks are thought to contain up to 3 billion barrels of oil and lie
next to licences in neighbouring Senegal, where big discoveries have been
made.

 

Barrow’s government is trying to build up Gambia’s oil and gas sector as a
way of reviving an economy gutted by more than two decades of autocratic
rule under former President Yahya Jammeh, who fled the country in 2017.

 

Barrow’s office said in a brief statement on Tuesday that he had met BP
representatives at the presidential palace but provided no further details.

 

 

 

 

Zambia's 2018 fiscal deficit above forecast at 7.5 pct of GDP

LUSAKA (Reuters) - Zambia’s 2018 fiscal deficit stood at 7.5 percent of
gross domestic product (GDP), higher than an earlier government projection
of around 7 percent, Finance Minister Margaret Mwanakatwe said on Wednesday.

 

Mwanakatwe said in a statement after meeting an International Monetary Fund
(IMF) delegation that measures to keep the deficit within the 2019 budget
target of 6.5 percent of GDP would be undertaken.

 

“In this regard control measures around debt accumulation and halting
arrears build-up will be implemented expeditiously,” she said.

 

Zambia’s external debt was at $10.05 billion at the end of last year, up
from $9.51 billion at the end of the third quarter of the same year,
Mwanakatwe said.

 

The southern African state’s total debt as a percentage of GDP was 73
percent, Mwanakatwe said, adding that the government and IMF delegation
agreed on the data’s accuracy.

 

The IMF rejected Zambia’s borrowing plans in February last year, saying they
risked making its debt load harder to sustain.

 

 

 

Insys Therapeutics founder John Kapoor convicted in US opioid case

The founder of Insys Therapeutics John Kapoor has become the first
pharmaceutical boss to be convicted in a case linked to the US opioid
crisis.

 

A Boston jury found Kapoor and four colleagues conspired to bribe doctors to
prescribe addictive painkillers, often to patients who didn't need them.

 

The former billionaire was found guilty of racketeering conspiracy for his
role in a scheme which also misled insurers.

 

Tens of thousands of deaths have been caused by opioid overdoses in the US.

 

Indian-born Kapoor founded drugmaker Insys Therapeutics in 1990 and built it
into a multi-billion dollar company.

 

The jury found Kapoor had also misled medical insurance companies about
patients' need for the painkillers in order to boost sales of the firm's
fentanyl spray, Subsys.

 

Fentanyl is estimated up to one 100 times stronger than morphine and is
usually only prescribed for severe pain arising in cases like treatment for
cancer.

 

What are opioids and what are the risks?

US schools prepare for overdoses

The court heard that Kapoor - who was arrested in 2017 on the same day
President Donald Trump declared the opioid crisis a "national emergency" -
ran a scheme that paid bribes to doctors to speak at fake marketing events
to promote Subsys.

 

During the 10-week trial, jurors were also shown a rap video made by Insys
for its employees on ways to boost sales of Subsys.

 

Kapoor and his co-defendants - Michael Gurry, Richard Simon, Sunrise Lee and
Joseph Rowan - face up to 20 years in prison.

 

A statement from Kapoor's lawyer said he was "disappointed" with the
verdict. The men had denied the charges and have indicated that they plan to
appeal.

 

Forbes listed Kapoor's net worth as $1.8bn (£1.4bn) in 2018, before dropping
off the publication's billionaire rankings this year.

 

His conviction marks a victory for US government efforts to target companies
seen to have accelerated the opioid crisis.

 

The US Centres for Disease Control and Prevention has said that opioids - a
class of drug which includes everything from heroin to legal painkillers -
were involved in almost 48,000 deaths in 2017.

 

The epidemic started with legally prescribed painkillers, including Percocet
and OxyContin. It intensified as these were diverted to the black market.

 

There has also been a sharp rise in the use of illegal opioids including
heroin, while many street drugs are laced with powerful opioids such as
Fentanyl, increasing the risk of an overdose.--BBC

 

 

 

HSBC first quarter profit jumps as costs drop

HSBC has reported a 31% jump in pre-tax profits for the first quarter as it
cut costs and incomes from Asia grew.

 

Europe's largest bank made $6.2bn (£4.8bn) before tax in the three months to
March, up from $4.8bn in the same period a year earlier.

 

It beat the $5.58bn average of analysts' estimates compiled by HSBC.

 

Chief executive John Flint said the results were "encouraging" against a
backdrop of global economic uncertainty.

 

Shares climbed 2.3% in Hong Kong trading after the earnings release.

 

In a statement, HSBC said growth in Asia was strong during the first quarter
and reported a 7% rise in revenue for the period, compared with a year
earlier.

 

The bank makes three-quarters of its profits in Asia.

 

The earnings release also showed HSBC had made progress in efforts to cut
costs, with operating expenses down 12% during the first quarter. Earnings
per share rose 40% to 21 cents.

 

HSBC has moved to rein in spending while trying to boost investment in
retail banking and wealth management.

 

"These are an encouraging set of results, particularly in the context of
heightened economic uncertainty globally," Mr Flint.

 

The bank said its "US turnaround" was progressing but "remains our most
challenging strategic priority".

 

Earlier this year, HSBC warned profits would be hit by a slowdown in China.

 

In 2018, the lender said it would invest up to $17bn over three years in
areas including in China and technology, without affecting
profitability.--BBC

 

 

 

Beyond Meat: Shares in vegan burger company sizzle 160%

Shares of vegan burger maker Beyond Meat soared on their Wall Street debut
as investors bet on the growing popularity of plant-based foods.

 

The stock closed up 163% on the first day of trading, valuing the California
company at close to $3.8bn.

 

Beyond Meat's shares were priced at $25 each at the start of trading, but
touched $72 during the trading day before closing at $65.75.

 

The company has aggressive plans to expand sales outside the US.

 

Money raised from the listing will give Beyond Meat the firepower to compete
with other rivals in the increasingly crowded fake meat market, which
includes Silicon Valley start-up Impossible Foods.

 

Speaking at the stock market launch on the Nasdaq exchange, Beyond Meat
founder and chief executive Ethan Brown called plant-based meat an "enormous
opportunity for economic growth in rural America and throughout the world".

 

'Nationwide sales expected'

He said: "We understand the composition of meat, we understand the
architecture and year after year we collapse the gaps between our product
and animal protein."

 

Beyond Meat counts actor Leonardo DiCaprio and Microsoft founder Bill Gates
among its investors.

 

Tyson Foods, the biggest US meat processor, owned a 6.5% stake in Beyond
Meat, but last week said it sold its holding, as it looks to develop its own
line of alternative protein products.

 

Burger King and Impossible Foods last month started selling their vegan
burger Impossible Whopper in 59 stores in and around St. Louis, Missouri,
with nationwide sales expected by the end of the year.

 

Beyond Meat creates substitutes for meat by using ingredients that mimic the
composition of animal-based meat, like proteins from peas, fava beans and
soy.

 

About 70% of the company's revenues are generated by its flagship Beyond
Burger patties, and it also sells imitation sausages and vegan ground beef.

 

Beyond Meat, which has yet to make a profit, has started selling products in
the UK as more supermarkets fill their shelves with meat alternatives.
Beyond Burger was originally due to be introduced in the UK at 350 Tesco
stores last August, but that was delayed by three months because of supply
issues.

 

Waitrose started a dedicated vegan section in more than 130 shops last year
and Iceland reported sales of its plant-based foods rising by 10% in a year.

 

Research conducted by the Vegan Society in 2016 estimated there were around
540,000 vegans across the UK, compared with around 150,000 in 2006.

 

In 2018, some $50m of Beyond Meat's revenues came from retail sales,
including at Amazon's Whole Foods Market and Kroger Co supermarkets, while
some $37m was generated at restaurants.

 

According to regulatory documents ahead of the stock market debut, Beyond
Meat's net loss narrowed marginally to $29.9m in the year ended 31 December,
from $30.4m a year earlier. Net revenue more than doubled to $87.9m in the
same period.--BBC

 

 

 

 

Trump pick Stephen Moore drops out of Federal Reserve race

Another of Donald Trump's picks for a seat on the Federal Reserve has
dropped out of the running following fierce criticism of his views.

 

The US president tweeted that Stephen Moore, "a great pro-growth economist
and a truly fine person, has decided to withdraw from the Fed process".

 

It follows weeks of attacks on his changing opinions on monetary policy and
sexist comments about women.

 

Another Trump pick, Herman Cain, withdrew from consideration in April.

 

Mr Trump had asked Mr Moore, 59, to fill one of two vacant positions on the
central bank's seven-member board, but had not formally nominated him.

 

But some lawmakers feared the conservative pundit, a Trump loyalist who
supported tax cuts, would threaten the Fed's independence.

 

There were also concerns about his views on interest-rate policy, given as
recently as September 2015 he called for eliminating the US central bank.

 

Trump warns Fed against 'another mistake'

Herman Cain withdraws Federal Reserve bid

More recently, he said Fed Chairman Jerome Powell should be fired after the
central bank raised interest rates in December.

 

However, it was his history of making sexist comments that appear to have
most hurt his chances.

 

In one newspaper column that he has since apologised for, Mr Moore joked
that women should not referee men's basketball games and suggested they
should not be in military combat.

 

In another, in 2014, he said that if women were paid more than men, society
could be destabilised.

 

Several Republican senators had said he would have difficulty winning
confirmation.

 

In his tweets, Mr Trump said: "Steve won the battle of ideas including Tax
Cuts... and deregulation which have produced non-inflationary prosperity for
all Americans. I've asked Steve to work with me toward future economic
growth in our Country."

 

Democrats hailed Mr Moore's withdrawal. "The only thing less funny than some
of Mr Moore's tasteless, offensive, sexist 'jokes' was the idea that
President Trump would even consider him for a seat on the Federal Reserve,"
said New York's Chuck Schumer, the top Democrat in the Senate.

 

The president, who has criticised the central bank, has been accused of
putting forward political loyalists to the Fed.

 

Just weeks ago Mr Cain, an outspoken defender of Mr Trump and a critic of
the Fed, dropped out of the running amid political opposition.

 

Mitt Romney, Utah senator and former Republican presidential candidate, was
one four Republican senators who said they planned to vote against him.

 

"I would like to see nominees that are economists first and not partisans,"
Mr Romney told the Politico website in April.--BBC

 

 

 

Turner Prize drops drops Stagecoach sponsorship

The Turner Prize has ended a sponsorship deal with Stagecoach South East - a
day after it was announced.

 

The firm was to support an exhibition of the four shortlisted artists at the
Turner Contemporary gallery in Margate.

 

But there was criticism as the chairman of its parent company had backed a
ban on teaching LGBT issues.

 

The local bus company said the decision had been "mutually agreed" and while
it was committed to diversity did not want anything to distract from the
artists.

 

Gay rights campaigner Peter Tatchell was among those against the prize's
partnership with Stagecoach South East. He told the Daily Telegraph he was
"surprised and disappointed" when he heard the announcement.

 

Sir Brian Souter, who backed a failed campaign 19 years ago to keep Section
28 - a law banning teachers discussing gay rights in Scottish schools - is
the co-founder and chairman of the Stagecoach Group.

 

In a statement, Turner Contemporary and the Tate gallery - which organises
the annual prize - said its priority was to "show and celebrate" artists and
their work.

 

Turner Prize criticised over sponsor

Turner Prize 2019 shortlist is announced

It said: "The Turner Prize celebrates the creative freedoms of the visual
arts community and our wider society.

 

"By mutual agreement, we will not proceed with Stagecoach South East's
sponsorship of this year's prize."

 

Stagecoach South East said: "We are absolutely committed to diversity in our
company, however we do not want anything to distract from celebrating the
Turner Prize artists and their work."

 

The winner of the £40,000 prize will be announced on 3 December.

 

This year's Turner Prize nominees are Lawrence Abu Hamdan, Helen Cammock,
Oscar Murillo and Tai Shani.

 

The shortlist of artists was announced on Wednesday and their work tackles
issues including oppression and marginalised communities.

 

Last year's Turner Prize was won by artist Charlotte Prodger for her film on
her experience of coming out as gay in rural Scotland.--BBC

 

 

 

Bank warns of 'more frequent' rate increases than expected

Interest rate increases could be "more frequent" than expected if the
economy performs as the Bank of England is expecting, governor Mark Carney
says.

 

The markets are forecasting just one interest rate increase by 2021.

 

But if there is a resolution to the Brexit impasse, and inflation and growth
continue to pick-up, then more increases are likely, Mr Carney said.

 

As expected, the Bank kept interest rates on hold at 0.75% at its latest
policy meeting.

 

Interest rates have been at that level since last August, when the Bank
raised them by a quarter of a percentage point.

 

The Bank is expecting growth and inflation to pick up over the next two
years.

 

Slight fall in UK unemployment

Wanted: New Bank of England boss

In a news conference, Mr Carney said: "If something broadly like this
forecast comes to pass... it will require interest rate increases over that
period and it will require more, and more frequent interest rate increases,
than the market currently expects."

 

The Bank's forecasts are based on a "smooth adjustment" to any new trading
relationship with the European Union.

 

What did the Bank say about the economy?

In its Quarterly Inflation Report, the Bank of England raised its UK growth
forecast for this year, in part because the outlook for the global economy
is a bit brighter.

 

The Bank now sees growth of 1.5% this year, up from February's forecast of
1.2%.

 

Economic growth has been subdued since the UK voted in June 2016 to leave
the EU.

 

In particular, business investment has been falling.

 

The Bank says stockpiling has been giving the economy a short-term boost,
but for this year, the strengthening of the global economy will have a more
important effect.

 

In the minutes from its latest policy meeting, the Bank said "global growth
had shown signs of stabilisation, and had been a little better than
expected".

 

It also forecasts the unemployment rate will continue falling in the coming
years to 3.5% by 2022, which would be the lowest rate since 1973.

 

Will the Bank raise interest rates soon?

The Bank is reluctant to move interest rates until there is further clarity,
not least about the path of Brexit.

 

For as it highlights (again), the movement in rates then could be "in either
direction", depending on the outcome, the impact on the economy and whether
it decides to support growth or inflation.

 

If all goes smoothly, then the Bank is likely to turn its firepower on
inflation and proceed with raising rates "at a gradual pace and to a limited
extent" - especially if there's a bounce in investment and hiring.

 

At the moment, the MPC reckons "the cost of waiting for further information
is relatively low".

 

But that, given the degree of inflationary pressure it's forecasting, is
quite a gamble.

 

If the Bank has missed the boat, then rates might have to ultimately rise
faster and by more than originally envisaged to curb inflation.

 

That would be an unenviable parting gift from Mr Carney to his successor.

 

Read Dharshini's analysis in full.

 

What does it mean for mortgages?

Moves in interest rates are important to the 3.5 million people with
variable or tracker mortgages.

 

Even a small quarter-point rise can add hundreds of pounds to their annual
mortgage costs.

 

Mortgage market experts say that for those who can afford to buy a home, now
is a good time to borrow.

 

"Right now, you've got lenders that want your business and rates are
exceptionally low," said David Hollingworth, from L&C Mortgages.

 

Some lenders are offering five-year fixed deals at below 2%, he said.

 

Even borrowers with a small deposit can find competitive rates of interest,
he added.

 

What is the outlook for the housing market?

The Bank expects a fall in UK house prices this year, with property values
predicted to drop by 1.25%.

 

It says some households are likely to have delayed moving house because of
Brexit uncertainty.

 

It also says that affordability is also slowing the market, particularly in
areas where prices are high, such as London and the South East.

 

When will Mark Carney step down?

Last month, the government launched the recruitment process for a new
governor for the Bank of England.

 

Mark Carney will step down on 31 January 2020 after more than six years in
the post.

 

Interviews will be held over the summer and the appointment will be made by
the government in the autumn.

 

The government is under pressure to consider female candidates, as men hold
the Bank's key positions.

 

At the moment, the Monetary Policy Committee, which sets interest rates,
only has one female among its nine members.

 

When asked about the lack of diversity at the Bank, Mr Carney said "big
progress" had been made with women now making up 31% of senior
management.--BBC

 

 

 

Barclays sees off Edward Bramson as rebel investor concedes defeat

A rebel investor has lost in his attempt to join the board of Barclays after
a large majority of shareholders voted against the plan.

 

Only 12.8% of shareholder votes backed Edward Bramson becoming a director at
the bank's annual general meeting.

 

However, the lender came under fire over pay for top bosses, with a third
rejecting its remuneration report.

 

Mr Bramson wants Barclays to shrink its investment bank to boost returns,
but the bank says performance is improving.

 

Earlier, the activist investor told the BBC he wasn't "going anywhere".

 

He added that there was "an option" to keep Barclays' investment bank, but
only if it could become a worthwhile asset for investors.

 

Quiet investor making waves at Barclays

Barclays profits flat amid UK 'uncertainty'

Mr Bramson's firm, Sherborne Investors Management, has amassed a 5.5% stake
in the bank - making it Barclays' third largest shareholder, but short of
having control.

 

That means he was able to attract only a further 3.8% of shareholder votes
for his cause.

 

Mr Bramson argues that Barclays' investment bank is not profitable enough
and that management should focus on the lender's retail bank.

 

Bramson may have his tail between his legs tonight but he is not leaving.

 

Selling up now would see him realise a loss of hundreds of millions of
pounds on a stake he borrowed over a billion pounds to buy.

 

Barclays has struggled to make the investment bank earn enough to justify
the capital required to run it and if that persists, Bramson may win round
others to his cause.

 

Nevertheless. At half time, it's very much Barclays 1, Bramson 0.

 

Before the AGM, major shareholder Aviva Investor expressed sympathy with his
position, but declined to back him.

 

It said Mr Bramson was good at critiquing the bank but had not "offered a
credible alternative strategy".

 

Earnings at Barclays' investment bank rebounded last year, rising 15%,
although group profit was flat. Shares in the bank have fallen by a fifth in
the past 12 months.

 

Addressing shareholders, Barclays' departing chairman John McFarlane said
Barclays' board had unanimously rejected Mr Bramson's resolution, agreeing
it would "destabilise" the bank.

 

"We've had a full 12 months of clean and respectable profits, producing
earnings per share of 20 pence," Mr McFarlane said.

 

"When I joined, we were loss-making and dividends were paid from reserves.
We've firmly drawn a line on the past."

 

Backlash on pay

In a blow for the bank, however, some 30% of shareholders voted against the
pay of top bosses following a scandal that saw chief executive Jes Staley
attempt to unmask a whistleblower.

 

Before the AGM, advisory group Institutional Shareholder Services (ISS)
recommended shareholders vote against the report, arguing the remuneration
committee had not properly sanctioned Mr Staley over the misconduct.

 

It noted the bank had been fined $15m (£11.5m) by US authorities over the
affair.

 

And while Mr Staley was personally fined £642,000 by UK watchdogs, and the
bank clawed back £500,000 of previous bonuses, Mr Staley was still paid a
total of £3.4m for 2018, down from £3.9m in 2017.

 

After the vote on Thursday, which is non-binding, Barclays said: "We are
disappointed in this outcome and will seek and reflect carefully on feedback
from our shareholders."--BBC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 


 

INVESTORS DIARY 2019

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

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.

 


 

 


(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 77 344 1674

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 



 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20190503/91e39fc4/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 3653 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20190503/91e39fc4/attachment-0006.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 42387 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20190503/91e39fc4/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 29391 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20190503/91e39fc4/attachment-0008.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 29401 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20190503/91e39fc4/attachment-0009.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 29420 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20190503/91e39fc4/attachment-0010.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image006.jpg
Type: image/jpeg
Size: 4846 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20190503/91e39fc4/attachment-0011.jpg>