Major International Business Headlines Brief::: 06 May 2019

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Major International Business Headlines Brief::: 06 May 2019

 


 

 


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*  MTN applies with Nigerian securities regulator to list shares of local
unit -sources

*  Tunisia's annual inflation falls to 6.9 percent in April

*  South Africa's rand firms against greenback, stocks rise

*  MTN shakes up board, appoints former S.Africa deputy finmin as next chair

*  Kenya's Safaricom FY earnings jump on upbeat M-Pesa growth

*  Zambia's finance minister says tax reforms needed to cut debt

*  Nigeria's NNPC reveals 132 firms companies bid for oil swaps

*  China stocks tumble on Trump tariff threat

*  Facebook bets on stars in quest for sales

*  Buffett seeks UK investment despite Brexit

*  Is WeWork really worth nearly $50bn?

*  Traffic-free days begin in Edinburgh city centre

*  US jobless rate at lowest since 1969

 

 


 <mailto:info at bulls.co.zw> 

 


 

                                      


MTN applies with Nigerian securities regulator to list shares of local unit
-sources

ABUJA (Reuters) - South African telecoms firm MTN has applied with Nigeria’s
securities regulator to list shares in its local unit on the country’s
bourse, two people with direct knowledge of the matter said on Friday.

 

Nigeria is the biggest market for Africa’s largest telecoms firm, with 52.3
million users in 2017, and accounts for a third of the company’s annual core
profit. However, it has proven problematic in recent years.

 

In 2016 the firm said it would list its local unit on the Nigerian Stock
Exchange after agreeing to pay a reduced fine of $1.7 billion in a
settlement with the Nigeria’s government over unregistered SIM cards. It has
said it planned to list on the Nigerian bourse in the first half of 2019.

 

“What they applied for is registration for listing, that is just to convert
to a publicly quoted company where, for now, private shareholders can
dispose of their shares at the exchange,” said a Nigerian Securities and
Exchange Commission official, speaking on condition of anonymity.

 

Another person with direct knowledge of the matter also said MTN had asked
the stock exchange for permission to proceed with a listing of its share.

 

Last week MTN said it had converted its Nigerian unit into a public company
ahead of its planned listing. It said the conversion was a legal requirement
to prepare for the listing. [nL5N2263IM]

 

The company expects to list the unit without raising money from investors
immediately, and has said it would simplify its capital structure before the
listing.

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 



Tunisia's annual inflation falls to 6.9 percent in April

TUNIS (Reuters) - Tunisia’s annual inflation rate in April slowed to 6.9
percent from 7.1 percent in March, official data showed on Saturday.

 

Inflation was 7.3 percent in February.

 

The central bank raised its key interest rate in February to 7.75 percent
from 6.75 percent to combat high inflation, the third such hike in the past
12 months.

 

 

 

South Africa's rand firms against greenback, stocks rise

JOHANNESBURG (Reuters) - South Africa’s rand firmed on Friday as a modest
U.S. jobs report weighed on the dollar, although many investors stayed on
the sidelines with national elections less than a week away.

 

At 1500 GMT the rand was 1.11 percent stronger at 14.3533 to the dollar from
an overnight close of 14.5675.

 

The dollar weakened as traders focused on weaker aspects of the April U.S.
payrolls report, brushing aside stronger-than-forecast hiring and a drop in
the jobless rate to a more than 49-year low.

 

“We’ve seen softer data coming out of the U.S. today...From that
perspective, its definitely dollar weakness we’ve seen creep in this
afternoon,” said Ryan Woods, a trader at Independent Securities.

 

Locally, South Africans go to the polls next week. Although political
analysts say a victory for the governing African National Congress (ANC) is
all-but assured, the party has been struggling to reverse dwindling support
blamed in part on unfulfilled promises to improve the lives of millions of
the country’s poorest people.

 

The yield on South Africa’s benchmark 10-year bond rose 5 basis points to
8.560 percent, while stocks gained.

 

The benchmark JSE Top-40 Index was 1.02 percent higher at 53,028.35, while
the broader All-Share Index rose 1.01 percent to 59,335.90.

 

Telecommunications company MTN group was a top-performer, rising 1.74
percent to 105.3 rand after appointing former deputy finance minister
Mcebisi Jonas as chairman-designate in a board shake-up following a series
of regulatory issues.

 

FNB wealth and investment portfolio manager Wayne McCurrie said it made
sense for MTN to change its board now, as it lays out a new growth path.

 

“It’s quite clear that they view this as almost a reflection point in their
history,” he said.

 

Shares of gold miners rose 1.5 percent with the price of gold price 0.76
percent higher at 1279.95.

 

 

 

MTN shakes up board, appoints former S.Africa deputy finmin as next chair

JOHANNESBURG (Reuters) - South African telecoms provider MTN Group has
appointed former deputy finance minister Mcebisi Jonas as chairman-designate
in a board shake-up following a series of regulatory issues that cost it
more than $1 billion.

 

MTN, which has expanded in more than 20 frontier markets including Syria and
Afghanistan, has faced a number of disputes in its biggest market Nigeria in
recent years over dividend repatriation, tax payments and unregistered SIM
cards. It also faces disputes in other markets.

 

“In recent years MTN Group has experienced challenging regulatory
environments and highly competitive trading conditions,” the company said in
a statement on Friday.

 

“The board is of the view that MTN Group has entered a more stable and
settled phase, enabling it to now affect an evolution of the board.”

 

Jonas will take over from Phuthuma Nhleko, who has been at the helm for more
than three-years, on Dec. 15, MTN said.

 

In addition to Jonas, MTN has appointed the former governor of the Central
Bank of Nigeria, Lamido Sanusi, and Vincent Rague, a Kenyan national who
worked for the International Finance Corporation for 24 years, in a number
of senior positions.

 

Nhleko said the new appointees “will bring a depth of skills and regional
insights that will continue to enrich the experience of the board.”

 

MTN shares pared earlier gains to trade 1.64 percent firmer at 1033 GMT.

 

MTN said it will also set up an international advisory board, chaired by
South Africa’s former President Thabo Mbeki, with the primary propose to
counsel, guide and support the group.

 

The board will comprise former Ghanaian President John Kufuor, former
African Union Commissioner for Political Affairs Aisha Abdullahi, President
of Marketing & Services at Total Momar Nguer, former Director General of the
International Atomic Energy Agency Mohammed ElBaradei and Nhleko.

 

In December, MTN agreed to make a $53 million payment to resolve a
multi-billion dollar dividend repatriation dispute in the West African
country after it agreed to pay more than $1 billion to settle the dispute
over unregistered SIM cards there.

 

Alan Harper, Jeff Van Rooyen and Koosum Kaylan will step down from MTN’s
board on Dec. 15 and Peter Mageza and Dawn Marole on 30 April 2020.

 

 

 

Kenya's Safaricom FY earnings jump on upbeat M-Pesa growth

NAIROBI (Reuters) - Safaricom, Kenya’s biggest telecoms operator, said on
Friday its core earnings for the full year rose to 89.6 billion shillings
($889.33 million).

 

The company had reported an earnings before interest and taxation (EBIT) of
79.3 billion shillings in the previous year.

 

Safaricom, which is partly owned by South Africa’s Vodacom and Britain’s
Vodafone, said rapid growth in M-Pesa digital financial business had offset
a sharp slowdown in the growth of its internet access provision business.

 

Revenue from the data business grew by 6.4 percent during the year, plunging
from a growth on 24 percent a year earlier, Sateesh Kamath, the company’s
chief financial officer, told an investors’ briefing.

 

M-Pesa was launched more than a decade ago to offer Kenyans without bank
accounts a network to transfer cash via mobile phones. It now offers a range
of payment services, loans and savings to more than 21 million people in
Kenya and has been copied abroad.

 

The company, which is the most profitable in East Africa, said it expected
EBIT to rise to 93-97 billion shillings in its financial year to the end of
next March. It boosted its dividend per share for the year to 1.25
shillings, and proposed a special dividend of 0.62 shillings.

 

($1 = 100.7500 Kenyan shillings)

 

 

 

Zambia's finance minister says tax reforms needed to cut debt

LUSAKA (Reuters) - Zambia will pay off all outstanding legitimate VAT
refunds, but plans to press ahead with a new non-refundable sales tax
despite criticism from some businesses as it strives to cut debt, its
finance minister said on Friday.

 

The proposed tax change in Africa’s second biggest copper producing nation
has upset the mining community, which has said the country is deterring new
investment it desperately needs.

 

In a speech in Lusaka, Finance Minister Margaret Mwanakatwe told business
leaders, who are involved in extended consultations over the tax change,
that the move was necessary to stop “debt escalation”.

 

She also said it would help pay outstanding refunds “and more importantly
increase revenue collection to support the government’s social development
programmes”.

 

The new sales tax was meant to have been introduced on April 1, but has been
postponed until July to allow more consultation.

 

Industry insiders have said the government owes an estimated $600 million in
VAT refunds.

 

The International Monetary Fund has repeatedly warned Zambia is struggling
with high debts and shrinking foreign currency reserves.

 

Mwanakatwe said the government was accruing about 1.8 billion kwacha ($140
million) in VAT refunds every month.

 

“Why should the government go through this pain of refunds every month? Do I
need to go through that pain? No. Let’s bring up a simpler, more efficient
system,” she said.

 

Zambia last year announced a range of tax reforms, leading some miners to
warn of job losses, although some threats have failed to materialise.

 

In January, for example, Canada’s First Quantum Minerals, scrapped plans to
layoff 2,500 workers in Zambia, saying it would continue dialogue with the
government over the tax changes.

 

Zambia is not alone in seeking to change the terms of engagement with its
foreign investors. Neighbouring Democratic Republic of Congo, Africa’s
biggest copper producer, and Tanzania have also increased their tax demands.

 

The acting CEO of Zambia’s mining investment arm ZCCM told Reuters at a
mining conference in New York this week that he was seeking to attract
investment partners and Zambia was an attractive long-term investment
proposition.

 

ZCCM is a partner of First Quantum and Glencore in Zambia.

 

“Mining is a long-term investment. In the long term, the prospects for
investment are still very high. The government is managing that issue (tax)
very well,” Mavuto Chipata said.

 

 

 

Nigeria's NNPC reveals 132 firms companies bid for oil swaps

LONDON (Reuters) - Nigerian state oil company NNPC said that 132 companies
had bid for the right to swap the nation’s crude oil for fuels as a tender
for the deals closed on Thursday.

 

The tender for the one-year contracts, dubbed direct sale, direct-purchase
(DSDP), was issued in March. NNPC extended the 2018 contracts through June
of this year.

 

Nigeria is almost entirely reliant on imported fuel due to years of neglect
at its own refineries. It has leaned heavily on the swap arrangements to get
fuel, particularly gasoline, as other would-be importers struggle to make
money due to price caps.

 

Since the scheme was introduced in 2016, replacing another programme that
paid subsidies to importers, NNPC managing director Maikanti Baru said it
had saved the nation $2.2 billion and supplied some 90 percent of its import
requirements.  

 

 

China stocks tumble on Trump tariff threat

Chinese stock markets tumbled on Monday after US President Donald Trump
threatened new tariffs on China, putting a trade deal in doubt.

 

He said on Twitter the US would more than double tariffs on $200bn (£152bn)
of Chinese goods on Friday and would introduce fresh tariffs.

 

Recent comments had suggested both sides were nearing a trade deal.

 

A Chinese delegation was due to travel to Washington this week for talks
aimed at ending the trade war.

 

US media has reported that China is now considering cancelling those talks,
led by Vice-Premier Liu He, that were scheduled to resume on Wednesday.

 

Some reports said the Chinese were due to send a 100-person delegation to
the negotiations.

 

The Chinese government has yet to officially comment on Mr Trump's tweets.

 

In China, Hong Kong's Hang Seng index dropped 3.7%, while the Shanghai
Composite plunged 5.3%.

 

US stock futures pointed to a lower open on Wall Street.

 

Michael Hirson, Asia director at Eurasia Group, said Mr Trump's "unexpected
resumption of tariff escalation comes just as trade talks were headed
towards a final stage".

 

"His move injects major uncertainty into negotiations, which now face a
rising risk of an extended impasse - perhaps even through the US
presidential election."

 

What did Mr Trump say?

The US president tweeted that tariffs of 10% on certain goods would rise to
25% on Friday, and $325bn of untaxed goods could face 25% duties "shortly".

 

"The Trade Deal with China continues, but too slowly, as they attempt to
renegotiate. No!" he tweeted.

 

After imposing duties on billions of dollars worth of one another's goods
last year, the US and China have been negotiating and in recent weeks,
appeared to be close to striking a trade deal.

 

Last week US Treasury Secretary Steven Mnuchin described talks held in
Beijing as "productive".

 

White House economic adviser Larry Kudlow told Fox News that the president's
tweet was a warning.

 

"The president is, I think, issuing a warning here, that, you know, we bent
over backwards earlier, we suspended the 25% tariff to 10 and then we've
left it there.

 

"That may not be forever if the talks don't work out," he said.

 

US-China trade war in 300 words

US and China agree to suspend new tariffs

The next US-China battleground

Is the deal over?

So far, the US has imposed tariffs on $250bn of Chinese goods, having
accused the country of unfair trade practices.

 

Beijing hit back with duties on $110bn of US goods, blaming the US for
starting "the largest trade war in economic history".

 

According to reports, in recent days US officials have become frustrated by
China seeking to row back on earlier commitments made over a deal.

 

Sticking points have included how to enforce a deal, whether and how fast to
roll back tariffs already imposed and issues around intellectual property
protection.

 

Tom Orlik, chief economist at Bloomberg Economics, said: "It's possible
talks are breaking down, with China offering insufficient concessions, and
an increase in tariffs a genuine prospect.

 

"More likely, in our view, is that this renewed threat is an attempt to
extract a few more minor concessions in the final days of talks."

 

What will the tariff rise affect?

Mr Trump's latest move will raise duties on more than 5,000 products made by
Chinese producers, ranging from chemicals to textiles and consumer goods.

 

The US president originally imposed a 10% tariff on these goods in September
that was due to rise in January, but postponed this as negotiations
advanced.

 

However, both US and international firms have said they are being harmed by
the trade war.

 

Fears about a further escalation caused a slump in world stock markets
towards the end of last year.

 

The IMF has warned a full-blown trade war would weaken the global
economy.--BBC

 

 

Facebook bets on stars in quest for sales

Stars with legions of followers on Instagram will soon be able to sell
products directly to users using the company's apps.

 

Facebook, which owns Instagram and Whatsapp, said this week that the future
of shopping would depend on content "creators".

 

Hiring so-called influencers to shift goods is nothing new. Royal warrants
have been sought after for centuries.

 

They used to be a way to know a product was probably safe and reliable long
before consumer protection laws were common. If you got one, your product
was literally fit for a king.

 

But there are now signs that people are growing weary of being told that a
product is nice by someone whose only qualification is being famous.

 

"The best ads are making culture of their own," says Grant McCracken, an
anthropologist who has advised companies including Netflix and Ford on
culture and commerce.

 

The worst can attract derision, he says.

 

Author Malcolm Gladwell introduced the world to the idea that it takes
10,000 hours to become an expert in something in his 2008 book, Outliers. So
if you apply that to culture, we are still very young by the time we have
watched 10,000 hours of television, Dr McCracken says.

 

We become cultural experts very fast.

 

And being surrounded by smart voices on social media means lazy marketing is
more likely to be jumped upon and ridiculed by smarter consumers.

 

"They are smarter through TV but they are smarter still because they can
confer," says Dr McCracken. "You never watch alone. You are watching in a
crowd, so you are enabled by the smartest person in the room."

 

The key for influencers is to offer something more than a bare endorsement,
he says. The promoter, product, and customer must all be better off, which
is a tall order.

 

So how does that work in practice? Dr McCracken points to a campaign by
software maker Adobe, which hired director and actor Zach Braff to make a
short film based on a competition winner's idea.

 

He says it's clear Mr Braff was given a free hand, because the result is a
sharp satire about endorsements.

 

This need for authenticity rings true for Georgie Clarke, who has 226,000
followers on Instagram. She has made a career promoting products she likes
on her page.

 

"I find that if I fit a product into my actual lifestyle - doing something I
would normally do", then it will strike a chord with her followers, she
says.

 

"I started in September doing videos - how to wear black jeans five
different ways, how to style maxi dresses five different ways. You get the
personality, you get to learn something.

 

"It's about giving people ideas."

 

After doing a masters degree in fashion, but only being offered unpaid
internships after graduating, she became a tax consultant for technology
firms. To keep her hand in fashion, she started off spending weekends
modelling clothes she would order online and then return.

 

"It was a fun way to style the way I wanted to style without costing me any
money," she says.

 

She did this for about a year-and-a-half and hoovered up followers. Brands
soon offered her clothes for free, and then paid her to post about them.

 

"It's what I want to do - styling and fashion and being creative," she says.
It has been her job for more than a year.

 

You have to be transparent with your followers, she advises, tagging
promotional posts as "ad".

 

Saying no to products she can't wholeheartedly recommend is also crucial,
she says.

 

"If you are that person promoting all sorts on your page, just doing it for
the money, people can see that."

 

And for her that means steering clear of offers for free plastic surgery.

 

"I hate going on Instagram and seeing people promoting lip fillers and cheek
fillers because it's so bad for little girls, seeing that," she says.

 

"You have to really research a brand and work out what they are about before
you work with them," she says.

 

And if an influencer gets lured into something bad, "you have to just put
your hands up and say I didn't do enough research", she says. Her agent
helps weed out bad products.

 

As for the future of the industry, it is harder than ever to grow a
following, she says, as platforms like Instagram manage who sees what using
content management algorithms. In order to weed out bad content like quack
dieting drugs, they may be pushing their most massive stars to the detriment
of others.

 

"I constantly have to think of ways I can change things. You can't do the
same things over and over again," says Ms Clarke.

 

Will this push by Facebook and Instagram for influencers to sell directly to
followers help her?

 

"There are positives and negatives," she believes. "The negative is
everything is going to look like an ad now, which I don't feel is great for
your followers, but the positive is that it will be easier to purchase
whatever it is you are selling."

 

Particularly useful would be sales statistics, she says, because brands
don't tell her how many sales she has made for them.

 

Influencing helped create its first billionaire this year, according to
Forbes. Kylie Jenner, who has 133 million Instagram followers, made her
fortune largely through her own cosmetics brand which she markets on the
platform.

 

Does her billionaire status mean things are still going strong for celebrity
influencers?

 

"It won't end tomorrow, but I think we can expect to see a decline" in
straightforward endorsements, says anthropologist Dr McCracken.--BBC

 

 

 

Buffett seeks UK investment despite Brexit

Warren Buffett has said he wants to invest more in the UK and other parts of
Europe, despite uncertainty over the UK's future relationship with the EU.

 

The US investment guru said he would like his firm, Berkshire Hathaway, to
be better known across the Atlantic.

 

"We're hoping for a deal in the UK and/or in Europe, no matter how Brexit
comes out," the billionaire told his annual shareholders' meeting.

 

"I have the feeling it was a mistake," he said of the UK's vote to leave.

 

However, he added: "It doesn't destroy my appetite in the least for making a
very large acquisition in the UK."

 

Mr Buffett, known as the "Sage of Omaha", is chairman and chief executive of
Berkshire Hathaway, which owns dozens of US stocks.

 

The company reported first-quarter earnings of $21.7bn (£16.5bn) on
Saturday, a marked improvement on last year's first-quarter loss of $1.1bn.

 

Food woes

However, that does not reflect the performance of one of its more
troublesome investments, the 26.7% stake in food giant Kraft Heinz, which
has not yet filed its quarterly results with the US Securities and Exchange
Commission.

 

Kraft Heinz reported a $10.2bn loss for 2018 amid signs that consumer demand
for its processed food products was waning. At the same time, Berkshire
wrote down the value of its stake by $3bn.

 

Analysts point to the food firm's failure to invest in its portfolio of
brands and its emphasis on cost-cutting as factors that have contributed to
its difficulties.

 

At the meeting on Saturday, Mr Buffett indicated he was still committed to
the firm, which was created in 2015 by the merger of Kraft Foods and HJ
Heinz.

 

At the time, Heinz was owned jointly by Berkshire Hathaway and Brazil's 3G
Capital investment firm.

 

Mr Buffett said 3G's management, which is responsible for the day-to-day
running of the food company, was doing well operationally.

 

But he said taking on Kraft had proved costly, adding: "You can turn any
investment into a bad deal by paying too much."--BBC

 

 

 

Is WeWork really worth nearly $50bn?

The We Company is a business that defies description, at least according to
its co-founder and chief executive Adam Neumann.

 

But for many it's the firm's valuation that is really defying explanation.

 

As it prepares for a stockmarket listing, the parent company of WeWork,
provider of trendy shared office space, looks set to be valued at around
$47bn (£36bn).

 

That puts it in the same bracket as the slate of high-profile technology
companies that are also floating their businesses, and have attracted
sky-high valuations based on the idea they will reap big rewards from
disrupting established markets.

 

Like them WeWork boasts a "millennial-friendly" outlook and aesthetic. The
bright, airy and comfortable offices it rents out are built around community
so people can choose to work in an office or in a shared space, where they
can log-on to wifi, hold meetings and get to know others also using the
facilities. A nearby kitchen complete with beer on tap is likely a draw as
well.

 

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Underneath the beautiful decor though, some argue We Company is really just
a real estate company, prompting the question: should it have such a high
market value?

 

What is the We Company?

WeWork was established in 2010, just as the financial crisis took the bottom
out of the office rental market. WeWork now has 425 locations in 100 cities
and boasts 401,000 members - those who use the offices.

 

The We Company has also branched out into residential spaces with WeLive
where people can rent fully furnished apartments for a few nights or a
number of months.

 

WeGrow, its school for 2-11 year olds, says it is committed to "unleashing
every human's superpowers".

 

Mr Neumann told Forbes magazine the firm's valuation has more to do with its
size, its "energy and spirituality" than its revenues. While revenues are
growing, it hasn't met its most recent targets and it is loss-making.

 

While WeWork, WeLive and WeGrow may have the look and feel of a disruptive
tech company with their light, airy designs, colourful squishy sofas and
beer taps, analysts like Calum Battersby, at Berenberg argue it is not so
very different from rivals IWG, which used to be known as Regus, and
Australia's ServCorp which also offer serviced office space.

 

"It is a real estate company, undoubtedly," he says and as such is quite a
capital intensive business to run.

 

Tech firms like Uber, the ride sharing and food delivery app, are
platform-based businesses, requiring upfront investment. But We needs more
capital to keep operating.

 

"Every bit of revenue they earn, they are going to have to invest a lot in
getting a lease on the office, doing up the office, segmenting it into
smaller sites that you can sell to people and companies just like any
traditional office company," says Mr Battersby.

 

Expanding into new areas also requires a lot of money; last year it burned
through $2.3bn in cash.

 

Who has invested in We?

The We Company has attracted a roster of high profile investors including
Goldman Sachs and JPMorgan to fund its expansion.

 

But it was when Softbank, the Japanese technology conglomerate, got involved
with the We Company that the value of the business really shot up.

 

Softbank and We initially struck a $4.4bn deal in 2017 which gave the firm a
valuation of $20bn.

 

Rett Wallace, founder and chief executive of Triton Research, says the
firm's track record on fundraising has been "astonishing".

 

"If you just look at the nuts and bolts of what they do, it doesn't explain
how they have been able to raise so much money," he says. "And the people
they have raised the money from are not idiots."

 

Recently though, the flow of money from Softbank has been pared back. In
January, the Japanese firm invested $2bn in the company in January, well
below the $16bn WeWork was reported to have been seeking.

 

Meanwhile, the firm hasn't hit projected financial targets. Instead of
expected revenue of $2.8bn last year sales were $1.8bn.

 

It had hoped for a profit of $941.6m. It made a loss $1.9bn.

 

We has surpassed its target for 260,000 WeWork members. But it wanted 34,000
WeLive members and the residential business was supposed to make up a third
of total revenue, neither of which has happened.

 

So far, the furnished apartment business WeLive only has two sites, in New
York and Washington DC, though it is planning to open in Seattle in 2020.

 

But Artie Minson, We's president and chief financial officer, is upbeat,
recently telling investors it ended 2018 with $6.6bn in cash and is still
"in the early stages of disrupting real estate, the largest asset class in
the world."

 

Is the We Company a 'disruptor'?

While Charles Clinton, co-founder and chief executive of online real estate
investing and finance platform EquityMultiple agrees that We is essentially
a real estate company, he says its approach has shaken up the serviced
office sector.

 

"I think that they have expanded the base that accesses these kind of
services very dramatically by marketing to a new audience, much like Apple
has been able to do. Sometimes style alone is a form of disruption."

 

The shared residential market is also ripe for disruption, according to Mr
Clinton, making WeLive the most promising business under the We umbrella.

 

Although other things the company has done "feel a little bit more
scattershot by comparison" he adds.

 

Take Wavegarden, a Spanish firm that generates ideal conditions for surfers
- a hobby Mr Neumann reportedly enjoys.

 

The We Company paid $13.8m for a 42% stake in Wavegarden. It wrote down the
value of its holding to zero a year later though a We spokeswoman says
Wavegarden is now "seeing strong demand".

 

Whether We will be able to continue making leftfield deals such as this once
they have public investors to answer to isn't clear.

 

Also likely to raise questions is a practice where Mr Naumann leases
buildings which he part owns to WeWork. The Wall Street Journal reported
that the firm paid more than $12m in rent to buildings "partially owned by
officers" of WeWork between 2016 and 2017.

 

A spokeswoman said these deals have been disclosed to its board and
investors, adding: "We have a policy in place that provides review and
approval procedures for related party transactions."

 

Mr Clinton says that deals such as these can work "if your private market
investors are okay with it".

 

However, he says: "In a public company where you have to be much more
responsive to both your investors and the Securities and Exchange
Commission, that becomes a lot more tricky."--BBC

 

 

 

Traffic-free days begin in Edinburgh city centre

A number of Edinburgh's city centre streets have been closed to traffic
under plans to reduce air pollution.

 

The city has become the first in the UK to join the Open Streets movement.

 

Streets in the Old Town, including the Canongate, Cockburn Street and
Victoria Street, were closed between midday and 17:00.

 

The initiative will take place on the first Sunday of every month as part of
an 18-month trial.

 

Edinburgh's cycle hire scheme will also be free all week to encourage people
to ditch their vehicles.

 

Report

The movement has seen cities around the world temporarily close some streets
to all but pedestrians and non-motorised vehicles on a regular basis.

 

A series of events took place to celebrate the launch in Edinburgh,
including jazz performances in Dunbar Close Garden, Tai Chi on the High
Street and electric bike trials on Victoria Street.

 

Lesley Macinnes, City of Edinburgh Councils's transport and environment
convener, said: "We've seen how successful similar schemes internationally
have proved by encouraging active travel, improving air quality and creating
a safer, more relaxed atmosphere so I can't wait to see this take shape in
the capital.

 

"Climate change is a real threat to society, it's clear that we have to act,
and Open Streets is undoubtedly a step in the right direction."--BBC

 

 

 

US jobless rate at lowest since 1969

The US unemployment rate dropped to its lowest level for more than 49 years
in April, according to official figures.

 

The jobless rate fell from 3.8% to 3.6%, the US Labor Department said, the
lowest since December 1969.

 

However, the fall was due to a large number of people - 490,000 - leaving
the labour force during April.

 

The data also showed that the world's largest economy added a
stronger-than-expected 263,000 jobs during last month.

 

Wage data showed that average earnings grew at an annual rate of 3.2%.

 

Analysts said the figures indicated that the economy remained healthy, but
was not running at a pace that might cause the US Federal Reserve to alter
interest rates.

 

Hiring gains were seen in nearly all sectors of the economy during April.

 

Professional and business services - added 76,000 new jobs

Construction - added 33,000

Healthcare - added 27,000

Social assistance - added 26,000

Financial activities - added 12,000

However, there was little change in the numbers of involuntary part-time
workers. The number of people working part time because their hours had been
reduced or because they were unable to find full-time jobs remained at 4.7
million.

 

Ian Shepherdson, chief economist at Pantheon Macroeconomics, called it a
"strong" jobs report, "but payroll gains can't continue at this pace".

 

"What can continue, though, is the downshift in unemployment, and that means
more power to scarce labour and faster wage gains in due course."

 

He added that while there were no immediate implications to monetary policy,
it would be possible that similar data in future could "prompt something of
a rethink at the Fed".

 

It's a strong jobs report and certainly undermines the concerns expressed in
recent months that the US might be heading for a recession soon.

 

The unemployment rate puts the US close to, though not at, the top of the
international league table. That is a little flattering however. It reflects
not just job creation, but also the number of people not seeking to work.
They are classified not as unemployed but as "not in the labour force".

 

The percentage who are either working or trying to get work (known as the
participation rate) puts the US much closer to mid-table, as does the
percentage who do have jobs.

 

The Federal Reserve chairman, Jerome Powell, (speaking to CBS television)
has referred to "an unusually large number of people in their prime working
years who are not in the labour force". There are a number of factors behind
that but one possible contributor is a major US public health problem; the
misuse of opioid drugs.

 

'Good position'

Nancy Curtin, chief investment officer at Close Brothers Asset Management,
said: "Unemployment is at a multi-decade low, the trade talks with China are
progressing well, and Chinese stimulus is in place, which should boost
global demand. All of this bodes well for the US economy continuing to build
momentum."

 

Despite the strong jobs growth, US inflation remains below the Fed's target
of 2%.

 

"Business spending is going towards digital transformation rather than
investment in labour, which is proving deflationary," said Ms Curtin.

 

"What this means for expansion is unclear, but so long as [US Fed chairman]
Powell remains pragmatic and flexible with his policy the US is in a good
position for the second half of the year."

 

The US Federal Reserve indicated earlier this year that it would not change
rates for the rest of 2019.

 

On Wednesday, the Fed voted to hold interest rates, keeping borrowing costs
at between 2.25%-2.5%.

 

A day earlier, US President Donald Trump had tweeted that the Fed should
reduce rates by 1% to help the US economy "go up like a rocket".--BBC

 

 

 

 


 

 


 

INVESTORS DIARY 2019

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

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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