Major International Business Headlines Brief::: 08 May 2019

Wed May 8 08:31:18 CAT 2019

 <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::: 08 May 2019

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

*  World markets tumble amid US-China trade tensions

*  South Africa's MTN registers Nigerian business shares before listing

*  Steinhoff set to release 2017 results, shares rise

*  South African business confidence rise in April on post-election hopes

*  As IPO looms, Uber clings to hard-knuckled tactics in pursuit of growth

*  Bombardier to be supplied by Morocco plant after sale -minister

*  Egypt moves to cancel planned increase in stock exchange duty

*  MTN Nigeria registers to list 20.4 bln shares at 0.02 naira each

*  South Africa's rand steady with elections bets balanced

*  Kenya house committee opposes Kenya Airways' takeover of main airport

*  1MDB: US to return $200m in funds to Malaysia as part of probe

*  Basic income of £48 a week in UK urged

*  France Telecom suicides: Former bosses go on trial

*  BHP Billiton 'woefully negligent' over Brazil dam collapse

 <mailto:info at bulls.co.zw> 

World markets tumble amid US-China trade tensions

Stock markets around the world have slumped after US President Donald Trump's unexpected threat to impose new tariffs on Chinese exports.

In the US the Dow Jones ended 1.8% down while London's FTSE 100 fell 1.6%.

The US president has vowed to double tariffs on $200bn of Chinese goods on Friday, amid claims Beijing is trying to row back on a trade deal.

But Chinese Vice Premier Liu He is still scheduled to visit Washington this week for trade talks.

On Tuesday investors sought shelter in safer government bonds and the Japanese yen.

"As we digest the significance of the tariff threat, we are a little less hopeful that we are going to see progress at the end of this week that will forestall the additional tariffs," said Tony Roth, chief investment officer at Wilmington Trust in Wilmington.

In the US the S&P 500 fell for the fourth session in five days, closing 1.7% lower

Boeing, the largest US exporter to China, declined 4% and construction equipment giant Caterpillar fell 2.3%.

In Europe, France's Cac-40 and Germany's Frankfurt's DAX index declined for a second day, with both losing 1.6%.

Late on Monday, US trade representative Robert Lighthizer accused China of trying to substantively change the text of a deal between the two countries as it neared its final stages.

However, he insisted an agreement was still possible.

"We're not breaking off talks at this point. But for now... come Friday there will be tariffs in place," he said.

The stock market falls come after a period of strong first-quarter earnings for US companies.

Of the 414 S&P firms that have reported earnings so far, about three quarters have beaten analyst forecasts, according to data from Refinitiv.--bbc

 <mailto:info at bulls.co.zw> 

South Africa's MTN registers Nigerian business shares before listing

LAGOS (Reuters) - MTN has registered more than 20 billion shares of its $5 billion Nigerian business before its planned listing of the unit in the West African nation, the South African telecoms firm said on Tuesday.

It announced the move shortly after a judge cleared Africa’s biggest telecoms firm on Tuesday of missing a deadline to file a challenge against a $2 billion tax demand, the latest row with the authorities to beset MTN’s Nigerian business.

MTN argues that the attorney general exceeded his power when he issued the backdated tax demand in September. State lawyers had filed a case saying MTN did not file its challenge in time.

MTN Nigeria said after the judge’s ruling it had registered to list 20.4 billion ordinary shares at 0.02 naira ($0.0001) each with Nigeria’s securities regulator, before listing the business that MTN valued at about $5 billion last year.

“We have achieved another milestone in our listing process,” MTN Nigeria Chief Executive Ferdi Moolman said in a statement.

The company said it had started talks with the stock exchange to complete the listing and would meet investors to discuss the plans on May 16.

It has previously said it did not plan to raise funds from investors immediately via the listing.

Nigeria is MTN’s biggest market, with 58 million users in 2018 and accounting for a third of the firm’s annual core profit. But the business has faced challenges in Nigeria, ranging from the tax demand to a fine over unregistered SIM cards.

MTN had said in 2016 it planned to list its local unit on the Nigerian Stock Exchange after agreeing to pay a $1.7 billion fine to settle the SIM card dispute with the government.

It previously said it planned to list in the first half of 2019.

In the tax case, a hearing into whether the auditor general acted within his rights is scheduled for June 26.

“MTN maintains that it is fully compliant with Nigerian tax laws. The company remains committed to meeting its fiscal responsibilities and contributing to the social and economic development of Nigeria,” MTN said after Tuesday’s ruling.

In the commercial capital Lagos, lawyers for the opposing sides had argued over whether or not the telecoms firm responded to the tax bill within the three-month period stipulated by law. The judge ruled that said MTN had responded in 19 days.

In a separate case, MTN agreed in December to make a $53 million payment to resolve a dispute over dividend repatriation.

MTN shares in Johannesburg were up 0.7 percent at 104.37 rand by 1338 GMT.

Steinhoff set to release 2017 results, shares rise

JOHANNESBURG (Reuters) - Steinhoff on Tuesday is due to reveal the impact of South Africa’s biggest corporate scandal on its finances when it publishes 2017 earnings after repeated delays caused by the lengthy process of sorting out the retailer’s accounts.

Steinhoff had to put off the publication of its results after a 6.4 billion euro ($7.17 billion) accounting fraud that stunned investors in the group which had been expanding into discount furniture retailing in Europe.

The company first disclosed the hole in its accounts in December 2017, shocking investors who had backed its transformation from a small South African company to a multinational retailer.

An investigation by auditor PwC released in March revealed some of the scale of the fraud, but shareholders still want more information and an indication of how much Steinhoff’s remaining assets are worth.

Eight people, including former Steinhoff executives, were named in the PwC investigation, which found a complex scheme where intercompany transactions worth 6.4 billion euros were fraudulently recorded as external income to prop up profits and hide costs in underperforming subsidiaries.[nL8N21258L]

Shares in Johannesburg-listed Steinhoff opened more than 8 percent higher on Tuesday before paring gains to stand 4.02 percent up at 2.07 rand at 0914 GMT.

“Most of the bad news has already been priced in. They’ve already done most of the impairments,” said BP Bernstein equity trader Vasili Girasis.

“The market is kind of in a ‘buy the bad news’ type of scenario because most of it is now out and hoping that from here onwards things will be a lot more stable and clearer.”

The company has already written down the value of its assets by more than $12 billion after PwC provided its initial findings in June last year.

The 2017 audited and the 2016 restated results will feature a further impairment of 1.8 billion euros of the group’s goodwill and intangible assets as at September 30, 2017, with the value now expected to be 7.2 billion euros, the retailer said on April 30. [nL5N22C8EM]

The reduction followed a reassessment of the value of the goodwill and intangible assets of Mattress Firm, a U.S. bedding retailer for which Steinhoff paid a 115 percent premium to acquire the company in a $4.8 billion deal in 2016.

Mattress Firm filed for voluntary bankruptcy protection in October 2018 and exited the process less than two months later. [nL4N1XX2O3] [nL8N1WL3C4]

The retailer has delayed releasing results several times as it waited for the findings of the PwC investigation and audit process of its external auditor Deloitte.

The 2018 results are now due on June 18.

($1 = 0.8929 euros)

South African business confidence rise in April on post-election hopes

JOHANNESBURG (Reuters) - South Africa’s business confidence rose in April as retail sales and import volumes improved alongside a firmer currency, a survey showed on Tuesday, lifting sentiment from a seven month low as businesses also saw a stable post-election policy environment.

The South African Chamber of Commerce and Industry’s monthly business confidence index (BCI) rose to 93.7 in April from 91.8 in March, the business body said.

The reading was the highest since January, and had also been soothed by the increased focus on the economy in the run up to parliamentary and provincial elections on Wednesday.

“The common theme of election manifesto policies among the parties to drive economic growth and job creation seems to resonate well with the markets,” SACCI said in a statement.

“Business confidence is likely to be emboldened by a resounding victory of President Ramaphosa within the ANC.”

While a victory for the ruling African National Congress (ANC) is almost certain, its majority is likely to shrink, constraining Ramaphosa’s reform and keep the economy on slow burn.

Five of the thirteen sub-indices improved compared to March, while five were unchanged and three declining.

Business reported an improved exchange rate against the major trading and investment currencies, higher share prices on the Johannesburg Stock Exchange, increased real value building plans passed, real retail sales, and merchandise import volumes.

The rand has gained close to 3 percent against the dollar since the beginning of April, better than many of its emerging market peers, while the Top-40 Index has rallied nearly 7 percent, shooting through 52,000 mark.

“The outcome of elections should bring more clarity to business and enhance better planning and decision making,” SACCI said.

As IPO looms, Uber clings to hard-knuckled tactics in pursuit of growth

SAN FRANCISCO/ CAPE TOWN (Reuters) - Uber co-founder and former CEO Travis Kalanick used to tell investors he liked to keep his company teetering between order and chaos.

By the time he left, it was chaos. The company was battered by a slew of scandals, including revelations it had used illicit tactics to handicap competitors and dodge regulators.

Almost two years later, under new leadership and set to debut Friday on Wall Street in the largest U.S. public stock offering since 2014, Uber Technologies Inc is still testing the rule of law.

With growth slowing, the company continues to spar with local officials around the world looking to limit Uber cars on their streets.

In Cape Town, South Africa, for example, Uber dominates the market with an estimated 7,000 drivers, most of whom are operating illegally, according to city officials. Uber blames Cape Town’s “broken” system for approving ride-hailing licenses.

In the United States, Uber has used the courts to try to block what it see as unreasonable restrictions on its business. And it has successfully lobbied state legislatures to pass laws preempting local ride-hailing regulations, much to the frustration of officials in some cities where it operates.

Uber insiders say CEO Dara Khosrowshahi has made strides in cleaning up a frat-house culture that spawned allegations of sexual harassment and embarrassing leaks of executives behaving badly.

But Uber’s sharp-elbowed business tactics, detailed by lawmakers, city staff and regulators across the globe, as well as drivers and former employees, continue to drive the company.

“It’s in the DNA,” a former Uber manager said. “Old habits die hard.”

Whether its playbook delivers the growth and profitability public market investors will be seeking remains to be seen. Revenue growth slowed to 2.3% in the fourth quarter over the previous quarter, a worrisome sign for a business that lost more than $3 billion last year.

Uber’s economics “are not immediately or obviously attractive for sustainable, long-term investment,” Mark Hargraves, Head of Framlington Global Equities at AXA Investment Managers, said in a recent note to clients.

An Uber spokesman declined to comment. In its IPO filing, the company said it is “using a proactive and collaborative approach with regulators” and “rebuilding and strengthening” its relationships with cities. Where ride-hailing is banned, Uber is instead offering e-bike services or partnering with traditional taxi companies.

Still the company acknowledged “legal and regulatory obstacles” around the world that could impede its revenue and growth.

CAT AND MOUSE IN CAPE TOWN

Thousands of miles from Wall Street, Uber is pushing the bounds of regulation.

In Chile, which has yet to work out a regulatory framework for ridesharing, Uber drivers have been known to enlist passengers to help them evade transit cops. In Mexico City, Uber has protested new safety rules it says would limit the number of riders who could use the app. In London, Uber is on probation after it was temporarily banned for flouting safety rules.

And in Cape Town, Uber has entered its fifth year of a stalemate with local officials.

Every ride-hailing service in Cape Town is allotted a certain number of operating licenses for its drivers. As of mid-April, Western Cape Province, where the city is located, had approved 760 such licenses for Uber. But the city estimates there are roughly 10 times that many Uber drivers plying its streets, many of them immigrants or refugees.

Foreign-born drivers must also have work permits, paperwork many of them lack, according to city aldermen and drivers.

Uber said it allows drivers to start work while their ride-hailing licenses are still pending approval but that the company thoroughly vets the drivers.

A game of cat and mouse has ensued: drivers alert each other to the whereabouts of traffic cops through the WhatsApp mobile messaging service. If their cars are impounded, they pay the fines, start driving anew and wait for Uber to reimburse them.

Those impound fines start at almost $500 and go up with each subsequent offense, topping out at more than $1,000. Drivers are fined an additional $173 each time.

“It’s just like gangsterism fighting for turf,” said Ivan, a South African driver who gave only his first name.

Uber has spent at least $2.3 million since 2016 to reimburse drivers for the impound fines, according to Reuters’ estimate based on data from the city. Uber declined to say how much it had spent, but said it would continue paying the fines to support its drivers and get them back on the road.

South Africa is crucial to Uber’s Africa strategy, boasting the continent’s most-developed economy.

A spokesperson for Uber South Africa said Cape Town’s licensing system “is effectively broken” and blamed the city for what it says is a backlog that can stretch for more than two years in some cases.

The city estimates there is a market for about 2,100 Uber drivers. Alderman JP Smith said part of Cape Town’s calculus is to head off violence that could result if too many taxi drivers are put out of business by new ride-hailing rivals. In the larger cities of Pretoria and Johannesburg, some Uber drivers and cabbies have been killed and their cars torched as part of an ongoing turf war.

“In other parts of the world, if there are too many taxis some just stop being taxis,” Smith said. “Here, disputes between taxis are settled via assassination and murder.”

The face-off may not find a resolution any time soon. Cape Town is expanding its impound facilities so it can take in nearly twice the number of cars.

BAD BLOOD

Big cities concerned about gridlock, air quality and the safety of passengers and drivers are crafting new policies and demanding more data from ride-hailing companies to find solutions.

Uber is pushing back. The company sued New York City in February over a law imposing a cap on the number of ride-hailing drivers, a move taken to address worsening traffic. In its hometown of San Francisco, Uber is fighting a court order to turn over data the city says would help improve traffic management and the safety of Uber drivers.

As city officials in the United States have gotten scrappier, Uber has sought out friendlier state legislators to work around them.

Over just four years, Uber and rival Lyft helped pass laws in 41 states that put ride-hailing under the state’s jurisdiction, preempting some or all local regulations, according to a 2018 study by the National Employment Law Project.

Uber is now pushing legislation in Oregon that would preempt local mandates on driver caps, permits, data collection and access for passengers in wheelchairs, among others.

Uber’s general manager for Oregon said the bill would create “increased mobility for rural and urban communities,” by bringing Uber to towns that currently do not allow it.

Officials in Portland say their city is in the crosshairs. After Uber launched there in late 2014, Portland sued to stop its operation, declaring it illegal. That suit was later dropped, but Portland regulates Uber closely.

Noah Siegel, interim assistant director at the Portland Bureau of Transportation, said the proposed legislation would hurt the city’s ability to manage growth and ensure everyone can get around safely.

“We were not really holding a lot of bad blood about what had happened” with Uber in the past, Siegel said. “But this bill serves as a reference point that it’s only been four years and they still haven’t turned a profit and they will do anything to make money.”

Bombardier to be supplied by Morocco plant after sale -minister

CASABLANCA, Morocco (Reuters) - Canada’s Bombardier Inc will sell its wing component plant in Morocco to a manufacturer that will continue to supply Bombardier after a sale, Moroccan Industry Minister Moulay Hafid Elalamy said on Monday.

The plane-and-train maker said last week it would unite its corporate and regional jet units into one aviation division as part of a shake-up. It plans to sell plants in Belfast and Casablanca.

“The successful bidder will be revealed in three weeks,” Elalamy said two weeks after a visit to Canada during which he met Bombardier officials.

Bombardier spokesman Olivier Marcil said by phone late on Monday that the plant would remain a supplier for the company for the foreseeable future.

Morocco is home to 140 aerospace component manufacturers mostly small and medium sized companies but also giants such Boeing and Airbus subsidiary Stelia.

The aerospace industry employs 16,700 people in Morocco and exported 13.9 billion dirhams ($1.43 billion) in 2018, up 13.8 percent compared with a year earlier, according to official figures.

Egypt moves to cancel planned increase in stock exchange duty

CAIRO (Reuters) - Egypt has drafted a law to keep a tax on stock exchange transactions at 1.5 pounds per 1,000, cancelling an increase to 1.75 pounds per 1,000 that was due to take effect on June 1, the Finance Ministry said on Tuesday.

Egypt introduced the stamp duty at 1.25 pounds per 1,000 in June 2017, legislating for it to rise to 1.5 pounds in the second year and 1.75 pounds in the third.

The ministry said in a statement that the proposed change was designed “to reduce the financial burden on traders and support the activity of the Egyptian stock exchange”.

MTN Nigeria registers to list 20.4 bln shares at 0.02 naira each

LAGOS (Reuters) - MTN Nigeria said on Tuesday it has registered to list 20.4 billion ordinary shares at 0.02 naira ($0.0001) each with the country’s securities regulator.

The South African telecoms firm said in its statement it has started negotiations with the stock exchange to complete the listing.

($1 = 306.3000 naira)

South Africa's rand steady with elections bets balanced

JOHANNESBURG (Reuters) - The South African rand inched upward early on Tuesday, bouncing back from the previous session’s losses as investors betting on President Cyril Ramaphosa securing a big enough election majority to push through reforms locked in positions.

At 0650 GMT the rand was 0.1 percent firmer at 14.4550 after sliding to a session low 14.5325 on Monday, weighed down by resurfacing trade tensions between the United States and China after President Donald Trump threatened $200 billion worth of tariffs on Chinese goods.

The resulting slump in risk demand dragged emerging currencies lower. The rand was down one percent at one stage before relief trickled in as investors sanguine on the outcome of Wednesday’s national election helped the currency inch towards the 14.50 support mark.

While a victory for the ruling African National Congress is almost certain, its majority is likely to shrink, constraining Ramaphosa’s reform and keep the economy on slow burn.

“Let’s not be fooled by the rand’s apparent resilience,” Merchant Bank rand analyst Nema Ramkhelawan-Bhana said.

“Volatility measures convey the market’s doubts with the 25 delta risk reversal jumping to a one-month high, showing an inclination towards the hedging of rand weakness rather than strength after the elections.”

Bonds also edged firmer, with the yield on he benchmark government paper due in 2026 down 1.5 basis points to 8.565 percent.

Kenya house committee opposes Kenya Airways' takeover of main airport

NAIROBI (Reuters) - The Kenyan parliament’s transport committee has opposed a proposed takeover of the running of Nairobi’s Jomo Kenyatta International Airport (JKIA) by struggling carrier Kenya Airways, a lawmaker told Reuters on Tuesday.

The cabinet backed a plan last year to hand over management of the profitable airport, the largest in the country, to the loss-making national carrier.

The transport committee had instead proposed that the carrier should be exempt from paying taxes to allow it to recover, said the member of parliament who did not wish to be named.

1MDB: US to return $200m in funds to Malaysia as part of probe

The 1MDB fund was meant to turn Kuala Lumpur into a financial hub and boost the Malaysian economy

The US is to return close to $200m (£152.4m) to Malaysia in funds recovered from asset seizures tied to scandal-hit state fund 1MDB.

US authorities have so far transferred $57m tied to a Hollywood firm accused of using 1MDB funds to finance films.

It will send another $139m linked to the sale of a Manhattan property allegedly bought with 1MDB funds.

Billions of dollars from 1MDB - officially the 1Malaysia Development Berhad fund - have gone missing.

Set up in 2009, the sovereign wealth fund was designed to boost Malaysia's economy through strategic investments.

But US authorities say $4.5bn was diverted from 1MDB into private pockets, and they have been investigating the corruption scandal.

Superyacht linked to 1MDB sold for $126m

1MDB: The playboys, PMs and partygoers

Goldman Boss apologies for 1MDB scandal

According to US and Malaysian prosecutors, the money was used to buy assets including luxury real estate, a private jet and expensive artworks.

On Tuesday, US ambassador to Malaysia, Kamala Shirin Lahkdhir, told Reuters: "We are extremely pleased that this first tranche of assets from this Justice Department investigation is being transferred back to Malaysia, demonstrating the US commitment to return these assets for the benefit of the people of Malaysia,"

The $57m remitted so far relates to a settlement reached with US film production company Red Granite Pictures, Malaysia's Attorney General Tommy Thomas said in a statement.

The film production company settled a civil lawsuit with the US government over rights to blockbuster The Wolf of Wall Street. According to Reuters, US authorities say the film was financed with 1MDB funds.

1MDB was set up by Malaysia's then-prime minister Najib Razak, but red flags were raised in 2015 after it missed payments owed to banks and bondholders.

Mr Najib faces more than 40 charges and has gone on trial for his role in a financial scandal. He has pleaded not guilty.

He is accused of pocketing $681m from 1MDB. Prosecutors said the money had been used to fund a lavish lifestyle for the former PM and his wife Rosmah Mansor, who is also facing charges of corruption.--BBC

Basic income of £48 a week in UK urged

Every adult in the UK should receive a weekly basic income of £48, according to the recommendations in a new report.

The move could be paid for by scrapping more than 1,000 tax reliefs, a report by Professor Guy Standing, a professor at SOAS University suggests.

The Labour Party - which has previously floated the idea of a basic income - said it would study the report ahead of drawing up its next manifesto.

A universal basic income is already being trialled in other countries.

The report, entitled Basic Income as Common Dividends: Piloting a Transformative Policy, was written by Professor Standing, an authority on the concept of the basic income.

He was asked to write it by the Progressive Economy Forum, a left-leaning group of economists.

Advocates of a basic income say it reduces poverty and inequality by providing a guaranteed income.

But Conservative deputy chairman Helen Whately said it would be "a kick in the teeth to hardworking taxpayers".

"It would mean benefit payments for everyone, from Premier League footballers to investment bankers and even prisoners, costing billions, while hammering ordinary workers in the pocket by scrapping the tax-free income allowance."

The Treasury also criticised the report, saying it was "committed to supporting working people keep more of what they earn, while providing a strong and sustainable safety net for those who need it".

"Our policies are highly redistributive - this year the lowest income households will receive over £4 in public spending for every £1 they pay in tax, while the highest income households will contribute over £5 in tax for every £1 they receive in public spending," it added.

What is a basic income?

Universal basic income, or UBI, means that everyone gets a set monthly income, regardless of means.

The author of this latest report, Professor Guy Standing, told the BBC: "A basic income would be paid in cash, a moderate amount, a basic amount unconditionally to each individual man and woman equally, a smaller amount for a child and the good thing is it would be unconditional and it wouldn't be means tested and it would be a right, an economic right."

How much would it be?

Professor Standing said the amount would change over time as the funding for a basic income is built up.

However, initially he said the weekly sum would be £48, which he said would be a "significant amount for many people".

"Now £48 is not a lot for most people but for a lot of people out there they have £20 left at the end of the week after they've paid their rent and their food, so this is a significant amount for many people."

A lower sum would be paid to children, under these proposals.

How would it be paid for?

A rough calculation shows that if about 60 million people were paid £48 a week, that would come to about £150bn a year.

Professor Standing said there are 1,156 tax reliefs in the UK at the moment and if they were scrapped that would pay for a basic income.

"What that means [is] it's income foregone by the Treasury. Most of these tax reliefs didn't have any economic rationale and they're giveaways that are increasing inequality.

"If we phased out those tax reliefs the total revenue foregone by the Treasury from tax reliefs is £420bn per year and that's their own estimates, not mine," he added.

Has it been done elsewhere?

Some countries have tested paying a basic income to citizens.

In western Kenya, the government is paying every adult in one village $22 a month for 12 years to see if a regular payment can help lift them out of poverty.

The Netherlands and Italy have also launched trials, while Scotland is considering piloting basic income schemes in four cities, including Glasgow and Edinburgh.

Shadow Chancellor John McDonnell recently said that Labour would include a plan for universal basic income in its next general election manifesto.

Finland basic income 'did not help jobless'

Ontario cuts basic income project short

Basic income pilot considered in Glasgow

However, a two-year trial in Finland, where a sample of 2,000 unemployed adults were given €560 a month, was not extended.

And in Canada, Ontario's newly elected centre-right government said it was scrapping a three-year basic income pilot project that hoped to discover whether it was better than existing welfare schemes.

This is not the first time this has been suggested in the UK is it?

No, there have been a couple of similar studies this year alone.

In March the New Economics Foundation think tank published a report in which it proposed replacing the personal tax allowance with a Weekly National Allowance of £48. However, it did not call it a basic income.

A week later the leftwing think tank Compass, suggested a universal basic income of £60 for each adult, £175 for those over 65 and £40 for children under the age of 18.

What are the pros?

Shadow Chancellor John McDonnell, who is attending the launch of the independent study on Tuesday, welcomed the report.

He said: "This report is an important contribution to the debate around inequality, austerity, poverty and how we establish a fair and just economic system.

"There have been pilots of 'basic income' elsewhere and Guy Standing has looked at them and come forward with proposals.

"Whatever mechanism we use, whether 'basic income' or another, we have to lead in developing a radical mechanism aimed at eradicating poverty, but also means testing.

"We will be studying the contents and recommendations of this report carefully as we put together our reform policies for the next Labour government."

What are the cons?

Opponents of a basic income are worried about how it would be paid for and what cuts would have to be made elsewhere.

And the government has previously said a universal basic income would not work for those who need more support, such as disabled people and those with caring responsibilities.--BBC

France Telecom suicides: Former bosses go on trial

The ex-boss of France Telecom and six other former executives have gone on trial in Paris, accused of moral harassment linked to a spate of suicides among employees.

Didier Lombard and his fellow defendants deny their tough restructuring measures were to blame for the subsequent loss of life.

The company, since renamed Orange, is also on trial for the same offence.

Thirty-five staff took their lives between 2008 and 2009.

Some of them left messages blaming France Telecom and its managers.

At the time, the newly privatised company was in the throes of a major reorganisation. Mr Lombard was trying to cut 22,000 jobs and retrain at least 10,000 workers.

Some employees were transferred away from their families or left behind when offices were moved, or assigned demeaning jobs.

Accusations rejected

"I'll get them out one way or another, through the window or through the door," Mr Lombard was quoted as telling senior managers in 2007.

Mr Lombard has accepted that the restructuring upset employees, but rejected the idea that it led to people taking their own lives.

If found guilty, the defendants could each face a year in prison and €15,000 (£12,800) in fines.

Orange itself could face sanctions of €75,000.

Among the cases documented:

In 2009, a woman aged 32 took her own life at work in Paris

A woman tried to kill herself in the eastern city of Metz on learning that she was about to be transferred for the third time in a year

In 2011, a worker aged 57 killed himself as he arrived at work near Bordeaux.--BBC

BHP Billiton 'woefully negligent' over Brazil dam collapse

Mining giant BHP Billiton is facing a $5bn (£3.8bn) claim for damages over a dam collapse in Brazil in 2015.

Law firm SPG, which is representing than 200,000 Brazilian claimants, said the company "knew of the risks" at the Samarco mine in Minas Gerais state.

The claim, which was served at Liverpool's High Court on Tuesday, is the largest in UK legal history.

BHP, an Anglo-Australian firm listed in London, rejects all of the charges.

How do you clear tonnes of toxic sludge?

BHP faces new lawsuit over Brazil disaster

Tom Goodhead, partner at SPG, said: "The repeated warnings and recommendations of dam safety experts were acted upon too slowly, or sidestepped entirely.

"Driven by concern for declining revenues amidst the falling market price of iron ore, the company took risks, increased production and turned a blind eye to dangers that ultimately claimed lives and destroyed communities."

The Samarco disaster in Minas Gerais state, south-eastern Brazil, killed 19 people and displaced 700, and is considered the country's worst environmental disaster.

When the dam burst, it unleashed a deluge of thick, red toxic mud that wiped out the village of Bento Rodrigues.

It also polluted the Rio Doce river and Atlantic Ocean 650km away, devastating wildlife and tainting drinking water for hundreds of thousands of people.

The lawsuit is being brought on behalf of 235,000 Brazilian people and organisations, including municipal governments, indigenous tribes, utility companies and the Catholic Church.

It claims BHP failed to act on repeated warnings from independent experts about the dam's integrity.

'Entirely commensurate'

Instead, it claims the mine continued to increase output of iron ore, leading to heightened water levels.

Mr Goodhead said: "BHP was woefully negligent in its duty of care and the damages sought are entirely commensurate with the devastation the company has wrought upon the people of Minas Gerais, [the state of] Espirito Santo and Brazil."

BHP has rejected all charges against the company, as well as current and former staff.

On Tuesday company spokesman Neil Burrows said the miner intended to defend itself against the claim.

Samarco, the mining company involved in the disaster, is co-owned by BHP and Brazilian firm Vale.

Both firms have faced big fines in Brazil, and have had to pay millions of dollars into compensation and remediation programmes.

BHP has separately settled a class action by US investors over the disaster and continues to battle Australian shareholder lawsuits,--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.

(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=AFQjCNH8LYgdY55h-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%2FBullsBearsZimbabwe&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/20190508/195bfd16/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/20190508/195bfd16/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/20190508/195bfd16/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/20190508/195bfd16/attachment-0008.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 29388 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20190508/195bfd16/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/20190508/195bfd16/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/20190508/195bfd16/attachment-0011.jpg>