Major International Business Headlines Brief::: 08 November 2019

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Major International Business Headlines Brief::: 08 November 2019

 


 

 


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

 


 

 


 

 

*  S.Africa manufacturing, business confidence falls take shine off
investment drive

*  Saipem wins $100 mln Equatorial Guinea pipeline contract

*  Senegal's new energy bid process to ensure transparency - state firm

*  Dry, hot weather threatens South African grain crops

*  Glencore strikes deal with Katanga over $5.8 billion rights issue

*  African pay-TV group MultiChoice forecasts profit rise

*  South African retailer TFG's H1 profits up 3%

*  South Africa's Truworths sees sales tick up for first part of 2020

*  Congo disputes Canadian miner Banro's suspension of operations

*  Lufthansa scraps 1,300 flights in 48-hour strike

*  Ex-Twitter employees accused of spying for Saudi Arabia

*  Bank split on rates as it warns Brexit deal would hit growth

*  Bill Gates criticises Elizabeth Warren's plan for tax on super-rich

*  Potential US China trade deal could remove tariffs

*  The shareholders fighting to make oil firms greener

*  City traders: We want shorter working hours

*  Netflix to disappear on older Samsung smart TVs

 

 


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S.Africa manufacturing, business confidence falls take shine off investment
drive

JOHANNESBURG (Reuters) - South Africa’s manufacturing contracted by more
than expected and business confidence tumbled in data released on Thursday,
casting further doubt over the economy a day after President Cyril Ramaphosa
secured $24 billion of investment pledges.

 

A worker inspects cars at Nissan's manufacturing plant in Rosslyn, outside
Pretoria, file. REUTERS/Siphiwe Sibeko

Industrial output fell 2.4% year-on-year in September and by the same margin
on a monthly basis, according to data from the statistics agency on
Thursday.

 

A Reuters survey of economists had forecast a marginal 0.6% annual
contraction and a 0.2% fall over the month.

 

All major sub-sectors bar food were down, with a notable swing in iron ore
products to a 4.8% contraction from a positive contribution in the previous
month. Textile, furniture and wood products also showed steep declines.

 

Earlier, a business confidence survey for October showed investors and
managers were downbeat about the economy, mainly over decreased export and
import volumes, a weaker exchange rate depreciation, and electricity supply
disruptions after Eskom again cut nationwide supply.[nJ8N22B01Z]

 

“Today’s data is indicative of a very, very weak economic macroeconomic
climate,” said BNP Paribas analyst Jeffrey Schultz.

 

“It means manufacturing probably detracted from GDP in the third quarter,
which is worrisome, especially how that feeds into the fiscal.”

 

In his budget speech last Wednesday Finance Minister Tito Mboweni slashed
the 2019 gross domestic product (GDP) forecast to 0.5% from 1.5%, announced
a larger budget deficit and public debt rocketing to more than 70% of GDP in
the next three years.[nL8N27F5LX]

 

Analysts say some of the pledges at the annual investment summit are just
regular operating costs and are unlikely to boost economic growth and
employment significantly in the short-term.[nL8N27M523]

 

“Ramaphosa keeps speaking about reforms but now need to see the
implementation,” said economist at ETM Analytics Kieran Siney.

 

“The investment summit has been encouraging but realistically, it won’t make
the kind of structural impact needed to turn things around.”

 

 

 

 

 

 

 

 

 

 


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Saipem wins $100 mln Equatorial Guinea pipeline contract

CAPE TOWN (Reuters) - Italy’s Saipem has been awarded a contract in
Equatorial Guinea worth $90-$100 million to build a 70 km subsea pipeline
linking the Alen platform with the Punta Europa petrochemical hub, the oil
ministry said on Thursday.

 

Gas deliveries from the project, operated by Noble Energy, are expected to
begin in early 2021, Oil Minister Gabriel Obiang Lima said in a statement.

 

 

The pipeline will serve offshore gas fields and have a capacity for 950
million cubic feet of gas per day as Equatorial Guinea looks to extend the
life of its liquefied natural gas (LNG) production assets.

 

“We anticipate that this contract, which is being approved exceptionally
under the given circumstances, will contribute immensely to improving the
performance of local businesses and the creation of employment,” Obiang Lima
said.

 

 

Equatorial Guinea, a small West African member of the Organization of the
Petroleum Exporting Countries, derives more than 90% of its foreign revenue
from oil and gas.

 

The pipeline forms part of plans to link various offshore gas fields to
onshore LNG facilities and turn the island of Bioko into a gas processing
hub.

 

 

 

 

Senegal's new energy bid process to ensure transparency - state firm

(Reuters) - Senegal’s new legally-binding bid process will ensure the
transparency of a new oil and gas licensing round, the managing director of
the national oil company said on Thursday.

 

“Today we are setting new laws on the transparency we need to have.
Everything that is done upstream will be transparent so that people will
know what’s going on,” Petrosen Mamadou Faye told Reuters.

 

“When it comes to the licensing round, door-to-door or direct negotiation
will be avoided when we can do otherwise. People used to think that by this
negotiation there was a lot of corruption — they thought (this), but it was
not true.”

 

 

 

Dry, hot weather threatens South African grain crops

JOHANNESBURG (Reuters) - Farmers in South Africa are concerned that a
drought and hot weather could delay the coming season’s plantings of grain
crops and damage yields.

 

“In certain areas it is very, very dry. We are concerned about parts of the
Limpopo Province, big parts of Northern Cape, Eastern Cape and parts of the
Western Cape,” said agricultural industry body AgriSA Executive Director
Omri van Zyl.

 

Maize and soybeans are the main grain crops in South Africa and farmers were
hit by a disastrous El Nino-induced drought in 2015/2016 and faced late
rains in the 2018/2019 season.

 

In the current planting season, severe drought linked to climate change has
scorched land across southern Africa and U.N. agencies have warned that a
record 45 million people face food shortages.

 

The region’s temperatures are rising at twice the global average, according
to the International Panel on Climate Change. In much of South Africa, an
unusually hot, dry summer has dwindled water supplies this year.

 

Maize planting in eastern South Africa - the continent’s biggest producer -
has been delayed, Grain SA CEO Jannie de Villiers told Reuters.

 

“We are concerned that we won’t be able to make it because normally the
planting window for the Mpumalanga province and KwaZulu-Natal is up to the
15th of November,” said de Villiers, adding that he could not yet estimate
how much had been planted.

 

The South African Weather Service expects lower than normal rainfall from
November to January over the eastern parts of the country, while
above-normal rainfall is predicted for the western to central parts of the
country.

 

Forecasts also predict below-normal rainfall conditions until March with
higher temperatures across the country. The most critical time for yields
runs from October to February.

 

“What makes matters worse is that the season we are coming from, 2018/2019
production season, was not particularly a good one. Now if we are followed
by another season that is dry that could lead to a really poor performance,”
said Agricultural Business Chamber economist Wandile Sihlobo, adding that it
was too early to estimate the impact.

 

Early estimates for the 2019/2020 season expect farmers to plant 2.519
million hectares of maize.

 

“The farmers, a lot of them are at the last crop they can afford to plant.
If they are not going to make this one ... a lot of them (are) going out of
business,” said de Villiers.

 

Lower maize yields would also drive up animal feed costs, as the eastern
part of the maize belt, which makes up around 40% of the output, mainly
produces yellow maize used in animal feed.

 

The late rains have also hit agricultural machinery sales with October
tractor sales down 30% and combine harvester sales 59% lower year-on-year,
data from the South African Agricultural Machinery Association showed on
Thursday.

 

Agri SA is conducting a survey of farmers, which it expects to release next
week, to access the impact of the dry weather.

 

 

 

Glencore strikes deal with Katanga over $5.8 billion rights issue

LONDON (Reuters) - Katanga Mining Limited, a big Congolese copper and cobalt
producer, said on Thursday it would raise around $7.6 billion Canadian
dollars ($5.8 billion) via a rights issue as part of a debt-for-equity swap
with parent Glencore.

 

The logo of commodities trader Glencore is pictured in front of the
company's headquarters in Baar, Switzerland, July 18, 2017. REUTERS/Arnd
Wiegmann/File Photo

Katanga Mining will subsequently owe Glencore $1.5 billion, reducing its
debt from $7.7 billion after experiencing setbacks including a fall in the
price of cobalt from record levels of $95,000 per tonne in 2018 to around
$35,000 now.

 

Thursday’s statement said Glencore, which owns approximately 86.3% of
Katanga, had agreed to swap $5.8 billion in debt for equity, which will
raise its stake further in the firm. Remaining shareholders will also have
the chance to take up the rights issue, but it is not yet clear whether they
will.

 

The residual debt of $1.5 billion will remain outstanding until 2023.

 

Given the negative outlook for the cobalt market Katanga said its directors
had agreed that recapitalising the company now was the best way forward.

 

The debt was scheduled to be paid by Jan. 1, 2021 and recapitalising now
will be less dilutive in the event Katanga’s creditworthiness deteriorates
further.

 

Glencore’s share price, which has fallen around 10% this year, was trading
1% higher by 1503 GMT.

 

Glencore enjoyed a sustained rally as the push for battery minerals
encouraged investors to overlook the risk of operating in Democratic
Republic of Congo.

 

But its share price has underperformed other major miners and its profits
have dropped as Glencore has fallen into dispute with the Congolese
government over a mining law and been subject to a U.S. Department of
Justice investigation.

 

It said in July it had begun an overhaul of its underperforming Africa
business.

 

In a note, Citibank analysts said the recapitalisation would have “limited
impact” on Glencore’s balance sheet.

 

($1 = 1.3162 Canadian dollars)

 

 

 

African pay-TV group MultiChoice forecasts profit rise

JOHANNESBURG (Reuters) - Africa’s biggest pay-TV group MultiChoice said on
Thursday it expects its core headline earnings per share (HEPS) for the
first half of the year to be between 20% and 25% higher than during the same
period last year.

 

The company, which was spun off by South African e-commerce giant Naspers in
February, said its standard HEPS and trading profit were also expected to
rise thanks mostly to reduced losses in its businesses outside of South
Africa.

 

HEPS, the main profit measure in South Africa, would be between 256 cents
and 271 cents higher for the six months to Sept. 30, compared to the prior
year’s 78 cents, thanks also to favourable foreign exchange movements, the
company said in a statement.

 

MultiChoice shares were up 0.52% to 124.9 rand by 1417 GMT.

 

 

 

South African retailer TFG's H1 profits up 3%

JOHANNESBURG (Reuters) - South African retailer The Foschini Group (TFG) on
Thursday reported a 3% rise in profit for the six months to Sept. 30.

 

The firm, which sells clothes, jewellery, homewares and furniture, said its
headline earnings per share (HEPS) rose to 526.7 cents from 506 cents a year
earlier.

 

 

 

South Africa's Truworths sees sales tick up for first part of 2020

JOHANNESBURG (Reuters) - South Africa’s Truworths International Ltd reported
on Thursday a 2% rise in retail sales for the first 18 trading weeks of its
2020 financial year despite a difficult conditions.

 

The South African-listed clothing, shoes, jewellery and homeware retailer
said sales rose to 6.3 billion rand ($427 million) during the period from
July 1 to Nov. 3, with an increase in sales from its African business.

 

($1 = 14.7611 rand)

 

 

 

 

Congo disputes Canadian miner Banro's suspension of operations

KINSHASA (Reuters) - Democratic Republic of Congo has declared “null and
void” Canadian gold miner Banro Corporation’s suspension of operations at
several of its sites in the central African country.

 

In September Banro said its Namoya mine in eastern Congo was overwhelmed by
Mai Mai militiamen, forcing the miner to declare force majeure and suspend
operations at its Namoya, Lugushwa, and Kamituga sites while its Twangiza
site remained operational.

 

It was the culmination of months of attacks on the mine during which several
employees were kidnapped.

 

In a letter to Banro management dated Nov. 4, seen by Reuters, the minister
of labour and social welfare Néné Ilunga Nkulu disputed Banro’s declaration
of force majeure - a legal clause that, when invoked, can free a company
from meeting contractual obligations.

 

The minister said Banro did not go through the proper procedures in
declaring force majeure.

 

Among other reasons for disputing force majeure she said that Namoya is
still in production, and that Banro Corporation has no legal identity in DRC
and therefore does not exist.

 

The government claims it is Banro’s subsidiaries in Congo that have legal
status in the country, not the Canada-based parent.

 

 

Banro Chief Executive Officer Brett Richards told Reuters he has power of
attorney to demand force majeure on behalf of Banro’s Congo subsidiary
companies. Still, he said he plans to re-submit the request through the
directors of the subsidiaries.

 

Richards also disputed the minister’s claim that Namoya is still in
production, saying the mine has been inactive since he ordered evacuation of
the site on Sept. 16.

 

It was not immediately possible to independently verify Namoya’s production
status.

 

Auguy Musafiri, governor of Maniema province where Banro’s Namoya gold mine
is located, told Reuters he is in negotiations with Banro over the
suspension which would result in mine employees losing their jobs, hurting
the region’s economy.

 

Richards said his main priority was winning government support to secure the
mining sites.

 

“The matter before us is the security issue and that needs to be resolved
before we restart the mine,” he said in a phone interview.

 

Richards met with President Felix Tshisekedi on Sept. 24 and subsequently
spoke with several ministries to coordinate a response to the militia.

 

“It’s being secured by private security and by the government,” he said.

 

 

 

Lufthansa scraps 1,300 flights in 48-hour strike

Lufthansa has cancelled 1,300 flights after it lost a last-minute legal bid
to halt a strike by cabin crew.

 

The two-day action over pay and conditions began at midnight local time.
About 180,000 passengers are set to face travel disruption.

 

The UFO union said it would hit all Lufthansa flights from German airports.

 

Flights by Lufthansa's other airlines including Eurowings, Swiss, Austrian
Airlines, and Brussels Airlines are not affected, the airline said.

 

Lufthansa has cancelled 700 flights on Thursday and 600 on Friday, amounting
to about one-fifth of its planned flights over the 48-hour period.

 

It said it regretted the inconvenience caused, adding: "We will do
everything we can to minimise the impact of this massive strike on our
customers."

 

On Wednesday, a Frankfurt labour court rejected Lufthansa's application to
prevent the strike, which is part of a long-running dispute at the airline.

 

Lufthansa has said passengers travelling between German airports can
exchange their tickets online for rail tickets. Other passengers will be
offered alternative flights.

 

The union's vice-president, Daniel Flohr, has warned that further strikes
could come "at any time".--BBC

 

 

 

Ex-Twitter employees accused of spying for Saudi Arabia

Two former employees of Twitter have been charged in the US with spying for
Saudi Arabia.

 

The charges, unsealed on Wednesday in San Francisco, allege that Saudi
agents sought personal information about Twitter users including known
critics of the Saudi government.

 

Court documents named the two as Ahmad Abouammo, a US citizen, and Ali
Alzabarah, from Saudi Arabia.

 

A third person, Saudi citizen Ahmed Almutairi, is also accused of spying.

 

The New York Times says it is the first time that Saudi citizens have been
charged with spying inside the United States.

 

What are the charges?

Ahmad Abouammo appeared in a Seattle court on Wednesday and was remanded in
custody pending another hearing due on Friday.

 

He is also charged with falsifying documents and making false statements to
the FBI.

 

The criminal complaint says he provided the FBI with a falsified, back-dated
invoice charging an unnamed Saudi official $100,000 for "consulting
services".

 

Mr Abouammo is said to have left his job as a media partnership manager for
Twitter in 2015.

 

Mr Alzabarah, a former Twitter engineer, is accused of accessing the
personal data of more than 6,000 Twitter users in 2015 after being recruited
by Saudi agents.

 

Trump defends Saudi ties despite Khashoggi murder

Saudi Arabia country profile

One of the Twitter accounts he allegedly accessed also appeared in a note
found in a Saudi official's email account, revealing the level of detail Mr
Alzabarah was able to obtain about the user.

 

According to the complaint, the note read: "This one is a professional. He's
a Saudi that uses encryption... We tracked him and found that 12 days ago he
signed in once without encryption from IP [redacted] at 18:40 UTC on
05/25/2015. This one does not use a cell phone at all, just a browser. He's
online right using Firefox form [sic] a windows machine."

 

Mr Alzabarah was confronted by his supervisors and placed on administrative
leave before fleeing to Saudi Arabia with his wife and daughter,
investigators said.

 

The charges allege the third person - Mr Almutairi - acted as an
intermediary between the two Twitter employees and Saudi officials.

 

Mr Alzabarah and Mr Almutairi are both believed to be in Saudi Arabia.

 

The Saudi government allegedly paid the men hundreds of thousands of
dollars. One man also received a luxury Hublot watch, worth about $20,000
(£15,500).

 

A key US ally

In a statement, Twitter said it recognised "the lengths bad actors will go
to" to try to undermine its service.

 

It added: "We understand the incredible risks faced by many who use Twitter
to share their perspectives with the world and to hold those in power
accountable. We have tools in place to protect their privacy and their
ability to do their vital work."

 

Media captionWhy do Trump's Saudi job numbers keep growing?

Saudi Arabia is a key US ally in the Middle East.

 

President Donald Trump has maintained close ties with the kingdom despite
international condemnation following the murder of dissident journalist
Jamal Khashoggi last year.

 

Mr Khashoggi was murdered during a visit to the Saudi consulate in
Istanbul.--BBC

 

 

 

Bank split on rates as it warns Brexit deal would hit growth

The Bank of England has warned that weak global growth and trade barriers
created by the government's Brexit deal will hit the UK economy.

 

It came as two Bank policymakers called for an immediate interest rate cut
to support growth.

 

The Bank voted 7-2 to keep interest rates on hold at 0.75%.

 

The Bank said the new EU withdrawal agreement struck by Prime Minister Boris
Johnson had reduced the likelihood of a no-deal Brexit.

 

The Monetary Policy Committee (MPC) that sets interest rates said this would
end some of the uncertainty facing businesses and households.

 

However, policymakers added that the transition to a new trade deal would
introduce new customs checks and regulatory barriers.

 

The MPC said its assumption of a Canada-style "deep free-trade agreement"
between the UK and EU would "raise administrative costs for firms" doing
business with the continent.

 

What's the outlook for growth?

Mark Carney, the governor of the Bank of England, said the Brexit deal had
created "the prospects for a pick-up in UK growth".

 

The Bank expects the annual pace of growth to rise from around 1% at the end
of this year to more than 2% by the end of 2022.

 

Mr Carney said this would be helped by "a world that has stopped weakening
and picks up a little bit".

 

He added: "three-quarters of that rise in growth is driven by domestic
factors - the most important of which is a reduction in uncertainty driven
by an orderly transition to a new Brexit arrangement."

 

However, the Bank's Monetary Policy Report said a weaker global economy and
its new assumptions about Brexit would knock 1% off UK growth over the next
three years compared with its forecast in August.

 

Policymakers believe the UK economy grew 0.4% in the three months to
September this year, double their estimate in August, amid a recovery in the
UK's dominant services sector.

 

However, growth in the final quarter of the year is expected to fall back to
0.2%.

 

How big is the UK's economy?

Spending pledges by the government are expected to boost growth in the
coming years.

 

The Bank also cited research that showed the current level of business
investment is about 11% lower because of Brexit uncertainty.

 

What else did the Bank say about Brexit?

For the first time, Bank policymakers changed their assumption about the
UK's future trading relationship with the EU.

 

They had previously assumed an average of a range of Brexit outcomes that
filter through to the economy over 15 years.

 

It now assumes the government will strike a free-trade agreement with
Brussels that will keep goods tariffs at zero but introduce customs checks
at the border.

 

With the transition period currently due to expire at the end of 2020, the
drag on growth from new regulatory barriers will now be more immediate.

 

Policymakers said: "As a result, trade flows are likely to fall and some
companies might exit the market."

 

Diverging regulations are also expected to hit a wide variety of sectors
across the EU, from law to banking.

 

The Bank also suggested that trade deals with new partners would be years
away, reflecting the fact that "it typically takes several years for new
trade deals to be negotiated and implemented".

 

What's the outlook for interest rates?

Michael Saunders and Jonathan Haskel, two of the Bank's external
rate-setters, voted to cut interest rates to 0.5%, from the current rate of
0.75%.

 

They said inflation, which currently stands at 1.7%, suggested that there
was little risk that the economy would overheat in the medium term if
interest rates were cut.

 

The MPC expects inflation, as measured by the consumer prices index (CPI),
to fall to about 1.2% by next spring as the impact of the government's
energy price cap kicks in.

 

This is well below the Bank's 2% target.

 

While the unemployment rate remains below 4%, which is its lowest since the
1970s, Mr Saunders and Mr Haskel said they believed recent data suggested
the "labour market was turning".

 

They also said there was a risk that world growth could be weaker and Brexit
uncertainties could persist for longer than the MPC's assumptions.

 

Financial markets believe interest rates will be cut to 0.5% in the coming
year, and Mr Carney said the MPC would respond to developments in the
economy accordingly.

 

Lower interest rates are good news for borrowers and bad news for savers, as
commercial banks use the Bank of England as a reference point for the rates
they offer on mortgages and savings accounts.

 

Will Mark Carney delay his departure from the Bank?

Bank governor Mark Carney is due to stand down from his role on 31 January
next year. However, at the Bank's news conference, he opened the door to
staying on beyond that date.

 

He said that he had already agreed to extend his term twice, in order to
ensure the financial system was prepared for Brexit and also to ensure a
proper handover to his successor.

 

Mr Carney said it was understandable that a decision on the new governor had
not been made, "given the priority" that the Brexit negotiations have taken.

 

He committed to making sure that the transition to the new governor was
"smooth".--BBC

 

 

 

Bill Gates criticises Elizabeth Warren's plan for tax on super-rich

Bill Gates has become the latest billionaire to express concern for
presidential hopeful Elizabeth Warren's plan for a new tax on the
super-rich.

 

At a conference, the philanthropist and Microsoft founder said it would
stifle business innovation in America.

 

Ms Warren, a Democratic front-runner in the 2020 presidential race, has
offered to meet Mr Gates in response.

 

It comes after criticism of Ms Warren's policy from figures like Jamie
Dimon, head of banking giant JP Morgan.

 

Under the original plan, households with a net worth between $50m (£39m) and
$1bn (£780m) will be charged with a 2% "wealth tax" every year. This would
rise to 3% for any households with a net worth of over $1bn.

 

But last week, Ms Warren suggested doubling the latter rate - from 3% to 6%.
She said the money raised from this new tax would be used to fund her
healthcare plan, which is expected to cost the federal government $20.5tn
over 10 years.

 

Mr Gates hit back at the idea during a talk at the New York Times DealBook
conference in New York on Wednesday.

 

Are US billionaires really going to pay more tax?

'Those of us who are blessed must pay more tax'

"I'm all for super-progressive tax systems," he said. "I've paid over $10bn
in taxes. I've paid more than anyone in taxes. If I had to pay $20bn, it's
fine.

 

"But when you say I should pay $100bn, then I'm starting to do a little math
about what I have left over. Sorry, I'm just kidding," he added.

 

"So you really want the incentive system to be there and you can go a long
ways without threatening that."

 

Mr Gates is the second-richest person in the world, according to Forbes
magazine, with a net worth of $106.2bn.

 

When asked if he would be willing to meet with her about the policy, Mr
Gates said he wasn't sure if Ms Warren would "sit down with somebody who has
large amounts of money".

 

Hours after his comments, Ms Warren said she would "love" to meet Mr Gates
to explain her plan in more detail.

 

Tax reform has become a key talking point among contenders for the US
presidential election. The debate has been partially spurred by tax reform
under Donald Trump's administration, which the president dubbed "the biggest
tax cut in history".

 

Mr Trump said cuts would help to boost the economy, but critics argue they
disproportionately benefit the country's wealthiest individuals.

 

Earlier this year, a group of America's richest people penned an open letter
calling on presidential candidates to roll out a wealth tax on the
super-rich.

 

"America has a moral, ethical and economic responsibility to tax our wealth
more," they said in a letter, proposing that the money be spent on tackling
climate change and economic inequality.

 

Signatories included investor George Soros and Facebook co-founder Chris
Hughes. The group said they were non-partisan and not endorsing any
candidate.--BBC

 

 

 

Potential US China trade deal could remove tariffs

The US and China have reportedly agreed to roll back tariffs as part of any
new trade deal.

 

The reports come amid rising hopes that the two countries will sign a pact
that declares an end to a trade fight that has disrupted the global economy.

 

Officials have described the in-the-works agreement as a partial, "phase
one" deal that is unlikely to fully address issues over technology theft
that helped launch the fight.

 

No signing date has been settled.

 

The two sides had been expected to present a phase one deal at a gathering
of world leaders in Chile before the end of the year, but the country
cancelled two summits planned for the coming weeks after domestic protests.

 

China had been pressing the US to remove tariffs on its goods as part of any
deal.

 

A spokesman for its Commerce Ministry said the two sides had agreed to
cancel the tariffs "in stages" as the agreement develops.

 

On Thursday, Reuters and Bloomberg reported that a US trade official had
confirmed that some tariffs would be lifted, should a deal be reached.

 

But US negotiators did not publicly endorse the report and Reuters later
reported that the plan faces "fierce" internal opposition.

 

Stock markets gained on the reports, seeing them as a sign that a deal is
getting closer.

 

Global growth

The US and China have imposed tariffs on each others' goods, worth billions
of dollars worth of annual trade since last year.

 

The duties have hurt trade, acting as a drag on the economies of both
countries and putting pressure on their leaders to strike an agreement.

 

The International Monetary Fund estimates that the US-China trade war will
shave almost a percentage point off of global growth this year.--BBC

 

 

 

The shareholders fighting to make oil firms greener

It is not every day that a surfer and environmental campaigner addresses the
annual general meeting of one of the world's biggest oil companies.

 

But that is what happened earlier this year, when Australian Heath Joske
spoke to shareholders of the Norwegian firm Equinor at its AGM in the city
of Stavanger.

 

He implored them to back a resolution, brought by a small group of
investors, to stop Equinor's plans to drill for oil in the Great Australian
Bight - a stretch of coastline in South Australia said to be one of the most
unspoiled marine environments in the world.

 

Oil-and-gas extraction posed huge risks to local wildlife and the climate,
says Mr Joske, who lives in the region.

 

"We see your plans to drill in the Bight as a direct threat to our culture
and identity," he told the meeting.

 

It is just the latest example of how so-called shareholder activism is being
used to try to pressure big energy firms to adopt greener policies.

 

Mr Joske was speaking on behalf of an alliance of environmental groups - led
by Greenpeace Norway and the World Wildlife Fund - that had purchased enough
shares in Equinor to be able to bring their resolution to the AGM.

 

The motion called on the company to stop oil-and-gas exploration and
production in "frontier" and "pristine" environments that would include the
Bight.

 

While it did not secure enough shareholder votes to pass, it did generate
publicity for the campaign, which aims to convince Australia's regulator to
reject Equinor's proposals when it announces its decision later in November.

 

"Shareholder activism, and the dialogue that it produces between
shareholders and a company's board, is a critical element of good corporate
governance," says Brynn O'Brien, the head of the Australasian Centre for
Corporate Responsibility (ACCR).

 

The ACCR backed the Equinor motion in May, and has filed others like it
against firms such as BHP Billiton and Rio Tinto.

 

Ms O'Brien adds: "Even though resolutions that are not supported by boards
rarely pass, they quite often produce change in terms of company commitments
to increased action to reduce emissions."

 

'I gave up a big salary for Extinction Rebellion'

They can also convince firms to stop lobbying that is "inconsistent" with
the goals of the 2015 Paris Agreement, which aims to reduce the risks and
impacts of climate change globally.

 

One of the most successful activist groups has been Climate Action 100+, a
global network of institutional investors that targets the world's 100
largest corporate greenhouse gas emitters.

 

Its 370 members, which have $35tn (£27tn) of assets under management,
include well-known names such as Aberdeen Standard, the Church of England
Pensions Board and HSBC Global Asset Management.

 

In March, the group, working with others, forced the oil giant Shell to make
a legally binding commitment to use a broader definition of greenhouse gas
emissions in its carbon-reduction targets.

 

Global Trade

More from the BBC's series taking an international perspective on trade:

 

Should Germany spend more to revive its economy?

Tensions highlight the importance of global trade

Why 'hypebeasts' have fallen for Asian streetwear

Can a sacred drink boost an island's fortunes?

Commenting on the resolution at the time, Shell said it acknowledged and
agreed with the "importance attached by its investors to the issue of
climate change". It also said the company's future success was "contingent
on its ability to effectively navigate the risks and the opportunities
presented by climate change".

 

In another example, at BP's AGM in Aberdeen in May, Climate 100+ secured
overwhelming approval for a motion that called on the oil giant to document
its efforts to meet Paris Agreement goals in quarterly reports.

 

As shareholder resolutions are almost always non-binding, BP could have
chosen to ignore it. But the oil firm had held discussions with Climate 100+
before its AGM and agreed to support the proposal.

 

"Climate 100+ have been really interesting to watch because they employ an
engagement-first model as opposed to a shareholder proposal-first model,"
says Courteney Keatinge, head of environment at shareholder advisory Glass
Lewis.

 

"It has worked with the targeted companies, trying to understand their
positions and priorities, prior to submitting a shareholder proposal, which
is often seen as a more combative move by companies."

 

Despite such successes, major greenhouse gas emitters continue to extract
and burn fossil fuels, and Ms Keatinge suggests there is only so much
shareholder activists can do.

 

"Without strong regulatory pressure and market incentive, companies are
going to continue to take oil and coal out of the ground at their
discretion.

 

"There's a market for energy and if those needs are not being met, companies
are going to find a way to meet them."

 

Despite pressure from shareholders and campaigners, Equinor still hopes to
start drilling in the Bight. It argues it has a safe drilling record and
that the project would benefit both its shareholders and the people of South
Australia.

 

"Production from existing oil and gas fields is declining, and there is a
need for new supply to meet the future demand for energy," says spokesman
Erik Haaland.

 

"Even in recognised scenarios for the future that are aligned with the goals
of the Paris Agreement, there is considerable need for oil and gas over the
next decades."

 

'Costs rising'

However, Ms O'Brien believes that the company could end up facing legal
action if its plans for the Bight go ahead. That's because new drilling
projects are highly expensive, while the oil market has been volatile
recently.

 

"The break-even point - how much a barrel of oil would have to be worth to
justify the capital expenditure on the infrastructure that goes along with a
frontier drilling operation - is rapidly rising," she says.

 

"If shareholders - including the Norwegian people [Equinor is 67%
state-owned] private investors and other states - lose money, they may be
able to sue for losses if these decisions are found in the circumstances to
have been unreasonable."

 

Australia's National Offshore Petroleum Safety and Environmental Management
Authority will announce its decision on Equinor's plans for the Bight on 14
November. It has rejected a similar application from BP in the past.

 

>From his home in South Australia, Mr Joske tells the BBC that if drilling
goes ahead then community opposition will intensify.

 

He also believes that the shareholder resolutions brought at Equinor's May
AGM were worthwhile, even though the firm has not changed course.

 

"Nothing's changed here. We're just waiting on the decision right now and if
they tick it off things will escalate, opposition-wise, for sure."--BBC

 

 

 

City traders: We want shorter working hours

City traders have urged UK and European exchanges to cut trading hours to
improve work-life balance.

 

They say the long hours are bad for mental health and are not exactly
family-friendly.

 

"It's hard to find childcare at five o'clock in the morning," said April
Day, head of equities at the Association for Financial Markets in Europe
(AFME).

 

The idea is for exchanges to open 09:00 to 16:00, instead of 08:00 to 16:30.

 

The AFME is pushing for the change alongside fellow trader body the
Investment Association.

 

Shorter trading hours on equity markets would cut pressure on traders and
attract a more diverse range of workers, it said.

 

Millennial men demand better parental leave

UK one of 'least family friendly' countries in Europe

Stock market trading has traditionally been seen as male-dominated, lagging
behind other areas of financial services in terms of attracting women into
roles,

 

The AFME's Ms Day said her organisation had been lobbying stock exchanges in
London, Paris, Germany and the Nordic region.

 

"A shorter working day would improve flexibility for employees and attract a
more diverse range of individuals on to trading floors," she added.

 

The London Stock Exchange said it would launch a consultation on the
request.

 

Traders in the UK and elsewhere in Europe normally work for a few hours
either side of the current 8.5 trading hours, Ms Day said.

 

By contrast, US exchanges are open for 6.5 hours and Asian exchanges for 6.

 

A knock-on effect of having a smaller intake of women in junior positions
means that there are relatively few women in senior management positions in
investment and banking trading, Ms Day said.

 

Juggling work and childcare responsibilities can be a challenge for both men
and women, she added.

 

Nikki Martin has worked in the City for almost 20 years as a money manager
and trader. After having a daughter she said she needed to hire a nanny so
she could leave the house at 05:30 to arrive at work on time.

 

Fitting in work and client meetings sometimes means late nights.

 

"When I have client dinners that I need to attend it pretty much kills me as
getting to bed at, say, eleven with a four-thirty alarm is not pleasant, not
to mention the fact that I don't see my child as much as I would like to,"
she says.

 

"It is a long day, it is a stressful job and doing this five days a week
leads to burn out," she says.

 

Nowadays she works one or two days a week from home. But she says she knows
so many women that have left the industry or have moved sideways because
"bringing up a child is just not compatible with the job".

 

"Shorter trading hours in my mind would undoubtedly go some way towards
rectifying this issue."

 

Long hours in a high-pressure job can also exacerbate any mental health
difficulties traders may be suffering, Ms Day added.

 

Galina Dimitrova, director of capital markets at the Investment Association,
concurred: "We have heard many deeply moving stories of traders' mental
health and personal life being impacted by their working hours.

 

"Whilst it is no silver bullet, we hope this European-wide review could
start to lead to a step change in more efficient markets to the benefit of
savers and those who operate them."

 

The London Stock Exchange said it strongly supported improving diversity and
workplace culture in the City.

 

It said the call from the trader associations was "an important suggestion
for a European-wide adjustment to trading hours".

 

"We intend to consider the request in a formal consultation with London
Stock Exchange's global members and customers," it added.--BBC

 

 

 

Netflix to disappear on older Samsung smart TVs

Samsung has announced that Netflix will no longer be supported on some of
its older smart TVs.

 

>From 1 December, the Netflix app will no longer work on some 2010 and 2011
models due to "technical limitations".

 

Seven older Roku streaming sticks will also no longer support Netflix from
December, Roku told Digital Trends.

 

Netflix can be watched on smart TVs, set-top boxes, streaming media players
and video consoles. Users can check if their devices are compatible here.

 

"Samsung was recently notified by Netflix that as of 1 December, the Netflix
app will no longer be supported on selected 2010 and 2011 Smart TV models
sold in Canada and the US," Samsung said in a statement.

 

"For consumers with these models, there are still many other devices
supported by Netflix that can be connected to a Smart TV in order to access
the app."

 

Jim Martin, editor of tech reviews website Tech Advisor, says consumers
should check whether any of the other devices they own can be used to access
Netflix.

 

"It's partly the price of being an early adopter," he told the BBC.
"Technology moves quite quickly and nothing lasts forever."

 

He added that people who want to keep accessing streaming services on their
existing smart TV could plug in a streaming stick.

 

Roku said the older streaming stick models that would no longer support
Netflix included the Roku 2050X, Roku 2100X, Roku 2000C, Roku HD Player,
Roku SD Player, Roku XR Player and Roku XD Player.--BBC

 

 

 

 

 

 

 

 


 

 


 

INVESTORS DIARY 2019

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


Bindura Nickel Corporation

 

 

 


Padenga Holdings

 

 

 


Delta Corporation

 

 

 


Meikles Limited

 

 

 


 <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
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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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