Major International Business Headlines Brief::: 12 November 2019

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Major International Business Headlines Brief::: 12 November 2019

 


 

 


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*  S.Africa's Absa to open New York office by end of the year

*  Egypt targets 6.4% growth, 6.2% deficit in fiscal 2020/2021 - finance
ministry

*  MultiChoice profits leap on cost controlling measures

*  African oil states offer new deals to lure more selective investors

*  Vodacom posts 19% H1 profit rise a year after share scheme hit

*  Congo central bank lowers 2019 GDP growth forecast to 4.6%

*  ArcelorMittal South Africa to close Saldanha operation

*  Kenyan shilling firms to 4-month high, helped by remittances

*  Jingye to invest £1bn and save 'thousands of British Steel jobs'

*  Chancellor: There'll be changes to customs with EU

*  Formula 1 launches a plan to become carbon neutral by 2030

*  Uber CEO calls Jamal Khashoggi murder 'serious mistake'

*  Alibaba sees strong sales as Singles' Day beats record

*  The US-China fight over AI: 'We're over-reacting'

*  UK growth 'slowest in almost a decade'

 

 


 <mailto:info at bulls.co.zw> 

 


 

S.Africa's Absa to open New York office by end of the year

JOHANNESBURG (Reuters) - South African lender Absa said on Monday its
representative office in New York should be operational by the end of the
year, after it received the necessary regulatory approvals.

 

The office is aimed at enabling Absa to better serve clients, including
international corporations and institutions, that invest or work in Africa.
The bank has already opened a representative office in London and is looking
at other locations, including in Asia.

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Egypt targets 6.4% growth, 6.2% deficit in fiscal 2020/2021 - finance
ministry

CAIRO (Reuters) - Egypt is targeting 6.4% growth and a budget deficit of
6.2% in fiscal year 2020/2021, the finance ministry said on Monday.

 

Egypt is also targeting a debt-to-GDP ratio of 80%, the ministry said in a
preliminary financial statement for next fiscal year’s budget.

 

 

 

MultiChoice profits leap on cost controlling measures

JOHANNESBURG (Reuters) - Africa’s biggest pay-TV group MultiChoice saw
half-year profits leap 22%, it said on Monday, as it further cut losses
outside of its home market South Africa and as foreign exchange swings
worked in its favour.

 

 

The company, spun off by South African e-commerce giant Naspers in February,
said last week its profits for the period could increase by up to 25%.

 

Its headline earnings per share (HEPS), the main profit measure in South
Africa, stood at 341 cents for the six months to Sept. 30, compared to 78
cents a year earlier.

 

MultiChoice shares were up 0.1% at 133.06 rand by 1449 GMT, outperforming a
drop in the wider index.

 

“The group added 1.2 million 90-day active subscribers, representing 7%
year-on-year growth, taking the overall 90-day active subscriber base to
18.9 million households at 30 September,” the group said in a statement.

 

 

“In the absence of specific one-off events in the prior year, subscriber
growth rates reflected more normalised trends.”

 

It said its performance had benefited from tight cost controls and the lower
depreciation of the rand against the U.S. dollar compared to the prior
period.

 

That led to a drop in unrealised foreign exchange losses related to
liabilities from U.S. dollar-denominated transponder leases.

 

Since its foundation three decades ago, the company has grown to reach 18.9
million households across 50 African countries with pay-TV products and a
streaming service called Showmax that competes with rivals like Netflix.

 

The subscriber base is split between 8.2 million households in South Africa
and 10.7 million in international markets.

 

The group reported a 2% increase in its home market revenues and a 5%
increase in its other African markets.

 

Loss-making operations elsewhere in Africa are still weighing on performance
but are moving back towards profitability, it said, adding that the growing
TV and streaming market on the continent is central to its growth strategy.

 

As well as Netflix, the company faces competition from a host of other local
and regional players in both streaming and pay-TV, and from other industries
also in the battle to win screen time, such as gaming and user-generated
content.

 

 

 

African oil states offer new deals to lure more selective investors

CAPE TOWN (Reuters) - Lower prices and increasing competition for investment
are driving many African states to make it easier and cheaper for overseas
companies to keep their oil and gas output flowing.

 

>From Ghana to Gabon, governments are adjusting terms to lure picky investors
who are also increasingly concerned about long-term demand for fossil fuels
as renewable energy gains ground.

 

The shift follows declining oil production in Angola and Cameroon and
disappointing bid rounds in Ghana. It also marks an recognition that the era
of $100 per barrel oil is over.

 

“Because of increased competition for investment in Africa, we are changing
our strategy,” Mohammed Amin Adam, Ghana’s deputy minister for petroleum,
said at last week’s Africa Oil Week in Cape Town.

 

Ghana’s Adam was not alone in announcing plans to revise oil and gas
licensing laws in an effort to spur output.

 

Ministers from Angola, Cameroon and Gabon also stressed changes to legal and
fiscal terms to boost their own production.

 

“We are aware that oil companies have to spend a lot of money. That is why
we are careful in the way we design our (terms) to have it as a win-win,”
Gabon’s petroleum minister Noel Mboumba said at the event.

 

As renewables and efforts to cut fossil fuel consumption gain ground, there
are also growing concerns that the world will not need all of Africa’s oil.

 

“We don’t know how much new supply we’re going to need. So obviously
everybody is going to have to be competitive for that,” Andrew Latham, vice
president of global exploration at Wood Mackenzie, said.

 

FRESH APPROACH

Ghana plans to allow companies more leeway in where and when they can drill,
while Angola is revising local content laws and privatising oil assets.

 

Cameroon’s senate in April approved a reform to replace its 1999 petroleum
code, sweetening tax terms for oil and condensate development and allowing
companies to recoup “exploration expenses” from production sharing
contracts.

 

Gabon revised its fiscal terms to reduce the government take for shallow and
deepwater concessions and increased the cost-recover limits for companies.

 

But not all African producers are sweetening the deal.

 

Nigeria, the continent’s largest producer, last week increased the amount
oil companies pay the government for offshore production, while an overhaul
of its oil and gas terms has languished for more than a decade.

 

Senate president Ahmad Lawan said the revisions would raise revenue while
allowing companies to make money - and the government has promised to pass
the broader bill next year.

 

Companies and analysts said reforms are needed.

 

“The continent has to compete for capital with other areas,” said Mike
Sangster, head of Nigeria for French oil major Total. “It’s important that
the regulators understand that.”

 

 

 

Vodacom posts 19% H1 profit rise a year after share scheme hit

JOHANNESBURG (Reuters) - South African mobile operator Vodacom on Monday
reported an 18.9% rise in half-year profits, partly reflecting the absence
of one-off costs related to a share scheme offered to black investors.

 

After initially rising, Vodacom’s shares fell over 2% despite the improved
result, with revenue flat in South Africa and growth in overall group
service revenue slowing.

 

“Our international portfolio remains a star performer, growing service
revenue by 15.5% in a period characterised by macro and political stability
and high demand for data,” CEO Shameel Joosub said in a statement.

 

A stagnant economy at home has left many South African firms, Vodacom
included, relying on businesses elsewhere to bolster earnings.

 

Even with a turnaround in the second quarter, Vodacom said service revenue
in South Africa rose just 0.3% for the six months to Sept. 30 while its
overall group service revenue rose 4.2% versus 6.1% a year earlier.

 

Headline earnings per share (HEPS), the main profit measure in South Africa,
rose to 460 from 387 cents a year earlier.

 

The company, majority owned by Britain’s Vodafone, has been trying to raise
data usage by cutting prices, and diversify its revenue by offering other
services such as insurance and on-demand video, steps it said were paying
off.

 

Vodacom now reaches a combined 115 million customers group-wide, with
Safaricom, Kenya’s largest mobile operator which Vodacom partly owns, alone
adding 2.7 million customers.

 

Safaricom runs the popular mobile financial services platform M-Pesa which
provided a boost in the first half of the year.

 

Vodacom and Safaricom are planning to expand M-Pesa internationally after
acquiring the intellectual property rights for it from Vodafone, a move that
will also save both money on royalty fees.

 

The company’s mid-year earnings last year were hit by 1.5 billion rand in
costs related to a black economic empowerment transaction.

 

($1 = 14.8839 rand)

 

 

 

Congo central bank lowers 2019 GDP growth forecast to 4.6%

KINSHASA (Reuters) - The Congolese central bank expects the economy to grow
4.6% in 2019, after revising down an earlier estimate of 5.1% during a
policy meeting on Friday.

 

The new figure is more in line with a forecast from the International
Monetary Fund, which expects growth this year of 4.3% because of lower
copper and cobalt prices.

 

 

 

ArcelorMittal South Africa to close Saldanha operation

JOHANNESBURG (Reuters) - ArcelorMittal’s South Africa unit said on Monday it
would close its steel operations at Saldanha Works in the south of the
country because it could no longer compete in export markets.

 

The company, majority owned by ArcelorMittal, announced in September that it
could close some operations as part of a review aimed at strengthening
long-term sustainability amid cheap imports, rising costs and a flagging
local economy.

 

In a statement, the company said it would undertake an orderly and
commercial wind-down of the Saldanha operation, which its website says
employs 568 staff and produces 1.2 million tonnes of steel per annum.

 

 

“Saldanha... has lost its structural competitive cost advantage to
effectively compete in the export market, mainly due to raw material and
regulated prices,” the statement said, adding the site is suffering severe
financial losses forecast to continue for the foreseeable future.

 

The process to wind the operation down will begin immediately and is
expected to be completed during the first quarter of 2020, it added.

 

ArcelorMittal South Africa, which has for some time complained about cheap
imports eating into its business, has also been hit by subdued investment
and infrastructure spending in the country, as well as a weak South African
economy.

 

 

It said on Monday there were constructive discussions ongoing with
stakeholders including the government and organised labour to find
“alternative solutions to the dire situation in the South African steel
industry”.

 

The next phase of its review will focus on its operations in Newcastle, in
the eastern province of KwaZulu-Natal and some long-steel products rolling
facilities, it continued, adding that exploration of the benefits of a
concentrated operating footprint will be central to this.

 

 

Kenyan shilling firms to 4-month high, helped by remittances

NAIROBI (Reuters) - The Kenyan shilling strengthened on Monday to a
four-month high , by dollar inflows from remittances and offshore investors
buying shares on the stock market, traders said.

 

At 0803 GMT, commercial banks quoted the shilling at 102.30/50 per dollar,
compared with 102.50/70 at Friday’s close. The shilling last traded at its
present level on July 8, Refinitiv data showed.

 

 

 

Jingye to invest £1bn and save 'thousands of British Steel jobs'

Chinese firm Jingye says will invest £1.2bn in British Steel as it signed a
deal to rescue the UK steelmaker.

 

It also said it would seek to "preserve thousands of jobs in a key
foundation industry for the UK" but did not put a number on how many would
be saved.

 

British Steel employs about 4,000 people in Scunthorpe and Teesside.

 

It has been kept running by the government via the Official Receiver since
May, when the company went into liquidation.

 

Jingye said it anticipated making job offers "to as many employees across
the business as possible".

 

Group chairman Li Ganpo said it would spend £1.2bn over the next decade in
upgrading plant and machinery, "improving the company's environmental
performance... and boosting energy efficiency to place the operations on a
more competitive and sustainable footing".

 

It also said it would aim to identify new markets and products.

 

National security

Business Minister Andrea Leadsom said she had met with Jingye's chairman on
Monday.

 

"I have been given reassurances that next to all current staff will be kept
and that in the medium to longer term they are likely to want to expand the
workforce" she said.

 

The deal will give the Chinese company control of a third of the UK's steel
industry. But Ms Leadsom said: "There aren't any national security issues
with this acquisition.

 

"In my dealings with Jingye, I think they will show themselves to be very
committed to continued and expanded production [here] in Scunthorpe and on
Teesside."

 

Jingye will acquire the steelworks at Scunthorpe, UK steel mills and shares
of FN Steel BV, British Steel France Rail SAS and TSP Engineering. The sale
also includes the shares owned by BSL in Redcar Bulk Terminal.

 

A statement from the Official Receiver said: "Completion of the contract is
conditional on a number of matters, including gaining the necessary
regulatory approvals. The parties are working together to conclude a sale as
soon as reasonably practicable.

 

"The business will continue to trade as normal during the period between
exchange and completion. Support from employees, suppliers and customers
since the liquidation has been a critical factor in achieving this outcome."

 

One worker at British Steel in Scunthorpe told the BBC: "It has been a big
concern, nobody knew what was happening... whether they had a job, could pay
the mortgages, feed the families. It is great news."

 

Why is this news so important?

Gareth Stace, director general of industry lobby group UK Steel, told BBC
Radio 4's Today programme that the business being bought was a "significant
asset to our country".

 

He said that there was a need for "very significant investment" in the
Scunthorpe works and that was why the deal with Jingye was "really welcome".

 

British Steel had previously been in rescue talks with Ataer, a subsidiary
of Turkey's state military retirement scheme Oyak. Ataer said its own talks
failed "mainly due to lack of support from the key stakeholders".

 

What is in it for Jingye?

What does a steel maker from Hebei province, south-west of Beijing, see in a
struggling plant in Scunthorpe? It is difficult to know, particularly when
we know so little about Jingye.

 

There is little publicly available information - certainly no set of
accounts - but the organisation's Facebook page extols its rapid rise to
become a big player in steel in just 20 years.

 

On the face of it, the Chinese buyer will be interested in the products that
British Steel makes that it does not. British Steel is a specialist in
railway tracks, "long products", a catch-all term for girders used in
construction, and the high-quality steel wire used in car tyres and dozens
of other industrial applications.

 

Jingye does not appear to make the first two, so British Steel should bring
it some valuable technology and new product lines. This has to be set
against the need for investment at Scunthorpe.

 

What British Steel workers will fervently hope is that the Jingye commitment
is long-term and that this is not another false dawn.

 

Will British Steel now turn the corner?

Mr Stace said he believed the steel industry in the UK could now compete
globally and he was publishing a manifesto with ideas for change.

 

"But the problem we have is we have an uncompetitive business landscape in
the UK. Government can change that," he added.

 

"I'm talking about energy costs, business rates, procurement - the
government buying more steel from the UK - free and fair trade, and even
much more support for R&D [research and development], which we are going to
lose when we fall out of the EU."

 

He said: "What government needs to do is give us that business landscape. We
can thrive on the global market and generate highly paid, highly skilled
jobs for the UK economy."

 

What happens now?

In the long term, it is believed that while Jingye Group has promised to
increase production, it has also warned costs may need to be cut.

 

Ross Murdoch, national officer for the GMB union, said: "We were impressed
with the passion and enthusiasm from the Jingye team.

 

"However, due diligence on this sale was completed very quickly and the
devil will be in the detail."

 

British Steel: 'We fear for our town's future'

Chinese group 'is favourite to buy British Steel'

Community, a UK trade union which absorbed the old Iron & Steel Trades
Confederation body, said it welcomed "this positive step towards securing
British Steel under new ownership".

 

"The fact that there has been ongoing interest from both Ataer and now
Jingye rightly demonstrates that potential buyers believe that British Steel
can have a sustainable future."

 

The UK industry has been struggling for a number of years amid claims that
China has been flooding the market with cheap steel.

 

In 2016 the EU imposed tariffs of up to 73.7% on Chinese steel after an
influx of cheap imports from Asia forced European manufacturers to cut jobs
and lower prices.

 

Who is Jingye Group?

Jingye has 23,500 employees and as well as its main steel and iron making
businesses, it also engages in tourism, hotels and real estate.

 

It has total registered assets of 39bn yuan (£4.4bn). According to its
website, Jingye Group ranked 217th among the top 500 enterprises in China in
2019.

 

The firm sells its products nationwide and exports them to more than 80
countries and regions.

 

Jingye's products have been used in major projects such as Beijing Daxing
International Airport and the underground system in Shijiazhuang.--BBC

 

 

 

Chancellor: There'll be changes to customs with EU

Chancellor Sajid Javid has acknowledged that "there will be some changes" to
customs procedures for all UK traders with the European Union (EU) as a
result of the Brexit deal the Conservatives intend to enact should they win
the General Election.

 

"When we trade with the EU there will be some changes but it also means
there's opportunities," Mr Javid told the BBC.

 

"We will be able to strike our own free trade agreements around the world
where we will have investments in free ports [special kind of port where
normal tax and customs rules do not apply] so there's a lot to look forward
to."

 

Mr Javid said the government's Brexit agreement was "a good deal".

 

"It gives us a new economic partnership with our friends in Europe, and it
allows us to have a deep free trade agreement with our European friends. We
will have our own customs territory and the whole of the UK will leave the
EU customs territory."

 

Brexit: What is in Boris Johnson's new deal with the EU?

Brexit: No checks on goods between NI and GB, says PM

While there has been much focus on new checks under a no-deal Brexit and on
those required within the UK between Great Britain and Northern Ireland,
much less has been said or acknowledged about what would happen for the bulk
of cross channel trade under Boris Johnson's Brexit deal.

 

On Thursday, the Bank of England assessed for the first time that the
Johnson deal would lead to a small hit to the economy, due to new customs
barriers.

 

Its assumptions were based on the introduction of "customs checks on UK-EU
trade" alongside other regulatory checks and trade checks on the origin of
parts.

 

"As a result, trade flows are likely to fall , and some companies might exit
the market," the Bank wrote in its Monetary Policy Report.

 

When asked if a vote for the Conservatives is a vote for customs checks
between the UK and EU, the Chancellor said it was a vote for a smooth exit
from the EU, and to end the risk of a no-deal Brexit.--BBC

 

 

 

Formula 1 launches a plan to become carbon neutral by 2030

Formula 1 has launched a plan to become carbon neutral by 2030.

 

The intention is to wipe out the carbon footprint of activity at race
tracks, including road and air transport of staff and equipment to the
events.

 

F1 says it will "move to ultra-efficient logistics and travel and 100%
renewably powered offices, facilities and factories" and offset emissions
that cannot be cut.

 

F1 said as a first step it would begin carbon-reduction projects
immediately.

 

It added that it will make all events "sustainable" by 2025, including
eliminating single-use plastics and ensuring all waste is reused, recycled
or composted.

 

And in 2021, rules will demand that the petrol used in F1 has a biofuel
content of at least 10%.

 

The high-tech turbo hybrid power-units used to power F1 cars since 2014 are
the most efficient car engines in the world in terms of the percentage of
fuel energy that is converted into power, a measurement known as thermal
efficiency.

 

F1 engines have a thermal efficiency rating of 50%, whereas a road-car
petrol engine is generally in the region of 30%.

 

The current engines are in line to continue until the end of 2025, and F1 is
to look at ways of ensuring that whatever specification of engine is used
from 2026 takes another step forward in efficiency.

 

The sport's owners added that they hoped to work with the automotive
industry to apply the lessons of F1's engines to create "the world's first
net-zero carbon hybrid internal combustion engine".

 

In-depth conversations with road-car manufacturers on this area have not yet
begun but they will focus on the development of synthetic fuels, which use
carbon captured from the air, farm waste or biomass.

 

F1 says it has come up with its plan to have a net-zero carbon footprint
"after 12 months of intense work with motorsport's governing body the FIA,
sustainability experts, F1 teams, promoters and partners".

 

Instigating the plans will require the assistance of the teams, some of whom
employ more than 1,000 people to design, develop, build and race the cars
that take part in more than 20 grands prix a year.

 

Mercedes

Mercedes, who have won the constructors title six times in a row, say they
are working on reducing their carbon footprint, while world Lewis Champion
sold his private plane last year and has spoken out on environmental issues

F1 says all have signed up to the project. And some have already started
working towards this goal.

 

World champions Mercedes, for example, say they have been powering their two
F1 factories in the UK entirely by renewable energy since early October and
that they are on target to have net-zero carbon emissions by the end of next
year through a combination of reducing CO2 emissions and offsetting.

 

Chase Carey, the chairman and chief executive of F1, said: "Over its 70-year
history, F1 has pioneered numerous technologies and innovations that have
positively contributed to society and helped to combat carbon emissions.

 

"From ground-breaking aerodynamics to improved brake designs, the progress
led by F1 teams has benefited hundreds of millions of cars on the road
today.

 

"Few people know that the current F1 hybrid power unit is the most efficient
in the world, delivering more power using less fuel, and hence CO2, than any
other car.

 

"We believe F1 can continue to be a leader for the auto industry and work
with the energy and automotive sector to deliver the world's first net-zero
carbon hybrid internal combustion engine that hugely reduces carbon
emissions around the world."

 

FIA president Jean Todt said his organisation and F1 were "committed to
driving development and ensuring motorsport grows as a laboratory for
environmentally beneficial innovations".

 

How will Formula 1 do it?

F1 plans to offset emissions through a combination of replanting trees and
using the engineering knowhow in the sport to develop new technologies that
can capture carbon from the atmosphere.

 

It calculated the sport's total carbon emissions in 2018 as 256,551 tonnes,
not including fans' transport to races, comprising:

 

Logistics (road, air and sea freight) 45%

Personnel travel 27.7%

Factories and facilities 19.3%

Events 7.3%

Total F1 car emissions including all race and test mileage: 0.7%

'You shouldn't be afraid to speak out for positive change'

Elsewhere in F1, world champion Lewis Hamilton has become outspoken on
global environmental issues, including extolling the virtues of a
plant-based diet in reducing greenhouse gas emissions.

 

The six-time champion has pledged to ensure his life and business activities
are carbon-neutral by the end of the year, is working with Mercedes to make
relevant changes and after selling his private plane last year is reducing
flying as much as possible.

 

After being accused of hypocrisy because of his role in F1 and the number of
flights he has to take as part of his job, Hamilton admitted the subject was
"not easy" but added: "That doesn't mean you should be afraid to speak out
for positive change."

 

His position was backed by a number of his leading competitors, including
four-time world champion Sebastian Vettel.

 

The Ferrari driver said last month: "It is very difficult for us to have
acceptance from the outside because we don't have the smallest [carbon]
footprint. The races are around the world and we do have to travel.

 

"But I feel F1 should do more. It is a worldwide operating platform and we
should send a more positive message."--BBC

 

 

 

 

Uber CEO calls Jamal Khashoggi murder 'serious mistake'

The chief executive of ride-hailing app Uber has called the murder of Saudi
journalist Jamal Khashoggi "a mistake", comparing it to his firm's failings
with self-driving cars.

 

Pressed on Saudi links with Uber in a TV interview, Dara Khosrowshahi said:
"People make mistakes, it doesn't mean they can never be forgiven."

 

He later said the comments were wrong.

 

Khashoggi - a US resident and prominent Saudi critic - was killed in the
kingdom's Istanbul consulate last year.

 

Saudi Arabia is Uber's fifth-largest shareholder and the head of its
sovereign wealth fund is also on the company's board of directors.

 

Mr Khosrowshahi made the remarks during a discussion about Saudi Arabia's
involvement in Khashoggi's murder as part of the series Axios on HBO. When
pressed on whether a representative from Saudi Arabia should remain on
Uber's board, he said: "I think that government said that they made a
mistake."

 

He went on: "It's a serious mistake, we've made mistakes too, right, with
self-driving and we stopped driving and we're recovering from that mistake."

 

He was referring to Uber's self-driving cars, one of which struck and killed
a woman in 2018 when it "failed" to identify her as a pedestrian.

 

Following the interview, Mr Khosrowshahi sent an email to Axios backtracking
on his comments. "I said something in the moment that I do not believe," he
wrote. "When it comes to Jamal Khashoggi, his murder was reprehensible and
should not be forgotten or excused."

 

Uber: The scandals that drove Travis Kalanick out

Dara Khosrowshahi confirmed as Uber's new boss

What happened to Jamal Khashoggi?

Mr Khosrowshahi was appointed CEO in 2017, after former chief executive
Travis Kalanick resigned amid pressure from shareholders.

 

Mr Kalanick, Uber's billionaire co-founder, resigned after a spate of
controversies at the firm. Issues included complaints from employees about a
sexist and macho company culture and that accusations of sexual harassment
were not taken seriously. He remains a member of the board of directors.

 

What happened to Jamal Khashoggi?

On 2 October 2018, Khashoggi entered the Saudi Arabia consulate in Istanbul,
where he was murdered. Conflicting narratives emerged after his death over
how he died and who was responsible.

 

Saudi officials claimed he was murdered in a "rogue operation" carried about
by a team of agents, while others - including Turkish officials and the CIA
- said the agents acted on orders from the highest levels of the Saudi
government, including Crown Prince Mohammed bin Salman.

 

A UN expert earlier this year concluded that Khashoggi's death was "an
extrajudicial execution" and that there was credible evidence" that the
crown prince and other high-level officials were individually liable.--BBC

 

 

 

Alibaba sees strong sales as Singles' Day beats record

Chinese e-commerce giant Alibaba's Singles' Day shopping frenzy has broken
records in its 11th year.

 

The world's biggest online shopping event raked in more than $30.8bn (210bn
yuan; £23bn) in sales in 16.5 hours of trading, surpassing last year's
all-time-high.

 

A gala featuring pop star Taylor Swift launched the 24-hour shopping blitz.

 

It marked Alibaba's first Singles' Day since the exit of its colourful
founder, Jack Ma.

 

He was replaced as executive chairman by Daniel Zhang earlier this year
after stepping down to focus on philanthropy and education.

 

The firm said sales reached $1bn in a little over one minute of trading on
Singles' Day.

 

Alibaba begins new era as founder Jack Ma departs

Alibaba Singles' Day frenzy smashes records

"Based upon that first hour... I would be really surprised to not see it
come in above $32bn," said Daniel Newman, technology analyst at Futurum
Research.

 

The shopping festival began in 2009 with participation from just 27
merchants as an event to raise awareness about the value of online shopping.
More than 200,000 brands are participating in this year's event.

 

The number of delivery orders also exceeded one billion after 16 hours,
beating the total number of orders in 2018.

 

But sales growth for the full 24-hour event, however, is unlikely to match
that of 2018. Analysts said growth was being held back by a slowing overall
e-commerce industry in China.

 

What is Singles' Day?

Alibaba invented the occasion to celebrate the unattached as an antithesis
to the romantically involved on Valentine's Day.

 

It is now the world's biggest online sales event and last year's total sales
exceeded Black Friday and Cyber Monday's sales combined.

 

Ahead of the event, there was some concern Chinese consumers may be
reluctant to buy US brands because of tensions between the countries.

 

The world's two largest economies have been fighting a trade war that has
seen both sides impose tariffs on billions of dollars' worth of one
another's goods.

 

The trade battle has cast a shadow over the Chinese economy as it grapples
with a wider slowdown.

 

Singles' Day is seen as an indicator of consumer sentiment in China and how
willing shoppers are to spend.

 

Alibaba listing?

Over the years, Alibaba has grown from an online marketplace into an
e-commerce giant with interests ranging from financial services to
artificial intelligence.

 

The company - one of China's largest - is now valued at $480bn, according to
Forbes. The firm is also eyeing a stock market listing in Hong Kong.

 

Reports suggest Alibaba - which is already listed in the US - may announce
plans to proceed with a multi-billion dollar Hong Kong listing as early as
this week.--BBC

 

 

 

The US-China fight over AI: 'We're over-reacting'

"China is betting on AI and investing in AI and deploying AI on a scale no
other country is doing," says Abishur Prakash, a futurist and author of
books about the effect of artificial intelligence (AI) on geopolitics.

 

As developments in AI accelerate, some in the US fear that the ability of
China's powerful central government to marshal data and pour resources into
the field will push it ahead.

 

The country has announced billions in funding for start-ups, launched
programmes to woo researchers from overseas and streamlined its data
policies.

 

It has announced news-reading robots and AI-powered strategy for foreign
relations. Perhaps most alarming to the US are its efforts to incorporate it
into its military.

 

In the last few years, Washington has toughened oversight of Chinese
investments, banned US firms from doing business with certain Chinese
companies and increased criminal prosecution of alleged technology theft.

 

"What the Trump administration is doing is a sign... the US knows that its
geopolitical power will be redefined and reconfigured by this era," said Mr
Prakash, who works at the Toronto-based Center for Innovating the Future.

 

These developments come amid political tension between the two nations. Yet,
some analysts worry the US response is counterproductive, arguing that
cutting off access to US microchips, for example, could simply accelerate
Chinese efforts to develop their own alternatives.

 

The Trump administration has imposed tariffs on billions of dollars worth of
Chinese goods - retaliation for "unfair" practices it says are aimed at
giving China an advantage in the field.

 

Why the US-China rivalry will not end with a trade deal

How the world is grappling with China's rising power

A quick guide to the US-China trade war

The White House has also pressed universities to review their relationships
with Chinese partners and threatened to restrict student visas. It is even
said to be looking at rules against certain US investments in China - once
nearly unthinkable in free-market America.

 

Rivals is a season of in-depth coverage on BBC News about the contest for
supremacy between the US and China across trade, tech, defence and soft
power.

 

 

The actions are aimed at preserving US leadership in technologies expected
to determine economic and military power for generations to come.

 

"That China will grow to be an economy as large as ours may be inevitable;
that we aid their mercantilist strategy through free trade and open
investment in our technology sector is a choice," US Department of Defense
officials wrote in a widely cited 2018 report.

 

China advances

As the US and China race to capitalise on advances in machine learning,
facial recognition and other forms of artificial intelligence, Tom Mitchell
has a front row seat.

 

The professor of computer science founded the world's first research centre
for artificial intelligence at Carnegie Mellon in the US. Since 2018, he has
also served as chief scientist at Squirrel, a leading tutoring company in
China.

 

He says the US has more experience building tech companies, but China may
have the advantage when it comes to AI applications relying on big data sets
- and points to the medical field as an example.

 

"In the US we've had electronic medical records for over 20 years but we
still have not put together all the records in the country to run
machine-learning algorithms on those."

 

He says the US has been inhibited by privacy concerns, as well as a
fractured, for-profit industry.

 

"In China, it's a different situation. If the government decides that it's
going to have country-wide electronic medical records... then it's going to
happen."

 

Prof Mitchell, who is working on using AI to improve education, says working
in both the US and China puts him in the best position to invent and apply
cutting-edge technology.

 

But that kind of cross-border collaboration is facing increasing scrutiny,
given rising political tensions.

 

Scaling back

Last year, Chinese investment in the US dropped to $4.8bn (£3.7bn) - its
lowest level since 2011 - while US investment in China dipped from $14bn to
$13bn, according to the Rhodium Group's annual report.

 

High-profile Chinese firms, like insurance giant Anbang and Kai-Fu Lee's
Sinovation Ventures, have reportedly sold or scaled back US operations,
while China's Huawei and ZTE have suffered serious losses after being
subject to US bans.

 

In US academic circles, universities are rethinking their ties to China,
while US firms doing business in China have also grown more cautious.

 

Mr Prakash, who works with start-ups, tech firms and governments on
questions of artificial intelligence, says while many western firms continue
to pursue opportunities in China, current tensions have changed the
discussions.

 

"Geopolitics is now front and centre for all of them," he says. "They're
forced to say, hey, we're based in Silicon Valley, we're selling to part of
Asia and now as this tech war unfolds we need to understand what's possible,
what can we do, what are our options."

 

Will it work?

Prof Mitchell says policymakers need to distinguish between AI applications
that are win-win and those that are truly competitive, such as those for the
military.

 

In the meantime, he says Washington's increasingly nationalist tone risks
alienating America's foreign students and researchers - many of them Chinese
- who have played a critical role in US tech leadership to date.

 

"To start thinking about putting up export control walls around the US could
be as damaging to the US research enterprise as anything that a foreign
adversary might try to do to us. I hope we will act rationally and not just
out of fear."

 

While US concerns about technology theft have merit, "I feel like we're
over-reacting," says Prof Mitchell.

 

"The fact that China or the UK or anybody decides they want to be a leader
in AI - it would be surprising if they did not. It's not something to be
reviled," he says.

 

American national plans have also called for boosting investment, reforming
the immigration system and improving education, but those are much more
difficult to achieve, says William Carter, deputy director of technology
policy at Washington's Center for Strategic and International Studies.

 

"Being hard on China is an easy political sell," he says, but warns that, "I
think we're shooting ourselves in the foot in a lot of ways".

 

The race between the US and China is now moving to other countries, which
are being pushed to take sides as tech firms from the two compete for turf.

 

The US has pressed its allies to stop using equipment from China's Huawei,
for example, citing concerns that Beijing could use the firm's equipment for
hacking. It has also raised human rights concerns.

 

At a recent conference, a US official argued that Chinese tech companies are
"de facto tools" of the state's Communist Party, saying they "have become
deeply enmeshed in Beijing's system of oppression at home and its
increasingly assertive strategic ambitions globally."

 

As artificial intelligence technologies drive debates over values like
surveillance and privacy, free speech and censorship, conflicts between the
two countries are likely to increase, Mr Wright says.

 

"To some extent, this is just a generic challenge, where you have a new set
of technologies and whomever manages to implement them first and best will
gain an advantage... but then there's also another set of issues which is to
do with the specifics of these new digital technologies," he says.

 

For now, it may take artificial intelligence to know how the race will
end.--BBC

 

 

 

UK growth 'slowest in almost a decade'

Britain's economy has grown at the slowest annual rate in almost a decade,
according to official figures.

 

Year-on-year growth in the three months to end-September slowed to 1% from
1.3% in the second quarter, the Office for National Statistics said.

 

An ONS spokesman said: "Looking at the picture over the last year, growth
slowed to its lowest rate in almost a decade."

 

But the economy avoided a recession by growing 0.3% in the third quarter.

 

The economy had shrunk in the second quarter and two quarters of contraction
would have signalled a recession.

 

What happened in the three-month period?

Despite the economy expanding by 0.3% in the third quarter, it was not as
fast as the 0.4% forecast by economists, including at the Bank of England.

 

A statistician at the ONS said GDP grew "steadily" in the third quarter.
That was largely as a result of a "strong July".

 

"The underlying trade deficit narrowed, mainly due to growing exports of
both goods and services."

 

What happened in September?

In the month of September, GDP fell by 0.1%, as had been expected.

 

But the ONS revised down the contraction in August to 0.2% from 0.1%.

 

It was the growth of 0.3% in July that drove the economy in the whole of the
third quarter.

 

John Hawksworth, chief economist at PwC, said: "The fact that growth was
positive in the third quarter was largely due to a strong July.

 

"Output then fell back in August and September, which points to a lack of
momentum in the economy going into the fourth quarter."

 

How did the different parts of the economy perform?

The statistician at the ONS said: "Services again led the way, with
construction also performing well.

 

"Manufacturing failed to grow, as falls in many industries were offset by
car production bouncing back following April shutdowns."

 

The ONS said the construction sector showed its first positive growth for a
rolling three-month period since May.

 

Production was flat in the three months to September and has not shown
growth over a rolling three-month period since April.

 

Suren Thiru, head of economics at the British Chambers of Commerce (BCC),
said: "The dominant services sector was the main driver of GDP growth in the
quarter with industrial production and construction sectors adding little to
overall UK GDP growth."

 

What does it tell us about the economy?

Ruth Gregory, senior UK economist at Capital Economics, said that while the
economy avoided a recession in the third quarter, the economy was "pretty
soft".

 

"The GDP figures suggest that the economy failed to regain much momentum
after the the second-quarter contraction."

 

Tej Parikh, chief economist at the Institute of Directors, said that "a
return to growth is welcome news, but narrowly avoiding a recession is
nothing to celebrate".

 

"The UK economy has been in stop-start mode all year, with growth punctuated
by the various Brexit deadlines," he added.

 

Ms Gregory added: "While the election is just under five weeks away, clearly
this isn't the good news the government might have hoped for."

 

Was Brexit stockpiling important?

The economy had unexpectedly contracted by 0.2% in the second quarter - the
March to June period - when Brexit stockpiles were unwound after the first
Brexit date of 29 March.

 

Samuel Tombs, economist at Pantheon Macroeconomics, said a "renewed
stockpiling boost" failed to materalise in the third quarter.

 

"It possible that stockpiling occurred to a greater extent at the start of
the fourth quarter," he said, adding fourth-quarter growth might not be
depressed to the extent he expected.

 

But Mr Parikh said that "the final quarter of 2019 could be weaker as
stockpiles continue to be run down".

 

What are the politicians saying?

The Chancellor, Sajid Javid, said there figures were "another welcome sign
that the fundamentals of the UK economy are strong. Under the conservatives,
we've seen nine consecutive years of growth".

 

He added: "What it also shows is the real risk to growth in our economy is
Corbyn's Labour. If they get their way, two referendums in 2020, eye
watering amounts of spending and borrowing and debt, that kind of economic
vandalism will bring growth in this country to a halt."

 

But John McDonnell, the shadow chancellor, said: "The fact that the
government will be celebrating 0.1% growth in the last six months is a sign
of how low their hopes and expectations for our economy are."

 

Ed Davey, the Liberal Democrat's deputy leader said: "The economy under the
Tories is anaemic."

 

As much as it would be a relief that a formal recession has been avoided,
the picture is very sluggish, in keeping with what has been called a "slow
puncture" economy.

 

Growth of 0.3% between July and September is clearly preferable to another
quarter of contraction, but still slow by normal historical standards.

 

Indeed, comparing the third quarter this year with the same period last
year, growth of just 1% is the slowest since the aftermath of the financial
crisis. It is the weakest two quarters since the financial crisis.

 

The background is a slower European and world economy reeling from trade
wars.

 

But years of damaged business investment, after the Brexit referendum, are
taking their toll on growth.

 

The latest figures in the month of September showed a contraction of 0.1%.
Data has been volatile this year, with car industry shutdowns and two bouts
of ultimately unneeded no-deal Brexit stockpiling.

 

So recession avoided, but this is not the "bounce back" promised by
some.--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
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been compiled from sources believed to be reliable, but no representation or
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opinions expressed and recommendations made are subject to change without
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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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