Major International Business Headlines Brief::: 13 November 2019

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Major International Business Headlines Brief::: 13 November 2019

 


 

 


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*  South Africa's state airliner SAA says job cuts could save firm $47 mln

*  South Africa's AMCU mining union seals platinum wage deals

*  Nigerian 'unicorn' Interswitch sells stake to Visa

*  Dubai's DP World signs deal to develop business park in Namibia

*  Kenya's Equity nine-month pretax profit jumps on lending boost

*  Kenya's Silverstone Air suspends all flights

*  Ghana sells 200,000 tonnes of cocoa with farmer premium

*  Telkom in deal talks despite plunging profit

*  McDonald's UK staff join global day of protests over pay

*  Boots' parent firm Walgreens 'gets record buyout offer'

*  Branson apologises for South Africa launch tweet

*  HS2 should happen despite rising cost, says review

*  Disney bets the House of Mouse on streaming

*  Royal Mail fails to halt record £50m Ofcom fine

 

 


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South Africa's state airliner SAA says job cuts could save firm $47 mln

JOHANNESBURG (Reuters) - South Africa’s SAA’s restructuring plan will be
finalised by March next year and should save the firm 700 million rand ($47
million), the executive team at the ailing state airline told a media
briefing on Tuesday.

 

“If you look at the 944 employees (who could lose their jobs), it’s
estimated, depending on how the process pans out, it could save the company
about 700 million rand. Our communications to labour and employees is to
have this process finalised by the end of March next year,” said South
African Airways’ Martin Kemp.

 

Earlier on Tuesday the company said it had started consultations with its
more than 5,000 staff and labour unions about cutting jobs to bringing down
its massive debt, including a 21.7 billion rand funding gap, that has forced
government to repeatedly bail it out.

 

($1 = 14.8839 rand)

 

 


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South Africa's AMCU mining union seals platinum wage deals

JOHANNESBURG (Reuters) - South Africa’s biggest platinum mining union has
sealed wage agreements with Anglo American Platinum, Impala Platinum, and
Sibanye-Stillwater, the union said in a statement sent to media on Tuesday.

 

The Association of Mineworkers and Construction Union (AMCU) has been
negotiating with the country’s biggest platinum miners since June, and in
October referred the dispute with Amplats and Sibanye-Stillwater to a
government dispute resolution body.

 

The signing ceremony will take place in Muldersdrift, a town in South
Africa’s platinum mining heartlands 30 kms (20 miles) northwest of
Johannesburg at 0800 GMT on Wednesday, AMCU said.

 

 

 

Nigerian 'unicorn' Interswitch sells stake to Visa

LAGOS (Reuters) - Visa Inc will buy a significant minority stake in Nigerian
payments platform Interswitch, creating “an instant acceptance network
across Africa” that will help drive expansion, both companies said in a
statement on Tuesday.

 

Interswitch and Visa did not provide financial details but a source
confirmed media reports that Visa would buy a 20% stake for $200 million.

 

That would value Interswitch at $1 billion, giving it “unicorn” status - a
term for tech companies with a valuation of a billion dollars or more.

 

Visa will join Helios Investment Partners, TA Associates and IFC as the
primary shareholders in Interswitch.

 

Andrew Toree, Visa’s regional president for Europe, the Middle East and
Africa said that Africa — the world’s second-fastest growing banking market
according to a 2017 McKinsey report — is a “priority region” for the
company.

 

Interswitch has long been expected to launch an initial public offering
(IPO) to allow the original investors to offload part of their stakes in the
company.

 

Founded in 2002 by Nigerian entrepreneur Mitchell Elegbe, Interswitch also
owns Verve - the largest domestic debit card scheme in Africa - and
Quickteller, a consumer payments platform that enables money transfers, bill
payments and mobile and internet air time purchases. Elgebe has said
expanding outside Nigeria to elsewhere in sub-Saharan Africa is a main aim.

 

Quickteller processed over 42 million transactions monthly as of 31 July -
the equivalent of more than 560 billion naira ($1.82 billion).

 

The value of mobile money payments in sub-Saharan Africa grew by more than
15% from 2017 to 2018, according to industry group GSMA, to $26.8 billion.

 

The group, which represents mobile operators worldwide, also expects that
regulatory reforms in Nigeria, Ethiopia and Egypt could see more than 110
million new mobile money accounts added there in the next five years.

 

Rating agency Moody’s in September assigned Interswitch a B2 corporate
family rating, noting that it processes some 90% of total electronic
transactions in Nigeria - where electronic payments rose by 32% in 2018 and
are expected to keep growing.

 

Moody’s said Interswitch posted an average net revenue growth of 17% from
2017-2019 and an average EBITDA margin of 40% over the same period.

 

It warned that Interswitch’s profitability could weaken due to interest
costs for its bond issuance payments, and that the high concentration of its
business in Nigeria was a risk.

 

($1 = 306.9000 naira)

 

 

 

Dubai's DP World signs deal to develop business park in Namibia

DUBAI (Reuters) - Dubai’s DP World has signed a preliminary agreement with
the Nara Namib Free Economic Industrial Zone to develop a dedicated business
park in the Namibian port town of Walvis Bay.

 

The park will be a ‘free economic zone’ for industry and logistics and
initially cover an area of 50 hectares, according to a statement on Dubai’s
government media office website on Tuesday.

 

The park could eventually be spread across 1,500 hectares, it said.

 

A free economic zone is often a dedicated area that has different laws or
rules, such as fewer or no taxes, designed to attract investment.

 

DP World and Nara Namib aim to reach a final agreement in the second quarter
of 2020, the statement said.

 

 

 

 

Kenya's Equity nine-month pretax profit jumps on lending boost

NAIROBI (Reuters) - Kenya’s Equity Group reported on Tuesday that its
nine-month pretax profit rose to 24.78 billion shillings ($242.11 million)
as it overcame the effects of an interest rate cap that slowed economic
growth.

 

Net interest income over the period was 32.29 billion shillings, up from
29.5 billion a year ago, while non-funded income rose to 22.54 billion
shillings from 19.8 billion, Chief Executive James Mwangi said at an
investor briefing.

 

That contributed to an 11% jump in pretax profit.

 

Equity is the first bank to report its results after Kenya lifted a cap on
lending rates which policymakers said had stifled credit, especially for
small businesses, and hindered monetary policy.

 

About 800,000 Equity customers were locked out of borrowing from the bank
after the cap was introduced in 2016, Mwangi said. Now, the bank has an
opportunity to win them back, since they are still saving with the bank, he
said.

 

The results were in line with expectations, said Patrick Mumu, an analyst at
Genghis Capital.

 

“We should see the loan book grow robustly in the first year post-rate cap,”
he said.

 

Equity’s Kenyan business contributes the bulk of its profits, but its
subsidiaries in Tanzania, Rwanda, Burundi, South Sudan, Uganda and
Democratic Republic of Congo grew their assets by 26% in the period.

 

They now account for more than a quarter of the bank’s total assets. Equity
aims for its subsidiaries in east and central Africa to account for 40% of
its assets. “We can see that happening in the course of next year,” Mwangi
said.

 

As part of its growth strategy, the bank is pursuing mergers and
acquisitions in the region. Equity said in September it was in talks with
Banque Commerciale du Congo’s (BCDC) shareholders to buy a controlling stake
for cash.

 

Equity already has a subsidiary in Democratic Republic of the Congo, which
has a population of 80 million.

 

“A merger of existing Equity with that target would produce the largest bank
in DRC in deposits,” he said.

 

 

Ethiopia is also a target, Mwangi said, as Africa’s second most populous
nation prepares to liberalise its financial sector.

 

The Kenyan bank said its total assets rose to 677.1 billion shillings from
560.4 billion shillings in same period in 2018, while loans and advances to
customers grew 21% to 348.9 billion shillings.

 

($1 = 102.3500 Kenyan shillings)

 

 

 

Kenya's Silverstone Air suspends all flights

NAIROBI (Reuters) - Kenya’s Silverstone Air is suspending all flights
effective Nov. 12, it said on Tuesday, after an accident last month badly
injured a woman and an incident in which a plane was forced to make an
emergency landing after a wheel fell off.

 

The airline said it made the decision after the civil aviation authority
suspended its fleet of Dash 8 aircraft. The authority launched an audit
inspection of Silverstone following last month’s two incidents.

 

Silverstone operates multiple flights per day to the East African nation’s
coastal destinations which are popular with foreign tourists.

 

 

 

Ghana sells 200,000 tonnes of cocoa with farmer premium

JOHANNESBURG (Reuters) - Ghana, the world’s number two cocoa producer, has
sold nearly 200,000 tonnes of cocoa for the 2020/21 season, with prices
including a new premium to support farmers, the head of the cocoa regulator
told Reuters.

 

Ghana and top producer Ivory Coast announced in July that all cocoa
purchases for the 2020/21 season must include a Living Income Differential
(LID) of $400 a tonne in a bid to tackle pervasive farmer poverty.

 

The move was a major overhaul of how global cocoa was priced and buyers
initially responded cautiously, with only a few deals concluded in the
period immediately following the announcement.

 

“So far everything is running on course,” Joseph Boahen Aidoo, the chief
executive of Cocobod, said on the sidelines of an investment conference in
Johannesburg.

 

“I’ve already indicated ... that the LID has come to stay. So you have to
pay. The buyers, the processors, the manufacturers, the brand companies are
in tune with it.”

 

Aidoo said Ghana was expecting to sell forward around 650,000 tonnes of next
season’s crop.

 

Singapore-based food group Olam agreed to purchase 100,000 tonnes of cocoa
export contracts from Ivory Coast in a deal last month, the regulator there
said. The deal was an indication that industry players were overcoming their
early misgivings about the premium.

 

Following in the footsteps of major chocolate makers including Mars, the CEO
of Switzerland’s Barry Callebaut last week voiced support for the LID,
adding that the added cost would likely be passed onto consumers.

 

Ghana signed a $600 million loan package on Tuesday with the African
Development Bank (AfDB) and Credit Suisse aimed at giving a boost to its
cocoa sector.

 

The money will help Cocobod provide short-term working capital to local
processing companies and pay for new warehouses that will allow Ghana to
store beans longer without a deterioration in quality.

 

It will also finance a programme to replace ageing trees and destroy
plantations infected with swollen shoot, a viral disease that has become a
threat to Ghana’s cocoa production.

 

“In the next five or six years, with the facility coming from the AfDB, it’s
going to transform the cocoa sector. It will enable Ghana to move from
around 900,000 (tonnes) to 1.5 million,” Aidoo said.

 

Any production losses due to the replanting and tree destruction programmes
should be offset by increased productivity from pollination initiatives,
Aidoo said, meaning overall output is unlikely to dip in the short term.

 

 

 

Telkom in deal talks despite plunging profit

JOHANNESBURG (Reuters) - South Africa’s Telkom SA said on Tuesday it was in
discussions over a potential acquisition even as a spike in debt costs
pushed half-year profits down by more than a third.

 

The company, 40% owned by the state, has been investing heavily in its
mobile business to drive growth, but also adding to a debt burden.

 

Telkom said in a stock exchange announcement on Tuesday it was in
discussions in relation to a potential acquisition - one move that it has
previously warned could cause push debt up further.

 

“We are always on the lookout for the right asset at the right price,” CEO
Sipho Maseko told Reuters by phone.

 

The company had previously looked at Cell C, South Africa’s third largest
mobile operator with its own financial problems, and would only consider it
within a disciplined financial framework, he said.

 

Amid a drop in fixed-line customers, Telkom has ploughed funds into areas
such as mobile and fibre.

 

Like other African telecoms firms, it is trying to keep pace with a surge in
demand for the internet and data with growing smart phone usage.

 

“We have taken a view growth in data will continue unabated,” Maseko said,
adding that pouring more “jet fuel” onto Telkom’s mobile and fibre business
had paid off.

 

Its mobile division posted revenue growth of almost 57% in the six months to
Sept. 30.

 

But the hefty funding it took to shift Telkom’s focus to newer technologies
wiped out its free cash flow, pushed its net debt to EBITDA ratio beyond
previous guidance, and pulled profits down.

 

The ratio rose to 1.4 from 0.8 at end-March, the end of the company’s
financial year, though adopting a new accounting standard since then caused
part of the rise.

 

Telkom shares were flat at 0703 GMT. The stock took a beating earlier in
November when it warned finance costs could pull profits down by as much as
40%.

 

Headline earnings per share, the main profit measure in South Africa, stood
at 183.4 cents for the period, down from 288 cents a year earlier.

 

That was a fall of 44% compared to a restated figure for the first half of
2018.

 

While the company declared an interim dividend of 71.5 cents per share, it
warned its capital requirements were likely to impact its dividend policy.

 

“In considering the dividend policy we will prioritise our capital
investment program, maintain an investment grade credit rating and consider
our cash position,” its statement said.

 

($1 = 14.8839 rand)

 

 

 

McDonald's UK staff join global day of protests over pay

McDonald's workers in the UK have gone on strike as part of a global day of
protests over pay.

 

Staff at six London stores walked out, while protests were held across the
UK. There was also action in the US, France, Germany, Brazil and Chile.

 

McDonald's said that the strikers represented a "tiny proportion" of its UK
workforce.

 

The fast food giant was also hit with a legal action in the US over sexual
harassment claims.

 

The lawsuit alleges rampant harassment at a Michigan McDonald's franchise,
which went ignored by management and was "emblematic" of a broader problem
at the company.

 

The filing adds to roughly 50 complaints filed against the company in recent
years over sexual harassment, according to the Time's Up Legal Defense Fund,
which is working on the suit.

 

McDonald's has said it has revamped its harassment training and policies in
recent years and is working with its franchises to implement the updates.
However, lawyers working on the suit say their clients have seen little
change.

 

"They are the definition of window dressing," said Gillian Thomas, of the
American Civil Liberties Union, which is working on the issue.

 

Workers in the protests are demanding an end to "poverty pay" rates and
better terms and conditions.

 

In the UK, McDonald's workers are calling for a rise in pay to £15 an hour -
over a third more than what they currently earn.

 

They also want an end to youth rates, the choice of guaranteed hours of up
to 40 hours a week, notice of shifts four weeks in advance and recognition
of their union, the Bakers, Food and Allied Workers' Union (BFAWU).

 

An employee at Crayford McDonald's in London, Lewis Baker, said he will be
striking because he struggles to pay rent on his income of £8.80 an hour.

 

Mr Baker, 29, said: "There are a lot of workers who are struggling to pay
their bills and get by day to day.

 

"We don't have set hours, so we don't always earn enough to pay the bills.

 

"If we got £15 an hour, it would have a massive impact - I would be able to
afford to pay my rent, to pay my bills, go on holiday and have some kind of
work-life balance."

 

'Poverty pay'

Melissa Evans, 32, a mum who works at McDonald's in Wandsworth Town, London,
said McDonald's workers deserved "the same level of respect as everyone
else".

 

"We are coming together to tackle poverty pay, insecurity of hours and lack
of respect, which has gone on at McDonald's for too long."

 

This is the fourth time McDonald's workers in the UK have gone on strike
since September 2017, with each successive strike getting bigger.

 

There has also been strike action around the world over the fast-food
giant's pay rates, with thousands walking out in the US.

 

The company has faced criticism for paying executives large salaries, while
employees on the shopfloor struggle to get by.

 

There were protests in five German cities on Tuesday, including Berlin and
Hamburg, and also in Belgium. There were protests in Israel last week, and
action is expected in New Zealand next week.

 

'Fighting back'

Former boss Steve Easterbrook - who was fired last week for having a
relationship with an unnamed employee - received remuneration of $15.9m in
2018. That was 2,124 times the median McDonald's employee salary of $7,473.

 

The UK's shadow chancellor, John McDonnell, who joined workers outside
Downing Street, the prime minister's residence in central London, said low
pay and insecure work were "endemic" in the fast-food industry.

 

Owen Espley of charity War on Want, which is backing the strikes, said
McDonald's workers were exploited but were "fighting back. [They are]
demanding respect and a fair share of the profits".

 

Speaking about the action in London, a McDonald's spokesman said: "We are
extremely disappointed that a very small number of our people in just a
handful of our restaurants are considering industrial action.

 

"We understand only nine people are involved across six restaurants, which
is a tiny proportion of our 130,000 workforce and 1,300 restaurants."--BBC

 

 

 

Boots' parent firm Walgreens 'gets record buyout offer'

Boots' parent company, Walgreens Boots Alliance, has reportedly received a
buyout offer from private equity group KKR, which, if it goes through, would
be the biggest of its kind on record.

 

KKR sold its final shares in Walgreens from a previous buyout three years
ago.

 

And it is likely to have to work with other investors to complete a deal.

 

Stephen Schwarzman, chief executive of equity group Blackstone, said last
week any deal to buy Walgreens would be a "stretch" in current market
conditions.

 

Speaking at a Reuters conference, he said: "It might be possible. It's a
huge stretch doing things over $50bn."

 

Walgreens has a reported market value of about $56bn (£43.6bn) and is nearly
$17bn in debt. Its shares rose 6% when news of the possible deal broke,
after they had fallen by nearly 20% between January and October.

 

The company operates in 25 countries, including in the UK, where it owns
Boots.

 

It has been trying to save nearly $2bn a year by closing stores and cutting
jobs.

 

As part of that process, Boots announced in June that it will shut 200 shops
across the UK.

 

Neither Walgreens nor KKR has commented on the reports.--BBC

 

 

 

Branson apologises for South Africa launch tweet

Sir Richard Branson has apologised for a photo he used to mark the launch
his new Branson Centre of Entrepreneurship in South Africa.

 

The entrepreneur tweeted a photo which was criticised for failing to reflect
the diversity of South Africa.

 

One of the critics is South African fashion designer Thula Sindi, who says:
"Where did you find so many white people in South Africa?"

 

Sir Richard tweeted an apology, saying it "clearly lacked diversity".

 

A Virgin Group spokesperson added the image in Sir Richard's tweet did not
reflect "the diverse make-up of attendees" at the launch event.

 

In the intial tweet, Sir Richard said: "Wonderful to be in South Africa to
help launch the new Branson Centre of Entrepreneurship. We aim to become the
heart of entrepreneurship for Southern Africa."

 

It sparked a series of responses, including from Mr Sindi - whose designs
were worn by South Africa's minister of communications and
telecommunications, Stella Ndabeni-Abraham on the day she was sworn in.

 

He remarks that it must have "Really taken an honest effort for exclude the
majority of the population which is just as skilled and talented".

 

Sir Richard later tweeted: "Apologies. I hope you will take a look at my
blog which does far better justice to the amazing work of the Centre and its
team."

 

In the link to his blog, Sir Richard writes: "We will play a more meaningful
role in entrepreneurs' lives than your average accelerator, supporting
companies to not just survive, but thrive, and make business a real force
for good in society, for the environment and the economy."

 

One individual had told critics they were wrong. "This is one of many
pictures, most of which are diverse," he tweeted.

 

South Africa's population of almost 58 million is 80% black African, and Sir
Richard writes in his blog that the "economy is dependent on entrepreneurial
activity for creating future economic growth and jobs".

 

"But the economic contribution to South Africa's entrepreneurial sector is
below the developing country norm. I believe that increasing
entrepreneurship in this country is the golden highway to economic
democracy," he adds.

 

Sir Richard's Virgin Group has a wide range of interests from gyms to planes
and the entrepreneur's space company, Virgin Galactic, listed on the New
York Stock Exchange last month.

 

A spokesperson for Virgin said: "The tweet linked to a blog about the launch
of the Branson Centre of Entrepreneurship South Africa, which assists
aspiring entrepreneurs of all backgrounds with the skills, opportunities and
inspiration they need to succeed.

 

"We apologise for the poorly chosen image, but would like to emphasise that
this does not reflect the diverse make-up of attendees.

 

"As the video, other social posts and other images of the event show, many
of the diverse group of Branson Centre entrepreneurs, trustees and team were
present and the image attached to that particular tweet should have
reflected this too."--BBC

 

 

 

HS2 should happen despite rising cost, says review

A draft copy of a review into the HS2 high-speed railway linking London and
the North of England says it should be built, despite its rising cost.

 

The government-commissioned review, launched in August, will not be
published until after the election.

 

It says the project might cost even more than its current price of £88bn.

 

Members of the panel which produced the review have told the BBC that the
draft recommends that HS2 should be built with only relatively minor
alterations.

 

These include reducing the number of trains per hour from 18 to 14, which is
in line with other high-speed networks around the world.

 

The document says that even the most controversial stretch of the railway -
linking west London to central London - should go ahead.

 

Business leaders and politicians in the North of England have welcomed the
review's preliminary findings.

 

But the draft does not have the support of the review's deputy chair, Lord
Berkeley.

 

In a letter seen by the BBC, he criticised the review's "lack of balance"
and said the cost of the scheme had not been properly scrutinised.

 

In the letter, sent to Doug Oakervee, the chairman of the review panel, Lord
Berkeley said about the review: "I cannot support its conclusions or
recommendations.

 

"My concerns are about the process of the report's preparation and its
outcome.

 

"We had to complete the work in a very short time. I also detected a trend
in may of the discussions within the review to accept that HS2 will go
ahead.... rather than look at the pros and cons of alternative options.

 

"I reserve the right to publish my own alternative report in due course."

 

Mr Oakervee said he regretted that Lord Berkeley "feels unable to give his
support."

 

"He participated fully in panel discussions that have seen all other members
converge their views, based on the extensive evidence considered," Mr
Oakervee added.

 

A report in The Times says that the review found that without HS2, "large
ticket price rises" would be needed to discourage people from travelling at
peak times.

 

Henri Murison, director of the Northern Powerhouse Partnership, said: "The
Northern Powerhouse Independent Review on HS2 said that there were no
identified credible alternatives to HS2 in order to deliver the same
capacity, and that it has the potential to unlock greater growth in the
North and Midlands.

 

"It is welcome that their recommendations are mirrored by the government's
own Oakervee Review."

 

However, Penny Gaines, chairwoman of the Stop HS2 campaign, said: "HS2 was a
bad project when it was originally announced and was supposed to cost £33bn,
it was a bad project when it was supposed to cost £55bn and it is a bad
project now the cost is expected to be more than £88bn.

 

"It should be cancelled as soon as possible, so the government can focus on
the real transport priorities."--BBC

 

 

 

Disney bets the House of Mouse on streaming

There’s no question Disney produces incredible entertainment. The firm has
had us laughing, crying and falling in love with its characters for almost
100 years.

 

But the launch of its eagerly-anticipated streaming service Disney+ - which
goes live in the US, Canada and the Netherlands on Tuesday - will mean the
legendary House of Mouse will need to be able to compete not just on
programming, but technology too.

 

"We're making a huge statement about the future of media and entertainment
and our continued ability to thrive in this new era,” chief executive Bob
Iger said on a call with his shareholders last week.

 

They’d just been informed of a 66% drop in profits, and a 50% rise in costs,
mostly attributed to the move to streaming. Creating the Disney+ platform
has been, and will continue to be, a hugely costly exercise - with no
guarantee the rewards will ever materialise.

 

On the tech side, in 2017 the firm spent $1.58bn (£1.22bn) - in addition to
$1bn it had already invested - to gain control of BamTech, a Manhattan-based
streaming media specialist that previously helped US broadcaster HBO set up
its streaming services.

 

Netflix feels the pressure as competitors circle

To make sure it has a strong enough library, Disney has been on an
unprecedented acquisition spree that has made it into the world’s largest
media company.

 

It included a $71.3bn deal to snap up 21st Century Fox, which included the
20th Century Fox studio, National Geographic, a large stake in pre-existing
streaming service Hulu, and TV channel FX - giving Disney exclusive rights
to stream The Simpsons, among other things.

 

And perhaps the biggest draw on launch day will be The Mandalorian, a
live-action Star Wars series exclusive to Disney+, reportedly created at a
cost of more than $100m.

 

‘Kingdom-wide’ advertising

Having exclusive streaming rights to Star Wars, Marvel and The Simpsons -
not to mention complete control of its own lucrative creations, like Frozen
- will make Disney+ a major competitor to Netflix, Amazon and others
overnight.

 

But that alone won’t be enough to recoup the tens of billions of dollars in
investment.

 

Disney has estimated that before the effort can break even, it needs in the
region of 60 to 90 million monthly subscribers. Netflix - which has had a
12-year headstart - currently has 61 million paying customers globally.

 

Media industry analysts MoffettNathanson predict Disney+ will attract some 8
million paid subscribers by the end of this calendar year, thanks to
aggressive marketing and a deal with Verizon that will see some of its
customers given free access to Disney+.

 

The Verizon arrangement is a direct attempt to fight Apple’s decision to
give away a free year of its service, Apple TV+, when a person buys a new
Apple device.

 

And, if anyone knows how to market itself, it’s Disney.

 

The New York Times has referred to efforts to promote Disney+ as a
“kingdom-wide” onslaught: Anchors on local TV stations owned by Disney will
reference the launch; staff in Disney’s retail stores will wear t-shirts;
buses at theme parks will promote the exclusive shows.

 

During a time-out in Monday’s Seattle v San Francisco American Football
game, commentators on ESPN - owned by Disney - mused how The Mandalorian
would be “huge” for their families. An exclusive clip from the series was
shown during the half-time show.

 

In October, in an effort to promote pre-orders, Disney’s social media team
posted a thread of “basically everything” that will be available on the
service on launch day (around 500 films and 7,000 TV episodes). Independent
estimates have suggested that there may have been as many as 2 million
sign-ups before launch.

 

The global launch of Disney+ will be fragmented, however, with much of the
world having to wait to get the service due to legacy deals that are still
in place.

 

The UK, for example, will get Disney+ in March, although it's still not
clear exactly how full its library will be as Sky is believed to have
ongoing deals to stream some of Disney's content up until 2021.

 

Disney has said it will have clawed back all of its content rights globally
by the end of the same year.

 

Self-disrupt

Disney’s move to streaming, and having direct access to its audience, will
be the legacy of Mr Iger, who took over as chief executive in 2005. He
announced in April that he would be stepping down at the end of his contract
in 2021.

 

Having the ability to sell its product directly via Disney+, rather than
through cable companies or cinemas, brings vast new opportunities - not
least because the firm will have access to data on its customer’s habits,
data it can use to market merchandise and make decisions about future
programming.

 

But to realise that long-term ambition, Disney will be upended.

 

Investors are excited about that future. Despite the sharp drop in profits,
Disney has in fact exceeded Wall Street expectations: The firm’s share price
is up by around 17% compared to this time last year. It’s up 29% since June
2017, when Mr Iger is said to have committed to the decision to go all-in on
streaming.

 

“Rarely has a company willingly created this much financial disruption in
strategically pivoting to a new business model,” said MoffettNathanson.

 

That’s not to say it’s a difficult choice for Mr Iger to make, though.

 

In March, the Motion Picture Association of America released a startling
statistic. For the first time, there were a greater number of Americans
subscribing to a streaming service than to traditional cable.

 

The inevitability of that shift didn't make it any less seismic: Television
had entered a new era, and film will follow. These changes may be expensive,
but Disney certainly can’t afford to waste any time.--BBC

 

 

 

Royal Mail fails to halt record £50m Ofcom fine

Royal Mail has failed to have a record £50m fine from Ofcom overturned.

 

The fine, announced in August 2018, related to its actions in 2014 when
Whistl, then known as TNT, was trying to become its first competitor in
wholesale mail delivery.

 

Ofcom's investigation followed a complaint by Whistl that Royal Mail had
abused its dominant market position.

 

Royal Mail challenged the fine, but on Tuesday, the Competition Appeal
Tribunal dismissed its application.

 

An Ofcom spokesperson said: "We found that Royal Mail pursued a deliberate
strategy of pricing discrimination against Whistl, which was its only major
competitor for delivering business mail.

 

"Royal Mail had a special responsibility to ensure its behaviour was not
anti-competitive.

 

Royal Mail fined record £50m by Ofcom

Royal Mail tries to stop Christmas postal strike

"We hope that our fine, which has been upheld in full by the Tribunal, will
ensure that Royal Mail and other powerful companies take their legal duties
very seriously."

 

Ofcom's investigation had found that Royal Mail price rises in 2014 meant
any wholesale customers, such as Whistl, which wanted to compete with it
would have to pay higher prices in the remaining areas where it used Royal
Mail for delivery.

 

Whistl said it was pleased that the Ofcom ruling had been upheld.

 

"Royal Mail's actions had a hugely negative impact on investment in, and the
competitive health of, the UK postal sector," Whistl said.

 

Whistl said it was now looking at its options to decide whether to seek
damages.

 

Royal Mail did not immediately comment on Tuesday's decision, but at the
time, it said it had raised prices to protect the Universal Service, which
means post is charged at the same rate, regardless of where it is sent
across the UK.

 

Unlike its competitors, it is required to continue providing such pricing.

 

The CAT decision was announced as Royal Mail was asking the High Court to
stop a postal strike, claiming that the ballot of workers had "potential
irregularities".

 

A strike threatens to disrupt postal voting in the run-up to the general
election, as well as Christmas post.

 

Royal Mail says the the strike ballot "was unlawful and, therefore, null and
void", but the Communications Workers Union "refutes" Royal Mail's
claim.--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
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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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