Major International Business Headlines Brief::: 10 October 2019

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Major International Business Headlines Brief::: 10 October 2019

 


 

 


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*  Exxon to make $500 mln initial investment in Mozambique LNG project

*  IMF sees higher Nigeria inflation in 2020 on minimum wage, tax rises

*  South Africa's September business confidence recovers from 34-year low -
SACCI

*  Nigeria lands higher oil output target in OPEC+ cut deal

*  Senegal delays oil licensing round by a month

*  South Africa's rand pauses slide as risk clouds gather

*  Zambia's KCM smelter shut down earlier than planned after leak -
liquidator

*  Nigerian president offers record 10.33 trln-naira budget for 2020

*  Oxfam alleges abuse in UK supermarket supply chains

*  Liverpool is home to the 'chattiest mobile phone users'

*  Tech giants face higher tax bills under shake-up

*  Top Barclays executives 'hid £280m payment', court hears

*  How selling citizenship is now big business

*  Google offers tool for cities to measure emissions

*  Thomas Cook buyers pledge to save 555 shops and 2,500 jobs

*  Goldman Sachs reviews role in Chinese tech firm Megvii

 


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Exxon to make $500 mln initial investment in Mozambique LNG project

MAPUTO (Reuters) - Exxon Mobil will invest more than $500 million in the
initial construction phase of its liquefied natural gas (LNG) project in
Mozambique, the U.S. energy company said on Tuesday.

 

Construction of onshore facilities has been awarded to a consortium led by
Japan’s JGC, U.K firm TechnipFMC and U.S. company Fluor Corp, Exxon head of
power and gas marketing Peter Clarke told a ceremony in the capital Maputo.

 

The $30 billion Rovuma LNG project has a capacity of 15 million tonnes a
year (mtpa) and is set pump much-needed cash into the southern African
nation’s ailing economy.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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IMF sees higher Nigeria inflation in 2020 on minimum wage, tax rises

ABUJA (Reuters) - Nigeria’s government may drive up inflation when it
increases a sales tax to partly finance its record 2020 budget and
implements a new minimum wage, the International Monetary Fund (IMF) warned.

 

The country, Africa’s top oil producer and the continent’s largest economy,
is faced with the choice of boosting growth in the face of lower oil
revenues or fixing its dilapidated road and rail networks, while paying off
debts and funding the higher minimum wage.

 

President Muhammadu Buhari on Tuesday presented a record 10.33
trillion-naira ($33.8 billion) budget for 2020 to lawmakers as he aimed to
spur growth at the start of his second term in office.

 

The spending plan includes a value-added tax increase from 5% to 7.5% and a
minimum monthly wage increase to 30,000 naira ($98) from 18,000 to implement
a change that was signed into law in April.

 

“Inflation will likely pick up in 2020 following rising minimum wages and a
higher VAT rate, despite a tight monetary policy,” the IMF said in a
statement late on Tuesday. “The outlook under current policies remains
challenging.”

 

Inflation, which has fallen steadily since May, dropped to a 3-1/2 year low
in August on lower food prices, increasing the chances of an interest rate
cut. However, the central bank has kept rates tight to support the naira.

 

The price index peaked at 18.7 percent in January last year, and has been in
double digits for three years, outside a central bank’s target of 6-9%. The
bank has said it would maintain its tight stance in 2019, and sees inflation
at 11.31 percent, rising to 12 percent this year before moderating.

 

The budget unveiled on Tuesday tops the previous record spending plan, which
was the 9.12 trillion-naira budget for 2018.

 

Buhari’s government has repeatedly rolled out record spending plans but
struggled to fund them due to lower oil output and an inability to boost
non-oil exports. This has kept the government dependent on expensive
borrowing, the IMF said.

 

“Over-optimistic revenue projections have led to higher financing needs than
initially envisaged, resulting in over-reliance on the expensive borrowing
from the central bank to finance the deficit,” the Fund said.

 

The IMF said Nigeria’s economy was recovering, albeit slowly after a 2016
recession, with its dollar buffers declining due to rising capital flight.
It said bigger deficits make monetary policy complex owing to the
government’s reliance on central bank for funding.

 

Economic growth slowed to 1.94% in the three months to the end of June, the
second quarter in a row to see deceleration. The Fund said growth could pick
up this year to 2.3% on the back of a good harvest and as the oil sector
recovery continues.

 

($1 = 306.0000 naira)

 

 

 

South Africa's September business confidence recovers from 34-year low -
SACCI

JOHANNESBURG (Reuters) - South African business confidence improved in
September, recovering from a 34-year low in the previous month as exports
and vehicle sales increased while economic activity picked-up, a survey
showed on Wednesday.

 

The South African Chamber of Commerce and Industry’s (SACCI) monthly
business confidence index (BCI) rose to 92.4 in September from 89.1 in
August.

 

Seven sub-indices of the index improved and three remained unchanged between
September and August.

 

“Positive annual contributions in September came from the higher U.S. dollar
price of precious metals, energy supply – the latter mainly owing to a
decline in the crude oil price,” SACCI said in a statement.

 

“There are indications that the economy may have hit a trough and could
obtain some stability which could auger well for growth prospects,” the
business body said.

 

Africa’s most industrialised economy expanded 3.1% in the second quarter
after contracting by the same margin in the first, and analysts are divided
on whether the momentum can be sustained due to the slow speed of policy and
economic reforms.

 

Finance Minister Tito Mboweni’s mid-term budget speech due on Oct. 30 will
be closely watched for details on the restructuring of state-owned power
utility Eskom and progress on reviving tax revenues.

 

 

 

Nigeria lands higher oil output target in OPEC+ cut deal

LAGOS/LONDON (Reuters) - OPEC has granted Nigeria a higher oil output target
under an OPEC-led deal to limit oil supply in a move unannounced by the
group, following efforts by Africa’s largest exporter to tweak the agreement
to accommodate its expanding oil industry.

 

The country’s allocation was increased to 1.774 million barrels per day
(bpd) from 1.685 million bpd at the last OPEC meeting in July, three OPEC
delegates with knowledge of the matter said.

 

“It’s happened,” one of the delegates said. “I’ve not heard of any other
changes to the agreement.”

 

The quota increase will mean Nigeria will see an improvement in its
compliance with the supply cut accord, but it is still pumping more crude
than the new target according to OPEC’s own figures and industry surveys.

 

Nigeria’s petroleum ministry and OPEC did not immediately reply to a Reuters
request for comment.

 

Abuja has had a dismal record in delivering its share of the cut,
overshooting by 400% in August according to the International Energy Agency.
OPEC put Nigerian production at 1.866 million bpd in August - far above the
new quota.

 

The nation has previously tried to draw a distinction between what it
considers as crude and what it considers as condensates, an ultra light
crude-like product that doesn't fall under the OPEC+ cut agreement.
[reut.rs/2gTrUNC]

 

Its own definition of condensates would shave a significant amount exports
from its cap. Data from Nigeria’s Department of Petroleum Resources pegged
daily average condensate production as between 414,000 to 497,000 bpd in
2017, the latest year available. That accounted for 17%-19% of total output
that year.

 

One of the OPEC delegates said OPEC granted Nigeria the target revision
because of the new Total-operated Egina oilfield which started production in
January and had not been factored in when the initial quota was calculated.

 

Some of the Egina production will also classify as condensates, meaning even
more of Nigeria’s output would not count towards the new cap.  

 

While OPEC has not formally announced the change, Nigerian Minister of State
for Petroleum Resources Timipre Sylva mentioned the new target in a
Bloomberg interview last week. He did not elaborate on circumstances leading
to the new target.

 

The 14-nation Organization of the Petroleum Exporting Countries agreed in
December with non-OPEC partners including Russia to curb crude production by
1.2 million bpd from the start of this year.

 

OPEC’s share of the cut is 800,000 bpd, with Venezuela, Iran and Libya
exempt. It is not clear whether this figure, or any other countries’
targets, have been adjusted to accommodate Nigeria’s increased quota.

 

Nigeria only started participating in the deal in January, having been
granted and exemption in previous OPEC+ cuts due to militant attacks that
reduced its output.

 

 

 

Senegal delays oil licensing round by a month

CAPE TOWN (Reuters) - Senegal has delayed the launch of an oil and gas
licensing round due on Wednesday until Nov. 4 as contract documents still
need to be finalised, oil minister Mahamadou Makhtar Cisse said.

 

“We need to ensure the legal framework for investors,” he told Reuters on
the sidelines of an oil and power conference in Cape Town.

 

Senegal’s ambitions to become a major oil and gas producer have been
overshadowed by allegations President Macky Sall’s brother was involved in
fraud related to two offshore gas blocks being developed by BP.

 

Asked whether the scandal had dented investor appetite, Cisse told Reuters
“We have not measured a negative impact.”

 

Prosecutors in Senegal launched an inquiry in June, and the president’s
brother Aliou Sall resigned from his government post following the
allegations reported by the BBC.

 

Senegal, where oil was discovered in 1961, expects all its offshore projects
to come online between 2022 and 2026, the minister said.

 

According to the International Monetary Fund, between 2014 and 2017, oil and
gas reserves worth more than 1 billion barrels of oil and 40 trillion cubic
feet of gas, most of it shared with Mauritania, were found.

 

“Discoveries are important but will not lead to a major transformation of
the economy, with hydrocarbons expected to make up not more than 5 percent
of GDP,” the IMF said in a January country report.

 

The new licensing round will be open for six months and will seek developers
for ten to twelve offshore fields, Mamadou Faye, managing director of
national oil company Petrosen told Reuters.

 

The IMF forecasts growth of around 6.9 percent in 2019 for Senegal before
this rises to 11.6 percent in 2022 when first oil is expected to flow.

 

Kosmos Energy, a U.S.-listed oil and gas exploration company, said last
month the results of its appraisal drilling offshore Senegal were good
enough to consider a second liquefied natural gas (LNG) export plant in the
country.

 

 

South Africa's rand pauses slide as risk clouds gather

JOHANNESBURG (Reuters) - South Africa’s rand was little changed early on
Wednesday as traders took profits on the dollar and braced for more
volatility, with hopes fading for a trade truce between the United States
and China.

 

At 0645 GMT the rand was up 0.1% at 15.2575 per dollar, a small move off its
overnight low of 15.3050.

 

On Tuesday, the rand shed nearly 1% as risk sentiment was battered by the
standoff between the United States and Turkey over Syria and then by
Washington’s imposing visa restrictions on Chinese officials.

 

The rand is one of the most liquid and frequently traded emerging-market
currencies, and a high degree of foreign investment makes it sensitive to
offshore events and swings in risk sentiment.

 

“The rand’s underperformance yesterday could continue through the week, with
key topside resistance levels in the 15.40-15.50 region likely to be eyed as
investors will be hard-pressed to look favourably on a rand,” ETM Analytics
said in a note to clients.

 

The local session will see the release of September business confidence
index, followed by the release after the close of the Federal Reserve’s
minutes of its last meeting.

 

The South African Chamber of Commerce and Industry’s monthly business
confidence index fell to a three-decade low last month, underlining the
fragile state of Africa’s most advanced economy.

 

Bonds were slightly higher, with the yield on the benchmark 2026 paper down
1.5 basis points to 8.265%.

 

 

 

Zambia's KCM smelter shut down earlier than planned after leak - liquidator

LUSAKA (Reuters) - Zambia’s Konkola Copper Mines (KCM) smelter was on
Wednesday shut down for annual maintenance two days earlier than planned
after a leak, the provisional liquidator Milingo Lungu said.

 

Lungu said the smelter, which was scheduled to undergo annual maintentance
for 35 days starting on Friday, would now remain shut for 37 days until Nov
15 when output would resume.

 

“There was a leak and hot copper touched water creating steam. We have
therefore decided to shut down the smelter for annual maintenance two days
ahead of schedule,” Lungu said.

 

Vedanta has been locked in a dispute with the Zambian government since May
when Lusaka appointed a liquidator to run KCM, which is 20% owned by
Zambia’s state mining company ZCCM-IH and the rest by Vedanta. Zambia
accused KCM of breaching the terms of its licence, an accusation the company
has denied.

 

 

 

Nigerian president offers record 10.33 trln-naira budget for 2020

ABUJA (Reuters) - Nigerian President Muhammadu Buhari presented a record
10.33 trillion-naira ($33.8 billion) budget for 2020 to lawmakers on
Tuesday, the first spending plan since his re-election in February.

 

The plan for Africa’s top oil exporter assumes crude production of 2.18
million barrels a day and an oil price of $57 per barrel.

 

Nigeria emerged from its first recession in 25 years in 2017. Growth remains
sluggish, although higher oil prices and recent debt sales have helped the
country to accrue billions of dollars in foreign reserves.

 

Buhari told lawmakers at a joint session of the upper and lower chambers of
parliament that the “economic environment remains challenging” but he said
the budget was expected to increase the pace of growth.

 

The spending plan, which includes a value-added tax increase from 5% to
7.5%, is up from the 8.83 trillion-naira budget for 2019 and tops the
previous record budget spending plan set by the 9.12 trillion-naira budget
for 2018.

 

Buhari’s government has repeatedly rolled out record spending plans but
struggled to fund them because of lower oil production and an inability to
boost non-oil exports.

 

The budget must still be approved by parliament before being signed into law
by Buhari, a process that can take months.

 

 

 

 

Oxfam alleges abuse in UK supermarket supply chains

Workers on farms and plantations that supply big UK supermarkets are being
subjected to poverty and human rights abuses, according to Oxfam.

 

A "relentless" drive for retailer profits is fuelling poverty, abuse, and
discrimination, the charity said.

 

Poor conditions were rife on farms that supply supermarkets including Tesco,
Sainsbury's and Morrisons, it added.

 

But the British Retail Consortium said retailers were "spearheading actions"
intended to improve millions of lives.

 

Oxfam conducted research in India and Brazil, and surveyed workers in five
other countries.

 

Workers on 50 tea plantations in Assam told Oxfam that cholera and typhoid
are "prevalent because workers lack access to toilets and safe drinking
water".

 

Half the workers questioned got ration cards from the government due to low
wages, while female employees regularly worked for up to 13 "back-breaking"
hours a day, it said.

 

Workers in Assam told Oxfam that cholera and typhoid are "prevalent" due to
unsanitary conditions.

Tesco, Sainsbury's, Morrisons and Aldi all source tea from those suppliers,
while Asda-owner Walmart would neither confirm nor deny whether it did, the
charity said.

 

Oxfam found that, of the 79p paid by shoppers for a 100g pack of black Assam
tea in the UK, supermarkets and tea brands receive 49p while workers
collectively received 3p.

 

The charity said workers on the Assam estates could earn a living wage if
they were paid 5p more of the retail price.

 

Pesticide price

Workers on fruit farms in Brazil told Oxfam they had developed skin
conditions from using pesticides without adequate protection.

 

Women on those grape, melon and mango farms also said they had to rely on
government handouts outside of harvest season.

 

Those farms supply supermarkets including Lidl and Sainsbury's, and
previously Tesco and Morrisons, the charity said.

 

Walmart again neither confirmed nor denied links.

 

Female employees in Assam regularly worked 13-hour "back-breaking" days,
Oxfam said.

Rachel Wilshaw, Oxfam ethical trade manager, said: "Despite some pockets of
good practice, supermarkets' relentless pursuit of profits continues to fuel
poverty and human rights abuses in their supply chains.

 

"Supermarkets must do more to end exploitation, pay all their workers a
living wage, ensure women get a fair deal and be more transparent about
where they source their products."

 

A separate Oxfam survey of more than 500 workers in the Philippines,
Ecuador, Costa Rica, Peru and the US found three quarters of workers saying
they were not paid enough to cover basic needs such as food and housing.

 

More than a third said they were not protected from injury or harm at work
and were not able to take a toilet break or have a drink of water when they
needed it.

 

An Oxfam spokesperson said abuses in supermarket supply chains were
"endemic".

 

Supermarket action

However, Peter Andrews, head of sustainability at the British Retail
Consortium (BRC), said: "Supermarkets in the UK are spearheading actions
aimed at improving the lives of the millions of people across the globe who
contribute to the retail supply chain.

 

"Our members are working hard to address existing injustices and continue to
collaborate internationally with NGOs [non-governmental organisations],
business groups and government on this vital issue."

 

Meanwhile, Oxfam ranked supermarket giants on their sourcing policies, with
all showing an improvement compared with last year.

 

Tesco, which was at the top of the pile, was given a score of 38%.

 

A Tesco spokesperson said: "This is the second year in a row that Tesco has
been assessed by Oxfam as doing most, of all major supermarkets globally, to
ensure human rights are respected in food supply chains."

 

It said its tea was Rainforest Alliance certified and that it was "committed
to improving the lives of tea workers and ensuring minimum working
conditions."

 

It added: "We know there is always more to do and we are working
collaboratively with NGOs, trade unions and others to improve wages in the
key produce, tea and clothing sectors and ensure working conditions are
fair."

 

An Aldi spokesperson said: "We continue to work hard to ensure every person
working in our supply chain is treated fairly and has their human rights
respected.

 

"We share the values behind Oxfam's campaign and are in regular dialogue
with them."—BBC

 

 

 

Liverpool is home to the 'chattiest mobile phone users'

People in Liverpool have longer mobile phone calls than the residents of
nine other major British cities, an Ofcom survey has suggested.

 

Liverpudlians spend six minutes and 51 seconds on a single call, on average.

 

That's more than 40% longer than Londoners, who came second in the survey
results.

 

People in Bradford had the shortest conversations on average, at three
minutes and 15 seconds.

 

Data for the survey was gathered from 150,000 mobile phone users between 1
January and 31 March this year.

 

The survey did not consider calls made via Skype or WhatsApp and similar
apps.

 

The research also found that people who used their phones for online
services mostly stuck to wi-fi. Mobile data services such as 3G and 4G were
used for less than a third of such activity.

 

It's partly thanks to this that 60% of users consume one gigabyte of data
every month, the regulator said.

 

Analysis by the Citizens Advice earlier this year found that 71% of SIM-only
customers were paying for data they did not use - costing £800 million
annually.

 

Data shows that the total number of minutes spent on mobile calls increased
from 132.1 billion to 148.6 billion between 2012 and 2017.

 

However, last year data collected by Ofcom showed that the amount of time
spent making calls from mobile phones had fallen for the first time.

 

Young people often prefer messaging services over voice calls, the regulator
has noted, and services such as WhatsApp and Facebook Messenger are becoming
increasingly popular alternatives to voice calls.

 

Having a good signal has "never been more important" said Ian Macrae,
director of market intelligence at Ofcom.

 

The regulator said that while 92% of people get basic mobile phone reception
in their homes from all four networks, some still "struggle" to get a good
signal.

 

Consumer group Which? argued that "too many" people faced poor reception.

 

"Until the government publishes plans for how it will achieve its current
commitment, the UK will continue to lag behind and lack the comprehensive
mobile and broadband connectivity it desperately needs," said Caroline
Normand, director of advocacy.

 

The UK government has committed to increasing mobile coverage to 95% of the
UK by the end of 2022.--BBC

 

 

 

 

Tech giants face higher tax bills under shake-up

New tax plans aimed at making global firms pay more tax have been published
by an international economic body.

 

The proposals would give governments more power to tax big technology firms
such as Apple, Facebook and Google.

 

The Organisation for Economic and Development (OECD) proposals would mean
big companies paying more tax where they sell products and make profits.

 

Multinational companies could be liable for tax in places where they have no
physical presence.

 

Companies that do business in more than one country have long been a
challenge for tax authorities.

 

Profit shifting

There is a very obvious incentive to structure their business in a way that
minimises their tax bills.

 

Typically that involves allocating profits to subsidiaries in countries -
including so-called tax havens - where corporate tax rates are very low even
if they do little business there.

 

The issue has been highlighted by the growth of big technology companies
which can provide services in countries where they have little or no
physical presence.

 

The OECD's proposal includes new rules on where tax should be paid and on
the proportion of their profits that should be taxed in each country.

 

The OECD is an organisation whose members are mainly rich countries,
although its work on corporate tax brings in a much wider group, a total of
134 countries and jurisdictions.

 

The organisation's Secretary General Angel Gurria said:

 

"We're making real progress to address the tax challenges arising from
digitalisation of the economy, and to continue advancing toward a
consensus-based solution to overhaul the rules-based international tax
system".

 

Tax moves

A number of countries, including France and Britain, have been making their
own plans to introduce digital services taxes.

 

The British proposal would affect companies providing social media
platforms, search engines or online marketplaces.

 

It is scheduled to come into effect in April 2020 but the government said it
would rescind it if "an appropriate international solution is in place".

 

The French tax is already in force, though Paris plans partial refunds if
companies pay more under the current regime than they would have been liable
for if there is an international agreement.

 

There are concerns that such unilateral measures could aggravate
international economic tensions at a time when they have already been
raised.

 

US companies would be particularly affected by these measures.

 

Washington trade officials have argued that the French tax unfairly targets
American companies and are investigating it under a procedure that could
ultimately lead to retaliation in the shape of tariffs on French goods.

 

So Mr Gurria clearly wants to get an international agreement done soon. He
said: "Failure to reach agreement by 2020 would greatly increase the risk
that countries will act unilaterally, with negative consequences on an
already fragile global economy."

 

'Increasing complexity'

The proposed measures have been criticised by campaigners.

 

Alex Cobham, chief executive of the Tax Justice Network said :"The OECDs
proposals bring more complexity for tax abusers to hide behind, fail to
meaningfully curb corporate tax abuse and will shrink the tax revenues of
lower-income, non-OECD member countries that currently suffer losses most
intensely from corporate tax abuse."

 

The OECD proposals would need to be agreed by governments to come into
force. The international organisation has launched a public
consultation.--BBC

 

 

Top Barclays executives 'hid £280m payment', court hears

Two top executives at Barclays Bank dishonestly hid a £280m payment to
investors from Qatar, a court heard today.

 

Prosecutors said the executives created a bogus agreement for advisory
services so they could pay Qatari investors extra fees for investing.

 

The defendants deny charges of fraud.

 

The Serious Fraud Office told the court that in the 2008 banking crisis
Barclays needed to raise billions of pounds from private investors.

 

But the Qataris drove a hard bargain, demanding commissions from the bank
more than twice as high as other investors were getting in exchange for
investing £2.05bn at the height of the financial crisis.

 

Ex-Barclays executives face fraud trial over Qatar rescue

Barclays executive Roger Jenkins agreed to pay the difference and created a
bogus agreement with Qatar for advisory services, prosecutors said. It was
the second such agreement that year.

 

Mr Jenkins, together with finance director Chris Lucas, were responsible for
dishonestly hiding the extra payment by means of the agreement, the court
heard.

 

'Lack of negotiations'

"The Qatari demand for investing had to be satisfied. The real fees for
investing were not disclosed and once again, the instrument of fraud, an
advisory services agreement was produced," said prosecutor Ed Brown QC.

 

"Despite the fact that it committed Barclays to pay more than a quarter of a
million pounds, the letter was only a little longer than a single sheet of
paper", the jury heard.

 

"The letter goes on to refer in the broadest and - you may think- vaguest
possible language, to the types of services to be provided. [It] also refers
to the need to 'refine' the types of services to be provided at some point
in the future.

 

"You may wish to bear in mind that by the time
 Barclays was already the
purported beneficiaries of the advisory services provided under a very
similar [agreement]. It had already agreed to pay £42m on those so-called
'advisory services'".

 

"The complete lack of any negotiations as to the nature of the services for
£280m or their value is just one indicator of its fundamental dishonesty,"
Mr Brown said.

 

He added that "in order to conceal the existence of the huge additional
payments to the Qataris, it was necessary that the public documents
contained serious and dishonest representations as to the true financial
picture of the investment."

 

The agreement was not mentioned in public prospectuses or subscription
agreements relied on by investors taking part in the second capital raising
by Barclays in the autumn of 2008.

 

"These statements were lies because they concealed the existence of the
[advisory services agreement] fee. Indeed the very existence of the
[agreement] was not revealed in the documents," Mr Brown said.

 

Today was the second day of a retrial of three top Barclays executives - the
only criminal trial in the UK of senior bank executives since the 2008
crash.

 

Roger Jenkins is charged with two counts of fraud and two of conspiracy to
commit fraud in connection with two capital raisings by Barclays in June
2008 and October and November 2008.

 

Co-defendants Tom Kalaris and Richard Boath are each charged with fraud and
conspiracy to commit fraud only in connection with the earlier capital
raising in June 2008.--BBC

 

 

 

How selling citizenship is now big business

You can be born into it, you can earn it, and you can lose it. Increasingly,
you can also invest your way into it.

 

The "it" is citizenship of a particular country, and it is a more fluid
concept than ever before. Go back 50 years, and it was uncommon for
countries to allow dual citizenship, but it is now almost universal.

 

More than half of the world's nations now have
citizenship-through-investment programmes. According to one expert, Swiss
lawyer Christian Kalin, it is now a global industry worth $25bn (£20bn) a
year.

 

Mr Kalin, who has been dubbed "Mr Passport", is the chairman of Henley &
Partners, one of the world's biggest players in this rapidly growing market.
His global business helps wealthy individuals and their families acquire
residency or citizenship in other countries.

 

He says that our traditional notions of citizenship are "outdated". "This is
one of the few things left in the world that is tied to blood lines, or
where you are born," he says. He argues that a rethink is very much due.

 

"It's super unfair," he says, explaining that where we are born is by no
means down to our own skill or talent, but instead "pure luck". "What is
wrong with regarding citizenship like a membership," he adds. "And what is
wrong with admitting talented people who will contribute?"

 

There are those who support his argument. But for many, the idea that
passports, so tied to identity, are in some way a commodity, doesn't sit
well.

 

We followed the citizenship trail to the tiny Pacific island nation of
Vanuatu. Since the country introduced its new citizenship scheme four years
ago, it's seen an explosion of interest. Passports now provide the biggest
source of its government's revenues.

 

For many aspirational Vanuatu-passport holders, the biggest draw is
visa-free travel throughout Europe.

 

Most foreign recipients of Vanuatu passports never even step foot in the
country. Instead they apply for their citizenship in offices overseas, like
the licensed Vanuatu citizenship broker PRG Consulting, based in Hong Kong.

 

Hong Kong is one of the world's biggest citizenship marketplaces. In a cafe
at Hong Kong airport, we met the citizenship agent MJ, a private businessman
who helps an increasing number of mainland Chinese obtain a second or even
third passport.

 

"They don't feel safe [in China]," he says of his clients. "They want access
to Europe to open a bank account, to buy property or to start businesses."

 

Citizenship is a competitive global market, and for many small and island
nations, notably in the Caribbean - the price for a passport is around
$150,000. The cost of a Vanuatu passport is said to be around the same
level.

 

How much does it cost to buy a passport?

Antigua and Barbuda; from $100,000

St Kitt's and Nevis; from $150,000

Montenegro; from $274,000

Portugal; from $384,000

Spain; from $550,000

Bulgaria; from $560,000

Malta; from $1m

US; between $500,000 and $1m invested in a business creating 10 jobs

UK; from $2.5m

A Vanuatu passport, MJ explains, is "so fast" to arrange (you can get one in
just 30 days), and that helps make it a popular choice. But Mr Kalin and
others caution that Vanuatu has a reputation for corruption. As a result,
Henley & Partners and others do not deal with the Vanuatu citizenship
programme.

 

However, this doesn't stop the interest from China. A few years ago Hong
Kong television channels aired catchy TV advertisements promoting Vanuatu
citizenship, aimed at the territory's steady flow of visitors from the
mainland.

 

So how many Chinese clients actually visit Vanuatu, after receiving
citizenship? Maybe one in 10, guesses MJ.

 

Port Vila is the capital of Vanuatu, and a city of contrasts. The roads are
often flooded and scarred with potholes. There's not a single set of traffic
lights, but congestion is worsening thanks to the growing number of shiny
four-wheel drives.

 

It's a tax haven, and recently rejoined the EU's "blacklist" of countries,
over transparency and corruption issues.

 

The country's people - known as Ni Vanuatu - were only officially recognised
as citizens themselves in 1980, when the country achieved independence.
Previously it was an Anglo-French condominium called the New Hebrides, and
the people are scattered over a daisy chain of more than 80 islands.

 

Less than 40 years ago, they were stateless. A fact not lost on former Prime
Minister Barak Sope.

 

"I didn't have a passport until 1980," he says, sitting in a hotel and
casino on Port Vila's main road. "I had to travel with a piece of paper the
British and the French gave to me. It was humiliating."

 

Mr Sope says it is a "betrayal" for Vanuatu to sell its citizenship, and
points to the flood of Chinese investment in the region. "The Chinese have
so much more money than us," he says exasperated.

 

The Chinese investment is criticised by locals such as Mr Sope, who complain
that the Chinese companies keep all the money, and only employ Chinese
labour.

 

Vanuatu's all male government, one of only three countries in the world
where women are entirely excluded from politics, was not keen to speak to us
about its citizenship scheme. But we tracked down a government appointed
citizenship agent, Bill Bani, who explains his take on the initiative.

 

"We have to look at Vanuatu on a global scale," he says. "Other countries
sell passports to make their living, we don't have a lot of natural
resources. It's bringing in a lot of money to Vanuatu."

 

But for the mainly rural population the policy has been highly controversial
since its inception in 2015.

 

Anne Pakoa, a community leader, shows us around a typical village made up of
corrugated iron shacks. It's just 10 minutes' drive down a dirt road from
the shops and restaurants of the capital but feels a world away.

 

Anne says that local communities aren't seeing the money from the passport
sales, despite promises that the scheme would rebuild infrastructure and
homes after the devastating Cyclone Pam in 2015.

 

"Our ancestors died for our freedom. Now people are carrying the same green
passport I carry? For $150,000? Where is the money? I think this has to
stop," she says.

 

Susan, another woman from the same village, shows us a dirty well. "I want
the government to provide a running tap, so that the children can have a
shower, and drink clean and safe water," she says.

 

Global Trade

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

 

Why 'hypebeasts' have fallen for Asian streetwear

Can a sacred drink boost an island's fortunes?

The hidden links between slavery and Wall Street

Will Brexit hit Britain's fresh vegetable supplies?

With demand from the Chinese market booming, Dan McGarry, who runs the local
newspaper, says it will be hard to imagine a change in policy anytime soon.

 

Passport sales now account for more than 30% of the country's revenue,
according to Dan. "For a tiny country like ours this is a big deal. But we
have to ask ourselves, is this what we fought for? Is this right? Is it
right to sell our hard won sovereignty to the highest bidder?"

 

It's a question that many countries, not just Vanuatu, will have to grapple
with in an increasingly globalised world. But as Mr Kalin, from Henley &
Partners, says: "Citizenship through investment, and investment migration
programmes, are nothing but a reflection of a world where everything has
become more fluid."--BBC

 

 

 

Google offers tool for cities to measure emissions

A tool Google offered in the US to help cities measure pollution and
emissions levels is now available in Europe.

 

It compiles transport and building data from Google Maps with publicly
available information about emissions

 

Google will initially offer the tool to Birmingham, Manchester,
Wolverhampton and Coventry, Dublin and Copenhagen.

 

It plans to add more cities on other continents in coming weeks and any city
can to nominate itself via an online form.

 

The Environmental Insights Explorer (EIE) offers data in four categories:

 

building emissions

transport emissions

general emissions

solar potential

The dashboard is designed to help cities see what changes they could make to
lower emissions, such as creating more bike lanes or installing solar panels
on buildings.

 

Manchester council thinks the tool will bring greater accuracy to the work
it is already doing on emissions

In a separate project, Air View, Google Street View cars have been measuring
air pollution as they drive through cities, including London and Copenhagen.

 

And this data will also be shared via the EIE tool.

 

An official of the city of Copenhagen said: "With this new data, the city of
Copenhagen can see for the first time pollutant levels of air quality at the
ultrafine particle level on the roads in the city centre, as well as leading
into the city centre, that are contributing the most to the city's air
pollution problems."

 

 

West Midlands Mayor Andy Street said: "We have already declared a climate
emergency in the West Midlands and are now working up our plans as to how we
become carbon neutral no later than 2040.

 

"This data being made available across our three cities by Google will make
a substantial difference to our efforts and will help us target specific
areas to achieve greater results."

 

Global Covenant of Mayors for Climate and Energy executive director Amanda
Eichel said: "We believe EIE can serve as a critical first step for city
sustainability teams to better assess their current situation and more
efficiently track and monitor their progress in meeting their climate
protection goals."

 

Partnerships between cities and technology companies have not always gone
well, though.--BBC

 

 

 

Thomas Cook buyers pledge to save 555 shops and 2,500 jobs

All 555 Thomas Cook shops are to be bought by rival Hays Travel in a move
that could save up to 2,500 jobs.

 

The independent travel agent said the move gives it shops in areas where it
had little or no presence, including Scotland and Wales.

 

John Hays, who set up the Sunderland-based firm 40 years ago, said he hoped
the shops would reopen within days.

 

It had been an emotional day, he said, with many staff crying when they were
told their jobs were saved.

 

He said it was difficult to give cast-iron guarantees about every Thomas
Cook shop, because there would now be talks with individual landlords.

 

However, "it is certainly our intention to take on all the staff; to welcome
them back," he added. The shops will be branded under the Hays name.

 

There is likely to be some overlap of stores, and the BBC estimates that
there are more than 30 locations where there would be two competing High
Street branches. In Yorkshire and the North East, for instance, there are
branches just streets apart in Sunderland, Newcastle, York, Leeds,
Doncaster, and at Morpeth, South Shields.

 

Who are the family buying Thomas Cook shops?

The acquisition, for an undisclosed sum, is a significant step for Hays,
which has 190 shops, 1,900 staff, and last year had sales of £379m,
reporting profits of £10m.

 

Mr Hays, who owns the business with wife Irene, said: "It is a game-changer
for us, almost trebling the number of shops we have and doubling our
workforce - and for the industry, which will get to keep some of its most
talented people."

 

'It's been emotional'

The takeover deal was struck with the travel industry regulator, the Civil
Aviation Authority, after several days of negotiations. He said he was
"elated to get the deal over the line. It's been emotional".

 

Many ex-Thomas Cook staff had cried when told they still had jobs, he said.
"These people did nothing wrong. One day they were in jobs, and the next day
they were locked out."

 

He expected many of the shops to reopen on Thursday, "although probably with
a skeleton staff". There were some logistics problems - Hays had still to
locate many of the shop keys, he said.

 

More than 100 new jobs will be based at the company's Sunderland
headquarters, with the rest in shops across the UK. The company has tweeted,
urging former Thomas Cook staff to apply.

 

When Thomas Cook collapsed, it put 22,000 jobs at risk worldwide, including
9,000 in the UK.

 

It also sparked the biggest ever peacetime repatriation by the Civil
Aviation Authority (CAA) to bring more than 150,000 British holidaymakers
back to the UK. The last flight to repatriate Thomas Cook customers landed
at Manchester Airport on Monday.

 

Business Secretary Andrea Leadsom said she hoped the deal "will provide
significant re-employment opportunities for former Thomas Cook employees,
alongside the advice and support we will continue to provide to help people
find a new job as quickly as possible".

 

Samantha Kennedy, 34, from Alness in Scotland worked at an Inverness branch
of Thomas Cook for six years.

 

She told the BBC that her WhatsApp chat group had been "going crazy this
morning since the media started reporting" the deal.

 

"We've not been told anything. My manager hasn't been told anything. It
would be absolutely amazing if it was true," she said.

 

Samantha said she was sad the Thomas Cook brand had gone, but she loved
working in the industry.

 

"To continue to work in the industry would be amazing and there's not many
travel shops in Inverness, so if Hays were to take over I think people would
be pleased."

 

'Deal with landlords'

The Transport Salaried Staffs' Association (TSSA) union, which had members
in Thomas Cook shops around the UK and in its head office in Peterborough,
welcomed the move.

 

Manuel Cortes, TSSA's general secretary, said it offered "real hope of
reemployment to former Thomas Cook retail staff, many of whom are our
members."

 

The business is thought to have a licence for six months to occupy Thomas
Cook stores, giving Hays time to strike new deals with landlords.

 

What is Hays' plan?

Ian Bell, head of travel and tourism at accountancy firm RSM, said it was a
"shrewd move" for Hays, but would also represent a quadrupling of its travel
agency stores at a time when customers are increasingly booking holidays
online.

 

"Much may depend on the deals that Hays can strike with its new High Street
landlords," said Mr Bell.

 

As Hays bought the stores from the administrators, it means it will have
bought them at a lower price than if Thomas Cook was still trading.

 

Julie Palmer, partner at Begbies Traynor, said that in waiting, Hays had got
a "best price" for the stores.

 

However, she questioned the logic for the transaction at a time when
customers are turning away from High Street travel agents.

 

"You have to wonder what Hays' plan is and how they can make it a success.

 

"Has the travel firm been gung-ho in trying to secure a cheap deal without
assessing the viability of taking on these stores?," she asked.

 

What does it mean for package holiday?

Hays Travel is not like Thomas Cook, which owned hotels and an airline.
Pippa Jacks, group editor of Travel Trade Gazette, told the BBC: "They don't
have a [large] tour operating arm, they don't have an airline, they don't
own hotels or cruise ships
 so it makes them quite nimble in terms of what
they sell".

 

Hays is said to have beaten off other bidders, which she said suggested that
the package holiday industry was not dead.

 

"If you're spending a lot of money, if you're not particularly confident and
you want some personal recommendations, actually going to see a real human
who will sit and listen and take time to understand your personal
requirements is very valued by a lot of holidaymakers," she said.--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
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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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