Major International Business Headlines Brief::: 10 September 2019

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Major International Business Headlines Brief::: 10 September 2019

 


 

 


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*  Somalia economic growth likely to inch up this year, World Bank says

*  South Africa's state defence firm Denel names new finance chief

*  Kenya's Equity in talks to buy controlling DRC bank stake

*  South Africa's rand starts week on the front foot

*  Kenyan shilling stable amid receding importer demand

*  Fired Old Mutual boss plans return to work as court rules against insurer

*  Ethiopia should slowly liberalise its exchange rate –central bank
governor

*  MTN Nigeria shares hit 3-month high after partial reopening

*  British Airways: Can strike-hit airline rebuild its reputation?

*  Brexit: BMW could cut shifts at Mini plant in event of no-deal

*  Former PM's Brexit negotiator joins Goldman Sachs

*  Google: 50 US states and territories launch competition probe

*  UK growth rebound eases recession fears

*  What does Disney's Pinewood deal mean for Marvel, Bond and British film?

*  Hong Kong tourism falls 40% as protests continue

 

 

 

 


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Somalia economic growth likely to inch up this year, World Bank says

NAIROBI (Reuters) - Somalia’s economy is expected to grow by 2.9% this year,
from 2.8% last year, before growth quickens to 3.2-3.5% in the medium term,
the World Bank said on Monday.

 

The Horn of Africa country has been in turmoil since 1991, when clan
warlords overthrew President Siad Barre and then turned on each other. Over
the past decade it has been hit by famine and sporadic terror attacks by al
Qaeda-linked militant group al Shabaab.

 

The higher growth forecast for the next three-to-five years would depend on
the country being able to sustain its current economic reform momentum, the
World Bank said in a statement.

 

Tax collection by the government increased by 29% last year, as the economy
recovered from a drought the previous year and the government changes its
tax policies, the World Bank said.

 

 

“While this progress is encouraging, the available fiscal space remains
insufficient to meet expenditure needs (for) education and health sectors,”
the bank said.

 

It asked the government to form a fund dedicated to education to allow
authorities in Mogadishu to mobilise more cash from regional states and
other partners to support learning.

 

In May, the International Monetary Fund said Somalia’s economy was on the
right track but warned that it was still vulnerable to fragile security,
climate change and poverty.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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South Africa's state defence firm Denel names new finance chief

JOHANNESBURG (Reuters) - South Africa’s Denel named a new chief financial
officer (CFO) on Monday, as the struggling state-owned defence firm seeks to
improve corporate governance and return to profitability.

 

A cornerstone of the country’s once-mighty defence industry, Denel recorded
a 1.76 billion rand ($119 million) loss - its first in eight years - in 2018
and is among several state-owned enterprises being kept afloat with
government bailouts.

 

Carmen Le Grange, a chartered accountant who served as a partner at
PricewaterhouseCoopers before founding her own consultancy, is joining Denel
this week as CFO and will serve on its board, the company said.

 

“We expect Ms. Le Grange to play a leadership role to further stabilise
Denel’s finances and implement the measures introduced by the Board to
improve performance and restore confidence in the future of the company,”
Denel CEO Danie du Toit said.

 

In 2016, Denel’s senior management became embroiled in a corruption scandal
involving friends of former president Jacob Zuma, the Gupta brothers. In
response, banks pulled lending.

 

It is slowly filling senior management positions - du Toit was appointed in
December - and is pushing ahead with a turnaround strategy that could see it
begin exiting loss-making businesses and forging new equity partnerships
within months.

 

($1 = 14.7403 rand)

 

 

 

Kenya's Equity in talks to buy controlling DRC bank stake

NAIROBI (Reuters) - Kenyan lender Equity Group said on Monday it was in
talks with some of Banqué Commerciale du Congo’s (BCDC) shareholders to buy
a controlling stake for cash, stepping up its expansion in Africa.

 

Equity already has a subsidiary in DR Congo, which is one of the biggest
countries on the continent by land mass and has more than 80 million people,
making it appealing to ambitious lenders in regional states looking for
growth.

 

The Kenyan bank did not identify the BCDC shareholders or the size of the
proposed deal. A combination would create the country’s second largest bank
with assets of more than $1 billion, said Nairobi-based analyst George Bodo.

 

The DR Congo market is mainly focused on serving big companies with
operations there, making it necessary to have a big balance sheet to be able
to compete and grow Bodo said. Rawbank is the leading commercial bank in DR
Congo.

 

In April, Equity bolstered its African presence by announcing the purchase
of shares in banks in Rwanda, Zambia, Mozambique and Tanzania, buying the
assets of London-listed financial services firm Atlas Mara.

 

 

South Africa's rand starts week on the front foot

JOHANNESBURG (Reuters) - South Africa’s rand strengthened against the dollar
on Monday, with momentum reignited by upbeat remarks from the U.S. Federal
Reserve chairman and a Chinese economic stimulus package.

 

At 0734 GMT the rand was 0.34% firmer at 14.7700 per dollar from an
overnight close of 14.8200.

 

Fed Chair Jerome Powell said on Friday in Zurich the central bank will
continue to act “as appropriate” to sustain the economic expansion in the
world’s biggest economy, sticking to a phrase that financial markets have
read as signalling further interest-rate reductions ahead.

 

Powell’s remarks came as the Chinese central bank moved on Friday to cut how
much cash banks must hold in reserve, releasing liquidity to shore up an
economy hit by the Sino-U.S. trade conflict.

 

Easing policy is also expected in the Eurozone later this week when the
European Central Bank (ECB) governing council meets.

 

“Risk-on trading patterns stemming from this move will be positive for
emerging market assets this week,” Rand Merchant Bank’s Siobhan Redford said
in a note.

 

Locally, investors will this week set their eyes on manufacturing and mining
production data, which will provide an indication of the activity in the
primary and secondary sectors of the economy.

 

“We expect the rand to trade sideways today and drift around the 14.80
level, but “risk-on” is still evident in the market thus we have a slight
bias toward the rand drifting stronger,” Andre Botha, Senior Dealer at
TreasuryONE said in a note.

 

In equities, the broader All-Share index inched up 0.04% to 55,615 points,
while in fixed income the yield on the benchmark government bond due in 2026
stood at 8.15%.

 

 

 

 

Kenyan shilling stable amid receding importer demand

NAIROBI (Reuters) - The Kenyan shilling was stable against the dollar on
Monday supported by inflows from diaspora remittances and portfolio
investors buying government debt amid receding dollar demand from oil
importers, traders said.

 

At 0836 GMT, commercial banks quoted the shilling at 103.75/95 per dollar,
compared with 103.85/104.05 at Friday’s close.

 

 

 

Fired Old Mutual boss plans return to work as court rules against insurer

JOHANNESBURG (Reuters) - Sacked Old Mutual chief executive Peter Moyo
intends to return to his desk next week, his lawyer said on Friday after a
Johannesburg court dismissed the South African insurer’s attempt to block
his temporary reinstatement.

 

Moyo, who was fired in June in a dispute over a conflict of interest, was
temporarily reinstated by the court in July but Old Mutual said he could not
return to work while it appealed.

 

South Africa’s second largest insurer had hoped to block Moyo’s
reinstatement, arguing that his temporary reinstatement would in effect be
permanent as a court case against his dismissal would take so long.

 

But Judge Brian Mashile on Friday ruled in favour of Moyo, whose lawyer
confirmed the ruling and told Reuters the chief executive intended to return
to work on Monday.

 

Moyo has applied to have Old Mutual’s board declared delinquent in an
increasingly messy public battle that has frustrated investors and knocked
around 15% off the 173-year-old insurer’s share price.

 

The board has repeatedly said a breakdown in relations and trust with Moyo
is such that it is untenable for him to continue as CEO, and fired him for a
second time in August.

 

An Old Mutual spokeswoman said this second sacking would prevent Moyo from
returning to work, adding that Old Mutual had also been granted leave to
appeal.

 

Iain Williamson is running Old Mutual as interim CEO and the insurer has
said the dispute is not disrupting its operations.

 

REPUTATIONAL BLOW

Old Mutual shares were up 0.82% at 1252 GMT on Friday.

 

Warwick Bam, insurance analyst at Avior Capital Markets, said Friday’s
ruling probably did not have much significance on the longer case, but it
was another reputational blow.

 

“That’s the disappointment: the reputational damage for the management team
and how poorly they have dealt with this, and how wrong they have been in
their communication.”

 

Greg Davies, trader at Cratos Capital, said investors were likely to be
pleased Old Mutual could appeal to another judge.

 

The market likely see the dispute as a “short-term, solveable problem”, he
said.

 

Moyo has also applied twice to have Old Mutual declared in contempt of court
over its refusal to allow him back to work and its second attempt to sack
him.

 

In the longer-term, he is seeking to be permanently reinstated or granted
damages from the insurer in a fuller case against his dismissal.

 

In its argument against his temporary reinstatement, Old Mutual said this
process would likely last the duration of his remaining term at the company.

 

 

 

Ethiopia should slowly liberalise its exchange rate –central bank governor

CAPE TOWN (Reuters) - Ethiopia should slowly liberalise its exchange rate
regime, but moving to a fully floating rate for the birr currency is
unlikely over the next three years, its central bank governor told Reuters
on Friday.

 

National Bank of Ethiopia Governor Yinager Dessie also forecast that the
economy, one of the fastest-growing in Africa for the past decade, would
expand by 10% in annual terms on average over the next three years.

 

“There is no doubt that we should move slowly to the market type of forex
management. But our issue is that we need to look at the timing,” Dessie
said. “Within the coming three years, we would like to relax a little bit on
the currency side.”

 

 

 

MTN Nigeria shares hit 3-month high after partial reopening

ABUJA (Reuters) - Shares of MTN Nigeria hit a three-month high on Friday
after the telecoms company’s offices partially reopened following a shutdown
due to anti-South African attacks in the West African country.

 

The local units of South Africa’s MTN Group and supermarket chain Shoprite,
closed all stores and service centres in Nigeria after their premises were
attacked following days of riots in their home country chiefly targeting
foreign-owned, including Nigerian, businesses.

 

 

The violence in South Africa has strained relations between Africa’s two
biggest economies, with Nigeria saying on Thursday it would recall its top
diplomat to Pretoria.

 

MTN Nigeria said its stores remained closed on Friday but skeletal office
operations were resuming, its spokesman said, adding that staff were asked
to stay at home for safety reasons.

 

 

Shoprite stores remained shut except for one in an upmarket area of the
capital Abuja, a manager there said.

 

Shares in MTN, Nigeria’s second-biggest listed firm, rose 5.03% to 139.80
naira each, a level last seen in June. Johannesburg-listed Shoprite shares
were up 1.8%.

 

Prior to the shutdown, the telecoms firm last week launched a mobile money
transfer service, targeting Nigerians without bank accounts, and said it
planned to become a payment services bank once it obtains approval from the
central bank.

 

 

 

British Airways: Can strike-hit airline rebuild its reputation?

It's not been a great centenary celebration for British Airways. The
operator officially reached the 100-year landmark on 25 August, just as the
prospect of this week's two-day pilots' strike was starting to panic tens of
thousands of customers.

 

To rub salt into the wounds, a report by reputation management company Alva
placed BA 55th out of 65 airlines. Stranded passengers, IT failures, and
lost data from a hack attack were among reasons cited for the airline's low
ranking.

 

Over several years BA's profile has been defined by mishaps and operational
issues, said Alastair Pickering, chief strategy officer at Alva.

 

"What initially may have seemed like bad luck or bad planning, can quickly
morph into a narrative of underinvestment; the company putting shareholder
interests above those of passengers and employees," he said. The BA name has
too many negative connotations.

 

The days when the airline promoted itself as The World's Favourite Airline
have long gone, and Brian Strutton, general secretary of the pilots' union
Balpa, has a couple of reasons why: cost cutting and a dumbing down of the
brand.

 

As he told the BBC: "Management want to squeeze every last penny out of
customers and staff." This week's strike is about pay, but Mr Strutton says
there is a wider context - a lack of trust and confidence in management.

 

Media captionBA's CEO says they are willing to negotiate further as two-day
strike begins

Pilots, and other crew, have long complained about an erosion of benefits,
such as poorer accommodation on long-haul stopovers. In the lean years when
BA was recovering from the global financial downturn, staff say they gave up
pay rises. The airline's generous pension scheme has been closed, saving
hundreds of millions of pounds.

 

'Fight for survival'

While a captain's pay starts at about £78,000, according to Balpa, changes
to the earnings structure mean it would now take much longer for a cadet to
reach that level.

 

There was an expectation that once the airline recovered financially, staff
would benefit. But Mr Strutton says it hasn't happened, which is why people
whom he accepts are well paid are taking part in BA's biggest industrial
action to date.

 

BA is part of International Airlines Group (IAG), the parent company for
carriers that include Aer Lingus, Iberia, Level and Vuelling. But BA is the
biggest and most profitable part of the group.

 

Last year, BA's operating profits rose 11.6% to £1.95bn. Profits were also
up in the first six months of this year. In February, IAG raised its
shareholder dividend and also declared a special payout. Since January,
IAG's share price has risen from 465p to a year-high of 572p reached last
week.

 

In 2009, BA's then chief executive Willie Walsh (who now runs IAG) said the
airline was in a "fight for survival". Intense competition on transatlantic
routes and the popularity of budget carriers on European routes meant
radical action was needed. The recovery cost almost 4,000 redundancies and
everyone took a pay cut.

 

'Deplorable'

But now that those dark days are over, pilots want to share in the success
of BA's turnaround, Mr Strutton says. "British Airways needs to wake up and
realise its pilots are determined to be heard. They've previously taken big
pay cuts to help the company through hard times. Now BA is making billions
of pounds of profit, its pilots have made a fair, reasonable and affordable
claim for pay and benefits."

 

BA accused of 'dumbing down' as strike begins

BA strike: Why are pilots walking out?

Ryanair pilots vote for further strikes

BA insists that offering a share in the turnaround is exactly what it is
doing. Alex Cruz, BA's chief executive, told the BBC that everyone at the
airline, not just pilots, made sacrifices. "The company recognises that.
This is why this 11.5% deal, way above inflation... is a very, very generous
deal."

 

The impact on staff is only half the story, of course. Analysts say the
reputational damage could be huge. Some 200,000 customers have been affected
by the strikes, and with further action planned there will inevitably be
lost bookings as travellers go elsewhere. Mr Cruz accepted that the strike
would "punish customers" but also "punish our brand".

 

Duncan Lyon, whose flight was cancelled and who is now trying to get a
refund of £400, echoed the feelings of many customers who have complained of
having to make numerous telephone calls to BA and feel there has been a lack
of communication. His message to British Airways? "You are a disgrace and
your customer service is deplorable."

 

But, though serious, this strike is not the first time BA has weathered a
customer storm. In addition to previous industrial action, the gradual
dismantling of some of BA's premium services has been a running sore for
many long-time customers. Be it the removal of free meals on short-haul
flights, introduction of checked baggage charges, or the ending of
complimentary newspapers, BA's loyal base has found many things to mourn
about the airline.

 

Yet, passenger growth has continued year-on-year, and the airline and its
subsidiaries carried about 45 million people in 2018. That may have a lot to
do with BA's dominance of Heathrow Airport and a feeling among some
travellers that they lack convenient alternatives.

 

But BA says it underlines the expansion of its route network and investment
in services. Indeed, the airline has a £6.5bn spending programme underway -
a four-year investment on 73 new aircraft, training and services. The
investment is, Mr Cruz told the BBC, the biggest in BA's history.

 

For Alva's Mr Pickering, the investment could be key to "revamping the
passenger experience" and addressing the "growing customer cynicism",
adding: "The situation is by no means terminal."--BBC

 

 

 

Brexit: BMW could cut shifts at Mini plant in event of no-deal

Workers at the Mini plant in Oxford could see their shifts cut in the event
of a no-deal Brexit, BMW's finance chief has told the BBC.

 

Nicolas Peter said production was likely to fall at the Cowley factory,
affecting jobs.

 

But he said BMW, which also makes Minis in the Netherlands, had no plans to
"shift production" as yet.

 

Boris Johnson has said he plans to take the UK out of the EU on 31 October -
with or without a deal.

 

"No-deal would mean that, most likely, [World Trade Organisation] tariffs
would be imposed from 1 November onwards," said Mr Peter, who was attending
the Frankfurt motor show.

 

'Dramatic' fall in car output hits UK economy

"This would mean that we would most likely have to raise the prices of the
products produced in the UK and shipped to other markets [in the EU].

 

"The increase of price means an impact on the volume you sell, and would
eventually lead to a reduction of produced cars in Oxford."

 

As a result, he said, the factory would have to reduce its output, and would
use production cuts "as a first step" to cope.

 

'Constructive solution'

A range of car companies in the UK have warned that the loss of frictionless
trade after a no-deal Brexit could damage their business.

 

For example, the PSA Group has said it will only build the next generation
Vauxhall Astra at its Ellesmere Port plant if a satisfactory Brexit deal is
reached.

 

Investment in the industry has also fallen sharply amid fears the UK will no
longer be a competitive place to build cars if it crashes out of the bloc.

 

Mr Peter said there were no plans to close any UK factories on the table,
but the firm will shut its Cowley plant on 31 October and 1 November .

 

Shutdowns are common in the car industry, and BMW as well as Toyota plan to
pause production to minimise disruption after Brexit.

 

"But of course what's extremely important is to use the weeks we have before
31 October to develop and implement a constructive Brexit solution," Mr
Peter said.

 

Some politicians have argued that warnings about the potential damage of a
no-deal Brexit have been exaggerated.

 

Before becoming Leader of the House of Commons, pro-Brexit Conservative MP
Jacob Rees-Mogg said in July that quitting the EU without a deal could
result in an £80bn boost for the economy.

 

He also dismissed as "pure silliness" Treasury forecasts warning of a £90bn
hit to the UK - projections that former Chancellor Philip Hammond later
described as "terrifying".--BBC

 

 

 

Former PM's Brexit negotiator joins Goldman Sachs

Theresa May's chief Brexit negotiator Olly Robbins will join investment bank
Goldman Sachs after a sabbatical, the Cabinet Office has said.

 

The civil servant headed talks which led to the former prime minister's
withdrawal agreement which formed the basis for the UK's exit from the EU.

 

However, the deal repeatedly failed to get through Parliament, prompting Ms
May to resign earlier this year.

 

Mr Robbins, 44, announced he would quit his role shortly afterwards.

 

The civil servant attracted criticism from prominent Brexit supporters who
accused him of being too pro-EU.

 

But new Prime Minister Boris Johnson - who has himself has been fiercely
critical of the withdrawal agreement - paid his own tribute to Mr Robbins on
Monday.

 

'Dedication to public service'

Mr Robbins will first spend a sabbatical at the University of Oxford,
becoming the first holder of a visiting fellowship set up in memory of
former Cabinet Secretary Jeremy Heywood.

 

"I am delighted that Olly will be the first permanent secretary to take up
this fellowship in Jeremy Heywood's memory, which follows his many years of
dedication to public service in a variety of different roles," Mr Johnson
said.

 

Mr Robbins will leave the civil service at the end of the fellowship to
become a managing director in Goldman Sachs' Investment Banking Division.

 

He will join former European Commission President Jose Manuel Barroso, who
is the non-executive chairman of Goldman Sachs International.

 

He is not the only figure from British politics to have gone into finance.
Former Chancellor George Osborne earns £650,000 a year in a role with US
investment fund Blackrock, while former Labour Chancellor Alistair Darling
is a non-executive director at investment bank Morgan Stanley.--BBC

 

 

 

Google: 50 US states and territories launch competition probe

A group of 50 states and territories in the US have launched an
investigation into Google's dominance of the online advertising market.

 

The coalition warned that the search giant may be threatening competition
and consumers.

 

They also raised concerns over the way Google ranks its search results and
protects users' personal data.

 

The action adds to a mounting number of probes of big technology firms by US
authorities.

 

On Friday, a separate group of states announced they had launched an
investigation of Facebook to determine whether it had stifled competition
and adequately protected consumer data.

 

The recent actions involve both Republicans and Democrats, a sign of growing
political consensus about the need to curb the tech giants.

 

Will the US break up the tech giants?

Texas Attorney General Ken Paxton, whose office took the lead making the
announcement, said Google dominated "all aspects of advertising on the
internet and searching on the Internet".

 

"There is nothing wrong with a business becoming the biggest game in town if
it does so through free market competition," he said.

 

"But we have seen evidence that Google's business practices may have
undermined consumer choice, stifled innovation, violated users' privacy and
put Google in control of the flow and dissemination of online information."

 

Google accounts for about 38% of digital advertising spending in the US - at
around $48bn - followed by Facebook at about 22%, according to eMarketer.

 

However, its share of the market has declined in recent years, as companies
such as Amazon attract more spending.

 

Google referred questions about the latest probe to a statement it published
last week, which emphasised the firm's track record of innovation.

 

Criticism of its business is "not new", it added.

 

"We have always worked constructively with regulators and we will continue
to do so," it said.

 

'A big deal'

Historically, the US has lagged Europe and other countries when it comes to
regulating the tech companies.

 

However, in July the US Justice Department said it would review whether
practices by "leading online platforms" had stifled competition.

 

Congress is separately holding hearings about the growth of monopoly power
in the digital market.

 

The Federal Trade Commission has also announced recent fines against
Google's parent, Alphabet, and Facebook.

 

The latest investigation includes nearly all 50 US states, except for
California and Alabama.

 

Critics of the tech giants, who have long bemoaned a lack of action in
Washington, said they hoped the state-level effort would put pressure on the
federal government to crack down.

 

"Historically the feds have led the process and they're the ones that are
taken seriously," said Matthew Stoller, a fellow at the Open Markets
Institute, an anti-monopoly think tank.

 

"The states coming out and saying we're going to do this on our own - that's
a really big deal," he said.--BBC

 

 

 

UK growth rebound eases recession fears

The UK's economy grew faster than expected in July, easing fears that it
could fall into recession.

 

The economy grew 0.3% in July, the UK's official statistics body said,
helped by the dominant services sector.

 

Growth was flat over the three months to July, but this was an improvement
on the 0.2% contraction seen in the April-to-June quarter.

 

This contraction, coupled with some weak business surveys, raised concerns
the UK was heading for recession.

 

What is GDP and why does it matter?

An economy is generally deemed to be in recession if it contracts for two
quarters in a row.

 

However, while growth in the services sector - which accounts for about 80%
of the UK economy - helped to drive July's stronger-than-expected growth
figure, the Office for National Statistics (ONS) warned that the sector
remained weak.

 

"While the largest part of the economy, the services sector, returned to
growth in the month of July, the underlying picture shows services growth
weakening through 2019," the ONS said.

 

The pound rose in reaction to the figures, rising 0.6% against the dollar to
$1.2357.

 

Pound v US dollar

 

The return to growth in the economy in the month of July will be a political
relief for a troubled government keen to avoid recession headlines in early
November. It makes unlikely the notion of another consecutive quarter of
contraction between July and September, the definition of a recession.

 

But that does not make the economic reality rosy. In the three months to
July, the economy did not grow. Even with a Q3 registering 0.3% growth, it
would be the weakest first three quarters of a year since the financial
crisis.

 

Over nine months, much of the volatility around no-deal - stockpiling
effects and car industry shutdowns - should have been stripped out too.

 

There is some evidence in the figures that firms are beginning to restart
stockpiling in anticipation of the rising possibility of no-deal Brexit next
month.

 

It is difficult to predict how the current political impasse affects those
patterns. But a prolonged squeeze on business investment was always going to
hit productivity and growth.

 

The global context is far from benign too, with the German economy looking
likely to be in recession and the eurozone as a whole growing sluggishly.

 

Other survey indicators for the UK look more difficult too. But if July's
pattern continued last month and into this, the government should, when full
Q3 figures are released in November, be able to avoid the R-word, for now.

 

'Under pressure'

The British Chambers of Commerce (BCC) also said that concerns remained.

 

"Although there was a rise in GDP between June and July, the zero growth
recorded on the underlying three-month measure points to an economy under
pressure from uncertainty over Brexit and weakening global economic
conditions," said Suren Thiru, head of economics at the BCC.

 

"The manufacturing sector remains an area of concern, with tightening
cash-flow, concerns over disrupted supply chains and weakening demand in key
markets weighing on activity in the sector."

 

Last week, a series of downbeat surveys of various sectors of the economy
had raised fears that the UK was at risk of slipping into recession.

 

However, analysts said the latest GDP figures appeared to have dampened
these concerns.

 

"The pick-up in GDP in July is a reassuring sign that the economy is on
course to grow at a solid - perhaps even above-trend - rate in Q3," said
Samuel Tombs, chief UK economist at Pantheon Macroeconomics, adding that
figures "substantially" weakened the case for any cuts in UK interest rates
"before Britain's Brexit path is known".

 

"The upside surprise came from the services sector, which displayed
broad-based strength and did not seemingly benefit from any one-off
stimuli," Mr Tombs said.

 

Analysts also noted that August's growth figure should be boosted by car
manufacturers, which were operating last month, contrary to normal practice.
Many carmakers had brought their annual shutdown forward for the original
Brexit date in March.

 

"GDP will get a further boost of about 0.2% in August, when car
manufacturers will be at work when they are usually on holiday," said Paul
Dales, chief UK economist at Capital Economics.

 

"Overall, the economy is still fairly weak - we estimate that the underlying
pace of growth is around +0.2% quarter-on-quarter - but it's not in
recession. Political chaos, yes. Economic chaos, no."--BBC

 

 

 

What does Disney's Pinewood deal mean for Marvel, Bond and British film?

Disney is to make more blockbusters at Pinewood Studios in Buckinghamshire
after signing a deal to take over most of the complex for at least a decade.

 

The film and TV giant behind the Star Wars, Marvel and Avatar movies will
lease 20 stages plus other facilities.

 

Pinewood is famously the home of James Bond, not a Disney franchise -
throwing 007's future at the site into question.

 

The deal comes two months after Netflix announced it had taken a long-term
lease at Pinewood's Shepperton Studios.

 

 

The house that Mickey Mouse built is the biggest force in the film world,
taking almost four times as much at the global box office as its nearest
rivals in the first half of 2019.

 

Recently, it has shot films like Star Wars: The Rise of Skywalker,
Maleficent: Mistress of Evil and Mary Poppins Returns at Pinewood. From next
year, it will have near-exclusive use of the UK's most famous studio
complex. In fact, it will have the whole site except three TV studios and an
underwater stage.

 

Disney hasn't commented on the deal. But with studio space at a premium,
this gives them the security of a long-term dedicated UK base capable of
handling their biggest films.

 

"They've been making great films with us for many years and the fact they
want to shoot so many more here is testimony not only to the quality of the
teams and infrastructure at Pinewood, but also to the British film industry
as a whole," said Pinewood Group chairman Paul Golding.

 

The deal also squeezes Disney's competitors out - non-Disney films to have
been shot there in recent years include Rocketman, Jurassic World: Fallen
Kingdom, Mary Queen of Scots and On Chesil Beach. But existing studio
bookings with other film companies will be honoured.

 

 

Pinewood is 007's spiritual home, with most of the franchise's films made
there. The complex even has the 007 Stage, which was built in 1976 for The
Spy Who Loved Me.

 

The latest Bond film, No Time To Die, has been filmed there recently, and in
June an explosion damaged part of the 007 Stage and injured a crew member.

 

Despite the Disney deal, it is believed that there is a possibility that,
given its history, future James Bond films will still be filmed there.

 

Which films will be made there?

Disney won't confirm, but it will continue to be the home of Star Wars
movies, three of which are scheduled for the next seven years.

 

The company is planning four Avatar sequels, a fifth Indiana Jones film and
numerous other live action flicks. Many of those can be expected to come to
Pinewood.

 

And that's before counting the possibility of TV shows, which Disney will
need to fill its new streaming service, which launches later this year.

 

 

Again, Disney won't confirm anything, but this is where it could get
interesting, and could be the real reason the company has taken the new
lease.

 

Twelve of the 22 Marvel films to date have shot at studios owned by the
Pinewood Group - mostly Shepperton (Doctor Strange, Guardians of the Galaxy)
and Pinewood Atlanta in Georgia (Avengers: Endgame, Ant-Man and the Wasp).

 

But Shepperton is now out of the picture thanks to the Netflix deal, and in
May, Disney boss Bob Iger said it would be "very difficult" to continue
filming in Georgia if a new abortion law was enacted.

 

Pinewood Group sold its share in Pinewood Atlanta in August. Black Widow
shot at Pinewood this summer. No fewer than eight other Marvel films are on
Disney's slate. Could Buckinghamshire be their home?

 

What does this mean for the British film industry?

The money being spent by Disney on the facilities and workforce will
certainly be welcome. Foreign film companies spent £1.6bn shooting in the UK
in 2018 - double the figure five years previously.

 

It has all led to a rush for studio space, and new facilities are planned
for Dagenham in east London, Liverpool, Edinburgh and Leeds, while there are
plans to expand Shepperton with 16 new stages that won't be part of the
Netflix hub.

 

A report published in October by property company Lambert Smith Hampton said
land the size of 100 football pitches was needed to meet demand.

 

LSH head of media Christopher Berry told BBC News: "The situation is
actually worse now than it was when the report was written. And obviously,
the Shepperton deal has taken more supply off the market. What's happening
is people are going into converted warehouses as as a cheap way of
converting and creating space."

 

There will be concerns that productions with less clout will find it harder
to find a studio. Two hundred independent British films were shot in 2018 -
a 42% drop over five years.--BBC

 

 

 

Hong Kong tourism falls 40% as protests continue

The number of tourists visiting Hong Kong tumbled in August as
anti-government protests gripped the city, in a sign of the mounting
economic cost of the unrest.

 

In a blog post, Hong Kong Financial Secretary Paul Chan said visitor numbers
fell almost 40% from last year.

 

That marked a sharp deepening of the 5% year-on-year decline in July, he
said.

 

Last year, Hong Kong was one of the world's most visited cities, with 30
million tourists.

 

The city has faced months of protests that still show no signs of ending.

 

The demonstrations began over a proposed extradition bill between the
territory and mainland China, and have evolved into demands for greater
freedoms.

 

Hong Kong is part of China, but its citizens have more autonomy than those
on the mainland.

 

The background you need on the Hong Kong protests

Hong Kong leader to withdraw extradition bill

How business is navigating Hong Kong's new reality

Clashes between police and activists have become increasingly violent, with
police using tear gas and protesters storming parliament.

 

The unrest has dealt a blow to the territory's economy, specifically its
tourism and retail sectors.

 

In August, protesters paralysed the airport for several days. Hundreds of
flights had to be cancelled.

 

 

Mr Chan said in some areas, hotel occupancy rates in August fell by more
than half, and house prices sank by as much as 70%.

 

"The retail and even the catering industry are similar. The most worrying
thing is that the road ahead does not seem to be easy to get better," he
said in a translation of the blog posted on Sunday.

 

The finance chief said the demonstrations have "severely damaged Hong Kong's
international image" as a safe city for trade, aviation and finance.

 

Some economists forecast the hit from the protests, coupled with the impact
of US-China trade war, will push Hong Kong's economy into a technical
recession later this year.

 

The shifting political landscape has also complicated the environment for
many businesses in Hong Kong.

 

Cathay Pacific became embroiled in controversy over its response to
demonstrations, with two executives including former boss Rupert Hogg
quitting over the affair.--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
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
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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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