Major International Business Headlines Brief::: 24 February 2020

Mon Feb 24 01:32:27 CAT 2020

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Major International Business Headlines Brief::: 24 February 2020

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

ü  Sawiris in talks to buy 51% stake in Egypt state-owned mining firm

ü  South Africa to hike personal income and excise taxes in budget

ü  AngloGold earnings lifted by bullion price strength

ü  Absa Bank says virtual banking app used by almost 5 mln customers

ü  Insurance group Sanlam Kenya swings to full-year profit

ü  S.Africa's rand flat as virus-linked selloff gives way to budget caution

ü  Womenswear mistakes, poor Black Friday dent S.Africa's Woolworths' half-year profit

ü  Anglo American's 2019 profit up 9% on higher iron ore, precious metals prices

ü  Investors in S.Africa's Discovery soothed on spending, shares rise 7%

ü  Malawi maize output to climb 8.8% as rains return

ü  Brexit: Emmanuel Macron 'not sure' of UK-EU trade deal by end of year

ü  Wells Fargo reaches $3bn fake accounts settlement

ü  US business levels fall sharply amid coronavirus

ü  EU budget: Talks end amid stand-off between 'frugal' and other nations

 <mailto:info at bulls.co.zw> 

Sawiris in talks to buy 51% stake in Egypt state-owned mining firm

CAIRO (Reuters) - Egyptian billionaire Naguib Sawiris said on Sunday that he was holding talks to acquire a 51% stake in the state-owned Shalateen mining company.

Sawiris chairs private gold mining group La Mancha and had said that he intended to invest in gold and copper mining in Egypt if investment conditions improved.

Egypt in January issued new regulations that appeared to eliminate the need for mining companies to form joint ventures with the government and to limit state royalties to a maximum 20%.

 <mailto:info at bulls.co.zw> 

South Africa to hike personal income and excise taxes in budget

JOHANNESBURG (Reuters) - South Africa’s National Treasury will try to trim its swollen budget deficit by raising revenue through personal income and excise tax hikes at its budget review on Feb. 26, a Reuters poll found on Friday.

The poll, taken over the past four days, showed all but one of 17 economists expected budget revenue to fall short of the Treasury’s revised October forecast. The median estimate was for an 18.5 billion rand ($1.2 billion) shortfall this financial year.

South Africa’s consolidated budget deficit probably widened to 6.2% of gross domestic product in the financial year ending on March 31, more than an October government estimate of 5.9% of GDP.

“The outcome reflects the impact of significant revenue shortfalls, due to much weaker-than-expected economic growth, and sharply higher expenditure, caused by the additional bailout of Eskom, South African Airways and other loss-making state-owned agencies,” Nedbank economists wrote in a note.

A separate Reuters poll last week put growth at 0.8% this year and 1.3% next, suggesting very minimal economic activity for South Africans eager to join the world of work and for the government to broaden the tax base. [ECILT/ZA]

However, the latest poll also suggested the government would find a way to trim its budget deficit. While it will increase to 6.3% next fiscal year it will fall to 6% the year after and then to 5.7%. The October Treasury estimates were 6.5%, 6.2% and 5.9%, respectively.

Eleven economists said the Treasury would raise personal income tax and nine said excise duties would go up, easily the most popular replies in a multiple choice survey.

Six said value added tax (VAT) would rise, six said the government would sell some non-core assets to raise money. But none said corporate income tax would be increased as it would hamper already low business confidence.

Other suggestions included wealth, capital gains or dividend taxes or not adjusting tax brackets for inflation. Respondents were allowed to pick more than one option.

Mike van der Westhuizen, a portfolio manager at Citadel, said the government tried to reduce its huge wage bill through a voluntary redundancy and natural attrition approach but that had not been effective.

“Maybe the lower inflation outlook from the Reserve Bank and pinning of inflation expectations might help in negotiating lower wage hikes, but that is unlikely to be enough,” added van der Westhuizen.

A Reuters poll last week showed South African inflation would average 4.4% this year - 0.4 percentage points lower than forecast in a January survey - beneficial to consumers, especially if interest rates are cut further this year as expected.

AngloGold earnings lifted by bullion price strength

JOHANNESBURG (Reuters) - AngloGold Ashanti posted an expected 72% leap in annual earnings on Friday, boosted by higher bullion prices and its Kibali joint venture in Democratic Republic of Congo, as it forges ahead with a disposal plan to focus on higher returns.

The gold miner, which last week said it was selling its last remaining South African assets to Harmony Gold for $300 million, reported 2019 headline earnings per share of 91 cents, up from 53 cents the previous year.

Chief Executive Kelvin Dushnisky said the company is working hard to deliver on its strategy and capture higher margins in the current strong environment for gold prices.

AngloGold was formed in 1998 through consolidation of the gold and uranium mining interests of Anglo American Corporation of South Africa. However, ultra-deep gold mines have fallen out of favour because of soaring labour, power and operational costs, as well as safety concerns, at sites that operate at depths of up to 4 km.

The company has also put up for sale assets in Mali and its Cerro Vanguardia mine (CVSA) in Argentina, though the latter could yet be retained.

“We are in no rush to divest from CVSA unless we receive a very good offer,” Dushnisky said, adding that it had no plans to sell any more assets.

AngloGold’s free cash flow before growth capital, on which its dividend is based, surged 106% to $448 million, compared with $217 million in the previous year.

The miner approved a dividend of 165 cents per share, up from 95 cents in 2018.

“We’re generating strong cash flow from our operations, and that’s allowing us to increase returns to shareholders, strengthen our balance sheet and invest in our ore bodies,” Dushnisky said in a statement.

Shares in AngloGold were up 2% at 323.95 rand by 0952 GMT.

Gold production for the full year slipped to 3.281 million ounces, from 3.4 million ounces in 2018, hit by operational challenges at its Siguiri, Sunrise Dam and Cerro Vanguardia mines.

The company’s Geita mine in Tanzania achieved output of 604,000 ounces, its highest in 13 years.

Absa Bank says virtual banking app used by almost 5 mln customers

NAIROBI (Reuters) - Kenya’s Absa Bank has signed almost 5 million customers on its virtual banking platform, which it sees as a major driver for future growth, chief executive Jeremy Awori said on Wednesday.

When the bank first launched its virtual savings and loan app known as “Timiza” — Kiswahili for “Achieve” — in March 2018, it attracted 300,000 customers. By the end of the year it had 3 million users, with lending standing at 10 billion Kenyan shillings ($98.91 million).[nL8N20Y0MZ]

“We have seen our app grow in leaps and bounds. We are now roughly under 5 million [Timiza] customers, and we really are looking forward to growing that number in the future,” Awori told a news conference.

The bank, formerly known as Barclays Kenya, also has a separate mobile-based banking service to process normal customer transactions like deposits and withdrawals.

Absa Kenya, which is part of South Africa’s Absa Group, posted a pretax profit of 8.18 billion shillings in the first nine months of 2019, compared with 7.72 billion shillings in year-earlier period.

Kenyan lenders have in recent years turned to technology as they try to counter competition from mobile phone-based financial services such as from telecoms operator Safaricom’s M-Pesa platform, which had 23.6 million users as of last September.

Absa’s virtual banking app’s competitors include those run by KCB Group’s, NCBA Group and Equity Group.

Pressure to use mobile banking services increased further when the government imposed a cap on commercial lending rates in 2016 that ate into bank profit margins forcing banks to search for new ways to grow their businesses. The cap was scrapped at the end of last year.

Absa Group operates in 12 countries in Africa where it plans further expansion, including to Nigeria where it has a representative office.

“Clearly any ambition to be a pan-African bank cannot be realised without a clear strategy for Nigeria,” said Absa Group chief executive officer Daniel Mminele, who added it was too early to say when or what form the entry would take.

($1 = 101.1000 Kenyan shillings)

Insurance group Sanlam Kenya swings to full-year profit

NAIROBI (Reuters) - Sanlam Kenya on Friday reported a full-year pretax profit of 550 million shillings ($5.44 million), swinging from a loss of 2.1 billion shillings in the prior period, the insurance company said.

Sanlam Kenya, part of South African insurer Sanlam Group, attributed the return to profit to a 50% growth in revenue from gross premiums and investments. Its life insurance business also returned to profit during the year.

Patrick Tumbo, Sanlam Kenya’s CEO, said the company expected further improvement this year, citing a drive to cut costs and boost revenue including through alliances with unspecified partners.

Its life insurance business made a profit of 964 million shillings, versus a loss of 853 million shillings in 2018.

Sanlam’s life business is ranked seventh largest in Kenya, out of a total of 25 insurers, while its general insurance business is ranked number 18 out of 37 companies, data from the insurance regulator showed.

Kenya, like many other African countries, has a very low insurance penetration rate, estimated at below 10% of the population. The figures have attracted international firms like Prudential Plc and Swiss Re, which have entered the market in recent years.

($1 = 101.1000 Kenyan shillings)

S.Africa's rand flat as virus-linked selloff gives way to budget caution

JOHANNESBURG (Reuters) - South Africa’s rand was flat in early trade on Friday, pausing a tumble to a four-month low in the previous session as risk-shy investors fretting over the impact of the coronavirus on global growth avoided big bets with key local events on the horizon.

At 0645 GMT the rand 0.09% weaker at 15.1390 per dollar, stepping back from a dip to 15.1700, its worst since late October, in the previous session.

Emerging market currencies fell in tandem on Thursday as fears over the creeping spread of the coronavirus epidemic drove investors out of risk assets to safe-havens such as the U.S. dollar, gold and bonds.

China reported an uptick in infections from a virus that has already killed more than 2,200 people there and spread to Japan and South Korea.

With the local data calendar light until next Wednesday’s budget speech by Finance Minister Tito Mboweni, swings in sentiment toward the rand are set to be influenced by offshore events.

“As the week draws to a close, investors are likely to favour the sidelines in the run-up to next week’s budget, and global factors are likely to provide directional inspiration for the USD-ZAR,” traders at ETM Analysts said in a note.

In equities, AngloGold Ashanti reported a 72% jump in annual earnings, underpinned by higher bullion prices and solid performance from its Kibali operations in Democratic Republic of Congo.

Bonds were also flat, with the yield on the benchmark 2026 government issue steady at 7.935%.

Womenswear mistakes, poor Black Friday dent S.Africa's Woolworths' half-year profit

JOHANNESBURG (Reuters) - Weak womenswear sales and a poor Black Friday showing tarnished the first-half financial year results posted on Thursday by South African retailer Woolworths Holdings, which acknowledged making “mistakes” on style and pricing.

“This was another tough period of trade,” Outgoing Chief Executive Officer Ian Moir told analysts at the group’s results presentation in Cape Town.

Moir said while sales and comparable store sales in the retailer’s South African fashion, beauty and home division rose by 2.2% and 0.9%, respectively, in the 26-weeks ending Dec.29, it had a poor second quarter due to a lack of variety and volume of goods for Black Friday on Nov. 29, with prices kept too high.

“We suffered the consequences and saw it leading up to December as well because the only thing people are interested in December is newness (new items) and we didn’t have enough newness in December,” he said.

Womenswear sales suffered due to fashion “mistakes” in its Studio W and Classic brands, with some prints proving unappealing with shoppers, other items overly austere and a failure to balance formal and urban wear.

Moir said the retailer’s efforts to turn around the fashion business, particularly in womenswear, would continue “with a focus on design to deliver better ranges and taste levels” as well as on price.

The retailer has hired a new managing director, Manie Maritz, who will start in June.

The company, which sells food, clothing and homeware, said headline earnings per share (HEPS), the main profit measure in South Africa, declined 17.7% to 164.9 cents from 200.4 cents a year earlier.

The decline in profit was compounded by an accounting change, Woolworths said. Excluding the impact of the accounting change, HEPS fell 10.1%.

Group turnover and concession sales rose 3.8% to 40.9 billion rand ($2.72 billion), while adjusted profit before tax dropped 12.3% to 2.4 billion rand.

CORONAVIRUS SEEN DELAYING SUPPLIES

Moir said the coronavirus outbreak that has killed more than 2,000 people in China, has hit sales at the start of the second half because Woolworths’ Australian retailer David Jones had missed out on high-spending Chinese customers due to a travel ban. The beauty and fashion divisions have been most affected.

“It’s a little bit difficult to get a grip right now on how much it will affect supply. We think at least a month’s delay in products, could be more,” Moir said.

He said the retailer is looking to mitigate the risks by flying in some products that are normally shipped in order to get them on the shelf as quickly as possible.

Roughly half of the products in Woolworths South Africa, its biggest market, come from China. In Australia, about 70% of Country Road Group stock is Chinese-made and about 60% at David Jones, Moir told Reuters in a telephone interview.

($1 = 15.0420 rand)

Anglo American's 2019 profit up 9% on higher iron ore, precious metals prices

JOHANNESBURG (Reuters) - Global miner Anglo American said on Thursday its full-year profits climbed 9% as higher prices for iron ore and precious metals outweighed weakness in diamonds and coal.

Anglo’s underlying earnings before interest, tax, depreciation and amortisation rose to $10 billion in the year to December from $9.16 billion a year earlier.

The figure was in line with analysts’ average estimate of $9.97 billion, according to Refinitiv IBES data.

“We have also benefited from product and market diversification, with strong precious metals and iron ore prices offsetting weakness in diamonds and coal,” said chief executive Mark Cutifani.

Anglo declared a final dividend of $0.47 a share, bringing total dividends for 2019 to $1.09 per share versus $1 paid out in 2018.

This was in line with Anglo’s pledge to pay out 40% of underlying earnings.

Anglo’s Los Bronces copper mine has been hurt by water shortages in Chile due to drought, while diamond output was lower as its open-cast Venetia mine in South Africa transitioned to underground and a mine in Canada reached the end of its life.

Investors in S.Africa's Discovery soothed on spending, shares rise 7%

JOHANNESBURG (Reuters) - Shares in South Africa’s Discovery rose almost 7% on Thursday, as investors who had been spooked by a profit warning this week welcomed more detail on hefty investments that have been repeatedly hurting the insurer’s bottom line.

The company, which has shaken up traditional approaches to insurance with a model that ties premium rates to clients’ lifestyle choices, has been sacrificing profits in order to plough funds into new ventures including a bank.

Its stock lost 8% on Monday when it warned profits would again drop by up to 13% as a result. It said on Thursday its diluted headline earnings per share - the main profit measure in South Africa - fell by 10% to 311.7 cents ($0.2068).

But Warwick Bam, analyst at Avior Capital Markets, said the full results statement provided more detail on its spending, amounting to over 1 billion rand during the period, that investors could welcome.

He said he was comforted to see that more than 50% of Discovery’s investment spend went on the bank. Some had been concerned this was higher, with other new business lines expected to stop sucking up funds sooner.

Discovery said on Thursday that investments in new ventures were weighted to the first six months of the year, and likely to decline in the second half.

It has said previously spending on the bank, which adapts its model of insurance to lending by tying interest rates to customers’ behaviour, will fall quickly over the coming years.

Since its launch last year, Discovery said the bank had grown to serve 78,000 clients with deposits of 1.2 billion rand and 2.5 billion rand of credit granted.

Its shares rose just under 7% after market open on Friday, and were 5.9% higher at 0741 GMT.

($1 = 15.0700 rand)

Malawi maize output to climb 8.8% as rains return

BLANTYRE (Reuters) - Malawi’s maize production will increase by 8.8% in the 2020 crop season as much-needed rainfall helps to raise yields, its agriculture ministry said on Thursday.

The small southern African nation, among the poorest in the world, is heavily dependent on agriculture. The sector employs nearly 80% of the population and accounts for two thirds of export earnings, with maize forming the main food staple.

But harvests recently have been hit by a combination of extreme heat and heavy flooding, with El Nino-induced drought in recent years combining with electricity shortages and political uncertainty to rip a hole in the economy.

The country is targeting GDP growth of up to 6% this year after slack expansion of about 3% in 2018.[nJ8N27000A]

The increase in maize production is thanks to increased yields because of favourable weather conditions, Gray Nyandule-Phiri said in a statement.

The minister said that cumulative rainfall performance between November and January, the peak growing season, was much better than the same period last year.

“Most parts of Malawi received well-distributed normal seasonal rainfall,” he said, adding that Malawi was experiencing “El Nino Southern Oscillation Neutral conditions”, which would bring improved rainfall until March.

Brexit: Emmanuel Macron 'not sure' of UK-EU trade deal by end of year

French President Emmanuel Macron has said he is "not sure" a UK-EU trade deal will be struck by 31 December, the end of the Brexit transition period.

Mr Macron said negotiations starting in March will be "tense", with fishing rights a key point of contention.

It comes as the UK government signalled it would publish its mandate for the trade deal later this week.

In the document, ministers are expected to reiterate their desire for a Canada-style deal with few tariffs on goods.

While a trade deal is hammered out with the EU, the UK is following the majority of the bloc's rules.

The UK is in this transition period until 31 December following its departure from the EU on 31 January.

"I am not sure that an agreement will be reached between now and the end of the year," Mr Macron said at a meeting with fishermen in Paris on Saturday.

"Anyway, it is going to become more tense because [the British] are very hard."

Mr Macron also said fishing rights could be a sticking point in negotiations.

The UK has said it will consider a deal on fisheries but it must be based on the notion that "British fishing grounds are first and foremost for British boats".

The EU has different ideas about an agreement on fisheries.

Mr Macron's comments come as the UK government signalled it would publish detailed demands for a trade deal.

The mandate is due to be signed off on Tuesday and will be published online and in Parliament on Thursday, the BBC's Jonathan Blake said.

Prime Minister Boris Johnson's chief Brexit negotiator, David Frost, called for a "Canada-Free Trade Agreement-type relationship" with the EU in a speech in Brussels earlier this month - and the mandate will repeat these demands.

But EU chief negotiator Michel Barnier has said such a deal cannot happen.

Mr Barnier said the EU was ready to offer an "ambitious partnership" with the UK post-Brexit, but its "particular proximity" meant it would be different.

Under Canada's agreement with the EU, which took seven years to negotiate, import tariffs on most goods have been eliminated between the two countries, though there are still customs and VAT checks.

Is fishing the next big argument in Brexit talks?

How do you negotiate a trade agreement?

The EU has repeatedly warned that the UK cannot expect to enjoy continued "high-quality" market access if it insists on diverging from EU social and environmental standards.

UK-EU trade negotiations, led by Mr Barnier and Mr Frost, are due to begin in Brussels on 2 March.--BBC

Wells Fargo reaches $3bn fake accounts settlement

Wells Fargo, a major US bank, has agreed to pay $3bn (£2.3bn) to resolve a government investigation into its sales practices, including opening millions of fake customer accounts.

The bank admitted it had wrongly collected millions of dollars in fees, misused customer information and harmed the credit rating of customers.

The settlement comes about four years after the scandal first erupted.

It has already forced out two chief executives and led to hefty fines.

Since 2018, Wells Fargo has been operating under an order from the US Federal Reserve that limits its growth.

Last month, former chief executive John Stumpf agreed to pay $17.5m to settle charges, in a rare example of a bank executive being personally punished for failing to stop misconduct.

John Stumpf: Ex-Wells Fargo boss pays $17.5m to settle charges

Wells Fargo hit by record $1bn penalty

Charlie Scharf, who became chief executive in October, said the settlement was a "significant step in bringing this chapter to a close".

"There's still more work we must do to rebuild the trust we lost," he added.

"The conduct at the core of today's settlements - and the past culture that gave rise to it - are reprehensible and wholly inconsistent with the values on which Wells Fargo was built," he said.

The settlement concerns activities between 2002 and 2016, when the bank's intense focus on growth put pressure on staff to meet "onerous sales goals".

The environment ultimately led workers to create fake accounts, sell services that customers did not need, and shift money between accounts, among other illicit activities, prosecutors said.

Top managers of Wells Fargo's consumer division were aware of the "gaming practices" as early as 2002, they said. In 2004, an internal investigator called it a "growing plague", according to the settlement.

"This case illustrates a complete failure of leadership at multiple levels within the bank. Simply put, Wells Fargo traded its hard-earned reputation for short-term profits, and harmed untold numbers of customers along the way," US Attorney Nick Hanna said.

"We are hopeful that this $3bn penalty, along with the personnel and structural changes at the bank, will ensure that such conduct will not reoccur."

Of the $3bn, about $500m is set to be returned to investors who were misled by bank disclosures.

The US Department of Justice said the bank would be monitored for three years for compliance, under a deferred prosecution agreement.

If the bank abides by the conditions of the settlement, including ongoing cooperation in investigations, the charges will be dismissed.--BBC

US business levels fall sharply amid coronavirus

Business activity in the US service sector fell last month for the first time since 2013, hurt by the coronavirus, according to a survey.

The drop came amid a "notable worsening" in the services sector, which includes finance and retail, the IHS Markit research firm reported.

New orders received by private sector firms also declined for the first time since 2009, it said.

US financial markets fell sharply following the report.

The latest IHS Markit/CIPS purchasing managers' index data found that services business activity fell to 49.4, from 53.4 in January, while manufacturing output slowed to 50.8, compared to 51.9 in January, a six-month low.

The combined score was 49.6, down from 53.3 in the opening month of 2020. Anything below 50 indicates contraction.

The report added to fears spurred by recent trends in the bond markets, which suggest investors see the risks of holding short and long-term government debt as increasingly similar. That comparison is often tracked as an indicator of possible recession.

The blue chip Dow Jones Industrial Average fell about 0.7%, while the S&P 500 dropped about 0.9% and the tech-heavy Nasdaq was more than 1% lower.

Investors also turned to US government debt, considered a less risky investment, driving the prices up and yields on bonds down.

The IHS survey found that manufacturing output was hurt by delivery delays from China, while services industries such as travel also took a hit.

The complicated truth behind Trump’s ‘American comeback'

Why US firms are desperate to retain ageing workers

Executives also reported spending more cautiously, amid questions about the upcoming presidential election and worries about the possibility of a wider economic slowdown.

The survey found a modest rise in business confidence, suggesting that executives are hopeful the slowdown will prove short-lived. But the rate of contraction last month was still severe, said Chris Williamson, chief business economist at IHS.

"With the exception of the government shutdown of 2013, US business activity contracted for the first time since the global financial crisis in February," he said.

In recent weeks, companies around the world, including Apple, sportswear firms, airlines and carmakers, have reported slowdowns.

But analysts have said that the US - where consumer spending drives much of the economy - should be relatively insulated from the effects, assuming the coronavirus outbreak wanes relatively soon.

US jobs growth beat expectations last month, while the overall economy is growing at about 2.1%, according to the most recent government figures.

However, traders are also now anticipating the Federal Reserve will move to cut interest rates further this year, although the head of the central bank said at its most recent meeting that it did not think the economy needed additional help.

The IHS Purchasing Managers Index (PMI) report will raise fears about the country's underlying economic health, said Michael Pearce, senior US economist at Capital Economics, adding that the contraction in the service sector - which includes industries like healthcare - was especially alarming.

However, he added: "We have a hard time believing the apparent message...that the economy is on the brink of a recession.

"Unless job creation and consumer confidence suddenly craters, it's difficult to see how the new downside risks that have emerged in recent months would be enough to sink the entire economy."--BBC

EU budget: Talks end amid stand-off between 'frugal' and other nations

An EU budget summit ended without agreement on Friday following a stand-off between wealthy "frugal" member states and other countries.

The so-called "frugal four" of Denmark, Austria, Sweden and the Netherlands said they would not accept a budget of more than 1% of the bloc's GDP.

France's Emmanuel Macron said it showed "we don't need Britain to show disunity".

Brexit has left a €75bn ($81bn; £63bn) gap in the seven-year budget.

The UK was a net contributor to the EU.

The EU's current budget framework runs to the end of this year, so the new one will cover the period from 2021 to 2027.

German Chancellor Angela Merkel admitted that the talks had been broken off because "differences are too big", but warned: "We are going to have to return to the subject."

Mr Macron meanwhile criticised countries for "forming blocking coalitions".

Both the frugal four and net beneficiary countries - 17 member states including Spain, Portugal, Greece, Poland and Hungary dubbed the "friends of cohesion" - rejected summit chairman Charles Michel's compromise proposal, which would have capped joint spending at 1.069% of joint GDP.

That was slightly less than his original proposal of 1.074%, equivalent to €1.09 trillion.

But net beneficiary countries wanted more than 1.074% while the frugal four wanted a maximum of 1%.

The BBC's World Service economics correspondent Andrew Walker says the size of the EU budget matters a lot to EU leaders, financially and also politically.

They want to be able to claim to the audience at home that they have achieved their aims and looked after their national financial interests, our correspondent says.

There is also disagreement about how the budget would be spent.

The frugal countries want more spending on borders following the 2015-6 migrant crisis, climate change, security and digitisation.

Beneficiary eastern and southern countries want spending on "cohesion funds" - money for poorer regions - and subsidies for farmers, which is also supported by France, Ireland and others.

Mr Michel's compromise deal preserved rebates for net contributors such as Germany, included slightly more cash for agriculture to appease France and increased the share of spending on climate change to 27% - but was still rejected.

However, Austrian Chancellor Sebastian Kurz said there had been "good discussion" and "movement in the right direction", adding that two or three summits were usually needed to agree a budget.

Mr Michel will now consult member states over a date for a new summit. If no deal is reached by the end of the year the EU will have to put projects on hold.--BBC

INVESTORS DIARY 2020

Company

Event

Venue

Date & Time

Companies under Cautionary

Bindura Nickel Corporation

Padenga Holdings

Delta Corporation

Meikles Limited

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