Major International Business Headlines Brief::: 27 February 2020

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Major International Business Headlines Brief::: 27 February 2020

 


 

 


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ü  South Africa's Shoprite and Equities Property fund form $273 mln JV

ü  MTN eSwatini appoints Wandile Mtshali as units CEO

ü  South Africa's rand recovers as budget risk draws nearer

ü  South Africa's Libstar full-year earnings expected to rise

ü  Egypt to launch gold exploration tender on March 15 -minister

ü  Nigeria posts highest quarterly GDP growth in Q4 since recession

ü  Rwanda's finance minister seeks to boost spending by 4.8%

ü  Kenya pledges to follow through on sugar factory privatisations

ü  S.Africa's Sasol slides to 14-year low as U.S. project hurts profits

ü  Aspen stock rises almost 6% after H1 results forecast ahead of estimates

ü  Coronavirus: Microsoft warns of hit to computer sales

ü  China turns to online car sales as coronavirus spreads

ü  Climate case may upset Heathrow third runway plans

ü  Tim Cook says Apple's first Indian store to open 2021

ü  Coronavirus prompts buyers to look closer to home

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

South Africa's Shoprite and Equities Property fund form $273 mln JV

JOHANNESBURG (Reuters) - South Africa’s Shoprite Holdings will transfer its
distribution centres and undeveloped land valued at 2 billion rand ($133
million) to a new joint venture (JV) it is creating with Equities Property
Fund, the supermarket chain said on Tuesday.

 

Shoprite, which has more than 2,800 stores across Africa, has said it wants
to divest some real estate to help its balance sheet.

 

Shoprite Checkers will contribute a portfolio of distribution centres and
associated undeveloped land in Brackenfell in the Western Cape and Centurion
in Gauteng into the joint venture.

 

Equities Property will inject cash of 2.1 billion rand in exchange for a
50.1% equity stake in the joint venture, the retailer said.

 

Thereafter, the joint venture will acquire Shoprite’s Cilmor distribution
centre in Cape Town and associated undeveloped land for a cash amount of 1.2
billion rand.

 

“The joint venture company will manage the portfolio and it will serve as a
platform for the future development of the undeveloped land situated at
Cilmor and Centurion and for possible future property acquisition and
development opportunities,” Shoprite said.

 

AFRICA REVIEW

Separately, the continent’s top supermarket is reviewing its long-term
options in Africa, including an “alternate operating model”, group Chief
Executive Officer Pieter Engelbrecht told analysts at the retailer’s
half-year results.

 

“What we mean by that is yes we’re looking at a possible joint venture, a
franchise model, different formats. We are reviewing all of the options,” he
said.

 

Immediate steps Shoprite has taken include rent reductions in 17
supermarkets, with negotiations of 16 more underway. It has also switched
some of the rent and borrowings from U.S. dollars to local currency.

 

It is also assessing the viability of unprofitable stores and curbing
capital allocation for new stores and developments, Engelbrecht added.

 

Shoprite will therefore only have opened 13 supermarkets for the full year
ended June compared to a target of 17.

 

“We’re still committed to the continent but not at all cost. We’re fairly
confident that these immediate operational actions will lead to an improved
financial performance in this segment (non-South Africa),” Engelbrecht said.

 

Shoprite disappointed the market in early 2019 when it announced its first
drop in first-half earnings in a decade due to currency devaluations, supply
issues and low consumer spending in Angola, Nigeria and Zambia.

 

Those devaluations continued in the 26 weeks ended Dec. 29, hitting diluted
headline earnings per share (HEPS), which fell by 2.6% to 372.4 cents in the
period from 382.4 cents a year earlier.

 

Sales in rand terms in the group’s international operations, comprising 14
African countries, fell by 3.1%. In constant currency terms, sales rose
4.8%.

 

The retailer’s core business, Supermarkets South Africa, saw an acceleration
in sales, with overall growth of 9.8% versus 7.4% in the second half.

 

($1 = 14.9945 rand)

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

MTN eSwatini appoints Wandile Mtshali as units CEO

MBABANE (Reuters) - MTN eSwatini, the local unit of telecoms group MTN, on
Tuesday appointed Wandile Mtshali Chief Executive Officer after his
predecessor was appointed prime minister of the southern African kingdom.

 

Mtshali, who holds a Bachelor’s degree from the University of Botswana in
electronics and computer engineering, will take the helm on Monday, the
company said.

 

Former CEO Ambrose Dlamini was appointed as the prime minister in 2018 by
eSwatini’s King Mswati.

 

Mswati is Africa’s last absolute monarch and has tight political control
over the land-locked nation formerly known as Swaziland. The king chooses
the prime minister and government.

 

Mtshali worked for MTN eSwatini for 17 years before being appointed
technical officer in South Sudan and Guinea Bissau. He joined MTN’s
competitor Swazi Mobile in 2017 as chief technical officer.

 

Mtshali replaces Sibusiso Nhleko who was acting CEO since Dlamini’s
departure.

 

 

 

South Africa's rand recovers as budget risk draws nearer

JOHANNESBURG (Reuters) - South Africa’s rand traded firmer early on Tuesday,
recovering alongside fellow emerging markets currencies flattened in the
previous session as investors worried about the rapid spread of the
coronavirus outside of China.

 

At 0900 GMT the rand was 0.75% firmer at 15.0530 per dollar. It had earlier
tumbled to a four-month low of 15.1900 in a global risk sell-off worsened by
growing bets that Wednesday’s budget may not be enough to prevent a
downgrade of South Africa’s credit rating to “junk” by Moody’s.

 

“It was not surprising to see the rand under pressure at the start of the
week, especially as Wednesday’s risk event draws closer,” economists at ETM
Analytics said in a note.

 

“South Africa’s idiosyncratic risks have weighed heavily on investor
sentiment. In particular debilitating nationwide power cuts, an
unsustainable debt trajectory and a lack of evidence that there’s political
will to implement the economic reforms.”

 

A Reuters poll this month forecast 2020 GDP growth of 0.8%, while a survey
last week suggested the Treasury will raise taxes in the Feb. 26 budget to
increase revenues and ward off the loss of South Africa’s last
investment-grade credit rating.[nL8N2AL29L]

 

Traders said the recovery in the rand and other emerging market currencies
was due to profit-taking after the U.S. dollar marched higher as investors
rushed for safe-havens on Monday, plus positioning for further falls after
the budget speech.

 

Stocks, which recorded their largest one-day fall in more than a decade on
Monday, opened higher, with the Top-40 index up 1.3% to 49,942 points.

 

Supermarket chain Shoprite missed half-year earnings forecasts, with diluted
headline earnings per share (HEPS) down 2.6% to 372.4 cents in the 26 weeks
ended Dec. 29, as currency devaluations in the rest of Africa and store
closures in Nigeria weighed. [nL5N2AP0LB]

 

Bonds opened firmer, with the yield on the benchmark 2026 government issue
down 2 basis points to 8.815%.

 

 

 

South Africa's Libstar full-year earnings expected to rise

JOHANNESBURG (Reuters) - South African food producer Libstar Holdings Ltd on
Tuesday flagged annual earnings up as much as 12%, boosted by improved
profits in each of the group’s product categories.

 

Libstar, whose products include baking aids, snacks, confectionery and
perishables, said normalised headline earnings per share (HEPS) including
the impact of first-time adoption of IFRS 16 and IFRS 9 for the year ended
Dec. 31, 2019 is expected to be between 79.9to 83.7cents per share, or 7% to
12% higher, compared with 74.6 cents in the year ago period.

 

HEPS is the main profit gauge in South Africa and strips out certain one-off
items.

 

 

 

Egypt to launch gold exploration tender on March 15 -minister

CAIRO (Reuters) - Egypt plans to launch an international exploration round
for gold and other minerals from March 15 running until July 15, the
petroleum minister said on Tuesday.

 

The country’s Eastern desert is believed to be highly mineral-rich as it
forms part of an area known as the Arabian-Nubian shield, a geological
feature that stretches from Saudi Arabia and Yemen in the east to Sudan and
Egypt in the west.

 

Investors will be bidding on blocks which will be awarded to them within
four months of the bid round being launched, an official at the mineral
resources authority said on Sunday.

 

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 of 20%.

 

 

 

Nigeria posts highest quarterly GDP growth in Q4 since recession

ABUJA (Reuters) - Nigeria’s economic growth rose to an annual rate of 2.55%
in the three months to the end of December, its highest quarterly growth
since a 2016 recession, the statistics office said on Monday.

 

Africa’s largest economy grew 2.27% in 2019 from 1.91% the previous year.
The country has struggled to shake off the effects of a 2016 recession that
ended the following year, and has been grappling with low growth since.

 

Growth in 2019 was supported by a favourable oil price and higher crude
production. The oil sector, which accounts for around two-thirds of
government revenue and 90% of foreign exchange, grew 6.36% in Q4.

 

Crude production hovered at around 2 million barrels per day throughout the
year, the statistics office said.

 

The non-oil sector, which the government is trying to make the main growth
sector, rose 2.26% in Q4.

 

President Muhammadu Buhari, who began a second four-year term in May, has
pledged to revive the economy and diversify it away from over-dependence on
oil. But investors have been waiting for policy signals that could lift
growth.

 

“Today’s figures still doesn’t show any sign that President Buhari is
succeeding in rebalancing Nigeria’s economy,” said John Ashbourne, Africa
economist at Capital Economics.

 

“The pickup in growth was caused by an easing in the contraction of
wholesale and retail trade and a boom in the banking sector.”

 

Last week the IMF cut its 2020 growth forecast for Nigeria to 2% from 2.5%,
citing lower demand for oil due to fears that the coronavirus outbreak in
China will cause a slowdown.

 

The Fund said Nigeria was still recovering, but inflation was rising which,
along with external shocks, would weaken its foreign exchange reserves due
to its deteriorating terms of trade and capital outflows.

 

Annual inflation in Nigeria rose for the fifth straight month to 12.13% in
January, its highest in nearly two years.

 

 

 

Rwanda's finance minister seeks to boost spending by 4.8%

KIGALI (Reuters) - Rwanda’s Finance Minister Uzziel Ndagijimana on Monday
asked parliament to raise the government’s spending for the financial year
to June by 4.8%.

 

The East African economy, which is mainly dependent on farming and services
like hospitality, grew by an average of 10.9% in the first nine months of
last year, Ndagijimana said.

 

The government’s motion is almost certain to pass through parliament where
President Paul Kagame’s ruling party has full control.

 

The additional expenditure will increase the government’s spending to 3.02
trillion francs ($3.29 billion), with the extra cash funding the hiring of
new doctors and other government programs, the minister said.

 

He said the extra cash will be raised through tax revenues and other non-tax
revenues, without providing more details.

 

($1 = 919.2600 Rwandan francs)

 

 

 

Kenya pledges to follow through on sugar factory privatisations

NAIROBI (Reuters) - Kenya will privatise sugar factories and impose an
additional tax as it tries to revive the industry, President Uhuru
Kenyatta’s office said on Monday.

 

Industry experts count the high cost of production and poorly funded
government factories with aging machinery among the problems facing the East
African nation’s sugar industry.

 

The government will act on all of the recommendations made by a task force
formed to focus on reviving the sector, Kenyatta’s office said in a
statement.

 

The task force recommended reintroducing a levy.

 

“The sugar levy will be charged on consumers so as to raise the revenue
needed to assist farmers to develop their sugarcane crop,” Kenyatta’s office
said, without providing details on the levy.

 

The task force also recommended changes to sugar import rules, it said,
without elaborating.

 

The government’s latest attempt to privatise was in 2015, when it announced
plans to sell shares in five companies it owns. Two of these are in
receivership.

 

The effort failed, after a court case challenged the manner in which the
government’s Privatization Commission planned to do it, prompting the
commission to restart the process and involve more parties such as regional
county governments.

 

The 2017 formation of the task force that handed its report to Kenyatta on
Monday was partly driven by 2015’s failed privatisation.

 

Kenya produced 485,498 tonnes of sugar in 2018, up from 377,126 tonnes a
year earlier, data from the Kenya National Bureau of Statistics show.

 

The country consumes 870,000 tonnes of sugar annually.

 

It relies on duty-free imports from the Common Market for Eastern and
Southern Africa (COMESA) trade bloc to cover its annual deficit.

 

 

 

S.Africa's Sasol slides to 14-year low as U.S. project hurts profits

JOHANNESBURG (Reuters) - South African petrochemicals group Sasol’s
half-year profits plunged, sending shares to a 14-year low on Monday, due to
problems at its Lake Charles Chemicals project and softer chemical and Brent
crude oil prices.

 

The U.S. ethane cracker project, known as LCCP, has been hit by delays and
is costing billions of dollars more than initial estimates. Sasol’s joint
chief executives resigned late last year in a bid to restore confidence in
the firm.

 

Shares in Sasol slid to their lowest since 2006 at 193.99, and were down
8.6% to 195.78 rand by 1142 GMT, after the firm posted headline earnings per
share of 5.94 rand ($0.40), down from 23.25 rand a year earlier.

 

“The financial results were impacted mostly by a weak macroeconomic
environment, which resulted in lower margins, and the LCCP being in a
ramp-up phase,” Sasol said.

 

The world’s top manufacturer of motor fuel from coal did not declare an
interim dividend, and chief financial officer Paul Victor said the company
was unlikely to pay a final dividend at the end of the financial year.

 

“In the current phase we find ourselves, we think the probability of even
paying a final dividend can be low,” Victor said, adding that the board was
yet to make a final decision.

 

LCCP HITS EARNINGS

Adjusted earnings before interest, tax, depreciation and amortization
(EBITDA) fell 27% to 19.6 billion rand, with LCCP knocking 1.1 billion rand
off the total, and depreciation charges reaching a further 1.7 billion rand.

 

The cost of the Louisiana plant, which converts natural gas into plastics
ingredient ethylene, is expected to reach as much as $12.8 billion, up from
a 2014 forecast of $8.9 billion.

 

Its development has been hit by poor weather conditions, delays and
oversights including duplicate credits and procurement back-charges.

 

Sasol said revenue from LCCP did not yet match its project costs. However,
the company expects the facility to generate a profit in the second half of
the year.

 

The group said LCCP’s overall project completion was at 99% at the end of
December.

 

However, investigations into an explosion and fire at one of the units at
the LCCP plant in January revealed that a piping support structure within
the emergency vent system had failed during commissioning, causing a pipe to
dislodge.

 

Sasol said while no major equipment had been damaged, and the incident was
isolated, the unit would not be operating beneficially until the second half
of 2020.

 

Its gearing ratio increased from 56.3% in June last year to 64.5% at the end
of the interim period. The group, which began a review of its assets in
2017, said it would not rely on disposals to reduce debt.

 

Chief Executive Fleetwood Grobler, who took the helm in November, said Sasol
would keep its mining business despite speculation it would dispose of its
coal assets as climate change pressures increase.

 

“There was some speculation about the future of our mining business, but I
want to clarify mining is a key driver to the integrated coal-to-liquid
value chain and we intend to keep it,” Grobler said.

 

($1 = 14.9945 rand)

 

 

 

Aspen stock rises almost 6% after H1 results forecast ahead of estimates

JOHANNESBURG (Reuters) - Aspen Pharmacare Holdings Ltd’s shares surged 5.7%
on Monday, putting the South African drugmaker on track for its biggest
one-day gain in more than two-months after it said its half-year results
would likely beat estimates.

 

The nearly 170-year-old drug maker, with a presence in about 56 countries,
said on Friday it expects to report half-year results slightly above its
forecast as its manufacturing unit benefited from the restart of heparin
sales to third party customers. [nL4N2AL3NK]

 

At 0856 GMT, shares in Aspen were 3.11% firmer at 110.88 rand, having risen
as high as 113.72 rand, and on course for their biggest one-day gain since
December 17.

 

The market also cheered Aspen for lowering its debt to about 38 billion rand
($2.53 billion) by Dec.31. The firm said its leverage ratio, which assesses
the ability of a firm to meet its financial obligations, is likely to end
between 3.50x and 3.60x against a covenant threshold of 4.0x, the firm
added.

 

Aspen said assuming the net proceeds from the sale of its Japanese business
to Swiss drugmaker Novartis were received on Dec.31, the leverage ratio
would have been between 3.20x and 3.30x.

 

Investors have been concerned about Aspen’s debt in the last two years after
levels moved close to breaching debt covenants.

 

In September it said it was aiming for a leverage ratio of less than 3.0x in
the medium term as it bets on positive free cash flows and a substantial
decline in planned capital expenditure after the 2020 financial year.
[nL5N2624OR]

 

“The forced sale of the formula business and the Japanese business seems to
have saved Aspen from a rights issue,” Vestact Portfolio Manager, Byron
Lotter said in a note.

 

“I expect the share price to react positively to this news. At these levels,
it seems to be a good potential turn around story.”

 

($1 = 14.9945 rand)

 

 

 

Coronavirus: Microsoft warns of hit to computer sales

Cleveland Browns American football players look at a Microsoft Surface
tablet during a game against the Arizona Cardinals

Microsoft is the latest major company to warn of a disruption as China
grapples with the coronavirus outbreak.

 

The tech giant said because its Chinese suppliers were shutdown,
manufacturing operations have been affected.

 

This delay could hit sales of its personal computing business including
Surface tablets, Microsoft warned.

 

Microsoft said factories are re-opening across China, but this is happening
slower than expected.

 

The Microsoft announcement highlights a growing problem for tech firms that
rely on a complex network of suppliers in China for real-time deliveries of
crucial parts.

 

"With Apple the first one of the tech bellwethers to confirm the damaged
supply chain post the coronavirus outbreak last week, it should not be a
shocker 
 (that Microsoft's) PC business is going to be under near-term
pressure related to supply chain issues in the region," said Wedbush
Securities analysts Daniel Ives and Strecker Backe in a note.

 

Other computer and electronics makers are also suffering from the disruption
to their supply chains, both voluntarily and forced, as they follow
government health directives and take extra steps to keep workers at home to
avoid further spread of the virus.

 

Foxconn, a key supplier to Apple, said it is continuing its efforts to bring
its factories in China back up to full speed, but not at the expense of
worker safety.

 

Why much of 'the world's factory' remains closed

Coronavirus: Chinese workers offered free transport

China's phone industry urged to 'get back to work'

"While our facilities in China have been delayed in their return to normal
operations, our facilities in a number of other markets, including Vietnam,
India and Mexico, are running at full capacity and expansion plans for some
of our global facilities are being rolled out," Foxconn said in a statement.

 

With many factories still closed after the Chinese New Year break, global
firms are struggling to get the parts they need to make their products.

 

Car manufacturers have been closing production plants outside of China that
rely on essential parts from the country.--BBC

 

 

 

China turns to online car sales as coronavirus spreads

More automakers are selling cars online in China as worried consumers stay
away from showrooms to stop the spread of the coronavirus.

 

Chinese carmaker Geely is the latest to launch a new online service to try
to boost sales in the country.

 

It joins the likes of Tesla, BMW and Mercedes-Benz who are now actively
marketing cars over the internet.

 

The online trend comes amid a downturn in car sales in China, which
plummeted 92% in the first half of February.

 

Car sales in China fall 92% as coronavirus hits

Fiat warns of coronavirus risk to Europe car plant

Jaguar Land Rover 'shipping parts in suitcases'

Geely, which owns black cab maker The London Electric Vehicle Company and
Volvo, said customers can now order and customise their cars on its website.

 

China's largest privately-owned car maker will also offer test drives
without potential customers needing to visit the showroom, as the car can be
driven directly to their home address. Geely calls it a fully "contactless"
vehicle purchasing service.

 

Mercedes-Benz said it was working closely with its Chinese dealer partners
to support its online channels. "In face of the current situation, we have
extended our online offer and observe a positive response from our
customers," a spokesman for the German car maker said.

 

Consulting firm Frost & Sullivan estimates that almost 825,000 new vehicles
were sold online globally in 2019, either through online financing or by
making a part payment online. It estimates that by 2025, 6 million vehicles
will be sold through online platforms and says "the coronavirus will provide
impetus to digital retailing for cars".

 

"As witnessed in China the postponement of purchase decision is encouraging
vehicle manufacturers to redirect resources towards online marketing and
e-commerce platforms," said Sarwant Singh, managing partner at Frost &
Sullivan.

 

Carmakers such as Tesla and BMW have also started to promote products
heavily online as Chinese authorities warned people to stay away from public
places. Elon Musk's Tesla has already been shifting to selling more cars
online to stay ''financially sustainable''.

 

Car sales in China dropped 92% for the first half of February, according to
the China Passenger Car Association (CPCA). It said there was "barely
anybody at car dealers in the first week of February as most people stayed
at home".--BBC

 

 

Climate case may upset Heathrow third runway plans

The Court of Appeal is set to make a ruling over Heathrow's expansion in a
case described by green groups as massively significant.

 

Judges will decide whether Heathrow's expansion plans took into account
climate change commitments.

 

If the court rules against the environmentalists, it is likely Heathrow's
third runway will be built.

 

If it rules against the government, ministers could re-start the appraisal
process.

 

This would involve making the highly contentious case that expansion is
compatible with combating climate change.

 

Or the prime minister could also accept a negative verdict and allow the
court to take the blame for scuppering the expansion proposal that he has
long opposed.

 

The case has been brought by local residents, councils, the mayor of London,
and environmental groups including Greenpeace.

 

Climate challenge

The government’s climate change committee advised that expanding Heathrow is
not compatible with a climate neutral economy.

 

But the former transport secretary Chris Grayling gave the go-ahead to a
third runway there in April 2018.

 

Boris Johnson missed the Commons vote on the scheme. He was in Afghanistan
in his role as foreign secretary.

 

What is the third runway plan?

What is climate change? A really simple guide

Climate campaigners attack aviation duty proposal

Green groups argue that before the decision was made, Mr Grayling should
have taken into account the Paris deal on climate change, which pledged to
limit global warming to 1.5 degrees if possible.

 

At the time, he said: “The step that [the] government is taking today is
truly momentous. I am proud that after years of discussion and delay, this
government is taking decisive action to secure the UK’s place in the global
aviation market – securing jobs and business opportunities for the next
decade and beyond.”

 

Government advisers warned him that expanding aviation would increase
emissions when they should be going down.

 

And since then parliament has agreed to a climate neutral economy by 2050 –
substantially more challenging than the 80% emissions reduction target in
force when Mr Grayling made his decision.

 

The green groups don't believe an expanded Heathrow will be able to meet the
net zero target, even with the advent of new technologies.

 

Aviation 'not the enemy' in climate battle

Climate change to drive 'massive' investment shift

They also think the government’s calculations over Heathrow understate the
overall damage aviation does to the climate.

 

If they win the case, the implications for other government policies in the
UK and elsewhere are potentially huge.

 

Tim Crosland from the pressure group Plan B, one of the organisations which
brought the court action, told BBC News: “This would be massively
significant – it would mean that in the UK at least carbon-intensive
investment shouldn’t happen any more.

 

“Other nations will be looking at this verdict and taking note [of] what it
means to commit to net zero carbon emissions."

 

'Good for trade'

John Holland-Kaye, chief executive of Heathrow Airport, told BBC Radio 4's
Today programme on Wednesday that the airport would play an essential part
in post-Brexit Britain.

 

"Let's be clear, no Heathrow expansion, no global Britain," he said. "That's
how simple it is."

 

He said only a "hub" airport can get goods and people to "all the big
trading markets of the world".

 

"If we're not flying through Heathrow, we'll be flying through Paris Charles
De Gaulle," he said. "We'll be handing control of our trading economy to the
French - once our friends and partners, now our rivals."

 

"Now, no prime minister is going to give control of the economy to the
French," he said. "We cannot let the French control our trading future."

 

The government declined to comment.--BBC

 

 

 

Tim Cook says Apple's first Indian store to open 2021

Apple's chief executive Tim Cook said the company would open its first
physical stores in India in 2021 and a online outlet later this year.

 

Apple had to seek special approval from the Indian government to open a
store without a local partner.

 

The announcement was made at the company's annual shareholders' meeting.

 

Investors at the meeting also voted on a proposal that the firm should alter
how it responds when governments ask it to remove apps from its marketplace.

 

Though the measure wasn't approved, it failed by a slimmer margin then
similar proposals in the past.

 

Apple's move into India, the second largest smartphone market in the world,
has been expected for some time, but the announcement of a date was new.

 

In 2018 India changed the laws that prevented foreign brands from opening
single-brand stores in the country. Nevertheless Mr Cook said India had
wanted Apple to open its store with a local partner.

 

Mr Cook told investors he didn't think Apple would be a "good partner".

 

"We like to do things our way," he said.

 

Apple sells its products through third-party stores in India at the moment.
But its sales lag competitors Samsung and Huawei.

 

With demand for Apple products slowing in China - even before the outbreak
of Coronavirus - the firm is hoping it can spur growth in other developing
markets like India.

 

Human rights vote

Apple investors also voted on a proposal meant to change the way the company
handles requests by governments to remove applications from its App Store.

 

The proposal would have forced Apple to publicly commit to respecting
"freedom of expression as a human right."

 

The measure was tied to Apple's removal of apps by the Chinese government,
including an app that allowed protestors in Hong Kong get around China's
internet restrictions.

 

Supporters of the measure said Apple was complicit in Chinese human right
abuses when it gave in to requests to remove these types of apps.

 

The measure was voted down but received nearly 40% of the vote.

 

Similar measures have been proposed in the past but have never received as
much support.

 

Two shareholder advisory groups, Glass Lewis and Institutional Shareholder
Services recommended voting in favour of the proposal.

 

Coronavirus concerns

Mr Cook also addressed the impact that coronavirus is having on Apple's
operations.

 

The tech giant warned investors early this month that it expected to miss
its quarterly earnings estimate because of the outbreak. Many of the Chinese
plants that make components for Apple products - like its iPhones and
MacBook laptops- have been closed or operating at with limited capacity to
reduce the spread of the disease.

 

The shareholders meeting also allowed investors to ask Apple executives
questions about the company's other development.

 

One investor asked why the company had not bought the rights to the upcoming
reunion of the TV show Friends - which is slated for HBO Max.

 

Mr Cook said a spinoff would not be keeping with the brand of Apple TV Plus
- which is focused on original content.--BBC

 

 

 

Coronavirus prompts buyers to look closer to home

Thirty years ago Bhavik Master's parents watched in dismay as orders for
their fine knitwear, chunky winter jumpers and cardigans disappeared
overseas.

 

Retailers had discovered they could cut costs by ordering from Chinese
manufacturers.

 

Now though the tables may be turning thanks to the coronavirus.

 

"We're seeing an increase in inquiries and confirmed orders coming through,"
says Bhavik.

 

Their factory, based in Leicester under the brand Paul James, is located in
a sprawling network of long narrow rooms, filled with looms, colourful yarns
and expert sewers seated in rows.

 

Like dozens of British manufacturers in towns and cities across the UK they
could soon be piecing together orders for clients they once lost, because
the coronavirus is causing chaos for big retailers and their supply chains.

 

Swimwear

As factories in China remain largely closed, High Street shops are urgently
looking at how they can plug gaps for products that are due on shelves in as
little as eight weeks.

 

"A lot of retailers are worried they'll have no stock in the stores soon
because so much comes from the Far East now, particularly in textiles," says
Kate Hills from Make it British. She set up the new trade body a decade ago
when she saw the impact the outbreak of the Sars virus was having on the
fashion industry. She struggled to find UK firms to manufacture garments.

 

"We're so heavily reliant on boats coming from China [but] it takes weeks to
get here. We are going to start running out of stock in the stores unless we
find manufacturers locally and that's what businesses are now trying to do."

 

Drinks giant warns coronavirus will hit profits

'We cancelled our holiday because of coronavirus'

Car sales in China fall 92% as coronavirus hits

For decades, big British retailers turned their backs on UK garment
manufacturers. Hundreds of textile factories in towns across the UK closed
as High Street stores preferred to buy cheaper clothes from China.

 

But the virus has laid bare how exposed global trade is to a sudden shock,
as supply lines have been interrupted. It is presenting big opportunities
for the factories that did survive to fill those gaps.

 

"In particular, it is things like seasonal products," says Ms Hills. "We're
coming into the season for swimwear and that's nearly all made in China and
you're going to start seeing a lack of those products in stores or certainly
a lot less than you would have before."

 

Passing trends

In a survey sent out to her members across the UK, almost 100 responded,
describing the increase in demand they've seen.

 

"All different sorts of products people are looking to make here now:
knitwear, dress factories getting increased orders, even demand for face
masks - we're being asked if we know people who can make them!"

 

Bhavik can't divulge who his new customers are, but he thinks it is high
time British retailers realised the benefits of ordering closer to home.

 

"I think in the 80s and 90s, China was very good at investing in its local
factories and local production and investing in modern machinery. But now
the rest of the world has caught up, and I think it is time for brands to
look further afield and spread that production risk," he says.

 

A product made in a UK factory can reach the shop shelves eight to 12 weeks
after it's ordered, much faster than the five to six months it takes to
transport it on a boat from China. In that time, a fashion trend may have
passed altogether.

 

Specialised Canvas in Chesterfield has also seen a growth in orders
following the coronavirus outbreak. It is one of the only manufacturers in
the UK of pathogen isolation chambers, used to transport and treat people
with severe infection and health problems. They made chambers that were used
for Ebola patients.

 

As concern about how to treat coronavirus intensifies, managing director
Paul Noble says "manufacturing products for infection control is seeing
increased inquiries and orders for products to be used potentially in the
treatment of the outbreak".

 

Loyalty

On the first floor of the factory, engineers Karen and Ellen meticulously
put parts of the isolation chambers together. They cut and bond panels of
thick industrial plastic into sections. Today they are making funnels so
arms can reach inside the chamber to treat patients. They will be bought by
the government and used by the NHS, RAF and Ministry of Defence.

 

Paul Noble of Specialised Canvas says orders for infection control have
increased but so have those for other products

The other side of Paul's manufacturing business, which makes bags and
straps, is also seeing growth propelled by clients wanting to make more in
the UK.

 

As part of the survey results, manufacturers described how some retailers
appeared surprised at the low costs of producing in the UK now, with the
added bonus of proximity to the market, cutting transport costs and
potentially enhancing their environmental credentials.

 

A small increase in demand at this early stage doesn't represent an
immediate switch back to UK production, and there may not be businesses left
now that can meet every increase in demand.

 

"I do know some factories who are turning some of the new orders away as
they want to stick with loyal original customers," says Kate Hills. "They're
worried they'll come in, place new orders and then go back to China when
virus has blown over. They don't want the hassle of working with them
anymore."--BBC

 

 

 

 

 

 

 

 

 

 


 

 


 

INVESTORS DIARY 2020

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


Bindura Nickel Corporation

 

 

 


Padenga Holdings

 

 

 


Delta Corporation

 

 

 


Meikles Limited

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
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been compiled from sources believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
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whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
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investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and sourced from third parties.

 


 

 


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