Major International Business Headlines Brief::: 14 January 2020

Tue Jan 14 01:59:02 CAT 2020

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Major International Business Headlines Brief::: 14 January 2020

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ü  South Africa's Massmart could cut 1,440 jobs

ü  MTN Nigeria rises 10% after $2 bln tax case withdrawn

ü  Kenya's stock exchange sees boost from repeal of rate cap

ü  Kenya's first green bond starts trading on the bourse

ü  Nigeria backs down in $2 bln dispute with telecoms giant MTN

ü  Flybe in talks to delay air passenger duty bill

ü  Why Flybe matters: 'Valuable connectivity'

ü  US to reverse China 'currency manipulator' label

ü  Microsoft ends Windows 7 support: What should you do?

ü  The billionaire retailer whose shops had no stock

ü  Weak November weighs on UK growth

 <mailto:info at bulls.co.zw> 

South Africa's Massmart could cut 1,440 jobs

JOHANNESBURG (Reuters) - South Africa’s Massmart Holdings could cut up to
1,440 jobs under a plan to close some stores, the retailer said on Monday as
it struggles to grow sales in a tough economy.

Massmart, majority owned by U.S. retail giant Walmart, swung to its first
half-year trading loss in two decades last August, as low growth, high
unemployment and a rising cost of living hurt South Africans’ spending
power.

The retailer said in a statement it had started consultations with unions
and other stakeholders around the closure of up to 34 stores, following a
review that identified a number of outlets that were underperforming.

“A total of 34 Dion-Wired and Masscash stores and approximately 1 440
employees are potentially affected by this process,” it said.

Dion-Wired is Massmart’s electronics and appliances subsidiary, while
Masscash is its wholesale division including cash and carry, food and
cosmetics outlets.

Massmart shares, which sunk to a 13-year low last year after the retailer
issued a profit warning, were up 2.4% by 0853 GMT.

A number of Massmart’s rivals, such as Shoprite, are also struggling in the
difficult market conditions, and both retailers have also had to battle
currency weakness elsewhere in Africa, especially Zimbabwe and Nigeria.

 <mailto:info at bulls.co.zw> 

MTN Nigeria rises 10% after $2 bln tax case withdrawn

LAGOS (Reuters) - MTN Nigeria shares rose 10% on Monday to their highest in
two weeks after the country’s attorney general withdrew a $2 billion tax
demand against the South African telecoms firm.

The company and attorney general both said on Friday that Nigeria’s attorney
general had withdrawn the tax case.

Shares in MTN, Nigeria’s second biggest listed firm, rose to 127.60 naira
each, helping lift the broader market index by 1.6%.

Nigeria is MTN’s biggest market, with 58 million users in 2018 and it
accounts for a third of the South African group’s core profit.

The tax case had cast a cloud over the telecoms firm as investors feared
that the demand by the West African nation could affect MTN’s value.

The company floated its shares on the Lagos bourse last year after its
parent South Africa’s MTN Group resolved another case with Nigerian
authorities over more than 5 million unregistered SIM cards.

Since the $6.5 billion listing last May, MTN stock peaked in September
before declining. It fell to 105 naira per share last month, near its
listing price of 99 naira.

MTN Nigeria has said it would sell more shares to the public and increase
local ownership once the tax row is resolved.

Kenya's stock exchange sees boost from repeal of rate cap

NAIROBI (Reuters) - Kenya’s Nairobi Securities Exchange (NSE) expects the
removal of a cap on commercial lending rates to spur stocks trading, lifting
valuations and attracting new listings, its chief executive said on Monday.

The government removed the cap last November, fuelling a rally in bank
shares that helped the market finish the year as one of the best performers
on the continent.

“Banks are now free to lend at the rates they desire and so investors are
likely to look at equity as an alternative to raise capital to run their
businesses,” CEO Geoffrey Odundo told Reuters in an interview in his office.

Investors would potentially shift from fixed-income into stocks, boosting
valuations and prospects for new listings, he said.

Like other frontier markets, the Nairobi bourse was buffeted by the impact
of a trade war between the United States and China. Valuations dropped to
historically low levels, with price to earnings ratios falling below 10, but
they have since recovered to just above 10 due to the rally in bank shares.

The exchange - an entry point for foreign investors seeking exposure to East
Africa’s fast-growing economies, and the continent’s fifth biggest overall -
has seen the number of companies it lists remain at about 65 for many years.
Those companies are currently worth a combined 2.5 trillion shillings ($24.6
billion).

It launched an incubator programme in December 2018 to prepare young firms
for eventual listing or bond issuance.

The scheme is working well, Odundo said, with 24 companies from the
entertainment, media, travel, beverages and even steel manufacturing sectors
admitted onto the platform, called Ibuka.

The NSE partnered with the Shenzhen Stock Exchange in China last year,
allowing five Kenyan firms on Ibuka to pitch Chinese investors for capital
through Shenzhen’s V-Next Connect platform, Odundo said.

“We are going to see that partnership this year bring about some
transactions,” he said. “One or two are also considering listing on the
(Nairobi) market.”

A derivatives market, which the NSE launched last July, was also off to a
promising start, Odundo said, having traded 390 contracts worth more than 25
million shillings so far.

The NSE, which issued a profit warning for last year, expects an improved
performance this year, mainly due to new products, including its first green
bond, and an investment of 200 million shillings in trading infrastructure.

“We are now very positive about the market in 2020,” Odundo said.

($1 = 101.4500 Kenyan shillings)

Kenya's first green bond starts trading on the bourse

NAIROBI (Reuters) - Kenya’s first green bond was listed for trading on the
Nairobi Securities Exchange on Monday, offering investors the chance to put
money into an environmentally-friendly fixed income security for the first
time in the bourse’s 65 year history.

Green bonds raise capital for projects in renewable energy, energy
efficiency, green transport and waste-water treatment.

The bond, worth 4.3 billion shillings ($42.5 million), was issued by
Nairobi-based property developer Acorn Holdings last October to build
student accommodation.

“Our capital markets, our investors and indeed our government have started
to take climate change seriously ,” said Kiprono Kittony, a member of the
board of the Nairobi Securities Exchange (NSE).

“They will be listing the green bond also on the London Stock Exchange next
week which is a first also to have a Kenyan shilling bond listed in the
United Kingdom.”

The green bond from Acorn followed new regulations by the Kenyan government
last year that exempt investors from paying withholding taxes on their
interest earnings from such bonds.

Kenya’s financial sector has a joint green finance initiative, bringing
together banks and even regulators, which encourages issuance of new
products like green bonds to help fight the impact of climate change.

Patrick Njoroge, the governor of the central bank, said the initiative was
important because developing countries like Kenya were being
disproportionately hit by global warming, despite being some of the lowest
polluters on the planet.

“Eventually, all finance will be green,” he told a launch ceremony for the
Acorn bond at the NSE.

The government was considering issuing such bonds, said Julius Muia, the
principal secretary at the ministry of finance, without giving more details.

“We are going to be very innovative in our in our revenue-raising
initiatives,” Muia told Reuters.

Acorn’s bond was structured as a “restricted public offer”, targeting
sophisticated investors who received a 50% guarantee from credit guarantees
provider Guarantco on both their investments and the interest.

Global green bond issuance was expected to be $140-$180 billion last year
according to HSBC, compared with $149.2 billion in 2018.

($1 = 101.2000 Kenyan shillings)

Nigeria backs down in $2 bln dispute with telecoms giant MTN

LAGOS (Reuters) - Nigeria’s attorney general has withdrawn a $2 billion tax
demand against South African telecoms giant MTN Group, a closely watched
case that critics said damaged Nigeria’s appeal to foreign investors.

In a letter filed with the Nigerian stock exchange, MTN said the government
had decided to drop its case and refer the issue to tax and customs
authorities “with a view to resolving contentious issues.”

“We are very pleased with the decision of the (attorney general) and we
commend him for his wisdom,” MTN Nigeria’s Chief Executive Ferdi Moolman
said in a statement.

Shares in MTN Group rose by more than 4% after the announcement. Nigeria is
its biggest market, with roughly 60 million users.

Attorney General Abubakar Malami had ruled that the firm owed taxes relating
to the import of equipment and payments to foreign suppliers from 2007 to
2017. He did not immediately respond to a request for comment on Friday.

MTN, whose local unit listed on the Nigerian Stock Exchange last year, has
said it would sell more shares to the public and increase local ownership
once the tax row is resolved.

($1 = 305.9500 naira)

Flybe in talks to delay air passenger duty bill

Flybe is in talks with the government to defer the payment of air passenger
duty amid reports the airline is attempting to secure a rescue deal.

The BBC understands that delaying the tax bill is just one option that is
being discussed with the regional airline.

However, it is understood that the government is reluctant to go down this
route.

A spokesperson for Flybe said: "We don't comment on rumour or speculation.

It added: "Flybe continues to focus on providing great service and
connectivity for our customers, to ensure that they can continue to travel
as planned."

Why Flybe matters: 'Valuable connectivity'

Flybe boss 'focused' on turning airline around

Sky News reports that Flybe's owner, Connect Airways, has been in talks with
the government since the weekend to keep the struggling airline operating.

Flybe is a long-time critic of air passenger duty which it said
disproportionately burdens its domestic customers because they have to pay
£13 each time they take off from a UK airport.

The airline carries about eight million passengers a year from airports such
as Southampton, Cardiff and Aberdeen, to the UK and Europe.

Its network of routes includes more than half of UK domestic flights outside
London.

A group of local councils in Devon, where Flybe is headquartered, said: "We
are aware that certain aspects of national policy, notably the air passenger
duty regime in relation to domestic flights, has a significant impact on the
company's business model."

However, it is thought deferring that duty is not the government's preferred
option.

Last year, the government refused a request from Thomas Cook for £150m in
emergency funding.

Prime Minister Boris Johnson claimed it would have provided a "moral hazard"
- a dangerous precedent that would see the government called on to rescue
other failing private companies.

However, government sources conceded that the Conservative manifesto
promises to improve regional connectivity would be dealt a severe blow if
Flybe went bust.

Jobs

More than 2,000 jobs are at risk if Flybe fails to strike a deal to secure
funding.

The BBC understands that EY has been lined up as administrators if Flybe
were to go under.

It came close to collapse a year ago but was rescued by a consortium led by
Virgin Atlantic which paid £2.8m for the airline.

Along with Stobart Group, which owns Southend Airport, and hedge fund Cyrus
Capital Partners, the consortium has invested tens of millions of pounds in
the troubled carrier, but losses have continued to mount.

As long as Flybe carries on flying, there is no need to worry and certainly
no reason to try to get your money back, writes Simon Gompertz, BBC personal
finance correspondent.

If the airline was to fail, however, all flights would most likely be
cancelled. Those with paid-for bookings could find they lose their flights
and their cash.

If your flight is part of a package deal covered by the ATOL scheme, then
you should be protected and have the right to a re-booking or refund.

Otherwise you can try to retrieve the money from your credit card company,
if that's how you paid. There is also a debit card chargeback scheme which
can help.

Many travel insurance policies are not much use in these situations, unless
you stumped up extra for the Scheduled Airline Failure option or something
similar.

Those stuck overseas might be left hoping that the government will direct
the CAA to step in, as it did when Monarch and Thomas Cook went under, to
bring back stranded passengers for free.--BBC

Why Flybe matters: 'Valuable connectivity'

Although it has been around under various names for the past 40 years, Flybe
has never been an airline for the masses.

The number of passengers it carries pales by comparison with better-known
budget carriers such as easyJet or Ryanair.

As a company, it is only a tenth as big as collapsed holiday firm Thomas
Cook, so there is little prospect of a government bailout.

But those who habitually choose Flybe see it as a vital service, because it
reaches the places that other airlines fail to touch.

"Mainland UK doesn't understand how vital Flybe is to Northern Ireland,"
tweeted one regular passenger, Jason.

"As someone who travels with them frequently for work, Flybe's collapse
would be a disaster for the NI economy.

"If this happens, Belfast City Airport will have only four flight routes.
FOUR."

Wider connections

Despite Jason's heartfelt words, there are a number of other locations that
owe just as much to Flybe in terms of connections to the wider world.

Cornish holiday resort Newquay, for one, has no direct rail services from
London and the journey takes about five hours. But Flybe can get you from
London Heathrow to Newquay airport in little more than an hour.

And if you live in the Isle of Man, Flybe's service can literally be a
lifeline.

The airline has a contract with the government to transfer NHS patients from
the island to medical facilities in Liverpool when they require treatment
that cannot be provided closer to home.

The Isle of Man government said it was aware of Flybe's reported financial
difficulties and that it had been advised by the company that it was
operating as normal.

"We continue to make bookings on behalf of patients to ensure they are able
to attend medical appointments in the UK," it said.

Small wonder, then, that Ben Bradshaw, the MP whose Exeter constituency
includes Flybe's base, has spoken of the "valuable connectivity" that the
carrier provides.

In fact, he described the airline as "a strategically important business".

Thanks to Flybe, Mr Bradshaw's constituents can fly from Exeter direct to a
variety of destinations including Amsterdam, Paris and Geneva - places that
would otherwise be accessible to them only after a lengthy trek via London.

And Flybe's community links with the area go further, since it has sponsored
Exeter City football club since 2003 and has its logo prominently displayed
on players' shirts.

Other regional airports where Flybe has a significant presence are
Birmingham, Southampton, Manchester, and Cardiff. Some of them would have
difficulty continuing as going concerns if Flybe went bust.

Friends and relations

As well as business people and tourists, Flybe also helps many far-flung
friends and relations to maintain links.

Alex Simpson, who is British but lives and works in the Netherlands, said on
Twitter: "I fly with Flybe regularly from Amsterdam to visit my family in
Devon.

"Compared to other airlines, it is punctual with charming staff. I do hope
that a solution is found that allows it to continue to operate long-term and
sustainably."

Freelance art director Sarah Ward, who divides her time between London and
Cornwall, is another Flybe frequent flyer. She tweeted that she would have
to move house if the airline ceased to exist.

In an appeal to her local MP, Derek Thomas, she asked: "What are you doing
to protect such vital infrastructure?"

In a country where costly infrastructure projects such as HS2 and Crossrail
take an eternity to build, Flybe has provided a nimble solution to tough
transport problems.

Its demise would leave a vacuum that would be hard to fill - and pose a
dilemma for many people whose lifestyle depends on the routes that it
serves.==BBC

US to reverse China 'currency manipulator' label

The US will reverse its decision to brand China a currency manipulator as
the countries work toward a trade deal.

The US Treasury Department is expected to announce the decision on Monday.

Washington and Beijing will this week sign "phase one" of a trade deal aimed
reducing friction between the world's two largest economies.

The US and China have been involved in a tit-for-tat trade war since 2018,
with both imposing tariffs on billions of dollars of each other's goods.

The reversal of the "currency manipulator" label will help ease tensions
between Beijing and Washington.

President Donald Trump has repeatedly accused China of allowing the value of
the yuan to fall, making Chinese goods cheaper.

The US listed China as a currency manipulator in August after China pledged
to retaliate against Mr Trump's threat to put a 10% tariff on $300bn
(£246.7bn) of Chinese imports.

At the time, China blamed the weakening of its currency on the market,
suggesting investors were concerned about the escalating trade war between
the two countries.

Trade tensions

Under the US definition, currency manipulation is the deliberate effort by a
country to influence the exchange rates between its currency and the US
dollar to gain an "unfair competitive advantage in international trade".

Mr Trump, who blames China for a decline in US manufacturing, promised to
label China a manipulator during his 2016 election campaign.

But after he took office, he appeared to soften his tone. The US Treasury
did not apply the designation in the regular reports it publishes about
currency movements.

But eventually, the move was made in a statement by Treasury Secretary
Steven Mnuchin amid heightened trade tensions between Beijing and Washington
last summer. It was the first time the US had officially branded a country a
currency manipulator since 1994.==BBC

Microsoft ends Windows 7 support: What should you do?

Cyber-security experts are urging Windows 7 users to upgrade their operating
system.

Microsoft is going to stop supporting Windows 7 from Tuesday so that it can
focus on "newer technologies".

As a result, Windows 7 users will no longer receive the all-important
security updates and patches that keep their machines safe.

One in four Windows users is running Windows 7, according to statistics
website StatCounter.

What does this all mean?

It means that Microsoft is ending the cat-and-mouse game with hackers
seeking to exploit software bugs in the Windows 7 operating system.

If perpetrators find a flaw in Windows 7, Microsoft will not fix it.

Without continued software and security updates, Windows 7 machines are more
likely to be infected with viruses and malware, Microsoft wrote on its
website.

"Running an unpatched machine means that the flaws in the code will never be
fixed and as exploits for those flaws become known and widespread, your
chances of being successfully attacked grow very rapidly," said Rik
Ferguson, vice-president of security research at Trend Micro.

David Emm, a senior security researcher at Kaspersky Lab, added that people
need to move to a supported operating system as soon as possible.

What are the risks?

Hackers use malware to invade, damage or disable computers.

It can be used to steal personal and financial data, spy on other users
without them knowing, and to hold companies to ransom until a payment is
made.

In May 2017, the NHS was hit by the WannaCry ransomware attack.

A government report in 2018 concluded that the attack could have been
avoided if NHS Trusts had updated their computers and applied the necessary
security patches.

Hackers exploited weaknesses in unpatched versions of Windows 7, as well as
to a lesser extent the earlier Windows XP, which Microsoft had stopped
supporting.

Computers running Windows 7 will still function after Tuesday but they will
become less and less secure.

Microsoft is urging people to move to Windows 10, a newer operating system
that it sells for £120.

"Going forward, the best way for you to stay secure is on Windows 10," it
said. "And the best way to experience Windows 10 is on a new PC."

It is possible to install Windows 10 on old PCs but Microsoft warns that it
may not run smoothly.

In order to run Windows 10, PCs must have a 1GHz processor, 16GB of hard
drive space, and 1GB of RAM memory.

"While it is possible to install Windows 10 on your older device, it is not
recommended," Microsoft said.

That said, Windows 7 users do not need to upgrade if they use their PC
offline.

What do UK officials say?

UK authorities have warned Windows 7 users not to do internet banking or
send emails after Tuesday.

The warning was issued by the National Cyber Security Centre, which is part
of Britain's intelligence agency GCHQ, and first reported by The Telegraph,.

"We would urge those using the software after the deadline to replace
unsupported devices as soon as possible, to move sensitive data to a
supported device and not to use them for tasks like accessing bank and other
sensitive accounts," an NCSC spokesperson told the BBC.

"They should also consider accessing email from a different device."

What about for businesses?

Some companies rely heavily on applications that only work with Windows 7.

Businesses can pay Microsoft if they want to continue getting updates for
Windows 7 Professional or Windows 7 Enterprise.

The Windows 7 Extended Security Updates will be available until 2023 for
businesses of all sizes.

Charges range from $25 (£19) per device to $200 per device and increase each
year. The costs will mount quickly for organisations with lots of computers.

For businesses, it is not always easy to upgrade to a newer operating
system, Mr Ferguson said.

"There may be business-critical applications that will not run on newer
operating systems, or there may be significant costs associated with
upgrading those applications," he said.

Places like hospitals and factories may have equipment that is designed to
run exclusively on Windows 7.

"The user is not always able to upgrade without voiding the warranty," said
Mr Ferguson.--BBC

The billionaire retailer whose shops had no stock

The BBC's weekly The Boss series profiles different business leaders from
around the world. This week we speak to Brazilian retail billionaire Luiza
Trajano.

With inflation hitting a whopping 3,000%, and new currencies being
introduced and then quickly ditched, it was not easy to be a retailer in the
Brazil of the early 1990s.

That was the tough economic backdrop faced by Luiza Trajano, then 40, when
she took up the top job at her family's chain of shops selling home
electronics and household appliances in 1991.

The business, called Magazine Luiza, had a small chain in the southern state
of Sao Paulo. But Luiza had ambitious plans to expand nationwide. And she
had a cunning plan.

With inflation that high, and the Brazilian government introducing and then
abandoning no fewer than four different currencies between 1989 and 1994, it
would have been risky to start opening more large stores stocking the entire
range of products.

So Luiza decided to open a chain of micro shops that didn't stock anything.
Starting in 1992, customers would instead sit down at a computer terminal,
and browse a computerised catalogue of all the items on sale. They would
then order what they wanted, and Magazine Luiza would deliver it to their
homes from a network of nationwide distribution depots.

It was a precursor to online sales, from a time before Brazil got the
internet - access to the net only became available to consumers in Brazil in
1997.

In addition to enabling Magazine Luiza to quickly and cheaply expand, the
small "electronic shops" also meant that the company didn't have to keep
printing out new physical price labels in response to inflation or a new
currency. It just had to update the prices on its computer system.

Looking back, Luiza, who is now 68, says: "It was a big revolution, we
introduced a new way of virtual sales. It prepared us for the internet
before anyone else."

She says that she also made sure that the company put a lot of effort into
explaining the expansion plans to staff, to ensure that they were happy and
motivated, and therefore offering good customer service.

"We did intense work with our team, explaining our targets and how we need
everyone. We were very transparent with how they played an important role in
this new movement."

Within three years Magazine Luiza had a few hundred of its shops across
Brazil, with some large cities having as many as 58 outlets. Today the
company has more than 1,000 stores across Brazil and 30,000 employees.
Meanwhile, its website accounts for 48% of sales and it has total annual
revenues of 19.7bn real ($4.9bn; £3.7bn).

The success of the business has made Luiza one of the richest people in
Brazil. Her net worth is $3.5bn (£2.7bn), according to Forbes magazine.

The first Magazine Luiza shop was opened in 1957 by Luiza's aunt and uncle,
in her home city of Franca, 400km (250 miles) north of the city of Sao
Paulo, The word "magazine" was chosen as a variation of the French word for
shop, "magasin", while "Luiza" was also her aunt's first name.

Luiza started helping her aunt and uncle at the shop from the age of 12,
working in the afternoon and early evening after she had finished school. "I
was a saleswoman, and it was still a very small shop [at the time]," she
says. "I loved the experience, and it was a success."

When Luiza went to university to study law, she still made time to work at
the shop. And after graduating she joined the family business full-time.

Over the next two decades she filled a number of increasingly senior roles,
before coming chief executive in 1991, as her uncle and aunt stepped back
from the day-to-day running of the business.

Another innovation Luiza introduced was opening the stores very early in the
morning during sales periods. This might have long been common practice in
the UK and North America, but in 1990s Brazil it was a novel development.

"We opened the shops at 5am, something that we had never seen before in
Brazil." she says. "Other retail shops started to do the same."

Today the company is one of the largest retailers in Brazil. With almost
half of sales now coming online, the small non-stock shops have been
replaced over the years with larger ones that do have some or all products
there to take away. The focus on staff happiness remains though, and
Magazine Luiza consistently tops the list of the best Brazilian retail
companies to work for.

"We have been in first place since 2006," she says. "It is one of my
greatest joys after all these years."

While she has no plans to retire, in 2016 Luiza passed the chief executive
role over to her son Frederico, while she switched to chairwoman.

When not helping to lead the company she gives regular talks on
entrepreneurship. Luiza also helps runs an organisation that promotes women
in business, health and education. This body, which she created in 2013, is
called the Brazilian Women Group and now has more than 4,000 members.

Fernando Blanco, a professor at EOLAS Business School in Sao Paulo, says
Luiza is "an icon among entrepreneurs and also an inspiring speaker".

"So it is not hard to imagine her power to motivate the commercial team at
Magazine Luiza."

Looking back on Brazil in the 1990s, Luiza says that the country "will
always face crises", and that companies just have to make the best of
things.

"Many people believe I'm optimistic," she says. "But the truth is that my
mind is always focused on the solution. Complaining won't solve the problem,
we have to focus on the solution."

She adds that whatever the economic backdrop "there are two things in common
in companies that are a success - customer service and innovation".-BBC

Weak November weighs on UK growth

The UK's economy grew by just 0.1% in the three months to November,
according to the Office for National Statistics.

Growth was slightly stronger in September and October than previously
thought, but fell 0.3% in November, dragging down the three-month figure.

The ONS said growth in the economy year-on-year was at its lowest since the
spring of 2012.

Growth in construction was offset by a weakening service sector, while
manufacturing was "lacklustre".

The figures come amid growing speculation that the Bank of England's
Monetary Policy Committee (MPC) may be preparing to cut interest rates
sooner rather than later.

The pound dropped 0.6% in early trading on Monday after one of the Bank's
policymakers, Gertjan Vlieghe, said he would vote for an interest rate cut
this month unless economic data showed good progress for the UK.

What happened in the three-month period?

The figure of 0.1% growth was better than expected, said analysts.

ONS head of GDP Rob Kent-Smith said: "Overall, the economy grew slightly in
the latest three months, with growth in construction pulled back by
weakening services and another lacklustre performance from manufacturing.

"The UK economy grew slightly more strongly in September and October than
was previously estimated, with later data painting a healthier picture."

The revised ONS figures now show growth of 0.1% in each of those two months.

What happened in November?

In the month of November, GDP fell by 0.3%, which was worse than expected.

The ONS said the November decline was driven by falls in both services and
production.

"In the month of November, growth in services was -0.3%, following an
upwardly revised growth of 0.3% in October 2019," it added.

"Small increases across a small number of industries were more than offset
by relatively large falls in several other industries, most notably
scientific research and development, and wholesale trade, which each took
0.07 percentage points off monthly gross domestic product (GDP) growth."

What other economic data came out on Monday?

In other ONS releases, the UK's trade deficit widened by £9.1bn to £36bn in
the 12 months to November 2019, mainly because of the trade in goods
deficit, which increased by £7.4bn to £143.9bn.

The trade in services surplus narrowed £1.7bn to £107.9bn in the same
period.

What are commentators saying?

"Today's data confirmed that the UK economy remained in the doldrums last
autumn," said John Hawksworth, chief economist at PwC.

"All of this data, however, relates to a period of heightened economic and
political uncertainty last autumn due to Brexit and the general election.

"It is too early to say for sure if economic momentum will pick up in the
new year now the political situation is clearer, but our latest survey of
the financial services sector with the CBI does suggest some boost to
optimism since the election."

Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said: "The
latest GDP data are nowhere near as horrendous as they appear initially. The
sharp fall in November has followed upwardly revised growth in the previous
two months.

"In addition, nearly all of November's fall in GDP was attributable to
temporary weakness in the manufacturing and distribution sectors."

And what about the political reaction?

Chancellor Sajid Javid said: "Uncertainty has held our economy back for too
long. We are getting Brexit done so we can move on and chart a new course
for our economy.

"In my Budget on 11 March, we will lay the foundations for a decade of
renewal that will unleash Britain's potential by levelling up across our
great country."

Shadow chancellor John McDonnell said: "After a decade of decay in our
public services, this is yet more evidence that weak growth is continuing
under the Tories.

"Our production sector and manufacturing growth are suffering as a result of
ongoing Tory mismanagement and incompetence.

"Labour will continue to hold the government to account for its disastrous
economic record and fight for the investment that is needed to restore
public services and tackle the climate emergency."

However you look on the latest economic numbers, they aren't strong. You can
be certain they're weak - economic growth of 0.1% in the three months from
the start of September to the end of November is no-one's idea of a stellar
economic performance.

And on the less certain but more recent one-month figures, they're worrying.
These initial estimates (often later revised) suggest the economy shrank by
0.3% in November. Manufacturing was down 1.7% and services also fell, by
0.43%. If you compare November with a year before, growth was just 0.6%.

Set against these figures - which hark back to a long-forgotten time before
the general election - are more recent numbers showing business confidence
increasing since the election. Political uncertainty held the economy back,
so the story goes, and now that's behind us, there will be no stopping us.

However, optimism is one thing: to rekindle the business investment that has
been so sorely lacking in recent months (and years) there also needs to be
much greater certainty, not just about who is in government, but about trade
arrangements with our biggest trading partner and the rest of the
world.--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> 

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been compiled from sources believed to be reliable, but no representation or
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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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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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