Major International Business Headlines Brief::: 15 January 2020

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Major International Business Headlines Brief::: 15 January 2020

 


 

 


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ü  Reprieve for S.Africa's Old Mutual as court rules against fired CEO

ü  Nigeria seeks to boost revenue, support small firms with new finance law

ü  Woolworths names U.S. fashion executive Roy Bagattini new CEO, shares
jump

ü  Kenya's president urges the central bank to prevent predatory lending

ü  London court orders Djibouti to restore DP World's rights over Doraleh
port - WAM

ü  Lekoil shares plunge as investigation into loan scam begins

ü  South Africa's mining industry calls for action to end power crisis

ü  Morocco growth to rise to 3.5% in 2020-planning agency

ü  Nigeria's central bank reschedules monetary policy committee meeting

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

ü  Flybe: Government strikes a deal to rescue troubled airline

ü  Huawei: 'No smoking gun' in US's 5G dossier

ü  Climate change to drive 'massive' investment shift

ü  BHS: Dominic Chappell ordered to pay £9.5m into pension schemes

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Reprieve for S.Africa's Old Mutual as court rules against fired CEO

JOHANNESBURG (Reuters) - A South African High Court ruled on Tuesday that
Old Mutual does not have to reinstate its sacked chief executive Peter Moyo,
a shift in legal fortunes for the country’s No.2 insurer that drove its
shares up more than 5%.

 

Old Mutual has been locked in a dispute with Moyo since it suspended him in
May 2019 over an alleged conflict of interest. He was fired the following
month then temporarily reinstated by the courts in July in a ruling that
blocked the insurer from seeking a replacement.

 

Tuesday’s ruling marks the first significant court victory for the group
after a series of embarrassing losses that have rocked confidence in one of
South Africa’s oldest companies and knocked over 10% off its share price.

 

The written judgement said that the interim order temporarily reinstating
Moyo should not have been granted in the first place. “The irreparable harm
which Old Mutual... its shareholders, employees and other stakeholders stand
to suffer if the interim interdict is allowed to stand, requires no
imagination or elucidation,” it said. Moyo said in a statement he was still
studying the judgement but added there was a “very, very good chance that we
are actually going to appeal”.

 

His lawyer said he would proceed with a longer case against his dismissal,
in which Moyo is seeking permanent reinstatement or damages. Tuesday’s court
decision means Old Mutual will not be forced, for now, to work with a CEO
whose reinstatement it has repeatedly said is “untenable”.

 

A spokeswoman for Old Mutual said it was vindicated, and the board was now
mandated to seek a new CEO.

 

Its shares rose more than 5% after the ruling, and were still up 3.51% at
1011 GMT.

 

CREDIBILITY

Some shareholders were concerned that Moyo’s dismissal was sloppily handled
and that the drawn-out public battle was distracting from day-to-day
operations.

 

Jacques Plaut, portfolio manager at Allan Gray - Old Mutual’s second largest
shareholder - said he was pleased with the result, though he expected the
market to have priced in a positive outcome for the insurer.

 

“This is good for the company and for governance in South Africa,” he said.

 

While it is not the end of the road legally for Moyo, who said he could
indicate whether he intends to appeal within the next few days, it is a blow
to his case.

 

He will also have to seek leave to appeal from the Supreme Court of Appeal.

 

Warwick Bam, analyst at Avior Capital Markets, said the decision gives some
credibility to Old Mutual’s board and its handling of Moyo’s dismissal and
the subsequent fallout, which in turn eases any concerns of further
departures at the top.

 

“[Old Mutual] can now quite confidently go ahead and start putting...
strategic actions into place without being concerned that Peter Moyo may
still have a hand in the business,” he added.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


Nigeria seeks to boost revenue, support small firms with new finance law

LAGOS (Reuters) - Nigerian President Muhammadu Buhari has signed into law a
new bill that seeks to boost government revenue through a rise in the
value-added tax rate while at the same time supporting small businesses in
Africa’s biggest economy.

 

Nigeria has been trying to boost tax income as part of efforts to diversify
its economy to reduce dependence on sales of crude oil.

 

But raising more money from taxes has proved difficult in a country where
most small businesses are not registered. The government has repeatedly said
it wants to boost non-oil revenue since oil sales make up 90% of
foreign-exchange receipts.

 

Under the finance bill signed into law on Monday, VAT rates will rise from
5% to 7.5%, which is still one of the lowest rates in the world.

 

The bill, passed by parliament last year together with the record 2020
budget of 10.59 trillion naira ($34.6 billion), aims to help lift Nigeria’s
economy from low growth following a recession four years ago.

 

Under the new law, the government will introduce a graduated tax scale for
small businesses, with firms that generate less than 25 million naira
($70,000) in annual turnover exempt from corporate tax.

 

Tax experts say the finance bill will seek to tax companies with digital
activities that have significant presence in Nigeria and generate profits.

 

The government hopes the new bill will help to reform its domestic tax laws
and provide incentives for investments in infrastructure and the capital
markets while supporting small businesses.

 

Nigerian Stock Exchange chief Oscar Onyema said on Monday he expects the new
bill and 2020 budget implementation to have a positive impact on corporate
earnings and consumer spending.

 

So far, stocks are up 9.6% in the first seven days of trading in 2020,
thanks to higher oil prices and gains in Nigeria’s second-biggest listed
firm, MTN Nigeria.

 

($1 = 305.95 naira)

 

 

 

Woolworths names U.S. fashion executive Roy Bagattini new CEO, shares jump

JOHANNESBURG (Reuters) - South Africa’s Woolworths Holdings has appointed
Levi Strauss executive Roy Bagattini as CEO, cheering investors keen for a
fresh pair of hands to tackle the department chain’s struggling Australian
business.

 

He replaces Ian Moir, who will step down in February after nine years at the
helm during which he oversaw the group’s digital transformation and paid a
big premium to bulk up in Australia via retailer David Jones.

 

Moir’s departure was widely anticipated by industry analysts as his $2
billion acquisition in 2014 of David Jones has weighed on the group which
has had to write down its value twice and pump in millions of dollars to
refurbish its Elizabeth Street store, disrupting sales.

 

Bagattini, 56, previously served as Levi Strauss’ APAC, Middle-East and
Africa president and also worked for Denmark-based beer producer Carlsberg
and South African-founded brewing and beverage firm SABMiller.

 

Woolworths shares jumped more than 9% on news of his appointment.

 

Investors often cited that Moir overpaid for David Jones “and when it wasn’t
working he continued to invest in it”, Sasfin Wealth senior equity analyst
Alec Abraham said.

 

“You’ve got fresh eyes with no vested interest in any particular region or
business that can arguably have an objective review of the business and make
objective decisions on where it should be going in future,” he said.

 

David Jones has been struggling with subdued consumer spending in a slowing
Australian economy and pressures faced by department store operators as
shoppers switch to online players such as Amazon.com Inc or fast fashion
brick-and-mortar stores like Inditex’s Zara.

 

“Roy has extensive operational, management and turnaround experience in
global consumer and retail markets, which will prove invaluable as we
continue to navigate the structural changes taking place in the retail
sector and the challenges particular to our group,” Woolworths Chairman
Hubert Brody said.

 

Moir will work closely with Bagattini to facilitate a transition and will
continue in his role as acting CEO of David Jones, the company said.

 

 

($1 = 14.4425 rand)

 

($1 = 1.4507 Australian dollars)

 

 

 

Kenya's president urges the central bank to prevent predatory lending

NAIROBI (Reuters) - Kenya’s president Uhuru Kenyatta urged the central bank
on Tuesday to use all its tools to prevent predatory lending and to boost
affordable credit especially to small and medium enterprises.

 

“This sector is indeed the lifeblood of our economy,” he said in a televised
address.

 

 

 

 

London court orders Djibouti to restore DP World's rights over Doraleh port
- WAM

DUBAI (Reuters) - A London arbitration court has ordered Djibouti to restore
DP World’s right to operate the Doraleh Container Terminal as detailed under
a 2006 concession deal within two months or pay damages, the state news
agency WAM reported on Tuesday.

 

The government of Djibouti seized the terminal from Dubai
government-controlled DP World in February 2018 over a dispute dating back
to at least 2012.

 

An independent expert has estimated the losses to DP World at more than $1
billion, WAM reported.

 

 

 

Lekoil shares plunge as investigation into loan scam begins

LAGOS (Reuters) - Shares in Nigerian oil company Lekoil fell more than 70%
on Tuesday following a suspension of trading after the firm discovered that
a $184 million loan it had announced was fraudulent.

 

Shares reopened at 2.50 pence on the London Stock Exchange on Tuesday - down
from a closing price of 9.40 pence on Friday. They were down 69% at 2.90
pence at 1134 GMT.

 

Lekoil suspended trading of its shares on the London bourse on Monday after
finding that a $184 million loan it had announced from the Qatar Investment
Authority was a “complex facade” by individuals pretending to represent the
QIA.[nL8N29I6D6]

 

The audacious scam casts doubt on Nigeria’s hopes that its indigenous oil
and gas producers can rise up to fill the gap left by international oil
majors such as ExxonMobil and Chevron, which are trying to sell Nigerian
assets to focus on projects elsewhere. [nL8N27D2HC][nL8N2815TM]

 

The supposed loan, arranged by a company called Seawave Invest Limited, was
intended to develop the Ogo field within Oil Prospecting Licence 310.

 

Lekoil is now scrambling to find nearly $40 million by next month or it
could be forced to sell its 17.14% stake in OPL 310.

 

Lekoil has a $10 million payment due next month to Optimum Petroleum
Development Company Limited related to the license, and also must prove by
next month that it can raise the $28 million required to fund its portion of
appraisal well drilling for OPL 310.

 

A source close to the company said it could also defer some obligations with
a view to focus on raising financing for the appraisal well drilling.

 

$600,000 PAYMENT

Lekoil said it had paid Seawave $600,000 for brokering the fraudulent loan.

 

 

Reached by phone, Seawave, a Bahamas-based independent consultancy firm that
focuses solely on Africa, provided Reuters with the email address of a
lawyer who could provide comment; the lawyer did not respond to an email.

 

After the deal was announced on Jan. 2, the company’s shares more than
doubled to a high above 11 pence per share.

 

Lekoil said it would contact the relevant authorities “across a number of
jurisdictions” immediately to investigate what had happened.

 

It also said company board members Mark Simmonds - Britain’s Africa minister
under ex-prime minister David Cameron - and Tony Hawkins would lead its own
investigation into the loan, take steps to claw back the money paid to
Seawave and look into its “wider corporate governance practices”.

 

Simmonds and Hawkins both joined as independent non-executive directors
after the deal was agreed.

 

Typically, a publicly listed company is obliged to disclose potentially
market-moving information in a timely fashion.

 

Lekoil has said the Qatar Investment Authority got in touch with the firm on
Jan. 12. A source familiar with the developments said on Monday the QIA
first found out about the loan when Lekoil issued the statement on Jan. 2,
and that it contacted Lekoil immediately to tell it that the loan was not
legitimate. [nL8N29I6D6]

 

Discussions about the loan took place, in part, in Qatar, a source close to
the negotiations told Reuters, while Lekoil also has an office in Princeton,
New Jersey.

 

Britain’s Financial Conduct Authority declined to comment on the case in any
way - and would not say whether it would investigate the circumstances
surrounding the loan fraud.

 

A spokeswoman for the London Stock Exchange said the organisation does not
comment on individual companies.

 

 

 

South Africa's mining industry calls for action to end power crisis

JOHANNESBURG (Reuters) - South Africa’s mining industry body on Monday urged
the government to bring on stream new private sector power sources to ease
the power crisis that has pushed the country to the brink of recession.

 

Struggling state-owned utility Eskom was forced to implement power cuts
across the country last year and also last week even though many businesses
and factories were closed for the holidays.

 

The power cuts have piled pressure on President Cyril Ramaphosa, who came to
power with a pledge to revive investor confidence and boost economic growth.

 

The Minerals Council South Africa said the insecurity in power supplies plus
rapidly increasing costs were at the forefront of the constraints on the
economy and mining industry.

 

The Council said in a statement ahead of a meeting with Ramaphosa and other
government leaders: “The government and Eskom should be contracting in, at
the least cost possible, any extra renewable energy from existing wind and
solar plant that are sitting idle.”

 

The industry body also said the government should tackle red tape, which is
holding up significant additional power that could be brought on stream to
bridge the gap.

 

Last month, mines across South Africa shut down after flash flooding
triggered the most severe power blackouts in more than a decade, threatening
a key export sector for the country.

 

The mining industry contributed 351 billion rand ($24.34 billion) to the
South African economy in 2018, the Minerals Council has said, equating to
about 7% of gross domestic product (GDP).

 

Eskom supplies more than 90% of South Africa’s power, but its creaking fleet
of coal-fired plants have struggled to meet electricity demand.

 

Executives of the power utility have blamed a lack of critical mid-life
maintenance under previous management and analysts say the government needs
to procure more generating capacity fast.

 

Last month, the energy ministry published a document requesting information
from the power industry on options for between 2,000 MW and 3,000 MW of new
capacity at the lowest cost.

 

The industry is due to respond by the end of January and present options
that could be connected to the grid within three to six months or six to 12
months, if they are selected in a procurement process, the document showed.

 

“Eskom requires urgent reforms and restructuring to materially improve
maintenance, improve plant reliability and to get costs under control,” the
Minerals Council said.

 

($1 = 14.4203 rand)

 

 

 

Morocco growth to rise to 3.5% in 2020-planning agency

RABAT (Reuters) - Morocco’s official planning agency forecast economic
growth would rise to 3.5% in 2020 from 2.3% last year, though it noted the
vulnerability of the key agricultural sector to variable rainfall.

 

It said on Tuesday its forecast was based on the assumption of an average
crop yield, as well as a rise in exports and government measures to raise
tax revenue and investment.

 

 

 

Nigeria's central bank reschedules monetary policy committee meeting

LONDON (Reuters) - Nigeria’s central bank has rescheduled its first monetary
policy committee meeting of 2020 to Jan. 23 and 24, it said in a tweet on
Monday.

 

The meeting was originally scheduled for Jan. 20 and 21.

 

“The CBN (Central Bank of Nigeria) regrets any inconvenience this change may
have caused its stakeholders and the general public,” the bank said in a
tweet.

 

It did not give a reason for the change. A central bank spokesman declined
to respond via text message on the reason for the change.

 

 

The central bank has held its benchmark interest rate at 13.5% since cutting
it from 14% last March in a surprise moved aimed at stimulating growth and
signalling a new direction. It was the first rate cut since November 2015,

 

Central bank Governor Godwin Emefiele in November said he expected the bank
to maintain its stable exchange rate policy in the medium term and keep
monetary policy tight in 2020 to combat inflation. [nL8N28A0OT]

 

Annual inflation in November stood at 11.85%, the highest rate since April
2018. Economists say Nigeria’s closure of parts of its borders since August
to fight smuggling of rice and other goods has exacerbated inflation.

 

 

 

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.

 

 

 

Flybe: Government strikes a deal to rescue troubled airline

The government has agreed a rescue plan for troubled regional airline Flybe.

 

Ministers agreed to work with Flybe to figure out a repayment plan for a
significant tax debt that is thought to top £100m.

 

Meanwhile, the firm's owners have agreed to pump more money into the
loss-making airline.

 

Business Secretary Andrea Leadsom said the deal would keep the company
operating.

 

That will be a relief to many of the eight million passengers who fly with
the airline each year.

 

Flybe services dozens of UK domestic routes that are not flown by other
airlines, making it the largest carrier to fly out of some regional airports
like Newquay.

 

"Flybe plays a critical and unique role in the UK aviation system,
supporting the development of the regions, providing essential connectivity
to businesses and stimulating the growth in trade," the boss of the Airport
Operators Association, Karen Dee, said in a statement welcoming the rescue
deal.

 

As part of the agreement, Flybe's shareholders, which include Virgin
Atlantic and Stobart Group, have agreed to put more money into the business.

 

The government has promised to review the £26 air passenger duty that is
levied on domestic UK return fights, which has added to the airline's
losses.

 

Why Flybe matters

'I would be devastated if it went under'

'Very encouraged'

"Delighted that we have reached agreement with Flybe's shareholders to keep
the company operating, ensuring that UK regions remain connected," Ms
Leadsom tweeted.

 

"This will be welcome news for Flybe's staff, customers and creditors and we
will continue the hard work to ensure a sustainable future."

 

Lucien Farrell, the chairman of Connect Airways - which owns Flybe - said
the group had agreed to "keep Flybe flying with additional funding alongside
government initiatives".

 

"We are very encouraged with recent developments, especially the
government's recognition of the importance of Flybe to communities and
businesses across the UK and the desire to strengthen regional
connectivity," he said.

 

Urgent review

Transport Secretary Grant Shapps said the government had worked closely with
Flybe to ensure its planes were able to continue flying.

 

He said the Department for Transport would conduct an urgent review that
will seek to assess how it can improve regional connectivity and ensure
airports continue to function across the country.

 

But the prospect of cutting taxes on flying has angered climate activists
who argue that flying is the most carbon intensive mode of transport.

 

Green Party MP Caroline Lucas said reducing air passenger duty was "utterly
inconsistent with any serious commitment" to tackle climate change.

 

"Domestic flights need to be reduced, not made cheaper," she wrote on
Twitter.

 

But the government has said the review of the tax will be consistent with
its zero carbon targets.

 

The British Airline Pilots Association, a union, welcomed the news.

 

"This is good news for 2,400 Flybe staff whose jobs are secured and regional
communities who would have lost their air connectivity without Flybe,"
general secretary, Brian Strutton said in a statement.

 

Flybe, which flies to 170 different destinations, has been struggling under
the weight of an estimated £106m bill for air passenger duty as well as a
slowdown in demand that has hurt the airline's finances.

 

The carrier's boss, Mark Anderson, said: "This is a positive outcome for the
UK and will allow us to focus on delivering for our customers and planning
for the future.

 

"Flybe is made up of an incredible team of people, serving millions of loyal
customers who rely on the vital regional connectivity that we provide."--BBC

 

 

 

Huawei: 'No smoking gun' in US's 5G dossier

The decision over whether or not to allow Chinese company Huawei to build 5G
telecoms infrastructure has been much delayed and much agonised over.

 

Leaks cost one cabinet minister his job and the matter has divided the US
and UK, two allies who are normally tightly bound on security issues.

 

The difficulty comes because it may well be one of the most consequential
decisions that this government has to take. It involves conflicting
interests that cannot easily be squared and future technological risks that
cannot easily be predicted.

 

Sensing that the government may be heading towards allowing Huawei to
operate in "non-sensitive" parts of the UK 5G network, Washington has
intensified its lobbying campaign for the company's exclusion.

 

A delegation of senior US officials met with UK counterparts and ministers
on Monday and presented a "dossier" of information claiming Huawei poses a
national security risk.

 

The US has long contended that allowing Huawei to play a role in
infrastructure poses a risk of espionage. Increasing amounts of sensitive
personal data will be carried via 5G, including areas like telemedicine.
Likewise, the networks will carry more and more machine-to-machine
communications, which could expose the activities of business and other
organisations, or be interfered with to cause chaos.

 

Washington has also warned of the risk of sabotage or coercion, asking what
happens when an interconnected smart city, including its transport system,
is run by a Chinese company.

 

Sources say the dossier included material about the company's links to the
Chinese state - claiming, for instance, that there were serving Chinese
intelligence officials who worked for the company and that it received state
subsidies through the People's Liberation Army.

 

There were also allegations of Huawei's role in surveillance within China
and of its technology being used to help autocratic governments in Africa
spy on opposition figures.

 

The company itself has always denied many of the claims and said it was
"confident that the UK government will make a decision based upon evidence,
as opposed to unsubstantiated allegations".

 

Protected core

The most scrutinised section of the dossier was its technical section.

 

It challenged the UK's assessment that it could mitigate any risks by
keeping Huawei out of the sensitive parts of the network known as its
"core". This is where tasks such as checking device IDs, billing and
deciding how to route voice and data takes place.

 

Huawei feels 'bite of winter' after Trump ban

Could Huawei threaten the Five Eyes alliance?

Huawei's 'shoddy' work prompts talk of a Westminster ban

Those who want Huawei excluded argue that as 5G evolves, the current
distinction between its core and non-core parts will be lost.

 

However, UK intelligence officials believe it is possible to design a system
architecture in which a larger number of cores are protected from
interference.

 

They have been working with Huawei for over a decade, and believe they have
a much better understanding of the real picture. In fact, some of the
material the US supplied in its dossier was actually derived from the UK's
own evaluation centre which tests Huawei products.

 

Overall, there was a feeling in London that Washington had failed to produce
a smoking gun or anything substantially new.

 

Former Australian Prime Minister Malcolm Turnbull has commented that: "The
real question is not looking for a smoking gun but asking whether this is a
loaded gun and whether you want to have that risk."

 

But it seems that the result has been that London's position has not
appeared to have moved as it approaches decision day.

 

Security officials continue to believe they can manage the technical risks
but acknowledge there are wider factors in play.

 

Those include the risk of a diplomatic fall-out with either Beijing or
Washington, depending on the decision. That in turn would have implications
for trade-deals and investment post-Brexit.

 

Huawei has invested huge sums into research to gain an edge over its 5G
infrastructure rivals - Nokia, Ericsson and Samsung

The UK government is also keenly aware of the economic price of excluding
Huawei.

 

Many of the telecoms vendors want to use its equipment because they say it
best suits their needs. Moreover they have already started deploying it.

 

Ripping it out now would cost billions and, it's claimed, slow down the
country's shift to a more connected future.

 

US officials counter that it will be even more expensive to remove Huawei's
equipment when people come to understand its dangers.

 

Washington's case has been aided by growing concerns about how Beijing is
using its power at home and abroad. Even so, UK officials maintain their
plans take account of worst-case scenarios concerning what can done through
Huawei's equipment.

 

Spy secrets

If the decision does go against Washington, what will it do? The President
and Congress are said to be watching closely.

 

Much has been made of claims that intelligence sharing could be restricted.

 

There has been no explicit threat. Instead the language has been more
nuanced - talk of reviews to make sure that no sensitive information could
be compromised, and steps to make sure sensitive intelligence would be
transmitted by other means than 5G.

 

The head of MI5 has said he does not believe intelligence would dry up. That
suggests UK officials think the US may be bluffing.

 

It is true though that the issue of China has introduced real tension into
the normally tight Five Eyes community. Australia has sided with the US over
Huawei, whilst Canada and New Zealand have been more equivocal.

 

The UK may well try and present its decision as a nuanced one - Huawei
allowed in but in a carefully controlled manner.

 

But not everyone can be kept happy. And even when the decision is made,
arguments over whether it was right or wrong will not end.--BBC

 

 

 

Climate change to drive 'massive' investment shift

Concerns about climate change will drive a "fundamental reshaping of
finance", one of the world's biggest money managers has said.

 

Larry Fink, who runs BlackRock, said the shift will happen "sooner than most
anticipate".

 

His company has announced "sustainable" versions of its traditional
investment options to meet demand from clients.

 

It has also said it would push firms to disclose more about a range of
issues, including climate commitments.

 

While markets have been slow to reflect the worries about climate change, Mr
Fink said the corporate world is now catching up.

 

"Awareness is rapidly changing, and I believe we are on the edge of a
fundamental reshaping of finance," he wrote in an annual letter to chief
executives.

 

"In the near future - and sooner than most anticipate - there will be a
significant reallocation of capital."

 

Can big investors save the world?

Polluting firms 'will be hit by climate policies'

In a letter to clients, BlackRock - which manages nearly $7tn in assets -
said it was taking a number of steps to respond to the investment risks
linked to climate change.

 

In addition to the sustainable funds, it said its investors would be able to
screen their portfolios for certain sectors.

 

For actively managed funds, the company also plans to sell its holdings of
companies that derive more than 25% of their revenue from thermal coal
production by mid-2020.

 

'Seriously consider sustainability'

Even if only 5% of investors opt for sustainable strategies, it will still
produce "massive shifts", Mr Fink said.

 

"The commitments we are making today reflect our conviction that all
investors - and particularly the millions of our clients who are saving for
long-term goals like retirement - must seriously consider sustainability in
their investments," he wrote in the letter to clients.

 

But, he added: "The choice remains with you".

 

The Sierra Club, an environmental group, said BlackRock's announcements were
a "major step in the right direction" that will put pressure on competitors
to take similar steps.

 

But the fund manager continues to hold sizable investments in coal, oil and
gas.

 

And the Sierra Club said it would be watching to see whether BlackRock
flexes its shareholder muscle in upcoming climate-related votes at the
companies it invests in.

 

"It is time to turn off the money pipeline to dirty fossil fuels for good,"
said Ben Cushing, the organisation's campaign representative.

 

"BlackRock should expand on its commitments and other financial institutions
should follow suit."

 

Mr Fink's letter puts a spotlight on a growing trend among investors who
worry about the industries they are funding.

 

Investments in some "sustainable" funds jumped to $20bn in 2019, nearly four
times the previous year's record, according to data from Morningstar.

 

In the US, assets managed with sustainable investing strategies now
represent more than a quarter of all investment assets under professional
management, according to estimates by the Global Sustainable Investment
Alliance.--BBC

 

 

 

BHS: Dominic Chappell ordered to pay £9.5m into pension schemes

Businessman Dominic Chappell has been ordered to pay £9.5m into the BHS
pension schemes after losing an appeal.

 

Mr Chappell bought the High Street chain from Sir Philip Green for £1 before
it closed down in 2016.

 

The Pensions Regulator (TPR) had issued Mr Chappell with two contribution
notices for the money, and his appeal against the payments was unsuccessful.

 

TPR's Nicola Parish said the case showed how the watchdog would use the
courts to help pension savers.

 

"It illustrates the situations our anti-avoidance powers were designed to
meet and which allow us to protect the retirement incomes that savers
deserve," she said.

 

It added that the decision meant the BHS pensions scandal was "coming to a
close", nearly four years after the company's closure.

 

The collapse of BHS cost 11,000 people their jobs and left a pension deficit
of more than £570m.

 

In 2018, Sir Philip agreed to put £363m in cash into the company's pension
schemes to keep them out of the Pensions Protection Fund.

 

Sir Philip owned BHS for 15 years before selling it to Mr Chappell.

 

When TPR served the initial notice against Mr Chappell, it concluded that a
series of acts were ""materially detrimental" to the pension schemes.

 

It said these included:

 

the acquisition of BHS

the appointment of inexperienced board members

an inadequate business plan

and the way money was extracted and distributed to Mr Chappell, advisers,
company directors and family members.

Last November, Mr Chappell, a former bankrupt, was banned from running a
company for 10 years by the Insolvency Service.

 

Later this year, he faces a trial over allegations of £500,000 of tax fraud,
which he denies.--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
the securities of more established companies. Neither Faith Capital nor any
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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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