Major International Business Headlines Brief::: 17 January 2020

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Major International Business Headlines Brief::: 17 January 2020

 


 

 


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

 


 

 


 

 

ü  South African central bank surprises with rate cut

ü  South Africa scours state coffers in bid to rescue SAA

ü  Sibanye cuts fewer jobs than planned in Marikana restructuring

ü  MTN Group appoints industry veteran Kyomukama as South Sudan CEO

ü  South Africa's Telkom could cut 3,000 jobs -letter to unions

ü  Firm linked to Nigerian oil firm Lekoil welcomes loan scam probe

ü  Mali's gold production rises 7% in 2019 to record high

ü  Kenyan shilling firms against dollar on back of remittances, investors
buying stocks

ü  Israel starts exporting natural gas to Egypt under landmark deal

ü  China's economic growth hits 30-year low

ü  Mukesh Ambani: Asia's richest man in $13bn ruling boost

ü  Microsoft makes 'carbon negative' pledge

ü  Flybe boss says government loan is not a bailout

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

South African central bank surprises with rate cut

PRETORIA (Reuters) - South Africa’s central bank unexpectedly cut its main
lending rate by 25 basis points to 6.25% on Thursday, providing a stimulus
to the flagging economy as it lowered its inflation forecasts significantly.

 

The rate cut was a unanimous decision and the first drop since July last
year.

 

The majority of analysts polled by Reuters had expected no change in rates
because of risks associated with a February budget speech and a scheduled
review of the country’s last investment-grade credit rating by Moody’s in
March.

 

South Africa’s public finances are under severe strain after repeated
bailouts to ailing state firms like power utility Eskom and a steep run-up
in public debt.

 

The South African Reserve Bank (SARB) painted a grim picture on the outlook
for economic growth, lowering its predictions for this year and next to 1.2%
and 1.6% respectively.

 

It called Africa’s most industrialised economy “weak” and “vulnerable” and
said electricity supply constraints would probably keep activity muted in
the near term.

 

Weak growth was a major reason why inflation remained under control last
year, with consumer price growth hitting a nine-year low in November.

 

The bank now sees inflation at 4.7% in 2020 and 4.6% in 2021, versus
forecasts for 5.1% and 4.7% previously.

 

“The lower inflation forecast and improved risk profile opens some space to
provide further policy accommodation to the economy,” SARB Governor Lesetja
Kganyago told a news conference.

 

The rand’s response to the rate cut was muted. It briefly weakened when
Kganyago announced the decision before recovering to trade flat on the day.

 

 

Some analysts were doubtful that Thursday’s policy easing would do much to
lift the growth rate, pointing to the need for meaningful economic reform.

 

“This cut is positive but one or even two cuts will not change things
significantly for the outlook for the economy,” said Magdalena Polan, global
emerging markets economist at Legal & General Investment Management.

 

President Cyril Ramaphosa has tried to revive investor confidence since
taking office in February 2018. He has had some success cracking down on
corruption, but his reform drive has been slowed by opposition within his
governing African National Congress party.

 

 

 


 <mailto:info at bulls.co.zw> 

 


South Africa scours state coffers in bid to rescue SAA

JOHANNESBURG (Reuters) - South Africa is scrambling to secure extra funding
to rescue South African Airways (SAA), which last month entered a form of
bankruptcy protection in a last-ditch bid to save the state-owned company
and around 10,000 related jobs.

 

Tito Mboweni, the country’s finance minister, told business leaders in
Johannesburg ahead of the World Economic Forum annual meeting in Davos next
week that the Treasury had provided “financial support to the best of our
abilities”.

 

“As of yesterday when I was speaking to the director-general of National
Treasury we were still trying to find additional financing for SAA. ...
Let’s keep our fingers crossed,” he said.

 

SAA was promised 2 billion rand ($139 million) from the government and
another 2 billion rand from lenders. But while the lenders paid up, the
Treasury has yet to establish a mechanism for identifying and dispersing its
share.

 

The airline is one of several state entities, including state power company
Eskom, struggling with debt after nearly a decade of mismanagement.

 

Their woes are seen as the single greatest threat to Africa’s most
industrialised economy and have been largely responsible for bringing South
Africa’s credit rating to the brink of junk.

 

Fearing another downgrade if it raises its deficit, South Africa’s finance
ministry has sought to fund SAA in a “fiscally neutral” manner, by selling
assets or cutting costs elsewhere.

 

The airline has put up for sale nine of its Airbus A340-300 and A340-600
aircraft as well as 15 spare engines, a tender document seeking proposals
from interested buyers seen by Reuters showed.

 

SAA said in a statement that the sale was to accommodate newer, recently
received, Airbus A350-900 aircraft.

 

Joint business rescue practitioners Les Matuson and Siviwe Dongwana, who are
overseeing SAA’s rescue effort, said any sale proceeds from the planes
“would not fall within the 2 billion rand funding requirement that is being
sought from government”.

 

TROUBLED TIMES

Stopping the rot at ailing state firms is seen as the biggest test of
President Cyril Ramaphosa’s commitment to economic reforms.

 

“The pace of structural reforms is not the way we want it to be, so we need
to speed it up to generate this impetus to economic growth,” Mboweni said.

 

But without cash, SAA could very quickly become insolvent.

 

A trade union official warned on Wednesday that SAA could be forced to
suspend some flights and delay salary payments if the government does not
pay up very soon.

 

The government’s treatment of SAA and whether it is willing to sacrifice
jobs will send a signal ahead of a much bigger battle with unions over
Eskom, which is struggling to keep the lights on.

 

Eskom’s chairman resigned last week after power cuts even during the
low-demand holiday season. The company is also fighting the regulator in
court over energy tariffs.

 

($1 = 14.4121 rand)

 

 

Sibanye cuts fewer jobs than planned in Marikana restructuring

JOHANNESBURG (Reuters) - South African miner Sibanye-Stillwater said on
Thursday it has concluded a consultation process that reduced the number of
proposed job cuts as it restructures the loss-making Marikana operations it
acquired last year.

 

In September, Sibanye said it planned to cut around 5,270 jobs, or about 6%
of its workforce, as part of a restructuring process aimed at returning the
mine to profit and protecting its remaining shafts.

 

The outcome of the consultation process saw about 1,612 employees granted
voluntary separation packages, another 1,142 retrenched and the number of
contractors reduced by 1,709. Another 53 workers left on normal retirement
terms and natural attrition accounted for 259 jobs, the miner said.

 

At 1354 GMT, the company’s shares were up 5.80% at 37.92 rand.

 

 

Sibanye also said it would keep operating one shaft that was at risk of
closure - Shaft 1B - provided that the project continued to be profitable
over a three-month average period, preserving 329 jobs.

 

Job losses were further reduced by identifying about 166 opportunities for
affected employees to be transferred to other operations, it added.

 

“We are pleased with the outcome of the consultations with stakeholders,
which despite the necessary closure of some end of life shafts, resulted in
the preservation of a number of jobs,” Sibanye-Stillwater Chief Executive
Officer Neal Froneman said.

 

“This will result in a more sustainable business which will secure
employment for the majority of the Marikana workforce for a much longer
period.”

 

 

Sibanye took over the mine in June as part of a deal to buy out struggling
platinum miner Lonmin. It first proposed buying Lonmin in 2017 in a deal
touted as the only way to save its 29,000-strong workforce.

 

Lonmin had previously planned to close shafts and cut around 12,600 jobs.

 

 

 

MTN Group appoints industry veteran Kyomukama as South Sudan CEO

JOHANNESBURG (Reuters) - South Africa’s MTN Group said on Thursday it had
appointed industry veteran Gordian Kyomukama as chief executive officer of
MTN South Sudan, effective Jan. 21.

 

Kyomukama has close to 30 years of experience in the telecoms sector, most
of it with MTN, the firm said in a statement.

 

He started in MTN Uganda as part of the operating company’s pioneer team and
has also undertaken secondments in Rwanda, Cameroon and Ivory Coast.

 

Prior to returning to Uganda, he was Chief Technology and Information
Officer (CTIO) of MTN Liberia.

 

Lily Zondo, who has been holding the fort as acting South Sudan CEO over the
past few months, will resume her role as MTN South Sudan Chief Financial
Officer with immediate effect, MTN Group CEO Rob Shuter said.

 

MTN Cameroon CEO, Hendrik Kasteel, will be leaving MTN at the end of March,
due to personal reasons, the telecoms firm said, adding he would serve out
his notice over the next two months and a successor would be announced when
finalised.

 

 

 

South Africa's Telkom could cut 3,000 jobs -letter to unions

JOHANNESBURG (Reuters) - South African telecoms company Telkom SA told
unions on Wednesday it could cut up to 3,000 of more than 15,000 staff as it
struggles with declining performance in fixed voice and fixed data services.

 

Like other African telecoms firms, Telkom, in which the government holds a
stake of about 40%, is trying to keep pace with a surge in demand for the
internet and data with growing smart phone usage.

 

It is also grappling with organisational and operational inefficiencies
linked to fixed voice and data services, which require more staff to
install, maintain and market, it said in a letter to unions seen by Reuters.

 

The telecom provider said it will consider voluntary severance and early
retirement packages for employees affected by phase one of the job cut,
which will affect employees at Openserve and the Consumer divisions from
January to April.

 

 

The affected jobs include support employees, specialist, operational
employees and supervisory and management levels in its wholesale division
Openserve, the consumer unit as well as in its corporate centre.

 

The announcement comes two days after retailer Massmart Holdings, majority
owned by U.S. retail giant Walmart, said it could cut up to 1,440 jobs under
a plan to close some stores as it struggles to grow sales in a tough
economy.

 

Telkom, which runs South Africa’s biggest fixed-line telecom network, is
migrating customers to mobile voice and data as well as fibre, where it is
one of the small players in a market dominated by Vodacom and MTN Group.

 

“The deterioration in the economic climate, increased operational,
regulatory and competitive constraints, coupled with continuing rapid
migration from fixed voice and data business have all had a major ongoing
negative operational and financial impact on Telkom,” it said.

 

“For Telkom to survive the current and anticipated tough trading conditions,
it is imperative to seek and implement measures which will drastically
reduce costs, eliminate inefficiencies and improve operational and financial
performance in the interest of securing its continued commercial viability
and employment for the majority of the employees.”

 

Telkom said it wants a leaner structure in its Openserve and group IT
division and a focused skills set in line with the new business demands of a
mobile focused business. While in consumer, the unit needs to be more market
driven and customer focused.

 

 

 

Firm linked to Nigerian oil firm Lekoil welcomes loan scam probe

LAGOS (Reuters) - A consultancy firm that allegedly arranged a fraudulent
$184 million loan announced by Nigerian oil company Lekoil Ltd said on
Wednesday that it welcomed an investigation into the matter.

 

Shares in Lekoil Ltd fell by more than 70% following a suspension of trading
after the firm discovered the loan was fraudulent.

 

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

 

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

 

The Nigerian oil company said it had paid $600,000 for brokering the
fraudulent loan, much of it to Seawave, which on its website describes
itself as an independent consultancy firm specialising in cross-border
transactions in Africa.

 

“Seawave Invest Ltd welcomes Lekoil’s investigation and will remain
available to the best of its abilities to assist,” the company said in
response to an emailed request from Reuters for a comment.

 

“Seawave Invest Ltd will not make any comments at this stage whilst awaiting
for the results of its own assessment and investigation of this matter,” it
said.

 

A person who answered the phone at Bahamas-based Seawave directed Reuters to
the law firm Holowesko Pyfrom Fletcher.

 

The law firm said in an emailed statement that the company “was and has
always been inactive” and was struck off by the Registrar of Companies for
default on Jan. 1. It said no one involved with Seawave had knowledge of or
involvement in the scheme.

 

 

 

Mali's gold production rises 7% in 2019 to record high

BAMAKO (Reuters) - Mali’s industrial gold production rose 7% in 2019 to a
record 65.1 tonnes, mines ministry statistics showed on Wednesday.

 

The increase was partly due to the launch of production at a mine owned by
Australia’s Resolute Mining, ministry official Mamadou Sidibe said.

 

The West African country’s total gold output last year was probably around
71.1 tonnes due to the additional 6 tonnes of gold that artisanal miners are
estimated to produce each year, Sidibe said.

 

Industrial production is expected to increase further in 2020, he said,
without giving further details.

 

 

Kenyan shilling firms against dollar on back of remittances, investors
buying stocks

NAIROBI (Reuters) - The Kenyan shilling firmed on Thursday supported by
inflows from remittances and offshore investors buying stocks amid thin
dollar demand from importers, traders said.

 

At 0828 GMT, commercial banks quoted the shilling at 100.95/101.15 per
dollar, compared with 101.10/30 at Wednesday’s close.

 

 

 

Israel starts exporting natural gas to Egypt under landmark deal

CAIRO/JERUSALEM (Reuters) - Israel began exporting natural gas to Egypt on
Wednesday under one of the most important deals to have been signed by the
neighbors since they made peace four decades ago.

 

A private firm in Egypt, Dolphinus Holdings, will purchase 85 billion cubic
meters (bcm) of gas, worth an estimated $19.5 billion, from Israel’s
Leviathan and Tamar offshore fields over 15 years.

 

Israeli Energy Minister Yuval Steinitz said the deal was “just the start” of
cooperation with Egypt.

 

Yossi Abu, CEO of Israel’s Delek Drilling, one of the partners in Leviathan
and Tamar, said the arrangement “marks a new era in the Middle East energy
sector”.

 

Israel will initially export 200 million cubic feet of gas per day to Egypt,
two Egyptian industry sources said. Gas from Leviathon will be supplied to
Dolphinus at a rate of 2.1 bcm per year, rising to 4.7 bcm per year by the
second half of 2022, according to Delek.

 

The gas is being supplied via a subsea pipeline connecting Israel and
Egypt’s Sinai peninsula, which Steinitz said had sufficient capacity for
current volumes, though the option of building a second pipeline was being
considered if demand from Egypt grew. Exports of Tamar gas to Dolphinus are
expected to start later this year.

 

Israeli officials have called the export of gas to Egypt the most
significant deal to emerge since the countries signed a historic peace
treaty in 1979.

 

“The fact that the three countries, Israel, Egypt and Jordan are now
collaborating together and are already connected with a regional gas
transmission system ... this is significant and it will contribute to peace
and security in the Middle East,” Steinitz told Reuters in an interview in
Cairo.

 

Jordan received its first supplies of Israeli gas at the start of the month.

 

ENERGY HUB PLAN

Egypt, which has boosted its own gas production in recent years, is hoping
the Israeli gas deal will help it become a regional energy hub, with some of
the gas expected to be re-exported to Europe through liquefied natural gas
(LNG) plants.

 

Israeli gas was not being sent to Egypt’s Idku LNG plant yet, but that could
happen “in a few months”, Steinitz said.

 

He also said Israel was talking to Egypt and India about exporting surplus
gas to Asia via the Suez canal, and that Egypt could in the future join
Israel, Cyprus and Greece in the recently signed EastMed gas pipeline
project.

 

Steinitz brushed off concerns over a maritime deal struck between Turkey and
Libya’s internationally recognised government in November, which is seen by
Greece and Cyprus as a hydrocarbons resource grab.

 

“Nobody can block the Mediterranean and nobody can own the Mediterranean ...
I don’t think this is a serious obstacle,” he said.

 

Egypt is currently exporting one billion cubic feet of gas to Europe every
month via 10 shipments, the country’s petroleum minister said in remarks
published on Wednesday.

 

Tarek El Molla also told El Watan newspaper that Egypt wanted to boost gas
shipments to Europe to 20 a month after restarting the Damietta LNG plant.

 

Damietta has been idled for years due to a lack of gas supply during a
dispute with Union Fenosa Gas (UFG), a joint venture between Spain’s Gas
Natural and Italy’s Eni.

 

Damietta is 80% owned by UFG, with the remaining 20% split evenly between
the state-owned Egyptian Natural Gas Holding Company and the Egyptian
General Petroleum Corporation.

 

Molla also said Egypt was planning a bidding round for oil drilling in the
western Mediterranean Sea and was in talks with Chevron, Exxon Mobile and
Total.

 

 

 

China's economic growth hits 30-year low

China's economy grew last year at the slowest pace in almost three decades.

 

Official figures show that the world's second largest economy expanded by
6.1% in 2019 from the year before - the worst figure in 29 years.

 

The country has faced weak domestic demand and the impact of the bitter
trade war with the US.

 

The government has been rolling out measures over the past two years in an
attempt to boost growth.

 

It comes after almost two years of trade tensions with the US - although
hopes of a better relationship with America have seen improvements in
manufacturing and business confidence data.

 

This week Washington and Beijing signed a "phase one" trade deal. However,
analysts remain unsure whether those recent gains will continue.

 

In response to the lower growth rate, Beijing is now widely expected to roll
out yet more stimulus measures.

 

The government has used a combination of measures aimed at easing the
slowdown, including tax cuts and allowing local governments to sell large
amounts of bonds to fund their infrastructure programmes.

 

The country's banks have also been encouraged to lend more, especially to
small firms. New loans in the local currency hit a record high of $2.44
trillion (£1.86tn) last year.

 

So far the economy has been slow to pick up, with investment growth falling
to record low levels.

 

Historically, China has seen much stronger economic expansion, with the
first decade of the 21st Century seeing double-digit percentage growth.

 

But - although that 6.1% growth rate is China's weakest expansion in almost
three decades - it is much higher than other leading economies.

 

The US central bank, for example, has forecast that the American economy
will grow by around 2.2% this year.

 

'The trade war may have actually helped the Chinese economy'

Analysis by Stephen McDonell, BBC China correspondent

 

For many countries, having the slowest GDP growth in three decades might
cause panic - but not in China.

 

Softening domestic demand and US tariffs have eaten into growth - but some
analysts argue that the trade war may have actually helped the Chinese
economy.

 

This 6.1% GDP figure for 2019 is not only within the government's target
range, but Chinese policy makers have for years been trying to gradually
step down expectations.

 

They're trying to break away from the years of unsustainable breakneck
growth which has trashed the natural environment and led to an explosion in
unserviceable debt.

 

The government has instigated some stimulus measures to make sure the steam
doesn't come out of the economy too quickly. But on bank loans, the crucial
question will be - who gets access to the loans?

 

Will it be those building the "bridge to nowhere" vanity projects which have
popped up in many regional cities?

 

Or will it be the promising new start-up enterprises which are seen as the
future of modern Chinese development?

 

As part of the phase one deal, China pledged to boost US imports by $200bn
above 2017 levels and strengthen intellectual property rules.

 

In exchange, the US agreed to halve some of the new tariffs it has imposed
on Chinese products.

 

Speaking in Washington, US President Donald Trump said the pact would be
"transformative" for the American economy.--BBC

 

 

 

Mukesh Ambani: Asia's richest man in $13bn ruling boost

Asia's richest man has scored two major wins in his ambition to dominate the
Indian telecoms market.

 

The main competitors to Mukesh Ambani's Reliance Jio have been told they
must pay the bulk of almost $13bn (£10bn) to the government in historical
fees.

 

The country's top court rejected calls from older firms, including Vodafone
Idea, to review the case.

 

Meanwhile, Reliance Jio has overtaken Vodafone Idea to become India's
biggest mobile services operator.

 

The court ruling adds yet more financial pressure on India's telecoms
sector, which has already been hit hard by a bitter price war.

 

After three years of price cutting, led by Mr Ambani, his company now has
only two major competitors - Bharti Airtel and Vodafone Idea.

 

Vodafone Idea has been told it must pay about $3.9bn, while the ruling means
Bharti Airtel is liable for $3bn. The charges relate to licence and spectrum
fees that have accumulated over many years.

 

Reliance Jio, which is less than four years old, owes just $2m.

 

Vodafone has previously said the situation was "critical", while Bharti
Airtel said an earlier court order cast doubt on "its ability to continue as
a going concern".

 

Telecoms analyst Minakshi Ghosh believes the Supreme Court ruling threatens
the future of Vodafone Idea, a joint venture of Britain's Vodafone and local
operator Idea Cellular.

 

She told the BBC: "Airtel, I think, would be under pressure, but would be
able to manage. The cause of concern will be Vodafone (Idea).

 

"Probably Vodafone will be the most affected and we will end up with a
duopoly of Airtel and Jio, which is not very good for the industry."

 

At the same time, new figures from the Telecom Regulatory Authority of India
showed Reliance Jio added more than 5.6m mobile subscribers in November.

 

That means it now has a total of almost 370m users, or more than 32% of the
market.

 

The subsidiary of Reliance Industries launched in September 2016 offering
cut-price phones and data plans.

 

Its entry into India's telecom sector triggered a major shake-up in the
sector which saw most of its competitors shut down or merge.--BBC

 

 

 

Microsoft makes 'carbon negative' pledge

Microsoft has pledged to remove "all of the carbon" from the environment
that it has emitted since the company was founded in 1975.

 

Chief executive Satya Nadella said he wanted to achieve the goal by 2050 .

 

To do so, the company aims to become "carbon negative" by 2030, removing
more carbon from the environment than it emits.

 

That goes beyond a pledge by its cloud-computing rival Amazon, which intends
to go "carbon neutral" by 2040.

 

"When it comes to carbon, neutrality is not enough," said Microsoft
president Brad Smith.

 

"The carbon in our atmosphere has created a blanket of gas that traps heat
and is changing the world's climate," he added in a blog.

 

"If we don't curb emissions, and temperatures continue to climb, science
tells us that the results will be catastrophic."

 

The company also announced it was setting up a $1bn (£765m) climate
innovation fund to develop carbon-tackling technologies.

 

Carbon neutral v carbon negative

When a business says it is carbon neutral, it aims to effectively add no
carbon to the atmosphere.

 

It can do this by:

 

§  balancing its emissions, for example by removing a tonne of carbon from
the atmosphere for every tonne it has produced

§  offsetting its emissions, for example by investing in projects that
reduce emissions elsewhere in the world

§  not releasing greenhouse gases in the first place, for example by
switching to renewable energy sources

§  Until now, most companies have focused on offsetting emissions to achieve
neutrality.

 

This often involves funding projects in developing economies to reduce
carbon emissions there, for example building hydroelectric power plants,
encouraging families to stop using wood-based stoves, and helping businesses
make use of solar power. These reductions are then deducted from the main
company's own output.

 

The result of this slows carbon emissions rather than reversing them.

 

To be carbon negative a company must actually remove more carbon from the
atmosphere than it emits.

 

Microsoft says it will do this using a range of carbon capture and storage
technologies.

 

The announcement was largely welcomed by environmentalists, who said it
showed Microsoft was thinking about the bigger climate change picture and
not just its own role.

 

"It's a hat trick of sustainability leadership," said Elizabeth Sturcken
from the Environmental Defence Fund.

 

"But to really shift the needle on climate change, we need 1,000 other
[companies] to follow-suit and turn rhetoric into action."

 

However, Greenpeace warned that Microsoft still needed to address its
ongoing relationship with oil and gas companies.

 

"While there is a lot to celebrate in Microsoft's announcement, a gaping
hole remains unaddressed: Microsoft's expanding efforts to help fossil fuel
companies drill more oil and gas with machine-learning and other AI
technologies," said senior campaigner Elizabeth Jardim.

 

British power plant promises to go carbon negative by 2030

Old oil rigs could become CO2 storage sites

Turning carbon dioxide into cash

Microsoft's plan is still more aggressive than those taken by other tech
firms, including Facebook, Google, Apple and Amazon, which have not made
"carbon negative" commitments.

 

How will Microsoft achieve its goal?

Microsoft has suggested a range of ways it could remove carbon from the
atmosphere, including:

 

o   seeding new forests and expanding existing ones

o   soil carbon sequestration - a process of putting carbon back into the
ground. This could be achieved by adding microbes and nutrients to parched
earth, which should have the added benefits of making the soil more fertile
and less susceptible to erosion

o   direct air capture - sucking carbon dioxide out of the atmosphere,
possibly by using large fans to move air through a filter that can remove
the gas

o   bio-energy with carbon capture - growing crops and then capturing the
CO2 they emit when, for example, they are burned to produce heat or
fermented to make fuels such as bioethanol. Negative emissions become
possible if the amount of CO2 stored as a result is greater than that
emitted during production, transport and use

Tech companies' manufacturing and data-processing centres create large
amounts of carbon dioxide.

 

By one estimate, the sector will account for up to 3.6% of the world's
greenhouse gas emissions this year, more than double the level in 2007. And
it has been forecast that in a worst-case scenario, this could grow to 14%
by 2040.

 

Microsoft has said it plans to halve emissions created directly by itself
and those involved in its supply chain by 2030.

 

One way the company intends to do this is by increasing the carbon fees it
charges its internal business groups.

 

Since 2012, Microsoft has forced its divisions to set budgets that take
account of the cost of emissions created through electricity use, business
travel and other activities.

 

Now that charge will incorporate indirect emissions such as those created by
customers using electricity to power the divisions' products.

 

And since Microsoft cannot avoid producing CO2 altogether, it will invest in
technologies to capture and store the gas to reduce the amount in the
atmosphere.

 

Mr Smith said this would involve tech "that doesn't fully exist today".

 

The firm added that its data centres and other facilities would use 100%
renewable energy by 2025.

 

How do Microsoft's plans compare to rivals?

Software-maker Intuit has also pledged to be carbon negative by 2030.

 

The Californian company has said it will reduce emissions by 50 times more
than its 2018 carbon footprint.

 

Amazon's Jeff Bezos announced in September 2019 that his company would be
carbon neutral by 2040.

 

His pledge included plans to buy 100,000 electric vehicles for the online
retailer's delivery fleet.

 

Google has launched a set of digital tools to allow cities to track and
reduce emissions. The search giant also offsets its own emissions by
investing in green projects.--BBC

 

 

Flybe boss says government loan is not a bailout

The boss of Flybe has confirmed the airline is in talks with the government
over a loan, but says the financial support would not constitute a bailout.

 

Mark Anderson told Flybe staff the firm had had a few "difficult days" this
week but it still had "a great future".

 

He said the company's turnaround plan had started to work and that with more
time it would be making a big profit.

 

Rival airlines have called for more details of the government's role in
helping Flybe to be made public.

 

They argue that support for the troubled regional carrier may contravene
competition rules.

 

Ryanair boss threatens legal action over Flybe

'Valuable connectivity': Why Flybe matters

Flybe to move Newquay-Heathrow flights to Gatwick

Mr Anderson, whose address to staff was also carried over videolink and has
been seen by the BBC, said the government recognised the airline's vital
role in connecting far flung parts of the UK and wanted to help the firm
thrive.

 

"We are in conversation with the government around a financial loan - a
loan, not a bailout - a commercial loan, but that is the same as any loan
we'd take from any bank," he said.

 

According to state aid rules the loan would need to either be short term and
aimed at rescuing and restructuring the business or it would have to be
provided on the same terms a private lender such as a bank would offer.

 

"The government will not lend if they do not believe there is a credible
plan. No-one is going to throw good money after bad," Mr Anderson said.

 

'More money needed'

Mr Anderson said he wanted to address speculation over the firm's future.

 

He said the company had had "legacy issues" to deal with that had not been
apparent to the group of investors led by Virgin Atlantic who bought the
airline early last year.

 

"Our shareholders invested an awful lot of money, believing they fully
understood the state of the business they'd bought," he said.

 

"The reality
 is that we were in worse shape than even the shareholders
thought we were.

 

"We went into the summer very unresilient in terms of our operation, with a
weak fleet, with a lot of gaps in terms of people flying our aircraft, with
huge payments being made to people to get them to work extra hours."

 

A combination of higher costs, late flights, and compensation for delayed
passengers meant the firm was losing money "hand over fist" for a time, he
said.

 

"Three-quarters of the money the shareholders invested was gone before we
even really started. That has hurt this business and more money is needed."

 

However, he said by the beginning of January Flybe's turnaround plan was
working, with sales ahead of expectations.

 

"We are in a vastly different place than where we were six months ago," he
said.

 

"We are not making millions of profit at the moment but if we stick to the
plan, and what we have to do, we will," he said.

 

He admitted this week's news coverage had dented sales but said he believed
customers would return quickly. But he said that there was a risk of a
"self-fulfilling prophesy" if people kept talking the company down.

 

Fair competition

On Thursday, the boss of rival carrier Ryanair described the government's
intervention to support Flybe as a "badly thought-out bailout of a
chronically loss-making airline".

 

Michael O'Leary, sent a strongly worded letter to Chancellor Sajid Javid in
which he argued any measures that were being put in place to help Flybe
should be extended to other airlines.

 

"We must be treated the same as Flybe if fair competition is to exist," he
wrote.

 

He said if that were not the case Ryanair would consider taking legal
action. British Airways' owner IAG has already filed a complaint with the
EU, arguing the rescue may breach state aid rules and has filed a Freedom of
Information request for more details about the plan.

 

The government has not published the details of what it has discussed with
Flybe, although it has said it is fully compliant with state aid rules.

 

The government's support is thought to centre on giving the airline extra
time to pay about £100m of outstanding Air Passenger Duty (APD).

 

Flybe's owners Richard Branson's Virgin Atlantic, Stobart Group and Cyrus
Capital have agreed to invest £30m into the airline.

 

Stobart Group said it would provide £9m of capital "with the funds drawn
down only if required".--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
constitute an offer to sell or the solicitation of an offer to buy or
subscribe for any securities. The information contained in this report has
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
the securities of more established companies. Neither Faith Capital nor any
other member of Bulls ‘n Bears nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
report shall be solely responsible for making their own independent
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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