Major International Business Headlines Brief::: 18 June 2020

[Bulls n Bears]

 <http://www.bulls.co.zw/> Bulls.co.zw
<mailto:info at bulls.co.zw?subject=View%20and%20Comments> Views & Comments
<http://www.bulls.co.zw/blog> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<https://chat.whatsapp.com/CF6wllAfScU9Wr6dXxoQnO> WhatsApp
<mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

 


 

 


Major International Business Headlines Brief::: 18 June 2020

 


 

 


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

 


 

 


 

 

ü  Tunisia's economy could shrink by as much as 7% this year

ü  Congo cuts 2020 economic growth forecast to -2.4%: cbank

ü  Sudan further opens gold trade to private sector

ü  Congo state can help mining firms affected by COVID-19 -minister

ü  EgyptAir seeking $185 mln from state banks to weather crisis

ü  South African Airways rescue would be costly, plan shows

ü  Acacia Mining employees released from Tanzania jail

ü  Ghana economy grows 4.9% y/y in first quarter, says stats office

ü  Nigeria's naira eases 6.2% against dollar on official window

ü  China's JD.com raises almost $4bn in Hong Kong share sale

ü  Why a recession can be a good time to start a business

ü  Facebook to let users turn off political adverts

ü  Apple accused of 'hostile' app fee policies

ü  US says a UK trade deal 'unlikely' before November

ü  Money printer hopes virus crisis boosts demand for fresh bank notes

ü  HSBC to press on with 35,000 job cuts

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


Tunisia's economy could shrink by as much as 7% this year

TUNIS (Reuters) - Tunisia’s economy could shrink by up to 7% this year
because of the effects of the COVID-19 pandemic, the investment minister
said on Wednesday.

 

The government ended all restrictions on movement and businesses this month
and will open its sea, land and air borders on June 27. However, the
pandemic is hammering the tourism sector, which contributes nearly 10% of
gross domestic product and is a key source of foreign currency.

 

The number of unemployed people in Tunisia will increase by 275,000,
according a government study in partnership with the United Nations,
investment minister Slim Azzabi said.

 

This would raise the unemployment rate to 21.1% in 2020, up from about 15%
at the start of the year.

 

The study expects the economy to shrink by 4.4%, but Azzabi said the figure
could rise as high as 6% or 7%.

 

Tourism revenue in the first five months of this year fell by about 50% from
the same period of 2019 as western tourists deserted Tunisia’s hotels and
resorts.

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Congo cuts 2020 economic growth forecast to -2.4%: cbank

(Reuters) - The Democratic Republic of Congo’s central bank on Wednesday
trimmed its economic growth forecast for 2020 to -2.4%, down from a previous
projection of -1.9%, due to the impact of the coronavirus.

 

“This contraction, which affected all sectors of activity, is mainly
explained by the measures of confinement of populations both internally and
externally,” the central bank said in a statement.

 

 

 

Sudan further opens gold trade to private sector

CAIRO (Reuters) - Sudan, a gold producer, has taken steps to open up the
trade in the precious metal further to private investors, allowing them to
handle all exports and taking the business out of state hands, the Sudan
News Agency (SUNA) reported on Tuesday.

 

A circular approved on Tuesday bars government bodies from exporting gold
and opens the trade to private firms provided they meet requirements, such
as paying taxes and royalties, it said.

 

Sudan has been trying to crack down on gold smuggling and generate more
foreign currency. For years, the central bank had a monopoly on exports,
buying gold locally at fixed prices at collection sites nationwide, which
led to the illegal trade.

 

Sudan produced an estimated 93 tonnes of gold in 2018, Energy and Mining
Minister Adil Ibrahim said in November, a level that would make it Africa’s
third biggest producer after South Africa and Ghana, according to the U.S.
Geological Survey.

 

Regulations approved in January opened gold exports to private companies but
limited private mining firms to exporting 70% of their output with the rest
to be sold to the central bank.

 

The exporters were also required to sell all foreign exchange export
proceeds to the central bank at the official exchange rate, which was at
that time about 45 Sudanese pounds to the dollar, equivalent to about half
the black market rate.

 

The SUNA report made no mention of that requirement.

 

The official rate has since weakened to 55 pounds to the dollar, while the
black market rate has fallen further to 146 pounds.

 

The new rules bar the central bank from buying gold entirely except to
increase official reserves, in which case it must be bought from the local
market, SUNA said.

 

Traders would now be able to export gold through Khartoum international
airport and the government would crack down on other routes used for
smuggling, the news agency reported.

 

The new rules were agreed upon by an economic committee meeting headed by
Sudan’s top military commander, Mohamed Hamdan Dagalo, also known as
“Hemedti”, and including Prime Minister Abdalla Hamdok.

 

 

 

Congo state can help mining firms affected by COVID-19 -minister

JOHANNESBURG (Reuters) - The Congolese government will try to financially
support mining companies who need help as the COVID-19 pandemic disrupts the
industry, Congo’s mines minister Willy Kitobo Samsoni said on Wednesday.

 

“If there are cases of force majeure, the state may be able to dip into its
pockets to try and help mining companies,” Samsoni told a virtual
conference.

 

Congo is the world’s main source of cobalt, and Africa’s top producer of
copper. Force majeure is a contractual clause which mining companies invoke
when factors outside their control render them unable to deliver mined metal
to their customers.

 

 

 

EgyptAir seeking $185 mln from state banks to weather crisis

CAIRO (Reuters) - Egypt’s national carrier EgyptAir is seeking a 3 billion
Egyptian pound ($185 million) loan to tide it over during the coronavirus
crisis, the chairman of the state holding company that owns the airline said
on Tuesday.

 

The crisis prompted Egypt to close its airports to most commercial traffic
in mid-March, costing EgyptAir 3 billion pounds in lost revenue a month,
Chairman Mohamed Rushdi Zakaria said.

 

Procedures for obtaining the loan from the state-owned National Bank of
Egypt and Banque Misr should be finished by next month, he added.

 

The funds will be used to pay $12 million in instalments on foreign loans it
had taken out to finance the purchase of new aircraft, Zakaria said.

 

EgyptAir had expected to take delivery of seven new aircraft in May but will
now begin receiving the first by next month, he said.

 

The company has delayed leasing payments on some aircraft already in its
possession by three months and others by six months, Zakaria said.

 

The airline is expected to operate at 20-30% capacity when it resumes
flights at the beginning of July and at 50% by the end of the year,
providing that coronavirus cases do not increase, Zakaria said.

 

According to central bank data, Egypt hosted 9.78 million tourists in
2017/18, the last year for which figures are available.

 

($1 = 16.1600 Egyptian pounds)

 

 

 

South African Airways rescue would be costly, plan shows

JOHANNESBURG (Reuters) - The South African government would need to find at
least 10 billion rand ($580 million) in new bailout funds if it wants to
rescue South African Airways (SAA) with most of its routes intact, a
long-delayed rescue plan showed.

 

State-owned SAA’s longstanding frailties have been exacerbated by the
COVID-19 pandemic, which has pushed even previously profitable airlines into
financial distress.

 

SAA suspended commercial passenger flights in March, when the government
imposed one of Africa’s strictest coronavirus lockdowns.

 

Rescue efforts have been the subject of fierce wrangling between the
government, which wants SAA retained as a national asset, and the
administrators who took over the airline in December after almost a decade
of financial losses.

 

The administrators’ restructuring plan on Tuesday proposed the government
fund or raise funding for a working capital injection of around 2.8 billion
rand, 2.2 billion rand for layoffs, 3 billion rand for unflown tickets, 600
million rand for general concurrent creditors and 1.7 billion rand for
lessors.

 

The Public Enterprises Ministry said in a statement that it would assess the
plan and that it wanted to see “a competitive, viable and sustainable
national airline”. The Finance Ministry, which has authority over funding,
did not respond to a request for comment on a public holiday.

 

The funding envisioned under the restructuring plan is on top of the 16.4
billion rand the government already set aside to repay SAA’s guaranteed debt
and debt-service costs, as well as the cost of supporting the restructured
SAA until it becomes profitable.

 

A projected income statement showed SAA making losses of more than 6 billion
rand over the next three years.

 

The plan was based on SAA keeping almost all its African destinations, three
of four domestic routes and roughly half its intercontinental destinations.

 

It envisages drastically scaling back the airline’s staff and fleet. Until
the end of August, while many travel restrictions are expected to remain in
place, SAA would need only some 1,000 staff and six planes, compared with
roughly 5,000 staff and 44 planes when it entered administration.

 

It would ramp up operations slowly, with staff numbers rising to 2,900 and a
fleet of 26 planes. Such a dramatic staff reduction could lead to a
confrontation with trade unions.

 

The administrators said they need the government’s support and a commitment
on funding by July 15.

 

($1 = 17.2467 rand)

 

 

 

Acacia Mining employees released from Tanzania jail

DAR ES SALAAM (Reuters) - Three employees of Acacia Mining, a former Barrick
Gold unit, were released from jail in Tanzania on Tuesday after agreeing a
plea bargain deal, two sources with direct knowledge of the matter told
Reuters on Wednesday.

 

Deodatus Mwanyika, Alex Lugendo, and Assa Mwaipopo had been imprisoned since
October 2018 when Tanzanian authorities charged three of Acacia’s local
subsidiaries with dozens of offences including money laundering and tax
evasion.

 

The three pleaded guilty to tax evasion, a source said.

 

They agreed a plea bargain deal under which they would each pay a fine of
1.5 million Tanzanian shillings ($649.35), having been found guilty of tax
evasion, one source said.

 

Barrick, which bought out Acacia Mining last year, declined to comment when
asked about the release.

 

In May, Barrick resumed exporting gold for the first time since a ban on
shipments in 2017 and paid an initial $100 million to settle the dispute.

 

The tax dispute between Acacia and the government escalated three years ago
when the miner was accused of overstating how much gold it was exporting and
operating illegally in the country. It has denied all wrongdoing.

 

($1 = 2,310.0000 Tanzanian shillings)

 

 

 

 

Ghana economy grows 4.9% y/y in first quarter, says stats office

ACCRA (Reuters) - Ghana’s economy grew 4.9% year-on-year in the first
quarter of 2020 compared with 6.7% in the same period last year, provisional
data from the state statistics service showed on Wednesday.

 

Ghana has had one of Sub-Saharan Africa’s fastest-growing economies in
recent years, but the central bank last month downgraded its 2020 growth
forecast to between 2% and 2.5% from an earlier expectation of 6.8% due to
the impact of the coronavirus pandemic. The economy grew 6.5% in 2019.

 

 

 

Nigeria's naira eases 6.2% against dollar on official window

ABUJA (Reuters) - Nigeria’s naira eased by 6.2% against the U.S. dollar on
the official market on Wednesday after the government moved to converge its
multiple exchange rate regime, traders said.

 

The naira opened for trade at 385 per dollar on the market, supported by the
central bank. It closed at 361 at its previous close, data from Refinitiv
Eikon showed.

 

Traders said the government wants to generate more naira in exchange for
dollars it earns from the sale of crude oil, Nigeria’s main export and
sought to converge the currency to the over-the-counter spot market, where
its trades more weakly.

 

The naira has been hitting new lows on the black and over-the-counter spot
markets since March after the central bank adjusted its official rate,
implying a 15% devaluation.

 

The central bank did not immediately respond to a request for comment.

 

 

 

 

China's JD.com raises almost $4bn in Hong Kong share sale

China's second largest online retailer JD.com has raised almost $4bn
(£3.2bn) after making its Hong Kong Stock Exchange debut on Thursday.

 

Its shares jumped by more than 5% after listing, marking the second-largest
share sale this year.

 

The move comes as pressure grows in the US on Chinese companies amid
escalating tensions between the two economies.

 

Several other firms that are based in China are now preparing similar
listings in Hong Kong.

 

The Initial Public Offering (IPO) coincides with JD.com's largest annual
online sales event and comes hot on the heels of the Hong Kong debut of
Nasdaq-listed gaming giant NetEase.

 

Last week, shares in NetEase, which is China's largest gaming firm, made a
solid stock market debut in the city as it raised $2.7bn.

 

In an interview with Asia Business Report on Thursday, Ling Chenkai,
Vice-President of JD Retail said the listing was "a big thing for JD" as it
can help promote the brand in the Greater China area. "It also can help
those Chinese investors and Asian investors to understand JD better and more
clearer which can help us to gain trust from those investors and customers."

 

The listing of JD.com is the second biggest of 2020, after the
Beijing-Shanghai High Speed Railway raised $4.3bn in January, according to
Bloomberg data.

 

Chinese firms listing in Hong Kong

Last November, Alibaba, which is listed on the New York Stock exchange,
became the first of the US-traded Chinese companies to debut in Hong Kong
with its $13bn secondary listing.

 

Massimiliano Bondurri of Singapore-based asset manager SGMC Capital said the
listings highlight majors changes in the global markets.

 

"This occurrence underlines once again how the political landscape of the
world is rapidly evolving, with the globalisation phenomenon we have been
witnessing until a few years back quickly collapsing and an increasing
number of barriers being established for international business dealings
across the globe, resulting in a substantial increase in protectionism."

 

Rising US-China tensions

The listings are taking place as tensions rise between the US and China over
their long-running trade dispute and the handling of the coronavirus
outbreak.

 

The financial dealings of US-listed Chinese companies are also coming under
increasingly intense scrutiny in the wake of the Luckin Coffee accounting
scandal.

 

In April the once-high flying firm revealed that it had uncovered $310m
(£250m) in fake transactions.

 

Luckin's Nasdaq listing had been one of China's few successful US stock
market debuts of 2019.

 

Since details of the scandal emerged the Nasdaq has moved to tighten its
listing regulations.

 

The US Senate has also passed a bill that could block some Chinese companies
from selling shares on American stock exchanges.

 

More listings likely

The renewed interest from Chinese companies in Hong Kong's stock market
comes as concerns grow that Beijing's imposition of a national security law
in the city will make it less attractive to businesses.

 

Mr Bondurri predicts that all of this means there will be even more
US-listed Chinese companies that now decide to sell shares in Hong Kong.

 

"We expect an increasing number of other Chinese companies, both large and
small, to follow in JD’s and Alibaba's footsteps."

 

"This will help diversify the risk for such entities and ensure that, should
US-China negotiations take a turn for the worse, they will not be shut out
from markets as they would already have alternative arrangements in place to
access capital markets," he said.--BBC

 

 

 

Why a recession can be a good time to start a business

GM launched in 1908, when the US economy was in turmoil after "the Panic of
1907" financial crisis. Meanwhile, Burger King flipped its first patty in
1953, when the US was again in recession, and CNN started its news
broadcasts in 1980, when US inflation hit almost 15%.

 

For both Uber and Airbnb, they set up business during the global financial
crisis of 2007-09.

 

These examples show that many of the best, and longest-lasting, companies
are set up during downturns, according to Dane Strangler, a fellow at the
Bipartisan Policy Centre, in Washington DC. He says that the difficult
economic backdrop makes them both tougher and more nimble for years to come.

 

Airbnb launched in August 2008

"There's this trial by fire idea," he says. "If you get started in a
recession, you really have to scrape and scrimp to make that company
successful.

 

"You are trying to make it when you can't get financing, and trying to get
customers when there isn't any demand."

 

We are certainly in a downturn again now, as a result of coronavirus and the
subsequent lockdowns around the world.

 

The World Bank predicts that the global economy will shrink by 5.2% in 2020,
its worst performance since 1946 and the aftermath of World War Two.

 

The US economy is already in recession, and the Bank of England predicts
that the UK is about to see its sharpest downturn since 1706 . That's 314
years ago.

 

But as history shows, successful companies can be born in tough times. Could
there be promising start-ups from the entrepreneurial class of 2020 that
will go on to become household names?

 

More new businesses are certainly being set up despite - and as a result of
- coronavirus. In the US, 67,160 applications were filed to set up new
companies in the last week of May, official figures show.

 

That was a 21% rise on the same seven days in 2019. Whereas from 2018 to
2019, the figure for that week declined by 3.3%.

 

Robert Fairlie, an economics professor at the University of California Santa
Cruz, says the latest increase is party because more people start businesses
when jobs are scarce. He calls this "necessity entrepreneurship".

 

Prof Fairlie says some people are now starting businesses because finding
decent employment is a struggle

"If someone doesn't have opportunities in a salaried job, that's part of the
motivation [behind setting up their own company]," he says.

 

But some entrepreneurs may have had ideas for businesses stewing for a
while.

 

"With the shutdown people have had more time to think, and take time back
from busy work schedules," says Prof Fairlie. "So if there's a business idea
they've had, they might thing, let's try this out."

 

Global Trade

More from the BBC's series taking an international perspective on trade:

 

Other new start-ups have recognised that bleak as coronavirus is, it has
presented business opportunities that also allow them to do their bit to
help defeat the pandemic.

 

This is especially true when it comes to PPE or personal protective
equipment, and the number of new firms set up in the past few months to fill
a shortfall in supply.

 

Matthew Campbell-Hill and his wife Lydia launched their business Aerosol
Shield in April. The firm's eponymous product is a small, pop-up medical
isolation shield or "tent". Transparent plastic sheeting attached to a
plastic frame, it can be placed around a patient's head and shoulders,
thereby reducing medical staff's exposure to the person's coughs.

 

Aerosol Shield was getting bulk orders on its second day of being on sale

"We didn't set out to start a business, [but] we went from knowing about the
issue to launching the company in six days, and taking bulk orders before
we'd finished the seventh day." says Mr Campbell-Hill, who is a senior
fellow at the University of Birmingham's Institute of Clinical Sciences.

 

To make the shields, he and Lydia - who is a GP - worked with Airquee, a
Welsh business that makes tents for armies and humanitarian organisations,
and is also Europe's largest manufacturer of bouncy castles.

 

Lydia and Matthew Campbell-Hill recognised a desperate need, and moved fact
to respond

Another UK business launched as a result of coronavirus is Hidden Smile, a
facemask supplier set up earlier this month by Oxfordshire-based
entrepreneur Neil Cotton.

 

Its masks are made from two layers of cotton, with a folded paper filter
inside.

 

"You don't need to replace the filter as often, as it isn't exposed to the
outside world, nor, crucially, to the moisture of the mouth," says Mr
Cotton. "You also look like an extra from [medical TV drama] Holby City."

 

Other industries that have seen a big rise in business as a result of
coronavirus, and therefore offer opportunities to new start-ups, include
home improvement and the delivery sector.

 

Nicole Gibbons, who founded US paint firm Clare in 2018, says that sales
have soared as a result of the lockdown. "Normally people would rather have
brunch on weekends, and not paint their homes." she says. "But now they have
cabin fever, and want to do something."

 

Meanwhile, London-based courier business Gophr says it has just seen its
busiest ever two months as more people have got a taste for online shopping.

 

Neil Cotton's business is not even one month old

For anyone thinking of now setting up their own business, Markus Berger de
Leon, a partner at management consultancy McKinsey, says think long and hard
before you make the plunge. But if you do jump, then move quickly.

 

"You really need to think, 'should I spend my next pound or euro on this, or
something else?'," he says.

 

"And that makes you need to embrace and scale one skill that is core to your
company. And think about doing that with as little money, as fast as
possible. The start-ups that survive a recession as ones that learn
fastest."--BBC

 

 

 

Facebook to let users turn off political adverts

Facebook boss Mark Zuckerberg says users will be able to turn off political
adverts on the social network in the run-up to the 2020 US election.

 

In a piece written for USA Today newspaper, he also says he hopes to help
four million Americans sign up as new voters.

 

Facebook has faced heavy criticism for allowing adverts from politicians
that contain false information.

 

Rival social platform Twitter banned political advertising last October.

 

“For those of you who’ve already made up your minds and just want the
election to be over, we hear you -- so we’re also introducing the ability to
turn off seeing political ads,” Mr Zuckerberg wrote.

 

Facebook and its subsidiary Instagram will give users the option to turn off
political adverts when they appear or they can block them using the settings
features.

 

Users that have blocked political adverts will also be able to report them
if they continue to appear.

 

The feature, which will start rolling out on Wednesday, allows users to turn
off political, electoral and social issue adverts from candidates and other
organisations that have the "Paid for" political disclaimer.

 

The company said it plans to make the feature available to all US users over
the next few weeks and will offer it in other countries this autumn.

 

Mr Zuckerberg went on to encourage people who aren't signed up as voters to
register in time for the US election in November.

 

“Voting is voice. It’s the single most powerful expression of democracy, the
best way to hold our leaders accountable, and how we address many of the
issues our country is grappling with."

 

“I believe Facebook has a responsibility not just to prevent voter
suppression -- which disproportionately targets people of colour -- but to
actively support well-informed voter engagement, registration, and turnout.”

 

As part of the initiative a new information hub, called The Voting
Information Center, will be put at the top of American users’ Facebook and
Instagram feeds from the beginning of July.

 

Information on offer will include how to register to vote and details about
mail-in ballots.

 

The firm also said it will share reliable information from state and local
election authorities.

 

Facebook estimates that the hub will reach 160 million Americans by the 3
November election.

 

Facing criticism from inside and outside the company over the way it
regulates political speech, Facebook has unveiled what look like fairly
minor tweaks to policies in the run-up to the US elections.

 

Yes, it will become more evident to users what is and is not a political
advert, and they will be able to opt out of seeing them.

 

But that was never the main concern of critics, such as the web's creator
Sir Tim Berners-Lee.

 

Last November Sir Tim told the BBC that Mark Zuckerberg needed to "turn off
" targeted political advertising altogether.

 

"It's not fair to risk democracy by allowing all these very subtle
manipulations with targeted ads which promote completely false ideas," he
explained.

 

I'm told his views have not changed.

 

Facebook's communications supremo Sir Nick Clegg made it clear on BBC Radio
4's Today that the social media giant will also not bow to pressure to fact
check political content.

 

Challenged over Facebook's failure to follow Twitter in at least putting a
warning on a post from President Trump saying "when the looting starts, the
shooting starts", Sir Nick trod a delicate path. He described the comment as
"abhorrent" but backed a collective decision not to take action.

 

President Trump is unlikely to be impressed by that "abhorrent" comment. Nor
will he be enthused by Facebook's promise to help to register four million
voters, which may well do more to boost votes for Democratic candidates than
Republican ones.

 

Meanwhile Joe Biden is still calling on Facebook to tackle misinformation by
fact-checking all political ads over the fortnight before the US
Presidential election.

 

Both contenders feel that Facebook could be crucial to the outcome of that
vote, so the next months will see unrelenting pressure on Mark Zuckerberg
and his team to prove they can play a positive rather than a destructive
role in the democratic process.

 

Social media companies are at the centre of a political storm in the run-up
to the US election.

 

Last month Mr Zuckerberg faced criticism for leaving up a series of posts by
President Donald Trump, including one that Twitter labelled as containing
misleading information about mail-in ballots.

 

It was the first time that Twitter had flagged the US president's tweets.

 

Also in May, Mr Trump signed an executive order aimed at removing some of
the legal protections given to social media platforms.

 

It came as Mr Trump continued to accuse companies such as Twitter and
Facebook of stifling conservative voices.--BBC

 

 

 

 

Apple accused of 'hostile' app fee policies

Apple is facing mounting calls to reconsider its App Store rules, from the
creators of the apps themselves.

 

Dozens have used the term "hostile" to describe how they perceive it treats
its third-party developer community.

 

The backlash has been sparked by a row between the tech giant and the makers
of a new email app over a demand that Apple be given the means to take a cut
of the services's subscription fee.

 

The clash threatens to overshadow one of Apple's biggest annual events.

 

The iPhone-maker hosts its annual Worldwide Developers Conference (WWDC) on
Monday. The five-day event is used to showcase new technologies and
encourage software-makers to adopt them.

 

Regulators and politicians have also questioned whether Apple is behaving
illegally.

 

On Tuesday, the European Union launched a formal probe into the firm's App
store rules saying it believed they might be "distorting competition" in the
digital goods market.

 

And in the US, Congress is waiting to hear whether chief executive Tim Cook
will testify to a House committee investigating whether Apple, Facebook,
Google and Amazon are exploiting their size to obtain unfair advantages over
smaller companies.

 

Mr Cook has previously said that he thought it was fair for Apple to come
under scrutiny, but the firm was not a monopoly in any of the markets it
operated in.

 

'Perversely abusive'

The dispute - with the Chicago-based software firm Basecamp - began on
Monday when Apple rejected an update to its Hey app.

 

Hey puts messages from familiar contacts into an Imbox - for important
emails - while placing newsletters and promotional messages elsewhere

Hey screens emails and separates them into different places, so that users
can focus on the most important ones.

 

It offers an alternative to Apple's own Mail app as well as other services
such as Gmail and Outlook.

 

It costs $99 (£87) a year. This fee must be paid for via Hey's own site, but
the app does not contain links or other prompts to do so.

 

Even so, Apple told Basecamp it must also offer an in-app payment option,
from which the App Store owner would deduct a 30% cut.

 

Apple added that the original version of the app should not have been
approved in the first place.

 

Basecamp's chief technology officer has tweeted his dismay, accusing Apple
of a "shakedown" and being "perversely abusive and unfair".

 

"I will burn this house down myself, before I let gangsters like that spin
it for spoils," David Heinemeier Hansson added.

 

The executive testified to Congress earlier this year when he complained
about Apple's commission charges, at which time he was also critical of
Google's business practices.

 

However, he has noted in this latest dispute that Google's Play Store is not
trying to impose a similar revenue share.

 

His tweets have struck a nerve with other developers, some of whom have used
the opportunity to express their own concerns.

 

The steep fee on Apple first year of 30% can kill many startups that are
self-funded. Your pricing can’t be as competitive, plus you don’t have
investor cashflow to last you till year passes when the fee lowers. It
causes you to charge more to the user.

 

— Jelena Jansson (@jelenajansson) June 16, 2020

 

Several major players have also been critical.

 

Video game Fortnite's chief Tim Sweeney, Tinder's owner Match Group, and
Spotify's chief legal officer all issued statements to the Washington Post,
pressing Apple for a rethink.

 

For its part, Apple notes that policies in place since 2010 made clear that
paid services must offer users the option to make the purchase within the
app.

 

The firm does make an exception for what it terms Reader apps - including
magazines, books, newspapers, video-streamers and cloud storage - so long as
they do not directly tell users to pay elsewhere.

 

This is why Amazon's Kindle app, for example, lets iPhone-owners read books
bought off the retailer's site, but does not direct them to buy other titles
from there.

 

Apple has given some organisations further special dispensation - for
example BBC's iPlayer app tells users they must pay the licence fee, but
does not provide the US firm with a way of taking a cut.

 

But otherwise, Apple says developers must follow its "strict guidelines".

 

Uninformed consumers

Mr Hansson, however, claims that Apple recently tightened the application of
its rules, which would explain why some other apps appear to have escaped
the in-app fee requirement. But Apple has said there has been no change of
practice.

 

Apple's model offers users convenience, but one company-watcher said it
could also place them at a disadvantage, as they cannot be told it might be
cheaper to sign up outside the app.

 

"It's increasingly difficult for customers to understand all the different
options open to them when subscribing to content, particularly through
Apple's App Store, because developers aren't able to display all the deals
available to them," explained Ben Wood from the consultancy CCS Insight.

 

"And there is little question that this debate has now exploded into the
public domain.

 

"Therefore it's going to be interesting to see whether it's something that
Apple addresses at WWDC."--BBC

 

 

 

 

US says a UK trade deal 'unlikely' before November

America's top trade negotiator has said a deal with the UK is unlikely
before the US presidential election in November.

 

Ambassador Robert Lighthizer's comments come as the two countries embark on
a second round of negotiations.

 

Among the issues complicating the talks are disagreements over US
agriculture exports and UK taxes on tech companies.

 

"There are very, very fundamental issues that we have to come to grips
with," Mr Lighthizer said.

 

"I don't want anyone to think this is going to be a rollover."

 

Chlorinated chicken

The two countries, which exchange £230bn worth of trade each year, started a
second round of talks on Monday, after opening formal negotiations last
month.

 

Mr Lighthizer told Congress that the US is looking for a comprehensive deal
- not a more limited agreement of the kind it has settled for in other
instances.

 

He said he expected to push for access to the UK market for American
farmers, describing many of the standards that limit US food exports - such
as those regarding chlorinated chicken - as "thinly veiled protectionism".

 

"The United States has the best agriculture in the world. It has the safest,
highest standards and I think we shouldn't confuse science with consumer
preference," he said.

 

On issues such as agriculture "this administration is not going to
compromise", he said.

 

The two sides have yet to agree on any part of a deal, Mr Lighthizer said.
He said he hoped to resolve some issues this week, but other matters - some
of which depend on what comes out of UK talks with the European Union - will
take longer to negotiate.

 

"There hasn't been an enormous amount that's happened yet," he said.

 

The UK has vowed to maintain consumer and environmental standards and
protect the National Health Service.

 

In a 180-page document setting out the UK's objectives in March, ministers
said they hoped to lower trade barriers faced by British car manufacturers,
ceramics makers and producers of products such as cheddar cheese.

 

But a host of other issues threaten to overwhelm the talks.

 

On Wednesday, Mr Lighthizer warned again that the US would respond with
tariffs if countries raise taxes on tech companies, as the UK did this
spring.

 

The UK's Department for International Trade said the negotiations with the
US "were proceeding at pace".

 

"The second virtual round of negotiations is currently underway and we
welcome the US' repeated commitment to reaching an agreement," it said.

 

Digital tax war?

This month, the US launched an investigation into the digital services taxes
in 10 jurisdictions, including the UK. The move is the first step in a
process that could lead to retaliation.

 

Representative Lloyd Doggett, a Democrat from Texas, said he feared the US
was going to start a wide-ranging trade war over the issue, despite
legitimate concerns about whether tech firms are paying their fair share of
taxes.

 

"I'm not a loophole guy but I don't want a tax system that unfairly treats
American companies," Mr Lighthizer said. "The US will put in place tariffs
if these countries move forward unilaterally, discriminating against these
companies."

 

The Organisation for Economic Cooperation and Development has been
overseeing discussions aimed at reaching an international consensus for how
to handle taxing online sales.

 

Mr Lighthizer said the administration did not accept the current proposal,
which has otherwise received widespread support, and had pulled out of the
talks.

 

"The reality is they all came together and agreed that they were going to
screw America," he said.--BBC

 

 

 

 

Money printer hopes virus crisis boosts demand for fresh bank notes

Countries may replace banknotes more frequently because of the coronavirus
crisis, De La Rue chief executive Clive Vacher has said.

 

But some experts say the virus will speed up the decline in cash use in
favour of digital payments.

 

Mr Vacher also said De La Rue is to end banknote printing at its Gateshead
plant, putting 260 jobs at risk.

 

The firm plans to raise £100m as part of a turnaround plan focused on
shifting to plastic notes.

 

De La Rue shares rose more than 4.5% following the announcements.

 

Clean cash?

The firm said it expected demand to grow around the world for its plastic
banknotes as governments try to slow the spread of coronavirus.

 

However, some experts have said coronavirus will hasten the decline in the
use of cash as people make a long-term switch to digital payments.

 

The Bank of England and the World Health Organization have both stressed
that the risk of virus transmission from banknotes and coins is no greater
than for any other items and have repeated advice on regular hand washing.

 

There have been no tests on how the virus sticks to paper or polymer, and
there is no scientific evidence that Covid-19 can be transmitted via bank
notes, Mr Vacher said.

 

However, he added: "There is no doubt that a big driver - apart from the
longevity of [plastic] notes - is the cleanliness of them, and that's why
state banks and state printworks are making the decision to switch."

 

Gateshead job losses

De La Rue said it would begin a consultation process with staff about
stopping banknote production at its Gateshead plant.

 

It expects banknote production to stop at the plant by the end of 2020.

 

In addition, UK passport production will stop in the first half of 2020/2021
as the contract transfers to Franco-Dutch firm Gemalto.

 

De La Rue said it would continue to print banknotes in the UK at other
facilities.

 

Fundraising

Mr Vacher's comments came as De La Rue set out a plan to raise £100m from
shareholders.

 

The firm, which prints the UK's banknotes, has been hit by setbacks
including losing the contract to make Britain's blue post-Brexit passports
to Gemalto in 2018.

 

In May of that year, it had to write off £18m after Venezuela's central bank
failed to pay its bills.

 

The loss of the British passport contract, two profit warnings in 2019, and
ballooning debt prompted De La Rue to warn late last year of uncertainty
over the future of the business.

 

At the time, the company was also under investigation by the Serious Fraud
Office (SFO) in connection with "suspected corruption" in South Sudan.

 

However, on Tuesday the SFO said it had dropped its investigation.

 

Mr Vacher said in February that "considerable" work was needed at the firm,
while unveiling plans to boost profitability by reining in costs and
investing in plastic notes.

 

Turnaround plan

On Wednesday, De La Rue said most of the money it planned to raise, about
£80m, would go into the company's turnaround plan.

 

Some £15m will be invested in plastic note production, which at the moment
is based in the UK.

 

"It's very likely to be in the UK, but actual location is still under
discussion," Mr Vacher said.

 

The company has drawn up a shortlist of potential sites.--BBC

 

 

 

HSBC to press on with 35,000 job cuts

HSBC, the UK's largest bank, is to resume its plans to cut 35,000 jobs.

 

New chief executive Noel Quinn gave the news to his 235,000 staff around the
globe in a memo seen by the BBC and confirmed as authentic by the bank.

 

The lender had originally announced the plan in February, but put it on hold
amid the coronavirus pandemic.

 

HSBC said it would try to find internal jobs for those affected but that
redundancies were likely.

 

In April, the bank had said it would hold fire on the cuts, explaining that
it did not want to leave staff unable to find work elsewhere during the
coronavirus outbreak.

 

The move is part of a restructuring programme which aims to achieve $4.5bn
(£3.6bn) of cost cuts by 2022.

 

Some cuts are likely to come from merging support roles in the commercial
bank and investment bank. The bank will also review less-profitable areas of
business.

 

'Why now?'

At its peak, the bank employed more than 300,000 people, but since the
global financial crisis around 2008, HSBC has sold businesses and left some
countries, including Brazil in 2016.

 

Various chief executives have aimed to make HSBC a simpler business,
especially after the bank agreed to pay $1.9bn to regulators in 2012 over
poor money laundering controls.

 

Trade union Unite said the news would cause apprehension with many lockdown
measures still in place.

 

"The question that must be asked today is why now HSBC?" Dominic Hook, Unite
national officer said. "At present vast numbers of HSBC staff are making
massive sacrifices working from home or taking risks travelling into offices
and bank branches to help customers."

 

"Unite will continue to oppose any compulsory job losses within HSBC and
work vigorously to ensure staff are heard and their jobs protected," he
said.

 

The bank also faces political challenges. It is reliant on China's attitude
towards its massive home market of Hong Kong, and on the US to be able to
bank in dollars, the currency of choice for many commodity markets.

 

Earlier this month, US Secretary of State Mike Pompeo criticised HSBC for
supporting China's move to impose new security legislation in Hong Kong.

 

Mr Pompeo also said the US stood with its allies against China's "coercive
bully tactics".

 

The Trump administration has repeatedly attacked Beijing for what it says is
an attempt to end Hong Kong's autonomy.

 

HSBC, which is UK-based but was formed in Hong Kong in 1865, declined to
comment on Mr Pompeo's remarks.

 

Last month, China's parliament approved a resolution that would impose
legislation on Hong Kong that criminalises criticism of the city's
government.--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.

 


 

 


(c) 2020 Web: <http:// www.bulls.co.zw >  www.bulls.co.zw Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

 


 

 

 

 

 

 

Invest Wisely!

Bulls n Bears 

 

Telephone:      <tel:%2B263%204%202927658> +263 4 2927658

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw&sa=D&sntz=1&usg=AF
QjCNH8LYgdY55h-XKseuM8Kpr-JKdfhQ> www.bulls.co.zw 

Blog:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1
&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bulls.co.zw/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 



 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200618/c54fd8d1/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 30905 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200618/c54fd8d1/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 35491 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200618/c54fd8d1/attachment-0006.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 33746 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200618/c54fd8d1/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 31439 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200618/c54fd8d1/attachment-0008.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 4846 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200618/c54fd8d1/attachment-0009.jpg>