The Daily Economic and Business News Update 29-11-12
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Transcript of The Daily Economic and Business News Update 29-11-12
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8/11/2019 The Daily Economic and Business News Update 29-11-12
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Group Economics& Strategy3rdFloor ZB House,46 Speke Avenue, Box 3198, HarareTel: +263(0)-4-757471-9, 757535-43Fax: +263(0)-4-253815Email: [email protected]
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Disclaimer: This document may be legally privileged and/or confidential and has been prepared for informative purposes only. No liability whatsoever forany loss howsoever arising from the use of this review or its contents or otherwise arising in connection therewith shall be accepted by ZB FinancialHoldings, any of its directors, employees, or associates. Any person who makes use of this document shall be solely responsible for making his or her ownindependent investigation of the issues discussed in this report. ZB Financial Holdings accepts no responsibility whatsoever for the accuracy or completenessof the information contained in this document.
Business and General Economic News
1. Treasury in September 2012 made payments amounting to close to $11,5 million to various
international institutions it owes, including the International Monetary Fund (IMF). Statisticscontained in the consolidated statement of financial performance for September show that the
government made a payment to IMF of $2,5 million. China Export-Import Bank was paid $6,7
million, Africa Export-Import Bank was paid $2 million and $143 000 to the Arab Bank for
Economic Development in Africa. (News Day)
2. Zimbabwe plans to amend its Banking Act after repeated attempts to sell Treasury bills failed
to attract bids at rates acceptable to the central bank and Finance ministry, Finance minister
Tendai Biti has said. Ive written foreign banks off, theyre not worth their salt, Biti said.
That iswhy we are amending the Banking Act. He declined to elaborate on the changes he
plans to make, though he said in his November 15 Budget speech that the government would
step in to regulate banks after the misadventures with T-bills. (News day)
3. Zimbabwes policy to control interest rates and bank charges will result in increased financial
exclusion as most banks will snub smaller depositors, said Kingdom Bank Limited (Kingdom)
a major player in the countrys financial sector.A fortnight ago, Finance minister Tendai Biti
barred banks from levying charges on deposits of $800 and below while he also ordered the
institutions to pay a minimum 4% per annum interest on deposits of $1 000 and more held for
at least 30 days. (Daily News)
4.
Farmers who defaulted on loans from local banks risk going out of business due to the
punitive penalty interest rate regimes used by some financial institutions. Some maize and
wheat farmers who failed to repay loans taken in the 2010/11 agricultural season said
unfavourable weather affected their yields, but banks have declined requests for a new
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Group Economics& Strategy3rdFloor ZB House,46 Speke Avenue, Box 3198, HarareTel: +263(0)-4-757471-9, 757535-43Fax: +263(0)-4-253815Email: [email protected]
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Disclaimer: This document may be legally privileged and/or confidential and has been prepared for informative purposes only. No liability whatsoever forany loss howsoever arising from the use of this review or its contents or otherwise arising in connection therewith shall be accepted by ZB FinancialHoldings, any of its directors, employees, or associates. Any person who makes use of this document shall be solely responsible for making his or her ownindependent investigation of the issues discussed in this report. ZB Financial Holdings accepts no responsibility whatsoever for the accuracy or completenessof the information contained in this document.
repayment plan. Instead, banks are attaching assets which farmers had used as security,
leaving them with no collateral for further borrowings. (Business Herald)
5. The Zimbabwe Manpower Development Fund has over the past 18 months spent US$50
million on training apprentices and workers in formal employment, Zimdef Chief Executive, Mr
Frederick Mandizvidza has said. In a speech read on his behalf by Zimdef principal director for
finance and administration, Nicholas Mapute, at a Business Ethics Symposium held in Harare
recently, Mr Mandizvidza said US$9 million had been used for training 3 800 apprentices
countrywide. (Business Herald)
6. Members of Parliament are pushing for the enactment of a new law compelling mining
companies to comply with a supply-based empowerment model, it has been learnt. In its post
budget analysis, the Parliamentary Portfolio Committee on Mines and Energy said the
government should craft legislation that favours local suppliers. This comes as most
companies have submitted their plans to comply with the countrys equity laws compelling
foreign-owned companies to sell 51% to locals. (News Day)
7. Government should promote exports of finished products by offering incentives in order to
reduce the countrys trade deficit, an official said. Parliamentary Portfolio Committee on
Budget, Finance and Investment Promotion chairperson Mr Paddy Zhanda said this in
Parliament during debate on the 2013 National Budget. Mr Zhanda said his committee was
concerned with the high trade deficit and was urging the Government to explore ways of
curtail it. The countrys trade deficit continues to widen, even the committee feels that we
need to incentivise our exporters in one way or the other to encourage them to export their
goods, particularly those that deal with finished products, he said. (Business Herald)
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Group Economics& Strategy3rdFloor ZB House,46 Speke Avenue, Box 3198, HarareTel: +263(0)-4-757471-9, 757535-43Fax: +263(0)-4-253815Email: [email protected]
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Disclaimer: This document may be legally privileged and/or confidential and has been prepared for informative purposes only. No liability whatsoever forany loss howsoever arising from the use of this review or its contents or otherwise arising in connection therewith shall be accepted by ZB FinancialHoldings, any of its directors, employees, or associates. Any person who makes use of this document shall be solely responsible for making his or her ownindependent investigation of the issues discussed in this report. ZB Financial Holdings accepts no responsibility whatsoever for the accuracy or completenessof the information contained in this document.
8. Individuals and companies selling bulk water from bowsers and in bottles should obtain
permits from the Zimbabwe National Water Authority (Zinwa) to ensure the health of citizens
is protected, a Cabinet Minister said. Water Resources, Development and Management
Minister Sipepa Nkomo said the companies should comply with regulations and standards that
Zinwa stipulates. This enables monitoring the quality of the water being sold to consumers to
ensure the health of the people, he said. Minister Nkomo said registration would enable
Zinwa to monitor the ground water levels to ensure that water was being abstracted at a
sustainable rate. (ZBC News)
9. One of the sectors, which tend to respond instantly to economic dynamics, is without doubt
the financial service sector. It seems the old adage that, banks take the umbrella when it is
raining and lends it when it is calm, seems to be holding water. Banks by nature thrive on
confidence and trust ahead of economic facts and figures. An average of 25 banks, in a US$5
billion economy with a US$10,7 billion external debt, and 85% unemployment makes an
interesting subject for debate. Developments in Africa are somehow unimpressive. Global FDI
flows which declined sharply from its peak of US$2,3 trillion in 2007 to US$1,39 trillion in
2009, recovered by about 3 percent to US$1,43 trillion in 2010. (Business Herald)
10.MWANA Africa Plc has announced further significant intersections of high grade nickel
sulphides at Bindura Nickel Corporation subsidiary Trojan Mine after an underground drilling
programme at the mine. This is the second tranche of drilling results from Trojan since the
successful recapitalisation and restructuring of BNC was completed in September 2012,
Mwana Africa said. Key nickel intersections include 10,7m at 11,02% Ni from 368,7m (BH 35-
0-70), 18,41m at 7,42% Ni from 284m (BH 35-0-82), 35,75m at 9,44% Ni from 177m (BH 35-
0-83), 24m at 1,96% Ni from 182m (BH 350- 85), 18,4m at 1,22% Ni from 137,6m (BH 35-
0-86). (Business Herald)
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Group Economics& Strategy3rdFloor ZB House,46 Speke Avenue, Box 3198, HarareTel: +263(0)-4-757471-9, 757535-43Fax: +263(0)-4-253815Email: [email protected]
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Disclaimer: This document may be legally privileged and/or confidential and has been prepared for informative purposes only. No liability whatsoever forany loss howsoever arising from the use of this review or its contents or otherwise arising in connection therewith shall be accepted by ZB FinancialHoldings, any of its directors, employees, or associates. Any person who makes use of this document shall be solely responsible for making his or her ownindependent investigation of the issues discussed in this report. ZB Financial Holdings accepts no responsibility whatsoever for the accuracy or completenessof the information contained in this document.
11.Diamond producer Marange Resources (Marange) plans to ramp up its production by two-fold
next year as international demand for the precious mineral continues to soar. The company
100 percent owned by the Zimbabwe Mining Development Corporation (ZMDC) said it has
grown its production from a mere 10 tonnes per hour dense medium separation plant capacity
to the current 115 tonnes within two years. Obed Dube, Marange chief executive, said the
company now has the capacity to boost production after acquiring state-of-the-art diamond
recovery equipment. He refused to disclose the amount invested. (Daily News)
12.National carrier Air Zimbabwe has stepped up efforts to regain its status as a safe and reliable
airline with the successful reintroduction of the Harare-Johannesburg flight. Since the return
of Air Zimbabwe, travellers have been the biggest winners as they are paying very affordable
rates and enjoy a bigger baggage allowance. The return fare to Johannesburg has been
slashed to US$317 return and the baggage allowance is 40kg giving travellers an opportunity
to shop and ferry their goods at a reasonable cost. Other airlines that were capitalising on the
absence of Air Zim over the years were charging up to US$600 for the same trip. (Business
Herald)
13.
National carrier Air Zimbabwe has stepped up efforts to regain its status as a safe and reliable
airline with the successful reintroduction of the Harare-Johannesburg flight. Since the return
of Air Zimbabwe, travellers have been the biggest winners as they are paying very affordable
rates and enjoy a bigger baggage allowance. The return fare to Johannesburg has been
slashed to US$317 return and the baggage allowance is 40kg giving travellers an opportunity
to shop and ferry their goods at a reasonable cost. Other airlines that were capitalising on the
absence of Air Zim over the years were charging up to US$600 for the same trip. (Business
Herald)
14.Justice Minister, Patrick Chinamasa has discounted the economic benefits of South Africas
retail giant Pick n Pays investment in the countrys retail sector, which he said must be
reserved for locals.Addressing delegates at a national economic empowerment conference in
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Group Economics& Strategy3rdFloor ZB House,46 Speke Avenue, Box 3198, HarareTel: +263(0)-4-757471-9, 757535-43Fax: +263(0)-4-253815Email: [email protected]
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Disclaimer: This document may be legally privileged and/or confidential and has been prepared for informative purposes only. No liability whatsoever forany loss howsoever arising from the use of this review or its contents or otherwise arising in connection therewith shall be accepted by ZB FinancialHoldings, any of its directors, employees, or associates. Any person who makes use of this document shall be solely responsible for making his or her ownindependent investigation of the issues discussed in this report. ZB Financial Holdings accepts no responsibility whatsoever for the accuracy or completenessof the information contained in this document.
Harare yesterday, Chinamasa said the participation of foreign-owned retail chains on the
domestic market would not grow the economy on the back of a ballooning import bill. Experts
say Zimbabwe needs more foreign direct investment to ease the liquidity constraints besetting
the economy. Pick n Pay opened its first branch in the country in June after injecting $1, 5
million. (News Day)
15.Zimbabwe Council for Tourism (ZCT) says its members are working hard to show off the best
of Zimbabwe during the United Nations World Tourism Organisation General Assembly
meeting set for August 2013.
President of the apex body Glenn Stutchbury said their members
were gearing to showcase the country to the worlds travel industry leaders, policymakers and
media. ZCT brings together seven different associations within the tourism sector. (News Day)
16.Government's revised Distressed Industries and Marginalised Areas Fund (Dimaf) will also bail
out companies under judicial management, the Fund advisor Eric Bloch said. This follows
consultations between government and banks involved as the companies, which were
described as dead by Finance minister Tendai Biti, were not considered as beneficiaries of
the bailout package. CABS is one of the institutions involved in disbursing the $40 million
Fund. Having discussed these things with Cabs managing director and with ministers
Welshman Ncube and Biti, I believe we are going to see a different Dimaf in the coming six
weeks, Bloch, who is also a leading independent economist.(Daily News)
Regional News
1. South Africa's Bidvest Group has offered to buy the remaining 72% stake in Amalgamated
Appliance Holdings it does not already own, in a $61 million cash deal. Bidvest, a sprawling
conglomerate with interests in everything from catering to car sales, has offered 3.50 rand a
share for the distributor and retailer of household appliances, the two companies said in a
statement. The offer represents a 10% premium to Amalgamated Appliance's closing price on
Tuesday. (Reuters)
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Group Economics& Strategy3rdFloor ZB House,46 Speke Avenue, Box 3198, HarareTel: +263(0)-4-757471-9, 757535-43Fax: +263(0)-4-253815Email: [email protected]
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Disclaimer: This document may be legally privileged and/or confidential and has been prepared for informative purposes only. No liability whatsoever forany loss howsoever arising from the use of this review or its contents or otherwise arising in connection therewith shall be accepted by ZB FinancialHoldings, any of its directors, employees, or associates. Any person who makes use of this document shall be solely responsible for making his or her ownindependent investigation of the issues discussed in this report. ZB Financial Holdings accepts no responsibility whatsoever for the accuracy or completenessof the information contained in this document.
2. The rand declined for the first time in five days after South African Reserve Bank Governor Gill
Marcus said economic growth is likely to remain low. Bond prices dropped for the first time in
three days. The currency of Africas biggest economy depreciated 0.4% to 8.8677 per dollar at
4:08 p.m. in Johannesburg. Yields on benchmark 10.5% rand bonds due December 2026 rose
two basis points to 7.58%. (Bloomberg)
3. Mining and resources stocks lost ground due to lower commodity prices on Wednesday 28
November dragging the JSE lower in line with global markets as a lack of progress on the US
fiscal cliff issue and concerns about the long-term Greek debt problem weighed on globalinvestor sentiment. At 17:00 the All Share [JSE:J203] index was down 0.97% to 37 438.41
points with the Top 40 - (Tradeable) [JSE:J200] index dropping 1.06%. The platinum and
bullion indices gave up 2.85% and 2.63% respectively. (Fin24)
4. The trade and industry department on Wednesday withdrew proposed changes to the broad-
based black economic empowerment (BBBEE) codes on socio-economic development. "The
decision comes after several stakeholders expressed concern that Statement 500 has been
interpreted to mean that charities will be adversely affected," the department said in a
statement. The department said it had previously indicated it would correct any unintended
interpretation after the consultation period ended on December 5. (Fin24)
5. The South African manufacturing sector is in a crisis which requires changes in the country's
policies, the Manufacturing Circle said. "The sector has lost 300 000 jobs since 2010. The
recession has been biting; we have also had a recession in the construction sector which has
hit us severely, and then the flood of imports," chairperson Stewart Jennings said in
Johannesburg. (Fin24)
6. South Africas Reserve Bank Governor, Gill Marcus has defended the independence of the
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Group Economics& Strategy3rdFloor ZB House,46 Speke Avenue, Box 3198, HarareTel: +263(0)-4-757471-9, 757535-43Fax: +263(0)-4-253815Email: [email protected]
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Disclaimer: This document may be legally privileged and/or confidential and has been prepared for informative purposes only. No liability whatsoever forany loss howsoever arising from the use of this review or its contents or otherwise arising in connection therewith shall be accepted by ZB FinancialHoldings, any of its directors, employees, or associates. Any person who makes use of this document shall be solely responsible for making his or her ownindependent investigation of the issues discussed in this report. ZB Financial Holdings accepts no responsibility whatsoever for the accuracy or completenessof the information contained in this document.
institution, telling trade unionists firmly that nationalising the Bank would be a mistake she
would "not be party" to. The National Union of Metalworkers of South Africa (Numsa) has
been pushing for the nationalisation of the Bank on the basis that it made "pro-business"
decisions that were contrary to the interests of the working class. (BD Live)
7. The Manufacturing Circle, an industry representative body, is urging the African National
Congress (ANC) to take steps to slow an influx of cheap Asian imports which its members say
is putting them out of business. It also wants the ANC to adopt measures at its Mangaung
electoral conference next month to stem the volatility of the rand and keep it within a range
that will make local exports competitive. (BD Live)
8. Kenya's inflation rate is expected to edge down this month but it may be close to bottoming
out after an 11-month dive that has allowed the central bank to slash interest rates. All but
one of the 11 analysts polled by Reuters predicted the year-on-year inflation rate would fall to
a consensus forecast of 3.95% in November from 4.14% last month, laying the ground for
another 100-150 basis point cut in official borrowing costs in January. The forecasts for
inflation, due for release on Friday, ranged from 3.0% to 4.25%. (Reuters)
9. The Kenyan shilling held steady on Wednesday 28 November but its outlook remained bearish
due to importer demand for dollars amid a wide current account deficit, while Safaricom
weighed on shares further. At the 1300 GMT market close, leading commercial banks posted
the shilling at 85.90/86.00 per dollar, unchanged from the previous day's close. "We could
take out 86.00 and head to 86.50 against the dollar," said Christopher Muiga, a senior trader
at Kenya Commercial Bank. "Demand will definitely outweigh supply and the current account
deficit keeps growing and this will definitely lead to a weaker currency." (Reuters)
10.
Nigerias privatization of state- owned companies faced uncertainty after the head of the
Bureau of Public Enterprises was fired with key sales yet to be concluded, analysts from
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Group Economics& Strategy3rdFloor ZB House,46 Speke Avenue, Box 3198, HarareTel: +263(0)-4-757471-9, 757535-43Fax: +263(0)-4-253815Email: [email protected]
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Disclaimer: This document may be legally privileged and/or confidential and has been prepared for informative purposes only. No liability whatsoever forany loss howsoever arising from the use of this review or its contents or otherwise arising in connection therewith shall be accepted by ZB FinancialHoldings, any of its directors, employees, or associates. Any person who makes use of this document shall be solely responsible for making his or her ownindependent investigation of the issues discussed in this report. ZB Financial Holdings accepts no responsibility whatsoever for the accuracy or completenessof the information contained in this document.
Financial Derivatives Co. and Standard Bank Group Ltd. said. Bolanle Onagoruwa was asked to
quit with immediate effect yesterday and hand over to her deputy, according to a statement
released by Vice President Namadi Sambos office in Abuja, the capital. No reason was given
for the decision. Chukwuma Nwoko, a spokesman for the agency, also known as BPE, said
today it was a presidential directive that had to be obeyed and declined to comment further.
(Bloomberg)
11.
The Ghana Revenue Authority (GRA) from January 2015 will not have the sole mandate to
determine the tax returns of businesses in the country. Businesses will be expected to asses
themselves and declare their returns. This move according to the GRA, aimed at checking
inadequacies in the present tax regime. Taxpayers will soon be given the responsibility toaccurately compute and report their tax liability to the Ghana Revenue Authority, under the
self-assessment regime. (GhanaWeb)
12.Vodafone Ghanas controversial capped fixed broadband packages begin today for all new
customers, but would start on December 16, 2012 for existing customers. This means all new
customers who sign on to Vodafones browser, streamer or downloader fixed broadband
packages from today would have respective caps at the increased prices. Browsers would pay
GHC65 for a maximum 15GB, Streamers would pay GHC100 for 25GB and Downloaders would
pay GHC200 for 60GB for one month. (GhanaWeb)
13.The Reserve Bank of Malawi (RBM) is equipping commercial bank staff responsible for credit
and operational risk management on how to quantify credit and operational risks according to
the Basel II minimum capital requirement. Speaking during the opening ceremony of a
weeklong workshop in Mangochi on Monday, RBM Director for Bank Supervision, Noel
Mkulichi, said credit and operational risks are major risks which exist inherently in all banking
institutions. (Daily Times)
14.The Mozambican government has called on building companies to invest in housing aimed at
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Group Economics& Strategy3rdFloor ZB House,46 Speke Avenue, Box 3198, HarareTel: +263(0)-4-757471-9, 757535-43Fax: +263(0)-4-253815Email: [email protected]
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Disclaimer: This document may be legally privileged and/or confidential and has been prepared for informative purposes only. No liability whatsoever forany loss howsoever arising from the use of this review or its contents or otherwise arising in connection therewith shall be accepted by ZB FinancialHoldings, any of its directors, employees, or associates. Any person who makes use of this document shall be solely responsible for making his or her ownindependent investigation of the issues discussed in this report. ZB Financial Holdings accepts no responsibility whatsoever for the accuracy or completenessof the information contained in this document.
the lower middle class. The call came from the Minister of Public Works and Housing, Cadmiel
Muthemba, during a conference and exhibition, entitled Mozambuild, which opened in
Maputo on Tuesday. Muthemba stressed that the Mozambican population is overwhelmingly
young, and that young people face serious problems in buying or renting their first home.
(The Club Of Mozambique)
15.The Mozambican authorities have approved private sector projects budgeted at 1.2 billion US
dollars to be implemented in the Nacala Corridor, in the north of the country, according to
Danilo Nala, general director of the Office for the Accelerated Development Economic Zones
(GAZEDA), cited in Wednesdays issue of the Maputo daily Noticias.At the same time, 500
million dollars have been mobilized for the public sector, including the rehabilitation of theNacala dam, and of the citys water supply system, its electricity supply and its
telecommunications, creating 7,000 jobs. (The Club Of Mozambique)
16.The Fund for the Pro-Savana Development Initiative has approved its first package of
financing for companies operating in the agro-business value chain in the broad Nacala
Corridor in northern Mozambique. Pro-Savana is a triangular development programme
between the Mozambican Ministry of Agriculture, the Brazilian Cooperation Agency (ABC), and
the Japanese International Cooperation Agency (JICA) aimed at the agricultural and rural
development of areas along what is known as the Nacala Corridor (which runs from the port
of Nacala across broad expanses of Nampula and Niassa provinces to landlocked Malawi).
(The Club Of Mozambique)
17.Mozambican President Armando Guebuza took the example of the Cahora Bassa dam, in the
western province of Tete, to show how natural resources should benefit the entire country,and not just those who live where the resources are found. Speaking in the town of Songo,
during celebrations of the fifth anniversary of the passage of Hidroelectrica de Cahora Bassa,
the company that runs the dam, into majority Mozambican ownership, Guebuza said that
Mozambican control of the dam had led to a great increase in the number of Mozambicans,
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Group Economics& Strategy3rdFloor ZB House,46 Speke Avenue, Box 3198, HarareTel: +263(0)-4-757471-9, 757535-43Fax: +263(0)-4-253815Email: [email protected]
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Disclaimer: This document may be legally privileged and/or confidential and has been prepared for informative purposes only. No liability whatsoever forany loss howsoever arising from the use of this review or its contents or otherwise arising in connection therewith shall be accepted by ZB FinancialHoldings, any of its directors, employees, or associates. Any person who makes use of this document shall be solely responsible for making his or her ownindependent investigation of the issues discussed in this report. ZB Financial Holdings accepts no responsibility whatsoever for the accuracy or completenessof the information contained in this document.
throughout the country, who are benefitting from the power it produces. (The Club Of
Mozambique)
18.The World Bank approved a $500m loan to Tunisia to help it recover from the Arab Spring
uprising that toppled the former regime, with another $700m loan coming from other donors.
The loan, the World Bank's second since the revolution, aims to support Tunisia's economic
recovery by providing funds to improve the business and financial sectors and reform social
services, which are vital for reducing inequality. The World Bank said the European Union and
the African Development Bank are giving a further $700m to support Tunisia's transition.
(Fin24)
International News
1. BP has been temporarily suspended from new contracts with the US government, the
Environmental Protection Agency (EPA) has said. While it is unclear how long the ban will last,
it follows BP's record fine earlier this month over the 2010 oil spill in the Gulf of Mexico. The
EPA said it was taking action due to BP's "lack of business integrity" over its handling of the
blowout. But BP said it had spent $14bn (8.8bn) on its response to the spill. (BBC News)
2. The world's second-biggest mining group, Rio Tinto, has announced plans to slash its costs by
$5bn (3.2bn) over the next two years. The cuts come as slowing global demand and a fall in
commodity prices have hurt profits at mining firms. There have been concerns that demand
for commodities may dip further in wake of economic problems in the US and Europe and
slowing growth in China. Other miners, including BHP Billiton, have also announced cost-
cutting plans. (BBC News)
3.
Billionaire investor Warren Buffett believes the US fiscal cliff may be solved by January rather
than December. Congress has until 31 December to cut a deal to stop existing economic
stimulus measures terminating and huge automatic spending cuts coming into effect. While Mr
Buffett said politicians may miss the deadline, he thought a deal would follow shortly after. On
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Group Economics& Strategy3rdFloor ZB House,46 Speke Avenue, Box 3198, HarareTel: +263(0)-4-757471-9, 757535-43Fax: +263(0)-4-253815Email: [email protected]
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Disclaimer: This document may be legally privileged and/or confidential and has been prepared for informative purposes only. No liability whatsoever forany loss howsoever arising from the use of this review or its contents or otherwise arising in connection therewith shall be accepted by ZB FinancialHoldings, any of its directors, employees, or associates. Any person who makes use of this document shall be solely responsible for making his or her ownindependent investigation of the issues discussed in this report. ZB Financial Holdings accepts no responsibility whatsoever for the accuracy or completenessof the information contained in this document.
Tuesday Senate majority leader Harry Reid said talks had made "little progress", sending stock
markets lower. (BBC News)
4. Its been the little engine that could, driving along an economy long struggling to avert a
double-dip recession. And now, amid growing signs that the U.S. economy is clearly on the
mend, industry leaders are increasingly confident the auto industry is heading in fast-forward
toward some extremely goodthough probably not recordyears. As manufacturers get set
to report extremely strong numbers for October, Toyotas top American executive, Jim Lentz
said he expects to see 2012 end with sales of 14.3 millionabout 1 million more than a year
before and a roughly 40 percent increase from the depths of the recession. (NBC News)
5. The U.S. economy trucked along at a "measured" pace in recent weeks and hiring remained
modest, according to a Federal Reserve report that did little to calm concerns about slow
growth and high unemployment. Details from the manufacturing sector were mixed, the Fed
said in its Beige Book report on Wednesday. Contacts in five of the Fed's 12 districts reported
worries about the outlook for 2013, predicated in part on concerns about a looming "fiscal
cliff" contraction in the U.S. government's budget. (NBC News)
6.
The world economy is in its best shape in 18 months as Chinas prospects improve and the
U.S. looks likely to avoid the so-called fiscal cliff, according to the latest Bloomberg Global Poll
of investors. Two-thirds of the 862 surveyed described the global economy as either stable or
improving. Thats up from just over half who said that in September and is the most since May
2011. (Bloomberg)
7.
BP has sold its stakes in several North Sea oil and gas fields to a state-owned Abu Dhabi
energy group for $1.06bn (663m). Prime Minister David Cameron said the deal highlighted
the "North Sea's position as a global energy hub". The proceeds from BP's sale will help cover
billions of dollars in costs from the 2010 Gulf of Mexico oil spill. Abu Dhabi National Energy
(Taqa) will acquire stakes in the BP-operated Harding, Maclure and Devenick fields. (BBC
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Group Economics& Strategy3rdFloor ZB House,46 Speke Avenue, Box 3198, HarareTel: +263(0)-4-757471-9, 757535-43Fax: +263(0)-4-253815Email: [email protected]
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Disclaimer: This document may be legally privileged and/or confidential and has been prepared for informative purposes only. No liability whatsoever forany loss howsoever arising from the use of this review or its contents or otherwise arising in connection therewith shall be accepted by ZB FinancialHoldings, any of its directors, employees, or associates. Any person who makes use of this document shall be solely responsible for making his or her ownindependent investigation of the issues discussed in this report. ZB Financial Holdings accepts no responsibility whatsoever for the accuracy or completenessof the information contained in this document.
News)
8.
The European Commission has approved the Spanish government's plans to restructure four
troubled banks. Bankia, NCG and Catalunya Banc must cut their loans and investments by
over 60% in the next five years, shut half their branches and shed thousands of staff. A fourth
bank that was in the worst shape, Banco de Valencia, is to be sold to the privately owned
Caixa Bank. The agreement means the banks will now get almost 40bn euros (32bn; $52bn)
in loans from eurozone bailout funds. "Our objective is to restore the viability of banks
receiving aid so that they are able to function without public support in the future," the
European Competition Commissioner Joaquin Almunia said. (BBC News)
9. Megafon, the mobile phone operator controlled by Russia's richest man, has raised $1.7bn
(1.1bn) from a share sale in Moscow and London. Pricing shares at the bottom of its $20-$25
range, the sale values Megafon at $11.1bn. The listing is the biggest by a Russian company
since aluminium producer Rusal raised $2.2bn in Hong Kong in 2010. Russia's second biggest
mobile operator is controlled by Alisher Usmanov, a 30% stakeholder in Arsenal football club.
The shares are listed in London as global depository receipts, which are issued by a bank that
holds the shares on behalf of the investor. (BBC News)
10.Dutch Prime Minister Mark Rutte said Greece may need more financial help to stay in the
euro, retreating from a hard line that included a willingness to consider the countrys exit from
the currency bloc. Echoing his German allies, Rutte declined to speculate on Greece leaving
the 17-nation euro. Wolfgang Schaeuble, the German finance minister, is entirely right that
you have to take a view on the situation of Greece every couple of years again, whether we
are on track and whether extra steps have to be taken, Rutte said in an interview.
(Bloomerg)
11.Swiss National Bank President Thomas Jordan said the franc remains high and weighs on
companies in Switzerland. The franc at its current level still has a high value, Jordan said.
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This burdens a lot of companies -- especially in a phase of moderate global economic
growth.The SNB, which introduced a minimum exchange rate of 1.20 francs per euro in
September 2011, has piled up foreign-currency reserves worth 424 billion francs ($454 billion)
defending that ceiling. The SNB has enforced this franc cap with determination and is
prepared to buy foreign currency in unlimited quantities, Jordan said. (Bloomberg)
12.The European Union is quarreling over thresholds on how big euro-area lenders must be in
order to be designated for direct oversight by the European Central Bank, according to draft
proposals. Nations are at odds over three different size thresholds, according to the document
drawn up by Cyprus, which holds the EUs rotating presidency. Some countries are seeking to
set the bar as low as banks with more than 2.5 billion euros ($3.2 billion) in assets, whileothers are calling for divisions at 20 billion euros or 60 billion euros, according to the text,
dated Nov. 27 and obtained by Bloomberg News. (Bloomberg)
13.BFA-Bankia (BKIA), the biggest Spanish bank set to receive European bailout funds, will cut
about 6,000 jobs, or more than a quarter of its workforce, and forecast a 19 billion-euro ($25
billion) loss for this year. Bankia will also sell 50 billion euros of assets through 2015, force
losses on subordinated debt holders and reduce its branch network by 39%, the Valencia,
Spain-based company said today. The European Commission approved the restructuring plan
as a condition for the 18 billion euros of European bailout funds Bankia is set to receive.
(Bloomberg)
14.Japans retail sales fell in October by the most in 11 months as consumers purchased fewer
cars and televisions, adding pressure on the government to stimulate an economy that may
be entering a recession. Sales fell 1.2% from a year earlier, the Trade Ministry said in Tokyotoday, after a 0.4% advance in September. The median estimate of 10 economists surveyed
by Bloomberg News was for a 0.8% decline. From a month earlier, sales increased 0.7%.
(Bloomberg)
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Disclaimer: This document may be legally privileged and/or confidential and has been prepared for informative purposes only. No liability whatsoever forany loss howsoever arising from the use of this review or its contents or otherwise arising in connection therewith shall be accepted by ZB FinancialHoldings, any of its directors, employees, or associates. Any person who makes use of this document shall be solely responsible for making his or her ownindependent investigation of the issues discussed in this report. ZB Financial Holdings accepts no responsibility whatsoever for the accuracy or completenessof the information contained in this document.
15.South Korean manufacturers confidence fell to the lowest level in more than three years as
gains in the won threaten to slow a rebound in exports and the country prepares to vote for a
new president next month. An index measuring expectations for December fell to 67 from 70for November, the lowest since April 2009, the Bank of Korea said in a statement in Seoul
today. A reading below 100 indicates that pessimists outnumber optimists. (Bloomberg)
16.Indonesia, the worlds biggest producer of palm oil, is set to surpass India as the largest user
next year as economic growth boosts demand. Consumption may climb 13% to 8.5 million
metric tons from 7.5 million tons this year, Indonesias Deputy Trade Minister Bayu
Krisnamurthi said by text message. That exceeds U.S. government estimates of 7.95 million
tons for India and 7.87 million tons for Indonesia in the 2012-2013 year. (Bloomberg)
17.
Argentina, which is locked in a court battle over its debt, has received more time to argue
against paying investors over its defaulted debt. The nation is appealing against a US ruling
ordering it to pay $1.3bn (800m) to foreign creditors holding bonds that it defaulted on in
2001. Argentina had been given until 15 December to reimburse the hedge funds, which
shunned two previous debt swaps. But the New York court has now granted a stay while itsappeal is heard. (BBC News)
18.
Australian business investment slowed less than economists forecast last quarter as stronger
mining spending outweighed a decline in manufacturing. Capital spending gained 2.8% from
the second quarter, when it rose 3.4%, the Bureau of Statistics said in Sydney today. That
compares with the median forecast for a 2% gain in a Bloomberg News survey of 20
economists. (Bloomberg)
19.Brazil signaled it plans to keep its benchmark rate at a record low for the longest period in
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Disclaimer: This document may be legally privileged and/or confidential and has been prepared for informative purposes only. No liability whatsoever forany loss howsoever arising from the use of this review or its contents or otherwise arising in connection therewith shall be accepted by ZB FinancialHoldings, any of its directors, employees, or associates. Any person who makes use of this document shall be solely responsible for making his or her ownindependent investigation of the issues discussed in this report. ZB Financial Holdings accepts no responsibility whatsoever for the accuracy or completenessof the information contained in this document.
history to prop up an economy heading toward its worst two-year performance in a decade.
Policy makers last night kept the Selic rate at 7.25%, ending the second-longest streak of
reductions in an effort to prevent inflation from accelerating. The unanimous decision, which
was forecast by all 75 economists surveyed by Bloomberg, took into account thethe balance
of risks for inflation, the board said in its statement, which was almost identical to last
months announcement. (Bloomberg)