|Friday 10th of August 2018
Register and its all Free.
If you are tracking the NSE Do it via RICHLIVE and use Mozilla Firefox
as your Browser.
0930-1500 KENYA TIME
Normal Board - The Whole shebang
Prompt Board Next day settlement
Expert Board All you need re an Individual stock.
The Latest Daily PodCast can be found here on the Front Page of the site
Where's the money coming from, @Elonmusk? @business
The unusual chain of events made it seem as if Musk had essentially
done all of this on his own—an idea that wasn’t entirely contradicted
by a 57-word statement, released the following day by six of the
company’s nine directors, which contended that discussions on the
possible buyout had started only a week earlier. The statement was so
carefully worded that it was unclear whether there had been in-depth
discussions or if Musk had simply mentioned it a few times before
being moved to tweet. The board didn’t indicate who would provide the
funding, only saying that funding had been “addressed.” The board,
which has been criticized by shareholder rights activists for being
largely composed of people close to Musk, including his brother,
Kimbal (not among those who signed the statement), also didn’t mention
whether a special committee had been formed to consider the proposal.
To buy Tesla at the proposed valuation, Musk, who owns about 20
percent of the shares, would need to come up with $66 billion—a
daunting sum even for someone with the auto chief’s capacity for
virtuosic self-promotion. The company already has $10 billion in debt,
and because Musk has promised to make huge investments in the coming
years to build a factory in China, develop a compact SUV, and roll out
a commercial semitruck, the automaker will require billions more.
Tesla’s credit was downgraded by Moody’s Corp. earlier this year, and
Musk has spent the past few months aggressively cutting costs to avoid
having to raise additional funds in 2018. Now he’ll have to come up
with tens of billions of dollars even before the company has proven it
can consistently manufacture its less expensive Model 3 sedan at
production rates high enough to make the car profitable.
The universe of possible funders is small. Tesla is unprofitable,
making it hard to see why traditional leveraged buyout investors—who
pay off buyout debt with the cash flow of companies they take
private—would be interested in backing a deal. No bank or investment
fund so far has indicated it was aware of Musk’s plan. That leaves a
handful of large tech companies—Apple, Google, and SoftBank—and
sovereign wealth funds as possible candidates. On Aug. 8, Bloomberg
News reported that Musk had met in 2017 with Masayoshi Son, CEO of
SoftBank Group Corp., about a potential deal, which didn’t
Saudi Arabia is starting to weaponize its wealth via @bopinion
Law & Politics
Indeed, it’s this apparent Saudi willingness to “weaponize” its
overseas investments that should give western governments and business
leaders pause for thought everywhere – and might explain in part why
Canada’s allies have been slow to offer backing to Freeland and her
prime minister, Justin Trudeau.
We’ve seen this style of economic warfare before – in the 1970s, Arab
states wielded the “oil weapon” – but this latest attack comes after
a dramatic increase in Riyadh’s foreign investments.
How to lose $3 billion of Bitcoin
Accusations of tax evasion and police corruption, a kidnapper who was
kidnapped, a fugitive politician, and billions in bitcoin lost. This
is crypto-trading Gujarat-style.
The ingredients are part of an investigation in Indian Prime Minister
Narendra Modi’s home state into allegations that investors poured cash
into a bitcoin-based Ponzi scheme that could exceed the country’s
largest banking scandal. The fallout extends as far as Texas and has
embroiled a former lawmaker, tarnishing Modi’s ruling party months
before an election.
Gujarat’s Surat, formerly a large seaport and now a center for
diamonds, is at the heart of the scandal.Photographer:Karen
It began in February, when property developer Shailesh Bhatt charged
into the Home Minister’s office in Modi’s home state of Gujarat,
claiming he had been kidnapped by a group of policemen and told to pay
200 bitcoin, worth some $1.8 million at the time, for his release. He
said he had nowhere else to go.
The state’s elite Criminal Investigation Department was called in and
the evidence it has uncovered points to a potential fraud on an epic
scale. Eight policemen have been indicted and suspended pending trial.
The abduction was allegedly spearheaded by Bhatt’s associate, Kirit
Paladiya, and masterminded by Paladiya’s uncle Nalin Kotadiya, a
former lawmaker in Modi’s ruling Bharatiya Janata Party, according to
Ashish Bhatia, the lead CID investigator. Bhatt has been charged too,
as the allegations of kidnapping widened.
Paladiya is now in jail, facing charges of abduction and extortion,
and Bhatt and Kotadiya are both absconding, according to police.
Kotadiya posted a video via Whatsapp in April denying wrongdoing and
saying he’d informed authorities about the crypto scam, said Prashant
Dayal, a senior Gujarati journalist who broke the story.
In the video, reposted on Youtube, Kotadiya says Bhatt is responsible
for the scam and threatens to release evidence that could implicate
other politicians. Both Bhatt and Paladiya have denied wrongdoing,
according to their lawyers.
Between late 2016 and early 2017, Bhatt invested in BitConnect, a
cryptocurrency firm that was being promoted in Gujarat by a man called
Satish Kumbhani, according to Bhatia, the CID investigator, in an
interview at his office late June.
Kumbhani is one of the founders of BitConnect, which has allegedly
scammed individuals across the globe, according to Crypto Watchdogs, a
group of six investors who’ve filed a U.S. federal lawsuit against the
company. The firm recruited clients worldwide to deposit bitcoin and
receive BitConnect coins they could lend at interest rates of more
than 40 percent a month. The interest they earned was higher if they
recruited others to invest. Attempts to contact the company and
Kumbhani for comment were unsuccessful.
As the price of bitcoin soared last year from less than $1,000 to more
than $19,700, so did BitConnect’s value. Bhatt and other investors in
Gujarat poured bitcoin worth $3.2 billion into Bitconnect, according
The vast inflows from Indian investors were partly the result of
Modi’s shock move in November 2016 to invalidate banknotes worth 15
trillion rupees in an effort to curb tax evasion, according to a
chartered accountant in Gujarat. Modi, who faces federal elections in
early 2019, ruled the state as chief minister for more than a decade
before becoming prime minister in 2014 with the promise of stamping
As a result of Modi’s 2016 demonetization, about 45 billion rupees
($650 million) flowed to Gujarat’s port city of Surat, to be hidden
away in assets including cryptocurrencies, said the accountant, who
asked not to be identified because his clients include some of the
city’s biggest diamond and textile traders.
Surat, the heart of the scandal, is famed for its entrepreneurial
merchants who travel the world to set up a “dhandha,” or family
business. Their tight-knit communities dominate Antwerp’s diamond
trade and own a quarter of U.S. motels.
In the days following Modi’s demonetization -- when Indians were given
about 60 days to bank their higher-value banknotes or lose them --
Google marked a surge in queries from the country on how to launder
untaxed cash, or black money. Most of the searches came from Gujarat,
Google Trends show.
The U.S. forecasts a 50% cut in Iran oil sales, sources say @business
The assessment forecasts a range of likely cuts of 700,000 to 1
million barrels a day -- a significant reduction for the Islamic
Republic but short of the announced U.S. goal of halting all sales of
Iranian crude. Iran exported an average of about 2.1 million barrels
of oil per day over the last year, according to data compiled by
Bloomberg. Any significant reduction would be a blow to Iran’s
Pakistan poised for $4bn loan from Saudi-backed bank @isdb_group @FT
Pakistan plans to borrow more than $4bn from the Saudi-backed Islamic
Development Bank as part of its attempts to restore dangerously low
stocks of foreign currency.
Two officials have told the Financial Times that the Jeddah-based bank
has agreed to make a formal offer to lend Islamabad the money when
Imran Khan takes over as prime minister. They added that they expect
Asad Umar, Mr Khan’s proposed finance minister, to accept.
“The paperwork is all in place,” said one senior adviser in Islamabad.
“The IDB is waiting for the elected government to take charge before
giving their approval.”
The person added that the loan would not cover Pakistan’s expected
financing gap of at least $25bn during this financial year but was “an
Mr Khan, Pakistan’s former cricket captain, is expected to take over
as prime minister in the coming days, after his Pakistan
Tehreek-e-Insaf party won the most seats in last month’s election —
though it fell short of an outright majority.
One of his first jobs will be to repair the country’s balance of
payments problem, with high imports and stagnant exports having bled
the country of much of its foreign exchange reserves.
Speaking to reporters in Islamabad this week, Mr Umar, who served as
the PTI’s shadow finance minister while in opposition, warned: “The
situation is dire. We’ve got $10bn dollars of central bank reserves,
we’ve got somewhere between $8bn and $9bn in short-term liabilities,
and therefore your net reserves are close to nothing.”
Officials have already drawn up plans to borrow up to $12bn from the
International Monetary Fund — though such a bailout is likely to come
with strings attached, such as a demand to see the details behind
billions of dollars’ worth of Chinese loans.
Mr Umar is therefore exploring what other options remain open to him,
of which the IDB loan is one. Officials said the loan would be used
mainly to pay for oil imports, with higher crude prices having
contributed to Pakistan’s problems.
One official at the Pakistani central bank who has been involved in
negotiations with the IDB said the loan had the backing of the Saudi
government “which wants to play a part in rescuing Pakistan from its
Islamabad and Riyadh have moved closer in recent months after Pakistan
agreed to send an undeclared number of troops to “train and advise”
security forces there. The Pakistan government insists that the
soldiers will not be used to fight in Yemen however, something the
Saudis had previously requested.
Despite the promise of money from the IDB, economists warn that Mr
Khan’s new government will still have to enact potentially unpopular
spending cuts and tax rises to help repair the government’s balance
“The budget deficit shot up to about 7 per cent of gross domestic
product during the last financial year,” said Waqar Masood Khan, a
former finance ministry official. “Bringing that down to the target of
4 per cent is not going to be easy.”
06-AUG-2018 :: The Indian Ocean Economy and a Port Race @TheStarKenya
Today from Massawa, Eritrea [admittedly on the Red Sea] to Djibouti,
from Berbera to Mogadishu, from Lamu to Mombasa to Tanga to Bagamoyo
to Dar Es Salaam, through Beira and Maputo all the way to Durban and
all points in between we are witnessing a Port race of sorts as
everyone seeks to get a piece of the Indian Ocean Port action.
China [The BRI initiative], the Gulf Countries [who now appear to see
the Horn of Africa as their hinterland], Japan and India [to a lesser
degree] are all jostling for optimal ‘’geo-economic’’ positioning.
Kabila names his dauphin @africa_conf
The President finally named a successor at the eleventh hour and ended
the third-term controversy. Storms still lie ahead
The drama over who will be allowed to run in the presidential
elections due in December has dragged the political system to the
brink as growing armed conflict increase instability and fear. But on
8 August President Joseph Kabila approved his former interior minister
Emmanuel Ramazani Shadary as his chosen successor. A regime hardliner
and securocrat from the eastern province of Maniema, Shadary is
expected to maintain a tight grip on the security apparatus and
protect Kabila's financial and other interests if he wins. He was
placed under sanctions by the European Union in 2017 for his role in
brutally supressing street protests. The secretary general of Kabila's
People's Party for Reconstruction and Democracy, Shadary may be
intended to keep the presidential seat warm for Kabila, much in the
way that Russian President Vladimir Putin stepped down as president to
avoid breaching a two-term limit, before taking the job again after a
Fears rise that Kabila will remain Congo's 'string-puller' @FT
Joseph Kabila broke a two-year silence on Wednesday by finally
indicating that he would not run for re-election in the Democratic
Republic of Congo’s long-delayed polls in December.
The president’s decision, which was welcomed by opposition politicians
and western governments, opens the door to a first transfer of power
in the country in 17 years. But Mr Kabila’s choice of successor has
raised questions about his true intentions and willingness to
“Ultimately Kabila ceded to national and international pressure,”
Martin Fayulu, an opposition leader and presidential candidate, told
the Financial Times from Kinshasa. “He could not resist the Congolese
people and the international community any longer.”
Mr Kabila was supposed to step down in 2016 but elections were delayed
and he clung to power, leading to violent protests across the country,
a slowdown in economic activity and creeping isolation. Last month Mr
Kabila delayed a visit by António Guterres, the UN secretary-general,
and refused to meet Nikki Haley, the US ambassador to the UN.
If elections are held in December and Mr Kabila hands over the reins
to a democratically elected successor, Congo could begin rebuilding
those fractured relations. Ms Haley welcomed Wednesday’s announcement
as a “historic opportunity” for Congo to grasp its first, peaceful
transfer of power.
But Mr Kabila’s choice of Emmanuel Ramazani Shadary to represent his
ruling Common Front for Congo suggests he may have other ideas.
A former minister of interior, Mr Shadary was sanctioned by the EU in
2017 for his role in repressing political protests. He is also
considered to be one of Mr Kabila’s closest allies.
“Shadary is a divisive figure, both within the FCC grouping and
internationally,” said Indigo Ellis, an Africa analyst at Verisk
Maplecroft. “Kabila will, therefore, almost certainly remain the
string-puller behind the scenes.”
A founding member of the president’s party and former governor of the
sparsely populated Maniema province in the east of the country, Mr
Shadary has been close to Mr Kabila since the president’s father
seized power in 1997, but lacks his own political base.
Some members of the opposition believe that lack of personal support
is the reason that more powerful figures in the coalition, such as
Aubin Minaku, the head of the parliament, and the former prime
minister Matata Ponyo Mapon, were overlooked.
“He [Shadary] does not have an enormous base that would bother Kabila,
and he does not have the same wealth as others,” said opposition
leader Mr Fayulu.
Mr Kabila’s Common Front for Congo, also known as the FCC, is a
sprawling coalition of more than a dozen political parties, held
together by the access to power and public positions that loyalty to
the president provides. The selection of a successor therefore risked
fracturing that loyalty and was shrouded in secrecy.
The coalition gathered at the president’s farm on Tuesday for two
hours but still no name emerged. Discussions were restricted to a tiny
coterie of trusted advisers.
“Mr Shadary was chosen by Kabila and Kabila alone,” said Patrick
Muyaya, a lawmaker and member of the FCC. “I don’t think the coalition
would have selected someone under sanction by the EU,” he told the FT
For now the coalition appear to have accepted the choice.
What happens in Congo in the next five months is critical for regional
stability and parts of the global economy. Congo neighbours nine
countries and violence can easily spill over its borders. Fighting in
the central Kasai region last year alone saw tens of thousands of
Congolese flee across the frontier into Angola.
Congo is also Africa’s biggest copper producer and the source of more
than 60 per cent of the world’s cobalt, the critical ingredient in the
lithium-ion batteries needed to power the next generation of electric
The country has received billions of dollars in investment since Mr
Kabila came to power in 2001 but still struggled to overcome decades
of conflict and corruption. Analysts say that a smooth exit is vital
to ushering in a new period in Congo’s complicated history.
The prognosis is mixed. Mr Kabila’s promised departure ends two years
of uncertainty and should mean that further US sanctions against his
inner circle and an escalation in international tensions are avoided.
At the same time it sets the stage for a vicious electoral battle
between a frustrated opposition and a powerful but fragmented ruling
“President Kabila not presenting himself as a candidate is a crucial
first step” said Ida Sawyer, deputy Africa director at Human Rights
Watch. “But tough pressure from DR Congo’s partners must continue for
the country to see a truly democratic transition and to prevent more
repression and bloodshed.”
Zimbabwe The great observer gamble @Africa_Conf
Mnangagwa's team may have done enough to allow the most enthusiastic
business people and governments to step up re-engagement. Much will
depend on the strength of the opposition's case at the election
tribunal and the credibility of its handling by the courts.
But with US sanctions set to continue, there seems little prospect in
the short-term of a deal on Zimbabwe's arrears to the World Bank and
African Development Bank, let alone new flows of cash from the IMF (AC
Vol 58 No 24, Destruction in his wake). Contrary to the state-owned
press insistence, there are no plans for a $2 billion credit line from
Beijing to reboot the economy, despite its strong approval of
There is a hard-headed view that Zimbabwe's economic morass is too
deep, and its financial structures and parallel currency systems too
fragile to be susceptible to a unilateral fix. Instead, new flows of
cash, some from highly questionable sources, will come in.
Financial toes will be dipped in the water, in search of what could be
spectacular returns if the deals are cleverly structured. How these
will help Zimbabweans, with the public health and education systems in
chaos and jobless rates close to 90%, is another question.
What may strike next, the @WHO fears, is something no doctor has ever heard of, let alone knows how to treat. It's come to be known as Disease X. @WIRED
In 2013 a virus jumped from an animal to a child in a remote Guinean
village. Three years later, more than 11,000 people in six countries
were dead. Devastating—and Ebola was a well-studied disease. What may
strike next, the World Health Organization fears, is something no
doctor has ever heard of, let alone knows how to treat. It’s come to
be known as Disease X.
Since René Descartes adopted the letter x to denote a variable in his
1637 treatise on geometry, it has suggested unknowability: the
mysterious nature of x-rays, the uncertain values of Generation X, the
conspiratorial fantasies of The X-Files. It’s also been used as code
for experimental—in the names, for instance, of fighter jets and
submarines. That’s an apt association: Disease X may leapfrog from
animals to humans like Ebola, but it could instead be engineered in a
lab by some rogue state.
Still, far from asking us to resign ourselves to an unpredictable
future horror, Disease X is a warning to prepare for the worst
possible scenario as best we can. It calls for nimble response teams
(a critical failure in the Ebola epidemic) and broad-spectrum
solutions. The WHO has solicited ideas for “platform technologies,”
like plug-and-play systems that can create new vaccines in months
instead of years. As Descartes showed us in mathematics, only by
identifying an unknown can we begin to find an answer.
@StanbicKE reports H1 EPS 2018 +104.78% Earnings
Par Value: 5/-
Closing Price: 92.00
Total Shares Issued: 395321638.00
Market Capitalization: 36,369,590,696
The Kenyan Banc assurance model includes CFC Bank, CFC Financial
Services and Heritage Assurance.
Stanbic Holdings H1 2018 Earnings here
H1 Loans and Advances [Net] to Customers 154.034135b versus 133.516337b +15.367%
H1 Intangible assets - Goodwill 9.349759b versus 9.349759b
H1 Total Assets 278.780976b versus 234.258513b +19.005%
H1 Deposits from Banks and customers 215.772057b versus 177.860070b +21.315%
H1 Total Income 11.178106b versus 9.169368b +21.907%
H1 Non-Interest Revenue 5.569913b versus 4.156997b +33.9988%
H1 Credit Impairment [253.269m] versus [1.817986b]
H1 Profit Before Tax 5.194482b versus 2.207897b +135.26%
H1 Profit After Tax 3.552326b versus 1.737229b +104.48%
H1 EPS 8.99 versus 4.39 +104.78%
H1 Dividend 2.25 versus 1.25 +80%
Cash and Cash Equivalents at period End 45.932735b versus 18.579702b
They were lapping a very big impairment in 2017 [related to South
Sudan if I recall correctly]
These are bulked up earnings which promise a lot.