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Thursday 03rd of May 2018 |
Morning, Africa |
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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 http://www.rich.co.ke |
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*FED KEEPS RATES UNCHANGED, SAYS INFLATION `MOVED CLOSE' TO 2% via @Lee_saks Africa |
*FED SEES INFLATION RUNNING NEAR `SYMMETRIC' GOAL MEDIUM TERM
Home Thoughts
Its just myself and the Two Golden Retrievers at one for a few days. Its not very often that I ave been all on my own at Home. Far prefer having the Missus about and the Daughters too even if they are typically locked into their own redoubts doing their own thing and occasionally surfacing to be fed.
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Kim Jong Un is masterfully playing Trump's game @business Law & Politics |
Donald Trump will soon sit down to the most consequential negotiation of his career if, as expected, he becomes the first U.S. president to meet a North Korean leader since the devastating war on the peninsula in the 1950s. Trump, of course, wrote a book on dealmaking, only this time nuclear war and peace will hang in the balance, rather than a real estate contract. And on the evidence so far, his sparring partner Kim Jong Un has mastered The Art of the Deal, too. In fact, frequent North Korea visitor Dennis Rodman told TMZ he gave Kim a copy of the book for his birthday in 2017. Trump offered 11 pieces of advice to budding negotiators in his 1987 book, and Kim seems to have put at least half of them to good use, starting with the first: Think Big. It was Kim who proposed a meeting with Trump earlier this year as he sought to de-escalate a spiral of threats and counterthreats over a series of nuclear and ballistic missile tests. What nobody knows, as new national security adviser John Bolton acknowledged on April 29 on CBS’s Face the Nation, is whether Kim really means to put North Korea’s complete, verifiable, and irreversible disarmament on the table. The language on denuclearization that Kim has used isn’t new, and longtime observers of North Korea’s seemingly endless dance with the U.S. are skeptical. His true goals may instead be to split the U.S. from its allies in South Korea and Japan, loosen the economic sanctions that are strangling his country’s economy, and string out nuclear talks until the White House has a less explosive occupant. In some of those areas, Kim has already changed the conversation while giving away very little, beyond a moratorium on nuclear tests that may no longer be needed. “He’s done this masterfully, obviously wedging and decoupling to make daylight between these alliances,” says Jonathan Berkshire Miller, a senior visiting fellow at the Japan Institute of International Affairs, a Tokyo-based think tank. Next up among the pages Kim already seems to have torn from Trump’s dealmaking book: Know Your Market—in this case Trump. Kim appears to have recognized that the latest White House occupant would be more willing than any before (and most likely after) to ignore both North Korea’s appalling human-rights record and warnings from the U.S. foreign policy community about the risks of holding such a meeting. Quickly organized and without scripted outcomes, the summit is a high-stakes endeavor, especially given Pyongyang’s past history of double-dealing over nuclear commitments. “I’ve been through three North-South summits,” says Daniel Sneider, a lecturer in East Asian studies at Stanford, recalling that Kim Dae-jung, a former South Korean president, won the Nobel Peace Prize after a similarly ballyhooed meeting with North Korea in 2000. “Does it lead to denuclearization? I don’t think so.” This is where Kim has the most to gain. Sanctions have exacted a severe toll on North Korea. While no reliable official data exist for the economy—outside estimates have to be made by extrapolating from consumption of cooking oil, among other creative methods—this is undoubtedly a poor country. According to South Korea’s central bank, North Korea’s nominal gross domestic product was about $30 billion ($1,300 per capita) in 2016, compared with $1.4 trillion (more than $27,000 per capita) in the South. United Nations sanctions have played a role, driving exports down to $1.9 billion last year from as much as $3.5 billion in 2012, according to the International Monetary Fund. That’s left North Korea reliant on China for 86 percent of its exports, more than twice the share from a decade ago. The resulting squeeze on foreign currency reserves may have drawn Kim to the negotiating table, according to analysis by Bloomberg Economics. One rule in Trump’s book that neither man seems to be following is to maximize alternatives in case things go wrong during negotiations. An acrimonious collapse of talks, between men who not long ago were deriding each other as the “Little Rocket Man” and “mentally deranged,” could leave the peninsula as close to war as if there had been no talk of a summit at all.
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30-APR-2018 :: "A new history starts now. An age of peace, from the starting point of history." Law & Politics |
The Events that took place on Friday at the truce village of Panmunjom and during the Inter-Korean Summit were breathtaking for the Hollywood Optics. The Opening Shot of Kim Jong Un surrounded by a Phalanx of North Korean Officials [later replayed as Chairman Kim sat in his Presidential Vehicle surrounded by his Ninja bodyguards] was almost as good as the opening Sequence in PT Anderson's Boogie Nights [Steadicam operator Andy Shuttleworth]. This was Cinema of the highest level which is no surprise when You consider that Kim Jong-Il the Father was obsessed with Cinema and amassed arguably the world’s largest personal film collection: over 20,000 bootlegged 35mm screening copies. Kim Jong-Il also had a penchant for Hennessy Paradis cognac and for two years in the mid-1990s, he was the world's largest buyer of Hennessy Paradis cognac, importing up to $800,000 of the stuff a year. Kim Jong-Il began his career as the head of the state’s propaganda and agitation department and its clear that Kim Jong-Un's sister Kim Yo Jong who holds the same role and evidently handles all the optics, is a chip off the old Block. Friday was tip-top Geopolitical Optics. Mike Pompeo, the newly minted US Secretary of State [His predecessor was fired via Twitter] had visited Pyongyang the previous week and pronounced; that the young North Korean leader was "a smart guy who's doing his homework"
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China installs missiles in South China Sea, says report @FT Law & Politics |
China has installed long-range anti-ship and anti-aircraft missiles on three of its artificial islands in the South China Sea, further solidifying Beijing’s military domination of the disputed waters, according to a news report.
US network CNBC on Wednesday cited sources with direct knowledge of the situation, saying that the deployment of the missiles had occurred within the past 30 days. If true, it would represent a dramatic military escalation in the region by China, which claims 80-90 per cent of the disputed waters of the South China Sea.
China has in the past said it would not militarise the islands. However, it has also said that the islands were its sovereign territory and it had the right to defend them.
CNBC said the missiles had been deployed at Fiery Cross Reef, Subi Reef and Mischief Reef — three islands that have been dredged out of coral reefs in the past five years.
But experts said it was unclear why Beijing was choosing now to deploy the missiles. “That is the $64,000 question, why now?” said Bonnie Glaser of CSIS, “But I’m not convinced there was any particular trigger . . . The Chinese are on their own timing for when they want to do these things,” she said.
“They think they can get away with it and they are probably right,” she added. “China continues to expand their control over the air and sea in the South China Sea.”
While short-range weapons have been deployed temporarily in the Spratlys in the past, this — if true — would mark the first time that long-range, anti-ship and anti-aircraft missiles have been based there. The militarisation further cements China’s military control over the sensitive sea lanes, through which pass much of the world’s seaborne oil cargoes.
CNBC said China’s YJ-12B anti-ship cruise missiles would allow it to strike vessels within 295 nautical miles, while its HQ-9B long-range surface-to-air missiles could target aircraft, drones and cruise missiles within 160 nautical miles.
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For now though the tide has turned. The dollar has surged over three percent in two weeks @ReutersJamie International Trade |
For now though the tide has turned. The dollar has surged over three percent in two weeks and U.S. Treasury yields US10YT=RR - a major driver of global borrowing costs - have broken above three percent for the first time in four years.
That has caused familiar jitters about the mountain of dollar-denominated debt that has been issued in the developing world in recent years.
They have borrowed at vastly cheaper rates by using dollars, but the rise in the U.S. currency now makes the repayments more costly unless they have been hedged.
The Bank for International Settlements this week said that a record 22 percent surge in debt sales last year pushed up the annual growth in EM dollar debt 10 percent to $3.7 trillion.
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The company burned through more than $1 billion for the third time in four quarters. International Trade |
Musk, 46, said he won’t need to go back to equity or debt markets this year to seek additional funds for Tesla, but crossing Wall Street may be a bad idea. The billionaire wooed investors into buying $1.8 billion worth of bonds in August, which fell within a week. Five months earlier, Tesla sold about $1.25 billion worth of stock and convertible debt.
Musk aimed his sharpest words at Toni Sacconaghi of Sanford C. Bernstein, who rates Tesla the equivalent of a hold. After the analyst asked a question about whether the company could reach its 25 percent gross margin target on the Model 3, Chief Financial Officer Deepak Ahuja said recently imposed tariffs, more expensive commodities and higher labor costs factored into the company’s guidance.
“Yeah, but we’re talking about a 3 percent to 5 percent difference, and that’s something that we’ll solve like within three months to six months later,” Musk said. “So don’t make a federal case out of it.”
Sacconaghi pressed ahead with another query about Tesla lowering its 2018 capital expenditure projection to $3 billion, from $3.4 billion. Ahuja said the carmaker would spend less by simplifying its approach to automation and curtailing infrastructure outlays.
“And so where specifically will you be in terms of capital requirements?” Sacconaghi said.
“Excuse me. Next. Next,” Musk said to the call operator. “Boring, bonehead questions are not cool. Next?”
“I think that if people are concerned about volatility, they should definitely not buy our stock,” Musk replied. “I’m not here to convince you to buy our stock. Do not buy it if volatility is scary. There you go.”
“First of all, I think moats are lame,” Musk said. “They’re like nice in a sort of quaint, vestigial way. But if your only defense against invading armies is a moat, you will not last long. What matters is the pace of innovation. That is the fundamental determinant of competitiveness.”
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Currency Markets at a Glance WSJ World Currencies |
Euro 1.1987 Dollar Index 92.51 The US Dollar is up 3.6% in just over 2 weeks. And now stand at its highest level since Dec 2017 Japan Yen 109.59 Swiss Franc 0.9970 Pound 1.3605 Aussie 0.7522 India Rupee 66.615 South Korea Won 1075.64 Brazil Real 3.5510 Egypt Pound 17.6465 South Africa Rand 12.6519
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Telegram token sale is likely a victim of rising ICO scrutiny @business World Currencies |
Telegram Group Inc., an encrypted messaging app, has reportedly scrapped plans to issue digital tokens in a public sale after raising a whopping $1.7 billion privately.
“From a regulatory perspective, I think a public sale is considerably riskier for Telegram than a private sale,” Bogart wrote in an email. “Considering the amounts raised by Telegram via private sale, there’s really no need to incur the additional risk of a public sale.”
Telegram, which has become a popular platform for ICO teams and investors to communicate, held two rounds of private sales in February and March, raising $850 million in each round from fewer than 200 investors. The British Virgin Islands-registered firm filed documentation to the SEC known as Form Ds in compliance with Rule 506(c), which is an exemption for private placements, and the minimum investment in the March sale was $1 million.
ICOs, which have raised more than $7 billion so far this year, have been hailed by crypto enthusiasts as a way to democratize venture investments. In that sense, Telegram’s fund raiser goes against what ICOs were meant to achieve, Erik Voorhees, founder and chief executive officer of cryptocurrency exchange ShapeShift, said in a tweet. “The SEC has created an environment where only the rich (aka “accredited investors”) are able to get access to financial deals. The plebeians must stick to the lottery,” Voorhees said.
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Gone, though, are the days when a French businessman's little difficulties on the continent can be solved by a discreet call from the Elysee Palace. It is Mr Bollore who has been abandoned @FT Africa |
Unfortunately for Mr Bolloré, the world of Francafrique has crumbled. François Hollande, the former president, sought to put Franco-African relations on a more modern footing, though his plans were partially sidetracked when Paris resorted to old-style military intervention after jihadis over-ran northern Mali in 2012.
Emmanuel Macron is having another go. Pierre Haski, an expert on Franco-African relations, says the president has been influenced by advocates of closer strategic ties between Europe and Africa. Mr Macron wants to de-emphasise the military and rebuild commercial links, minus the murk that characterised Francafrique.
Those attempts have run into problems, born of the lingering resentment in former colonies that is just as potent as the admiration identified by Mr Bolloré. Mr Macron’s assertion in a speech in Burkina Faso that Africa has “civilisational” challenges provoked accusations of racism.
Despite such teething problems, Mr Macron rightly emphasises that he is the first president born after France’s former colonies gained independence. The 40-year-old president can say, and almost with a straight face: “I am from a generation that doesn’t come to tell Africans what to do.”
Mr Macron would strongly contest Mr Bolloré’s assertion that France risks abandoning Africa. Gone, though, are the days when a French businessman’s little difficulties on the continent can be solved by a discreet call from the Elysée Palace. It is Mr Bolloré who has been abandoned.
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The Challenge for Ethiopia's New Leader: Unleash the Economy Africa |
Hailemariam said he last year introduced a proposal to the ruling coalition’s 180-member decision-making council to partially liberalize all but the financial sector of the economy, including the state telecommunications monopoly EthioTelecom.
While the debate isn’t finished, Hailemariam said he’s laid the foundations for partial liberalization. “I am sure Abiy is going to complete it,” he said in an interview in the capital, Addis Ababa.
A problem hampering growth has been foreign-exchange shortages, a result, Hailemariam said, of a widening gap between exports and imports. The country’s trade deficit quadrupled to $14 billion in 2016 from $3.19 billion a decade earlier, as imports grew by a similar margin, according to United Nations data.
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On Sale: This Year's Juiciest Dollar Bond, Paying Close to 10% Africa |
Angola came to market on Wednesday morning offering a 30-year Eurobond with initial price talk of around 9.625 percent, along with a 10-year tranche at 8.5 percent.
The deal, which may price on Wednesday, is set to be the juiciest from a sovereign for a while. The last government to sell a dollar bond yielding more than 10 percent was Ghana back in October 2015, while Ecuador issued at 9.65 percent in December 2016. This year, the highest-yielding deal has come from Kenya, which sold a 30-year tranche at 8.25 percent in mid-February.
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Crown Paints reports FY 2017 EPS +69.73% Earnings Africa |
Par Value: 5/- Closing Price: 85.00 Total Shares Issued: 71181000.00 Market Capitalization: 6,050,385,000 EPS: 3.14 PE: 27.07
Crown Paints FY 2017 results through 31st December 2017 vs. 31st December 2016
Total Assets 5.871607b vs. 5.059029b +16.062% Equity 1.757616b vs. 1.562116b +12.515% FY Revenue 7.351326b vs. 7.347557b +0.051% FY Profit before tax 398.129m vs. 272.043m +46.348% FY Profit for the year 223.294m vs. 131.796m +69.424% FY Other comprehensive income 6.371m vs. 101.630m -93.731% Basic and diluted EPS 3.14 vs. 1.85 +69.730% Cash and cash equivalents at the end of the year [114.676m] vs. 71.258m -260.931% Final dividend 0.60 vs. 0.60 –
Company commentary
Paint Sector experienced low growth which led to stiff competition Tanzania - foreign investment and as well as domestic market sentiments that are quite negative to business.
Conclusions
Strong results theconext of a +0.051% Year on Year Revenue expansion.
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Deacons reports FY 2017 EPS [6.81] Earnings Africa |
Par Value: Closing Price: 2.35 Total Shares Issued: 123558228.00 Market Capitalization: 290,361,836 EPS: -6.82 PE:
Deacons (East Africa) PLC full year 2017 results through 31st December 2017 vs. 31st December 2016 FY Revenue 2.005767b vs. 2.309091b -13.136% FY Cost of sales [1.344997b] vs. [1.295175b] +3.847% FY Gross profit 660.770m vs. 1.013916b -34.830% FY Other income 13.562m vs. 16.080m -15.659% FY Total income 674.332m vs. 1.029996b -34.531% FY Administrative expenses [1.484191b] vs. [1.372886b] +8.107% FY Net foreign exchange loss [13.341m] vs. [42.167m] -68.362% FY Total expenses [1.497532b] vs. [1.415053b] +5.829% FY Operating [Loss] before taxation [832.200m] vs. [385.057m] -116.124% FY [Loss] for the year [841.428m] vs. [276.345m] -204.485% Basic and diluted EPS [6.81] vs. [2.24] -204.018% Total Assets 1.552835b vs. 2.281680b -31.943% Shareholders’ Funds 330.018m vs. 1.172632b -71.857% Cash & cash equivalents as at 31st December [103.389m] vs. [12.343m] -737.633% No dividend
Company Commentary
Group faced a challenging economic environment during the year 2017 in Kenya. Formal retail sector in Kenya had further challenges that depressed its overall performance. -> Over supply of formal retail property leading to cannibalisation -> Collapse of Key Anchor Tenants that reduced customer Footfall into sopping malls by over 60% -> Increased competition and change in customer shopping trends
Group also faced disruptions in its supply chain following the decision by Mr. Price to reduce trading margins, which led to cash flow constraints that negatively affected performance of all brands. Group revenues declined by 303m MR Price brand alone contributed a decline of 324m with a margin loss of 154m as a result of discontinued supply of stock by the Franchisor. MR Price fixtures and inventory impairment amounted to 150.6m with an overall loss contribution of 78% to the bottom line Business bore further impairment from discontinued operations of the baby sop store at the Junction Mall. and the Angelo store at the Sarit centre of 15m F&F brand continued to post positive results across the Chain with a revenue of 131m in 2017 Board has appointed a Transaction Advisor to restructure the Capital Base.
Conclusions
I remain of the view that E-Commerce is a big Disruptor.
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