BIG DEALS BIG BUSTS IN THEHORIZON

New Beer Boys:United Dutch

Breweries, Netherland’s 3rd largest

beer maker, has entered the

Kenyan market.

Hooray for a housing fund:

Letshego, a Botswana-based

micro-financier has set up a Sh16

billion housing fund targeting low-

income housing mortgages.

Family Shares: Family Bank kicks

off its Sh 4 billion rights issue.

CMA’s list of shame: From July,

the regulator will name and shame

rogue firms and traders in the

financial markets. Well in!

Pricier Beer? : EABL distributors

want higher commissions (like

their friends in Uganda). EABL is

standing firm, doesn’t want to lose

customers. Let’s see how this

cookie crumbles.

Bad credit: Kenya might be facing

a downgrade from Standard &

Poor’s (S&P) due to rising political

tensions. We are B students now.

Bad beans: Coffee prices drop at

the Nairobi Exchange Auction due

to low-quality beans.

THE WEEKLY DIGEST

Insight

SCVI

SCVIEDITOR'S

NOTEINSIGHT

I’m really excited to bring to you our first ever edition of The Weekly Digest courtesy ofSCVI Insight, the publications arm of Strathmore Centre for Value Investing (SCVI). It hasbeen a long time coming and I know this is the start of very good things going forward.

In this publication, you will find the week’s top stories as well as a snapshot of movementsin macro-variables over the past week i.e. the NSE-20 Share Index and the USD/KESexchange rate.

Our aim is to keep you informed of happenings locally and from all four corners of the worldso that you may stay up-to-date and enlightened (and also impress your friends with yourerudition!).

Look forward to a new edition every Saturday of every week.More importantly - Enjoy!

ISSUE 001

[29th May-3rd June]

Nor

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Ind

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uss

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Ch

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Sou

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&T

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Sub-

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Afr

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India’s good fortunes: When a billion people speak, you listen. With a population of approximately 1.3 billion humans

(as of 2013), the world should start listening to India. Earlier this year, the country has knocked China out of the

“World’s Fastest Growing Economy” race. India did it again by grabbing the pole position as the world’s top destination

for foreign direct investment (FDI) away from, you guessed it, China. Can it repeat the fete in the world of Crude oil

demand growth?

Why Uber likes China: Uber likes China. Why? It’s starting to make money there (and who doesn’t like money?).

It seems that China’s efforts to shift its growth model away from investment to consumption is starting to pay off,

for the country and for Uber. Go go China!

Russia’s dilemma: Higher oil prices in Russia should be a good thing, right? Well, not really. Higher prices may just

help Russia bounce back from a crippling recession. However, higher prices also make exports expensive and imports

cheap, meaning that we might be looking at a higher trade deficit. Blessing or curse? You decide.

Argentina dumps its debt: Argentina is celebrating just coming out of a debt crisis, which is great news given

its rich history in sovereign debt defaults. Bring out the Champagne and throw a party.

Bad days for Brazil: Brazil is having it tough. What with the Zika virus and scary political unrest. Economic

experts just joined the pity party and declared a shrinking economy on top of everything. Boohoo for Brazil.

Silver lining though: it still has plenty of beautiful women. Cheers for Brazilian Babes!

No more beers bruhv!: Beer lovers beware! Venezuela is in a bit of a bind what with a shortage of the sweet

stuff. No more drinking our troubles away. Producers cite a shortage in raw materials (starts with a B, odd!) Poor

Venezuelans. Ration the Rum!

Kenya says 'No!' to refugees: Big news. The world’s largest refugee camp is in Kenya. Furthermore, it’s closing. It’s

called Dadaab and has been home to approximately 34,000 humans who mostly originate from war-torn Somalia as well

as Ethiopia. The announcement, made by President Uhuru Kenyatta is generating a lot of heat. Word heat. But heat

nonetheless.

Nigeria’s gas crisis: Nigeria is in big trouble. Bad men (read ‘terrorists’) are tearing the country apart and have

successfully brought the African country’s economy to its knees (Yikes!). Now nasty crews are shutting down the

country’s gas generators. Credit goes to Niger Delta Avengers, who really should stop watching too many sc-fi movies.

Zimbabwe’s cash crunch: Zimbabwe is Africa’s economic problem child. It manages levels of hyperinflation that seem

straight out of Wonderland -79.6 billion % in 2009 (I’m not kidding). Now everything is coming to a halt (big surprise)

given a recent crunch in cash. What’s the government doing about it? What it does best: print more money!

Raising US interest rates - the Fed decides: The US Federal Reserve Bank want to hike up interest rates. It’s

worried about rising inflation and the economy heating up. Don’t want to overcook the big macro meal, do we Yellen?

We wonder what this means for emerging and frontier markets. Will we see depressed markets and despondent policy

makers?

US job growth slows: Jobs are getting scarce in the States (USA). It actually recorded the largest drop in jobs created

in 5 years. Word on the street is striking Verizon workers as well as dropping volumes of job-creating goods. This might

give Yellen ideas. Yikes!

Canada’s cuts: It seems that bad, i.e. cheap, oil is bad for business (and the trade deficit) in Canada. The decline in

crude oil prices has led the Bank of Canada to cut interest rate twice to boost the economy. Three times a charm

maybe?

News from Around the World

Sou

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Hopes inflated in Europe: Good things in the air for Europe, at least according to the European Central Bank (ECB).

It raised its inflation outlook for 2016 to 0.2% (from 0.1%), and hopefully eased concerns about the region falling into a

deflationary spiral. Phew!

VW pays the piper: Volkswagen is in pain. Not ‘flesh and blood’ pain but rather business pain what with profit

tumbling 20% in the first three months of 2016. People seem to think it’s that pesky scandal about emissions that got

them into this mess. Time to pay the Piper VW!

The fidgety French: The land of good wine, fresh bread and nice cheese is facing some serious problems. A rail

strike is threatening to put Euro 2016 in jeopardy in France. The country’s largest union also called a strike and

workers have blockaded power plants, petrol stations and oil refineries. They don’t like the planned labor laws.

Nothing a good bottle of wine can’t fix no?

TheTeam

EDITORTim Avedi

CONTRIBUTING WRITERS

Ronald WakhuJulie Songok

Rose KagumbaIvy Mwende

Valentine MuhonjaKoki Gachui

MACRO SNAPSHOT

ASEAN, China and the US: a geopolitical love triangle: The world’s greatest superpowers, US and China,

are looking to win the hearts and minds of ASEAN countries. Competing trade agreements from both wooers

have got the ASEAN region in a bit of a bind. Can it keep them all?

Billionaires and inequality in emerging markets- insights from a new study: How do entrepreneurs in

emerging markets get super-rich? Are they building fortunes at the expense of rising inequality? How do we

separate the clean tycoons from the corrupt cronyist types? All these questions are addressed and tackled in a

study done by the Peterson Institute in Washington D.C. Should make for interesting reading.

News from Around the World

LINKS TO STORIES

ASEAN, China & the US

Billionaires and inequality inemerging markets

Argentina dumps its debt

Bad days for Brazil

No more beers bruhv!

Kenya says 'No!' to refugeesNigeria's gas crisis

Zimbabwe's cash crunch

Raising US Interest rates

US job growth slows

Canada's cuts

Hopes inflate in EuropeVW pays the piperThe fidgety French

India's good fortunes

Why Uber likes China

Russia's dilemma

The Local Beat

India, Russia &China

Europe

South America &Carribean

Sub-Saharan Africa

South-east Asia

North America

New Beer Boys

Hooray for a housing fund

Family shares

Bad creditBad beans

CMA's list of shame

Pricier Beer?

BIGDEALS

BIGBUSTS

IN THEHORIZON

SCVI

scvi@strathmore.edu

INSIGHT

@scvi_insight

scviinsight.wordpress.com

GOT FEEDBACK ON THE DIGEST?MAIL OR TWEET US!

The End!