Major International Business Headlines Brief::: 10 April 2018

Tue Apr 10 10:54:58 CAT 2018

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Major International Business Headlines Brief::: 10 April 2018

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*  South Africa's mines minister sees new mining charter by May

*  Egypt's annual urban consumer price inflation slows to 13.3 pct in March

*  Vodacom Tanzania picks Safaricom executive as its new managing director

*  South African consumer group Libstar plans stock market listing

*  Telkom Kenya to merge some operations with Airtel Kenya:source

*  South Africa's rand strengthens as global trade war fears ease

*  Alleged Angolan fraud scheme aimed to take $1.5 bln: finance ministry

*  Nigerian oil firm Neconde mounts arbitration case against Shell

*  In Africa, costly data slows internet TV's growth: Naspers' Showmax

*  Impairments push Lafarge Africa to 2017 loss, shares fall

*  Uber to buy electric bicycle-sharing firm Jump

*  US-China trade: Xi warns against 'Cold War mentality'

*  Zuckerberg testifies: Seven things to look out for

*  Chinese investment in the US falls sharply in 2017

*  US annual budget deficit forecast to hit $1 trillion

*  Lufthansa cancels 800 flights amid strike action

 <mailto:info at bulls.co.zw> 

South Africa's mines minister sees new mining charter by May

JOHANNESBURG (Reuters) - South Africa’s mines minister Gwede Mantashe said on Tuesday he remained confident that the government and mining firms would finalise the third version of an industry charter that lays out requirements for black ownership levels.

Mantashe made the remarks in a speech at a platinum mining conference in Johannesburg.

The charter proposed by Mantashe’s predecessor was opposed by the industry, which for years has been grappling with depressed prices and labour unrest.

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Egypt's annual urban consumer price inflation slows to 13.3 pct in March

CAIRO (Reuters) - Egypt’s annual urban consumer price inflation fell to 13.3 percent in March from 14.4 percent in February, the official statistics agency CAPMAS said on Tuesday.

Inflation has climbed since Egypt floated its pound currency in November 2016, reaching a record high in July after energy subsidy cuts. It has gradually eased since then.

Vodacom Tanzania picks Safaricom executive as its new managing director

NAIROBI (Reuters) - Vodacom Tanzania on Monday named Safaricom’s head of consumer business as its new managing director to lead the company that listed in Dar es Salaam last year amid government efforts to expand local ownership of the industry.

Sylvia Mulinge, who has been at Safaricom since 2006, will take over on June 1, Vodacom Tanzania, a unit of South Africa’s Vodacom Group, said in a statement.

She will replace Ian Ferrao who joined Vodacom Tanzania three years ago. Ferrao decided not to renew his contract with the company and will be leaving to “pursue other interests,” the company said.

Ferrao led the company through a $213 million initial public offering last August, Tanzania’s largest ever, which attracted more than 40,000 local investors, most of whom were first-time participants in the country’s stock market.

Foreigners, initially banned from participating, bought 40 per cent of the shares.

The move was part of a government directive for mobile companies to list a minimum 25 percent stake at the local Dar es Salaam Stock Exchange. 

Vodacom is the only telecom company so far in Tanzania to list at the DSE, where it closed on Monday at 850 shillings ($0.3759).

Vodacom controls 32 percent market share of the country’s 40 million mobile subscribers. Other major players include Tigo Tanzania, a subsidiary of Sweden’s Millicom and a local unit of India’s Bharti Airtel.

($1 = 2,261.0000 Tanzanian shillings)

South African consumer group Libstar plans stock market listing

JOHANNESBURG (Reuters) - Libstar Holdings Propriety Ltd, a South African consumer goods company, plans to raise 1.5 billion rand ($124 million) to repay a portion of its debt and expand its capacity by selling shares on the Johannesburg Stock Exchange, the firm said on Monday.

The offering, which will only be made available to private investors, is targeting a free float of at least 40 percent, Libstar said.

Libstar is the third company in the past two weeks to state its intention to float in Johannesburg, highlighting a more positive mood among investors following newly elected president Cyril Ramaphosa’s promises to kick-start the economy.

“The decision to embark upon a JSE listing is an exciting step in the next phase of Libstar’s development and growth story,” said Co-Founder and Chief Executive Officer, Andries van Rensburg.

Libstar’s 27 business units offer consumer products that include specialised food such gluten-free baked products to retailers including Woolworths.

More details of the offering, including the number of shares and issue price, will be released with the pre-listing statement at a later stage.

($1 = 12.1274 rand)

Telkom Kenya to merge some operations with Airtel Kenya:source

NAIROBI (Reuters) - Telkom Kenya and Bharti Airtel’s local units plan to merge some operations as a first step as Telkom plans to acquire all of Airtel’s Kenyan assets, a source at the industry regulator said on Tuesday.

Telkom Kenya plans to take over all of Airtel Kenya eventually but it has yet to decide on a structure, the source said.

“They are yet to make a formal application (to the regulator) disclosing all the details,” the source told Reuters.

Telkom Kenya declined to comment and Airtel Kenya had no immediate comment.

South Africa's rand strengthens as global trade war fears ease

JOHANNESBURG (Reuters) - South Africa’s currency firmed against the dollar early on Tuesday as investor jitters over an escalating U.S.-China trade row cooled with eyes on domestic manufacturing data and the central bank’s monetary policy review.

At 0630 GMT the rand was 0.52 percent firmer at 12.0350 per dollar compared to its overnight close of 12.0975 in New York.

On Tuesday Chinese President Xi Jinping said China will maintain opening the economy and reform measures to lower import tariffs on certain products, which eased fears over heightening trade tensions with the United States. In a speech at the Boao Forum Jinping said that China will sharply widen market access for foreign investors.

Technically, momentum indicators tracked by analysts are neutral and not providing a strong sense of direction either way for the rand.

On the domestic front, February manufacturing data is due at 1100 GMT. A Reuters’ poll forecasts manufacturing output to rise to 2.6 percent from 2.5 percent.

The South African Reserve Bank will hold its monetary policy review at 1600 GMT. The forum discusses issues such as the inflation outlook, economic growth and the monetary policy stance.

The World Bank will announce revised economic forecasts for South Africa.

In the fixed income market, bonds were also firmer, with the yield on the benchmark government paper due in 2026 down one basis point to 8.050 percent.

Alleged Angolan fraud scheme aimed to take $1.5 bln: finance ministry

LUANDA (Reuters) - People involved in an alleged scheme to defraud Angola’s government laid out plans to secure as much as $1.5 billion, the finance ministry said on Monday, three times the amount previously mentioned by authorities.

State prosecutors announced in March they were investigating a $500 million transfer made last year out of an account belonging to the central bank to an account in Britain.

Prosecutors have presented initial charges relating to the case against the former governor of the central bank, Valter Filipe da Silva, and José Filomeno dos Santos, the son of the former Angolan president.

Reuters was not immediately able to contact da Silva or dos Santos who has said he is cooperating with authorities.

On Monday, Angola’s finance ministry released a statement setting out what it called “the truth of the serious facts that have occurred”.

It said that a firm, purporting to have the support of a syndicate of international banks, presented a plan to the government to secure $35 billion of international financing for Angola.

The finance ministry statement said the firm had proposed that the government pay out $1.5 billion of its own money to help set up the deal.

A total of $500 million of that amount was transferred to an account in London, the ministry said, but that was flagged as suspicious by British authorities and frozen.

That $500 million has now been returned to Angola’s central bank, the ministry added.

The former central bank governor and the former president’s son are the most high-profile figures to be named in corruption investigations since President Joao Lourenco took over in September promising to combat endemic graft.

Under Angolan law the initial charges, or formal accusations, against both men must then be upheld via a formal charge document. Prosecutors said this process would be completed within 90 days.

The $500 million transfer happened last year towards the end of the 38-year presidency of José Eduardo dos Santos, shortly before the elections that replaced him, the ministry said.

Nigerian oil firm Neconde mounts arbitration case against Shell

LAGOS (Reuters) - Nigerian energy company Neconde has launched an arbitration case against Royal Dutch Shell, the West African firm’s chief executive said, alleging the oil major continued to lift crude and failed to remit funds after a lease had been sold.

The oilfield in question, Oil Mining Lease (OML) 42, is also at the centre of corruption allegations. Shell filed a criminal complaint against a former employee in late March over suspected bribes in the $390 million sale of the field.

    Neconde CEO Frank Edozie told Reuters the company bought a stake in OML 42 from Shell in April 2011. He alleged the oil giant continued to produce crude there until the petroleum ministry approved Neconde’s licence in November that year.

“It was producing and lifting crude although the asset had, by deed of transfer, moved to Neconde. Shell lifted the crude and held the proceeds - nothing was given to Neconde. That is the matter we are taking to the court of arbitration in the UK,” he said.

Edozie, who spoke with Reuters at his company’s headquarters in Nigeria’s commercial capital Lagos, said Neconde launched the arbitration case in London late last year in an attempt to recoup money. He did not disclose the sum being sought.

Edozie did not provide precise figures when asked how much crude was allegedly produced, lifted and sold improperly by Shell.

A Shell spokesperson said there was “arbitration between Neconde and Shell”. No further details were given.

Experts say arbitration disputes, which are held in private, often take years to resolve but can also be withdrawn quickly if a deal is reached privately.

Neconde Energy last week said it purchased its stake in OML 42 following a competitive bidding round and made no payments to a former Shell employee or other companies to facilitate the purchase.

A Shell spokesperson said the decision to file a criminal complaint against its former employee over the sale was unconnected to the arbitration case.

Neconde’s CEO also said the company was “under significant pressure to keep up with payments to banks” and was holding talks to restructure its debt and raise equity.

“We are looking for between $500 million and $600 million,” said Edozie, adding that the energy firm was dealing with a consortium of lenders.

He said financiers on the OML 42 acquisition included international lenders: Africa Finance Corp, FBN Bank UK, Glencore and Afrexim.

Guaranty Trust Bank, Diamond Bank, Fidelity Bank and Access Bank were domestic banks in the mix. Edozie said the company had been in talks with lenders to refinance its loans.

“We are in the market for debt, then we are on a journey to proof of the asset,” he added.

Edozie said crude production at the oilfield stood at around 80,000 barrels per day (bpd) and it aimed to increase that to 110,000 bpd by the end of 2018.

He said the company had recently decided to transport crude by barge because of the disruption caused by pipeline vandalism by militants in the southern Niger Delta, first in 2011 and later in 2016.

Nigeria’s Forcados terminal is ramping up after a temporary shutdown on the Trans Forcados Pipeline, Shell said on Friday.

“We lost production due to downtime, therefore we felt that we are better off barging than putting our crude in the pipeline,” he said.

In Africa, costly data slows internet TV's growth: Naspers' Showmax

NAIROBI (Reuters) - Global entertainment group Naspers is trying to persuade telecoms operators in Africa to offer customers unlimited data to help boost the growth of internet television on the continent.

The high cost of data in Africa has hampered the take up of internet TV, even though the number of internet users in the region has grown rapidly.

While Showmax is seeing “healthy usage” in South Africa, the internet TV business elsewhere in the region is at a nascent stage, Naspers’ Showmax spokesman Richard Boorman said, citing data costs that are among the world’s highest.

“The catalyst will be the provision of uncapped mobile data,” he said in a phone interview on Monday.

The high data costs are limiting customer growth for Showmax, which launched in South Africa in 2015 and has since expanded to a total of 40 countries on the continent.

The number of internet users in Africa has risen from 15 million in 2005 to 213 million in 2017, according to the United Nation’s International Telecommunication Union. But affordability is still catching up.

Mobile ownership — encompassing both the cost of the phone and of data, voice and messaging services — as a share of monthly income is at 11 percent in Africa, far higher than other regions, according to a 2016 GMSA report, the global mobile operators association.

Nanjira Sambuli, who leads the World Wide Web Foundation’s advocacy efforts to promote digital equality in access to and use of the Web, said internet costs are quite prohibitive for unlocking meaningful use of the web in Africa.

The Foundation’s definition of affordable internet is 1GB of data not costing more than 2 percent of monthly income, which it found only 5 countries studied met that target.

“1GB costs an average of 18 percent of monthly income,” Sambuli said. “So you can imagine that prioritising video-on-demand might not [be] too [high] on the list of things to do with limited affordability.”

To bridge this gap Showmax is lobbying telecoms companies operating in Africa to start offering unlimited data to users, Boorman said, adding that the company was using data from other regions to make the case.

Showmax’s partnership in Poland with T-mobile, which offers subscribers Showmax content without deducting data from their accounts, shows that the economics of uncapped data can work in other countries, he said.

Showmax’s parent Naspers, which was founded in 1915 and has transformed itself from an apartheid-era newspaper publisher into a 1.5 trillion rand ($127 billion) multinational..

It has about 30,000 TV shows, movies, and documentaries through deals with companies such as HBO and Disney, among others.

It mixes international offerings with local productions to differentiate itself from competitors including Netflix, also available across Africa.

IROKOtv, a Nigerian platform focused on Nollywood content, said that its business was also challenged by data costs.

“We’ve had to go offline, and work with our customers to find other ways and means to bring them online,” IROKOtv’s CEO Jason Njoku said.

Boorman says mass adoption of internet TV in Africa is still some ways off, “but we know it’s coming, we are getting ready for it.”

($1 = 100.9000 Kenyan shillings)

Impairments push Lafarge Africa to 2017 loss, shares fall

LAGOS (Reuters) - Lafarge Africa has taken a one-off impairment in Nigeria and South Africa totalling around 33 billion naira ($105 million), widening its loss before tax for 2017 from a year earlier and sending its shares tumbling.

Bruno Bayet, chief financial officer, told Reuters the impairments accounted for bulk of the loss, without which the cement maker would have turned a profit.

Lafarge Africa shares listed on the Lagos bourse fell to a one-year low on the news.

($1 = 314.50 naira)

Uber to buy electric bicycle-sharing firm Jump

Uber users around the world may soon be able to hire electric bicycles through the app, after the ride-sharing firm bought US bike-hire firm Jump.

Based in New York, Jump allows riders to rent electric-powered "pedal assist" bikes via an online platform.

Its bikes are also dockless and do not need to be returned to a specific place.

Uber, which already has a tie-up with Jump in San Francisco, said it would now look to "scale" the bikes globally.

Uber chief Dara Khosrowshahi said: "We're committed to bringing together multiple modes of transportation within the Uber app - so that you can choose the fastest or most affordable way to get where you're going, whether that's in an Uber, on a bike, on the subway, or more."

The bike-sharing market is growing at about 20% a year and is set to be worth between €3.6bn (£3.1bn) and €5.3bn by 2020.

David Bailey, a professor at Aston Business School, told the BBC: "Uber is looking at this partly because it is fast growth area but it is also looking forward to a time when we won't own cars.

"Autonomous cars are coming and in big cities you won't need to own a car in future. You might want to use an Uber taxi but then finish the journey on a bike. So it's about offering multi-modal transport."

Founded in 2008, Jump Bikes has launched conventional bike-sharing schemes in 40 cities across six countries, including in Brighton in the UK.

Its e-bikes, which were unveiled last year in Washington DC, cost $2 (£1.40) for the first half-hour, then 7 cents per minute.

The bikes are "pedal assist", meaning their batteries only kick in when you are pedalling.

Users also locate and unlock the cycles with their smartphones and use a built-in lock to secure the bike to a rack at the end of their ride.

Bike-sharing company Jump and ride-hailing service Uber have more in common than you might think. Both join the dots in journeys between traditional lines of public transport.

Deploying a fleet of vehicles is one way to get a passenger from door-to-door. Owning a fleet of electric bicycles offers another. Both companies concentrate their efforts in cities, where governments are keenest to rid the roads of cars.

There are over a thousand different bike-sharing companies currently in operation across the world. The vast majority have yet to turn a profit. Most will fail.

The likes of Uber, however, are prepared to play the long-game. Scale and brand recognition are critical. They have both. Transport in cities is a winner-takes-all kind of business.

Didi expansion

The Jump deal comes as Uber faces growing competition from competing ride-sharing operators in international markets.

Last week, Uber sold its South East Asian operations to regional rival Grab, retaining a 27.5% stake in the Singapore-based firm.

It follows a similar deal in 2016 with China's Didi Chuxing, which on Friday also said it would open in Mexico - the firm's first launch outside Asia.

Didi said it would start off with a car service, but according to Reuters, it is also considering allowing users to hire motorcycles and bikes.--BBC

US-China trade: Xi warns against 'Cold War mentality'

Chinese President Xi Jinping has warned against a "Cold War mentality" as he vowed to open up parts of the country's economy.

His speech at the Boao Forum for Asia - often referred to as Asia's Davos - appears to be an attempt to calm a trade row with the US.

He pledged to cut import tariffs on cars and relax requirements for foreign firms investing in China.

But there were few specifics on when the changes would happen.

Chinese investment in US falls sharply

Analysis: Why China won't baulk at US tariff threat

'Zero-sum game'

Mr Xi made no specific references to the ongoing spat with the Washington which has seen both sides announce tit-for-tat plans to slap tariffs on imports.

But in a veiled swipe at US President Donald Trump's America First stance, Mr Xi called for openness.

Media captionHow hogs and Harleys became weapons in a looming trade war.

"Human society is facing a major choice to open or close, to go forward or backward," Mr Xi said to the audience made up mainly of Chinese and international investors.

"In today's world, the trend of peace and cooperation is moving forward and a Cold War mentality and zero-sum game thinking are outdated.

"Paying attention only to one's own community without thinking of others can only lead into a wall. And we can only achieve win-win results by insisting on peaceful development and working together."

President Trump, whose plan to hit hundreds of Chinese products with duties have stoked fears of a trade war, has yet to react.

Washington claims China has failed to fulfil earlier promises to open up the economy - including putting up barriers to international companies accessing markets and forcing investors to form joint ventures and hand over intellectual property.

Beijing Deals

What China sells to the US

$462.6bn

The value of of goods bought by the US from China in 2016.

18.2% of all China's exports go to the United States

$129bn worth of China-made electrical machinery bought by US

59.2% growth in Chinese services imported by US between 2006 & 2016

$347bn US goods trade deficit with China

China's President Xi Jinping likes to position himself as the champion of globalisation. He consistently does that when he's making speeches at international forums.

And what better time to do that than now, against the backdrop of the ongoing US-China trade row.

President Xi says a cold war and zero sum mentality are out of place and that dialogue is the way to resolve disputes.

What he most likely means by that of course - although he never specifically says it - is that US President Trump's recent rhetoric on trade and unfair practices by China aren't in keeping with the way reasonable adults should behave.

In contrast to the bluster and fiery barbs evident in President Trump's tweets, President Xi put forward the face of a new China, and announced steps to make China's economy more open.

Amongst the things he talked about included lowering import tariffs for vehicles, and improving transparency, and intellectual property rights protection.

He also said China genuinely doesn't want a trade surplus.

But while on the surface the promises sound grand, some of this is stuff we've heard before. So it's hard to see just how much more access China will give foreign firms in reality.

But will President Trump see President Xi's conciliatory speech as a sign that he's won some concessions for the US side? Wait for his next tweet!--BBC

Zuckerberg testifies: Seven things to look out for

Mark Zuckerberg has been preparing for his biggest test yet as Facebook chief executive - facing not one, but two congressional hearings.

Some view these sessions as little more than political theatre, a chance for politicians to be seen on TV berating the rich and powerful.

There might be some truth in that. But never have we had such unfiltered access to a man who is typically wrapped in cotton wool by his PR team and deputies.

His opening prepared statements have already been released.

But the marathon sessions scheduled on Tuesday and Wednesday will throw up far more.

Mr Zuckerberg will inevitably be grilled on data privacy - with particular focus on the Cambridge Analytica scandal - and why it took a newspaper to discover the breach of its systems. And he'll be expecting some hard questions on election interference as well as his own and Facebook's future.

So here's what to look out for as Mr Zuckerberg heads to the Hill this week.

1. Highlighting the good

Community, community, community. It's a word you'll be hearing a lot from Mr Zuckerberg who will open his statements by stressing the good Facebook brings to the world.

And he's right. Organising our real world lives, whether a birthday party or protest march, has become much easier thanks to Facebook. As has sharing pictures and video with families and friends.

He'll speak about how Facebook is used by small businesses the world over to reach customers quickly, efficiently and cheaply.

Between the lines he's saying don't clamp down too harshly on its business, as it could affects millions of others too.

2. Acting normal

For the 33-year-old, being up-to-speed on how his company works will not be a problem. He's not a chief executive who hides in the boardroom. He can code as well as the best of his engineers.

Instead, his challenge will be to appear human and to come across as genuinely remorseful - even if deep down he still believes, as the company said originally, that users willingly gave up their data.

A skit from this weeks' Saturday Night Live portrayed it best - a jumpy "Mark Zuckerberg" told bad rehearsed jokes and counted the seconds he needed to maintain eye contact in order to be seen as normal.

The real Mr Zuckerberg has always struggled with appearing compassionate. Indeed, even a home video of him as a teenager shows early signs of the roboticism that might stifle him in these hearings.

An anecdote or two about his children might help with this. In a recent CNN interview, a flicker of genuine emotion entered the room as Mr Zuckerberg talked about the influence his two young children have had on his life. Being fatherly-Zuckerberg might help leave behind college-Zuckerberg, who famously had unfortunate views about user privacy.

3. Blaming Kogan

It's important to remember that while Facebook has admitted mistakes around its data policy and how thorough it was (or wasn't) in cleaning up the original mess, the company maintains that it was Aleksandr Kogan, the University of Cambridge researcher, who is most at fault here.

It was Mr Kogan who created the personality app that hoovered up data then allegedly used by Cambridge Analytica. And it was CA that said it had deleted the data when it apparently hadn't.

Mr Zuckerberg will tread a fine line between making sure the politicians know Facebook's systems were abused, while also not looking as if he is trying to abdicate responsibility.

4. Involving other companies

At one point before these hearings, lawmakers had wanted bosses at Google and Twitter to appear alongside Mr Zuckerberg - an acknowledgement that many of the issues faced are shared. There was plenty of Russian propaganda on Twitter, for example, and YouTube's woes are very well documented.

That won't be happening now. Facebook is all alone. But that won't stop Mr Zuckerberg trying to pull in other technology companies to this debate, even if not explicitly by name.

Facebook wasn't the first company to make billions from gathering personal data and it won't be the last.

5. Political showboating and bad questions

"It's a simple yes or no question," is a phrase beloved by politicians at these kinds of hearings. It's most effective, of course, when asking a question that is anything but at simple yes or no.

Expect the more camera-keen representatives to go for this gotcha moment from the word go. They will want to be the soundbite in the evening news, or the clip that's shared by millions on, ironically enough, Facebook.

Giving both barrels to one of Silicon Valley's most influential figures makes great tape for any campaign ads ahead of this year's midterm vote.

But this approach often leads to bad, sometimes misleading questions. Watch out for moments that may seem like major concessions by Mr Zuckerberg but are actually anything but.

I'd put good money on at least one representative asking "can you swear here today that Facebook will never sell user data?" - to which the answer is "of course". Facebook hasn't ever sold user data, it merely grants access to it.

6. A non-debate on regulation

Mr Zuckerberg will bring up the Honest Ads Act, a proposed law that would increase transparency around political advertising on the internet. It would bring the legislation more in line with what happens on television, where it's made clear who has paid for the ad.

Backing this act is a shrewd PR move by Facebook. It gives Mr Zuckerberg the chance to say he is open to government regulation, while also avoiding any major impact on the way Facebook is run.

The changes Mr Zuckerberg has already put in place around campaign and "issue" ads means they are probably already in compliance with the measures the Honest Ads Act wants to introduce - or at not far off.

Don't expect much progress when it comes to any other type of regulation debate.

Instead, we may get a few baby steps in the direction of what other kinds of regulation might look like, but Mr Zuckerberg will no doubt emphasise the work his company is already doing.

7. A glance at the consent decree

The Federal Trade Commission (FTC) is investigating whether Facebook violated a consent decree signed in 2011.

It's a document that details an agreement to look after data in certain ways, and was drawn up after the FTC gave Facebook a telling off content that people thought and assumed was just being shared among friends was made public.

In short, Facebook agreed not to "misrepresent in any manner, expressly or by implication" how data collected would be used.

The company also promised to be absolutely frank with users about how they can proactive and reactively control how their private data is being used.

Given what we know now, lawmakers might be minded to ask Mr Zuckerberg if his company lived up to both of those important pledges.--BBC

Chinese investment in the US falls sharply in 2017

Chinese investment in the US plunged last year as tensions between the two countries mounted.

The value of deals announced in 2017 fell by more than 90% from the year before, according to joint studies by the National Committee on US-China Relations and the Rhodium Group.

The reports said policy shifts in both countries triggered the decline.

China has curbed outbound investments, while the US is raising concerns about deals for national security reasons.

"This altered policy environment has already changed patterns of two-way [foreign direct investment] and will continue to reshape investment levels and composition in the future," the reports authors say.

Chinese firms completed $29bn (£20.5bn) worth of investments in the US last year, down 35% from the record $46bn completed in 2016, the report found.

But the 2017 figure was "propped up significantly" by deals carried over from the previous year, according to the study. If transactions announced prior to 2017 are not included, the value of completed deals fell by 74%.

Chinese investment

The decline followed a rapid increase in Chinese investment overseas over the last decade, which has fuelled worries both in China and in countries including the US, Australia and Germany.

In late 2016, China's regulators moved to curb outbound investment, concerned in part by debt-fuelled acquisitions in other countries.

That was followed by a crackdown on some of the countries biggest conglomerates.

In the US, politicians have voiced concerns that Chinese companies, backed by the government, are targeting investments at military and security-related technologies.

Last year, the Committee on Foreign Investment in the US, which reviews transactions for national security risk, blocked almost $10bn worth of deals, including the sale of US semiconductor and aluminium companies, the report estimated.

And this year several high-profile attempts at Chinese investment have been blocked - including the sale of money transfer firm Moneygram to China's Ant Financial, the digital payments arm of Alibaba.

US President Donald Trump has also asked his staff to identify new ways to limit Chinese investment in the US, part of a broader response to alleged theft of intellectual property that also includes plans for tariffs on $50bn worth of Chinese imports.

The US Congress is also working on legislation that would give the federal government more power to review business deals for national security risks.

The report on Chinese investment said that how far the US decides to go will have "major consequences" for future investment.

About 140,000 people in the US are now employed by a firm that is majority owned by a Chinese company, many of them in sectors such as real estate, hospitality and entertainment, according to the report.

Last year's investments, the vast majority by privately-owned firms, included a stake in Snapchat, the purchase of a business that leases commercial aircraft and acquisition of a portfolio of commercial property.

As well as discouraging investments by the Chinese, US firms, which invested about $14bn in China last year, could become more hesitant to do business in China, the report added.--BBC

US annual budget deficit forecast to hit $1 trillion

The US is heading for an annual budget deficit of more than $1 trillion (£707bn) by 2020 following tax cuts and higher public spending, according to the Congressional Budget Office.

It said that while the measures will temporarily boost the US economy, they will exacerbate its long-term debt.

The agency said US debt could rise to a level comparable to World War II and the financial crisis.

It warned that it would have "serious negative consequences" for the US.

The CBO's report has been revised to incorporate the effects of a new $1.3 trillion government spending bill and the $1.5 trillion in Republican-led tax cuts approved last year.

It lifted its economic growth forecast for this year and next to 3.3% and 2.4% respectively.

However, the non-partisan CBO said the deficit - the difference between what the government spends and what it receives through tax receipts - is expected to rise to $804bn in 2018 from $665bn in the previous year.

The budget deficit is then expected to grow to $1 trillion by 2020.

Rising debt

The agency said it now expects America's cumulative deficit over the next decade to grow to $11.7 trillion compared to a previous forecast of $10.1 trillion.

It added that debt would hit $28 trillion, or about 96% of GDP, by 2028.

The figure would be even larger if the tax cuts for individuals and families do not expire as scheduled.

The CBO said that "such high and rising debt would have serious negative consequences for the budget and the nation," which would include limiting the government's flexibility to introduce new policies and making it vulnerable to fiscal shock.

The report is expected to fuel concerns that China could use its position as America's largest foreign creditor to its advantage during the current trade dispute.

Democrats seized on the report to criticise Republicans, who have previously championed fiscal responsibility.

Senator Chuck Schumer of New York said the report "exposes the scam behind the rosy rhetoric from Republicans that their tax bill would pay for itself" and warned that Republicans will now use the rising debt to call for cuts to welfare programmes such as Social Security.--BBC

Lufthansa cancels 800 flights amid strike action

Lufthansa has been forced to cancel 800 flights on Tuesday as the spring of discontent among Europe's workers spreads to Germany.

The airline has axed half of its 1,600 scheduled flights, affecting 90,000 passengers.

Workers are staging the walkout ahead of pay talks, following similar action in France.

Air France is expected to face further disruption on Tuesday after industrial action at the weekend.

Lufthansa told passengers whose flights had not been cancelled to allow more time to travel and get to airports earlier.

The walk-out does not involve Lufthansa's own staff but public sector workers such as ground handlers at Frankfurt, Munich, Cologne and Bremen airports.

The trade union Verdi said the strikes were intended to "increase pressure" on public sector employers ahead of wage talks.

However, Lufthansa said it "cannot comprehend Verdi's threat to carry out such a massive strike".

"It is completely unacceptable for the union to impose this conflict on uninvolved passengers," said Bettina Volkens, Lufthansa's head of human resources.

"Lufthansa is not a part of this collective bargaining conflict, but unfortunately our customers and our company are being affected by the consequences of this dispute."

She added: "Politicians and legislators must define clear rules for strikes and industrial actions."

Lufthansa said normal services would resume on Wednesday.

Meanwhile, Air France said that it will operate 75% of its flights on Tuesday after grounding one third of services on Saturday.

Unions representing airline staff are demanding a 6% pay rise from the company, which is offering a 1% increase.

Rail travel in France is also under pressure amid ongoing strikes by SNCF staff in response to labour reforms under President Emmanuel Macron.--BBC

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

Zimbabwe

Independence Day

Zimbabwe

18/04/2018

Workers’ Day

01/05/2018

Africa Day

25/05/2018

Zimbabwe

Heroes’ Day

Zimbabwe

13/08/2018

Zimbabwe

Defence Forces Day

Zimbabwe

14/08/2018

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DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of Faith Capital (Pvt) Ltd for general information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy or subscribe for any securities. The information contained in this report has been compiled from sources believed to be reliable, but no representation or warranty is made or guarantee given as to its accuracy or completeness. All opinions expressed and recommendations made are subject to change without notice. Securities or financial instruments mentioned herein may not be suitable for all investors. Securities of emerging and mid-size growth companies typically involve a higher degree of risk and more volatility than the securities of more established companies. Neither Faith Capital nor any other member of Bulls ‘n Bears nor any other person, accepts any liability whatsoever for any loss howsoever arising from any use of this report or its contents or otherwise arising in connection therewith. Recipients of this report shall be solely responsible for making their own independent investigation into the business, financial condition and future prospects of any companies referred to in this report. Other  Indices quoted herein are for guideline purposes only and sourced from third parties.

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