Major International Business Headlines Brief::: 13 April 2018

Mon Apr 16 08:09:11 CAT 2018

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Major International Business Headlines Brief::: 13 April 2018

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*  Zimbabwe government buys Boeing planes, leases them to new airline

*  Diageo's East African Breweries aims to tap rising spirits demand in
Kenya

*  Namibia's inflation unchanged at 3.5 pct year/year in March

*  Oando shares soar after Nigeria bourse lifts suspension

*  Investment firm Quantum Global demands to know why Mauritius froze its
funds

*  Group Five considers rights issue to bolster finances

*  Burkina Faso to end tycoon Frank Timis's manganese mining contract

*  Zambia says its foreign debt is not more than officially stated

*  Gold falls from 11-week high on stronger dollar, profit-taking

*  Volkswagen puts Herbert Diess in the driving seat

*  Trump to reconsider joining TPP trade pact

*  London Stock Exchange names David Schwimmer as new boss

*  WTO warns over tit-for-tat trade wars

*  China's Uber has plans to take on the rest of the world

*  British Airways owner considers Norwegian bid

 <mailto:info at bulls.co.zw> 

Zimbabwe government buys Boeing planes, leases them to new airline

HARARE (Reuters) - Zimbabwe has bought two Boeing 777 aircraft and an
Embraer plane from Malaysia, the finance minister said on Wednesday, adding
the planes would be leased to a new local airline until national carrier Air
Zimbabwe returned to profitability.

Patrick Chinamasa said Harare had agreed with an unidentified Malaysian firm
to buy four Boeing 777 planes for $70 million but had so far paid for two.

The government had also paid for a small Embraer plane and plans to add five
more such aircraft.

The new planes are owned by a state-owned special purpose vehicle called
Zimbabwe Aviation Leasing Company.

During a ceremony to receive the first Boeing 777 in Harare, Chinamasa said
the aircraft would be used by Zimbabwe Airways, a new carrier whose
ownership was not immediately disclosed.

Local media reports had linked Zimbabwe Airways and the new planes to former
president Robert Mugabe’s family, but Chinamasa said that was false.

Chinamasa would also not comment on speculation the government could be the
owner of the new airline and would ultimately dissolve the troubled Air
Zimbabwe.

He said, however, the government could not continue supporting loss-making
Air Zimbabwe because it was like “putting resources into a bottomless pit.”
Air Zimbabwe has debts of more than $300 million.

“Air Zimbabwe must put their house in order and as long as they don’t put
their house in order, these planes I can lease to any third party who can
pay treasury the lease fees for the utilisations of the aeroplanes,”
Chinamasa said.

Chinamasa said the Boeing planes had a lifespan of 15 to 20 years.

 <mailto:info at bulls.co.zw> 

Diageo's East African Breweries aims to tap rising spirits demand in Kenya

NAIROBI (Reuters) - Diageo’s East African Breweries (EABL) will start
producing Captain Morgan rum locally as part of wider investment in its
spirit business in response to growing demand.

The company told Reuters it has begun investing the 1.4 billion shillings
($13.88 million) earmarked for the spirits division. Its investment includes
funding for a 20,000 bottles per hour distillery line that will double
production at its plant on the outskirts of Nairobi.

The international brand Captain Morgan will be manufactured locally to cut
costs and make high-end offerings more widely accessible to domestic
consumers.

EABL’s domestic version of the spirit, Captain Morgan Gold, will retail at
800-900 shillings per 750 ml bottle — half the price of imported bottles.
Production is slated to begin within the next month, the company said.

“The liquid is loved. What we are doing is to make sure we democratise it to
make it more widely accessible,” said Andrew Kilonzo, EABL’s head of premium
spirits sales.

EABL plans to produce other Diageo international spirits locally, he said
without specifying brands.

Sales of spirits at EABL grew 20 percent in Kenya last year, marking a shift
in the East African nation where beer, including EABL’s Tusker, has long
been the preferred alcoholic beverage.

“We have more and more people interested in whisky as a category and we also
have more and more affluence,” said Anne Joy Michira-Muhoro, EABL’s head of
spirits, at the Nairobi plant where Tusker beer is also produced.

Kenya’s spirits market has fared better in recent years than that of South
Africa, the continent’s most developed economy, and those in Nigeria and
Angola, the economies of which were buffeted by the collapse in oil prices
in 2014, according to alcohol industry consultancy IWSR.

Nairobi-listed EABL hopes that strong spirits growth will lift earnings that
have been broadly flat or growing in single digits in recent years, hit in
2017 by an election-related slowdown in Kenya, which accounts for 70 percent
of profit.

Its spirits business faces stiff competition from Pernod Ricard, which
imports Jameson whiskey, and from domestic distiller Africa Spirits.

Kenya is Diageo’s fastest-growing market for sales of Johnnie Walker whisky,
but it is not only wealthier Kenyans splashing out on premium labels.

Mainstream spirits such as Chrome Vodka are also growing at more than 20
percent a year, EABL says. The company forecasts that spirits will
contribute half of annual revenue within the next five years, up from 30
percent in 2017.

Bar owners in Nairobi say that younger drinkers are influenced to shift from
beer to spirits by social media and television. Many fuel stations now sell
small bottles of spirits alongside cans of beer.

The strong growth in spirits from vodka to gin and rum is partly driven by
growing middle class incomes in Kenya, said Daniel Mettyear, analyst at
London-based IWSR.

“People can afford to show their economic progress through what they are
drinking,” he said.

($1 = 100.9000 Kenyan shillings)

Namibia's inflation unchanged at 3.5 pct year/year in March

WINDHOEK (Reuters) - Namibia’s consumer inflation was unchanged at 3.5
percent year-on-year in March, official data showed on Thursday.

On a monthly basis, inflation also remained steady at 0.1 percent, the
Namibia Statistics Agency said in a statement.

Oando shares soar after Nigeria bourse lifts suspension

LAGOS (Reuters) - Shares in Nigerian oil company Oando surged 10 percent on
resuming trade in Lagos on Thursday after the regulator lifted a suspension.

Oando shares jumped to 6.60 naira immediately after the stock market opened
after closing at 6.30 naira on Wednesday.

The shares traded only briefly on Wednesday after being suspended for six
months on the orders of Nigeria’s Securities and Exchange Commission (SEC)
which is investigating the oil company over alleged insider
trading.[nL8N1RO4R9][nL8N1MT32N]

The regulator briefly re-imposed the suspension on Wednesday, citing SEC
directives but then lifted it again by Thursday.

When the shares were originally suspended six months ago they were trading
at 5.99 naira.

Oando, with a secondary listing in South Africa, said it has been notified
by the Johannesburg Stock Exchange that it will lift a similar suspension on
its stock on Friday.

Last October, the SEC said it had carried out a comprehensive review of
Oando after it received two petitions about alleged financial mismanagement
and had found related party transactions were not conducted at arm’s length
and discrepancies in its ownership structure.

Oando said a team of Deloitte auditors appointed by the SEC had resumed work
at its offices on a forensic audit and that it was cooperating with the SEC
and the auditors.

“We are hopeful that the forensic audit will have limited impact on the
day-to-day operations of the business,” Oando said in a statement.

Oando said in January it has settled a dispute with a key shareholder and
was working on resolving remaining shareholder disputes and getting the
share suspension lifted. [nL8N1PH5J9]

Investment firm Quantum Global demands to know why Mauritius froze its funds

PORT LOUIS (Reuters) - Quantum Global, an investment firm through which
Angola’s sovereign wealth fund invests much of its cash, demanded on
Thursday that Mauritian authorities explain their decision to suspend its
business licenses on the island nation.

Mauritius has frozen 25 bank accounts and suspended seven licenses linked to
Quantum Global following a visit by Angolan officials last week, according
to a regulatory source.

The source told Reuters on Wednesday that Mauritius had acted swiftly in
collaboration with investigations by Angolan authorities in order to protect
itself against potential “reputational risk.” The source did not elaborate.

“It is hard to defend ourselves against actions by the authorities when the
rationale has not been made clear despite our repeated attempts to receive
this information,” Jean-Claude Bastos de Morais, founder and CEO of
Zurich-headquartered Quantum Global, said in a statement.

Bastos de Morais is a business partner of Jose Filomeno dos Santos, the son
of Angola’s former president.

Dos Santos was until recently the head of the national sovereign wealth
fund. He has been charged with fraud affecting Angola’s central bank,
involving the transfer of $500 million held in the United Kingdom. The funds
were frozen and then returned to Angola’s central bank. Quantum Global has
said it had nothing to do with the transaction.

Dos Santos is the highest-profile figure to be investigated for corruption
since President Joao Lourenco took power last September, vowing to combat
years of endemic graft in Africa’s second-largest oil producer.

Quantum Global said it has not been given an underlying reason for why its
licenses have been suspended in Mauritius.

“As a result of the absence of due process and the rush to sanction us,
Quantum Global has seen its business seriously damaged,” Bastos de Morais
said, adding that his firm operates within the law.

“We urgently need to have a fair hearing so we can clear our name,” he said.

Group Five considers rights issue to bolster finances

JOHANNESBURG (Reuters) - South African engineering company Group Five is
looking at raising money via a rights issue to repay debt and bolster its
finances after reporting a bigger than expected first-half loss following
problems with a Ghana power project.

Group Five, with operations in Africa and Europe, is going through a
restructuring in which it has sold off some businesses, exited loss-making
contracts and cut 420 permanent staff.

The cost of the restructuring and the impact of a weak construction market
in South Africa means the company needs to bolster its short-term financing.

Group Five has signed an agreement with a funding consortium that is willing
to provide up to 650 million rand ($54.21 million) of short-term bridge
funding which the company hopes to access by the end of April 2018 once all
conditions have been met, it said in a statement on Thursday.

“The group believes it is not prudent to rely solely on debt and would
therefore prefer to approach shareholders to discuss recapitalisation
options and replacement of this debt as soon as possible,” group Chief
Financial Officer Cristina Teixeira said during the company’s half-year
result presentation.

She said options for shareholder funding would include “a potential rights
offer or a loan”, which would prevent the group from having to sell assets
it wants to keep and provide enough time to stabilise and de-risk the
construction businesses.

Group Five intends to obtain any necessary approval from shareholders in the
second half of 2018, it said.

Shares in the company were up 8.62 percent to 4.41 rand at 1246 GMT.

The company said its half-year loss widened more than it expected, following
continued difficulties at its Kpone power project in Ghana as well as
retrenchment costs and contract loss costs.

The headline loss per share for the six-months ended Dec.31, widened to 781
cents per share from 310 cents a year earlier.

“We expected this period to remain very difficult. Unfortunately, even
against this expectation, our results for the six months to December were
significantly below our objectives and very disappointing,” Chief Executive
Themba Mosai said in a statement.

The company was ensuring “continued senior team focus to drive this contract
to completion.”

The group said in December that, although the Kpone contract was 97 percent
complete with only commissioning remaining, further delays were being
experienced, which resulted in a loss on the contract of 649 million rand
($54 million).

($1 = 11.9915 rand)

Burkina Faso to end tycoon Frank Timis's manganese mining contract

OUAGADOUGOU (Reuters) - Burkina Faso will terminate a manganese mining
contract with the company of Romanian-Australian tycoon Frank Timis, its
mines minister said on Thursday.

“The state of Burkina Faso is going to terminate the contract with Timis
Mining Corp,” Mines Minister Idani Oumarou said on state television.

“But it must send them a first notice of default. The contract will be
terminated 90 days after the formal notice, which hasn’t yet been made,” he
said.

Zambia says its foreign debt is not more than officially stated

LUSAKA (Reuters) - Zambia’s $8.7 billion foreign debt has not been
understated and those saying it is higher should produce evidence, the
ministry of finance said on Wednesday, following market speculation that the
debt could be more than double the official figure.

Zambia, Africa’s second-biggest copper producer, has held talks with the
International Monetary Fund over an aid programme but the IMF rejected its
debt management plans in February.

Finance Ministry spokesman Chileshe Kandeta said in response to a query that
the government has evidence showing that the debt amounts to $8.7 billion.

“If anyone has creditor/debtor details indicating that it is higher, let
them produce empirical evidence,” Kandeta said, referring to the debt.

Gregory Smith, Renaissance Capital’s sovereign debt strategist, said in an
April report the government appears unwilling to reduce its new loans and
infrastructure contracts.

“Since Mozambique’s hidden debts became apparent there has been concern
about where else this might happen. Based on several online media stories,
Zambia has been singled-out as a potential source of hidden debt,” Smith
wrote in the report.

“But there is no hard evidence to suggest the probability is higher there
than for other sovereigns of similar credit ratings.”

Debt-ridden Mozambique, one of the world’s poorest countries, is struggling
to repay loans of more than $2 billion that were not approved by parliament.

The discovery in 2016 of the undisclosed loans prompted the International
Monetary Fund and foreign donors to cut off support, triggering a currency
collapse and leading to a default.

Zambia’s economy is expected to grow by more than 4 percent this year helped
by the mining, agriculture and construction sectors, Finance Minister
Margaret Mwanakatwe said last week.

Mwanakatwe said the government would complete a detailed debt sustainability
exercise within two weeks before re-opening discussions with the IMF.

Zambia will rearrange loans from Chinese companies and instead look to
borrow directly from the Asian giant’s government in a bid to satisfy IMF
conditions and unlock a potential $1.3 billion loan from the multilateral
lender.

Gold falls from 11-week high on stronger dollar, profit-taking

LONDON (Reuters) - Gold slipped from an 11-week high on Thursday as the
dollar gained and investors booked profits, but rising tensions over
military escalation in Syria prevented further losses.

Snapping a four-day winning streak, spot gold fell 0.8 percent to $1,341.50
an ounce by 1226 GMT. U.S. gold futures fell 0.8 percent to $1,349.20.

The dollar index gained 0.3 percent, dragging down commodities priced in the
U.S. currency.

“It’s looking like profit-taking,” said ING commodities strategist Oliver
Nugent, adding that support from geopolitical tensions was not enough to
bring gold back above $1,350.

Underpinning bullion was news that British ministers planned to gather on
Thursday to discuss whether to join the United States and France in possible
military action in Syria that could bring direct confrontation between
Western and Russian forces.

U.S. President Donald Trump on Wednesday warned Russia of imminent military
action in Syria over a suspected gas attack, declaring that missiles “will
be coming” and lambasting Moscow for standing by Syrian President Bashar
al-Assad.

Gold is often used as a store of value during times of financial or
political uncertainty, generally gaining along with assets such as the
Japanese yen and U.S. Treasuries.

“Expectations are that $1,350 will act as an initial pivot point for
near-term pricing,” said MKS SA precious metals trader Sam Laughlin.

“However, more importantly, key downside support around $1,335 to $1,340
should provide a base for a further test through the January high of
$1,366.”

Also supporting gold were lingering worries about a trade war between China
and the United States.

The U.S. economy was displaying signs of strength, minutes from the last
Federal Reserve meeting showed on Wednesday, increasing the likelihood of
higher interest rates.

A tightening in U.S. monetary policy dents the investment appeal of gold
because the metal pays no interest.

Among other precious metals, silver fell 0.5 percent to $16.54 an ounce
after hitting its highest in nearly two months at $16.87 in the previous
session.

Platinum was flat at $926.80 and palladium fell 1.3 percent to $948.50.

Palladium, however, has surged by more than 6 percent this week on concerns
that supply from top producer Russia could be hurt by sanctions imposed by
the United States.

U.S. sanctions were likely an initial trigger for a price rally, UBS said in
a note, but the expected recovery in palladium was still supported by strong
fundamentals.

Volkswagen puts Herbert Diess in the driving seat

Volkswagen has replaced its chief executive with Herbert Diess, who takes on
responsibility for the entire company after overseeing the VW brand.

He takes over from Matthias Mueller, who was appointed in 2015 at the height
of the diesel emissions scandal.

Mr Diess has clashed with unions and is known for his cost-cutting measures.

The move is part of sweeping changes announced by the German company, which
also owns several other brands including Audi and Porsche.

The carmaker said it will reorganise its 12 brands by creating six new
vehicle divisions and a special arm devoted to China, its largest market.

More details about the restructuring are expected to be revealed at a press
conference at VW's Wolfsburg headquarters on Friday morning.

The management shake-up signals VW's desire to move forward from the
emissions scandal and press on with its "Strategy 2025" plan to build
greener vehicles.

Mr Mueller had been running Porsche before being elevated to replace Martin
Winterkorn as VW chief.

He has presided over a wide ranging restructuring of the company and its
other brands.

However, in May 2017 prosecutors in Stuttgart said they were investigating
Mr Mueller over suspicions he may have known about the diesel cheating
before it became public.

The scandal, in which VW installed emissions-cheating software in 11 million
vehicles worldwide, has cost the firm at least $30bn (£22.4bn) in fines and
other costs.

As well as cars, the VW empire spans motorbikes, bus, and truck operations.
Its brands also include Bentley, Scania, Skoda and Ducati.

VW chairman Hans Dieter Poetsch said in a statement that Mr Mueller had done
"outstanding work" for the company.

The statement continued: "He assumed the chairmanship of the board of
management in the fall of 2015 when the company faced the greatest challenge
in its history.

"Not only did he safely navigate Volkswagen through that time, together with
his team, he also fundamentally realigned the group's strategy."

'Man of action'

However, Mr Mueller was seen by critics as having failed to refocus the
group's portfolio of brands, a key pillar of "Strategy 2025" to transform
the company into a leader in cleaner cars after the diesel scandal.

Some analysts cheered the appointment of Mr Diess.

"Diess is a man of action, he is the most plausible choice at VW to lead the
group into the next phase of its transformation," said Nord LB analyst Frank
Schwope.

VW also announced that works council executive Gunnar Kilian would replace
Karlheinz Blessing as human resources chief.

And the chief executive of Porsche, Oliver Blume, will join the main VW
board.--BBC

Trump to reconsider joining TPP trade pact

US President Donald Trump has said he will only join the Trans Pacific
Partnership (TPP) if the deal is "substantially better" than the one offered
to President Barack Obama.

The TPP is the free trade pact with primarily Asia-Pacific nations that Mr
Trump backed out of last year.

Just hours earlier, Mr Trump had unexpectedly said the US would consider
rejoining the pact.

The president has previously criticised the deal as a potential "disaster".

But his trade strategy is under fire as a conflict escalates with China.

It has also upset some of his fellow Republicans - especially those
representing farmers who are expected to be hurt should the latest proposed
tariffs be pushed through.

Politicians on both sides are worried that Mr Trump is leading the US into a
damaging economic battle with China, after levying tariffs on steel and
aluminium and threatening taxes on billions more in Chinese goods.

They have said the administration should be working with other countries to
pressure China, instead of wielding tariffs that invite retaliation on
industries such as agriculture.

Senator Ben Sasse, a Republican who represents Nebraska and has been sharply
critical of the tariffs, said it was "good news" that the president directed
top staff, including US Trade Representative Robert Lighthizer, to negotiate
US entry into TPP.

"The best thing the United States can do to push back against Chinese
cheating now is to lead the other 11 Pacific nations that believe in free
trade and the rule of law, " he said.

The TPP, a trade deal that was to involve 12 countries including the US, was
conceived under former President Barack Obama as a way to counter China's
surging power in the region.

Labour unions and others had criticised it as too favourable to business. Mr
Trump's Democratic rival in the 2016 election, Hillary Clinton, also came
out against the agreement during the campaign.

Withdrawing from the deal was one of Mr Trump's first acts as president,
delivering one of his core campaign promises.

After he withdrew, the remaining 11 countries continued to negotiate over
the pact, signing the deal in March.

Exporters, such as farmers, have said they are now concerned that the US
will be at a disadvantage to competitors in the region.

Mr Trump ordered his staff to evaluate rejoining "on our terms", according
to accounts from the meeting. He has previously said he might reconsider the
deal.

London Stock Exchange names David Schwimmer as new boss

The London Stock Exchange has appointed a new chief executive to replace
Xavier Rolet, who quit last November amid a bruising boardroom row.

David Schwimmer, who has spent 20 years at investment bank Goldman Sachs,
will take up the post on 1 August.

The stock exchange described him as "a leader with great experience".

Mr Rolet was asked to leave a year earlier than planned, with one of the
firm's biggest shareholders claiming he was forced out.

Under Mr Rolet's leadership, the company's value went from £800m to nearly
£14bn, but press reports suggested some staff disliked his management style.

Following the row, the stock exchange announced that its chairman, Donald
Brydon, who had faced a shareholder vote on the decision to remove Mr Rolet
from the board, would step down in 2019.

Sir Chris Hohn, the hedge fund tycoon whose fund owns more than 5% of the
LSE, had pushed for Mr Rolet to remain as the stock exchange's boss and for
Mr Brydon to leave instead.

'Robust intellect'

Mr Brydon said he was "delighted" to announce Mr Schwimmer's appointment
after "a comprehensive global search".

He added: "David is a leader with great experience in the financial market
infrastructure sector, which he has been closely involved in throughout his
investment banking career, as well as capital markets experience in both
developed and emerging markets.

"He is well known for his robust intellect and partnership approach with
clients and colleagues alike."

Mr Schwimmer, aged 49, is currently Goldman Sachs' global head of market
structure and global head of metals and mining.

"It seems an odd choice to go for an investment banker with little
experience in equities, though at least he and [Mr] Rolet have both worked
for Goldman Sachs," said Michael Hewson, chief market analyst at CMC
Markets.

"I'm sure he will be a good appointment, given his experience at Goldman
Sachs, but why he won't be joining until 1 August also seems rather odd."

WTO warns over tit-for-tat trade wars

Global trade has seen its most rapid growth in six years, says the World
Trade Organization's annual analysis.

But the positive news could be put at risk by tit-for-tat tariff wars that
have broken out, according to the head of the WTO, Roberto Azevedo.

Broader global tensions could also see trade suffer.

Last month, President Donald Trump unveiled plans for a 25% tariff on US
steel imports from countries such as China and a 10% tariff on aluminium.

That followed an announcement earlier in the year for tariffs - import taxes
- on washing machines and solar panels.

The president said that battles on trade were good and "easy to win".

China responded by imposing its own tariffs on US goods and has complained
to the WTO and threatened legal action, claiming unfair treatment.

'Unmanageable escalation'

"The strong trade growth that we are seeing today will be vital for
continued economic growth and recovery and to support job creation," said Mr
Azevedo, the WTO director-general.

"However, this important progress could be quickly undermined if governments
resort to restrictive trade policies, especially in a tit-for-tat process
that could lead to an unmanageable escalation.

"A cycle of retaliation is the last thing the world economy needs."

He said that countries should show restraint and settle their differences
"through dialogue" and collective action.

China has already announced retaliatory action against the US move,
announcing tariffs of up to 25% on US imports such as pork, fruit, nuts and
wine.

Despite growing fears over a global trade war between the world's two
largest economies, trade volume growth in 2017 hit 4.7%, the highest level
since 2011.

Stronger world growth and increasing levels of consumption have driven the
rise, which has helped, for example, the UK economy, where exports are
valued at more than £600bn a year.

Tariff uncertainty

WTO economists said that 2018 should see trade growth expansion of about
4.4%, well above the post financial crisis average of 3%, though still below
the 4.8% average seen in the 1990s.

The WTO annual trade report said risks were now "tilted to the downside"
because of the uncertainty over tariff policy, which could affect business
investment and that trade growth would slow to about 4% in 2019.

It also cautioned that central banks were looking to tighten monetary policy
- for example, by raising interest rates - at a faster pace.

The Bank of England has already said that interest rates are set to rise
more quickly than previously thought, with the next rise expected by the
markets as early as next month.

China's Uber has plans to take on the rest of the world

You've probably already heard of China's Didi Chuxing. It's the ride-hailing
firm best known for driving Uber off China's streets.

It is now also the world's largest ride-hailing app, and with its worth
currently at $56bn (£39.4bn), it is also the world's most valuable start-up.

But how much do you know about its enigmatic, low-key founder, Cheng Wei?

Well for a start, he's only 35 years old.

"I was born in 1983," he tells me as we walk around the massive Didi complex
on a chilly Beijing morning.

It is his first TV interview with foreign media.

"My entire management team has a lot of people in their 30s," he says. "We
are idealistic and can be rash sometimes, but we also bring a lot of
surprises."

No-one could accuse Cheng Wei of being rash. Every step of the Didi journey
has been well planned.

His first step was to rule the market in China.

His next step, he tells me, is to take over the world: "The Chinese market
is of course very important, but today Didi's vision is already going
global."

But Cheng Wei is quick to point out that Didi's way of entering new markets
is not what most in the West may be used to.

"Didi's global strategy may be a little different from others," he says,
smiling. "Our strategy isn't always to do everything ourselves."

"But in markets where there aren't any successful local companies, then Didi
will enter that market to share our experience. That's what we're doing
right now."

Global market moves

Precisely and methodically, Didi is making its move into global markets.

It has already entered Japan and Taiwan. And earlier this year, it acquired
99, Brazil's leading ride-hailing app.

Just this week, the company told the BBC it was also launching in Mexico.
The move will set it up to compete against its old American nemesis - Uber -
right in that firm's own backyard.

But expanding internationally for Didi may not be all that easy, simply
because of the suspicions Chinese companies sometimes face when they try to
go overseas.

Take Chinese telecommunications giant Huawei, for instance.

Earlier this year, Huawei said it was not able to strike a deal to sell its
new smartphone via a US carrier, over security concerns.

The scuppered deal was just the latest example of a Chinese firm struggling
to do business in the US.

Huawei hit back and said that the reason the US wanted to keep it out of the
country was because it is too competitive.

But many US politicians and businesses believe that Chinese companies have
been given an unfair advantage by their government.

Some also say that Chinese companies that deal in data, as Didi does, hand
that data back to the Chinese government - a perception Cheng Wei is quick
to correct.

"When American companies first entered China, there were also these
concerns," he says.

"Whether you're Chinese or American, data is the lifeline of any business.
If you can't guarantee data security, that's going to be totally destructive
for the business."

Not old China

Cheng Wei is very much the face of new China.

He's quietly confident, with the conviction to carry out what he wants to
achieve. And he's got the cash to splash on ambitious plans for the future.

"This is not old China. This is a new generation, " says Chris DeAngelis,
who routinely advises Western companies coming into China.

"The US needs to wake up because right now, we're going to get our asses
kicked basically," adds Chris, speaking of the prowess that Chinese tech
firms such as Didi have over American ones.

But Cheng Wei isn't losing any sleep over the US-China rivalry.

"For the past two decades, it was China who learned more from the US," he
says. "But in the next 10 years, we'll ride on each other's successes.
There's no point thinking who will surpass who."

Watch out world, Didi is coming.

British Airways owner considers Norwegian bid

The owner of British Airways may bid for Norwegian Air Shuttle, the
fast-expanding budget airline.

Buying the airline would allow International Airlines Group to increase its
market share amid rising competition from low-cost carriers.

Norwegian said it had not been aware that IAG had acquired a 4.6% stake
until media reports on Thursday.

Shares in Norwegian closed 47% higher after news of the bid interest
emerged, while IAG fell 1.2%.

Norwegian said it has not held talks with IAG but said the interest
"confirms the sustainability and potential of our business model and global
growth".

The low-cost airline changing the way we fly

Airline group IAG opens Paris base for Level

IAG said it had bought a minority stake in the airline with a view to
opening talks about a deal.

"The minority investment is intended to establish a position from which to
initiate discussions with Norwegian, including the possibility of a full
offer for Norwegian," IAG said.

However, it said no discussions have taken place and it had not decided
whether to make an offer.

Analysis: Simon Jack, BBC business editor

Norwegian has been ruffling feathers in the aviation market, bringing a
budget airline model to the long-haul sector. The industry is divided as to
whether it works when you cross the Atlantic.

Norwegian has bet big that it does. Starting life as a short-haul carrier,
it has nearly 200 long-range aircraft on order and the legacy carriers have
had to respond.

BA is dabbling with its own offshoot, Level, and announced cheaper fares for
BA long-haul passengers not checking in bags and not wanting food and drinks
included in the fare. Air France's Joon is also trying to cut long-haul
costs.

Norwegian is still losing money and its finances are stretched by the number
of planes it is buying, but today's announcement from BA suggests Norwegian
has proved the concept is sound.

Whether passengers are best served by a legacy carrier swallowing a
competitive upstart is another debate.

Norwegian Air has earned a name for its low-cost deals, such as £99 one-way
flights from Edinburgh and Dublin to New York.

However, it posted a net loss in 2017 and had to raise fresh funds earlier
this year to cope with its rapid expansion and higher fuel costs.

Nevertheless, its move into discount intercontinental flights has shaken up
the market and forced bigger rivals such as IAG and Air France to take
measures to win back customers.

IAG has already put a toe in the budget long-haul market with Level from
Barcelona, while adding European airport slots from failed UK airline
Monarch.

'Poaching'

IAG chief executive Willie Walsh has long been interested in low-cost
long-haul concept long before it set up Level, said Liberum analyst Gerald
Khoo.

"This may be an attempt to accelerate its development, while also adding to
the scale and reach of [IAG-owned] Vueling in the intra-European market."

This week, BA began selling "Basic" tickets from London to destinations
including Boston, Delhi, Dubai, Hong Kong and Singapore.

Fares start from £143, but passengers must pay £60 to check a bag and £20
for seat selection.

Simon Calder, travel editor of the Independent, told the BBC: "The main
purpose of this initial move is to get more competitive with Norwegian,
which is building an extensive network from Gatwick and poaching passengers
from British Airways. Most of the first 10 destinations are on the Norwegian
network."

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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