Major International Business Headlines Brief::: 27 July 2018

Fri Jul 27 12:14:37 CAT 2018

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Major International Business Headlines Brief::: 27 July 2018

 <http://www.nedbank.co.zw/> 

*  Kenyan car and hotels firm Simba Corp eyes Ethiopia

*  Russia's Rosatom "still interested" in nuclear power generation in S.Africa

*  Ethiopia set on economic reforms, but won't be rushed: cenbank head

*  South Africa's ruling party wants private investment in Eskom

*  Russia's Putin raises nuclear deal at Ramaphosa meeting during BRICS

*  South African rand stronger against dollar, focus on BRICS summit

*  Facebook's return to China thrown into doubt

*  BP buys US shale assets for $10bn

*  Amazon delivers record quarterly profit

*  Papa John's founder sues pizza chain

*  Brexit: Barnier rules out key UK customs proposal

*  Facebook shares close 19% lower after growth warning

*  Brics back 'open world economy' that benefits all nations

*  Airbus shares soar on higher profits

*  IT fiasco pushes TSB into a loss

 <mailto:info at bulls.co.zw> 

Kenyan car and hotels firm Simba Corp eyes Ethiopia

NAIROBI (Reuters) - Kenyan new vehicles dealer and hotels operator Simba Corp. is looking to expand into neighbouring Ethiopia if the Addis government opens up the foreign exchange market, its CEO said on Thursday.

Kenyan businesses, from telecoms to banking to farming, are trying to position themselves to take advantage of a wave of political and economic liberalisation unleashed in the last three months by new Ethiopian prime minister Abiy Ahmed.

Dinesh Kotecha, the chief executive of the $100 million- annual-revenue Simba, said the firm has been closely monitoring developments in Ethiopia, which has a population of 100 million people.

“We are very open to whatever opportunities come up out there. We are willing to look at any possibility, it could be greenfield, it could be partnership with an established business in Ethiopia,” Kotecha told Reuters in an interview.

“All we wait to see is regulations to enable business environment such as liberalization, to some extent, of the foreign currency so it doesn’t restrict you in terms of going into business.”

The 50-year old firm, which started life as a second-hand car dealership and is wholly owned by local investors, sells 17 percent of new vehicles in Kenya each year through its franchises for Mitsubishi, BMW, Fuso, Renault and Mahindra.

It also owns a luxury, five start hotel in Nairobi that is managed by Kempinsiki, a tourist camp in the Maasai Mara game reserve and another local hotel brand called Acacia.

Kotecha said the group, which has three independent directors on its six-member board even though it is private, might list its shares in the next five years. He did not give more details.

Simba’s wholly owned vehicle assembly subsidiary, AVA, could double its employees from the current 300 if the government pushes through plans to encourage local manufacturing, Kotech said.

President Uhuru Kenyatta, who was sworn in for a second and final term last November, has made manufacturing one of his “Big 4” priorities due to its potential to create much needed jobs.

“The government is looking into the regulations that would favour local assembly of motor vehicles... With change in regulations, we expect motor vehicle assembly to increase,” Kotecha said.

He cited a rule requiring vehicle assemblers to source more parts locally, which is under consideration.

 <mailto:info at bulls.co.zw> 

Russia's Rosatom "still interested" in nuclear power generation in S.Africa

JOHANNESBURG (Reuters) - Russian state nuclear firm Rosatom is “still interested” in any deal to expand South Africa’s nuclear power-generating capacity and would follow the correct procedures if the South African government invites bids, a senior Rosatom official told Reuters.

“If there is a place for nuclear energy in the energy mix, we are happy to cooperate. We are happy to follow each and every procedure that will be communicated to us by the South African government,” said Dmitry Shornikov, Rosatom’s chief executive for central and southern Africa.

Ethiopia set on economic reforms, but won't be rushed: cenbank head

ADDIS ABABA (Reuters) - Ethiopia has embarked on a root-and-branch overhaul of its economy, though its currency will not be devalued any time soon and liberalising the state-dominated banking sector will take years, the recently appointed head of its central bank said.

Yinager Dessie took the helm last month as one of the main players in a far-reaching programme of political and economic reforms that Prime Minister Abiy Ahmed is pushing though.

In a candid interview at odds with the secretive traditions of the National Bank of Ethiopia (NBE), the 47-year-old Yinager said the country was making a clean break with the state-driven economic model phased in following the end of military rule in 1991.

“We cannot move the way we were moving the past 15-16 years,” he told Reuters on Wednesday, referring to a period of rapid growth driven by huge state investments in infrastructure.

“We should look into new ways of managing the economy.”

Massive change has swept through the country of 100 million people since Abiy took office in April and set about dismantling the status quo.

The 41-year-old has made peace with neighbour Eritrea - a move that could bring substantial economic benefits to landlocked Ethiopia - ended a state of emergency, freed political prisoners and put a complacent civil service on notice.

The government has also said it wants sell stakes in state-owned firms in the hope the private sector will boost already pacy growth and create jobs for the hundreds of thousands of young Ethiopians entering the market each year.

“If we maintain and sustain this environment politically, it will create tremendous opportunity for this country,” Yinager said.

In an attempt to boost exports, the bank devalued the birr currency by 15 percent in October for the first time in seven years

While acknowledging a chronic shortage of dollars that is stifling growth, Yinager ruled out any further devaluation in this financial year, which runs until next July.

OPENING UP

Yinager’s predecessor held the position for two decades, during which time he granted only a handful of interviews to state media. Ethiopian journalists joked that he was as shadowy as the head of the intelligence services.

By contrast Yinager, a former National Planning Commission head who holds a PhD in environmental science from a university in Vienna, was happy to acknowledge the problems facing the economy and admit the government was seeking help to solve them.

“We have established a working group which deals with reforms in the finance sector... that will be supported by experts from the World Bank and IMF,” he said.

When and how to liberalise the antiquated banking sector, currently off-limits to foreign investors, is a sensitive issue for the government, however.

Yinager said establishing mobile banking was a priority, but authorities would tread carefully for fear that local lenders, locked in a 20th century banking time-warp, would be crushed by an influx of international banks.

“It requires some sort of preparation to liberalise our banking system, so we are working on that,” he said, adding this process would take “some years”.

the currency crunch that Ethiopia has been battling has eased slightly over the last two months with a sharp narrowing of the gap between the official and black-market birr rates.

But businesses that need hard currency to import raw materials say the unpredictability of the central bank’s foreign currency allocation system has forced some to lay off staff or shut down completely.

“This is one area where we are going to make some reform,” Yinager said, acknowledging that one of the main reasons for the overhaul was the need for the economy to generate more dollars.

In the last three weeks, remittances from Ethiopia’s huge diaspora had also started flowing through the official market, he added, declining to give figures.

More short-term relief had come from a $1 billion deposit by the United Arab Emirates into central bank coffers, support that Addis was trying to replicate with other foreign governments, including Saudi Arabia, he said.

“Other countries have shown huge interest to give us billions of dollars,” he said, declining to give details.

Yinager also said Addis was looking at ways to reduce its reliance on loans from China, which he said was the source of 85 percent of Ethiopia’s external debt.

South Africa's ruling party wants private investment in Eskom

JOHANNESBURG (Reuters) - South Africa’s ruling party wants greater private investment in struggling state-owned power utility Eskom, African National Congress Treasurer General Paul Mashatile said on Thursday.

Mashatile also said the ruling party was holding discussions about splitting up Eskom’s operations. He was speaking during a business breakfast on the sideline of a BRICS summit in Johannesburg.

Cash-strapped Eskom reported a 2.3 billion rand ($175 million) loss for the financial year which ended in March.

($1 = 13.1275 rand)

Russia's Putin raises nuclear deal at Ramaphosa meeting during BRICS

JOHANNESBURG (Reuters) - Russian President Vladimir Putin raised the subject of a nuclear deal at a private meeting with South African President Cyril Ramaphosa at the BRICS summit in Johannesburg, but his host said Pretoria could not sign such a deal for now.

Russian state firm Rosatom was one of the front runners for a project to dramatically increase South Africa’s nuclear power-generating capacity championed by former president Jacob Zuma.

Ramaphosa has put nuclear expansion on the back burner since taking office in February, saying it is too expensive, and has focused instead on pledges to revive the economy and crack down on corruption.

“While we remain committed to an energy mix that includes nuclear, South Africa is not yet at the point where it is able to sign on the dotted line,” Ramaphosa’s spokeswoman Khusela Diko said about the meeting between Putin and Ramaphosa.

Hours earlier, one of the top six officials in South Africa’s ruling African National Congress (ANC) had said that Pretoria would not rush into major nuclear investments but that it was still open to future deals with Russia.

“Once we are clear that this is affordable for us to do, we are open for business including with Russia,” ANC Treasurer General Paul Mashatile said.

He spoke on the sidelines of a three-day BRICS summit attended by the leaders of Brazil, Russia, India, China and South Africa.

“I think the approach we will take is to avoid the Big Bang approach. The initial intervention was that we would do close to 10,000 megawatts (MW). ... It’s unaffordable,” he said.

Mashatile also said the ANC wanted greater private investment in struggling state-owned power utility Eskom, which swung to a loss for the year to end-March.

ROSATOM STILL KEEN

Russia wants to turn nuclear energy into a major export industry. It has signed agreements with African countries with no nuclear tradition, including Rwanda and Zambia, and is set to build a large nuclear plant in Egypt.

Rosatom is “still interested” in helping South Africa expand its nuclear capacity, a Rosatom executive told Reuters.

“If there is a place for nuclear energy in the energy mix, we are happy to cooperate. We are happy to follow each and every procedure that will be communicated to us by the South African government,” said Dmitry Shornikov, Rosatom’s chief executive for central and southern Africa.

Rosatom on Thursday signed a separate agreement with South African state nuclear firm Necsa to explore joint production of nuclear medicines and other ways of harnessing nuclear technology, a statement from the two firms showed.

The agreement, which is non-binding, is a further sign that Rosatom is keen to cement its position on the African continent.

South Africa currently operates Africa’s only nuclear power plant, with an installed capacity of around 1,900 MW.

The nuclear expansion deal backed by Zuma envisaged adding an additional 9,600 MW, but ratings agencies cited the project as a cause for concern given the country’s recurring budget deficits and ballooning public debt.

South African rand stronger against dollar, focus on BRICS summit

JOHANNESBURG - South Africa’s rand rose early on Thursday against a weaker dollar, with focus on the final day of the BRICS summit.

At 0647 GMT the rand was 0.32 percent stronger at 13.2050 to the dollar, compared with its New York close of 13.2475.

The dollar trimmed some losses against the yen on Friday after the Bank of Japan conducted a special government bond-buying operation to arrest a rise in long-term yields but still remained slightly weaker down 0.1 percent.

“BRICS remains the key focus for the rand, along with US GDP out later today,” Nedbank analysts said in a morning note.

Analysts expect the rand to trade in the range of 13.1000 to 13.4000 to the dollar.

BRICS leaders meet for the final day of their summit in Johannesburg.

In fixed income, the yield for the benchmark paper due in 2026 was down 0.5 basis points to 8.620 percent.

Stocks opened lower/higher at 0700 GMT, with the Johannesburg Stock Exchange’s Top-40 futures index up 0.36 percent.

Facebook's return to China thrown into doubt

Facebook's plans for an imminent comeback in China's huge social media market appear to have stalled.

The company, like all major US tech platforms, has been blocked in the country since 2009.

Facebook said on Wednesday it had secured a licence to set up an "innovation hub to support Chinese developers, innovators and start-ups".

But 24 hours later, there are widespread reports the licence has been withdrawn from the government database.

It is possible, according to reports, that Facebook has fallen victim to competing political and business interests.

While the innovation hub would not have allowed Chinese social media consumers to use Facebook's main app, or Facebook-owned Instagram and WhatsApp, it would have given the company an important foothold back in China.

Facebook founder, Mark Zuckerberg, has made several attempts to charm Chinese officials over the years. Two years ago he jogged through Tiananmen Square without a facemask, appearing to downplay high-levels of pollution, he is reported to have read the collected speeches of Xi Jinping and has gone to the trouble of learning Mandarin.

Chinese users can only access domestic social media sites such as Weibo, Renren and YouKu, which the government can monitor.

According toan official filing this week, Facebook was registered in the southern China city of Hangzhou and the operation financed with an investment of £30m. The filing was seen by Reuters and the New York Times on China's National Enterprise Credit Information database.

The social media giant had said the office in China would be the same as hubs it has set up elsewhere, such as in France, Brazil, India and South Korea.

"Our efforts would be focused on training and workshops that help these developers and entrepreneurs to innovate and grow," it said.

It was unclear exactly why the licence to open the hub was subsequently withdrawn. The New York Times suggested it may have been because China's internet regulator, the Cyberspace Administration of China, was angry it had not been consulted. about the approval process.--BBC

BP buys US shale assets for $10bn

British oil and gas giant BP is buying $10.5bn (£8bn) of US shale assets as the higher oil price makes new extraction techniques more attractive again.

BP's purchase is its largest acquisition since the Deepwater Horizon accident in the Gulf of Mexico, which it is still paying for in the US.

The assets are being sold by Australian mining firm BHP Billiton.

BP's boss, Bob Dudley, called the deal "a transformational acquisition".

"This is... a major step in delivering our upstream strategy and a world-class addition to BP's distinctive portfolio," he said in a statement.

The deal marks a turning point for BP, which has had to rebuild its reputation in the US and is still paying the $65bn bill in clean-up and penalty costs resulting from the Gulf of Mexico rig disaster in 2010.

BP said it was confident of the deal's positive impact on its fortunes, and as a result would increase the dividend it pays to its shareholders for the first time in four years and would buy back $6bn worth of shares.

However, BP shares fell 1.7% following the announcement in early London trading.

The deal is BP's largest acquisition for nearly 20 years and will increase its US onshore oil and gas resources by 57%.

Under the deal, BP 's American subsidiary will acquire Petrohawk Energy Corporation, which holds BHP's Eagle Ford, Haynesville and Permian assets in Texas and Louisiana.

BHP spent $20bn to buy the assets in 2011. That was followed by a fall in energy prices, undermining the value of BHP's investment. However oil and gas prices have recently climbed with oil currently priced at over $70 a barrel, making shale extraction more profitable again.--BBC

Amazon delivers record quarterly profit

Amazon has reported record quarterly profits helped by a rise in online sales and demand for its cloud services.

Profits hit a record $2.53bn (£1.9bn) in the three months to the end of June - about 12 times more than it made during the same period last year.

Sales rose by 39% to $52.89bn, slightly less than analysts had been forecasting.

Amazon's shares jumped more than 3% in after-hours trade.

"It was a strong quarter," said chief financial officer Brian Olsavsky. "What I attribute it to is continued strength in some of our most profitable areas."

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At the firm's lucrative cloud services division, Amazon Web Services, sales were up nearly 50% year-on-year to $6.1bn.

Amazon is also starting to attract more money from advertising.

Revenue from the firm's "other" category, which includes advertising, more than doubled to about $2.2bn.

Retail sales in North America were healthy as well, rising about 44% to almost $32.2bn.

Recruitment slowed in the quarter. Amazon is also starting to reap the benefits of previous infrastructure investments, allowing for less rapid spending growth, Mr Olsavsky said.

'Music to ears'

Daniel Ives, chief strategy officer at GBH Insights, said Amazon's profitability appears to be accelerating faster than expected.

That, he wrote, will be "music to ears of investors" who have stood by Amazon and its famously long-term approach to deferring profit in favour of reinvesting in the company.

Amazon is expected to account for roughly half of online sales in the US this year, according to research firm eMarketer.

The company told investors that it expects third quarter sales in the range of $54bn- $57.5bn, growth of 23% to 31%.--BBC

Papa John's founder sues pizza chain

The founder and former chairman of Papa John's has taken the company to court seeking access to documents related to his exit from the pizza chain.

John Schnatter resigned earlier this month after apologising for using the N-word in a conference call.

Lawyers for Mr Schnatter said they wanted to see the documents because of the "unexplained and heavy-handed way" that Papa John's had treated him.

Papa John's said it was "saddened and disappointed" by the lawsuit.

Mr Schnatter filed the complaint on Thursday in Delaware Chancery Court.

Papa John's founder resigns over N-word

Papa John's founder to go from branding

His attorneys said they were "seeking to inspect Company documents because of the unexplained and heavy-handed way in which the Company has treated him since the publication of a story that falsely accused him of using a racial slur".

"Rather than address the real issues like the health of the business, the company is hiding documents that, we believe, will disclose the actual facts as to what is occurring here, including using Mr Schnatter as a scapegoat to cover up their own shortcomings and failures," they added.

In a statement Papa John's said the company was "saddened and disappointed" that Mr Schnatter had filed a "needless and wasteful lawsuit in an attempt to distract from his own words and actions".

"We are providing Mr Schnatter all of the materials he is entitled to as a director.

"We will not let his numerous mis-statements in the complaint and elsewhere distract us from the important work we are doing to move the business forward for our 120,000 corporate and franchise team members, and our franchisees, customers and stakeholders," the company said.

After Mr Schnatter's resignation the company said it would remove his image from its branding.

Papa John's is the world's third-largest pizza chain, with more than 350 outlets in the UK and 4,900 restaurants worldwide.

The incident occurred during a media training conference call in May between top staff at Papa John's and a marketing agency called Laundry Service.

According to Forbes, the call involved a role-playing exercise that was supposed to give Mr Schnatter experience in dealing with difficult issues.

When discussing how he would distance himself from racist groups, Mr Schnatter said that Colonel Sanders, the founder of KFC, had never faced criticism for using the N-word, Forbes reported.

It was not the first controversy involving Mr Schnatter. He resigned as chief executive last year after criticising the NFL over players' national anthem protests.--BBC

Brexit: Barnier rules out key UK customs proposal

The EU's chief negotiator has ruled out allowing the UK to collect customs duties on its behalf, a key UK proposal for post-Brexit trade.

Michel Barnier said the UK wanted to "take back control" of its money, law and borders - but so did the EU.

The EU would not delegate "excises duty collection to a non-member", he said.

Both he and UK Brexit Secretary Dominic Raab said progress had been made but "obstacles" remained before reaching a deal in October.

Mr Raab said: "We have agreed to meet again in mid-August and then to continue weekly discussions to clear away all the obstacles that line our path, to a strong deal in October - one that works for both sides."

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The UK's four Brexit options

He replaced David Davis, who quit as Brexit secretary in protest at Theresa May's plans for a future economic relationship between the UK and EU, as set out in the White Paper.

That set out in more detail the government's proposed customs system, the Facilitated Customs Arrangement for goods and agri-foods. The UK's plan involves it collecting some EU tariffs - in a bid to ensure frictionless trade in goods and to avoid a hard border in Northern Ireland.

Michel Barnier wants the UK to make a choice.

If it wants to have frictionless trade with the EU's single market then it will have to join a customs union, or something like it, which will mean applying the EU's tariffs and reducing the scope for doing free trade deals with others.

If it wants more freedom, it will have to agree arrangements with the EU that will reduce friction but not eliminate it altogether.

It's an old tune that sounds different after the publication of the UK's White Paper, which was supposed to have solved this dilemma.

It also sounds like the UK will propose a revamped version of its idea for avoiding a hard border between the Republic of Ireland and Northern Ireland but the two sides are still divided on whether that should have a time-limit or not.

Lost among all of this will be the nugget of good news: Big strides have been made on security co-operation after Brexit.

But Mr Barnier said retaining control of the money, law and borders also applied to the EU's customs policy.

"The EU cannot and the EU will not delegate the application of its customs policy and rules and VAT and excises duty collection to a non-member who would not be subject to the EU's governance structures," he said.

Any customs arrangement or union "must respect this principle", he said.

BBC assistant political editor Norman Smith said Mr Barnier appeared to have delivered a significant blow to Mrs May's controversial proposals, which have already been criticised by pro-Brexit Tory MPs.

Speaking after talks with Mr Raab, Mr Barnier said that Theresa May's Brexit White Paper plan was a "real step forward".

He highlighted agreement on security measures and said both sides wanted a wide-ranging free trade deal.

But he added: "To be frank, we are not at the end of the road yet."

While UK proposals on security marked "a real step forward" and he welcomed the acknowledgement that the European Court of Justice was the only arbiter of EU law, he added: "In contrast, on our future economic relationship, it comes as no surprise that finding common ground between the EU27 and the UK is more difficult."

Brexit Secretary Mr Raab said the UK proposals had been designed "to respect the result of the referendum, and the core principles of the EU".

"We have considered the innovative approaches the EU has taken in the past with other third countries - when the political will has been there," he said.

"In sum, the UK has set out our plans in detail. Those plans are ambitious, principled and pragmatic. I am committed to injecting new energy into these talks, along with Michel."

Turning to Mr Barnier, he said: "Michel, we have work to do."

The UK is due to leave the EU on 29 March 2019 but has yet to agree how its final relationship with the bloc will work.

The SNP's Angus MacNeil tweeted that the press conference spelt the end for the prime minister's Chequers plan:

Labour MP Ben Bradshaw, who is part of the People's Vote campaign for a vote on any final Brexit deal, said: "The White Paper is dead. It has expired. It has ceased to be."

For the Liberal Democrats, Christine Jardine said the prime minister's White Paper was "struggling to survive" .--BBC

Facebook shares close 19% lower after growth warning

Facebook shares fell sharply on Thursday, after the social media network warned investors of slowing revenue gains and increased spending.

The firm's shares closed nearly 19% lower, wiping more than $120bn (£92bn) off Facebook's market value.

The fall also dragged down the tech-rich Nasdaq share index, which closed 1% lower.

Facebook's forecast came as the firm faces a backlash over its handling of fake news and user data.

The company said it expected to boost spending by 50% or more, as it tries to improve the way it monitors content, tracks advertisers and treats user data - areas where it has faced regulator scrutiny.

The firm also warned investors that revenue growth would be hurt as people make use of new options to limit advertising and less profitable overseas markets drive growth.

Facebook, which also owns Instagram and WhatsApp, said its margins would shrink to the mid-30% range, from about 44% in the most recent quarter.

Contagious?

The concerns, despite Facebook's year-on-year revenue growth of more than 40% in the most recent quarter, appeared to infect some other technology stocks.

Twitter, which has faced similar criticism to Facebook and is due to report quarterly results to investors on Friday, closed down by nearly 3%.

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Other companies proved more resilient.

Alphabet, which owns Google and YouTube, and also relies on digital advertising, ended the day less than 1% lower (0.75%), while music streaming service Spotify gained almost 4.5%, after reporting stronger than expected user growth.

Many of the factors affecting Facebook are unique to the company, said Daniel Ives, chief strategy officer at GBH Insights.

The firm has been in the spotlight for its involvement with data firm Cambridge Analytica.

Facebook has also changed the news feed to emphasise posts from family and friends, tweaks that chief executive Mark Zuckerberg had previously cautioned would affect profitability.

Analyst Richard Greenfield of BTIG Research wrote in a note that investors were "overreacting".

He said Facebook remained a rich opportunity for advertisers, and the investments it is making should drive long term growth.

"We were pretty stressed out during Facebook's Q2 2018 conference call and could sense the fear/panic in investors voices afterwards," he wrote.

However, he added: "Mobile is eating the world and Facebook is a core holding to benefit from that shift."--BBC

Brics back 'open world economy' that benefits all nations

The leaders of the Brics emerging economies have signed a declaration stressing the importance of an "open world economy", in which all countries benefit from globalisation.

Brazil, Russia, India, China and South Africa also backed an "open and inclusive" multilateral trading system under World Trade Organization rules.

But they said the multilateral trading system faced unprecedented challenges.

Their comments come amid mounting trade tensions sparked by US tariffs.

The leaders have been meeting at the 10th Brics summit in Johannesburg.

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"We reaffirm the centrality of the rules-based, transparent, non-discriminatory, open and inclusive multilateral trading system, as embodied in the World Trade Organization, that promotes a predictable trade environment and the centrality of the WTO," the declaration signed by the five leaders said.

However, they added: "We recognise that the multilateral trading system is facing unprecedented challenges.

"We underscore the importance of an open world economy, enabling all countries and peoples to share the benefits of globalisation, which should be inclusive and support sustainable development and prosperity of all countries.

"We call on all WTO members to abide by WTO rules and honour their commitments in the multilateral trading system."

'Reject protectionism'

The Brics summit is the first since US President Donald Trump placed tariffs on billions of dollars' worth of goods from around the world, in particular China.

He has promised further levies on $200bn (£150bn) worth of Chinese products in September.

Mr Trump also wants to cut the trade deficit with China - a country he has accused of unfair trade practices since before he became president.

Mr Trump made a big point on the campaign trail about cutting the country's trade deficits.

He is convinced that they hurt US manufacturing, and has said repeatedly while campaigning and on Twitter that the US must do more to tackle them.

Speaking in Johannesburg on Thursday, Chinese President Xi Jinping said: "We must work together... to safeguard the rule-based multilateral trading regime, promote trade and investment, globalisation and facilitation, and reject protectionism outright."

On Wednesday, he said there would be no winner in a global trade war.--BBC

Airbus shares soar on higher profits

Profits at Airbus, Europe's largest aerospace company, more than doubled in the second quarter despite a slow start to 2018.

Bottlenecks of undelivered planes began to ease, while costs relating to its newest big jet, the A350, were down.

After a series of engine manufacturing issues caused delays, chief executive Tom Enders said deliveries had "picked up", but "challenges remain".

The results sent Airbus shares to a new record high of €111 in Paris.

The company has faced a backlog of up to 100 A320neo jets parked outside factories without their engines.

Many of the engines, which have been beset by glitches, are made by US-based manufacturer Pratt & Whitney.

A380's 'best years still to come'

Airbus chief: ministers have 'no clue' on Brexit

Earlier this month, Airbus said the firm was "catching up" and that there would be further improvement in the second half of the year.

Airbus, which is based in Toulouse, said adjusted profits before interest and other charges rose 110% to €1.15bn (£1.02bn) in the first half of 2018.

However, net profit for the six months fell 55% to €496m.

David Learmount, consulting editor at aviation publisher FlightGlobal, says Airbus have got the A350 program "to a point where deliveries are going well. They've got to the sweet spot."

The planemaker also reported orders and commitments for 431 aircraft during July's Farnborough Airshow, which are yet to be reflected in their figures.

Farnborough is a key international pageant for aircraft manufacturers.

Meanwhile Boeing, Airbus's main market rival, predicts global demand for aircraft will be worth $6.3tn (£4.8tn) in the next 20 years.

"The whole market is very healthy. And the reason is terribly simple - people like travelling," added Mr Learmount. "The future of commercial air transport is pretty rosy."

Shares in Airbus, which were trading at about €75 a year ago, were around 5% higher in morning trading, before falling back slightly.--BBC

IT fiasco pushes TSB into a loss

The technology meltdown at TSB earlier this year has cost the bank £176.4m, pushing it into a half-year loss.

In April, almost two million TSB customers lost access to online banking services after the bank bungled the introduction of a new IT system.

TSB said its performance was "significantly impacted" by the IT failure.

It reported a loss of £107.4m in the six months to 30 June compared with a profit of £108.3m last year.

"I know how frustrated many customers have been by what's happened," said TSB chief executive Paul Pester.

"It was not acceptable, and was not the level of service that we pride ourselves on - nor was it what our customers have come to expect from TSB."

The bank said that about 26,000 customers closed their account in the second quarter. However, it added that more than 20,000 customers opened a new bank account or switched their account to TSB in the same period.

TSB 'did not test IT systems properly'

How it all went so wrong for TSB

Botched switch

When TSB split from the Lloyds Banking Group, it continued to use Lloyds' computer system while a new one was developed.

In April, it carried out a planned migration of customer data, which involved moving customer records from the old system to one managed by its new Spanish owner, Sabadell.

However, the move left many customers struggling to make transactions and see their balances, with the problems continuing for several weeks.

TSB came under fierce criticism for the IT failings, and MPs on the Treasury Committee called on Mr Pester to resign.

But Mr Pester has remained in his post, and he told the Reuters news agency on Friday that he planned to stay with the bank. "I'm focused 100% on putting things right for our customers," he said.

The Financial Conduct Authority has formally launched an investigation into the meltdown. Its chief executive, Andrew Bailey, took the unusual step of making the probe public, "given the level of public interest".

TSB's loss was large enough to have dragged TSB's parent company, Spanish banking group Banco Sabadell, into the red. It reported a loss of €138.7m (£123m) in the three months to 30 June, due to costs stemming from TSB's IT problems.--BBC

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

NicozDiamond

shares delist from the ZSE

06/07/2018

Zimbabwe

Heroes’ Day

Zimbabwe

13/08/2018

Zimbabwe

Defence Forces Day

Zimbabwe

14/08/2018

The Harare Agricultural Show

The Harare Agricultural Show

The Harare Agricultural Show

August 27- September 1

 <mailto:info at bulls.co.zw> 

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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