Major International Business Headlines Brief::: 24 September 2018

Mon Sep 24 09:05:14 CAT 2018

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Major International Business Headlines Brief::: 24 September 2018

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*  South Africa's Ramaphosa outlines stimulus plan for ailing economy

*  Nigeria oil unions threaten nationwide strike over Chevron dispute

*  World bank disburses $500 million loan to support Tunisia budget - source

*  Libya's AGOCO resumes 3,000 bpd production at abandoned well in Messla

*  South Africa rand weakens against rebounding greenback, stocks rise

*  Egypt's GASC says it is seeking soyoil, sunflower oil in tender

*  South Africa's NUM union signs wage deal with AngloGold

*  Potential buyer ditches plan to acquire Bidcorp's UK logistics business

*  S.Africa's Life Healthcare not ruling out return to India after Max disposal

*  Ghana's government pulls planned five-year local currency bond

*  US-China trade: US imposes biggest round of tariffs yet

*  Porsche stops making diesel cars after VW emissions scandal

*  Sky: Comcast outbids Fox with £30bn bid for broadcaster

*  Swiss voters reject 'fair food' plans

*  How China is fighting back in the trade war

*  Pound falls after May's Brexit statement

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South Africa's Ramaphosa outlines stimulus plan for ailing economy

PRETORIA (Reuters) - South Africa’s president announced a multi-billion-dollar stimulus programme on Friday, earmarking funds for job creation and infrastructure development as he seeks to make good on a pledge to revive the country’s ailing economy.

Speaking a day after the central bank disappointed some in his ruling African National Congress (ANC) party by not cutting interest rates, Cyril Ramaphosa said the government needed to put the funds at its disposal to better use.

“We have to resort to reprioritising our budget,” Ramaphosa told reporters in Pretoria, adding that there was no room to increase spending or borrowing.

He said 50 billion rand ($3.5 billion) of “reprioritised expenditure and new project-level funding” would be used to boost economic growth and create jobs, and the government would also launch a 400 billion rand “medium-term” infrastructure fund.

“The central element of the economic stimulus and recovery plan is the reprioritisation of spending towards activities that have the greatest economic effect,” he said.

When he took over in February from Jacob Zuma, whose term of office was plagued by scandal, Ramaphosa staked his reputation on economic revival and he received a warm welcome from investors in part due to his strong ties to the business community.

But having stagnated for a decade, Africa’s most industrialised economy slipped further in the second quarter by entering recession for the first time since 2009, while the rand has weakened.

The local currency briefly extended gains after Ramaphosa’s speech before slipping back to trade 0.31 percent firmer against the dollar.

Some analysts were underwhelmed by the stimulus plan.

“This was a political speech. There was very little economics in it,” Nic Borain, an independent political analyst.

“It was a balancing act, although the market and other observers would have been looking for something more decisive. The real details will come in Nene’s budget in October.”

Warren Landgridge, a grain option trader at Riddermark Capital, said investing in agriculture would be a good move.

“It could only be beneficial for the country in the long term if money can be allocated to helping and equipping farmers,” he said.

SLOW GROWTH, HIGH UNEMPLOYMENT

Ramaphosa said the infrastructure fund would attract finances from development institutions and banks, private lenders and private sector and ordinary investors.

Finance Minister Nhlanhla Nene told the same event that the 50 billion rand fund would come from under-performing government programmes. He gave no detail and it was also not clear how much of the money would be new funding and how much would be shifted from other projects.

South Africa needs faster economic growth to reduce its 27 percent unemployment rate and alleviate poverty and inequality, which are stoking instability ahead of national elections next year.

But the central bank on Thursday also cut its gross domestic product forecast for 2018 and said there was little leeway in monetary policy to boost the economy beyond the new growth figure while the outlook for inflation had deteriorated.

Land and mining ownership reforms set in motion by Ramaphosa have also unnerved investors, and after an initial rally following his election as ANC leader in December and state president in February, business confidence has wavered.

Ramaphosa said the country’s economy would be put on a firmer footing by the measures he announced on Friday.

“Our economic challenges are huge and our difficulties are severe and in the end will take extraordinary effort and they will also take some time,” he said. “For several years our economy has not grown at the space we needed to create enough jobs.”

($1 = 14.2354 rand)

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Nigeria oil unions threaten nationwide strike over Chevron dispute

ABUJA (Reuters) - Nigeria’s two main oil unions have prepared their members for possible nationwide industrial action over a staffing dispute with Chevron, they said on Saturday.

Nigeria, an OPEC member, is Africa’s largest oil producer and crude sales make up around two-thirds of government revenues in West Africa’s largest economy. The dilapidated state of its refineries means the country imports most of its refined fuel.

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) accused U.S. oil major Chevron of attempting to sack thousands of Nigerian workers in violation of their contracts.

“NUPENG and PENGASSAN will not hesitate to embark on nationwide industrial action on this matter and we have already placed our members on red alert should the management of Chevron remain recalcitrant or adamant to rescind its anti-labour decision,” the unions said in a joint statement.

NUPENG President William Akporeha told Reuters the industrial action referred to would be a nationwide strike by members of the unions, who cover a broad range of jobs across the country’s oil industry.

Chevron did not immediately respond to requests for comment.

World bank disburses $500 million loan to support Tunisia budget - source

TUNIS (Reuters) - The World Bank has disbursed a $500 million loan to support Tunisia’s budget, an official source told Reuters on Thursday.

The disbursement raised Tunisia’s foreign exchange reserves to the equivalent of 78 days of imports, up from the equivalent of 68 days seen in recent weeks.

Libya's AGOCO resumes 3,000 bpd production at abandoned well in Messla

TRIPOLI (Reuters) - Libya’s National Oil Corporation (NOC) said on Saturday its subsidiary the Arabian Gulf Oil Company (AGOCO) had restored production at 3,000 barrels of oil per day (bpd) at an abandoned well in the eastern Messla field.

After 16 years of inactivity, production resumed at the well (HH86-65) using the latest drilling techniques developed by U.S. oilfield services company Schlumberger, the NOC said in a statement.

The oil-rich North African country was producing more than 1.6 million bpd before a 2011 NATO-backed uprising that toppled Muammar Gaddafi and led to political fragmentation and armed conflict. Messla’s output was around 70,000 bpd.

Since 2014, Libya has been divided between rival governments and military factions based in the east and west of the country, causing political deadlock and an economic crisis.

However, the NOC has continued to function relatively normally across Libya, which relies on oil exports for most of its income. Output has been hit by attacks on oil facilities and blockades, though last year it partially recovered to around one million barrels per day.

Earlier this month, the NOC suffered a shooting attack on its Tripoli headquarters, claimed by Islamic State militants, that killed two people and wounded 25. But it continued to manage its operations as normal, it said.

Along with the Tripoli-based central bank, the NOC is one of the only state enterprises still functioning well despite the conflict.

South Africa rand weakens against rebounding greenback, stocks rise

JOHANNESBURG (Reuters) - South Africa’s rand reversed earlier gains to fall 1 percent as the dollar firmed, with the local currency trimming gains partly caused by a raft of measures meant to revive the economy announced by President Cyril Ramaphosa.

Stocks gained ground as global markets rallied on easing concerns over the United States and China trade dispute.

The rand was 0.79 percent weaker at 14.4000 per dollar at 1420 GMT.

The dollar, which is still set for its biggest weekly drop since February, rebounded as investors consolidated positions before the weekend.

The rand had firmed to trade at a session best of 14.2000 to the dollar after Ramaphosa announced a multi-billion-dollar stimulus programme.

“The rand is not alone. Many emerging market currencies have given up some ground, the Turkish lira, Russian rouble and Mexican peso on dollar strength,” ETM economist Halen Bothma said.

“The rand has worked hard over the last two days and the stimulus package is nice but is not going to change the economic growth outlook.”

In fixed income bonds were slightly weaker, with the yield on the benchmark government paper due in 2026 up 1 basis point to 9.100 percent.

On the bourse, the top 40 index rose 1.37 percent to 51,107 points. The broader all share index was 1.26 percent higher at 57,259 points.

Global markets reached their highest levels in more than six months as investors took the view that the latest exchange of tariffs between the United States and China may be less damaging than initially feared. On the downside, food distributor Bid Corporation Ltd (Bidcorp) fell 3.11 percent after it said the prospective buyer for its UK logistics business is no longer interested in buying it, citing internal reasons.

Egypt's GASC says it is seeking soyoil, sunflower oil in tender

DUBAI (Reuters) - Egypt’s state buyer, the General Authority for Supply Commodities (GASC), said on Saturday it was seeking cargoes of soyoil and sunflower oil in an international purchasing tender.

GASC is seeking at least 30,000 tonnes of soyoil and 10,000 tonnes of sunflower oil. The agency will also accept offers of at least 10,000 tonnes of soyoil and 5,000 tonnes of sunflower oil in Egyptian pounds.

The vegetable oils are for arrival between Oct. 25 and Nov. 10, according to GASC vice chairman Ahmed Youssef. The deadline for offers is Tuesday.

South Africa's NUM union signs wage deal with AngloGold

JOHANNESBURG (Reuters) - South Africa’s National Union of Mineworkers (NUM) signed a three-year wage deal with AngloGold Ashanti on Friday, inking the same agreement that other unions reached with the company earlier in the week.

The agreement will mean an effective pay hike of over 12 percent for entry-level underground workers in the first year, over double the inflation rate, an industry trend in recent years that has hit margins and made many shafts unprofitable.

Gold producers have argued that above-inflation wage hikes have added to the cost burden in the bullion industry, which has also been hit by depressed prices, labour unrest and declining grades at depths of up to 4 kms (2-1/2 miles).

Harmony Gold, Sibanye-Stillwater and smaller producer Village Main Reef have yet to sign wage agreements with unions.

Potential buyer ditches plan to acquire Bidcorp's UK logistics business

JOHANNESBURG (Reuters) - International food distributor Bid Corporation Ltd (Bidcorp) said on Friday the prospective buyer for its UK logistics business is no longer interested in buying it, citing internal reasons.

In August the South African company said is was finalising an agreement to sell that business to an unidentified global company, moving a step closer to removing the loss-making, non-core asset.

“Bidcorp is currently considering alternative proposals which were suspended due to the advanced sale process,” it said in a statement.

Bidcorp bought the UK Contract Distribution business in 1999. It had a few large contracts with fast-food chains like Yum Brands Inc’s KFC and Burger King but has struggled to contribute to the group’s overall profit, with too many risks and no opportunity for margin growth.

The exit of KFC in February, along with accompanying redundancies and restructuring as well as downscaling of properties and vehicles, contributed to significant annual losses at the business, Bidcorp said in August.

The firm is implementing numerous initiatives to improve the business and those plans are yielding positive results, it said on Friday.

“The trading performance for the two months to end-August 2018 has delivered a near breakeven position, which is a significant improvement compared to the same period in the previous financial year,” it said.

S.Africa's Life Healthcare not ruling out return to India after Max disposal

JOHANNESBURG (Reuters) - South African private hospital group Life Healthcare has said it is not ruling out a return to India after selling the firm’s entire stake in Max Healthcare, in an effort to focus on its operations elsewhere.

The hospital group said on Wednesday it will sell its entire 49.7 percent stake in India’s Max Healthcare to global investment firm KKR & Co. L.P. for 4.3 billion rand ($293 million).

“In the long-term, India is still a very exciting healthcare environment. South Africa is still a strategic focus for us and Europe, given the significant investments we have made there in recent years,” Chief Executive Shrey Viranna told Reuters on Thursday.

“Max was a good investment with a strong management team but it was more about our strategy.”

Max Healthcare has also been grappling with regulatory changes in India over the past year, he said.

Indian authorities proposed capping medical costs at private hospitals in the capital to help millions of people, but the plan would deal a blow to the multi-billion-dollar healthcare sector already grappling with price control policies. [nL3N1T33D8]

In the six-months to the end of March 32, Max Healthcare reported a wider loss of 67 million rand compared with a loss of 12 million in 2017, negatively impacted by the increased regulatory environment and the loss of its licence at Max Shalimar Bagh hospital over a case of medical negligence.

Following the disposal, Life Healthcare wants to focus its attention on its core operations in South Africa, UK, Poland and Western Europe.

The company, whose local competitors include Netcare and Mediclinic has diversified geographically and has also started offering new services.

In 2016 it entered the diagnostic imaging market through the acquisition of UK-based Alliance Medical Group, which also operates in Ireland, Italy, Spain and Northern Europe.

Viranna said the group will continue to make strategic investments in its existing markets, without giving any details.

“We will absolutely look to invest for growth where it makes good financial sense for us. We will look to invest very selectively in our existing geographies as opposed to adding new ones,” he added.

($1 = 0.7557 pounds)

Ghana's government pulls planned five-year local currency bond

ACCRA (Reuters) - Ghana’s government decided not to proceed with a planned 5-year local currency bond slated for final pricing on Thursday due to unfavourable market conditions, according to a note to investors seen by Reuters.

The Finance Ministry had planned to issue the bond to roll-over maturing debts through book-building which opened on Wednesday with initial pricing guidance set at 20.5 percent - 21.5 percent and later revised to 19.75 percent - 21 percent.

A senior Finance ministry official told Reuters pricing for the bond was too high. “Markets too volatile,” the official said. Another person close to the transaction told Reuters that investor demand was poor.

“Due to current market conditions, the issuer has decided not to proceed with the proposed September 2018 5-year Treasury bond issuance (rollover) at this time. We thank you for your interest,” said the note to investors.

Book builders for the bond, open to non-resident Ghanaians, were Barclays, Stanbic, Databank, Fidelity bank and brokerage firm IC Securities.

Ghana, which exports cocoa, gold and oil, is in its final year of a $918 million aid deal with the International Monetary Fund to narrow fiscal deficit, stabilise its currency and reduce debt which ratings agency Moody’s estimate will rise above 70 percent of Gross Domestic product by the end of December.

US-China trade: US imposes biggest round of tariffs yet

A new round of US tariffs on Chinese goods has kicked in, the largest yet in the escalating trade war between the economic superpowers.

The US started imposing tariffs on $200bn ($152bn) worth of Chinese products from 12:01 Beijing time (04:01 GMT), in response to what it says are unfair trading practices by China.

China retaliated by targeting $60bn of US goods with extra duties.

It says the US has started the "largest trade war in economic history".

The latest move takes the total amount of Chinese imports hit by US tariffs since July up to $250bn. This means about half of all Chinese imports to the US are now subject to these new duties.

What is happening on Monday?

US companies importing the Chinese products in question will have to pay an additional 10% levy.

The US duties apply to almost 6,000 items, making them the biggest round of trade tariffs yet from Washington.

They affect handbags, rice and textiles, although some items such as smart watches and high chairs have been exempted.

The tax will rise to 25% from the start of 2019, unless the two countries agree a deal.

In contrast, China is placing an additional 5% in duty on US products including smaller aircraft, computers and textiles, and an extra 10% on goods such as chemicals, meat, wheat and wine.

US-China trade row: What has happened so far?

The early victims of Trump's trade war

Six ways China could retaliate in a trade war

US trade and a tale of two Chinas

The tariffs to date

In total, the US has imposed three rounds of tariffs on Chinese products this year, totalling $250bn worth of goods.

It placed 25% tariffs on $50bn worth of imports from China in two separate rounds.

In July, the White House increased charges on $34bn worth of Chinese products.

Then last month, the escalating trade war moved up a gear when the US brought in a 25% tax on a second wave of goods worth $16bn.

Beijing retaliated in kind.

China has imposed duties on $50bn of US products in retaliation, targeting key parts of the president's political base, such as farmers.

Why is the US doing this?

President Donald Trump says he wants to stop the "unfair transfers of American technology and intellectual property to China" and protect jobs.

Tariffs, in theory, will make US-made products cheaper than imported ones, so encourage consumers to buy American. The idea is they would boost local businesses and support the national economy.

But many US companies and industry groups have testified to the US Trade Representative's Office that their businesses are being harmed.

There are signs that companies and economies are already being affected, and the IMF has warned major escalations will hit global growth.

Mr Trump's tariff policies are part of his protectionist trade agenda since taking office, which challenges decades of a global free trade system.

What comes next?

Mr Trump recently said taxes on another $267bn of goods were "ready to go on short notice" - that would mean virtually all of China's exports to the US would be subject to new duties.

It is unclear how China can match the scale of US tariffs longer term.

The US buys far more from China than it sells to them, so China only has limited room to retaliate through trade.

Analysts have said China could get creative when fighting back.

It could make life more difficult for American companies in China or force its currency lower to boost exports.

Mr Trump recently accused China of doing just that. But China has hit back at these accusations.

China "will never go down the path of stimulating exports by devaluating its currency", Premier Li Keqiang said last week.--BBC

Porsche stops making diesel cars after VW emissions scandal

The German carmaker Porsche says it will stop making diesel cars, and concentrate on petrol, electric and hybrid engines instead.

It follows a 2015 scandal in which its parent company, Volkswagen, admitted it had cheated emissions tests for diesel engines.

Diesel cars over a certain age have been banned in parts of some German cities in a bid to cut pollution.

The Porsche chief executive said the company was "not demonising diesel".

"It is and will remain an important propulsion technology," Oliver Blume said.

"We as a sports car manufacturer, however, for whom diesel has always played a secondary role, have come to the conclusion that we would like our future to be diesel-free.

"Petrol engines are well suited for sporty driving."

Existing diesel car customers would continue to be served, he said.

Porsche did not build its own diesel engines, preferring to use Audi ones.

"Nevertheless, Porsche's image has suffered, Mr Blume said.

"The diesel crisis caused us a lot of trouble."

What happened in the 2015 emissions scandal?

How electric vehicles are moving into the fast lane

A German public prosecutor fined Volkswagen €1bn (£900m) earlier this year, after finding the company had sold more than 10 million cars with emissions-test cheating software installed, between 2007 and 2015.

The company had already set aside $30bn (£23bn) to settle fines, compensation and buying back cars in the US.

Porsche is understood to be developing a fully-electric luxury car, with a multi-billion euro investment.

The first car ever designed by its founder, in 1898, was electric. It was rediscovered in a garage a few years ago.

The company's first diesel car was sold just 10 years ago.--BBC

Sky: Comcast outbids Fox with £30bn bid for broadcaster

US cable giant Comcast has submitted the highest bid in the auction for broadcaster Sky, valuing the company at more than £30bn.

Comcast beat Rupert Murdoch's Fox in a rare blind auction process set by the UK's Takeover Panel.

The firm's chairman and chief executive said it was "a great day for Comcast".

Sky has recommended its shareholders accept the bid, saying it was an "excellent outcome" and "represents materially superior value".

The UK company's 23m subscribers and Premier League football rights make it one of Europe's most profitable TV companies.

Comcast's bid equated to £17.28 per share, beating Fox's of £15.67 per share.

The battle for Sky: Why it matters

Fox had looked set to take over the 61% of Sky it does not already own until Comcast topped its bid.

In July, Fox raised its offer to £24.5bn, but this was trumped by a £26bn bid from Comcast.

The process has also been beset by regulatory issues amid concerns over media plurality and the degree of Mr Murdoch's influence over the UK media landscape.

Brian Roberts, chairman and chief executive of Comcast, said: "Sky is a wonderful company with a great platform, tremendous brand, and accomplished management team.

"This acquisition will allow us to quickly, efficiently and meaningfully increase our customer base and expand internationally.

"We now encourage Sky shareholders to accept our offer, which we look forward to completing before the end of October 2018."

Jeremy Darroch, Sky chief executive, said it was the "beginning of the next exciting chapter for Sky".

He said: "As part of a broader Comcast we believe we will be able to continue to grow and strengthen our position as Europe's leading direct to consumer media company."

In a statement, Fox said it was "considering its options" for the 39% shareholding it currently has in Sky.

It added: "We are proud to have played such a significant role in building the incredible value reflected today in Comcast's offer."

The future of Sky has been hanging in the balance for more than eight years.

The process began when Mr Murdoch's News Corp company put forward a bid for full control of what was then BSkyB.

That bid was scuppered by the phone-hacking scandal that engulfed Mr Murdoch's UK tabloid newspapers and tarnished the firm's reputation.

The bid was revived in December 2016, by which time News Corp had been broken up, leaving 21st Century Fox as one of its successors.

The process has been complicated by Disney's deal to buy most of Fox's assets, which is due to be completed next year if approved by international regulators.

Analysis: Simon Jack, business editor

In the end this epic battle was settled by a very rare three round auction organised by the UK Takeover Panel.

If the sealed bids had been very close, 21st Century Fox and its new owner Disney may have battled on. But the £30.5bn tabled by Comcast was 10% more than Disney-backed Fox was offering and was described as a knockout blow by people close to the deal.

Both companies wanted Sky and its 23 million subscribers to help them compete against new streaming competitors like Netflix and Amazon. The victory will be sweet revenge for Brian Roberts, the chief executive of Comcast who lost out to Disney in a previous battle to buy 21st Century.

In the end, Comcast perhaps needed it more urgently with their home market in the US dwindling.

But the biggest cheers tonight will be from Sky shareholders - who have seen the value of the company driven up by two deep-pocketed rivals in the auction room. Comcast will pay them £17.83 pence per share - nearly double what they were worth a year ago.--BBC

Swiss voters reject 'fair food' plans

Voters in Switzerland have overwhelmingly rejected two proposals on ethical and sustainable food.

Final results of the two nationwide polls show that more than 60% of people voted against them.

The proposals were aimed at boosting local farming and promoting more sustainable agriculture.

But opponents, including business leaders and the government - which advised people to vote no - had warned of higher food prices and less choice.

The size of the defeat will be a big disappointment to farmers' groups and ethical food campaigners, says the BBC's Imogen Foulkes in Geneva.

What exactly was in the proposals?

The first proposal, called "fair food", wanted more government support for sustainable, animal-friendly products - and more detailed labelling so consumers knew what they were getting.

It also called for a crackdown on food waste, and for imports to meet Swiss standards on workers' conditions, environmental safety and animal welfare.

This would have meant Swiss inspectors checking foreign food producers for compliance.

The second, called "food sovereignty" went even further, calling for much greater state support for local family farms, for higher tariffs on food imports, and for foreign produce that did not meet Swiss standards to be banned.

Opinion polls before the vote had shown strong backing for more investment in Switzerland's small family farms, thousands of which have had to close in recent years.

Proposals requiring foreign food producers to adopt Swiss standards on sustainable farming and animal welfare had also appeared popular.

Switzerland to vote on pesticide ban

Switzerland's farmers become landscape gardeners

But in the closing days of the campaign, warnings from the government that the measures were unenforceable, and from food retailers saying prices would rise, clearly swayed voters, our correspondent says.

Economy Minister Johann Schneider-Ammann had called the proposals "dangerous" and said they could trigger tariff increases and other reprisals from trading partners.

Food issues are not off the table yet, however, as votes on pesticides and intensive livestock farming have already been planned.--BBC

How China is fighting back in the trade war

For the US, getting tough on trade with China is seen as just punishment for years of unfair trading practices. The BBC's Karishma Vaswani visited businesses in China to find out what this trade war looks like from their perspective.

>From Monday, US tariffs of 10% on $200bn (£152.9bn) worth of Chinese goods come into effect on almost 6,000 products, ranging from handbags to textiles. That means almost half of what China sells to the US is now subject to tariffs.

But China is fighting back.

It will retaliate by placing tariffs of 5% to 10% on $60bn worth of American goods.

I saw that steely resolve on display when I visited a pipe factory on the outskirts of Beijing.

Hebei Huayang Steel Pipe (HHSP) is one of the largest steel pipe producers in the province.

As I walked into the sprawling factory, the first thing that hit me was an overwhelming stench of burned steel.

Fields of steel pipe mountains were scattered across the yard, giant cylindrical cones that are used to transport gas, oil and water.

HHSP had originally set up a production line to service American customers, but even before the latest round of tariffs were announced, it had started looking for other customers.

US set to impose biggest tariffs yet

Six ways China could retaliate in a trade war

Trade wars, tariffs and protectionism explained

It turned out to be timely foresight, as now these products would have been among the $200bn worth of goods subject to US tariffs.

Expansion plans into the US market have been put on hold but the company says it has many other options.

Steven Yue is the sales manager at HHSP. He showed me around the factory, and told me that the US market is just a small percentage of this plant's production, so he wasn't so worried.

But it was when I asked him what he thought of the US's trade tariffs on China - and what he thought his country's response would be - that I saw his real feelings on the issue.

"[We will] show them our power!" he said to our team in English.

He was also defiant in the face of the trade war, saying it would hurt the US more than China.

"The Chinese government will not just sit back," he told us.

"The US has many big enterprises with a lot of vested interests and investments in China. If the US begins to attack the Chinese, then it will have a big impact on American businesses operating here - not just against China.

"Whoever has the will will win. But for now, I still believe China has the ability to keep things under control."

That's a sentiment I heard often during my trip to China.

Playing by the rules

When you listen to US President Donald Trump you'd be forgiven for thinking that the relationship between his country and China is one sided, with China winning and the US losing.

But from China's point of view, the US has also reaped multiple rewards here, as Wang Haiyou, president of the Center for China and Globalisation was keen to point out to me.

"Look at the last four decades since China and the US established diplomatic ties," he said to me in his office in Beijing.

"All the major US companies are in China. They all have a big operation in China. Some are even bigger than the US. You can't say that is not a success.

"Boeing sells more airplanes in China than anywhere else in the world. And Walmart produces more goods from China than any other company in the world.

"So if GM produces more cars in China than in the US - what's the company complaining about?"

Global Trade

More from the BBC's series taking an international perspective on trade:

Trump's tariffs squeeze the Midwest

The UK's growing tech trade ties with Israel

Are golden visas losing their sparkle?

How do you market a country?

I put to Mr Wang that no one is disputing the US has made money in China - it was more a sense that China had not played by the rules, and that even if it had followed the letter of the agreements set out in the World Trade Organisation (WTO), it had not followed the spirit of the deal.

"If the US is not happy, it can always go and file their complaints there," he told me.

"They normally don't. China actually gets less complaints than the US in the WTO."

Still, there is a long-held view that China has cheated not just the US on trade, but other trading partners too.

And while not all of them agree with the strategy Mr Trump is using to go after China, his tariffs appear to be giving many others that China has done business with the confidence to voice their complaints more vocally.

China has accused the US of launching the "largest trade war in economic history"

Reacting to China's rise

As I've written about before, the American Chamber of Commerce in China has said that the country needs to be more transparent and honest about opening up its markets to foreign firms.

The European Chamber of Commerce in China in its annual report chimed in, saying that China is stuck in a "reform deficit" and that the root cause of the US China trade war is "China's incomplete market opening".

Meanwhile, the trade war is coming at a delicate time for China's economy, which after years of stellar growth, is slowing down.

We visited the Communications University of China in Beijing, and spoke to a number of students there.

I was struck by how some were worried about job prospects in the face of this trade war - but also that it was leading to a rising sense of national pride amongst others.

One male student told me, "China has risen quickly over the past few decades, and has captured the world's attention. That's why the US has such a strong desire to suppress us.

"But China has also given a strong response to the US, so I believe my country has the ability to withstand this."

The sense that the US is jealous of China's rise, and is using the trade war as a way to contain China is an increasingly prevalent view amongst some in the country, as the hardline Global Times, in a recent editorial, outlined.

"Some elites in the US believe that China has stolen US experience for its own modernisation, infringing so-called US intellectual property rights," the editorial said.

"Washington is extremely puffed up with pride politically and culturally. It is also severely misunderstanding the history of human development."

This is a new, confident China: a country that wants to show off its economic success.

Despite the criticism, this is a success it feels it has worked hard for - and will not surrender easily.

But this trade war has many here feeling that the US wants to halt China's rise - and China is preparing for a long battle ahead.--BBC

Pound falls after May's Brexit statement

The pound's fall against the dollar and the euro has deepened following Theresa May's assertion after an EU summit that "no deal is better than a bad deal".

Sterling was already trading lower after EU leaders warned the UK must make compromises on trade and the Irish border to secure a Brexit trade deal.

After the Prime Minister said the UK and EU were at an "impasse" the pound fell further.

The pound dropped from 1% to 1.5% lower against the dollar to $1.3068.

By the end of US trading, the pound was on track for its biggest daily drop against the dollar so far this year.

Against the euro, the pound was down 1.1% at €1.1144 after Mrs May's statement.

"The rhetoric that 'no deal is better than a bad deal' is startling, and undermines recent hopes that a deal could be finalised soon," said Hamish Muress, currency analyst at OFX.

Business bodies reacted with alarm to the latest development.

The British Chambers of Commerce (BCC) warned that the possibility of the UK leaving the EU without a trade deal was a big concern for firms.

"Many firms are hugely worried about a messy and disorderly outcome, and the potential impact on their ability to trade and grow. Others could be caught flat-footed. Both sides must make every effort to avoid this scenario," said BCC director general Adam Marshall.

May: EU must respect UK in Brexit talks

Defiant words from PM may not be enough

Carolyn Fairbairn, director general of the CBI, said negotiators on both sides had to change tack.

"The stakes could not be higher. Jobs, wages and living standards are at risk, on both sides of the Channel.

"With time slipping away, employers and employees alike need to see constructive dialogue. Pragmatism must come before politics. Every day lost in rhetoric is lost investment and lost jobs," she added.

Mrs May's statement followed a cool reception for her Chequers plan at a summit of EU leaders in Salzburg.

She said the two sides were still "a long way apart" on the post-Brexit economic relationship.

The two options being offered by the EU - for the UK to stay in the European Economic Area and customs union or a basic free trade agreement - were not acceptable, she said.

She said EU leaders needed to come up with new alternatives to her Brexit proposals if both sides were to break the current deadlock.

"It is not acceptable to simply reject the other side's proposals without a detailed explanation and counter-proposals," Mrs May said.--BBC

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

Hippo

AGM

Meikles

26/09/2018 12PM

Bindura

AGM

Chapman Golf Club, Eastlea

27/09/2018 9AM

CBZH

interim dividend of 0.5c per share record date

28/09/2018

Hippo

final dividend of 2c per share record date

28/09/2018

Star Africa

AGM

45 Douglas Road, Workington

28/09/2018 11AM

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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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