Major International Business Headlines Brief::: 15 August 2019

Thu Aug 15 03:56:53 CAT 2019

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Major International Business Headlines Brief::: 15 August 2019

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*  South African stocks approach six months low as recession fears rise

*  Steinhoff's overseas business restructure debt after scandal

*  Nigeria's president tells cenbank to stop providing FX for food

*  S.African education firm Curro to invest $14 mln in 4 new campuses

*  South Africa's retail sales up 2.4% year/year in June

*  Kenya's central bank to hold its rate-setting meeting on Sept. 23

*  Astral Foods CEO to take extended leave after surgery

*  Kenyan shilling stable, forecast to ease due to excess liquidity

*  Steinhoff looks to sell off assets after $7 billion accounting fraud

*  UK must accept US food standards in trade deal, says farm chief

*  Germany steels itself to face recession threat

*  Share markets tumble as recession fears grow

*  Argentina's Macri unveils economic 'relief' measures after poll shock

*  WeWork posts $900m loss as it plots stock market listing

*  German economy slips back into negative growth

*  Brexit: No chance of US trade deal if Irish accord hit - Pelosi

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South African stocks approach six months low as recession fears rise

JOHANNESBURG (Reuters) - South African stocks slipped to a near six-month low on Wednesday after the U.S. Treasury bond yield curve inverted for the first time since 2007, reflecting concerns over the outlook for the world’s biggest economy.

Both of the country’s major stock indexes weakened more than 2% following the inversion in the U.S. debt market, a situation where shorter-dated borrowing costs are higher than longer ones. [nL8N25A3FD]

“When that yield inverts, historically, its quite a strong recession signal in the U.S.. That’s what’s spooking markets and creating this risk-off environment,” said Mark Loubser, a fund manager at Northshore Capital.

Risk-off refers to a shift in investor sentiment towards safer assets over riskier opportunities in emerging markets such as South Africa.

At 1430 GMT, the Johannesburg Stock Exchange’s broader all-share index was down 2.1% to 54,032 points, while the benchmark Top-40 index fell 2.35% to 48,285 points.

The rand weakened 1.35% to 15.3500 per dollar, as concerns about the global economy overshadowed improved local retail sales data.

Prior to the inversion, weak economic data and fears of inflation, global trade tensions and other risks such as the impact of Brexit had fuelled worries about the global economy to which South Africa is a major supplier of commodities.

South African gold stocks however bucked the trend as investors fled to safe haven assets. Harmony Gold was up 5.47% to 45.35 rand, Gold Fields rose 5.34% to 88.66 rand and Sibanye Stillwater gained 4.71% to 19.97 rand.

Bonds also weakened, with yields on the benchmark 10-year bond adding 6.5 basis points to 8.475%.

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Steinhoff's overseas business restructure debt after scandal

JOHANNESBURG (Reuters) - Scandal-hit Steinhoff said on Wednesday it had refinanced some 9 billion euros ($10 billion) of debt in its overseas operations which include brands such as Poundland in Britain and France’s Conforama, after pushing the deadline date back repeatedly.

“Implementation of the restructuring is a major milestone on our recovery journey, bringing with it the stability that will allow us to turn the page and concentrate fully on maximising value from our operating companies,” Group Chief Executive Louis du Preez said in a statement.

“The company remains committed to improving the performance of its operational businesses across the group, reducing its debt, resolving the legal claims against it and delivering value for its stakeholders.”

Du Preez on Tuesday delivered a stark assessment of Steinhoff’s options at the South African company’s first public investor presentation since a $7 billion accounting fraud scandal broke, saying its only hope for survival is to sell off assets to become a retail-focused holding company.

Shares in Steinhoff jumped 4.84% to 1.30 rand in early trading.

Established more than 50 years ago, the firm expanded from a small South African outfit to a furniture and household goods retailer straddling four continents before it shocked investors by flagging holes in its accounts in Dec. 2017.

Its Steinhoff Europe AG (SEAG) and Steinhoff Finance Holding GmbH (SFHG) operations had entered into a company voluntary arrangement (CVA) with its creditors last year.

A CVA is a UK legal process that allows a company with debt problems to reach a voluntary agreement with creditors over the payment of its debts while continuing to trade.

SEAG’s 5.6 billion euros of debt, plus around 2.8 billion from SFHG and a further 400,000 euros from another business has been reissued with maturities from Dec. 2021 and no cash interest payments.

The company is now up to date with its financial reporting and expects to publish an unaudited quarterly update for the three months ended June 30 2019 on Aug. 29, it said on Wednesday. ($1 = 0.8943 euros)

Nigeria's president tells cenbank to stop providing FX for food

ABUJA (Reuters) - Nigeria’s President Muhammadu Buhari has told the central bank to stop providing funding for food imports, his spokesman said in a statement on Tuesday, a move that has raised questions about the bank’s independence.

Nigeria, which has Africa’s biggest economy, is the continent’s top oil producer and relies on crude sales for around 90% of it foreign exchange. Low oil prices led to a recession in 2016 from which the country emerged two years ago.

Since Buhari first took office in 2015, Nigeria’s central bank has presided over policies aimed at stimulating growth in the agricultural sector to reduce dependence on oil. Those policies included a 2015 ban on access to foreign exchange for 41 items that the bank felt could be produced in Nigeria.

“President Muhammadu Buhari ... disclosed that he has directed the Central Bank of Nigeria (CBN) to stop providing foreign exchange for importation of food into the country,” Tuesday’s statement said.

“Don’t give a cent to anybody to import food into the country,” Buhari said, according to the statement, which said that the call was in line with efforts to bring about a “steady improvement in agricultural production, and attainment of full food security”.

“The foreign reserve will be conserved and utilised strictly for diversification of the economy, and not for encouraging more dependence on foreign food import bills.”

The latest move comes only weeks after Central Bank Governor Godwin Emefiele in July said the bank would ban access to foreign exchange to import milk.

Tuesday’s statement prompted many observers to point to the central bank’s status as an independent body.

“The central bank act of 2007 makes it clear that the bank is independent. It is not supposed to be taking direct instructions from politicians,” said Kingsley Moghalu, who served as deputy central bank governor from 2009 to 2014.

“The trajectory in this administration is that we have seen a very clear tendency for the president to direct people. Increasingly Nigeria’s institutions have lost independence,” said Moghalu, who was a contender in February’s presidential election.

Bismarck Rewane, an economist and the head of Lagos-based consultancy Financial Derivatives, also said the bank was supposed to be independent.

A central bank spokesman did not immediately respond to phone calls and text messages seeking comment.

Buhari has been a vocal supporter of such restrictions and one of his first moves after his re-election in February was to reappoint the central bank governor.

Rewane said a curb on foreign exchange for food imports could backfire after Buhari last month signed up to the African Continental Free Trade Agreement (AfCFTA). That deal seeks to create a continent-wide free trade zone where tariffs on most goods would be eliminated.

“At this point in time these rules will be manipulated in the interest of smugglers and their accomplices,” said Rewane.

Import controls on rice, imposed even as local farmers fail to meet demand, have kept prices artificially high and led to smuggling from neighbouring Benin into Nigeria.

S.African education firm Curro to invest $14 mln in 4 new campuses

JOHANNESBURG (Reuters) - South African private education firm Curro Holdings will invest 223 million rand ($14.66 million) in opening four new campuses, it said on Wednesday, after reporting a 44% rise in half-year headline earnings.

Founded in 1998, Curro, which runs schools and tertiary institutions in South Africa, Botswana and Namibia, has been growing at a lightning rate as parents frustrated with under-resourced, over-crowded state-run schools splash out on private education.

For the six-months ended June 30, Curro’s pupil numbers increased by 13% to 57,173, increasing revenue by 19% to 1.48 billion rand.

Besides opening the new campuses, Curro also has major expansion and replacement projects underway, with an estimated investment of 1 billion rand in 2019, it added.

“The board believes Curro is positioned for growth and will focus on increasing utilisation of the existing school infrastructure capacity in the short to medium term,” it said.

“Curro will also reduce capital outlay on Greenfield schools over the medium term.”

Headline earnings, the main profit gauge used in South Africa that strips out some one-off items, increased by 44% to 50 cents from 34.8, whilst recurring HEPS rose by 7%.

Group earnings before interest, taxation, depreciation, amortisation and head office expenditure (EBITDA) rose by 21% to 415 million rand.

At 1125 GMT, shares in Curro were 7.98% firmer to 17.99 rand.

($1 = 15.2119 rand)

South Africa's retail sales up 2.4% year/year in June

JOHANNESBURG (Reuters) - South African retail sales rose 2.4% year-on-year in June following a revised 2.3% increase in May, Statistics South Africa said on Wednesday.

On a month-on-month basis, sales were up 0.3%. For the quarter, they rose 2.4% in the three months to the end of June compared with the same period last year, the statistics body said.

Kenya's central bank to hold its rate-setting meeting on Sept. 23

NAIROBI (Reuters) - The Kenyan central bank’s Monetary Policy Committee will hold its next rate-setting meeting on Sept.23, the bank said on its website on Wednesday.

At its last meeting in July, the bank held its benchmark lending rate at 9.0%, saying inflation expectations were within the target range and the economy was operating close to its potential.

Astral Foods CEO to take extended leave after surgery

JOHANNESBURG , (Reuters) - South African poultry producer Astral Foods on Wednesday said its CEO will take extended leave to recuperate after cardiovascular surgery.

Astral, which also manufactures animal feed, said in a statement Chris Schutte would undergo the high risk surgery on Aug. 19, and required time to recuperate as ordered by his physicians.

“Astral’s competent executive management team is in place to deal with all relevant operational matters,” the company said, adding that Chief Financial Officer Daan Ferreira would be the main point of contact during Schutte’s absence.

Kenyan shilling stable, forecast to ease due to excess liquidity

NAIROBI (Reuters) - The Kenyan shilling was stable against the dollar on Wednesday and was forecast to ease due to excess liquidity in the money markets, traders said.

At 0914 GMT, commercial banks quoted the shilling at 103.10/30 per dollar, the same as Tuesday’s close.

Steinhoff looks to sell off assets after $7 billion accounting fraud

CAPE TOWN (Reuters) - Scandal-hit South African retailer Steinhoff said on Tuesday its only hope for survival is to sell off assets to become a retail-focused investment holding firm, as it fights to contain the fallout of a $7 billion accounting fraud.

The company has been making losses of up to $4 billion a year since it initially flagged holes in its accounts in December 2017.

In its first presentation to investors since then, the retailer’s chief executive Louis du Preez said its “only way to survive” was to slim down into a pure investment holding company focused on retail.

To achieve that Steinhoff is looking to sell off its non-retail assets and cut jobs at its French retail chain Conforma, its management said during the presentation.

The accounting scandal at Steinhoff shocked investors that had backed its transformation from a small South African furniture outfit into a discount furniture retailer straddling four continents.

Executives said its fallout means the company, which owns Mattress Firm Inc in the United States and Fantastic chains in Australia, and is also listed in Frankfurt, will be fighting to return to profitability for years to come even with strong turnover.

CEO du Preez also said Steinhoff’s debt - totalling over 9 billion euros ($10.09 billion) - was too high and needed to be urgently addressed.

($1 = 0.8918 euros)

UK must accept US food standards in trade deal, says farm chief

The UK must accept US food standards as part of any future trade deal with Washington, the head of America's farming lobby has said.

Zippy Duvall, head of the American Farm Bureau, said US farmers were keen to trade with their British "friends".

But he said fears over practices such as washing chicken in chlorine and using genetically modified (GM) crops were not "science-based".

The US has said the UK will be "first in line" for a trade deal after Brexit.

But some fear the UK will have to compromise on standards currently enshrined in EU law in order to secure a deal with Washington.

Mr Duvall, himself a poultry farmer in Georgia, said he wanted to have "a conversation" about US food standards given the fears in the UK.

UK 'first in line' for US trade deal, says Bolton

How safe is chlorine-washed chicken?

One of the most controversial practices is washing chicken with chlorine to kill germs, which is banned in the EU. This is not because the wash itself is harmful but over fears that treating meat with chlorine at the end allows poorer hygiene elsewhere in the production process.

"You know, here in America we treat our water with chlorine," Mr Duvall told the BBC's Today programme.

"So there is no scientific basis that says that washing poultry with a chlorine wash just to be safe of whatever pathogens might be on that chicken as it was prepared for the market, should be taken away.

"If there was something wrong with it our federal inspection systems would not be allowing us to use that," he added.

Harmful competition?

In London this week, Donald Trump's national security advisor John Bolton suggested that the US could strike trade deals with the UK after Brexit on a "sector-by -sector basis", to speed up the process.

But asked whether he could envisage a trade deal with the UK that did not include agriculture, Mr Duvall said it would be seen as a betrayal by US farmers.

"To have a trade treaty and not discuss agriculture would be turning your back on rural America and that's where a big part of our population lives."

John Bolton said the UK would be "first in line" for a trade deal after Brexit.

He also dismissed concerns that a deal would expose British farmers to harmful competition from much larger US farms with lower production costs.

Mr Duvall said the British public should have the right to buy potentially cheaper US produce if they wanted to.

"A lot of our farmers don't understand why other countries implement tariffs on our products but then they don't want us to implement any tariffs on our end, so we need to level that playing field, tear down all those barriers and let our people be able to make the choice of what food they want to eat and where it's grown at."

Trade war damage

Since last year, the US and China slapped tariffs on billions of dollars worth of each other's goods and Beijing has specifically targeted US agricultural products such as soya beans.

It has led to a sharp drop in US farm exports to China and forced the Trump administration to pay emergency subsidies to support American farmers.

Mr Duvall said the trade war had created the "perfect storm" for US farmers, who were already suffering after a series of natural disasters devastated crops in some areas.

However, Mr Duvall told the BBC that despite this, US farmers still supported Mr Trump's approach to China and viewed the "short term pain" as worth it.

"Historically, even though agriculture and trade have been growing all around the world it hasn't kept up to the pace that it should have as the middle class have been rising up, especially in Asia, and we think that we ought to have the opportunity to have a bigger piece of that market," he said.

"[US farmers] all will tell you that... they still support the president in his efforts to come up with fair trade for the farmers here in America."--BBC

Germany steels itself to face recession threat

Germany, Europe's biggest economy, could be heading for a recession.

Data from the German statistics office on Wednesday showed the economy shrank by 0.1% between April and June.

That takes the annual growth rate down to 0.4%. Germany narrowly avoided a recession last year.

But this time, there are predictions the economy will continue to contract for another three-month period.

The main driver of the economic weakness appears to be rising global trade tensions.

Marcel Fratzscher, the president of the research institute DIW Berlin, told the BBC that he believes Germany's first recession since 2013 is probably already under way.

"Most likely we will see another quarter of negative growth, and that's by definition a technical recession," he says.

He forecast the economy to shrink by 0.1% between July and September.

"It's very mild, but also at the same time, not a very strong performance," he said.

Exports slowing

Germany has traditionally relied on selling its manufactured products, such as cars, abroad.

That is a strength in good times, but appears to be a drag during the current trade tensions.

Data last week suggested that momentum in Germany's exports slowed in the first half of the year and reversed in June.

Other figures showed there had been a 1.5% fall in industrial output in May.

"Industrial production is suffering from a severe setback of less global demand and increasing international trade problems," says Klaus Deutsch, the head of economic and industrial policy at the BDI, a business lobby organisation with one million members.

It predicts a recession may not happen this year, but would be hard to avoid next year if the current global turmoil continues.

Companies that supply Germany's carmakers, including Continental and Bosch, have warned about the impact of the worldwide slowdown on sales of cars.

"Most companies don't yet have to lay off workers or make drastic changes, but the mood has been softening strongly, and if things continue deteriorating, many companies will have to cut back production, perhaps move to temporary work schemes and reduce output even further," Mr Deutsch told the BBC.

Trump tariffs

The current situation has the potential to get much worse for German carmakers.

The US has threatened to impose extra tariffs on European-made cars, something that would hit the likes of BMW and Mercedes-Benz particularly hard.

US President Donald Trump recently joked about the potential for tariffs at a media event at the White House.

But many in Germany don't see the funny side, particularly as US national security has been cited as part of the justification for any new border taxes.

Chancellor Angela Merkel has said the threat to designate European carmakers as a security threat came as "a bit of a shock".

But her government believes the German economy will grow slightly this year, and does not think further stimulus is necessary.

And economy Minister Peter Altmaier had said the country was not yet in a recession and could avoid one if it took the right measures.

Some Germany-based economists have said they expect the country to escape a recession this year, pointing to the near-record low unemployment rate and strength of domestic-focused businesses.

But with a potential recession looming, the government has been called on to spend its way back to growth.

The German government had a fiscal surplus of €58bn (£53.6bn) in 2018, so it has plenty of cash to spend, should it choose.

"It makes sense for the government to spend more," says DIW Berlin's Mr Fratzscher.

"It needs to act now in order to prevent a deeper recession or protracted slowdown in the economy, rather than wait for that to happen," he says.

The BDI business lobby organisation wants new tax incentives and investments in climate change mitigation measures and new digital technologies.

On Tuesday, Chancellor Merkel said she did not see any need for a fiscal stimulus package to counter the effects of a slowing economy, but said Berlin would continue to pursue high levels of public investment.--BBC

Share markets tumble as recession fears grow

Panic gripped Wall Street on Wednesday as investors fled shares amid fears over a US-China trade war and the health of the global economy.

The three main stock markets closed 3% down, with analysts pointing to signals the US may be heading for recession.

Weak data from Germany and China, and another attack on the US central bank by President Donald Trump, helped fuel a rush for haven assets like gold.

Analyst Oliver Pursche, from Bruderman, said the global picture was precarious.

"What's happening in Hong Kong, what's happening with Brexit and the trade war, it's all a mess," the chief market strategist said. "Every central bank around the world is trying to prop up economies and every politician around the world is trying to destroy economies."

Are markets signalling that a recession is due?

German economy slips back into negative growth

News that Germany's GDP contracted in the second quarter, and that China's industrial growth in July hit a 17-year low, had already spooked markets in Europe. The FTSE 100 closed down 1.5%, while in Germany and France the markets finished more than 2% lower.

Another fear was that the bond market was flashing recession warnings. The yield on two-year and 10-year Treasury bonds inverted for the first time since June 2007. This odd bond market phenomenon is seen as a reliable indicator of possible recession.

Meanwhile, the CBOE volatility index - the so-called fear index - jumped 4.26 points to 21.78, and spot gold prices rebounded, rising more than 1%. All of the 11 major sectors in the S&P 500 were in the red, with energy and financial suffering the largest percentage loss. Banks also fell heavily, with Citigroup down more than 5%.

Fed attack

Mr Trump again attempted to deflect the market turmoil onto the US Federal Reserve and its interest rate policy, calling Fed chief Jerome Powell "clueless".

In raising interest rates four times last year "the Federal Reserve acted far too quickly, and now is very, very late" in cutting borrowing costs, the president tweeted. "Too bad, so much to gain on the upside!"

Earlier on Wednesday, White House trade adviser Peter Navarro told Fox Business Network the central bank should cut rates by half a percentage point "as soon as possible", an action he claimed would lead to stock markets soaring.

Despite the US delaying the 1 September imposition of tariffs on some Chinese imports into the US, it has done little to ease concerns.

"The challenge is that Trump's trade policy has proven so erratic that you cannot relieve the sense of uncertainty," said Tim Duy, an economics professor at the University of Oregon.

As of September last year, the US central bank had a relatively rosy outlook for the economy, expecting that the stimulus from the Trump administration's massive $1.5tn tax cut package and spending in 2018 would sustain growth and justify steadily higher interest rates.

Mr Trump wants to make the economy a central part of his case for his 2020 re-election campaign.

In an interview scheduled to air on Fox Business Network on Friday, former Fed chief Janet Yellen said she felt the US economy remained "strong enough" to avoid a downturn, but "the odds have clearly risen and they are higher than I'm frankly comfortable with".--BBC

Argentina's Macri unveils economic 'relief' measures after poll shock

Argentine President Mauricio Macri has announced a series of "relief" measures, days after a defeat at the polls triggered economic turmoil.

In a televised speech, he announced income tax cuts and increases in welfare subsidies. Petrol prices will be frozen for 90 days, he added.

Mr Macri said the measures would help 17 million workers.

The move comes after opposition centre-left candidate Alberto Fernández won presidential primaries at the weekend.

The result dealt a severe blow to Mr Macri's chances of re-election. On Monday, the Argentine peso and stock markets plunged over concerns that Mr Fernández could take Argentina back to populist economic policies.

The peso fell again on Wednesday following President Macri's attempts to shore up support.

Is this the end of Macri's vision for Argentina?

Country profile

Mr Macri was elected in 2015 pledging to boost Argentina's ailing economy with liberal economic reforms.

But a recovery has yet to materialise and more than a third of the population is living in poverty. Tough austerity measures have pushed up prices for public services and dented Mr Macri's popularity.

Argentina is currently in recession and posted 22% inflation for the first half of the year, one of the highest rates globally.

What did President Macri say?

"The measures I take and that I am going to share with you now are because I listened to you. I heard what you wanted to tell me on Sunday," he said during his eight-minute nationwide broadcast.

"These are measures that will bring relief to 17 million workers and their families."

President Macri said tax cuts would see workers in the private sector receiving an extra 2,000 pesos (£28; $33) a month until the end of the year and public sector workers an extra 5,000 pesos. He said the minimum wage would also rise.

Mr Macri said he took responsibility for the election result and recognised that many voters were "tired and angry". He said he was willing to talk to the opposition, adding that it was "clear that political uncertainty has caused a lot of damage".

"I understand your anger, your tiredness. I just ask you not to doubt the work we did together because there is so much, and there is too much at stake," he said.

How did the latest crisis unfold?

The primary election, in which presidential candidates from all parties take part, was won by Mr Fernández by a wide margin. The coalition backing Mr Fernández took 47.7% of the vote while the bloc supporting Mr Macri had 32.1%.

Mr Fernández is now seen as the frontrunner for October's presidential election. His running mate is former President Cristina Fernández de Kirchner, who presided over an administration remembered for a high degree of protectionism and heavy state intervention in the economy.

In trading on Monday, the peso initially plunged 30% against the dollar to a record low before rallying to about 15%.

Some of the country's most traded stocks also lost about half of their value in one day.

At end of trading on Monday, Argentina's main Merval index closed down 31% as some of the country's largest companies saw their market values plummet.

On Wednesday, after Mr Macri's broadcast, the peso fell again, trading at 60.77 to the dollar - a further 4% down from Tuesday's close.---BBC

WeWork posts $900m loss as it plots stock market listing

The owner of office space company WeWork burned through $900m (£746m) in the first six months of this year, according to figures ahead of its hotly anticipated stock market launch.

Documents filed with regulators reveal The We Company, valued at about $47bn, invested heavily in expansion.

The firm, set to launch on Wall Street next month, also disclosed it doubled revenues to $1.54bn during the period.

WeWork offers serviced office space, often to small, new business ventures.

Critics say it must fulfil long-term contracts with landlords using short-term contracts with its customers, making it vulnerable to downturns, should its custom dry up.

So far it has not turned a profit, but since starting in 2010 it has had terrific growth, spreading to 528 locations in 111 cities.

But a stock market listing would come as markets endure a volatile period due to the UK's EU exit and the US trade war with China.

If the sale of shares goes ahead, known as an Initial Public Offering or IPO, it will be the biggest such event this year in the US since taxi firms Uber and Lyft floated.

Is WeWork really worth nearly $50bn?

Office giant WeWork plans share listing

However, the ride-hailing rivals have struggled since listing, potentially making investors wary of future blockbuster IPOs.

Analysts said We Company's doubling of revenues would help ease investor concerns, but they remain cautious.

"Large money-losing IPOs with high valuations tend to be challenging," said Kathleen Smith, of Renaissance Capital. "IPO investors have already been burnt by Lyft and Uber. They are going to be cautious about WeWork."

On Wednesday, Uber's shares fell 7% to an all time low of $33.3, down from the listing price of $45.

WeWork's IPO filing with the Securities and Exchange Commission provides the most comprehensive financial picture yet of the company co-founded by its chief executive, Adam Neumann, in 2010.

Is We Work a tech company or real estate company? To investors this matters a lot. The money-losing We Company, as it's officially known, has an eye popping $47bn valuation.

To get to this dazzling price tag, the New York-based office space provider has presented itself as a nimble-footed Sillicon valley style innovator. Top investors include SoftBank Group and its tech-focused Vision Fund. And in its prospectus, the word 'tech' appeared no less than 123 times.

But one argument is that the image created by co-founder Adam Neumann is just that - an image. And that in reality, WeWork is nothing more than an old fashioned, unprofitable real estate company.

If viewed as such, it's valuation would likely be a lot less. Take competitor IWG, the UK firm that used to be called Regus. It actually makes a profit but doesn't generate anywhere near the same excitement or price.

For We Company the litmus test will be when it goes public and its ability to avoid the same fate of loss-making Uber and Lyft which stumbled on their stock market debuts.

We company previously reported it lost nearly $2bn in 2018, as it invested heavily to grow its business.

The firm did not give a time-frame for becoming profitable as it continues to invest in expanding operations. "Average revenue per WeWork membership has declined, and we expect it to continue to decline, as we expand internationally into lower-priced markets," the company said.

The flexible office market has grown swiftly in major gateway cities, most notably London, New York and San Francisco. While WeWork is considered the market leader, there are fast-growing rivals.

WeWork, whose current investors include Japan's SoftBank, did not disclose how much it is looking to raise in the IPO and what valuation it will aim for. This will come in an amended IPO filing, which would precede a 10-day IPO roadshow to meet with potential investors.

The company intends to list on the stock market under the symbol "WE".--BBC

German economy slips back into negative growth

Germany's economy shrank during the April-to-June period of this year.

A decline in exports dampened growth, according to official data, which comes amid concerns of a global slowdown.

Gross domestic product (GDP) fell by 0.1% compared with the previous quarter, according to the Federal Statistics Office.

That takes the annual growth rate down to 0.4%. Germany, Europe's largest economy, narrowly avoided a recession last year.

Early signs for the third quarter "look ominous", said Andrew Kenningham, chief Europe economist at Capital Economics. "Manufacturing business surveys for July were all gloomy.

"And while the services sector should continue to hold up better, there are some signs that the slump is spreading to the labour market."

Trade war woes

While the overall figures were negative, household and government expenditure increased, as did investment outside the construction sector.

Construction itself fell after an unusually good first three months, boosted by a mild winter.

But Chancellor Angela Merkel's government still believes the economy will grow slightly this year and does not think further stimulus is necessary.

"As the chancellor has already laid out, the government does not currently see any need for further measures to stabilise the economy - the fiscal policy of the German government is already expansive," a government spokeswoman said.

Economy Minister Peter Altmaier said Germany was not in a recession and could avoid one by taking the right measures.

This is the downside of being an exporting powerhouse. When the international economic environment clouds over, you get rained on.

The German statistical office hasn't given a detailed breakdown, but they have confirmed that exports declined and did so by more than imports.

China is at the centre of the trade storms and it's also an important export market for Germany. So trade held the economy back, in contrast with consumer spending and investment in Germany which both rose.

The economy contracted back in the third quarter of last year, and the subsequent rebound was not all that powerful.

Looking ahead, one question is whether Germany will see another decline in the current quarter, which would make it a recession as the term is often defined.

Some recent surveys of business confidence have been decidedly downbeat so the "R" word is certainly a possibility.

That said, Germany could still avoid it, and even if not, the country would at least be going into recession with unemployment that is among the lowest in the world.

"The development of foreign trade slowed down economic growth because exports recorded a stronger quarter-on-quarter decrease than imports," the statistics office said.

The US-China trade war and the UK's departure from the EU, especially if it happens without a deal, are among factors affecting global economic confidence.

Last month, the International Monetary Fund cut its growth forecasts for the global economy for this year and next, citing US-China tariffs, US car tariffs and no-deal Brexit.

China's own economic slowdown has weakened demand for foreign goods. It is an important market for Germany, since it buys plenty of luxury cars.

Only the much larger economies of the US and China export more goods than Germany.

The results may make authorities consider more monetary stimulus, said Neil Wilson, chief market analyst for Markets.com.

Meanwhile, the European Central Bank has hinted it could cut interest rates to tackle a slowdown in the eurozone economy.

The ECB said last month that a weak manufacturing sector and uncertainty over Brexit and trade threatened to derail growth. It forecast rates at current or lower levels until mid-2020.--BBC

Brexit: No chance of US trade deal if Irish accord hit - Pelosi

A US-UK trade deal will not get through Congress if Brexit undermines the Good Friday Agreement, the Speaker of the US House of Representatives has said.

Democrat Nancy Pelosi, whose party controls the House, said the UK's exit from the EU could not be allowed to endanger the Irish peace deal.

Her comments came after the US national security adviser said the UK would be "first in line" for a trade deal.

John Bolton spoke after meeting Prime Minister Boris Johnson in London.

UK 'first in line' for US trade deal, says Bolton

Who is John Bolton?

The reimposition of frontier controls between Northern Ireland and the Republic of Ireland if the UK leaves the EU without mutual agreement on 31 October - a so-called "hard Brexit" - is seen as a threat to the 1998 Good Friday Agreement, which ended decades of bloodshed in Northern Ireland.

"Whatever form it takes, Brexit cannot be allowed to imperil the Good Friday Agreement, including the seamless border between the Irish Republic and Northern Ireland," Ms Pelosi said in a statement on Wednesday.

'Tough old haggle'

Mr Bolton said on Tuesday that the Trump administration supported a no-deal Brexit, and added Washington would propose an accelerated series of trade deals in the event of one.

He said these could be done on a "sector-by-sector" basis, with an agreement on manufacturing made first. A trade deal for financial services and agriculture would not be the first to be agreed, he added.

What trade deals has the UK done so far?

Could US companies run NHS services after Brexit?

Asked whether his proposed plan would follow World Trade Organization (WTO) rules, Mr Bolton said "our trade negotiators seem to think it is".

He said there would be enthusiastic bipartisan support in Congress for speedy ratification at each stage.

Mr Johnson said there were "all sorts" of opportunities for UK business in the US, particularly service companies, but the negotiations will be a "tough old haggle".

However, critics warn that the UK will have to give in to some US demands in return for any trade agreement.

Former UK Foreign Secretary Jack Straw, who served under a Labour government, described Mr Bolton as "dangerously bellicose".

He suggested the UK would have to agree to some US demands, for example allowing imports of US chlorine-washed chicken.

"This is a highly transactional administration… you don't get something for nothing," he told BBC Radio 4's Today programme.

Lewis Lukens, a former deputy chief of mission at the US embassy in London and former acting US ambassador, said Mr Bolton was aligned to President Trump's "America first agenda" and would be making "strong demands" on the UK to back the US position on issues like China, Iran and Chinese tech giant Huawei.

Mr Johnson is expected to have his first face-to-face meeting as prime minister with Mr Trump later this month at the G7 summit in France.--BBC

INVESTORS DIARY 2019

Company

Event

Venue

Date & Time

Companies under Cautionary

Bindura Nickel Corporation

Padenga Holdings

Delta Corporation

Meikles Limited

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