Major International Business Headlines Brief::: 07 April 2020

[Bulls n Bears]

 <http://www.bulls.co.zw/> Bulls.co.zw
<mailto:info at bulls.co.zw?subject=View%20and%20Comments> Views & Comments
<http://www.bulls.co.zw/blog> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

 


 

 


Major International Business Headlines Brief::: 07 April 2020

 


 

 


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

 


 

 


 

 

ü  South Africa's central bank sees up to -4% GDP over coronavirus fallout

ü  Nigeria seeks $6.9 bln from lenders to fund coronavirus fight

ü  South Africa's rand firmer as risk takers return, stocks up 3.29%

ü  Safaricom, Vodacom finalise M-Pesa acquisition from Britain's Vodafone

ü  Uganda slashes main interest rate to 8% as coronavirus hurts economy

ü  S.Africa's Woolworths warns of likely 20% profit fall

ü  Coronavirus prompts Congo to cut 2020 growth forecast to 1.1%

ü  South Africa's rand weakens after another Fitch downgrade

ü  Tunisia's annual inflation rate rises to 6.2% in March

ü  Africa could lose 20 mln jobs due to pandemic - AU study

ü  Calls for debt relief for world's poorest nations

ü  Short-form streaming app Quibi launches to rival Netflix

ü  US car insurers refund drivers stuck at home

ü  Why is the petrol price nearing £1 a litre?

ü  Drones in Africa: How they could become lifesavers

 

 


 <mailto:info at bulls.co.zw> 

 


South Africa's central bank sees up to -4% GDP over coronavirus fallout

(Reuters) - South Africa’s central bank slashed its growth forecasts on
Monday, predicting the economy could shrink by as much as 4% in 2020 due to
the novel coronavirus, which has forced a national lockdown and triggered
two credit ratings downgrades.

 

The bank also said growth was unlikely to exceed 1% in 2021, job losses this
year could reach 370,000, and business insolvencies would likely increase by
1,600. While painting a grim outlook, it dampened expectations of the kind
of radical stimulus measures Western countries have adopted to tackle it.

 

“South Africa’s pre-existing macroeconomic vulnerabilities make it
unrealistic to implement stimulus on the scale seen in the strongest
advanced economies,” the South African Reserve Bank (SARB) said in its
bi-annual Monetary Policy Review.

 

Africa’s most advanced economy was already on the ropes when pandemic hit
local shores, recording its second recession in two years in the final
quarter of 2019, with data from 2020 already showing slack industrial and
financial activity.

 

“Updated estimates show the economy contracting by around 2% to 4% in 2020,
although these projections are tentative,” the South African Reserve Bank
(SARB) said in its bi-annual Monetary Policy Review.

 

“There is limited scope for a rebound,” the bank said, adding the were
downside risks to the dire forecasts should the lockdown be extended, or if
the global economy weakened more than expected.

 

LOCKDOWN WOES

The country has reported 1,585 coronavirus cases, the highest on continent,
with nine deaths, and is in the second week of a 21-day lockdown.

 

In a teleconference the bank said average growth in past decade was at its
weakest since at least the 1980s, due to electricity shortages and the slow
pace of structural reforms, while the rising risk premium was keeping the
bank from deeper lending cuts.

 

On Friday ratings agency Fitch cut the country’s credit rating deeper into
sub-investment territory, forecasting a 3.8% contraction to the economy in
2020. The week before, Moody’s also cut the rating to junk.

 

In response the rand hit an all-time low while bond yields spiked, fuelling
fears of a financial and fiscal crisis.

 

In March the bank launched a bond-buying programme to plug a liquidity
drought in credit markets and, before that, cut lending rates by 100 basis
points.

 

On Monday the Governor Lesetja Kganyago said he was pleased with the impact
of the liquidity measures.

 

However, calls for the bank and the National Treasury do more to support the
economy have grown louder, especially with unemployment already at 30%.

 

Kganyago ruled out switching to monthly monetary policy meetings or tapping
the Federal Reserve for funds through its recently offered fx swap line.

 

“We have not considered moving to a monthly meeting. We will however
continue watch the data, and if the data is such that we have to meet
earlier, there’s nothing stopping us,” said Kganyago.

 

According the bank’s calculations, last month’s 100 basis point cut to
lending rates had put 32 billion rand ($1.7 billion) back into the economy.

 

($1 = 18.7933 rand)

 

 


 <mailto:info at bulls.co.zw> 

 


 

Nigeria seeks $6.9 bln from lenders to fund coronavirus fight

ABUJA (Reuters) - Nigeria has requested $6.9 billion from multilateral
lenders to combat the impact of the coronavirus pandemic on Africa’s biggest
economy, the finance minister said on Monday.

 

Nigeria, whose revenues have tumbled with the fall in oil prices, has asked
for $3.4 billion from the International Monetary Fund, $2.5 billion from the
World Bank and $1 billion from the African Development Bank (AfDB), Zainab
Ahmed said.

 

Africa’s most populous country and the continent’s biggest oil producer,
which is still recovering from a recession caused by the last period of weak
oil prices, had 232 confirmed cases of the novel coronavirus and five
deaths, as of Sunday.

 

A two-week lockdown was imposed last week on Lagos state, home to the
nation’s sprawling commercial hub, as well as neighbouring Ogun state and
the capital territory of Abuja, in an effort to prevent the virus spreading
across the country.

 

The minister told a news conference in Abuja that Nigeria was one of several
African states seeking the suspension of debt-servicing obligations for 2020
and 2021 from multilateral lenders.

 

The requests are part of a wider debate over debt relief. But analysts say
securing such relief will be a challenge as it requires winning approval
from a disparate array of creditors.

 

The IMF, which has received requests for help from about 80 nations
including 20 in Africa, is making about $50 billion available from its
emergency financing facilities to help countries cope with the crisis. The
World Bank has approved a $14 billion response package.

 

Nigeria’s finance minister said IMF support would not be tied to a formal
programme and the funds would not have conditions attached because the cash
was being borrowed previous Nigerian contributions to the Fund.

 

CUTTING SPENDING

“It is important to clarify that Nigeria does not intend to negotiate or
enter into a formal programme with the International Monetary Fund, at this
time, or in the foreseeable future,” Ahmed added.

 

The government said last month that spending in the $34.6 billion budget for
2020 would have to be cut by around $4.9 billion due to low oil prices and
the impact of the pandemic, which has driven down global demand for fuel.

 

The minister said the budget would assume an oil price of $30 a barrel, down
from $57, and production of 1.7 million barrels per day (bpd) rather than
2.1 million bpd.

 

“The emerging health and economic risks resulting from the COVID-19 pandemic
and decline in international oil prices pose existential threats to
Nigeria’s economy, healthcare system, national security, as well as the
lives of our citizens,” she said.

 

Nigeria, where economic growth had been about 2%, is still struggling to
shake off a 2016 recession caused by a previous slide in oil prices to below
$30 a barrel. In the latest crisis, oil prices plunged to a nearly
two-decade low of close to $20.

 

Fitch on Monday pushed Nigeria’s debt rating deeper into “junk” territory,
rating it a “B” and saying it expected the virus pandemic to drive the
economy back into recession. It forecast the economy would contract 1% in
2020.

 

Ahmed said the government had provided 102.5 billion naira($285 million) to
support the healthcare sector, of which 6.5 billion naira had already been
made available as critical expenditure for the Nigeria Centre for Disease
Control.

 

Lagos state, where most confirmed cases of the virus in the country have
been identified, had received 10 billion naira in emergency funding, the
minister said.

 

The government said on Saturday it planned to create a coronavirus fund to
strengthen its healthcare infrastructure.

 

Ahmed said on Monday the president had approved the fund and said backing
from lawmakers was being sought to borrow the money from special accounts.

 

($1 = 360.0000 naira)

 

 

 

South Africa's rand firmer as risk takers return, stocks up 3.29%

JOHANNESBURG (Reuters) - South Africa’s rand powered to its firmest in
almost a week on Monday, climbing down from an all-time low as some
investors banked profits while risk sentiment was cheered by signs the
spread of the novel coronavirus was easing.

 

At 1500 GMT the rand was 1.84% firmer at 18.7000 per dollar, having
kicked-off the session at 19.0900 and looking poised for further falls after
Fitch slashed the country’s debt deeper into sub-investment-grade late on
Friday.

 

The Johannesburg Stock Exchange’s Top-40 index rose 3.63% to 42,356.59
points and the All-Share index climbed 3.29% to 46,066.94 points.

 

“Markets are continuing to rebound from oversold levels,” said Shaun
Murison, a senior analyst at IG Markets.

 

“The dollar has reversed earlier gains and we’re seeing a recovery in EM
currencies. The rand is coming from severely depressed levels with the
suggestion that perhaps it is undervalued at current levels,” said Murison.

 

The currency crashed to an all-time low of 19.3590 between late Friday and
early Monday as the shock of the second ratings downgrade in as many weeks
rippled through markets, but saw some strong bids late in the session as
investors eyed high-yielders.

 

Risk sentiment was soothed by signs that the spread of the novel coronavirus
in the United States and Europe could be tapering.

 

France’s daily death toll fell in the past 24 hours, Italy reported its
lowest daily COVID-19 death toll for more than two weeks and Spain’s pace of
new deaths slowed.

 

Bonds also firmed, with the yield on the benchmark issue due in 2030 down 12
basis points to 11.315%.

 

The central bank said on Monday growth in 2020 could contract by as much 4
much due to the coronavirus lockdown.

 

 

 

Safaricom, Vodacom finalise M-Pesa acquisition from Britain's Vodafone

NAIROBI (Reuters) - Kenya’s leading telecom firm Safaricom and South
Africa’s Vodacom said on Monday that they had completed the acquisition of
popular mobile money platform M-Pesa from Britain’s Vodafone.

 

“The transaction... will accelerate M-Pesa’s growth in Africa by giving both
Vodacom and Safaricom full control of the M-Pesa brand, product development
and support services as well as the opportunity to expand M-Pesa into new
African markets,” they said in a statement.

 

The companies did not disclose the value of the transaction, which was first
announced in 2019 and completed via a newly-created joint venture, but last
year Safaricom’s then chief executive Bob Collymore said the deal could be
worth about $13 million.

 

M-Pesa, launched in Kenya more than a decade ago, has evolved from a basic
mobile money transfer application into a fully-fledged financial service
platform, offering loans and savings in partnership with local banks, plus
merchant payment services.

 

It has grown to become the largest payments platform in Africa, with 40
million users and processes over a billion transactions every month,
according to Safaricom and Vodacom’s joint statement.

 

It is now available for subscribers in Kenya, Tanzania, Lesotho, Democratic
Republic of Congo, Ghana, Mozambique and Egypt.

 

“This is a significant milestone for Vodacom as it will accelerate our
financial services aspirations in Africa,” said Shameel Joosub, Vodacom
Group CEO.

 

“Our joint venture will allow Vodacom and Safaricom to drive the next
generation of the M-pesa platform – an intelligent, cloud-based platform for
the smartphone age.”

 

 

 

Uganda slashes main interest rate to 8% as coronavirus hurts economy

KAMPALA (Reuters) - Uganda’s central bank cut its policy rate by 100 basis
points on Monday to 8% to support the economy which has been hit by the
impact of the coronavirus outbreak.

 

The bank also said it now expected economic growth to “slow down
drastically”, to between 3 and 4% for the financial year to June, from a
previous projection of 5.5-6%.

 

Sectors such as manufacturing, entertainment and trade had taken a huge blow
from the disruptions caused by the coronavirus and forced them to revise
down growth projections, the bank said.

 

“The COVID-19 pandemic has led to a severe contraction in economic activity
due to a combination of global supply chain disruptions, travel restrictions
... and the sudden decline in demand,” it said in a statement.

 

The bank’s benchmark interest rate is now at its lowest level since
authorities introduced an inflation-targeting monetary policy in 2011. The
rate had been steady at 9% since October when it was cut from 10%.

 

Uganda has recorded 52 cases of COVID-19, but no deaths so far. The
government has imposed drastic measures to help curb the disease’s spread
including a ban on public transport and public gatherings, and shutting down
all businesses except the most essential.

 

Schools too were closed while authorities also imposed a dusk-to-dawn
curfew.

 

As part of measures to help cushion the economy from the impact of COVID-19,
Bank of Uganda also said it “directed” commercial banks to defer all
discretionary payments such as dividends and bonus payments for at least 90
days from March.

 

“Consumer-facing sectors have been severely affected by social distancing
measures and heightened uncertainty,” the bank said.

 

Manufacturing activity had declined due to disruptions to the inflow of raw
materials, while trade had also taken a hit from a decline in external
demand and supply chain disruptions, the bank said.

 

 

 

S.Africa's Woolworths warns of likely 20% profit fall

JOHANNESBURG (Reuters) - South African retailer Woolworths expects profit
for the 52 weeks to June 28 to fall more than 20% year on year, hit by a
drop in sales owing to measures to prevent the spread of the coronavirus.

 

In its markets of South Africa, Australia and New Zealand, governments have
enforced weeks-long lockdowns or urged citizens to stay home, prompting
Woolworths to close outlets selling clothing, beauty and homeware products.

 

“The temporary closure of non-food stores ... decline in foot traffic and
consequent loss of trade are likely to have a substantial impact on our
earnings and cashflow,” the company said in a statement.

 

While it benefited from a 27.6% rise in food sales in South Africa in the
four weeks to the end of March as consumers rushed to stock up on goods,
this was accompanied by a similar decline in its fashion, beauty and home
unit.

 

It also saw sales slump in its Australian and New Zealand businesses, namely
clothing outlets Country Road and David Jones.

 

An anticipated fall in disposable income is expected to drive up bad debts
as consumers miss payments on store credit, while lower interest rates will
cut its income from lending. The company said this, combined with the fall
in sales, would likely result in a more than 20% decline in profits, though
the exact impact was still difficult to quantify.

 

To try and mitigate the damage, it said it was focusing on boosting online
sales and cutting costs and capital expenditure, with only critical projects
moving forward.

 

The board and senior executive team will forgo 30% of their fees and
salaries over the next three months, the statement continued, with the
savings used to provide support to staff members that face extreme hardship
as a result of the current crisis.

 

The company’s shares rose 2.2% at the market open, lagging a 3% rise across
the Johannesburg Stock Exchange.

 

 

 

Coronavirus prompts Congo to cut 2020 growth forecast to 1.1%

KINSHASA (Reuters) - Democratic Republic of Congo has cut its 2020 economic
growth forecast to 1.1% from 4.1% due to the negative impact of the
coronavirus pandemic, the country’s central bank said in a statement seen by
Reuters on Sunday.

 

The pandemic has caused global trade to slow, causing countries across
central Africa to slash growth projections.

 

 

 

South Africa's rand weakens after another Fitch downgrade

JOHANNESBURG (Reuters) - South Africa’s rand weakened early on Monday,
sliding to a record low, after the ratings agency Fitch cut the country’s
credit rating on Friday for the second time in a week, pushing it further
into sub-investment territory.

 

At 0645 GMT, the rand was down 0.3% to 19.1100 per dollar, pulling back from
19.3590, its weakest ever.

 

Fitch lowered its foreign-currency rating to ‘BB’ from ‘BB+” and assigned a
negative outlook, forecasting a 3.8% contraction to the economy in 2020 and
a fiscal deficit of 11.5% of GDP.

 

The downgrade follows Moody’s decision in the last week of March to strip
the country of its last investment-grade credit rating, a move which will
see the country’s local-currency debt ejected from the benchmark World
Government Bond Index.

 

South Africa’s economy went into the global novel coronavirus crisis already
in it second recession in two years in the final quarter of 2019 and the
2020 outlook not much better.

 

South Africa reported 1,585 coronavirus cases as of late Saturday, with nine
deaths, and is in its second week of a nationwide lockdown that has seen the
economy grind to a halt and government explore emergency policy measures.

 

Bonds opened weaker, with the yield on the benchmark debt due in 20206 up 3
basis points to 11.465%.

 

In equities, retailer Woolworths said it expects profit for the 52 weeks to
June 28 to fall more than 20% year-on-year due to a drop in sales owing to
measures to prevent the spread of the coronavirus.

 

 

 

 

Tunisia's annual inflation rate rises to 6.2% in March

TUNIS (Reuters) - Tunisia’s annual inflation rate rose to 6.2% in March,
official data showed on Sunday, the first rise in six months.

 

In February, inflation was at 5.8 pct.

 

 

 

Africa could lose 20 mln jobs due to pandemic - AU study

JOHANNESBURG/ADDIS ABABA (Reuters) - About 20 million jobs are at risk in
Africa as the continent’s economies are projected to shrink this year due to
the impact of the coronavirus pandemic, according an African Union (AU)
study.

 

So far, Africa accounts for just a fraction of total cases of the disease
which has infected more than one million people worldwide, according to a
Reuters tally.

 

But African economies are already facing an impending global economic
downturn, plummeting oil and commodity prices and an imploding tourism
sector.

 

Before the onset of the pandemic, continent-wide gross domestic product
(GDP) growth had been projected by the African Development Bank to reach
3.4% this year.

 

However, in both scenarios modelled by the AU study - seen by Reuters and
entitled “Impact of the coronavirus on the Africa economy” - GDP will now
shrink.

 

Under what the AU researchers deemed their realistic scenario, Africa’s
economy will shrink 0.8%, while the pessimistic scenario said there would be
a 1.1% dip.

 

Up to 15% for foreign direct investment could disappear.

 

The impact on employment will be dramatic.

 

“Nearly 20 million jobs, both in the formal and informal sectors, are
threatened with destruction on the continent if the situation continues,”
the analysis said.

 

African governments could lose up to 20 to 30% of their fiscal revenue,
estimated at 500 billion in 2019, it found.

 

Exports and imports are meanwhile projected to drop at least 35% from 2019
levels, incurring a loss in the value of trade of around $270 billion. This
at a time when the fight against the virus’ spread will lead to an increase
in public spending of at least $130 billion.

 

Africa’s oil producers, which have seen the value of their crude exports
plunge in past weeks, will be among the worst hit.

 

Sub-Saharan Africa’s biggest oil producers Nigeria and Angola alone could
lose $65 billion in income. African oil exporters are expected to see their
budget deficits double this year while their economies shrink 3% on average.

 

African tourist destinations will also suffer.

 

Africa has in recent years been among the fastest growing regions in the
world for tourism. But with borders now closed to prevent the disease’s
spread and entire airlines grounded, the sector has been almost entirely
shut down.

 

Countries where tourism constitutes a large part of GDP will see their
economies contract by an average of 3.3% this year. However, Africa’s major
tourism spots Seychelles, Cape Verde, Mauritius and Gambia will shrink at
least 7%.

 

“Under the average scenario, the tourism and travel sector in Africa could
lose at least $50 billion due to the covid-19 pandemic and at least 2
million direct and indirect jobs,” the AU study said.

 

Remittances from Africans living abroad - the continent’s largest financial
inflow over the past decade - are unlikely to cushion the blow.

 

“With economic activity in the doldrums in many advanced and emerging market
countries, remittances to Africa could experience significant declines,” the
analysis found.

 

 

 

Calls for debt relief for world's poorest nations

More than 100 global organisations are calling for debt payments of
developing countries to be dropped this year.

 

These countries include the world's poorest economies which are struggling
with the impacts of coronavirus.

 

Major charities including Oxfam and ActionAid International are asking for
the debt relief, which would free up more than $25bn (£20bn) this year.

 

They have written to world leaders and major central banks calling for a
range of debt relief measures.

 

The call is being spearheaded by UK-based charity Jubilee Debt Campaign and
comes a day before a meeting of the G20 group of the world's largest and
fastest-growing economies.

 

"Developing countries are being hit by an unprecedented economic shock, and
at the same time face an urgent health emergency," said Sarah-Jayne Clifton,
director of the Jubilee Debt Campaign.

 

"The suspension on debt payments called for by the IMF and World Bank saves
money now, but kicks the can down the road and avoids actually dealing with
the problem of spiralling debts."

 

The campaigners want debt payments to be cancelled with immediate effect,
including payments to private creditors.

 

"This is the fastest way to keep money in countries to use in responding to
Covid-19, and to ensure public money is not wasted bailing out the profits
of rich private speculators," added Ms Clifton.

 

Live: China reports no new virus deaths for first time

Calculations from non-profit network Eurodad show that 69 of the world's
poorest countries are due to pay $19.5bn to other governments and
multilateral institutions, and $6bn to external private lenders this year.

 

The International Monetary Fund (IMF) has made $50bn available in emergency
financing while the World Bank has approved a $14bn response package to the
most vulnerable economies. The IMF wants to target the money at countries
with weak health systems to help them respond to the epidemic.

 

Meanwhile, the World Bank's funding is aimed at both supporting the health
and financial impact of the virus. These will include low-cost loans, grants
and technical assistance.

 

During the coronavirus pandemic, campaigners want debt relief to be applied
for all countries in need, and most urgently for the poorest countries.
Looking more long-term, they want a process to reduce debts to a sustainable
level after the crisis.

 

This involves asking the IMF to introduce clear guidelines on when a debt is
unsustainable, and follow its policy only to lend to countries with
unsustainable debts if there is a default or debt restructuring plan in
place.

 

In a blog on Monday, the IMF said the pandemic had pushed the world into a
recession. "For 2020 it will be worse than the global financial crisis. The
economic damage is mounting across all countries, tracking the sharp rise in
new infections and containment measures put in place by governments".--BBC

 

 

 

Short-form streaming app Quibi launches to rival Netflix

The mobile-first streaming service Quibi launched in the US on Monday,
despite concerns the coronavirus outbreak might impact its viewership.

 

The company has raised $1.8bn (£1.47bn) for the project intended to rival
Netflix and YouTube.

 

Quibi's shows are 10 minutes or shorter and movies are broken into segments.

 

It has lined up a host of Hollywood and showbiz stars including Idris Elba,
Sophie Turner, Steven Spielberg, Chrissy Teigen and Jennifer Lopez.

 

Viewers are meant to watch the shows on their mobile phones, and a feature
called Turnstile allows the video to stay full screen in both portrait or
landscape.

 

Some shows even encourage viewers to turn the device mid-show to reveal a
different angle to the scene.

 

On social media, Quibi's launch was met with mixed reviews.

 

Quibi videos have a feature that allows the picture to rotate if viewers
turn their device.

Some of its highly promoted shows - like Punk'd featuring Chance the Rapper
and Survive starring Sophie Turner - received praise.

 

But watching alone on your smartphone - a fundamental feature of the app -
was criticised. Users complained they couldn't share what they were watching
with housemates or partners.

 

The service costs $4.99 a month with adverts and $7.99 for ad-free viewing,
although Quibi is giving away a 90-day free trial in the US. The company had
said it planned to roll out its services to other countries gradually, but
on Monday the ad-free version app appeared to be available in the UK.

 

Quibi's chief executive Meg Whitman and founder Jeffrey Katzenberg decided
to stick with the 6 April debut in the US despite concerns the coronavirus
pandemic and lockdowns could impact its target audience. Many analysts
expected Quibi viewers to watch while commuting or during a break at work or
school, but those activities are on hold for many during government lockdown
periods.

 

Quibi says its target audience is between 18-44 years old viewers already
comfortable with short-form storytelling and streaming on their smartphones.

 

In several ways, I am exactly the audience Quibi is after. I'm not what you
would call a "binge watcher" - I find it hard to sit still through multiple
30-minute episodes. But I do watch plenty of short videos on YouTube and
social media throughout the day.

 

Still, the coronavirus lockdown has given me a lot more time to stream TV
and movies, so did I need a service with only sub-10-minute episodes?

 

After several hours of perusing Quibi's content, I think the service is on
to something.

 

The shows are entertaining and the creators clearly thought about how the
audience would view the screen. The episodes are no more than 10 minutes
long and none of them felt cut off or too short.

 

There are downsides - my arm is tired from holding the phone up all day, you
can only share content with other Quibi subscribers and you can't play it on
your television if you happen to be at home.

 

I began my Quibi viewing with the show Survive, starring former Game of
Thrones actor Sophie Turner. The drama was promoted at the top of the app
and given the current state of the world - why not start with a drama about
a young woman battling suicidal thoughts while struggling to survive on a
frozen mountaintop after a plane crash?

 

I was hooked pretty fast.

 

I also immediately started to test out the Turnstile feature that changes
perspective of the pictures when the screen is turned from vertical to
horizontal.

 

To my great delight the shifts from portrait to landscape were fairly
seamless. In Survive the picture always re-centred to keep you locked in the
emotion of the scene - and the scenes are very emotional.

 

As I kept watching throughout the day, I found myself using the Turnstile
feature more naturally.

 

If I got up to get water or stretch my legs I would take the phone, turning
it from horizontal to vertical rather than pausing the show.

 

Yes, I did bump into some things and I can imagine in world of commuting and
crowded walkways Quibi could be a hazard.

 

 

Quibi has poured money into its scripted shows and non-scripted/reality
shows. Judging from the comments on Twitter I wasn't alone in really enjoy
Punk'd - a revival of the MTV prank show now starring Chance the Rapper.

 

Not only did I find the show funny I really wanted to share it with my
friends, but as none of them had signed up for Quibi yet they couldn't view
the episodes.

 

For me this felt like a drawback. If I saw something funny on YouTube or
Tiktok I could send it to friends - not with Quibi.

 

Another feature I really liked were the news episodes (surprise surprise).

 

Quibi has teamed up with NBC, BBC, ESPN and others to make bespoke news
packages for the app. I found the ones I watched to be informative, the
right length and pretty engaging. But I can't see why any of these videos
should be unique to Quibi. Turning them doesn't make much of a difference so
I couldn't see why news outlets couldn't just publish these videos
themselves.

 

I began my Quibi journey thinking I didn't need anything else to make me
more anti-social these days. While hosting a Netflix viewing party may give
me a way to interact with my friends in real time, the quality content on
Quibi leaves me thinking that when more people download it I'll have plenty
to discuss with them.--BBC

 

 

 

US car insurers refund drivers stuck at home

A major car insurer in the US is refunding millions of dollars to customers
stuck at home during coronavirus lockdowns.

 

Allstate, the country's fourth biggest car insurer, said it would give back
$600m (£490m) in total to customers.

 

Another insurer, American Family Mutual, is also refunding customers, with
cheques totalling $200m.

 

Both have seen a dramatic drop in accident claims as residents stay at home
and off the roads.

 

The refunds come at a good time with millions of households suffering
financially from lockdowns across the country.

 

Allstate will be paying customers back in two ways. Drivers in quarantine
will receive refunds, while most customers will be given a 15% discount on
monthly premiums for April and May. The discounts will apply to 18 million
customers.

 

"This is fair because less driving means fewer accidents," said Tom Wilson,
chief executive at Allstate. Its data showed driving mileage was down
between 35% and 40%.

 

Live: China reports no new virus deaths for first time

American Family Mutual said it would be making a one-time payment to all
customers. "They are driving less and experiencing fewer claims. Because of
these results, they deserve premium relief," said chief operating officer
Telisa Yancy.

 

The insurer, which operates in 19 US states, estimates policyholders drove
40% fewer miles in the last three weeks of March.

 

"There are very few silver linings out there, but auto insurance companies
are definitely one of them," said Paul Newsome, an analyst at investment
bank Piper Sandler.

 

The refunds could put pressure on other car insurers globally to make
refunds due to a drop in driving, particularly due to commuters now working
from home. Quieter roads are likely to lead to fewer accidents and
subsequent claims.

 

It's not clear yet whether travel insurers might follow suit on annual
policies, given less people are travelling overseas.--BBC

 

 

 

Why is the petrol price nearing £1 a litre?

The cost of petrol in the UK is approaching £1 a litre for the first time
since 2016.

 

Some filling stations around the country have even been reported offering
petrol at less than £1.

 

But motorists may be hard-pressed to find low deals as prices vary widely.

 

Why are petrol prices falling?

The key factor affecting petrol is the wholesale oil market.

 

Oil prices slumped in March after a price war broke out between Saudi Arabia
and Russia.

 

It kicked off when Saudi Arabia failed to convince Russia to back production
cuts that had been agreed with the other members of the Opec oil producers'
group.

 

Oil prices tumbled and pretty soon fell to half the level they had been at
just a couple of months earlier.

 

In January the price of a barrel of Brent Crude had touched $70.

 

By mid-March the price war had help it to fall to close to $30 a barrel.

 

But the global coronavirus crisis has also hit demand as airlines slashed
services and travel restrictions reduced the amount of petrol pump activity.

 

The price of oil fell below $25 a barrel - the lowest level since 2002.

 

Why hasn't petrol fallen as dramatically as oil?

While the price of petrol is linked to the wholesale price of oil, it is
competitively driven.

 

That means the cost motorists are charged is not directly linked to crude.
Instead, suppliers control the prices they sell petrol at.

 

They tend not to reduce prices quickly - or raise them rapidly when oil goes
up.

 

That said, the pump price cuts in March were dramatic.

 

UK petrol prices fell by their largest margin in 12 years during the month,
according to the RAC.

 

More than 9p came off the average price of unleaded in the month while the
price of diesel was down by nearly 8p.

 

How much should I expect to pay for petrol?

It varies according to which supplier you use and where you are in the
country.

 

Supermarkets tend to offer the lowest prices, mainly because they use petrol
as a loss leader.

 

That means they sell it cheap in the hope that once you've filled up, you'll
pop into the accompanying store and spend lots more cash.

 

So while the average cost of petrol at the end of March was 113.54p,
according to the RAC, supermarket prices were as low as 104p a litre.

 

But prices at local garages are set according to nearby competition.

 

So if you only have one local garage close by with no immediate rivals, it
will be able to charge more as it has, to a degree, a captive market.

 

That's why prices vary even at the same supermarket chain or petrol company.

 

The AA said the cheapest average unleaded petrol price at the end of March
of 108.13p was found in Northern Ireland.

 

But in the south-east of England the average was more 8p higher at 116.19p.

 

Will petrol fall to £1 a litre?

Competition has driven the price of petrol down towards £1.

 

By the beginning of April, the cheapest litre on the market was being
flogged at just 102.7p, via a supermarket.

 

But hopes of it crashing through the £1 barrier remain in some doubt after
the oil-producing countries' organisation Opec was reported to be working on
restricting production.

 

Any such move would depend on Saudi Arabia and Russia ending their price
war.

 

The rumour pushed oil prices up more than 20% in one day at the beginning of
April.

 

Petrol pump prices remained unaffected by the short-term oil rise, partly
because of the ongoing impact of Covid-19 on demand.

 

Experts reckon that oil prices are likely to be subdued, at least in the
short term.

 

So how will that translate into UK pump prices?

 

"Despite the recent enormous supermarket price cuts, based on the wholesale
cost of unleaded and diesel, there is still scope for further reductions at
forecourts," said RAC fuel spokesman Simon Williams.

 

"Indeed, if the supermarkets were to more fully reflect the huge reductions
in wholesale prices, we would certainly sell see unleaded sold for under £1
per litre, something they last did in March 2016."

 

However, the AA reported seeing the price fall below £1 a litre at a handful
of petrol stations, in Northern Ireland and one near Birmingham.

 

Will petrol stations close?

Concerns are growing for independent fuel retailers.

 

The price cuts are hitting their margins and they are currently selling much
less petrol because of the movement coronavirus shutdown.

 

The Petrol Retailers Association (PRA) has warned that many petrol stations
will have to close in the coming weeks, as sales of fuel dry up and their
businesses become unviable.

 

A Department for Business, Energy & Industrial Strategy survey published in
early April showed that petrol consumption was down by 75% and diesel by
71%.

 

"To help freight move and help key workers travel safely and independently
through this period of crisis, petrol filling stations must remain open, but
it is proving to be a challenge for many filling stations," said Brian
Madderson, chairman of the PRA.

 

"Without immediate cash flow assistance, many more forecourts across the UK
will have to close," he warned.--BBC

 

 

 

Drones in Africa: How they could become lifesavers

Death comes fast, says Temie Giwa-Tubosun, as we sit in the scorching
sunshine of Rwanda's capital Kigali.

 

She's talking about post-partum haemorrhage - women bleeding after
childbirth.

 

"I'm always amazed that more attention isn't paid to this - it's the biggest
cause of death in childbirth".

 

Temie's company, Lifebank, delivers life-saving blood to hospitals in her
home country of Nigeria, and elsewhere on the continent.

 

Usually the blood is transported by road or on boats, but in Ethiopia some
is moved by drone.

 

Mr Giwa-Tubosun is visiting Kigali for the first ever African Drone Forum at
the shiny convention centre, which looks like a giant beehive crossed with a
helter-skelter.

 

It glows like a rainbow at night, and is the jewel in the crown of modern
Kigali, the fast-changing capital of a country which Rwanda's politicians
time and again tell us is open for business.

 

Technology is front and centre of the government's plan to become a
higher-middle-income country by 2050. It's an ambitious goal, given over 35%
of the population lives in poverty, according to government statistics.

 

But it's one which President Paul Kagame is clearly keen to push. As he
stands in front of the audience, he says that drones will become not just
part of the Rwandan skies - he wants them manufactured and piloted by
Rwandans.

 

Schoolchildren watching hop up and down with excitement, hands shoot into
the air when speakers talk about drone networks. "I want to be a drone
pilot," one girl, who can't be more than twelve, announces confidently. This
is now one of the coolest jobs in Rwanda.

 

"In underdeveloped countries like Rwanda technology has to be adopted
faster," says one college student called Benjamin. His classmate nods, she's
studying engineering too. "People don't know about drones, but the young can
tell the older generation" he adds.

 

Rwanda, the country of a thousand hills and slow, tediously winding roads,
was the first in the world to embrace a commercial delivery service by drone
when Silicon Valley firm Zipline began flying blood in 2016.

 

It received a huge amount of global publicity and has delivered tens of
thousands of units of blood. But Zipline is an exception. Its flights are
classified as government flights, meaning it has high-level exemptions when
it comes to air traffic management.

 

It's the thorny issue of regulation and management of the lower airspace
which all agree is key to the establishment of sustainable long-term drone
delivery networks.

 

Why drone deliveries?

 

Temie explains how her drivers have to learn the location of 400 hospitals
by heart as the maps aren't accurate enough in a frantically urbanising city
like Lagos, which is also clogged by traffic.

 

Drones for her are just a way to get what's needed to patients faster. But,
in Nigeria, they're not yet used for drops.

 

"The regulation isn't there yet," she says, but she and most people here
believe that this will change, and that African skies, which are less
congested than many parts of the world, will lead the way. But can it happen
as quickly as many seem impatient to see, and should it?

 

Freddie Mbuya, who owns the Tanzanian technology firm Uhurulabs, is a
self-confessed nay-sayer.

 

"I don't think that delivery drones in Africa will be realistic in any
meaningful way for the next decade. There's humanitarian need but no market
opportunity."

 

"It exists now because of donor money and sponsorship."

 

For him, and his company, drones for mapping, and land surveying for clients
such as miners are the most compelling use case.

 

The World Bank's Edward Anderson, who has focused on drones in the region,
argues that they should be regarded as useful not just for medical
deliveries.

 

"Rwanda is one of the most densely populated rural parts of the world. In
the long run we're looking at drones providing economic opportunity in
agriculture, for small-scale manufacturers, and to deliver time-sensitive
goods such as cash and documents."

 

Leapfrogging slow roads

 

A 90km drive from Kigali, taking over four-and-a-half stomach-churning
hours, we arrive at a temporary drone port in a stunning spot by a bay of
Lake Kivu, close to the border with the Democratic Republic of Congo.

 

Rwanda's rural areas are densely populated, but road infrastructure is
inadequate. Most people walk miles up steep, high-sided hills, and the main
road out of Kigali has a constant stream of foot traffic.

 

The lake is quiet, and still. A local fisherman tells us that's because of
strict restrictions due to the neighbouring country's ongoing Ebola
outbreak.

 

"The army says no," he says bluntly when we ask why there are so few boats,
which would be a lot faster than roads to transport goods.

 

This is the Lake Kivu Challenge, the competition portion of the drone forum,
and teams from around the world, mainly from Europe, are competing for
contracts with the Rwandan government.

 

In a shed next to the hut where the little drones sit ready for their turn,
we see mock-ups of blood transfusion bags and medical samples.

 

These will be picked up by the drones, dropped at a nearby island, then
collected again within a certain time limit.

 

Sheltering in the shade we chat to Selina Herzog from German drone firm
Wingcopter. It received a lot of attention last year for its vaccine drops
on a remote island in Vanuatu in the Pacific. "We have to make sure we
aren't just coming into a country, running a short trial, then leaving
again," she says.

 

Who will pay for the drones?

 

This has been one of the biggest criticisms of cargo drone experiments,
funded more often than not by humanitarian agencies for a very short
duration.

 

"We're not there yet with regulators, countries have different rules, we
have a lot to work out still.... and the question is, just who is going to
pay for this?" Ms Herzog asks.

 

This is something Lifebank's Temie Giwa is also passionate about.

 

"We have a moral responsibility to be cost-effective. We can't charge a
developing country $250 (£204) for a drone delivery. [However] the only way
to be sustainable is to be profitable."

 

Back in Kigali, Temie remembers her own emergency caesarean, while she was
in the US.

 

She believes the outcome could have been tragically different if she'd been
back home in Nigeria, as it is for so many women.

 

"I get tearful every time I think about this, it is so solvable."--BBC

 

 

 

 

 

 

 

 


 

 


 

INVESTORS DIARY 2020

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


Bindura Nickel Corporation

 

 

 


Padenga Holdings

 

 

 


Delta Corporation

 

 

 


Meikles Limited

 

 

 


 <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.

 


 

 


(c) 2020 Web: <http:// www.bulls.co.zw >  www.bulls.co.zw Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

 


 

 

 

 

 

 

Invest Wisely!

Bulls n Bears 

 

Telephone:      <tel:%2B263%204%202927658> +263 4 2927658

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw&sa=D&sntz=1&usg=AF
QjCNH8LYgdY55h-XKseuM8Kpr-JKdfhQ> www.bulls.co.zw 

Blog:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1
&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bulls.co.zw/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 



 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200407/cd382820/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 23068 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200407/cd382820/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 35513 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200407/cd382820/attachment-0006.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 33750 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200407/cd382820/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 31439 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200407/cd382820/attachment-0008.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 4846 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200407/cd382820/attachment-0009.jpg>