Major International Business Headlines Brief::: 16 April 2020

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Major International Business Headlines Brief::: 16 April 2020

 


 

 


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

 


 

 


 

 

ü  Moody's sees South Africa GDP shrinking 2.5% as coronavirus shutdown
weighs

ü  MTN bosses to donate part of salaries towards staff relief package

ü  South Africa's Vodacom to bolster network capacity during lockdown

ü  S.Africa's Woolworths offers drive-through service to help shoppers avoid
stores

ü  IMF board approves emergency support for Burkina Faso, Niger - statements

ü  Zambia plans to revoke Glencore's Mopani Copper Mines licences

ü  Tunisia tourism could lose $1.4 bln, govt seeks loan guarantee to issue
bonds

ü  Shares in South Africa's Nedbank fall over 9% as it withdraws 2020
guidance over COVID-19

ü  South Africa's rand falls as economy face deep recession

ü  South Africa rules out IMF programme as central bank cuts rates

ü  IMF head calls for Brexit trade talk extension

ü  Coronavirus: Asian economies won't grow this year, says IMF

ü  Coronavirus: G20 delays poor nations' debt payments

ü  Eastern Europeans to be flown in to pick fruit and veg

ü  Oasis and Warehouse fall into administration

ü  BT delays removal of Huawei from EE's core network by two years

 

 

 


 <mailto:info at bulls.co.zw> 

 


Moody's sees South Africa GDP shrinking 2.5% as coronavirus shutdown weighs

JOHANNESBURG (Reuters) - Ratings agency Moody’s cut its forecast for South
Africa’s economy to a 2.5% contraction in 2020, citing the impact of a
nationwide, five-week shutdown aimed at limiting the spread of the novel
cornavirus.

 

In early March, before it downgraded the country’s credit rating to
subinvestment status, Moody’s had forecast an expansion of 0.4%. Fitch and
S&P Global Ratings also rank South Africa at “junk” status. [nL8N2BK8MI]

 

“We forecast real GDP will contract by 2.5% in 2020, as the coronavirus
crisis weighs on economic activity,” Moody’s said in a research report dated
April 14.

 

The country has the most confirmed coronavirus cases in sub-Saharan Africa,
at 2,415, a number expected to rise significantly as more tests are
conducted. The national lockdown started on March 26.

 

“The lockdown will reduce the country’s productive capacities, with the
transport, hospitality, mining and manufacturing industries particularly
affected, while weighing on households’ consumption,” Moody’s said.

 

On Tuesday the South African Reserve Bank said it saw gross domestic product
(GDP) shrinking 6.1% this year, while major banks locally and abroad see the
likelihood of an even deeper recession, especially if the shutdown is
extended beyond May 2.[nL5N2C227O]

 

In the report Moody’s reiterated its view that a credit upgrade back to
investment level was unlikely given the negative outlook on the ‘Ba1’
ratings.

 

“We would likely change the rating outlook to stable if the government
consolidated its finances in line with our baseline expectations, growth
picked up slowly but durably and financing risks remained limited,” it said.

 

The ratings firms said it forecast the fiscal deficit to rise to a record
8.5% of GDP in 2020 and the debt-to-GDP ratio to climb 22 percentage points
over the next four fiscal years.

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

MTN bosses to donate part of salaries towards staff relief package

JOHANNESBURG (Reuters) - Top executives at South Africa’s MTN Group have
pledged nearly a third of their salaries and fees for the next three months
to finance a 40 million rand ($2.2 million) emergency fund for staff
affected by the coronavirus crisis.

 

The donations by the telecoms group’s chairman, chief executive, chief
financial officer and other directors announced on Wednesday are part of a
broader 250 million rand relief effort to tackle the coronavirus outbreak
across its 21 markets.

 

MTN will also contribute 10 million rand to a support fund set up by
government and will invest 150 million in the Y’ello Hope Package for
customers, including discounted off-peak calls, zero-rating of certain
health, social services and educational sites, and payment concessions to
business customers.

 

The company joins others supporting relief efforts. Bosses of Vodacom and
Absa said on Sunday they would donate a third of their salaries for three
months to the government fund, joining the heads of others including
FirstRand and Nedbank in heeding requests for backing from President Cyril
Ramaphosa.

 

South Africa’s economy went into recession in the final quarter of last
year, even before the effects of the COVID-19 outbreak, and the country has
imposed some of Africa’s toughest restrictions - causing increased hardship
for many citizens.

 

A number of companies have scrapped their financial guidance and either
cancelling or suspending dividend payments but MTN said its medium-term
guidance was intact for now.

 

It will only have to re-consider its dividend policy in August, Group
President and Chief Executive Rob Shuter told Reuters. “By then we’ll have
much more clarity on how severe the crisis is, has it bounced relatively
quickly or does it look like it will be more extended,” he said by phone.

 

The telecoms industry has experienced a spike in data traffic in recent
weeks after the government imposed a five-week lockdown to the end of April.

 

MTN has seen a 30% increase in data traffic since March 27 compared with the
previous month. Its data traffic has been generally growing between 40% and
60% a year across the portfolio, Shuter said.

 

To deal with the surge, MTN has applied to the telecoms regulator for more
spectrum. “It will take us around four weeks to deploy the equipment that
we’ll need to utilise these bands if they become available,” he said.

 

($1 = 18.5946 rand)

 

 

 

 

South Africa's Vodacom to bolster network capacity during lockdown

JOHANNESBURG (Reuters) - South Africa’s Vodacom Group will spend more than
500 million rand ($27 million) over two months to increase network capacity
as traffic surges across its mobile and fixed networks during the national
lockdown.

 

The telecoms sector has experienced a spike in network data traffic in
recent weeks after the South African government imposed a five-week lockdown
to the end of April in an effort to curb the spread of the coronavirus.

 

The investment spend will help increase network resilience during the
lockdown period and help the mobile phone operator to cope with any possible
load shedding, Vodacom said in a statement on Wednesday.

 

Vodacom expects network traffic to increase even further as customers
connect for longer after it implemented price cuts of up to 40% on its
30-day data bundles and launched free access to certain websites, such as
health sites and e-school platforms.

 

“Prior to the lockdown, traffic typically peaked during certain hours of the
day, but Vodacom is now experiencing sustained peak traffic patterns for
almost the entire day,” it said.

 

To ease network congestion, large international content providers such as
Netflix, YouTube and Facebook have reduced the resolution of video content
around the world during the outbreak, it added.

 

Vodacom, which competes with MTN Group, has also applied to the ICASA
telecoms regulator for temporary additional spectrum and is waiting for its
application to be evaluated.

 

“We are monitoring all traffic patterns daily and prioritising key network
upgrades to add capacity and maintain the quality of services delivered to
our customers where required,” said Chief Technology Officer Andries
Delport.

 

“We are hopeful that we will be able to gain temporary access to spectrum to
enable additional capacity to be added in the quickest and most
cost-effective manner.”

 

ICASA this month said that the temporary release of spectrum to the sector
will last for the duration of the national state of disaster declared by
President Cyril Ramaphosa.

 

($1 = 18.4945 rand)

 

 

 

S.Africa's Woolworths offers drive-through service to help shoppers avoid
stores

JOHANNESBURG (Reuters) - South African department stores chain Woolworths is
expanding a click and collect drive-through shopping service, joining others
in the sector forced to innovate during the lockdown and help consumers get
vital supplies.

 

The service gives shoppers the option to pick up their grocery shopping
without leaving their cars and comes after food retailers were asked to
restrict the number of people in stores during a five-week lockdown which
started on March 26.

 

While grocery stores and pharmacies are still open it has become evident
that online shopping and click and collect services have become crucial in
the country’s battle against the spread of the coronavirus.

 

Woolworths’ move comes as grocery chain Pick n Pay, offers a similar
drive-through service, where customers can also email their shopping lists
to participating stores and collect their groceries later. David North,
group executive: strategy and corporate affairs said in an email it was
available at seven stores.

 

Online shopping is in its infancy in South Africa, accounting for 1.4% of
total retail spending according to Visa, but is gaining momentum as shoppers
are ordered to stay home, forcing retailers to quickly ramp up online
investments.

 

Woolworths trailed the drive-through offer at one of its stores in the
Western Cape province and will roll it out to a further 14 stores in coming
days.

 

“We have seen an unprecedented increase in demand for our online offering
during this crisis,” Head of Online and Mobile Liz Hillock said. “Since the
start of the lockdown we’ve increased our capacity by over 50% but demand
remains sky high.”

 

For the Easter period, the retailer had to open up almost 2,000 additional
delivery slots, which were taken up in a matter of hours to deal with the
spike in demand.

 

Pick n Pay said its online shopping service had also been in high demand
over the last few weeks. It has already increased its delivery capacity by
well over 2,000 slots per week.

 

Pick n Pay has also launched same-day delivery in partnership with the
BOTTLES app after the alcohol delivery service was re-engineered to deliver
groceries.

 

 

 

IMF board approves emergency support for Burkina Faso, Niger - statements

JOHANNESBURG (Reuters) - The International Monetary Fund’s (IMF) Executive
Board has approved support for Burkina Faso and Niger under its Rapid Credit
Facility to help the West African nations confront the impact of the
COVID-19 pandemic, the Fund said.

 

In statements released late on Tuesday, the IMF said the board had approved
a $115 million disbursement for Burkina Faso and another $114 million for
Niger.

 

 

 

Zambia plans to revoke Glencore's Mopani Copper Mines licences

LUSAKA (Reuters) - Zambia plans to revoke the mining licences of Glencore
subsidiary Mopani Copper Mines (MCM) because the company did not give enough
notice before suspending its mining operations due to the coronavirus crisis
and other problems.

 

In a letter dated April 14 to Mopani’s chief executive Nathan Bullock,
Mining Licensing Committee secretary Michael Chibonga said Mopani did not
give sufficient notice to the government before placing the mines on care
and maintenance.

 

Mopani also breached Zambia’s labour laws by sending its workers on forced
leave and terminating the contracts of mining services and supplies,
Chibonga said in the letter seen by Reuters.

 

“In view of the above, the Mining Licensing Committee intends to revoke the
large-scale mining licences,” the letter said, referring to Mopani’s Nkana
and Mufulira mines.

 

Glencore has been given seven days to explain why its licences should not be
revoked.

 

A Mopani spokesman told Reuters that Glencore was currently in discussions
with the government on the way forward.

 

Mopani shuttered its mining operations on April 8 but continued to process
material it has on site in its smelter and refinery until further notice,
the company said in a statement.[nL8N2BV5VI]

 

The mining company had cited the impacts of a rapid decline in the copper
price, critical disruptions to international mobility, transportation and
supply chains arising from COVID-19.

 

The shutdown is the latest disruption to the global mining sector from the
COVID-19 pandemic, which has caused lockdowns and travel restrictions around
the world.

 

 

 

 

Tunisia tourism could lose $1.4 bln, govt seeks loan guarantee to issue
bonds

TUNIS (Reuters) - Tunisia’s vital tourism sector could lose $1.4 billion and
400,000 jobs this year due to the new coronavirus pandemic, an official
document showed, as the country seeks a loan guarantee from bilateral
partners to issue sovereign bonds this year.

 

In a letter sent to the International Monetary Fund (IMF) that was reviewed
by Reuters, Tunisia’s central bank governor and finance minister said the
country’s economy would shrink by up to 4.3%, the steepest drop since
independence in 1956.

 

The IMF, which approved on Friday a $745 million loan to Tunisia to counter
the effects of the coronavirus, said a new funding programme with Tunisia
could start in the second half of this year. The size of the new programme
remains unknown.

 

The North Africa country has confirmed 747 cases of the virus and 34 deaths,
and last month imposed a lockdown set to last until at least April 19. The
outbreak is hammering its tourism sector which represents nearly 10% of
gross domestic product (GDP) and is a key source of foreign currency.

 

“We are working with partner governments on a potential guarantee for future
sovereign bond issuances in the currently difficult international context,”
the central bank governor and finance minister wrote in their letter.

 

The IMF said that the fiscal deficit in Tunisia would rise to 4.3% of GDP
this year, compared with 2.8% originally expected, due to the need for
extraordinary expenditures over this crisis.

 

As part of its 2020 budget, Tunisia plans to issue bonds worth up to 800
million euros ($877 million), but officials have not given any details or
date for the issue.

 

The IMF said also in a report that Tunisia was seeking a loan guarantee from
a G7 country.

 

The Fund added that if such a guarantee were not forthcoming, Tunisia would
need to seek alternative financing that could involve a syndicated loan from
international banks.

 

In the letter, Tunisia pledged to contain its public wage bill, reform
public companies and reduce subsidies for electricity and natural gas.

 

Prime Minister Elyes Fakhfakh said this month the government has allocated
about $1 billion to tackle the economic and social effects of the crisis.

 

($1 = 0.9122 euros)

 

 

 

Shares in South Africa's Nedbank fall over 9% as it withdraws 2020 guidance
over COVID-19

JOHANNESBURG (Reuters) - Shares in South African lender Nedbank fell over 9%
at market open on Wednesday, a day after the lender withdrew its financial
guidance for 2020 and put some key targets under review due to the COVID-19
pandemic.

 

The decline in the bank’s stock, which was trading 9.61% lower by 0717 GMT,
compared to a 5.5% fall in the Johannesburg Stock Exchange’s banks index.

 

 

 

South Africa's rand falls as economy face deep recession

JOHANNESBURG (Reuters) - South Africa’s rand eased against the dollar early
on Wednesday, as the currency continued to nurse losses a day after the
central bank unexpectedly cut lending rates and the finance minister warned
of a deep recession this year.

 

At 0625 GMT, the rand traded at 18.4770 per dollar, 0.91% weaker than it’s
previous close.

 

The South African Reserve Bank on Tuesday reduced its main lending rate by
another 100 basis points to 4.25% to address the deepening economic impact
of the coronavirus outbreak, and signalled further cuts could follow.
[nL5N2C227O]

 

Separately, Finance Minister Tito Mboweni acknowledged that there would be a
deep recession this year because of the global COVID-19 pandemic.
[nL5N2C23JG]

 

“The downside risks are likely to dominate in the rand while an end of the
corona crisis in not in sight,” analysts at Commerzbank wrote in a note.

 

The central bank projects that the economy will contract 6.1% in 2020, while
the International Monetary Fund forecasts a 5.8% dip. Africa’s most
industrialised nation was already in recession before it recorded its first
case of the new coronavirus in March.

 

The country has the most confirmed coronavirus cases in sub-Saharan Africa,
at 2,415, and that number is expected to rise significantly as more tests
are conducted in far-flung rural areas and overcrowded informal settlements.
[nL5N2C24VT]

 

In fixed income, the yield on the 10-year government bond due in 2030 was
0.5 basis points to 10.425%.

 

 

 

South Africa rules out IMF programme as central bank cuts rates

JOHANNESBURG (Reuters) - South Africa’s Finance Minister Tito Mboweni ruled
out an International Monetary Fund structural adjustment programme on
Tuesday but said the COVID-19 pandemic would cause a deep recession and
stretch weak public finances.

 

Mboweni’s comments came after the central bank unexpectedly cut its main
lending rate by 100 basis points to 4.25%, another step to try to limit the
economic fallout from the coronavirus.

 

Africa’s most industrialised nation was already in recession before it
recorded its first coronavirus case in March. Investors are growing
increasingly anxious about how the government will fund a gaping budget
deficit while time it’s also making critical healthcare interventions.

 

The country has the most confirmed coronavirus cases on the continent, at
2,415.

 

Addressing reporters on a conference call, Mboweni said cabinet ministers
would discuss more economic interventions on Wednesday.

 

On the possibility of IMF funding he said: “We are not looking for budget
support. We would be looking for the COVID-19-specific packages that we can
access, and we are talking to them about that.

 

“We are looking at programmes which would not be accompanied by any
structural adjustment programme,” he said. “We know what to do, we know what
our structural reform programme is.”

 

Asking multilateral institutions, especially the IMF, for cash is deeply
unpopular with a faction in the governing African National Congress and
trade unions the party uses to rally support before elections. The ANC and
two allies warned Mboweni earlier this month against seeking IMF assistance.

 

Mboweni said the government would revise its fiscal framework given the
effects of COVID-19 but wouldn’t say when an “emergency budget” might
happen.

 

“The budget revisions are happening almost every day, ... at some stage very
soon we will have to make a consolidated budget statement,” he said.

 

A copy of the minister’s speaking notes circulated by the National Treasury
said elements to the government’s fiscal response included re-prioritising
some expenditure towards healthcare, a plan to stabilise debt and shutting
down South African Airways.

 

The airline is under a form of bankruptcy protection and depends on
government bailouts for its survival. Mboweni declined to elaborate.

 

ECONOMIC DESTRUCTION

Ramaphosa’s government has been praised for imposing restrictions on
movement before any coronavirus deaths had been recorded. But attention is
now turning to the probable economic consequences.

 

Central bank governor Lesetja Kganyago told a news conference on Tuesday
that the bank’s decision to cut rates was unanimous, after Ramaphosa
extended a 21-day lockdown for a further two weeks on Thursday.

 

“Both the supply and demand effects of this extension reduce growth in the
shorter term as businesses stay shut for longer and households with incomes
spend less,” Kganyago said. “This will likely also increase job losses.”

 

The central bank now expects gross domestic product to contract 6.1% in
2020.

 

The rand turned weaker after the central bank rate cut and its bleak
assessment of the economy’s prospects, trading down around 1.7% at 18.3650
to the U.S. dollar at 1330 GMT.

 

Mboweni said the government had not decided whether to introduce a basic
income grant but that it had to be considered. He added that no agreement
had been reached on pay increases for public-sector employees due to take
effect this month.

 

 

 

IMF head calls for Brexit trade talk extension

The IMF has suggested the UK and the EU should "not to add to uncertainty"
from coronavirus by refusing to extend the period to negotiate a post-Brexit
trade deal.

 

Managing director Kristalina Georgieva, when asked what she thought about
the prospect of no trade deal this year and no extension to talks, told the
BBC that because of the "unprecedented uncertainty" arising from the
pandemic it would be "wise not to add more on top of it".

 

"I really hope that all policymakers everywhere would be thinking about
[reducing uncertainty]. It is tough as it is, let's not make it any
tougher," she said.

 

Asked specifically if she would advise an extension to trade talks, Ms
Georgieva said: "My advice would be to seek ways in which this element of
uncertainty is reduced in the interests of everybody, the UK, the EU, and
the whole world".

 

The IMF chief had expressed her backing for the deal struck by Boris
Johnson's team last autumn having warned that a no-deal Brexit then would
hit the UK economy by up to 5%.

 

The UK government chose to put into law a refusal to trigger provisions to
extend the Brexit implementation phase beyond the end of the year.

 

That means, without a deal, the UK and EU would trade on World Trade
Organization terms, including significant new taxes and checks on trade,
from the beginning of next year.

 

Number 10 says that remains the position.

 

Yesterday both the UK and EU announced a curtailed timetable to carry out
three negotiation rounds by video conference.

 

Ms Georgieva says she is now preoccupied with trying to find ways to help
alleviate "a global recession we have not seen in our lifetimes", arising
out of the pandemic.

 

The IMF chief, a former vice president of the European Commission, also
heaped praise on the UK Treasury and Bank of England's "early" and
well-coordinated economic response to the crisis.

 

She said: "that very strong package of measures is helping the UK, but given
the UK's sizeable role in the world economy, it's actually helping
everyone".

 

The IMF is currently hosting a virtual version of its annual meetings with
world finance ministers and bankers.--BBC

 

 

 

Coronavirus: Asian economies won't grow this year, says IMF

Economies in Asia will see zero growth this year for the first time in 60
years, the International Monetary Fund (IMF) has said.

 

Its bleak outlook for the region comes as it warns the global economy will
face the "worst recession since the Great Depression".

 

Asia's service sector in particular will struggle to rebound, it said.

 

Airlines, factories, shops and restaurants have been "hard hit" by national
lockdowns.

 

Changyong Rhee, director of the IMF's Asia and Pacific Department, warned
that governments would need to take extraordinary actions as a result.

 

"This is not a time for business as usual. Asian countries need to use all
policy instruments in their toolkits."

 

Policymakers must offer targeted support to households and firms hardest-hit
by travel bans, social distancing policies and other containment measures,
the IMF said.

 

'World faces worst decline since 1930s depression'

Clothing makers give stark virus warning

The drop in growth will be "worse than the annual growth rates throughout
the Global Financial Crisis (4.7%), or the Asian Financial Crisis (1.3%),"
the IMF said.

 

The Washington-based lender expects a 7.6% expansion in Asian economic
growth next year if containment policies succeed, but added the outlook was
"highly uncertain."

 

The main function of the IMF is to encourage global trade and to reduce
poverty.

 

Set up after World War Two, it plays an important role in lending money to
help developing nations grow their economies. The IMF has 189 member
countries and can lend up to $1tn (£797bn) in loans.

 

Virus could come back

China, which reports its own economic growth figures for the first three
months of 2020 on Friday, is expected to grow by 1.2% this year. This is a
significant fall from the 6% growth estimate the IMF forecast in January.

 

"We expect a rebound in economic activity later this year. This is because
China is emerging from the outbreak first. Nonetheless, there are clear
risks: the virus could come back and normalization could take longer," the
IMF warned.

 

The world's second-largest economy is expected to see a rebound in activity
later this year, with growth bouncing back to 9.2% next year, the IMF
predicts.

 

The IMF's bleak warning echoes other multilateral institutions like the
World Bank but goes a step further in saying that Asia could likely see zero
growth this year, for the first time in 60 years.

 

For all of us who lived through the Asian Financial Crisis, these warnings
will bring back stark memories of currency crashes, property prices tumbling
and millions out of work. Wealth that was built up in decades disappearing
in a matter of months.

 

The coronavirus economic crisis will be even worse - our generation's Great
Depression.

 

The IMF says governments must help these households and firms survive
because the impact of the coronavirus will be "severe, across the board and
unprecedented".

 

But the reality is only a few countries in the region have that sort of
financial firepower to do this. Many are grappling with huge populations,
limited financial resources, and the very real possibility of political
instability as their people get sick, hungry - or both.--BBC

 

 

 

Coronavirus: G20 delays poor nations' debt payments

Nations belonging to the G20 group of leading economies have agreed to
suspend debt payments owed to them by some of the world's poorest countries.

 

The agreement covers money that is due to be paid to G20 governments up to
the end of 2020.

 

The aim is to help countries deal with the health and economic impacts of
the coronavirus pandemic.

 

The Jubilee Debt Campaign group has described the move as a first step, but
called for much more.

 

The UK-based charity estimates that the delay will cover $12bn (£9.6bn) of
payments.

 

But it is only a delay and the campaign group understands that the payments
will instead have to be made between 2022 and 2024, along with interest
accrued in the meantime.

 

In all, 77 countries are due to benefit from the agreement.

 

The plan was provisionally agreed on Tuesday by the G7 leading developed
countries, but it was conditional on support from the wider G20.

 

Some countries, notably China and Saudi Arabia, which are in the G20 but not
the G7, are significant lenders to developing countries. The G7 wanted a
contribution to the debt payment suspension from those nations.

 

Cancellation call

The move reflects the widely shared view that low-income countries face an
especially severe challenge in coping with both the health and economic
consequences of the pandemic.

 

The G20 has also called for private lenders to take similar steps for debts
owed to them by the poorest countries. However, the G20 suggested this could
be done on a voluntary basis.

 

The Jubilee Debt Campaign has said that is not enough. It wants to see legal
changes to ensure that private creditors cannot use the courts to sue
developing countries if they miss payments.

 

That is particularly relevant to the UK and New York, because most
developing-country debt agreements use those jurisdictions' laws.

 

The campaigners also say that the payments should be cancelled outright
rather than merely deferred.

 

That was in effect done earlier this week for a more limited amount of debt
payments owed to the International Monetary Fund. It decided to use its own
resources to make the payments due in the next six months from 25 low-income
countries, mainly in Africa.--BBC

 

 

 

Eastern Europeans to be flown in to pick fruit and veg

Eastern European farm workers are being flown to the UK on charter flights
to pick fruit and vegetable crops.

 

Air Charter Service has told the BBC that the first flight will land on
Thursday in Stansted carrying 150 Romanian farm workers.

 

The firm told the BBC that the plane is the first of up to six set to
operate between mid-April and the end of June.

 

Government department Defra said it was encouraging people across the UK "to
help bring the harvest in".

 

British farmers recently warned that crops could be left to rot in the field
because of a shortage of seasonal workers from Eastern Europe. Travel
restrictions due to the coronavirus lockdown have meant most workers have
stayed at home.

 

Several UK growers have launched a recruitment drive, calling for local
workers to join the harvest to prevent millions of tonnes of fruit and
vegetables going to waste. However, concerns remain that they won't be able
to fulfil the demand on farms.

 

One of the UK's biggest fresh food producers, G's Fresh, based in
Cambridgeshire, confirmed it chartered two out of the six flights carrying
Eastern European farm workers from Romania.

 

Derek Wilkinson, managing director of G's Fresh's Sandfield Farms division,
told the BBC that the 150 workers arriving at Stansted from eastern Romania
on Thursday will be taken by bus to farms in East Anglia to pick lettuce.

 

The firm has been working closely with Public Health England on safe
transport arrangements and the group will be fully screened on arrival in
the UK. Anyone found to have a temperature will be quarantined.

 

Mr Wilkinson said his business needed 3,000 seasonal workers, with the
greatest need in May at the start of the spring onion harvest, followed by
the pea and bean crop in June.

 

He added that the company had had a good response to a recruitment campaign
aimed at local workers. So far, 500 British people have registered their
interest.

 

The Air Charter Service, a private firm, has already arranged flights for
seasonal workers in other countries. It flew 1,000 farm workers to Germany
from Bulgaria and Romania in recent weeks.

 

The workers will board in Iasi, eastern Romania, after having their
temperatures taken and filling out a health questionnaire. The BBC
understands that they will be taken from the airport by minibuses to farms
in the South East and the Midlands.

 

Seasonal worker shortage

The National Farmers' Union (NFU) said up to 70,000 fruit and vegetable
pickers were needed. It is calling for a modern-day "land army" of UK
workers.

 

NFU vice president Tom Bradshaw told the BBC: "Growers that rely on seasonal
workers to grow, pick and pack our fresh fruit, veg and flowers are
extremely concerned about the impact coronavirus restrictions may have on
their ability to recruit this critical workforce this season."

 

"In the meantime, I would encourage anyone who is interested in helping pick
for Britain this summer to contact one of the approved agricultural
recruiters."

 

A national campaign is appealing to students and those who have lost their
jobs in bars, cafes and shops to help with the harvest.

 

Several schemes have been set up to recruit new workers. They include one by
the charity Concordia, which typically helps young people arrange
experiences abroad, and another by the industry bodies British Summer Fruit
and British Apples and Pears.

 

Data released to the BBC last week by job search engines suggested that
those recruitment efforts might be paying off.

 

Totaljobs said it had seen 50,000 searches for farming jobs in one week
alone. It added that searches for terms such as "fruit picker" or "farm
worker" had surged by 338% and 107% respectively.

 

Indeed.co.uk said that there had been a huge spike in interest for fruit
picker jobs in particular. Between 18 March and 1 April, there was an
increase of more than 6,000% in searches for these roles on its website.

 

Meanwhile, Monster said the number of UK users searching for "farm" or "farm
worker" jobs had nearly tripled.

 

The charity Concordia said the response had been "phenomenal", but that a
labour shortage was still expected.

 

Stephanie Maurel, its chief executive, told the BBC's Today programme that
36,000 people had registered interest and more than 6,000 had conducted a
video interview.

 

But in the last 10 days, while almost 900 people had been offered jobs, just
112 have agreed contracts to accept employment.

 

"We've got brilliant people who are ready to work, but the reality of a job
when it comes to it hasn't really matched their circumstances, so we're just
working through that at the moment," Ms Maurel said.

 

The Department for Environment, Food and Rural Affairs (Defra) said it was
"working hard with industry to ensure farmers and growers have the support
they need" for harvesting produce.

 

"We are encouraging as many people as possible to take part in seasonal
working opportunities across the country to help bring the harvest in, and
recruitment efforts by industry are well under way," a Defra spokesperson
said.

 

The government is not involved in chartering flights of European workers to
the UK.--BBC

 

 

 

 

Oasis and Warehouse fall into administration

High Street fashion chains Oasis and Warehouse have fallen into
administration, leading to more than 200 immediate job losses.

 

Some 1,800 staff across the shops, concessions and head office will be
furloughed and receive 80% of pay.

 

The brands will continue to be sold online "short-term" while the
administrators try to sell the brand.

 

Administrator Deloitte said the coronavirus had had a "devastating effect on
the entire retail industry".

 

The owner of the High Street brands, Icelandic bank Kaupthing, had been in
talks to sell the businesses before the coronavirus crisis.

 

However, the crisis, which has seen many shops temporarily close, made the
sale untenable.

 

Rob Harding, joint administrator at Deloitte, said it had seen "significant
interest from potential buyers", but that it had not been possible to save
the business "in its current form".

 

"As administrators, we appreciate the cooperation and support from the
management, employees, customers, landlords and suppliers, whilst we
investigate options for the business. This is clearly an unprecedented and
difficult time," he added.

 

'Shocking and difficult'

Hash Ladha, the chief executive of Oasis Warehouse, said: "This is a
situation that none of us could have predicted a month ago, and comes as
shocking and difficult news for all of us.

 

"We as a management team have done everything we can to try and save the
iconic brands that we love."

 

There is expected to be interest from bidders to buy the business, a source
said on Tuesday, but with the current economic uncertainty, it is not clear
how many jobs ultimately could be saved.

 

Deloitte has furloughed 1,800 of the employees under the government
Coronavirus Job Retention Scheme, while 41 head office roles will be kept on
to help the administrators.

 

The chains were forced to shut their 92 UK stores because of the coronavirus
lockdown.

 

The group also has 437 concessions in department stores including Debenhams
and Selfridges.

 

'Final straw'

Oasis and Warehouse, along with fellow group members The Idle Man and
Bastyan Fashions, have gone into administration.

 

Operations in Ireland, Sweden and worldwide franchise partners are not in
administration.

 

High Street retailers in the UK were facing a tough environment before the
crisis, because of rising costs and changes in people's shopping habits.

 

But the temporary closure of many shops during the coronavirus pandemic has
heaped more pressure on retailers.

 

Independent retail expert Clare Bailey said retailers had already been under
strain for the last two or three years because of the uncertainty
surrounding Brexit and its effect on consumer confidence.

 

"[Coronavirus] was the final straw of all the straws that broke the camel's
already very broken back," she said.

 

Some retailers, such as Primark, have opted to cancel orders with their
suppliers.

 

Meanwhile, fashion chain New Look recently informed its suppliers that
payment for stock already sitting in its shops or distribution centre would
be delayed "indefinitely".

 

Last week, department store chain Debenhams, which employs about 22,000
staff, confirmed it had entered administration for the second time in a
year.

 

Its 142 UK stores remain closed in line with government guidance and the
firm said it would work to "reopen and trade as many stores as possible"
when restrictions end.

 

At the same time, floral fashion firm Cath Kidston filed for administration,
putting 950 jobs at risk.

 

Kathleen Brooks, founder and director of consultancy Minerva Analysis, said
that while a number of retailers had been struggling for some time, "the
difference now is there aren't necessarily buyers to buy them, so in this
environment, they may go under.

 

"They may cease to exist because no one is willing to take a punt on the
retail sector, which really seems to be at the epicentre of this coronavirus
crisis from an economic point of view."--BBC

 

 

 

BT delays removal of Huawei from EE's core network by two years

Huawei's involvement in the most sensitive parts of EE's mobile network is
to continue longer than planned.

 

In December 2018, owner BT said it would take just two years to remove
Huawei equipment from its core network.

 

But it now says "100% of core mobile traffic" will be on its new
Ericsson-built equipment by 2023, the government deadline announced in
January 2020.

 

And it blames the government for also ruling 65% of the network's periphery
must be rid of Huawei equipment too.

 

A mobile phone network's core is sometimes likened to its heart or brain.

 

It is where voice and other data is routed across various sub-networks and
computer servers to ensure it reaches its destination.

 

Meanwhile, the network's periphery, its radio access network, includes the
base stations and antennas that link individual mobile devices to the core.

 

"In order to hit these ambitious targets within the timescales laid down by
government and to align with their focus on 5G networks, it is now our
intention to prioritise migrating our 5G customers to the new Ericsson core,
followed by our 4G customers," a spokesman said.

 

Meanwhile, the United States continues to pressure officials to ban Huawei
outright and dozens of Conservative MPs went against their own party last
month in an attempt to do so.

 

Former International Trade and Defence Secretary Liam Fox MP was one of
them.

 

Reacting to the delay in removing Huawei from BT's core network, he said:
"Recent events have shown how necessary it is to disentangle China from UK
security infrastructure. Any delay will meet with great resistance."

 

 

On Tuesday, it was announced former BT chairman Sir Michael Rake had joined
Huawei's UK board.

 

He has defended Huawei in recent months, saying further restrictions could
damage the UK's relationship with China.

 

Huawei itself has said disrupting its involvement in the rollout of 5G would
do Britain "a disservice".--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.

 


 

 


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