Major International Business Headlines Brief::: 17 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::: 17 April 2020

 


 

 


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

 


 

 


 

 

ü  South Africa to allow mines to operate at 50% capacity during lockdown

ü  Portugal's BCP pursues Mozambique in latest case over $2 bln debt scandal

ü  S.Africa's Absa to finance new coal projects only under `extenuating'
circumstances

ü  South Africa's Vodacom sees 40% jump in data usage as people stay at home

ü  Sudan allows private sector, banks to import fuel - statement

ü  South Africa's rand falls as deep recession fears weigh

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  China's virus-hit economy shrinks for first time in decades

ü  EU helps protect weak firms from foreign takeovers

ü  NHS boss: 'I need gowns, can I call Burberry?'

ü  Coronavirus: America's $349bn fund for small firms runs out

ü  Coronavirus: Weekly jobless claims hit 5.2 million

 

 

 


 <mailto:info at bulls.co.zw> 

 


South Africa to allow mines to operate at 50% capacity during lockdown

JOHANNESBURG (Reuters) - South Africa will allow mines to operate at 50%
capacity during a nationwide lockdown to curb the spread of the coronavirus,
according to amended government regulations published on Thursday.

 

The government had ordered most underground mines and furnaces to be put on
care and maintenance during the lockdown, which started on March 27 and has
been extended until the end of April, apart from coal mines supplying state
power utility Eskom.

 

Miners have been lobbying the government to allow them to resume production
with controls in place to detect and contain COVID-19, the disease caused by
the new coronavirus.

 

South Africa is the world’s biggest producer of chrome ore, accounts for
around 70% of global mined platinum supply and is a major producer of other
minerals and metals.

 

The lockdown has affected global commodities markets since several local
miners have cut their production plans or declared force majeure.

 

Mines minister Gwede Mantashe told a news conference that the government
knew there were risks if some deep-level mines were closed for an extended
period.

 

“In the amendment we are identifying a risk, particularly in deep mining,
(that) if they are left alone for a long time the stability of the ground
gets tampered with,” he said.

 

South Africa is home to some of the world’s deepest mines, some of which are
nearly 4 kilometres deep.

 

The amended regulations say mines will be allowed to restart and ramp up
capacity depending on conditions including the screening of employees for
COVID-19 symptoms, the availability of quarantine facilities and transport
arrangements for workers.

 

Cooperative affairs minister Nkosazana Dlamini-Zuma said the government
planned to ease other lockdown restrictions in an “orderly, incremental
manner”.

 

“We are going to be probably every week announcing which areas are being
opened and the conditions of those openings,” she said. “Industries will
have to slowly come on stream.”

 

As of Thursday South Africa had reported 2,506 people infected with the
coronavirus and 34 deaths.

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Portugal's BCP pursues Mozambique in latest case over $2 bln debt scandal

JOHANNESBURG/LISBON (Reuters) - Banco Comercial Portugues (BCP) has taken
legal action against Mozambique, becoming the latest bank to pursue the
heavily indebted East African state, which has been embroiled in a
long-running $2 billion debt scandal.

 

A filing dated April 8 shows BCP has begun proceedings in London’s High
Court against both the Mozambique government and state firm Mozambique Asset
Management (MAM) related to “general commercial contracts and arrangements”.

 

BCP declined to comment, but said it maintains “excellent institutional
relations” with the Mozambique government. The London court filing does not
provide any further information, other than that BCP is being represented by
Enyo Law.

 

Mozambique’s Attorney Generals Office did not immediately respond to a
request for comment on Thursday.

 

MAM is one of three state-run firms set up as part of a $2 billion project
spanning tuna fishing, shipyard development and maritime security that U.S.
authorities now say was an elaborate front for a bribery and kickback
scheme.

 

BCP contributed $100 million of a $535 million syndicated loan arranged by
Russia’s VTB to MAM as part of the project, VTB court documents in a
separate case which were reviewed by Reuters showed.

 

VTB and Credit Suisse, both of which are involved in separate court cases
demanding payment from Mozambique, together arranged around $2 billion in
lending for the project in 2013 and 2014, all of which was guaranteed by the
government.

 

Mozambique, which as well as being one of the world’s poorest countries is
also one of its most indebted, has tried to challenge the validity of some
of the guarantees and arrested several people for their alleged roles in the
scandal but it remains on the hook for all of the money.

 

Its economy had been recovering from the impact of the scandal until the
global coronavirus crisis, which is expected to hit vulnerable nations with
high levels of debt hardest.

 

The country’s external and public debt to GDP ratios already stood at 99%
and 118% at the end of 2019, the World Bank says.

 

Hundreds of millions of dollars went missing and the supposed benefits of
the project never materialised, while Mozambique’s government also did not
disclose some of the loans.

 

The scandal has sparked criminal and civil lawsuits spanning three
continents.

 

It also prompted donors including the International Monetary Fund (IMF) to
cut off support when the loans came to light in 2016, triggering a currency
collapse and sovereign debt default.

 

Debt campaigners say Mozambique should not have to repay any of the loans,
which in two cases were arranged in secret and none of which were approved
by parliament.

 

 

 

 

S.Africa's Absa to finance new coal projects only under `extenuating'
circumstances

JOHANNESBURG (Reuters) - South Africa’s Absa bank published its policy on
coal financing on Thursday, joining other lenders in the opting not to rule
out funding for new coal projects altogether.

 

The decision to continue funding projects under some circumstances leaves
South Africa’s lenders - also some of the continent’s biggest banks - out of
step with peers elsewhere in the world, which have committed to end all new
coal financing.

 

“Absa will not fund new coal-fired electricity generation unless under
extenuating circumstances that will be governed under strict guidelines,” it
said in a statement.

 

Requests for such financing would, effective immediately, be subject to
enhanced due diligence criteria, including assessment against country
commitments in their national development plans and World Bank guidelines.

 

The bank added that the financing of new coal-fired industrial boilers or
furnaces and projects using metallurgical coal will also be subject to
enhanced due diligence, while standards for financing in other
climate-sensitive sectors would be added in due course.

 

 

 

South Africa's Vodacom sees 40% jump in data usage as people stay at home

JOHANNESBURG (Reuters) - South Africa’s mobile phone network operator
Vodacom said on Thursday that data traffic on its network has jumped 40%
since a nationwide lockdown began as people work from home to curb the
spread of the coronavirus.

 

It said that if necessary it would offload more capacity to the Rain
network.

 

“We are expecting this trend to continue in the short to medium term as more
customers work from home and people using technology to remain connected,
educated and entertained,” the company said in a statement.

 

South Africa on March 26 imposed a five-week lockdown to the end of April to
curb the spread of the virus.

 

($1 = 18.6636 rand)

 

 

Sudan allows private sector, banks to import fuel - statement

KHARTOUM (Reuters) - Sudan will allow private sector and banks to import
fuel for the transportation, mining and industry sectors, the transitional
cabinet said in a statement on Thursday.

 

No further details were given.

 

Sudan is suffering a severe shortage of fuel as cars and trucks stand in
long queues to get fuel. The country also has a severe shortage of foreign
currency needed for imports and fuel represents a major burden on the
budget.

 

 

 

South Africa's rand falls as deep recession fears weigh

JOHANNESBURG (Reuters) - South Africa’s rand fell early on Thursday, as
concerns of a deep economic downturn due to the COVID-19 pandemic rattled
already shaky risk appetite.

 

At 0615 GMT, the rand traded at 18.7050 per dollar, 0.16% weaker than its
previous close.

 

The International Monetary Fund said on Wednesday sub-Saharan Africa’s gross
domestic product was on track to shrink this year by 1.6% - its worst
performance on record - because of the combined effects of the coronavirus
and plummeting oil and commodities prices.

 

In South Africa, the IMF projects the economy, already in recession, will
shrink 5.8%.

 

That grim outlook added pressure to the rand, which was already reeling
after the South African Reserve Bank slashed lending rates to their lowest
ever. That weakened its attraction as a “carry trade” currency, which
depends on repo rates remaining high.

 

The rand has dropped around 33% since the beginning of the year.

 

In fixed income, the yield on the 10-year government bond due in 2030 was up
a single basis point at 10.600%.

 

 

 

 

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.

 

 

 

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.

 

 

 

China's virus-hit economy shrinks for first time in decades

China's economy shrank for the first time in decades in the first quarter of
the year, as the virus forced factories and businesses to close.

 

The world's second biggest economy contracted 6.8% according to official
data released on Friday.

 

The financial toll the coronavirus is having on the Chinese economy will be
a huge concern to other countries.

 

China is an economic powerhouse as a major consumer and producer of goods
and services.

 

This is the first time China has seen its economy shrink in the first three
months of the year since it started recording quarterly figures in 1992.

 

"The GDP contraction in January-March will translate into permanent income
losses, reflected in bankruptcies across small companies and job losses,"
said Yue Su at the Economist Intelligence Unit.

 

Can we trust China claims of virus success?

Last year, China saw healthy economic growth of 6.4% in the first quarter, a
period when it was locked in a trade war with the US.

 

In the last two decades, China has seen average economic growth of around 9%
a year, although experts have regularly questioned the accuracy of its
economic data.

 

Its economy had ground to a halt during the first three months of the year
as it introduced large-scale shutdowns and quarantines to prevent the virus
spread in late January.

 

As a result, economists had expected bleak figures, but the official data
comes in slightly worse than expected.

 

Among other key figures released in Friday's report:

 

Factory output was down 1.1% for March as China slowly starts manufacturing
again.

Retail sales plummeted 15.8% last month as many of shoppers stayed at home.

Unemployment hit 5.9% in March, slightly better than February's all-time
high of 6.2%.

Analysis: A 6% expansion wiped out

 

 

The huge decline shows the profound impact that the virus outbreak, and the
government's draconian reaction to it, had on the world's second largest
economy. It wipes out the 6% expansion in China's economy recorded in the
last set of figures at the end of last year.

 

Beijing has signalled a significant economic stimulus is on the way as it
tries to stabilise its economy and recover. Earlier this week the official
mouthpiece of the ruling Communist Party, the People's Daily, reported it
would "expand domestic demand".

 

But the slowdown in the rest of the global economy presents a significant
problem as exports still play a major role in China's economy. If it comes
this will not be a quick recovery.

 

On Thursday the International Monetary Fund forecast China's economy would
avoid a recession but grow by just 1.2% this year. Job figures released
recently showed the official government unemployment figure had risen
sharply, with the number working in companies linked to export trade falling
the most.

 

China has unveiled a range of financial support measures to cushion the
impact of the slowdown, but not on the same scale as other major economies.

 

"We don't expect large stimulus, given that that remains unpopular in
Beijing. Instead, we think policymakers will accept low growth this year,
given the prospects for a better 2021," said Louis Kuijs, an analyst with
Oxford Economics.

 

Since March, China has slowly started letting factories resume production
and letting businesses reopen, but this is a gradual process to return to
pre-lockdown levels.

 

Media captionWhy does China’s economy matter to you?

China relies heavily on its factories and manufacturing plants for economic
growth, and has been dubbed "the world's factory".

 

Stock markets in the region showed mixed reaction to the Chinese economic
data, with China's benchmark Shanghai Composite index up 0.9%.

 

Japan's Nikkei 225 jumped 2.5% on Friday, although this was largely due to
gains on Wall Street after US President Donald Trump unveiled plans to ease
lockdowns.--BBC

 

 

 

EU helps protect weak firms from foreign takeovers

The EU plans to help block foreign takeovers of European companies
struggling with the virus downturn.

 

It wants to allow governments to invest in weak companies, which could
include some form of ownership.

 

While it called them "measures of last resort", the European Commission says
it is consulting member states.

 

A focus for the regulator is to counter unfair competition from state-owned
firms, which are the backbone of economies such as China's.

 

It is now looking at further protection for businesses based in the EU, in
light of the significant financial impact coronavirus lockdowns are having
on them.

 

"This in principle falls outside the scope of EU state aid control and can
in particular be important for interventions by member states to prevent
hostile takeovers of strategic companies by foreign purchasers," a spokesman
for the European Commission said.

 

"As in any crisis, the industrial and corporate assets are under stress. The
resilience of our industries, their capacity to continue to respond to the
needs of EU citizens and the preservation of strategic assets and
technology, is key," the spokesman added.

 

The EU is worried that foreign investors may try to acquire European
companies "in order to take control of key technologies, infrastructure or
expertise". It says this "raises concerns as regards security".

 

Last month, the European Commission issued guidelines to ensure a strong
EU-wide approach to foreign investment screening "in a time of public health
crisis and related economic vulnerability".

 

European companies have long been in the sights of Chinese rivals, including
major state-owned enterprises, and the sharp economic downturn, and
subsequent steep falls in share prices, could make them more vulnerable to
overseas bidders.

 

"The Commission is well aware of concerns that operations involving
companies benefiting from third-country subsidies or state support may have
distortive effects in the European internal market," it said.

 

New foreign direct investment screening regulations were adopted last March
and can be fully applied from October 2020.

 

The UK formally left the EU on 31 January, but is currently in a transition
period until the end of the year. During this period, the UK will continue
to follow all of the EU's rules and its trading relationship will remain the
same.--BBC

 

 

 

NHS boss: 'I need gowns, can I call Burberry?'

The director of a large NHS trust has contacted the BBC asking for the phone
numbers of Burberry and Barbour because he does not have enough gowns for
his staff working on coronavirus wards.

 

He said his trust has "less than 24 hours supply and [with the] weekend
coming up" he was hugely concerned.

 

The BBC is not disclosing his name or the trust he runs.

 

The Department of Health said it was working "around the clock" to provide
protective equipment where needed.

 

For a number of weeks, Prime Minister Boris Johnson and government ministers
have said during press briefings and interviews that Burberry will begin
making personal protective equipment (PPE) on behalf of the government as
one of the answers to a critical shortage.

 

Burberry said at the end of March it would repurpose its trenchcoat factory
in Castleford, West Yorkshire, to make non-surgical gowns and masks for
hospital patients.

 

The government has been criticised for not providing enough PPE for NHS and
other care workers to protect them while looking after patients with the
virus.

 

Latest statistics revealed the UK recorded another 861 coronavirus-related
deaths in hospital, taking the total to 13,729. The overall figure does not
include hundreds more who have died in residential and nursing homes.

 

On Thursday, as Foreign Secretary Dominic Raab announced the extension of
lockdown restrictions for "at least" another three weeks, he said there
remained "issues with the virus spreading in some hospitals and in care
homes".

 

Among five conditions he said must be met before curbs on daily life could
be lifted were making sure the NHS could cope and ensuring PPE supplies
could meet demand.

 

Last week, Health Secretary Matt Hancock said there was "enough PPE to go
around, but only if it's used in line with our guidance", adding there was a
"huge task" to make sure those who need it get it.

 

However, on Monday, Chris Hopson, from NHS Providers in England which
represents hospital trusts, said it was "all really hand-to-mouth in terms
of gown delivery" and called for a "more sustainable" supply.

 

And on Wednesday the NHS Trust director told the BBC: "The official line
that we don't have a shortage of PPE is fantasy."

 

A gown is a piece of PPE used to protect the body of those who might come
into contact with coronavirus.

 

It should be made of water-resistant material and have long sleeves. If the
gown is not water resistant, a waterproof apron is needed underneath to
protect the wearer from droplets containing the virus.

 

The shortage of non-surgical gowns is a critical problem facing the NHS as
it struggles to secure enough kit for frontline staff.

 

The situation at this particular trust is so critical that single use PPE is
being reused.

 

A leaked Public Health England document this week advised health workers to
reuse protective gowns and masks only as a "last resort".

 

The boss added "Trusts are already decontaminating PPE for reuse. I have
several examples".

 

Media captionFor a fourth week, people clap to show appreciation for health
professionals and other key workers

In messages and phone calls that followed, the NHS boss said that they were
investigating using hydrogen peroxide, normally used as bleach, to sterilise
PPE, including masks.

 

Supply problems

As the world fights coronavirus, the demand for gowns is unprecedented and
at levels never seen before.

 

Almost all of the UK's supply of gowns used by the NHS is made in China and
the Far East.

 

These decisions have been driven by cost, as all sectors seek the cheapest
prices.

 

But as every country in the world fights for finite supplies, a UK solution
has been sought.

 

The government and management consultancy Deloitte approached well known UK
garment brands asking if they can help make PPE.

 

They also requested that UK manufacturers complete a survey to share what
they could make.

 

Earlier this week, Barbour began distributing gowns from its factory in the
north east of England.

 

Burberry is still making the final adjustments to its factory and production
is expected to start next week.

 

Getting a supply chain formalised using UK factories has been difficult.

 

UK garment factories approached by the BBC have said the government doesn't
fully understand what is possible in the UK, and which firms could produce
what. This lack of understanding has caused production delays.

 

Delays around certification of gowns for use is also slowing down the
manufacturing process.

 

Some factories say it could be another two weeks before the necessary
paperwork is signed off and they can manufacture the gowns.

 

On Wednesday afternoon the NHS boss offered to write a letter to a factory,
issuing a certificate that would absolve the factory of liability if
anything happened with the use of an uncertified gown, such was his
desperation for equipment. However, the factory felt this was too dangerous.

 

This comes as factories around the UK are empty. Machinists and pattern
cutters have been sent home and furloughed.

 

To add to the frustration of factory bosses, they say they're getting
upsetting calls from NHS hospitals and workers begging for gowns.

 

'Working around the clock'

A Department for Health and Social Care spokesman said: "Adequate supply of
protective equipment is an international issue facing many countries during
this global pandemic."

 

Nearly one billion pieces of protective equipment had been delivered to the
frontline so far, the spokesman said.

 

"There is also a 24 hour NHS-run helpline where NHS and social care workers
can call to report supply disruption.

 

"We continue to work around the clock to give the NHS and the wider social
care sector the equipment they need and it is crucial the guidance for
protective equipment is followed closely," the spokesman added.--BBC

 

 

 

Coronavirus: America's $349bn fund for small firms runs out

America approved an unprecedented $349bn in relief last month aimed at
helping small firms through the coronavirus lockdowns. On Thursday, less
than two weeks after the programme's start, the money ran out, overwhelmed
by demand.

 

The White House has requested an extra $250bn, but the relief has stalled as
Democrats and Republicans in Congress fight over how to target the funds.

 

Now millions of business owners across the country are wondering how they
will continue.

 

"What I fear the most is not being able to survive," says Agatha Kulaga,
co-founder of New York bakery Ovenly.

 

The business, which started in her kitchen in 2010, has grown into four
shops, 67 employees and some 150 wholesale clients, including major grocers
like Whole Foods. Its fifth location was supposed to open at the city's
biggest airport this month.

 

But in March Ms Kulaga shut her doors and laid off her staff, responding to
health concerns and the drop in sales as the state restricted activity to
try to slow the spread of the virus.

 

She has since applied to about 20 different aid programmes, including the
new federal programme, which offers loans that do not need to be repaid if
firms use 75% of the money for paying staff. Companies can re-hire former
employees who have been laid off to qualify.

 

"We had serious momentum and when this happened, it's obviously
devastating," she said.

 

'Losing faith'

As many as a quarter of small businesses fear they will not be able to
survive more than two months of shutdown, according to surveys by the
Chamber of Commerce and other organisations.

 

Such failures would dramatically alter the economic landscape in America,
where 30 million small businesses employ almost half the country's
workforce.

 

Main Street America, which represents commercial districts with about
300,000 small firms, found that 7.5 million firms employing more than 35
million people are at risk of failure in the next five months.

 

"Small businesses are really losing faith that the government is going to be
able to support them through this crisis," says Patrice Frey, the
organisation's president. "That translates into massive job losses and
ultimately undermines the strength of the American economy on the other side
of this."

 

Rescue effort

Washington, which approved the $349bn in small business loans last month as
part of a bigger $2tn relief bill, is well aware it has a crisis on its
hands.

 

Even before running out of money, the programme - called the Paycheck
Protection Program because the loans don't need to be repaid if firms use
them primarily to keep workers on staff - had faced problems, including
delays at some of the banks through which the government is distributing the
money and criticism that the money was not reaching the smallest, most needy
firms.

 

Delays have also beset a separate low-cost loan scheme offered directly by
the Small Business Administration through an expansion of a programme
created to address disasters like hurricanes.

 

The Federal Reserve has also announced its own "Main Street" loan programme.
But the central bank's plan, while unprecedented, is expected to reach more
mid-size firms, not the small "mom-and-pop" shops experts say face such
risk.

 

The government and many banks say some problems should be expected given the
speed of roll-out. More than 1.6 million loan applications were approved for
more than $339bn, the Small Business Administration said.

 

In the UK by comparison, banks and other financial institutions had loaned a
total of about £1.1bn through the government scheme as of Wednesday.

 

"I think it's really kind of exceptional that the government could move that
quickly and that effectively," JP Morgan Chase boss Jamie Dimon told
reporters this week, when his bank announced it had disbursed more than $9bn
of roughly $37bn requested by some 300,000 applicants.

 

Ms Frey says those defences don't "change the reality on the ground, which
is these businesses are on the edge and unless they receive more relief
immediately and with fewer hoops to jump through, these businesses are
simply going to dissolve."

 

'The threat is real'

New Yorker Fonda Sara, who has run the Zuzu's Petals flower shop in Brooklyn
for more than 40 years, is one of the people still waiting for a response
from her bank about the pay cheque protection programme.

 

But even if she is ultimately approved for funds to cover wages for herself
and another full-time staffer, Ms Sara says the help will do little to
offset her losses as rent, utilities and other bills pile up while she
misses out on spring - typically her busiest season.

 

"No matter what financial aid I get from the city and the federal
government, it will never be enough to sustain me or restore me," she says.

 

"The only thing that will help me is if when I reopen my sales return to the
state they were in before the shutdown and honestly no one knows if that
will happen."

 

Ms Kulaga, who is waiting for funds after being approved for a $410,000 pay
cheque protection loan, said the rules for how the money should be spent -
quickly and primarily on wages - means that it will be of limited use to
companies like hers, which have already cut workers and don't know when they
will be able to re-open.

 

The 40-year-old says she has considered re-hiring so that her staff receive
the benefits, but "if we are not re-opened in eight weeks they would have to
be laid off again and have to reapply for unemployment benefits." Meanwhile,
the company's other expenses are mounting.

 

While laying off staff was "a difficult decision, it was one... that was
required in order to preserve our cash... so that we can actually survive
while we are closed and also be prepared to re-open when the time comes,"
she says.

 

"I hope that we can reopen and I do believe that we can, but, at the same
time the threat is real," she says.--BBC

 

 

 

Coronavirus: Weekly jobless claims hit 5.2 million

Another 5.2 million Americans registered for unemployment benefits last week
as businesses remain shut amid the coronavirus lockdown.

 

The new Department of Labor filings bring the number of jobless claims over
the last four weeks to more than 20 million.

 

That amounts to roughly as many jobs as employers had added over the
previous decade.

 

The economic crisis comes as the number of US virus cases exceeds 629,000.

 

The surging joblessness is a stark reversal for the world's biggest economy
where the unemployment rate had been hovering around 3.5%. Economists now
expect that rate to have hit double digits.

 

While the 5.2 million new claims in the week ended 11 April were down from
6.6 million the previous week, the numbers still eclipse prior records.

 

Many economists warn that elevated numbers will linger, with Goldman Sachs
researchers expecting some 37 million claims by the end of May.

 

"Records are being broken left and right with respect to the depth and
breadth of the current downturn," said Mark Hamrick, senior economic analyst
at Bankrate.com.

 

"With no immediate end in sight to efforts aimed at mitigating the virus'
spread and impact, it is impossible to see a near-term upturn in employment
prospects."

 

'The phone rings and rings'

Electronics chain Best Buy this week said it would furlough more than 50,000
employees, while Royal Caribbean Cruises announced it would cut or suspend
about a quarter of its American workforce.

 

The moves come as retail sales plunged by a record 8.7%, while manufacturing
output dropped by the most in more than 74 years.

 

The US has expanded its unemployment programme, making disbursements bigger
and more people - including the self-employed - eligible. But requests to
participate have overwhelmed state offices, which process the applications.

 

Glenn Hawker, co-owner of a now-closed hair salon in Virginia, said he had
applied for the funds as an independent contractor at least twice and been
rejected. When he called to figure out why, he couldn't reach anyone.

 

"The phone rings and rings and rings," the 49-year-old said.

 

Mr Hawker had also sought assistance through a loan programme for small
businesses, but he has not received any.

 

On Thursday, the Small Business Administration, which is in charge of
administering that $349bn programme, announced it had run out of money.

 

'Worse and worse'

Restaurant owner George Constantinou last month laid off most of the 130
people who work at the four businesses he owns in New York and New Jersey,
retaining a core group to continue doing take-out and delivery.

 

He said he expected the move would allow the business - which saw sales drop
some 80% in the early weeks - to conserve money and workers to receive at
least some pay until he could bring them back.

 

"I honestly thought this was a two-week thing," he said. "Then it just got
worse and worse and worse."

 

Amid delays to claims processing, some staff have sought his help in
applying for food stamps. If the economic downturn is prolonged, re-hiring
everyone may not make sense, even after he can fully reopen.

 

"At this point, we have to take it almost day by day to figure it out," he
said.

 

US President Donald Trump is expected to issue "new guidelines" for
reopening the economy in parts of the country where experts believe the rate
of infection is under control.

 

"There has to be a balance," he said on Wednesday. "We have to get back to
work."--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/20200417/e6484c3a/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/20200417/e6484c3a/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/20200417/e6484c3a/attachment-0006.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 33732 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200417/e6484c3a/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 31402 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200417/e6484c3a/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/20200417/e6484c3a/attachment-0009.jpg>