Major International Business Headlines Brief::: 26 February 2020

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Major International Business Headlines Brief::: 26 February 2020

 


 

 


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ü  South Africa's Shoprite and Equities Property fund form $273 mln JV

ü  MTN eSwatini appoints Wandile Mtshali as units CEO

ü  South Africa's rand recovers as budget risk draws nearer

ü  South Africa's Libstar full-year earnings expected to rise

ü  Egypt to launch gold exploration tender on March 15 -minister

ü  Nigeria posts highest quarterly GDP growth in Q4 since recession

ü  Rwanda's finance minister seeks to boost spending by 4.8%

ü  Kenya pledges to follow through on sugar factory privatisations

ü  Aspen stock rises almost 6% after H1 results forecast ahead of estimates

ü  S.Africa's Sasol slides to 14-year low as U.S. project hurts profits

ü  Financial markets drop again on coronavirus fears

ü  Disney boss Bob Iger steps down as chief executive

ü  Coronavirus: Gulf states suspend more flights

ü  UK would be 'insane' to let in chlorinated chicken, farmers say

ü  Manchester United's revenue falls by nearly 12%

ü  Tesco bakeries overhaul puts 1,800 jobs at risk

 

 

 

 

 

 

 

 


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South Africa's Shoprite and Equities Property fund form $273 mln JV

JOHANNESBURG (Reuters) - South Africa’s Shoprite Holdings will transfer its
distribution centres and undeveloped land valued at 2 billion rand ($133
million) to a new joint venture (JV) it is creating with Equities Property
Fund, the supermarket chain said on Tuesday.

 

Shoprite, which has more than 2,800 stores across Africa, has said it wants
to divest some real estate to help its balance sheet.

 

Shoprite Checkers will contribute a portfolio of distribution centres and
associated undeveloped land in Brackenfell in the Western Cape and Centurion
in Gauteng into the joint venture.

 

Equities Property will inject cash of 2.1 billion rand in exchange for a
50.1% equity stake in the joint venture, the retailer said.

 

Thereafter, the joint venture will acquire Shoprite’s Cilmor distribution
centre in Cape Town and associated undeveloped land for a cash amount of 1.2
billion rand.

 

“The joint venture company will manage the portfolio and it will serve as a
platform for the future development of the undeveloped land situated at
Cilmor and Centurion and for possible future property acquisition and
development opportunities,” Shoprite said.

 

AFRICA REVIEW

Separately, the continent’s top supermarket is reviewing its long-term
options in Africa, including an “alternate operating model”, group Chief
Executive Officer Pieter Engelbrecht told analysts at the retailer’s
half-year results.

 

“What we mean by that is yes we’re looking at a possible joint venture, a
franchise model, different formats. We are reviewing all of the options,” he
said.

 

Immediate steps Shoprite has taken include rent reductions in 17
supermarkets, with negotiations of 16 more underway. It has also switched
some of the rent and borrowings from U.S. dollars to local currency.

 

It is also assessing the viability of unprofitable stores and curbing
capital allocation for new stores and developments, Engelbrecht added.

 

Shoprite will therefore only have opened 13 supermarkets for the full year
ended June compared to a target of 17.

 

“We’re still committed to the continent but not at all cost. We’re fairly
confident that these immediate operational actions will lead to an improved
financial performance in this segment (non-South Africa),” Engelbrecht said.

 

Shoprite disappointed the market in early 2019 when it announced its first
drop in first-half earnings in a decade due to currency devaluations, supply
issues and low consumer spending in Angola, Nigeria and Zambia.

 

Those devaluations continued in the 26 weeks ended Dec. 29, hitting diluted
headline earnings per share (HEPS), which fell by 2.6% to 372.4 cents in the
period from 382.4 cents a year earlier.

 

Sales in rand terms in the group’s international operations, comprising 14
African countries, fell by 3.1%. In constant currency terms, sales rose
4.8%.

 

The retailer’s core business, Supermarkets South Africa, saw an acceleration
in sales, with overall growth of 9.8% versus 7.4% in the second half.

 

($1 = 14.9945 rand)

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

MTN eSwatini appoints Wandile Mtshali as units CEO

MBABANE (Reuters) - MTN eSwatini, the local unit of telecoms group MTN, on
Tuesday appointed Wandile Mtshali Chief Executive Officer after his
predecessor was appointed prime minister of the southern African kingdom.

 

Mtshali, who holds a Bachelor’s degree from the University of Botswana in
electronics and computer engineering, will take the helm on Monday, the
company said.

 

Former CEO Ambrose Dlamini was appointed as the prime minister in 2018 by
eSwatini’s King Mswati.

 

Mswati is Africa’s last absolute monarch and has tight political control
over the land-locked nation formerly known as Swaziland. The king chooses
the prime minister and government.

 

Mtshali worked for MTN eSwatini for 17 years before being appointed
technical officer in South Sudan and Guinea Bissau. He joined MTN’s
competitor Swazi Mobile in 2017 as chief technical officer.

 

Mtshali replaces Sibusiso Nhleko who was acting CEO since Dlamini’s
departure.

 

 

 

South Africa's rand recovers as budget risk draws nearer

JOHANNESBURG (Reuters) - South Africa’s rand traded firmer early on Tuesday,
recovering alongside fellow emerging markets currencies flattened in the
previous session as investors worried about the rapid spread of the
coronavirus outside of China.

 

At 0900 GMT the rand was 0.75% firmer at 15.0530 per dollar. It had earlier
tumbled to a four-month low of 15.1900 in a global risk sell-off worsened by
growing bets that Wednesday’s budget may not be enough to prevent a
downgrade of South Africa’s credit rating to “junk” by Moody’s.

 

“It was not surprising to see the rand under pressure at the start of the
week, especially as Wednesday’s risk event draws closer,” economists at ETM
Analytics said in a note.

 

“South Africa’s idiosyncratic risks have weighed heavily on investor
sentiment. In particular debilitating nationwide power cuts, an
unsustainable debt trajectory and a lack of evidence that there’s political
will to implement the economic reforms.”

 

A Reuters poll this month forecast 2020 GDP growth of 0.8%, while a survey
last week suggested the Treasury will raise taxes in the Feb. 26 budget to
increase revenues and ward off the loss of South Africa’s last
investment-grade credit rating.[nL8N2AL29L]

 

Traders said the recovery in the rand and other emerging market currencies
was due to profit-taking after the U.S. dollar marched higher as investors
rushed for safe-havens on Monday, plus positioning for further falls after
the budget speech.

 

Stocks, which recorded their largest one-day fall in more than a decade on
Monday, opened higher, with the Top-40 index up 1.3% to 49,942 points.

 

Supermarket chain Shoprite missed half-year earnings forecasts, with diluted
headline earnings per share (HEPS) down 2.6% to 372.4 cents in the 26 weeks
ended Dec. 29, as currency devaluations in the rest of Africa and store
closures in Nigeria weighed. [nL5N2AP0LB]

 

Bonds opened firmer, with the yield on the benchmark 2026 government issue
down 2 basis points to 8.815%.

 

 

 

South Africa's Libstar full-year earnings expected to rise

JOHANNESBURG (Reuters) - South African food producer Libstar Holdings Ltd on
Tuesday flagged annual earnings up as much as 12%, boosted by improved
profits in each of the group’s product categories.

 

Libstar, whose products include baking aids, snacks, confectionery and
perishables, said normalised headline earnings per share (HEPS) including
the impact of first-time adoption of IFRS 16 and IFRS 9 for the year ended
Dec. 31, 2019 is expected to be between 79.9to 83.7cents per share, or 7% to
12% higher, compared with 74.6 cents in the year ago period.

 

HEPS is the main profit gauge in South Africa and strips out certain one-off
items.

 

 

 

Egypt to launch gold exploration tender on March 15 -minister

CAIRO (Reuters) - Egypt plans to launch an international exploration round
for gold and other minerals from March 15 running until July 15, the
petroleum minister said on Tuesday.

 

The country’s Eastern desert is believed to be highly mineral-rich as it
forms part of an area known as the Arabian-Nubian shield, a geological
feature that stretches from Saudi Arabia and Yemen in the east to Sudan and
Egypt in the west.

 

Investors will be bidding on blocks which will be awarded to them within
four months of the bid round being launched, an official at the mineral
resources authority said on Sunday.

 

Egypt in January issued new regulations that appeared to eliminate the need
for mining companies to form joint ventures with the government and to limit
state royalties to a maximum of 20%.

 

 

Nigeria posts highest quarterly GDP growth in Q4 since recession

ABUJA (Reuters) - Nigeria’s economic growth rose to an annual rate of 2.55%
in the three months to the end of December, its highest quarterly growth
since a 2016 recession, the statistics office said on Monday.

 

Africa’s largest economy grew 2.27% in 2019 from 1.91% the previous year.
The country has struggled to shake off the effects of a 2016 recession that
ended the following year, and has been grappling with low growth since.

 

Growth in 2019 was supported by a favourable oil price and higher crude
production. The oil sector, which accounts for around two-thirds of
government revenue and 90% of foreign exchange, grew 6.36% in Q4.

 

Crude production hovered at around 2 million barrels per day throughout the
year, the statistics office said.

 

The non-oil sector, which the government is trying to make the main growth
sector, rose 2.26% in Q4.

 

President Muhammadu Buhari, who began a second four-year term in May, has
pledged to revive the economy and diversify it away from over-dependence on
oil. But investors have been waiting for policy signals that could lift
growth.

 

“Today’s figures still doesn’t show any sign that President Buhari is
succeeding in rebalancing Nigeria’s economy,” said John Ashbourne, Africa
economist at Capital Economics.

 

“The pickup in growth was caused by an easing in the contraction of
wholesale and retail trade and a boom in the banking sector.”

 

Last week the IMF cut its 2020 growth forecast for Nigeria to 2% from 2.5%,
citing lower demand for oil due to fears that the coronavirus outbreak in
China will cause a slowdown.

 

The Fund said Nigeria was still recovering, but inflation was rising which,
along with external shocks, would weaken its foreign exchange reserves due
to its deteriorating terms of trade and capital outflows.

 

Annual inflation in Nigeria rose for the fifth straight month to 12.13% in
January, its highest in nearly two years.

 

 

 

Rwanda's finance minister seeks to boost spending by 4.8%

KIGALI (Reuters) - Rwanda’s Finance Minister Uzziel Ndagijimana on Monday
asked parliament to raise the government’s spending for the financial year
to June by 4.8%.

 

The East African economy, which is mainly dependent on farming and services
like hospitality, grew by an average of 10.9% in the first nine months of
last year, Ndagijimana said.

 

The government’s motion is almost certain to pass through parliament where
President Paul Kagame’s ruling party has full control.

 

The additional expenditure will increase the government’s spending to 3.02
trillion francs ($3.29 billion), with the extra cash funding the hiring of
new doctors and other government programs, the minister said.

 

He said the extra cash will be raised through tax revenues and other non-tax
revenues, without providing more details.

 

($1 = 919.2600 Rwandan francs)

 

 

 

Kenya pledges to follow through on sugar factory privatisations

NAIROBI (Reuters) - Kenya will privatise sugar factories and impose an
additional tax as it tries to revive the industry, President Uhuru
Kenyatta’s office said on Monday.

 

Industry experts count the high cost of production and poorly funded
government factories with aging machinery among the problems facing the East
African nation’s sugar industry.

 

The government will act on all of the recommendations made by a task force
formed to focus on reviving the sector, Kenyatta’s office said in a
statement.

 

The task force recommended reintroducing a levy.

 

“The sugar levy will be charged on consumers so as to raise the revenue
needed to assist farmers to develop their sugarcane crop,” Kenyatta’s office
said, without providing details on the levy.

 

The task force also recommended changes to sugar import rules, it said,
without elaborating.

 

The government’s latest attempt to privatise was in 2015, when it announced
plans to sell shares in five companies it owns. Two of these are in
receivership.

 

The effort failed, after a court case challenged the manner in which the
government’s Privatization Commission planned to do it, prompting the
commission to restart the process and involve more parties such as regional
county governments.

 

The 2017 formation of the task force that handed its report to Kenyatta on
Monday was partly driven by 2015’s failed privatisation.

 

Kenya produced 485,498 tonnes of sugar in 2018, up from 377,126 tonnes a
year earlier, data from the Kenya National Bureau of Statistics show.

 

The country consumes 870,000 tonnes of sugar annually.

 

It relies on duty-free imports from the Common Market for Eastern and
Southern Africa (COMESA) trade bloc to cover its annual deficit.

 

 

 

Aspen stock rises almost 6% after H1 results forecast ahead of estimates

JOHANNESBURG (Reuters) - Aspen Pharmacare Holdings Ltd’s shares surged 5.7%
on Monday, putting the South African drugmaker on track for its biggest
one-day gain in more than two-months after it said its half-year results
would likely beat estimates.

 

The nearly 170-year-old drug maker, with a presence in about 56 countries,
said on Friday it expects to report half-year results slightly above its
forecast as its manufacturing unit benefited from the restart of heparin
sales to third party customers. [nL4N2AL3NK]

 

At 0856 GMT, shares in Aspen were 3.11% firmer at 110.88 rand, having risen
as high as 113.72 rand, and on course for their biggest one-day gain since
December 17.

 

The market also cheered Aspen for lowering its debt to about 38 billion rand
($2.53 billion) by Dec.31. The firm said its leverage ratio, which assesses
the ability of a firm to meet its financial obligations, is likely to end
between 3.50x and 3.60x against a covenant threshold of 4.0x, the firm
added.

 

Aspen said assuming the net proceeds from the sale of its Japanese business
to Swiss drugmaker Novartis were received on Dec.31, the leverage ratio
would have been between 3.20x and 3.30x.

 

Investors have been concerned about Aspen’s debt in the last two years after
levels moved close to breaching debt covenants.

 

In September it said it was aiming for a leverage ratio of less than 3.0x in
the medium term as it bets on positive free cash flows and a substantial
decline in planned capital expenditure after the 2020 financial year.
[nL5N2624OR]

 

“The forced sale of the formula business and the Japanese business seems to
have saved Aspen from a rights issue,” Vestact Portfolio Manager, Byron
Lotter said in a note.

 

“I expect the share price to react positively to this news. At these levels,
it seems to be a good potential turn around story.”

 

($1 = 14.9945 rand)

 

 

 

S.Africa's Sasol slides to 14-year low as U.S. project hurts profits

JOHANNESBURG (Reuters) - South African petrochemicals group Sasol’s
half-year profits plunged, sending shares to a 14-year low on Monday, due to
problems at its Lake Charles Chemicals project and softer chemical and Brent
crude oil prices.

 

The U.S. ethane cracker project, known as LCCP, has been hit by delays and
is costing billions of dollars more than initial estimates. Sasol’s joint
chief executives resigned late last year in a bid to restore confidence in
the firm.

 

Shares in Sasol slid to their lowest since 2006 at 193.99, and were down
8.6% to 195.78 rand by 1142 GMT, after the firm posted headline earnings per
share of 5.94 rand ($0.40), down from 23.25 rand a year earlier.

 

“The financial results were impacted mostly by a weak macroeconomic
environment, which resulted in lower margins, and the LCCP being in a
ramp-up phase,” Sasol said.

 

The world’s top manufacturer of motor fuel from coal did not declare an
interim dividend, and chief financial officer Paul Victor said the company
was unlikely to pay a final dividend at the end of the financial year.

 

“In the current phase we find ourselves, we think the probability of even
paying a final dividend can be low,” Victor said, adding that the board was
yet to make a final decision.

 

LCCP HITS EARNINGS

Adjusted earnings before interest, tax, depreciation and amortization
(EBITDA) fell 27% to 19.6 billion rand, with LCCP knocking 1.1 billion rand
off the total, and depreciation charges reaching a further 1.7 billion rand.

 

The cost of the Louisiana plant, which converts natural gas into plastics
ingredient ethylene, is expected to reach as much as $12.8 billion, up from
a 2014 forecast of $8.9 billion.

 

Its development has been hit by poor weather conditions, delays and
oversights including duplicate credits and procurement back-charges.

 

Sasol said revenue from LCCP did not yet match its project costs. However,
the company expects the facility to generate a profit in the second half of
the year.

 

The group said LCCP’s overall project completion was at 99% at the end of
December.

 

However, investigations into an explosion and fire at one of the units at
the LCCP plant in January revealed that a piping support structure within
the emergency vent system had failed during commissioning, causing a pipe to
dislodge.

 

Sasol said while no major equipment had been damaged, and the incident was
isolated, the unit would not be operating beneficially until the second half
of 2020.

 

Its gearing ratio increased from 56.3% in June last year to 64.5% at the end
of the interim period. The group, which began a review of its assets in
2017, said it would not rely on disposals to reduce debt.

 

Chief Executive Fleetwood Grobler, who took the helm in November, said Sasol
would keep its mining business despite speculation it would dispose of its
coal assets as climate change pressures increase.

 

“There was some speculation about the future of our mining business, but I
want to clarify mining is a key driver to the integrated coal-to-liquid
value chain and we intend to keep it,” Grobler said.

 

($1 = 14.9945 rand)

 

 

 

Financial markets drop again on coronavirus fears

Financial markets plunged again on Tuesday as investors continued to worry
about the spread of the coronavirus.

 

The Dow shed almost 900 points, falling more than 3% to close at 27,081. The
S&P 500 also closed more than 3% lower, while the Nasdaq sank 2.8%,

 

The declines followed drops overseas. In the UK, the FTSE 100 fell almost 2%
to a 12-month low of 7,018, while Japan's Nikkei 225 index fell 3.3%.

 

The slump followed a global stock market plunge on Monday.

 

On Tuesday, airlines and travel companies, as well as firms that rely on
China as part of their supply chain, were again among the most affected. Oil
prices also dropped.

 

'This might be bad'

Losses on US markets accelerated after US health officials warned that the
public should expect cases to spread.

 

"We are asking the American public to prepare for the expectation that this
might be bad," said Nancy Messonnier, director of the National Center for
Immunization and Respiratory Diseases.

 

The number of cases of coronavirus outside China is growing.

 

At least 280 people have been diagnosed with the virus in Italy, where seven
have died. A handful of cases have also been identified in Switzerland,
Austria, France and Germany.

 

In the US, which has confirmed 57 cases, the White House sought to calm
fears that the spread would derail the economy.

 

"This is very tightly contained in the US," White House economic adviser
Larry Kudlow told broadcaster CNBC. "I think this thing will run its course
and the US is in excellent shape."

 

However, investors continued to sell stocks. Shares in American Airlines
fell 9%, while Norwegian Cruise Line Holdings and Marriott dropped almost
8%.

 

The mixed messages coming from the federal government are not helping Wall
Street.

 

In an effort to calm panicking investors, the Trump administration's
economic advisor Larry Kudlow said the coronavirus will not result in an
economic tragedy and that the virus is contained.

 

That seemed to be at odds with US health officials, who are warning
Americans that an outbreak is coming and it will be bad.

 

But then Mr Kudlow went even further by advising Americans that the current
falls in the market meant that it would be a good time to buy stocks.

 

Forget for a moment that a member of the Trump administration is offering
any sort of economic advice at all, and consider that some very well
regarded investors are urging people not to buy on the dip and that this is
a very unusual situation.

 

Then President Trump also weighs in to say the virus in the US is under
control.

 

Again, these are very different messages coming from the same government, so
it's not surprising financial markets are tanking.

 

Investors are not being given much to be confident about.

 

In the UK, cruise company Carnival lost about 6% of its value, while Tui
shares shed almost 5%.

 

Japan's Toyota Motor Corp fell 3.7%, while Uniqlo's parent company Fast
Retailing dropped 4.2%.

 

Coronavirus: Will I get paid if I self-isolate?

Britons returning from northern Italy told to self-isolate

World must prepare for pandemic, says WHO

Coronavirus credit crunch hits Chinese firms

Coronavirus: What you need to know

"This is not a buy-the-dip market. It is a don't-catch-a-falling-knife
market," wrote Scott Minerd of Guggenheim Securities on Twitter.

 

Some analysts said they expect the spread of the coronavirus to peak in the
first quarter of this year, with economic activity rebounding in the second
quarter.

 

"Those who expect the virus to kick off a global recession might be
disappointed, as the impact is likely to be temporary," said Margaret Yang,
an analyst with CMC Markets. "Central banks around the globe are ready to
inject liquidity and cut down interest rates to cushion the headwind."--BBC

 

 

 

Disney boss Bob Iger steps down as chief executive

Disney boss Bob Iger, who led the media company through several blockbuster
acquisitions and the launch of a streaming network, is stepping down as
chief executive.

 

Disney said it had appointed Bob Chapek, who previously ran the company's
parks and products division, to replace him.

 

Mr Iger will remain Disney's executive chairman until the end of next year
to direct "creative endeavours".

 

The move came as a surprise.

 

Mr Iger, who is considered by many to be the most powerful man in Hollywood,
had served as chief executive since 2005. He has previously announced plans
to retire only to push back his departure date.

 

'Optimal time'

In a statement on Tuesday, Mr Iger said it was the "optimal time" to begin
to hand control of the company to a new leader.

 

Disney recently completed the acquisition of Rupert Murdoch's 21st Century
Fox entertainment empire and launched the Disney+ streaming channel late
last year.

 

Earlier, Mr Iger presided over the firm's acquisition of Pixar, Marvel and
Lucasfilm.

 

"The company has gotten larger and more complex just in the recent 12
months," Mr Iger said on a conference call on Tuesday.

 

"I felt that with the asset bases in place and with our strategy deployed I
should be spending as much time as possible on the creative side of our
business."

 

Remaining as executive chairman would ease the transition, he added.

 

Mr Chapek, who joined Disney in 1993, will be the firm's seventh chief
executive since it was formed in the 1920s. In his prior role, among other
achievements, he oversaw the opening of Disney's park in Shanghai.

 

"His tremendous understanding of the breadth and depth of the Company and
appreciation for the special connection between Disney and its consumers
makes him the perfect choice," said Disney board member Susan Arnold.

 

Shares in the firm fell 2% in after-hours trading after the news was
announced.

 

Mr Iger, who recently published a memoir, is much beloved by investors for
his record steering the company to steady profits, despite upheaval in the
television and movie industries.

 

Disney claimed seven of the top 10 box office hits globally last year and
the new streaming channel has already attracted more than 28 million paying
customers.

 

The firm's market value has increased five-fold during his tenure, Ms Arnold
said. The firm is now worth about $230bn.--BBC

 

 

Coronavirus: Gulf states suspend more flights

Gulf states have imposed more flight restrictions in an effort to try to
slow the spread of the coronavirus outbreak.

 

The United Arab Emirates (UAE) has suspended all flights to and from Iran
apart from Tehran.

 

Bahrain has suspended all flights to and from Dubai and Sharjah in the UAE
until further notice.

 

Oman, Jordan, Kuwait, Iraq and Saudi Arabia have already suspended flights
to Iran after cases there.

 

Airlines around the world have been forced to reduce flights as countries
try to stop the spread of the potentially deadly disease.

 

On Tuesday, Dubai's airport authority said that it had suspended all flights
to and from Iran with the exception of the capital Tehran.

 

Passengers arriving from Tehran will be screened, it said. Customers have
been urged to contact their airlines if they need to rebook flights.

 

In addition, the Kingdom of Bahrain has suspended all scheduled passenger
flights to and from Dubai until further notice, the airport authority said.

 

On Monday, Iraq, Afghanistan, Kuwait, Oman and Bahrain reported their first
cases of coronavirus, all involving people who had travelled from Iran.

 

On the same day Iran denied a cover-up over how many there had died from the
disease.

 

To try to prevent the spread of the virus, Iranian authorities have ordered
the nationwide cancellation of concerts, football matches, and closures of
schools and universities in many provinces, as a precaution.

 

The global airline industry body, the International Air Transport
Association (IATA), warned on Friday that airlines stand to lose $29.3bn
(£23.7bn) of revenue this year due to the effects of the virus.

 

IATA predicted that demand for air travel would fall for the first time in
more than a decade.

 

Last week, airlines Qantas and Air France-KLM warned that their earnings
would be hit as a result of the coronavirus dampening demand in Asia.

 

Bahrain's decision to suspend all flights to and from Dubai might seem
dramatic but it is also a sign of fear that has gripped governments in the
Middle East.

 

Cases of the coronavirus emerging in the last few days in the United Arab
Emirates, Oman, Bahrain, Kuwait, Lebanon and Iraq are all linked to Iran,
which has emerged as the epicentre of the virus in the region.

 

More than 400,000 Iranians are estimated to be based in Dubai. The city is
the main business hub between Iran and the rest of the Middle East.

 

Kuwait - where the number of confirmed cases has risen to eight - suspended
all national day public celebrations on Tuesday and has also banned sports
activities in the country for the next two weeks.

 

The outbreak of the epidemic in Iran is a blow for the country's economic
health, which is already being strangled by sanctions.

 

Coronavirus effects

Stock markets plunged around the world on Monday after fresh coronavirus
cases renewed fears about a global economic slowdown. Shares in airlines and
travel companies were hit particularly hard.

 

Oil prices have also fallen sharply on fears that the slowdown in economic
activity - particularly in China - will affect demand.

 

A number of firms have warned of the effects of coronavirus on their trade.

 

On Tuesday, Dutch consumer and health electronics firm Philips warned that
the outbreak was affecting demand its goods in China, and was also hitting
its global supply chain.

 

Apple said last week that its revenues would fall short of forecasts, with
iPhone supplies "temporarily constrained" worldwide due to disruption in
China from the coronavirus.--BBC

 

 

 

UK would be 'insane' to let in chlorinated chicken, farmers say

Farming leaders have said it would be "insane" to sign a trade deal that
allows the import of food that would be illegal to produce in the UK, such
as chlorinated chicken.

 

The National Farmers Union (NFU) president, Minette Batters, said allowing
these imports would be "morally bankrupt".

 

The NFU called for rules on minimum standards for imports to be made law.

 

Downing Street said food standards would be protected in any trade deal.

 

'Bottom rung'

At the NFU's annual conference on Tuesday, Ms Batters said: "This isn't just
about chlorinated chicken. This is about a wider principle.

 

"We must not tie the hands of British farmers to the highest rung of the
standards ladder while waving through food imports which may not even reach
the bottom rung."

 

She said: "To sign up to a trade deal which results in opening our ports,
shelves and fridges to food which would be illegal to produce here would not
only be morally bankrupt, it would be the work of the insane."

 

Ms Batters called for rules in the Agriculture Bill, which is currently
going through Parliament, to ensure that food that would be illegal to
produce here will not be imported.

 

In countries such as the US, chicken is sometimes washed in chlorine or
other chemicals to remove harmful bacteria.

 

This practice was banned in the European Union in 1997 over food safety
concerns.

 

The prime minister's official spokesman said: "The UK has long been a world
leader in food safety and animal welfare and we will continue to uphold our
high food safety standards in all future trade deals."

 

The EU will demand that the UK keeps its ban on chlorinated chicken as a
requirement for a trade agreement with Brussels, the Guardian reported,
citing documents it has seen.

 

The move is to protect European meat exports, but it could prove to be a
potential stumbling block in any deal with the US.

 

Last month, US Treasury Secretary Steve Mnuchin said that the US wanted to
agree a post-Brexit trade deal with the UK in 2020.

 

New environment secretary George Eustice drew criticism on Sunday after
refusing to rule out chlorinated chicken and hormone-treated beef being
imported from the US under a new deal.

 

But the EU believes that relying on chlorine at the end of the meat
production process could be a way of compensating for poor hygiene standards
- such as dirty abattoirs.

 

In 2020, the UK will be negotiating a trade deal with Brussels for when the
Brexit transition period ends on 31 December.

 

According to reports in the Guardian newspaper, the EU will demand that the
UK maintains a ban on chlorinated chicken as the price for a trade agreement
with the bloc.

 

Mr Eustice's predecessor, Theresa Villiers, had previously told the BBC that
the current European Union ban on chlorine-washed chicken would be carried
over into UK legislation after Brexit.--BBC

 

 

 

Manchester United's revenue falls by nearly 12%

Manchester United's revenue fell by nearly 12% in the six months to
December, largely because of the club's absence from the Champions League.

 

Broadcasting revenue fell by 33.4% over the period, although commercial
revenue rose by 6.5% and matchday revenue remained largely the same.

 

For 2020, the club expects its total revenue to be between £560m and £580m.

 

Ed Woodward, the team's executive vice-chairman, said the team had made
"progress on our squad rebuild".

 

He added that the players the club had signed and others who had come
through its academy had put in place "the foundation for delivering the
long-term success that we are all working towards".

 

The club's total revenue for the six-month period was £303.8m. The drop in
broadcasting figures was not a surprise, given the club's absence from the
Champions League.

 

However, Mr Woodward hopes that will be put right next season, adding: "We
are pushing for a strong finish in the Premier League, the Europa League and
the FA Cup as we enter the final third of the season."

 

For the year to July 2019, the club announced a record revenue figure of
£627m - a figure that saw it drop to third, behind Barcelona and Real
Madrid, in the annual Deloitte's Football Money League.

 

The club's figures also revealed a rise in the number of employees at the
end of last year to 979 from 937 the previous year.--BBC

 

 

 

Tesco bakeries overhaul puts 1,800 jobs at risk

Supermarket giant Tesco is set to cut more than 1,800 jobs as it makes
changes to bakeries in larger stores.

 

It said that 1,816 bakery staff were at risk of redundancy, with the changes
taking place from May.

 

The retailer said it would convert 58 of its bakeries so they will only
finish pre-baked products on-site.

 

Jason Tarry, the head of Tesco UK & Ireland, said it needed to "adapt to
changing customer demand", with fewer people buying traditional loaves.

 

The move comes as sales of bagels, wraps and flatbreads is increasing,
according to Tesco.

 

Bakeries at 257 sites will remain unchanged, with a further 201 still
offering some products baked from scratch.

 

'Devastating' for staff

Mr Tarry added: "We know this will be very difficult for colleagues who are
impacted, and our priority is to support them through this process. We hope
that many will choose to stay with us in alternative roles."

 

The firm said it would have thousands of vacancies available across its
stores between February and May.

 

The main union representing Tesco staff, Usdaw, said the reports of job cuts
were "devastating" for staff.

 

Pauline Foulkes, its national officer, said many of those at risk were
skilled workers.

 

"While we will do everything possible to maintain jobs or support impacted
staff to redeploy into alternative roles, the reality is the opportunities
to find suitable alternative skilled roles may be limited for these
workers," she said.

 

Tesco is the UK's biggest grocery chain and it employs 450,000 people
worldwide.--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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