Major International Business Headlines Brief::: 27 July 2020

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Major International Business Headlines Brief::: 27 July 2020

 


 

 


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

 


 

 


 

 

ü  South Africa extends COVID-19 loans for struggling businesses

ü  Sub-Saharan Africa GDP to contract 3.1% this year

ü  Algerian economy contracts 3.9% in first quarter, government says

ü  Eswatini central bank cuts base rate 25bps to 3.75%

ü  MTN Uganda stake sale to be restricted to East Africans -regulator

ü  South Africa's MTN buoyed by expected leap in first-half earnings

ü  Woolworths sees annual sales dip as COVID-19 hits

ü  Kenyan shilling gains slightly against the dollar

ü  The millions 'hanging by a thread' as coronavirus aid expires

ü  Newbie investors: 'I didn't know I'd lose money so fast'

ü  Tui scraps holidays to mainland Spain over quarantine

ü  Retail sales near pre-lockdown levels in June

ü  Amazon, Google and Wish remove neo-Nazi products

ü  Goldman Sachs settles 1MDB scandal with Malaysia for $3.9bn

ü  Almost 1,000 apply for receptionist job in Manchester

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

South Africa extends COVID-19 loans for struggling businesses

JOHANNESBURG (Reuters) - South Africa has doubled to six months the term of loans to small and medium-sized businesses to help them survive the COVID-19 recession and made other changes to make the credit easier to access, the treasury said on Sunday.

 

President Cyril Ramaphosa announced the 200 billion rand ($12.00 billion) loan scheme in April to help businesses, as part of stimulus measures to lessen the pandemic impact on South Africa’s already shrinking economy.

 

The loans are intended to meet urgent requirements, such as salaries, rents and contractual obligations.

 

Many of South Africa’s small and medium-sized firms were thrown into disarray when the government introduced a lockdown at the end of March to try to contain the spread of the novel coronavirus that causes COVID-19.

 

They lost much of their revenue but still faced fixed costs, and many have struggled to recover even as the lockdown lifted.

 

Sunday’s changes to the scheme include making “bank credit assessments and loan approvals more discretionary and less restrictive,” the treasury said in a statement.

 

They extend the draw-down period and the interest and capital repayment holiday to six from three months and replace the 300 million rand turnover cap with a maximum loan amount of 100 million rand.

 

($1 = 16.6705 rand)

 

 

 

 

 <http://www.zb,co.zw/> Sub-Saharan Africa GDP to contract 3.1% this year

JOHANNESBURG (Reuters) - Sub-Saharan Africa’s economy will contract this year after shutdowns disrupted activity and as daily cases of coronavirus are still rising in the region but a recovery is expected next year, a Reuters poll found on Friday.

 

Following months of lockdowns which have muted economic activity a Reuters poll taken in the past week suggested the region will contract 3.1% this year but bounce back to around 3.5% growth in 2021.

 

Some countries have begun relaxing restrictions but virus cases are still increasing, unlike in many developed countries that have started to show signs of recovery, so the uncertainty meant the range of forecasts for next year was wide - between flatlining and 4.8% growth.

 

South Africa has reported the most cases in Africa, partly reflecting more widespread testing, and it is harder to gauge the full extent of outbreaks elsewhere although there are no signs numbers are falling.

 

“Growth downgrades dominate in a region where external and fiscal buffers were already substantially eroded. The impact of COVID-19 will reduce growth even further,” Standard Chartered wrote in a note.

 

Nigeria, Africa’s biggest economy, was expected to contract 3.7% this year but bounce back to 2.0% growth next year.

 

Continental peer South Africa was expected to grow 3.5% next year following an 8.0% contraction this year, a Reuters poll showed last week. [ECILT/ZA]

 

However, Ghana, one of the continents oil exporters, was still expected to grow, expanding 1.9% this year and 4.2% in 2021.

 

“Despite the obvious downside risks from lower oil prices and headwinds from COVID-19, we believe Ghana has a decent growth outlook and reasonably comfortable external sector metrics relative to other African oil exporters,” said Michael Kafe, economist at Barclays.

 

“The fallout from COVID-19 and associated lockdown means GDP growth is likely to be weak this year. However, unlike other African oil exporters such as Angola, Gabon and Nigeria, where GDP growth is likely to contract this year, we expect Ghana to post positive GDP growth.”

 

Kenya - east Africa’s biggest economy - was expected to have a lacklustre performance this year with no growth, a poor outcome having averaged around 6% annual growth in the past decade.

 

 

 

Algerian economy contracts 3.9% in first quarter, government says

ALGIERS (Reuters) - Algeria’s economy contracted 3.9% in the first quarter this year after a 1.3% growth in the same period in 2019, weakened by the coronavirus lockdown and a bad performance by the vital oil and gas sector, the government said on Saturday.

 

The OPEC member and gas-exporting country’s energy sector contracted 13.4% in the first three months of 2020, nearly double the 7.1% contraction a year earlier, according to the National Statistics Bureau.

 

Oil and gas account for 60% of the state budget and 93% of total export revenue as the non-energy sector is still underdeveloped despite government attempts to carry out reforms.

 

Energy earnings dropped 26% in the first three months due to lower output and exports as well as a fall in global crude oil prices caused by the coronavirus outbreak which affected global demand.

 

That added to financial pressure, pushing the government to cut public spending and delay planned investment projects for this year in main sectors including energy.

 

The authorities are due to announce next month a new “social and economic revival plan” aimed at reducing reliance on energy and develop the non-oil sector.

 

They imposed a lockdown earlier this year to limit the spread of the novel coronavirus, weakening growth in almost all sectors.

 

Growth in the services sector stood at -2.8% in the first quarter after growing 5% in the first three months of 2019.

 

Transport and communications contracted 4.8% against a 5.3% growth last year, while the industry sector reported a -0.5% growth compared with +4.9% during the January-March 2019.

 

“The economic activity declined significantly during the first quarter,” the National Statistics Bureau said. “This situation has been aggravated by the global health crisis.”

 

 

 

Eswatini central bank cuts base rate 25bps to 3.75%

MBABANE (Reuters) - Eswatini’s central bank has cut its policy rate by 25 basis points to 3.75%, it said in a statement on Saturday, the latest of several cuts meant to counter a coronavirus-linked downturn.

 

The previous 50bps cut was in May. As is often the case, the central bank’s decision mirrored that of neighbour South Africa, which also cut by 25pbs on Thursday.

 

The government forecast in May that the economy would contract by 6.7% this year owing to the COVID-19 crisis.

 

 

 

MTN Uganda stake sale to be restricted to East Africans -regulator

KAMPALA (Reuters) - The sale of a 20% equity stake in MTN Uganda, the country’s biggest telecoms operator, will be restricted to citizens of the East African Community trading bloc, a spokesman for the sector regulator said on Friday.

 

The government is forcing all telecom operators, including MTN Uganda and the local unit of India’s Bharti Airtel,, to list a fifth of their shares on the Ugandan bourse to allow locals to benefit from the sector’s profits.

 

“The shares are restricted to Ugandans, and also citizens from the East African Community (EAC),” Ibrahim Bbosa, spokesman for the Uganda Communications Commission told Reuters.

 

The six members of the EAC are Burundi, Kenya, Rwanda, South Sudan, Tanzania and Uganda.

 

There was no immediate comment from MTN Uganda, but in January, its chief executive cast doubt on whether the government move to force foreign-owned companies to list on the local bourse would achieve its goal of boosting Ugandan ownership in the sector.

 

Stephen Kaboyo, the managing partner of Kampala-based Alpha Capital Partners, said the sale of the shares will galvanise the local stock market, adding he was confident the issue would get sufficient demand despite the government locking out non-East Africans.

 

“There is sufficient liquidity both at the institutional and retail level in the East African market,” Kaboyo told Reuters.

 

This month, MTN Uganda had its operating license renewed for 12 years after paying $100 million. It has been given two years starting this July 1 to list 20% of its equity on the Ugandan Securities Exchange.

 

It started operating in 1998 and it has more than 10 million subscribers.

 

Although relatively small, Uganda’s telecoms and data market is seen as potentially lucrative because a large proportion of the country’s 42 million people is young.

 

 

 

South Africa's MTN buoyed by expected leap in first-half earnings

(Reuters) - South Africa’s MTN Group expects first-half sales to double, beating analyst estimates, the company said on Friday, sending its shares up more than 7%.

 

The telecoms sector has experienced a spike in network data traffic as millions of South Africans were forced to work and entertain themselves from home after the government imposed a lockdown from the end of March to curb the spread of the new coronavirus.

 

However, the country’s largest mobile operator by subscribers also benefited from foreign-exchange gains, it said without elaborating.

 

The group estimates headline earnings per share (HEPS), which strips out certain one-off items and is the main profit measure in South Africa, to be up at least 195 cents at more than 390 cents for the six months to June 30, against analyst expectation for HEPS of 271 cents.

 

Shares in the company jumped 7.7% to 64.49 rand by 0801 GMT, on course for their highest daily gain in three weeks.

 

“The market was very worried about the slightly high levels of debt at MTN and potentially the impact of the coronavirus, but it looks like they are tracking well ahead of the numbers that we were expecting,” said Nadim Mohamed, a partner at First Avenue Investment Management.

 

Taking into account a price-to-earnings ratio of less than 8 times, with a strong dividend, the stock is potentially undervalued, he added.

 

The company, which reports results on Aug. 6, also said it expects an increase of at least 140% in first-half earnings per share, which include gains on the disposal of the ATC Uganda and ATC Ghana tower joint ventures.

 

Rival Vodacom Group on Thursday reported a 7.6% rise in first-quarter group service revenue, buoyed by strong demand for voice, data and financial services in South Africa during the lockdown.

 

 

 

 

Woolworths sees annual sales dip as COVID-19 hits

JOHANNESBURG (Reuters) - South African department stores chain Woolworths Holdings flagged a small fall in annual sales after its non-food stores were shut in the second-half of its financial year due to COVID-19 lockdowns.

 

Even before the global health crisis, South African brick-and-mortar retailers were struggling with weak consumer spending amid slowing wages growth, high utility costs and high unemployment. The pandemic has compounded these problems.

 

Woolworths, which also operates in Australia, said group sales for the 52 weeks ended June 28 fell 0.1% compared with a year earlier. In constant currency terms, sales declined 1.1%.

 

The sales performance for the second half was hit also by a drop in customer numbers as they limited trips to malls and shopping centres, with some opting just to shop online.

 

This pushed online food sales for the South Africa business up by 87.8%, while Woolworths Fashion, Beauty and Home online sales grew by 41.3% during the second half.

 

For the full year, Woolworths food sales jumped 10.7% while fashion, beauty and home sales declined 10.7 as shoppers prioritised essentials.

 

“To stimulate trade and manage inventory levels throughout this period, management executed a series of focused promotional and clearance initiatives targeted at generating and preserving cash,” the firm said in its trading update.

 

“While this negatively impacted gross profit margin, it has resulted in better inventory levels and an improved working capital and net gearing position at year-end.”

 

In Australasia, sales in upmarket department store David Jones fell 6.3% over the year, while sales in Country Road Group declined 14.3%. Online turnover in both businesses jumped 100.7% and 28.1% respectively in the second half.

 

South Africa’s retail sales plunged by a record 50.4% in April and by 12% in May, data showed on Wednesday, in the latest evidence of the impact of the early, stricter phase of the country’s coronavirus lockdown.

 

 

 

Kenyan shilling gains slightly against the dollar

NAIROBI (Reuters) - The Kenyan shilling regained ground on Friday due to receding dollar demand from the energy sector which had pushed the shilling to an all time record low during previous sessions, traders said.

 

At 0820 GMT, commercial banks quoted the shilling at 107.95/108.15 per dollar, compared with 108.10/30 at Thursday’s close.

 

 

 

 

The millions 'hanging by a thread' as coronavirus aid expires

When Brandon Humberston's weekly unemployment benefits finally kicked in after months of waiting, the $750 (£586) cheque was a "godsend".

 

Suddenly the 19-year-old, who worked as a cook at Mexican restaurant chain Chipotle until the pandemic cost him his job, could pay rent and buy groceries - even save a little.

 

Now much of that income is set to disappear.

 

The $600 a week additional payment that the US approved to top up unemployment benefits during the pandemic will expire on 31 July. In many states, recipients have already received their last cheque.

 

"It's pretty dire," says Mr Humberston, whose benefits will be cut to $150. "My generation is hanging on by a thread".

 

The fight over $600

When the US approved more than $2.4tn in spending this spring to try to shield its economy from damage caused by coronavirus, economists warned more would be necessary.

 

Lawmakers in Washington have yet to act.

 

While Democrats have proposed another $3tn in spending, Republicans have rejected that plan and remain divided about how much more aid - if any - is warranted.

 

The fate of the unemployment benefits that Mr Humberston - and an estimated 30 million other Americans rely on - is giving the debate a sense of urgency.

 

When Congress boosted the payments by $600 a week in March, it nearly tripled the average benefits payment. The move meant recipients could claim roughly the equivalent of the country's median wage of about $975.

 

Republicans are now pushing to reduce the temporary bonus set to expire at the end of the month.

 

They say it is discouraging people from going back to work, pointing to research that shows more than two-thirds of current recipients - most of them in low-paid jobs - now earn more on unemployment than they did when they were working.

 

Mr Humberston says those fears are misplaced. He says he has applied for dozens of jobs in his home state of Oregon with no luck and the real problem is that employers are afraid to hire because of the pandemic.

 

"I mean, find what job? That's the thing - there are no jobs around, no jobs anywhere."

 

US employers have cut nearly 15 million positions since February. That's despite strong hiring in May and June, when lockdowns eased and business received payroll support from the government.

 

That money is drying up and as virus cases surge, a second wave of layoffs is starting.

 

Companies announcing cuts last week included LinkedIn, Nike and Dow chemical company. Many smaller businesses are also cutting back.

 

Economic risk

In an economy reliant on consumer spending, experts warn that now is not the time to remove the unemployment bonus. Some economists have warned that the move could drag down growth by 2% or more.

 

"The recovery at this point is at significant risk," says economist Karen Dynan, who teaches at Harvard and is a senior fellow at the Peterson Institute for International Economics.

 

Other countries, including the UK, have announced additional stimulus measures this month.

 

Prof Dynan says that with the November presidential election approaching, US lawmakers will ultimately reach some kind of compromise on the unemployment payments, which now reach almost one-fifth of the American workforce.

 

But she says that by itself won't be enough. She says businesses and local governments, facing gaping budget holes due to the decline in activity, need support too.

 

"They need to do more," she says. "That's clear."

 

The number of people filing new claims for unemployment edged up last week for the first time since March. Food banks have been overwhelmed and as temporary bans on evictions end, cities are bracing for a wave of homelessness.

 

People are in "absolute panic" as the deadline for extending the benefit nears, according to Courtney Henley, one of the administrators of a Facebook group that helps people navigate the unemployment system.

 

Ms Henley, who runs an events business in New York, has relied on the payments herself since the pandemic hit.

 

Having spent much of the spring in quarantine after contracting coronavirus, Ms Henley says she is starting to think about how to reinvent her business for digital gatherings. But many of her clients are small businesses, who are also hurting.

 

"Pretty much everything I do, I can't do now," she says. "If that goes away, I will be looking at not being able to pay bills at all."

 

She says Republicans are not being "realistic" about the state of the economy.

 

"Things have not reopened yet. People are still recovering," she says. "We're just hoping that our government doesn't just leave American workers to starve."--BBC

 

 

 

Newbie investors: 'I didn't know I'd lose money so fast'

Stuck at home without a job during the pandemic, Kelly Mills initially turned to video games for escape. Then she decided to try her hand at a real world game: the stock market.

 

"I figured if I'm putting this much effort into the trading of these fictitious turnips, then surely I can figure out how the actual stock market works," she says.

 

Soon the 34-year-old from Louisiana, who worked in the film industry, was following company rumours on Reddit, dialling into executive conference calls and tracking share prices as obsessively as posts on Instagram.

 

"I'm cooped up, I'm bored, I've got nothing better to do," she says. "This isn't me trying to make money. I'm just trying to pass the time."

 

Like Ms Mills, millions of new investors in the US have piled into stocks in recent months, enabled by a dramatic crash in share prices in March, online brokerages offering low or no fees, and pandemic payments from the government.

 

Online brokers - Charles Schwab, TD Ameritrade, Etrade and Robinhood - together saw more than 4.5 million new accounts in the first three months of the year, with many opened at the height of market fears in March.

 

Eric Sutherland, who works in sales and lives in Colorado, created an account on Robinhood after hearing about the app from a friend. He has bought about $1,300 (£1,040) worth of shares since March.

 

"You see the market crash and it's like, 'Oh wow.' It's not like these aren't going to come back at some point, so why would you not?" he says.

 

Wall Street worries

Demand from the newbies has been one of the factors driving the rapid market rally, despite warnings from economists that recovery is likely to be slow and uneven.

 

In the US, the Nasdaq index hit new highs in June and has continued to climb. The S&P 500 is down just 5% from its pre-pandemic record, while the Dow is off 10%.

 

While some investors are dabbling in penny stocks, many are investing in well-known consumer names such as Amazon and airlines, which are likely to rise as the economic recovery gains traction, says Nick Colas, co-founder of DataTrek Research.

 

"Their timing, by luck or by skill, was impeccable. They bought the absolute bottom, when things looked very, very bad and have been riding the wave all the way back up," he says.

 

But the quick rebound - faster than the rally that followed the financial crisis - has raised concerns about the risks being taken by the amateurs.

 

In the financial media, their presence has drawn comparisons to the late 1990s surge in so-called day trading that is now seen as a warning sign of the dotcom bust.

 

"They are just doing stupid things and, in my opinion, this will end in tears," billionaire hedge-funder Leon Cooperman told broadcaster CNBC in June.

 

The worry isn't so much for people like Ms Mills, who are looking for a pandemic pastime. It's for the people who may invest so much that they end up losing everything.

 

Last month, one 20-year-old Robinhood trader was apparently so distraught over how much he thought he had lost that he killed himself.

 

Amid the outcry, Robinhood this week said it was postponing its launch in the UK indefinitely.

 

'I had no idea'

The phenomenon of amateur investing is not confined to the US. Tom Priscott, 28, is from the UK but currently working for a US software company in the Spanish capital, Madrid, where he lives with his girlfriend.

 

"We were confined to our flat and I was thinking about supplementing my income," he told the BBC. "Some of my friends were talking about stock prices being as low as they've ever been."

 

He spent hours watching online tutorials and studying how to trade, but when he opened an account, he burned through his stake in a matter of minutes.

 

"I started off with €100. I felt super-confident watching the ticker as stocks and shares were going up and down," he said.

 

He piled into oil at $16 a barrel, thinking the price was sure to go up, but it fell almost immediately to $14.

 

"I didn't have enough money to cover the loss, so it crashed out my position and I got an email. I had no idea what had happened.

 

"I thought I was owning barrels, but I wasn't, I was borrowing. It was the fastest €100 I'd ever spent."

 

'Not stupid'

Ms Mills says she is well aware some of the current trading activity is little more than speculation.

 

One drone stock she followed, for example, climbed rapidly as investors caught wind of a video by the founder's daughter that seemed to tie the firm to Amazon, only to tumble again when no partnership was announced.

 

But Ms Mills - who sold her holdings before the decline, turning her $5 investment into about $100 - bristles at the tone of some of the comments.

 

"I'm not stupid," she says. "I'm assuming I'm never going to see this money again and if I get some money back or I break even, that's really cool."

 

As the novelty of stockpicking wears off, and more people return to work, interest may fall off - but not necessarily for everyone.

 

Mr Sutherland says he's bought stocks with money he would have spent going out with friends if lockdowns hadn't been in place. But as restrictions loosen, he says, "We'll see. I might have to create a new line on the budget."--BBC

 

 

 

 

Tui scraps holidays to mainland Spain over quarantine

The UK's biggest tour operator, Tui, has cancelled all mainland Spanish holidays until 9 August.

 

The move comes after the government imposed a 14-day quarantine on people arriving in the UK from Spain.

 

The firm said all those going to the Balearic and Canary Islands could still travel as planned from Monday.

 

The airline industry has reacted with dismay to the decision to impose the quarantine, calling it a big blow.

 

The Foreign and Commonwealth Office (FCO) is advising against all but essential travel to mainland Spain. Quarantine measures apply to those returning from mainland Spain, the Canary Islands and the Balearic Islands, such as Majorca and Ibiza.

 

British Airways is still operating flights, but said the move was "throwing thousands of Britons' travel plans into chaos".

 

Budget airline easyJet is also maintaining a full schedule, as is Jet2.

 

 

Wizz Air said it would continue to operate flights to Spain "as scheduled for the time being", but added that it is "re-evaluating this schedule in light of potential diminished demand".

 

Rob Griggs of Airlines UK said the move was a "big blow" to the aviation sector.

 

He told the BBC that individuals should be tested for coronavirus instead of having to self-isolate automatically.

 

"We back the idea of voluntary testing on arrival or before you leave," he told BBC Breakfast.

 

"We think testing would... enable individuals to come back without the need for quarantine if they test."

 

Uncertainty and confusion

Mr Griggs also called on the government to be "a little more specific" in its advice, since the latest spike in coronavirus cases in Spain did not affect the whole country in the same way.

 

Tui said it would contact customers affected and offer them the right to cancel or amend their holidays.

 

"All customers currently on holiday can continue to enjoy their holiday and will return on their intended flight home," it added.

 

Tui said health and safety was its highest priority, but urged the government to "work closely" with the travel industry.

 

"This level of uncertainty and confusion is damaging for business and disappointing for those looking forward to a well-deserved break," it added.

 

Quarantine measures for UK travellers were first introduced in early June. But after pressure from the aviation and travel industries, the government and devolved administrations published lists of countries exempt from the rules.

 

The decision to remove Spain from those lists was announced on Saturday following a spike in Spanish coronavirus cases, with more than 900 new cases reported on Friday.

 

Spanish officials have also warned a second wave could be imminent as major cities have seen cases surge.

 

The Airport Operators Association said the new measures would "further damage what is already a fragile restart of the aviation sector, which continues to face the biggest challenge in its history".

 

However, easyJet said it was "disappointed" and would operate a full schedule in the coming days.

 

"Customers who no longer wish to travel can transfer their flights without a change fee or receive a voucher for the value of the booking," the company said in a statement.

 

A spokesman for the Association of British Travel Agents (Abta) said the government's quarantine rule change was "disappointing".

 

"We suggest the government considers lifting the quarantine rules for flights to and from certain regions with lower infection rates, or to places such as the Balearic Islands or the Canaries - which are geographically distinct from mainland Spain - to avoid further damage to the UK inbound and outbound tourism industries," he said.

 

People currently on holiday in Spain have been advised by the Department of Transport to follow the local rules, return home as normal, and check the Foreign Office's travel advice website for further information.

 

The Association of British Insurers advised holidaymakers that if they were already in Spain when the government's advice changed, their insurance was likely to cover them until they returned home.

 

But it added: "Travelling to countries against FCO advice is likely to invalidate your travel insurance and this would apply to those yet to travel to mainland Spain.

 

"Customers looking to change or cancel their travel plans should speak with the airline provider, tour operator or travel agent in the first instance.

 

"If you booked your trip or took out your travel insurance after Covid-19 was declared a pandemic, you may not be covered for travel disruption or cancellation. In either circumstance, we'd advise checking with your insurer."--BBC

 

 

 

Retail sales near pre-lockdown levels in June

UK retail sales were near pre-lockdown levels in June, as the reopening of shops released pent-up demand.

 

The amount of goods sold last month increased by 13.9% compared to May, according to the Office for National Statistics (ONS).

 

Separately, a closely watched survey showed that activity in the UK's services and manufacturing sectors returned to growth last month.

 

However, economists warned that the country's recovery would take time.

 

June's rise in retail sales followed record falls in April and a partial recovery in May as the coronavirus pandemic led to widespread shop closures.

 

But it masked "big changes" in retail, with food and online sales up, while clothing was still "struggling", the ONS said.

 

Online sales continued to go "from strength to strength", the ONS added, accounting for £3 out of every £10 spent by consumers.

 

Demand at food stores remained strong, hitting new highs for the lockdown period.

 

Compared with February, the volume of food sales was 5.3% higher while non-store retailing grew by 53.6%.

 

The ONS said the rebound had brought overall retail sales back to a similar level to where they were pre-lockdown, but there was a "mixed picture" in different store types.

 

In June, non-food stores, including department stores and clothes shops, partially recovered from strong falls during the lockdown but were still 15% lower than in February.

 

Non-essential shops in England were not allowed to reopen until 15 June, so they were only trading for half the month.

 

Jonathan Athow, ONS deputy national statistician, told the BBC that there had been "some really big changes under the surface" of the retail landscape since lockdown began.

 

"Food shops continue to do quite well, as we're eating at home more," he said.

 

"But the real growth has been in online sales. Online sales continue to go from strength to strength."

 

Britain's nation of shoppers has come to the fore.

 

The amount of what we buy is virtually back to pre-crisis levels - but that doesn't signal a wider full bounce-back in our economic fortunes.

 

This is for a couple of reasons. Firstly, what we buy has changed: more online, more staples, fewer impulse forays onto the High Street.

 

While there was an initial flurry in sales of clothing and household goods immediately after non-essential shops opened in June, more timely data on payments suggested that tailed off in July.

 

The fallout can be seen in the mounting job losses announced by stalwarts, from John Lewis to M&S.

 

Secondly, retail sales are only part of the recovery jigsaw, totalling about a fifth of the economy.

 

Factories and building sites are coming back to life. But the big unknown is spending on services such as restaurants, bars and hotels - so-called "social spending".

 

Even with eating out vouchers and VAT cuts, a full and rapid recovery there seems unlikely.

 

And it is these sectors that have suffered most and have furloughed the vast majority of their staff. Their future will hinge on how spending convalesces there.

 

High Street suffers

Mr Athow said some sectors were "struggling".

 

"Some of that is due to the restrictions, which were only relaxed part-way through June in England. Clothing is down by about a third.

 

"And if you look at the High Street more generally, sales in the High Street, or physical shops, are also down by about a third."

 

Clothing sales did rise 70% month-on-month in June, but from a very low base, meaning that they are still well below pre-lockdown levels.

 

Mr Athow said they had fallen so far that "virtually any pick-up will look like a big number".

 

The proportion of online spending reduced to 31.8% in June from the record 33.3% reported in May, but was well up on the 20% reported in February, said the ONS.

 

Meanwhile, a survey measuring new orders, employment and business sentiment in the services and manufacturing sectors indicated a return to growth during June.

 

The "flash" - or preliminary - Purchasing Managers' Index (PMI), compiled by IHS Markit and CIPS, rose to 57.1 in July, up sharply from 47.7 last month.

 

It was the first time since February that it was above 50, indicating expansion.

 

However, Markit's chief business economist, Chris Williamson, cautioned: "While the recession looks to have been brief, the scars are likely to be deep."

 

One businesswoman who has taken advantage of the move to online shopping is Hellen Stirling-Baker of Small Stuff, a Sheffield-based independent retailer.

 

She sells sustainably made toys, gifts and homewares for young children.

 

"Driving my store online is how I have been able to survive," she said.

 

"Offering face-to-face video calling for customers to recreate the in-store experience has been crucial and sales are picking up.

 

"I've also added new services such as local delivery by hand, which really boost engagement."

 

'Hope on the horizon'

Jeremy Thomson-Cook, chief economist at Equals Money, said the retail sector had seen a "V-shaped recovery", echoing remarks by the Bank of England's chief economist, Andy Haldane.

 

"The motto of the British consumer has long been 'When the going gets tough, the tough go shopping' and it seems like June encapsulated that well," he added.

 

Silvia Rindone, retail partner at EY, said the latest figures showed there was "some hope on the horizon", with consumers beginning to show "a cautious optimism".

 

But she added: "We're still not past the pandemic and getting back to 'normal' will still take time.

 

"With face coverings now compulsory in England's shops, physical retailers need to continue to focus on reassuring customers."--BBC

 

 

 

Amazon, Google and Wish remove neo-Nazi products

Amazon, Google and Wish have removed neo-Nazi and white-supremacist products being sold on their platforms following an investigation by BBC Click.

 

White-supremacist flags, neo-Nazi books and Ku Klux Klan merchandise were all available for sale.

 

Algorithms on Amazon and Wish also recommended other white-supremacist items.

 

All three companies told the BBC that racist products were prohibited on their platforms.

 

Oren Segal from the Anti-Defamation League (ADL), an anti-hate organisation, said the companies needed to "constantly be on top of what the algorithm is recommending".

 

He said algorithms had to be "taught to be responsible".

 

One of the items found for sale on Amazon was a white-supremacist flag featuring a Celtic Cross.

 

The ADL said the image featured on the flag was "one of the most common white-supremacist symbols"

 

One shopper had left a "review" of the product in June, stating: "This is a neo-Nazi flag. Amazon should not be profiting from this."

 

However, another reviewer said the flag would be "good for use in parades" and thanked Amazon for "making it happen".

 

Amazon's algorithms recommended another controversial flag that shoppers had "frequently bought together".

 

Both symbols were worn by the Christchurch gunman when he killed 51 people in 2019.

 

Other products featuring a burning rainbow flag, similar to the one used by the LGBT community, were also found on Amazon.

 

All of these products have now been taken down by Amazon.

 

Online retailer Wish has also taken down Ku Klux Klan-themed products, after being contacted by the BBC.

 

On the page for a KKK-themed cartoon, Wish recommended "related items" including a hood and a Celtic Cross.

 

Products related to the Boogaloo movement were also found for sale on Amazon, Google and Wish.

 

The Boogaloo group is a far-right libertarian militia in the US. Several people linking themselves to the group have been charged with terrorism offences, and the murder of state officials in the US.

 

All three platforms removed the Boogaloo content after being contacted by the BBC.

 

Google also removed racist content from its Google Books and Google Play stores.

 

The think tank Demos has raised concerns that online algorithms can push shoppers towards hateful content.

 

"It often takes human investigation to work out that people are being led down this path," said Josh Smith of Demos.

 

How have the companies responded?

Amazon told the BBC: "The products in question are no longer available and we've taken action on the bad actors that offered the products and violated our policies."

 

Google told the BBC: "We don't allow ads or products that are sold on our platforms that display shocking content or promote hatred. We enforce these policies vigorously and take action when we determine they are breached."

 

Wish said: "We are working hard to remove these items and taking additional steps to prevent such items appearing again."--BBC

 

 

 

 

Goldman Sachs settles 1MDB scandal with Malaysia for $3.9bn

Goldman Sachs has reached a $3.9bn (£3bn) settlement with the Malaysian government for its role in the multi-billion-dollar 1MDB corruption scheme.

 

The deal resolves charges in Malaysia that the firm had misled investors when it helped raise $6.5bn for the country's 1MDB development fund.

 

Prosecutors say billions of dollars were ultimately stolen - including by some of the bankers involved.

 

Goldman said the deal was "an important step" towards resolving the matter.

 

"There are important lessons to be learned from this situation and we must be self-critical to ensure that we only improve from the experience," it added.

 

The settlement - the largest reached so far in the scandal - includes a $2.5bn cash payout by Goldman. The firm also said it would guarantee that the government would receive at least $1.4bn from money recovered from the scheme.

 

"This settlement represents assets that rightfully belong to the Malaysian people," said Malaysia's new minister of finance, Tengku Dato' Sri Zafrul Aziz.

 

He said the deal meant the government had now recovered more than $4.5bn - roughly the amount prosecutors say was stolen - and settling the charges, brought in 2018, meant recovering funds would not be "held up by lengthy and costly court battles and legal process".

 

What is the 1MDB scandal?

The charges stem from bond sales that Goldman arranged in 2012 and 2013 which raised money for the state fund.

 

Authorities say billions of dollars were ultimately embezzled to buy art, property, a private jet and super-yacht - and even to help finance the Wolf of Wall Street film, starring Leonardo DiCaprio.

 

The scandal has prompted investigations around the world and played a role in the election defeat of Malaysia's former prime minister, Najib Razak, who was accused of pocketing $700m (£517m) from the fund he set up.

 

He has denied wrongdoing. A verdict is expected later this month.

 

What does this mean for Goldman?

The scandal has clouded reputation of Goldman Sachs, which saw more than a dozen of its executives charged in Malaysia last year for their handling of the matter.

 

The settlement resolves those claims and protects the firm from further charges.

 

The bank still faces possible charges in the US related to the deal, which American prosecutors say earned the firm about $600m.

 

"If [the settlement with Malaysia] were it, this would be old news and we'd all move on," wrote Evercore ISI analyst Glenn Schorr on Friday.

 

"Unfortunately, [Goldman] will still have to settle with the DOJ to move on completely and if past major foreign corrupt practice cases are a good indicator (which we think they are), the DOJ settlement could wipe out most of the great second quarter they just put up."

 

Last year, a former Goldman partner, Tim Leissner pleaded guilty in the US to conspiring to launder money and violate American anti-bribery laws.

 

A Malaysian former managing director at the bank, Ng Chong Hwa, has also been charged in the US and Malaysia over the scandal.

 

The scandal's alleged mastermind, jet-setting Malaysian financier Low Taek Jho, has also been charged in Malaysia and the US. Mr Low has denied any wrongdoing, and his current whereabouts are unknown.--BBC

 

 

 

 

Almost 1,000 apply for receptionist job in Manchester

When a Manchester restaurant advertised for a receptionist on Monday, the owners were shocked to received almost 1,000 applicants in a day.

 

They had only expected about 30 people to be interested.

 

The UK's hospitality sector has been savaged by the coronavirus crisis, with many bars, restaurants and hotels struggling.

 

"It really is quite sad to see the amount of people that are looking for a job," the company said.

 

"On Monday we placed an advert for a receptionist role for our 20 Stories restaurant in Manchester," Carol Cairnes, director of people at the restaurant's owner D&D London, told BBC Radio 4's Today programme.

 

"The next day, James, our head of talent, went to look at applications and was amazed to find that in less than 24 hours we had 963 people apply."

 

Normally for such a role they'd expect at that stage to receive about 30 applications, she said.

 

"Going through the candidates who applied, we could see there were a lot of very talented and highly-qualified people that applied for the role, including some restaurant general managers."

 

Hospitality jobs have proved highly-sought-after as thousands of roles have been slashed by restaurant groups.

 

In the last two weeks, popular chains such as Pizza Express and Azzurri have kick-started restructures of their businesses that are likely to lead to more than 2,000 job losses and hundreds of restaurant outlets closing.

 

Social-distancing rules have also led to businesses reducing staff numbers, as they have re-opened with less space, meaning they can cater for fewer customers at a time now.

 

Over-qualified applicants

Other businesses have reported similar experiences this week.

 

Emily Pringle of Alnwick-based fragrance company Notes of Northumberland told the BBC that she received 583 applicants when she advertised a 16 hour-a-week retail job.

 

"Most of the applicants were massively over-qualified," she said.

 

"It's a very sad sign of the times. A large number of people have been educated to PhD level and applying for our job, which is telling about the current state of the job market."

 

In Swansea, Sarah John, founder of Boss Brewing, said that her firm had advertised for a bar manager two days before and were surprised by the number and quality of applicants.

 

"We would normally only get five or so responses, but have had 35 people apply already and the calibre of applicants is really high," she said.

 

Most of the applicants had worked at reasonably well-known businesses, but have either lost their jobs, or are still furloughed and worried about their future, she added.

 

"There have also been quite of a lot of people who said they would be happy to relocate to work," she said.

 

"We're in Swansea and have had applications from people from as far as Manchester, Leeds and Cornwall."

 

Vacancies have halved

Meanwhile, when a London pub manager posted an advert for a £9-an-hour bar job last week, he was so overwhelmed by the response that he took to Twitter to report it.

 

Mick Dore, general manager of the Alexandra pub in Wimbledon, said: "I don't want to alarm anyone about the economy or anything, but I advertised two bar jobs at 16:30 on Thursday. We've had well over 400 applicants. Gulp."

 

He added: "We'd normally get a dozen or so sensible replies."

 

Research by the Institute for Employment Studies this week found that the total number of live job vacancies across the country now stands at 433,000.

 

That's less than half of the number in February, indicating that there's a long way to go in the recovery for the UK job market.

 

"Without doubt, this is now the toughest jobs market in a generation, and there are no signs yet of a significant recovery," said Tony Wilson, director of the Institute for Employment Studies.--BBC

 

 

 

 


 


 


 

 


 

INVESTORS DIARY 2020

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


Proplastics

AGM

Virtual

23 July 2020 | 10am

 


NMB

AGM

Virtual

28 July 2020 | 10am

 


FMP

AGM

Ground Floor, First Mutual Park, 100 Borrowdale Road, Borrowdale

29 July 2020 | 9:30am

 


FML

AGM

Ground Floor, First Mutual Park, 100 Borrowdale Road, Borrowdale

29 July 2020 | 11:30am

 


ZBFH

AGM

Board Room, 21 Natal Road, Avondale

30 July 2020 | 10:30am

 


OK Zimbabwe

AGM

Virtual

30 July 2020 | 3pm

 


ZHL

AGM

virtual

31 July 2020 |

 


Delta

AGM

Virtual, Head Office, Northridge Close, Borrowdale

31 July 2020 | 12:30pm

 


Zimbabwe

National Heroes Day

Zimbabwe

10  August 2020

 


Zimbabwe

Defence Forces’ Day

Zimbabwe

11  August 2020

 


CBZ

AGM

Virtual

14  August 2020 | 6pm

 


 

 

 

 

 


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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