Major International Business Headlines Brief::: 02 June 2020

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Major International Business Headlines Brief::: 02 June 2020

 


 

 


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ü  South African Airways rescue plan features more bailouts

ü  Absa PMI rises in May as economic activity edges up

ü  Lagos court rulings complicate Nigeria's plan for oilfield licensing
round

ü  S.Africa's Standard Bank flags more than 20% fall in H1 earnings

ü  Zambia's CEC to discontinue power supply to Konkola Copper Mines after
talks fail

ü  Tullow Oil says 58 workers test positive for COVID-19 offshore Ghana

ü  Ethiopia passes supplementary budget to help absorb virus impact

ü  Congo suspends board and management of state diamond miner MIBA

ü  Asia's fishermen and farmers go digital during virus

ü  No early return for UK tourists, says Spain

ü  Restrict toilet access on flights, new rules suggest

ü  Customers queue for hours as Ikea reopens 19 shops

ü  Manufacturers urge bailout as sector suffers

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


South African Airways rescue plan features more bailouts

JOHANNESBURG (Reuters) - A draft rescue plan for South African Airways (SAA)
contains about 4.6 billion rand ($263.4 million) of new bailouts as part of
a restructuring aimed at saving the airline from collapse, a copy of the
plan showed on Monday.

 

State-owned SAA entered business rescue - a local form of bankruptcy
protection - in December after almost a decade of financial losses, with its
fortunes deteriorating when the COVID-19 pandemic forced it to halt all
commercial passenger flights in March.

 

The government said in April that it would not provide further funding, but
the draft rescue plan drawn up by the administrators and made public by the
Democratic Alliance opposition party on Monday said the government had
agreed to fund the restructuring. [nL8N2BH8IB] [nL5N2C2644]

 

The administrators confirmed the document seen by Reuters is genuine, adding
that its publication has been postponed to June 8 and that it is “for
discussion purposes only” while they await comment from affected parties.

 

The Department of Public Enterprises said the government had received the
draft plan but had yet to discuss it.

 

“No decisions have been taken on some of the proposals it contains,” the
department said in a statement. “We will review the plan, explore various
funding options and communicate our decisions.”

 

MINISTRY PRESSURE

The administrators last week said they were revising the plan after the
government submitted a restructuring proposal for them to consider.

 

The state enterprises ministry has been pressuring the administrators to
salvage SAA in some form after an earlier version of their plan proposed
that the airline be wound down.

 

The latest draft, dated May 31, said that a working capital injection of at
least 2 billion rand is needed for the restructuring, plus a further 2
billion rand to fund employee layoffs and an allocation of at least 600
million rand to repay some creditors.

 

That is on top of 16.4 billion rand the government set aside in February to
repay SAA’s guaranteed debt and to cover debt-servicing costs.

 

The draft plan proposed that the airline’s workforce be halved to about
2,500 while also reducing its fleet by half to about 20 aircraft in the next
few years.

 

The administrators said that prior to COVID-19, they had been speaking to
three parties potentially interested in becoming a strategic equity partner
or forming an alliance agreement with SAA.

 

($1 = 17.4612 rand)

 

 


 <mailto:info at bulls.co.zw> 

 


Absa PMI rises in May as economic activity edges up

JOHANNESBURG (Reuters) - South Africa’s seasonally-adjusted Absa Purchasing
Managers’ Index (PMI) expanded in May with factories gradually restarting
activity as the coronavirus lockdown eased, helping to lift production and
sales.

 

The index, which gauges manufacturing activity in Africa’s most
industrialised economy, rose to 50.2 points in May from 46.1 points in
April.

 

On Monday, South Africa further eased the lockdown that has been in place
since late March, allowing more people out for work, worship or shopping,
and allowing mines and factories to run at full capacity.

 

Africa’s most industrialised economy was already in recession when the
pandemic struck. The economy is expected to shrink 7% this year by the
central bank, but economists expect an even deeper recession as well as deep
job losses.

 

The PMI report showed the business activity sub-index rose to 43.2 points in
May from an all-time low of 5.1 index points in April. The new sales
subcomponent also rose but remained below the 50-point mark dividing
contraction from expansion, while the employment index was largely flat at
26.8.

 

“The sharp rise in the business activity index in May is relative to
virtually nothing in April and still suggests very subdued overall activity
levels,” economists at Absa said.

 

“Worryingly, some respondents indicated that whereas the lockdown
regulations in May would have allowed for a further ramp-up of production,
there was not sufficient demand to warrant this.”

 

 

 

Lagos court rulings complicate Nigeria's plan for oilfield licensing round

LAGOS (Reuters) - Judges in Lagos have blocked Nigeria’s efforts to revoke
two oilfield licences, court documents seen by Reuters showed, a move that
could compromise a full licensing round for marginal fields which the
government is aiming to launch as early as this month.

 

Marginal fields are smaller oil blocks that are typically developed by
indigenous companies. Nigeria had revoked the licences so these fields could
go into the new licensing round - the first marginal field round since 2002
- which the country hopes will boost oil output and bring in much-needed
revenues from fees associated with the licences.

 

The Ororo field, OML 95, and the Dawes Island Marginal Oil Field, formerly
called OML 54, were among 11 licences revoked by the Department of Petroleum
Resources in April.

 

All 11 were set to be included in a total of 56 fields in the marginal field
licensing round.

 

Two different judges in Lagos granted decisions on May 27 that halt the
inclusion of the two fields in any licensing round, the court documents seen
by Reuters showed.

 

Potential legal challenges relating to the other licences revoked in April
mean that all of the 11 licences could potentially be left out of the round,
two sources familiar with the matter said.

 

The DPR said it could not comment on a matter that was ongoing before the
court. The Ministry of Petroleum Resources did not immediately comment on
the rulings.

 

Owena Oil and Gas Ltd, said in its lawsuit that the DPR revoked its OML 95
licence “without recourse to the plaintiff,” court documents seen by Reuters
showed. Eurafric Energy Ltd. challenged the revocation of Dawes Island and
said it had spent money developing the asset, the court documents showed.

 

Owena Oil and Eurafric Energy were not immediately reachable for comment.

 

Nigeria said last month it would delay major licensing rounds due to
coronavirus disruptions, more than halving its projected revenue from
signature bonuses to 350 billion naira ($972.22 million) from 939 billion
naira originally expected. But it planned to accelerate the licensing rounds
for marginal fields.

 

Nigeria has not held a major licensing round since 2005.

 

 

 

S.Africa's Standard Bank flags more than 20% fall in H1 earnings

JOHANNESBURG (Reuters) - Standard Bank said on Monday half-year earnings are
expected to be more than 20% down on the previous year due to the impact of
the coronavirus pandemic.

 

The bank, Africa’s largest by assets said headline earnings per share
(HEPS), the main profit measure used in South Africa, for the six-month
period ending June, 30 is expected to be more than 20% lower compared with
HEPS of 837.4 cents in the year ago period.

 

“There remains a high degree of uncertainty regarding the impact that the
Covid-19 pandemic and the associated governmental responses will have on the
economies in the markets in which the group operates, and in turn, on the
group,” the company said.

 

Interim results are expect to be released on Aug. 20.

 

 

 

 

Zambia's CEC to discontinue power supply to Konkola Copper Mines after talks
fail

LUSAKA (Reuters) - Zambia’s Copperbelt Energy Corp.(CEC) said it will stop
supplying power to Vedanta’s local unit Konkola Copper Mines Plc (KCM) from
Monday after talks on extending their supply agreement broke down over debt
owed to CEC.

 

Zambia’s Energy Minister Mathew Nhkuwa told Reuters that KCM would now get
its power directly from state-owned utility Zesco Ltd, which until now has
sold electricity to CEC for onward supply to KCM.

 

The power supply agreement between CEC and KCM came to an end on March 31
and was only extended through mutual agreement until May 31, CEC said in a
statement on Sunday. KCM owes the energy company $132 million in debt, CEC
said.

 

“Negotiations for its further extension have broken down, despite CEC’s best
efforts in good faith towards securing a new contract,” the statement said.

 

KCM officials were not immediately available for comment.

 

In trying to agree the new contract, CEC sought to resolve KCM’s outstanding
debt of $132 million as well as obtain a firm commitment from KCM regarding
the timely payment of electricity charges going forward, it said.

 

CEC said it had informed KCM that its supply will be discontinued, adding
that this was the only option available after the talks failed to resolve
KCM’s outstanding debt and obtain a firm commitment from KCM regarding the
timely payment of electricity charges going forward.

 

“Due care has been taken to make certain that the process of discontinuing
supply ensures the safety of personnel and equipment and preserves the
integrity of the mine,” CEC said.

 

India’s Vedanta owns about 80% of KCM.

 

While Zesco will now transport power to KCM, it will still travel through
CEC power lines. Nkhuwa said CEC would be breaking the law if it refused to
transport the power.

 

“I issued a statutory instrument on Friday declaring the CEC lines a common
carrier. CEC is therefore obliged to transport the power from Zesco to KCM
at a fee,” Nkhuwa said.

 

 

 

Tullow Oil says 58 workers test positive for COVID-19 offshore Ghana

ACCRA (Reuters) - Fifty-eight workers tested positive for COVID-19 at an oil
production facility run by Tullow Oil off Ghana’s Atlantic coast, the
company said in a statement on Friday.

 

Fifty-seven workers tested positive on a support vessel for a floating
production and storage (FPSO) tanker. Another worker tested positive on the
FPSO itself, but production remains unaffected, the company said.

 

All infected personnel have been brought onshore for isolation and
treatment, it said.

 

Ghana has reported more than 7,600 cases of the new coronavirus and 34
deaths, the second highest number of cases in West Africa after Nigeria,
although it has conducted far more tests than any other country in the
region.

 

Earlier this month, 695 workers tested positive at a fish-processing factory
in the seafront city of Tema, raising fears that the virus was spreading out
of control.

 

 

 

 

Ethiopia passes supplementary budget to help absorb virus impact

ADDIS ABABA (Reuters) - Ethiopia’s parliament on Friday approved a
supplementary budget worth 48.56 billion birr ($1.43 billion) for the
financial year ending July to help the economy weather the impact from the
novel coronavirus.

 

Authorities have put in place several measures to curb the spread of the
virus including banning public gatherings, closing schools and borders which
have hurt economic activity.

 

“The economy is being highly impacted due to corona and the government have
to assist,” Finance Minister Ahmed Shide told lawmakers.

 

He said 30 million people in the country more than 110 million now needed
humanitarian assistance as result of economic disruptions triggered by the
coronavirus outbreak.

 

The Horn of Africa country has recorded 831 cases of COVID-19 and seven
deaths.

 

Shide said the money in the supplementary budget will be used to provide
humanitarian assistance and to buy medical supplies to help in the fight
against COVID-19.

 

A document from Prime Minister Abiy Ahmed’s office presented to parliament
showed Ethiopia’s economy is now expected to grow by 5-6% in 2019/2020 which
ends July 7 from a previous forecast of 9%.

 

The supplementary budget will be funded with a mix of external and domestic
loans, Ahmed said.

 

($1 = 34.0100 birr)

 

 

Congo suspends board and management of state diamond miner MIBA

DAKAR (Reuters) - The Democratic Republic of Congo has suspended the board
of directors and management of state-controlled diamond mining company MIBA,
after an audit revealed significant irregularities, the government said in a
statement.

 

The audit identified a host of problems including compliance, governance,
production and financial management, the statement by Congo president’s
office said following a council of ministers meeting on Friday.

 

It added that Congo’s mines ministry will propose measures to revamp the
company.

 

Founded in 1961, MIBA was formerly a jewel in minerals-rich Congo’s minerals
industry, with gold, nickel and cooper in its portfolio. However, years of
mismanagement, illegal mining, smuggling, and political instability have
hobbled the company.

 

 

 

 

Asia's fishermen and farmers go digital during virus

During a national lockdown, farmers from Malaysia's Cameron Highlands were
faced with throwing away tons of fresh vegetables.

 

Wet markets were shut down as social restrictions were introduced to stop
the virus spreading.

 

E-commerce was their saviour as they went online for the first time to
connect with customers.

 

It has been a similar story for farmers and fishermen across South East Asia
as they embrace a new way to sell.

 

Malaysia's national lockdown, which it calls a Movement Control Order (MCO),
has been in place since March and was recently extended to 9 June.

 

Steve Teoh is the owner of the Deoness Plantation in Cameron Highlands,
200km north of Malaysia's capital Kuala Lumpur, where he sells corn and
flowers.

 

"When the Movement Control Order happened, I was looking at probably
throwing away the harvested flowers since the demand abruptly stopped
overnight as florist shops had to close," he said.

 

Thankfully, Singapore-based e-commerce platform Lazada stepped in to bring
Mr Teoh onboard and connected him with an online florist to sell his flowers
to a new customer base.

 

The company also helped other farmers facing the same problem in Malaysia,
with piles of fresh fruit and vegetables they couldn't sell in the
traditional way. In the first weekend of the lockdown, more than 1.5 tons of
vegetables were sold, according to Lazada.

 

Indonesian farmer Pak Opik holds up a sign that says "We go to work for you,
so you can have vegetables to stay healthy".

"Without an online channel, I will probably have to throw away my flowers,"
added Mr Teoh.

 

Audrey Goo is the owner of Malaysia-based MyFishman, a fresh seafood
subscription and delivery service in Malaysia. She also faced the problem of
not being to sell at wet markets or deliver fresh fish before she joined the
e-commerce platform.

 

"Our business has definitely been affected by Covid-19, given that we aren't
able to supply to restaurants, wholesale fish markets, grocery stalls or
coffee shops, as most had to close, but being able to sell online is still
keeping us in business," she said.

 

During the MCO, MyFishman saw sales increase by about 150% during the first
two weeks as people stocked up with food at home.

 

Lazada said from mid-January to mid-May fresh produce orders have more than
doubled in the South East Asia region.

 

"Businesses in every industry and sector, including those in agriculture,
are pivoting online to capture the new opportunities arising from changing
consumer preferences," said Pierre Poignant, group chief executive at
Lazada.

 

Challenging times

In Indonesia, farming cooperative Rumah Sayur Group has ventured online to
help 2,500 farmers from 89 villages sell their fresh produce. The group
previously sold direct to supermarkets, hotels, restaurants and cafés in the
Greater Jakarta area.

 

But when the pandemic hit, sales dropped by more than 60%. That's when they
turned to e-commerce.

 

Indonesian farmer Pak Opik mostly sells "exotic" vegetables such as purple
cabbages and Japanese cucumbers in traditional wet markets in the Jakarta
area and West Javan city of Bandung. "The current pandemic situation is very
challenging for us farmers, as we are used to selling our products through
the traditional channels," he said.

 

But through the group's e-commerce partnership "our harvests can still reach
consumers nationwide - especially during the current situation where people
are unable to go to the market like they used to".

 

In Thailand, Lazada is working with the government to help local farmers who
normally export their fruit find new buyers locally. The Thai government and
Lazada are looking to onboard up to 50 fruit sellers during the country's
Golden Fruit Month campaign in June.

 

Chinese e-commerce giant Alibaba has opened up its Taobao Live platform to
farmers for free along with its Foodie Livestream channel to connect farmers
across China with its 41 million followers. The Jack Ma-founded tech firm
says 15m kilos of products were sold during the first three days of
livestreaming.--BBC

 

 

 

No early return for UK tourists, says Spain

Spain's tourism minister has cast doubt on the prospect of an early return
by UK holidaymakers to Spanish beaches.

 

María Reyes Maroto said British coronavirus figures "still have to improve"
before Spain could receive tourists from the UK.

 

Last week, the Spanish government said foreign visitors would no longer have
to undergo a two-week quarantine from 1 July.

 

But Ms Reyes Maroto said tourist activity would be resumed "gradually".

 

"For Spain, it is very important that the first tourists are tourists who
are in the same epidemiological situation as us, and that they are able to
fly safely," she said in a statement.

 

"Regarding the United Kingdom, there have been talks with tour operators but
British data still have to improve, because it's important to ensure that
the person comes well and then returns well."

 

The tourism minister said that as soon as conditions improved in the UK,
Spain would be ready to receive British citizens "with the same hospitality
as ever".

 

Spain normally attracts 80 million tourists a year, with the sector
providing more than 12% of the country's GDP.

 

Opening up the holiday market again before the summer season is over is seen
as crucial to the Spanish economy.

 

However, just as Spain prepares to end its quarantine policy, the UK is set
to impose a 14-day quarantine of its own for arrivals from 8 June, including
returning holidaymakers.

 

That would mean that any tourists coming home after taking holidays in most
foreign destinations would have to spend two weeks in self-isolation.

 

Other tourist destinations are also beginning to open up, with Greece
announcing that flights to Athens and Thessaloniki airports will resume on
15 June - but only from those parts of Europe that have escaped the worst of
the pandemic.

 

Other Greek airports are due to reopen on 1 July.

 

At the same time, tourism authorities in the Algarve region of Portugal have
said its beaches will be open for tourists on 6 June, with flights resuming
to the region's international airport, Faro, from the UK and Ireland.--BBC

 

 

 

Restrict toilet access on flights, new rules suggest

Air passengers should have restricted access to toilets on flights as part
of wide-ranging coronavirus safety recommendations, a UN agency has said.

 

The International Civil Aviation Organization (ICAO) guidelines also include
limiting or suspending food and drink services on short-haul flights.

 

The new guidelines are designed to protect air passengers and workers from
the Covid-19 virus as lockdown eases.

 

Airlines could see revenues plunge £314bn in 2020, the ICAO added.

 

The aviation industry has been struggling as lockdown measures around the
world have limited flights and passenger numbers.

 

As those travel restrictions begin to ease, the ICAO has issued guidelines
for governments, with the aim of airlines and airports having a unified
response when trying to keep passengers and staff safe from coronavirus.

 

How safe is it to get on a plane?

What will flying look like after lockdown?

The ICAO stopped short of saying that passengers must be socially-distanced
on planes, but it did say they should be seated separately "when occupancy
allows it".

 

Passengers should travel as lightly as possible, with small hand luggage
stowed under their seat. Newspapers and magazines should be removed, and
duty free sales should be temporarily limited, the UN's civil aviation body
said.

 

Short-haul food and drinks services should be limited or suspended, or be
sold in sealed, pre-packaged containers.

 

Access to toilets should also be restricted, the ICAO said. Where possible,
one toilet should be set aside for use by cabin crew, and passengers should
use a designated lavatory based on which seat they have.

 

'Biometrics for duty free'

The new recommendations cover airports, aircraft, crew and cargo.

 

In general, face masks should be worn in line with public health guidelines,
and social distancing should be made possible where it is feasible, the UN
body said.

 

Areas should be routinely cleaned, and passengers should be checked for
signs of coronavirus, by screening temperatures, for example. Contact
tracing methods should also be explored.

 

At airports, staff should have adequate personal protective equipment, which
"could include gloves, medical masks, goggles or a face shield, and gowns or
aprons," the guidelines said.

 

Passengers should be encouraged to check-in before getting to the airport,
and to use mobile boarding passes.

 

Airports should also use contactless technology, including facial and iris
scanning, for "self-service bag drops, various queue access, boarding gates
and retail and duty-free outlets", the guidelines say.

 

"This will eliminate or greatly reduce the need for contact with travel
documents between staff and passengers," the UN agency added.

 

The recommendations are extensive and detailed - a blueprint for aviation in
the Covid-19 era; and one fact stands out. Flying, for a while at least, is
not going to be a whole lot of fun.

 

>From the moment you arrive at the terminal building, armed with your
pre-printed boarding pass and luggage tags, human contact will be limited,
social distancing the norm. Masks will be obligatory, and supplies of hand
sanitiser everywhere.

 

If you don't like potentially intrusive technology, tough - ICAO suggests
that "contactless biometrics such as facial or iris recognition " should be
used wherever possible, to reduce physical contact between staff and
passengers.

 

And it continues on board the plane: there are instructions to "limit
interaction on board" - so no striking up a conversation with your neighbour
- to reduce or suspend food and drink services, and to restrict lavatory
access.

 

What ICAO is trying to do here is create a common and consistent framework
for the industry to follow around the world - allowing people to travel,
while placating even the strictest health authorities.

 

It insists the new measures should be temporary.

 

But for the moment, anything that was left of the once-lauded romance of
flying looks set to disappear in a pungent cloud of disinfectant.

 

Airlines and aerospace firms have been struggling amid the coronavirus
crisis.

 

At the beginning of May, Virgin Atlantic said it would axe 3,000 jobs and
quit Gatwick. Later in the month, engine-maker Rolls Royce said it would cut
9,000 jobs.

 

There has been a huge reduction in air travel, with daily flights down about
80% since the start of the year.

 

But now carriers are making plans to get airborne again, with plans to
reintroduce some schedules.--BBC

 

 

 

Customers queue for hours as Ikea reopens 19 shops

Thousands of shoppers have queued for hours to get into Ikea stores after
the furniture giant reopened 19 shops in England and Northern Ireland on
Monday.

 

They had been warned that only a limited number of shoppers would be
welcomed with only one adult and one child from a household allowed in.

 

But Ikea was forced to shut car parks at some stores to help ease pressure.

 

In Warrington, people arrived at 05:40 to start queuing for the Ikea store
to reopen at 09;00.

 

The company praised shoppers for their patience.

 

"Where we've seen strong demand we've taken appropriate decisions to open
early for browsing and to temporarily close our car parks to help ease
pressure and reduce waiting times," Ikea said.

 

"We're incredibly grateful to the public in playing their part to help keep
everyone safe."

 

Queues across the country

In Warrington, a line of more than 1,000 people snaked around the car park
with similar scenes at Ikea's Wembley store.

 

On Twitter, shoppers complained of "five-mile queues" in Croydon, Wembley
and outside of London.

 

West Midlands police took to Twitter to warn people of large queues at
Ikea's Wednesbury branch. The police urged: "Please consider if you need to
go there today as you may be in for a very long wait."

 

There were long queues outside the Belfast branch, noted BBC reporter Mark
Simpson.

 

In Manchester one shopper (who didn't want to be named) told the BBC that
despite queues outside, inside the shop it was easy to maintain
social-distancing.

 

"It's very busy with every entrance manned by staff with walkie talkies who
were managing the long queues that had formed," the shopper said.

 

"We arrived just after 11:00 and had to queue for about an hour and a half
before we were allowed into the store.

 

"However, once inside though the store was much emptier than usual, so it
was very easy to stay a safe distance from the other shoppers."

 

Risky to health

But some criticized the long queues as a sign of runaway consumerism.

 

One Twitter user said: "Don't understand how a person sees this Ikea queue
and actually joins it, rather than
 heading home for a beer."

 

Others warned that people queuing were risking catching coronavirus.

 

One said: "People shopping at Ikea moaning about the people in the queue at
Ikea today. It's the 'it's not me, it's everyone else' attitude that will
cause the inevitable second wave.

 

"Wear a mask and only go out if you have to. It's not that hard, surely?"

 

Safety measures

An Ikea spokesperson said: "The health and safety of our customers and
co-workers remains our top priority, which is why we put extensive and
enhanced measures in place to create a safe and comfortable experience."

 

The measures include limiting numbers of customers in stores, a staggered
entry system, screens in key areas and social-distancing wardens. All play
areas and the restaurants have remained closed.

 

Long queues form as Ikea in Belfast reopens

Ikea to begin reopening stores

Which shops are reopening?

"We ask that these measures are respected at all times," Ikea said.

 

It had asked customers to "come prepared with ready-made lists and their own
bags to help ease waiting times". It also pleaded with customers wishing to
return items, "to do so at a later date".

 

"While frustrating, these planned measures are in place to ensure everyone's
safety," Ikea said.

 

"To avoid queues, we'd ask those purely wishing to browse, to visit us in
the coming weeks."

 

Meanwhile, new footfall data from retail analyst Springboard has shown a
sharp rise in the number of shoppers as a result of lockdown restrictions in
England being eased.

 

Overall, shopper numbers were up 36% on last week's Bank Holiday Monday and
21% on the week before that. High Streets saw the largest increase, with
footfall up 44% on last week and 24% on the week before.

 

The increases have come despite only limited reopening allowed in England.

 

Scotland, Northern Ireland and Wales have not yet allowed similar shops to
open again.--BBC

 

 

 

Manufacturers urge bailout as sector suffers

The coronavirus crisis has left many manufacturers on the "cliff edge" and
in need of government intervention, an industry body has warned,

 

The government should step in to support key sectors, in line with other
countries, Make UK urged.

 

It said support should especially be targeted at the aerospace, carmaking
and steel sectors.

 

Its plea came as new figures showed the sharp downturn in UK manufacturing
continued last month.

 

The closely watched IHS Markit/CIPS Purchasing Managers' Index (PMI) for the
sector gave a reading of 40.7 for May.

 

It was up from April's record low of 32.6, suggesting the sector was not
declining as quickly as before. Anything below 50 indicates contraction.

 

Rob Dobson, director at IHS Markit, said: "Those who typically see the glass
half-empty will note that the UK manufacturing sector remained mired in its
deepest downturn in recent memory.

 

"However, the glass-half-full perspective is one where the rate of
contraction has eased considerably since April, meaning - absent a
resurgence of infections - the worst of the production downturn may be
behind us."

 

Uncharted territory

Make UK chief executive Stephen Phipson said: "We are now in such uncharted
territory that what would until recently been thought of as unthinkable is
now very much the reality.

 

"While the support schemes in operation are providing significant support to
the economy, there are some sectors and companies who are fundamentally
sound businesses and were trading positively before the pandemic.

 

"Instead, however, they have now been driven to the cliff edge by the nature
of this crisis and may not survive without direct government intervention."

 

Chancellor in delicate game of economic Kerplunk

Mr Phipson said the firms in question were in "key strategic sectors for the
UK internationally" and that the government should therefore "intervene
directly to provide support and ensure their survival".

 

Make UK said its research showed that almost three-fifths of manufacturers
believed it would take more than a year for trading conditions to return to
normal.--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> 

 


 

 


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contents or otherwise arising in connection therewith. Recipients of this
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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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Bulls n Bears 

 

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