Major International Business Headlines Brief::: 05 June 2020

Fri Jun 5 07:05:05 CAT 2020

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Major International Business Headlines Brief::: 05 June 2020

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

ü  South African miners seek return of foreign mineworkers

ü  Kenya private sector up slightly in May, outlook poor -PMI

ü  S.Africa's FirstRand warns of over 20% profit fall

ü  Emerging FX recovering but won't wipe out coronavirus losses this year

ü  AngloGold Ashanti's Mponeng mine restarts slowly after COVID-19 closure

ü  ExxonMobil's delayed FID on Mozambique project should come next year -official

ü  Mali's industrial gold production expected to slump in 2020

ü  S.African airlines look to restart operations, see slow recovery

ü  Coronavirus vaccine: AstraZeneca boosts potential supply to 2bn

ü  Retailer Gap posts near-$1bn loss due to coronavirus

ü  Eurozone in fresh emergency action to boost economy

ü  Bentley: Luxury carmaker to cut up to 1,000 jobs

ü  BA refuses to meet Home Secretary over quarantine plans

ü  Louis Vuitton casts doubt over $16bn Tiffany takeover

ü  German stimulus package hands families €300 for each child

ü  Gambling loophole 'must be shut down'

 <mailto:info at bulls.co.zw> 

South African miners seek return of foreign mineworkers

JOHANNESBURG (Reuters) - South Africa’s mining industry is in talks with the government about allowing foreign miners to return to work, the Minerals Council said on Thursday, as output ramps up after the easing of coronavirus lockdown restrictions.

Mines in South Africa, the world’s biggest producer of platinum and chrome and a major gold and diamond producer, have been allowed to run at full capacity since June 1 after a temporary halt since March when a nationwide lockdown began.

The industry body, the Minerals Council, said it had been requested by members to ask the Health Department to allow the return of foreign mineworkers, who make up about 10% of South Africa’s mining workforce.

The industry had so far requested the return of about 9,500 workers, mostly from Mozambique and Lesotho, under strict conditions that included screening them before they leave their home countries and a 14-day quarantine in South Africa, the council said.

“People who fail the screening tests will not be allowed to come” to South Africa, said the council’s senior executive for environment, health and legacies, Nikisi Lesufi.

Final approvals from several government departments were still needed before the foreigners could return, the council said.

South Africa has over 37,000 confirmed coronavirus cases, with 527 cases in the mining industry.

The health ministry did not immediately respond to requests for comment.

 <mailto:info at bulls.co.zw> 

Kenya private sector up slightly in May, outlook poor -PMI

NAIROBI (Reuters) - Kenya’s private sector activity inched up in May after falling sharply a month earlier because of restrictions to curb the spread of coronavirus, but conditions are expected to worsen in coming months, a survey showed on Thursday.

The Markit Stanbic Bank Kenya Purchasing Managers’ Index (PMI) came in at 36.7, higher than April’s 34.8 but still well below the 50 mark that separates expansion from contraction.

“Driving the downturn was a considerable fall in output levels in May, as businesses reported lower activity due to weak sales,” the survey compilers said in a report.

“Demand levels were again impacted by travel restrictions around Nairobi and Mombasa, which meant some firms were unable to acquire inputs.”

Tourism and horticulture, leading sources of foreign exchange, have been hit hard by the coronavirus crisis, as have transport and manufacturing.

By Wednesday, Kenya had 2,093 confirmed coronavirus cases, with 71 deaths. It has imposed a daily curfew, banned public gatherings and asked people not to leave home unless absolutely necessary, as well as halting movement into and out of five regions including the capital, Nairobi.

The survey said many firms cut jobs in May, while exports fell due to travel curbs and lockdowns in overseas markets.

The government has cut its economic growth forecast for 2020 to 3% from 6%, or 2.5% if the crisis worsens. [nL8N2CX3VX]

Last week, the central bank said small and medium-sized businesses needed urgent help to survive, with many at risk of closing by the end of this month. [nL8N2DA3LM]

Firms expect conditions to remain poor over the next year, the survey showed.

“We still expect the epicentre of Covid-19 to be felt in Q2, with respect to economic activity. Business conditions have contracted for five consecutive months now,” said Jibran Qureishi, regional economist for East Africa at Stanbic Bank.

- Detailed PMI data are only available under licence from IHS Markit and customers need to apply for a licence.

S.Africa's FirstRand warns of over 20% profit fall

JOHANNESBURG (Reuters) - South African lender FirstRand said on Thursday its full-year profits were likely to be more than 20% lower than in 2019, due to a spike in bad debts and falling revenues.

The bank expects its headline earnings per share - the main profit measure in South Africa - for the year to June 30 to decline significantly from the 497.2 cents it reported last year.

Emerging FX recovering but won't wipe out coronavirus losses this year

JOHANNESBURG/BENGALURU/BUENOS AIRES (Reuters) - Weakening emerging-market currencies probably won’t regain their coronavirus-induced 2020 losses against the dollar over the coming year, but for now at least they remain on a recovery path, a Reuters poll found.

>From a peak reached early in the year, the emerging-markets currency index weakened over 7.0% to hit 2020 low in late March. It has since recovered with around a 3% gain on bets of a quick economic rebound and more stimulus even as U.S.-China relations deteriorate.

The Turkish lira, South African rand, Russian rouble, Brazilian real and the Indian rupee have recovered over 7%, 12%, 17%, 15% and about 2%, respectively, against the dollar from this year’s intraday lows.

Most of the emerging-market currencies were forecast to extend their recent gains or remain near their current rates over the coming year, the June 1-3 Reuters poll of foreign exchange strategists showed.

Major Latin American currencies and the Indian rupee were expected to retain recent gains against the U.S. dollar over the coming year. [BRL/POLL]

Despite the latest optimism, emerging-market currencies polled on were not expected to recoup even half their losses so far in 2020 and will remain below pre-coronavirus highs at the end of this year.

“As long as there is no bad news, EM can grind higher. But how long can this last in the face of a bleak structural outlook? By the summer, an escalation in geopolitical tensions into the U.S. elections is likely to reassert the weak backdrop,” said David Hauner, head of emerging markets strategy at BofA.

“Sadly, COVID-19 is far from under control in many of the big EMs. Nevertheless, depressed sentiment creates a low bar for positive surprises as economies emerge from the lockdown.”

Many countries have started to ease lockdown restrictions imposed to stop the spread of the virus, which has infected over 6.5 million people globally. But the economic recovery across the world looks unlikely to be a quick one. [ECILT/WRAP]

Still, in response to an additional question, nearly 60%, 30 of 52 strategists, said the recovery in emerging-market currencies for this year was still intact rather than abated or already run its course.

When asked if a yuan devaluation would hurt other emerging- market currencies in the short-term, a majority, 23 of 38, analysts said that risk was “low” or “very low”. The remaining 15 respondents said the risk was “high” or “very high”.

The Turkish lira, though, was predicted to erase all of its recent gains over the coming year, becoming one of the worst performers among its peers.

One of the biggest gainers against the dollar this month among 20 emerging-market currencies tracked by Reuters, the South African rand was expected to weaken over 3.0% to 17.54 to the dollar in six months, but was forecast to gain in a year to 17.00, around where it was trading on Thursday.

But bets in favour of emerging-market currencies have largely been driven by the recent fading allure of the dollar, which was forecast to continue its losing streak. [EUR/POLL]

That was despite the ongoing U.S.-China political tensions, which pushed the Chinese yuan to weaken to its lowest since September, around 7.18 per dollar last week. But it has since gained and was last at around 7.12/$ on Thursday.

The partially-traded currency was forecast to strengthen to 7.07 to the dollar in six months, and to 7.00 in a year. But several risks remain.

“Global headwinds have returned in the form of soured U.S.-China relations and a materialization of what are still currently empty threats from the U.S. could derail the EM currency recovery and favour safe-haven currencies,” said Francesca Beausang, an economist at Continuum Economics.

AngloGold Ashanti's Mponeng mine restarts slowly after COVID-19 closure

JOHANNESBURG (Reuters) - AngloGold Ashanti aims to gradually ramp up to 50% capacity at its Mponeng mine in South Africa after a closure of more than a week because 196 workers tested positive for COVID-19.

The gold miner said it began a phased restart of Mponeng - the world’s deepest mine - on Monday with four crews on the first shift, just 9% of the normal full complement of 44 crews.

“Our aim is a gradual ramp up to 50% capacity,” AngloGold Ashanti spokesman Stewart Bailey said in an emailed statement.

During the closure, the company ensured contact tracing was completed, reviewed protocols at the site, engaged with government and unions, and conducted a deep clean of “key areas”, Bailey said.

The vast majority of those who tested positive remain asymptomatic, and symptoms are mild for those who have them, Bailey added, underlining the difficulty businesses face in clearly identifying the disease and stopping its spread.

All mines in South Africa have been allowed to operate at full capacity from Monday, when the country further eased COVID-19 restrictions which have already likely knocked 8-10% off mine production for this year.

But some workers, especially those employed at deep mines, have raised concerns about returning to work in an environment where social distancing is difficult.

ExxonMobil's delayed FID on Mozambique project should come next year -official

MAPUTO (Reuters) - Exxon Mobil Corp’s final investment decision (FID) on a blockbuster $30 billion gas project in Mozambique’s extreme north should “in principle” come in 2021, the chairman of its National Petroleum Institute (INP) said on Wednesday.

The oil giant postponed its FID for the project, which had been expected this year, in March as the coronavirus outbreak and an oil price slump forced firms to delay projects and slash spending.

“The final investment decision of the Rovuma LNG project has been postponed to, in principle, next year,” INP Chairman Carlos Zacarias told a press conference, referring to the project in the gas-rich province of Cabo Delgado led by Exxon.

When it announced the delay, Exxon did not say when it planned to make a call on FID for the project. An Exxon spokesman did not immediately provide a comment.

Other big oil companies, including France’s Total and Italy’s Eni, are also involved in projects in the region, home to one of the biggest gas finds in a decade.

The projects have the potential to transform the economy of Mozambique, one of the world’s least developed economies. But apart from the coronavirus, the projects are complicated by part from militant Islamists in the province with links to Islamic State.

Mali's industrial gold production expected to slump in 2020

BAMAKO (Reuters) - Industrial gold production in Mali is expected to fall by 8.3% year on year to 59.77 tonnes this year compared with 2019 due to falling output at several mines, Mali’s mines and petroleum ministry said on Wednesday.

It said total gold production is expected at 65.7 tonnes in 2020, including 6 tonnes from the artisanal, or small-scale mining sector, compared with 71.1 tonnes a year ago.

Companies operating in Mali’s mining sector includes Barrick Gold, Resolute Mining, Anglogold Ashanti and B2Gold.

Reserves at Anglogold Ashanti’s Sadiola mine is reaching depletion phase, and will produce 832 kg compared with 4.6 tonnes last year, mines ministry official Mamadou Sidibé told Reuters.

He added that output at Barrick’s Morila mine is expected at 1.9 tonnes, compared with 3.5 tonnes the previous year, while Resolute’s Finkolo mine will produce 440 kg compared 6.6 tonnes in 2019.

Other mines, such as Resolute’s Syama, and B2Gold’s Fekola mines, are expected to boost production, the ministry said.

S.African airlines look to restart operations, see slow recovery

JOHANNESBURG (Reuters) - Two of South Africa’s biggest private airlines will start flying between local airports this month after the government eased lockdown restrictions aimed at containing the coronavirus, but they said a recovery could take at least three years.

Passengers board a South African Airways plane at the Port Elizabeth International Airport in the Eastern Cape province, South Africa, September 30, 2018. REUTERS/Siphiwe Sibeko/File Photo

Airlink has started taking bookings on its website for flights from June 8, while Safair is taking bookings for flights resuming on June 15.

Low-cost state airline Mango, part of the South African Airways (SAA) Group, plans to resume flights on June 15, but it is yet to get final approval from the Department of Public Enterprises, a company spokesman said.

Amid a halt on operations for around two months due to the coronavirus lockdown, airlines have seen their revenues fall to close to zero while continuing to spend money on aircraft maintenance, salaries and debt-service.

Comair, another private airline, is under bankruptcy protection and only plans to restart operations around November. SAA, the national flag carrier, is also under bankruptcy protection and has not yet said when it plans to restart domestic flights.

“We expect that demand will be quite thin,” said Kirby Gordon, spokesman for Safair, which will start operations across four airports - OR Tambo and Lanseria in Johannesburg, King Shaka in Durban and Cape Town International.

Gordon said that Safair planned to fly around 25% of its usual schedule, adding it expected its share of the market to be greater than normal given the temporary absence of other players. Financial models showed it could take three to five years for the airline industry to recover, he said.

Airlink is starting to operate from three airports - OR Tambo, King Shaka and Cape Town International.

Airlink expects it will take more than four years for air travel to revert to pre-coronavirus levels, said Rodger Foster, its chief executive.

South Africans are only allowed to fly for business purposes under “level 3” of the country’s coronavirus lockdown, which entered force on June 1. Leisure travel by air is still banned.

Coronavirus vaccine: AstraZeneca boosts potential supply to 2bn

AstraZeneca said it will be able to supply two billion doses of a potential virus vaccine following two new deals.

Last month, AstraZeneca said it could manufacture one billion doses, that it is developing with scientists at Oxford University.

On Thursday, it signed two deals, including one backed by Bill Gates, allowing it to double production.

The British drug maker has agreed to supply half of the doses to low and middle-income countries.

One of the new partnerships is with the Serum Institute of India (SII), the world's largest manufacturer of vaccines by volume. The other is a $750m (£595m) deal with two health organisations backed by Bill and Melinda Gates.

The two charities, the Coalition for Epidemic Preparedness Innovations (CEPI) and GAVI vaccines alliance, will help find production facilities to produce and distribute 300 million doses of the vaccine. Delivery is expected to start by the end of the year.

AstraZeneca chief executive Pascal Soriot said he expects to know by August if the AZD1222 vaccine is effective, while CEPI chief executive Richard Hatchett said there is still a possibility the vaccine may not work.

AstraZeneca's licensing agreement with India's SII is to supply one billion doses for low and middle-income countries, with a commitment to provide 400 million before the end of 2020.

Mr Soirot said the company is building a number of supply chains across the world "to support global access at no profit during the pandemic and has so far secured manufacturing capacity for two billion doses of the vaccine". He has described the coronavirus pandemic as "a global tragedy" and "a challenge for all of humanity".

AstraZeneca has already agreed to supply 300 million doses of the potential vaccine to the US and a further 100 million to the UK, with the first deliveries expected in September.

Governments around the world have pledged billions of dollars for a Covid-19 vaccine and a number of pharmaceutical firms are in a race to develop and test potential drugs.

"A vaccine must be seen as a global public good - a people's vaccine, which a growing number of world leaders are calling for," United Nations Secretary General Antonio Guterres said in a video message on Thursday.--BBC

Retailer Gap posts near-$1bn loss due to coronavirus

Clothing retailer Gap has reported a loss close to $1bn due to store closures because of the coronavirus pandemic.

The company was $932m (£740m) in the red for the three months to May, compared with a profit of $227m in the same period last year.

It comes as Gap wrote off the value of the goods it holds by more than a quarter of a billion dollars.

The firm's shares were down by more than 8% in after-hours trade.

With net sales falling 43% in the period, Gap's chief executive Sonia Syngal said they continued to reflect “material declines in May as a result of closures” but added that online demand was improving.

Retailers of non-essential goods, especially clothing, have been hit hard by restrictions aimed to help slow the spread of Covid-19.

Shops have been shut across much of the world as retailers were forced to limit their businesses to online operations.

San Francisco-based Gap, which operates almost 2,800 stores in North America, said that more than half of its company-operated stores in the US have now reopened.

Separately, Gap is is being sued by America's largest shopping mall operator for refusing to pay rent for stores temporarily closed during the coronavirus pandemic.

Simon Property Group said in a lawsuit filed this week that the clothing retailer owes three months of rent, totalling $65.9m.

Gap has more than 390 stores at Indianapolis-based Simon's malls, including its namesake brand, Old Navy and Banana Republic.

Simon Property Group temporarily closed all of its properties in March after major retailers at its malls, such as Gap, Macy's and Nodstrom's, shut their stores.

Large retailers, including Gap and sports shoe seller Foot Locker, have said they wouldn't pay rent for stores that were forced to close due to the pandemic.

Gap did not directly mention the lawsuit during Thursday's earnings conference call but chief financial officer Katrina O'Connell said "We're just knee-deep in landlords today."

"It's very hard to say how long it will take, but I do know that one of our primary objectives is to use this opportunity to partner with our landlords to come up with a better profitability for the company."--BBC

Eurozone in fresh emergency action to boost economy

The European Central Bank has taken further dramatic measures try to boost the eurozone economies, amid their biggest recession since World War Two.

Just months after emergency measures, the central bank said it would increase the size of its bond buying programme by €600bn (£546bn) to €1.35tn.

The programme will run until June 2021, six months longer than planned.

The move will keep borrowing costs low for countries and firms as they face huge budget deficits and recessions.

The purchases support "funding conditions in the real economy, especially for businesses and households," the ECB said.

How are we going to pay for the coronavirus damage?

The central bank also decided to hold its interest rates at record lows.

The extra bond buying "is likely to push European government bond yields even further into negative territory, and investors in search of positive returns will be forced to take more risk," said Rachel Winter, associate investment director at investment firm Killik & Co.

The bond purchases are often referred to as Quantitative Easing (QE). When central banks buy bonds with printed money, the value of the bonds rise and borrowing costs drop.

Some market commentators wonder how much money can safely be printed without causing the value of money to decrease.

'Fiscal box'

"Although inflation is currently very low, these levels of asset purchases are causing some concern about inflation further down the line," said Ms Winter.

"Economic theory tells us that that inflation is linked to the supply of money in the economy, and if the money supply is being drastically increased to fund quantitative easing then long-term inflation ought to rise too. These fears of long-term inflation have stoked demand for gold recently."

Gold is trading at about $1,717 (£1,368) an ounce, down from highs of $1,766 earlier in the month, but up compared to a price of $1,324 one year ago.

In many ways, the ECB is playing catch-up with other central banks, said Neil Williams, senior economic adviser at US-based money manager Federated Hermes.

"After lagging the US and UK, the fiscal box is now opening, he said. The planned spending works out at about €100bn a month, higher than the €80bn spent in the wake of the European sovereign debt crisis, he points out.

The UK added £200bn of bond buying in March.--BBC

Bentley: Luxury carmaker to cut up to 1,000 jobs

Luxury carmaker Bentley is to cut 1,000 jobs in the UK, about a quarter of its workforce.

The firm, which makes its cars in Crewe, is expected to offer workers the chance to take voluntary redundancy.

The move comes as the car industry faces a sharp drop in sales due to coronavirus. Bentley has also struggled to be profitable in recent years.

The firm, which is owned by Volkswagen, declined to comment but is expected to make a formal announcement on Friday.

Last month, boss Adrian Hallmark said that a quarter of the firm's workers had been furloughed due to the lockdown while another quarter were working from home.

As first reported by ITV, the carmaker has since restarted production at its Crewe factory, but with only around half the usual number of staff.

Bentley, which was founded in the UK in 1919, increased its worldwide sales by 5% to 11,000 cars in 2019 but has struggled to be profitable in recent years.

It completed a turnaround plan last year but now appears to have been hit by the sharp fall in demand for new cars caused by coronavirus.

This has seen car manufacturers, suppliers and showrooms closed for weeks, with consumers holding off on big-ticket purchases.

The SMMT trade body said only 20,000 new cars were registered in the UK last month - down 89% year-on-year - the worst May performance since 1952.

Car dealership Lookers announced on Monday it will cut up to 1,500 jobs with the closure of more showrooms in the UK.

And Aston Martin, the luxury British carmaker famed for kitting out James Bond, announced 500 redundancies on Thursday, a week after naming a new chief executive.--BBC

BA refuses to meet Home Secretary over quarantine plans

Britain's biggest airline, British Airways, has refused to attend a meeting with Home Secretary Priti Patel on Thursday to discuss the UK's quarantine plans.

>From 8 June the government will require all travellers to the UK to quarantine for 14 days or face a £1,000 fine.

But BA, which is under huge financial strain due to the pandemic, has called it "another blow to our industry".

Owner IAG did not give a reason for not attending and declined further comment.

However, the operator is understood to be annoyed at what it saw as a lack of consultation over the quarantine's introduction.

The BBC has asked the Home Office for comment.

EasyJet and Virgin Atlantic, as well as the owner of Heathrow Airport, were among the aviation businesses that attended the telephone meeting with Ms Patel and junior aviation minister Kelly Tolhurst.

BA has faced heavy criticism in parliament in recent days over a plan to slash jobs while accessing the government's furlough scheme.

In April, BA said it would cut 12,000 roles and weaken terms and conditions for its remaining staff, just weeks after it had put 30,000 workers on the job retention scheme which pays workers' wages.

The airline has defended the cuts as necessary, but on Wednesday Ms Tolhurst suggested BA should be held to account for what one MP called a "breach of faith".

"The [furlough] scheme was not designed for taxpayers to fund the wages of employees only for those companies to put the same staff on notice of redundancy during the furlough period," Ms Tolhurst said.

An industry source said that BA feels "it has not been treated professionally; that the meeting was a waste of time".

Aviation bosses are fuming about the quarantine. And tonight's conference call seems to have made things worse.

Most were apparently unimpressed, with one person present on the call even describing it as "a shambles".

They feel they got no reassurances from Priti Patel that the quarantine would be reduced in any significant way soon by agreeing so-called "air bridges". These are safe corridors between the UK and countries with low infection rates meaning people won't have to self-isolate after they travel.

That is an interesting contradiction in tone from other government sources who insist ministers are working hard to establish a number of air bridges, especially with European countries, as soon as possible.

The fact that BA's parent company IAG didn't even attend the call is the ultimate sign that relations between the government and UK aviation are at rock bottom.

The government insists the new quarantine rules will help contain the spread of coronavirus but has faced a backlash from Conservative MPs who argue they will harm airlines and stop people taking summer holidays

The rules have also been roundly criticised by the UK's tourism industry, which has all but ground to a halt due to the pandemic.

In her opening remarks at the meeting, which was also attended by representatives of the rail and maritime industries, Ms Patel said: "Protecting lives will always be our top priority, but I am alive to the impact on your sector and I'm asking you to work with us on this."

But earlier on Thursday, the boss of the UK's biggest airport services company, Swissport, said on Thursday that the plan could deliver a "killer blow" to the tourism sector.

Michael O'Leary, chief executive of Ryanair, echoed those concerns, saying the requirement to self-isolate would "significantly reduce European visitors".

"The safety and security of our people and our customers is always our top priority and public health must come first," a Virgin Atlantic spokesman said.

"However, the introduction of mandatory 14-day self-isolation for every single traveller entering the UK will reduce customer demand significantly and prevent a resumption of services at scale."

On Monday, a group of 200 travel companies wrote to Ms Patel asking for the plans to be scrapped.

The letter suggested travel should be possible for people - without quarantine - between destinations "deemed safe from coronavirus".

So-called air bridges would allow visitors from countries where coronavirus infection rates are low into the UK, without having to self-isolate for two weeks.

A government source told the BBC there was a "list" of countries which the government was hoping to secure air bridge agreements with, which include all major European tourist destinations such as Portugal, Spain and France as well as Australia and Singapore.

However, for now the government's official position is that the idea is "under consideration", not established policy.--BBC

Louis Vuitton casts doubt over $16bn Tiffany takeover

The world's biggest luxury goods firm, LVMH, has cast doubt over its planned $16bn (£12.5bn) takeover of US-based jeweller Tiffany.

LVMH agreed to acquire Tiffany last November, but coronavirus-induced turmoil on financial markets has overshadowed the deal.

After days of speculation, LVMH said on Thursday that it would not buy Tiffany shares on the open market.

It could be a sign that LVMH wants to renegotiate a cheaper price.

Tiffany's share price tumbled in March on the back of expectation that sales of its luxury jewellery would fall. Although the stock recovered, it has fallen again this week on speculation LVMH's bid was in doubt.

LVMH's billionaire chief executive Bernard Arnault has long coveted buying Tiffany, a brand that hit global fame in the Audrey Hepburn romance Breakfast at Tiffany's.

He agreed to pay $135 a share, but the price has sunk to about $114 a share. LVMH's statement on Thursday comes ahead of Tiffany's quarterly results, due out next week.

LVMH said that during its board meeting on Tuesday, the firm "notably focused its attention on the development of the pandemic and its potential impact on the results and perspectives of Tiffany & Co with respect to the agreement that links the two groups".

It added: "Considering the recent market rumours, LVMH confirms, on this occasion, that it is not considering buying Tiffany shares on the market."

It gave no further details.

Tiffany is something of a New York institution and its flagship store is next to Trump Tower on 5th Avenue.

Founded in 1837, it employs more than 14,000 people and operates about 300 stores - 12 of them in the UK.

LVMH has 75 brands, 156,000 employees and a network of more than 4,590 stores. Its brands include Louis Vuitton, Kenzo, Tag Heuer, Dom Pérignon, Moet & Chandon and Christian Dior.--BBC

German stimulus package hands families €300 for each child

Germany's coalition government has agreed a €130bn (£114bn) fiscal stimulus package which cuts tax and hands €300 per child to every family.

The move is designed to kick-start the economy which has been severely hit by the coronavirus crisis.

Germany is heading for its worst recession in 70 years with GDP expected to shrink 6.3% this year.

"We must now succeed in boosting the economy," said Chancellor Angela Merkel.

She said the fact that Germany had seven million temporarily furloughed workers "shows how fragile the situation is".

As well as a cut in VAT and cash for families with children, the measures include new incentives for buying electric cars.

The package was announced late on Wednesday after 21 hours of negotiations between the partners in Mrs Merkel's governing grand coalition - which comprises her own Christian Democratic Union, its Bavarian sister party the CSU, and the left-of-centre Social Democrats.

Boosting spending

To boost consumer spending, VAT will be cut from 19% to 16% from 1 July to 31 December this year, a move that will cost the German government €20bn alone.

Families will receive a one-time transfer of €300 for each child.

Meanwhile those who buy electric cars will see the government rebate - an incentive designed to encourage consumers to switch to cleaner vehicles - doubled to €6,000.

Businesses will benefit too. Companies in sectors hardest hit by the crisis - such as hospitality, tourism and entertainment - will receive "bridging help" worth €25bn from June to August.

Restaurants, hotels or event management companies could get up to 80% of their fixed operating costs reimbursed if their revenues have plunged more than 70% compared to a year ago.

The new stimulus package comes on top of a €1.1 trillion rescue package agreed in March, which comprised loan guarantees, subsidies and a shorter-hours programme to avoid job cuts.

Mrs Merkel said the support programme would help "the economy to find its feet and grow again".--BBC

Gambling loophole 'must be shut down'

"It's like a last-ditch attempt to get the last bit of money out of a gambler. I was just disgusted."

Dave, not his real name, has fought gambling addiction nearly his entire life and now has £50,000 of gambling debt spread over up to six credit cards.

He's talking about when he recently saw an advert about a way that lets people gamble using credit on their mobile phone.

Just six weeks after a ban on using credit cards came into effect, politicians and charities say the regulator - the Gambling Commission - must take urgent action to shut down this "loophole".

The Commission told the BBC's Money Box programme it's watching closely for any unintended consequences of the ban and will consider further intervention if necessary.

Meanwhile, a trade group that represents gambling firms said it was working to ensure its members followed the rules.

Gambling with credit

The whole idea of bringing the credit card ban in was simple - to stop people gambling with money they didn't have.

It's something campaigners had long pushed for and have welcomed now it's been finally introduced.

But charities including StepChange and Gambling with Lives, as well as politicians, say a "loophole" allows people to get around that ban.

Dozens of online casinos allow users to choose a pay-by-phone option. Not only is this effectively credit if you have a contract and pay your phone bill monthly, which campaigners say goes against the "spirit" of the ban, but there is also, of course, nothing to stop people paying that bill with a credit card.

Lockdown 'a disaster' for problem gamblers

Betting firms must check customers after one hour

There is a limit on how much people can spend on their phone in this way, completely unrelated to gambling, which stands at £40 per day and no more than £240 per month.

'No safe place'

But for Dave that's not good enough.

"It's like there's no safe place, it's like they [the gambling industry] are always on your back," he says.

"There are people who've been in recovery, who are currently struggling, and this will just lead them back into that cycle.

"It's also dangerous for people who've never really considered gambling who might think: 'It's only £10 or £20 on your phone, what harm can it do?' It could be a new, fresh avenue to getting into this life addiction."

Dr Henrietta Bowden Jones, a spokeswoman for the Royal College of Psychiatrists and director of the National Problem Gambling Clinic, agrees with Dave.

She says she's particularly worried about the impact this type of gambling might have on problem gamblers and under-18s: "This is the first time I have heard of the ability to gamble using mobile phone [bills].

"The whole point of banning credit card use for gambling was to ensure consumer safety in relation to avoiding spending more than one could afford, but this seems to me to be a loophole through which gambling could still occur and cause financial harm."

The Betting and Gaming Council, which represents around 90% of the UK's betting market, said in a statement it "accepted and welcomed the introduction of the ban on gambling with credit cards".

"All of our members agreed to the guidelines set out by the Gambling Commission, and we will work with the regulator to ensure that they are adhered to."--BBC

INVESTORS DIARY 2020

Company

Event

Venue

Date & Time

Companies under Cautionary

Bindura Nickel Corporation

Padenga Holdings

Delta Corporation

Meikles Limited

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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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