Major International Business Headlines Brief::: 08 June 2020

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Major International Business Headlines Brief::: 08 June 2020

 


 

 


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

 


 

 


 

 

ü  Demand firms as OPEC+ meeting looms, Angolan sells

ü  Gulf stocks rise on oil pact, Egypt lifted by IMF agreement

ü  Egypt shares jump after IMF agreement announced

ü  Egypt net foreign reserves fall to $36.0037 bln end-May -central bank

ü  Libya's NOC confirms production resumed at southern Sharara oilfield

ü  Egyptian state banks collect over $10 bln from high-yield savings product

ü  Pipeline to Libya's Sharara reopened, but field remains closed-sources

ü  South Africa's rand hits 11-week high, stocks gain

ü  Coronavirus: UK travel quarantine rules come into effect

ü  'Virus drains no-deal Brexit medicines stockpiles'

ü  Huawei launches media blitz as UK weighs its role in 5G networks

ü  Public investment key to escaping crisis: Summers

ü  BA 'dismissal threat' undermines talks, pilots' union Balpa says

ü  Wahaca boss: 'It's going to be hell' after lockdown

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


Demand firms as OPEC+ meeting looms, Angolan sells

LONDON (Reuters) - Angolan crude continued to sell well and traders said
interest in Nigerian crude was set to rise as the country faces pressure
from fellow producers to rein in output.

 

* Angola has cut the number of oil cargoes that it will ship to Chinese
state firms to pay down debt to Beijing as it seeks to renegotiate repayment
terms, sources said.

 

* Therefore China’s Unipec had no cargoes assigned to it in July, down from
the usual two or three.

 

* Angola’s Sonangol was thus in possession of 8 cargoes, three of which it
recently assigned: a cargo of Cabinda to India’s IOC, CLOV to Galp and Nemba
to India’s MRPL.

 

* A cargo of Dalia sold recently, likely by Exxon Mobil for export on July
6-7. Last offered at dated brent plus $1.30, another cargo of Dalia set for
export in the last part of July was being offered for slightly higher.

 

* Differentials for heavier oil from Angola and Congo remained strong as
certain heavier oils were less abundant due to OPEC+ cuts, despite a slight
waning in Chinese buying.

 

* Northwest European gasoline stocks rose this week, signalling a
continuation of poor demand ahead for light Nigerian oil.

 

* But a trader said pressure from OPEC+ on Nigeria to cut its output could
encourage demand for its oil which is already on the market in vast volumes.

 

* Results had not yet emerged for two IOC tenders which were set to close on
Friday.

 

* British oil major BP has agreed to discount the price of the North Sea
assets it is selling to Premier Oil, Premier said on Friday.

 

* OPEC and its allies led by Russia will meet on Saturday to discuss
extending record oil production cuts and to push laggards such as Iraq and
Nigeria to comply with existing curbs.

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


Gulf stocks rise on oil pact, Egypt lifted by IMF agreement

(Reuters) - Most bourses in the Gulf ended higher on Sunday, a day after the
OPEC+ group of oil producers agreed to extend record production cuts until
the end of July, with Egyptian shares boosted by a preliminary deal on a
standby IMF loan for the country.

 

Saturday’s deal between OPEC and other producers led by Russia prolongs a
pact that has helped crude prices to double in the past two months by
withdrawing almost 10% of global supplies from the market.

 

Dubai’s main share index jumped 4.6%, its biggest intraday gain since April
7, led by a 9.5% surge for Dubai Islamic Bank and a 6.1% increase in Emaar
Properties.

 

In Saudi Arabia, OPEC’s de facto leader, the index was up 0.8%, with Al
Rajhi Bank rising 1% and petrochemicals group Saudi Basic Industries up
1.1%.

 

Oil giant Saudi Aramco, meanwhile, gained 0.6%.

 

It was not clear whether Saudi Arabia, the United Arab Emirates and Kuwait
would extend their additional voluntary oil production cuts of 1.18 million
bpd, which are not part of the OPEC+ deal.

 

The Abu Dhabi index gained 2.4%, boosted by a 4.2% jump for the country’s
largest lender First Abu Dhabi Bank.

 

Outside the Gulf, Egypt’s blue-chip index surged 4.6% after the
International Monetary Fund (IMF) announced on Friday that it had reached a
staff-level agreement with Egypt for a one-year $5.2 billion standby loan to
help the country to contend with the coronavirus pandemic.

 

 

Egypt shares jump after IMF agreement announced

CAIRO (Reuters) - Egyptian shares jumped on Sunday after the International
Monetary Fund (IMF) announced on Friday it had reached a staff-level
agreement with Egypt for a one-year, $5.2 billion standby loan to help it
grapple with the coronavirus pandemic.

 

The benchmark EGX30 index was up 3.7% in early trade. The index has fallen
18.8% this year, mainly due to the pandemic’s effect on the economy,
including a shutdown of the tourism industry.

 

The agreement, which must be finalised by the IMF’s executive board, would
safeguard economic gains achieved by Egypt over the past three years and put
the country on a strong footing for a sustained recovery, the IMF said.

 

 

 

 

Egypt net foreign reserves fall to $36.0037 bln end-May -central bank

(Reuters) - Egypt’s foreign reserves fell to $36.0037 billion at the end of
May, from $37.037 billion at the end of April, the central bank said on
Sunday.

 

 

Libya's NOC confirms production resumed at southern Sharara oilfield

CAIRO (Reuters) - Libya’s National Oil Corporation (NOC) on Sunday confirmed
that some production has resumed at the giant Sharara oilfield in the south
of the country, it said in a statement.

 

Two engineers from the field told Reuters on Saturday that production at
Sharara was gradually restarting after a blockade closed the 300,000 barrel
per day (bpd) field for more than four months.

 

The restart followed a rapid military retreat by forces loyal to
eastern-based commander Khalifa Haftar, whose allies had blockaded oilfields
and ports since January, shutting off most of Libya’s production and
billions of dollars in revenue.

 

The state oil company on Sunday said that production at Sharara restarted
“after lengthy negotiations by the NOC to reopen the Hamada valve, which had
been illegally closed last January”.

 

No details were given of the negotiations.

 

The valve that had been closed on the pipeline running from Sharara to the
northern oil terminal of Zawiya was reopened on Friday, the Petroleum
Facilities Guard (PFG) said.

 

The oil flowing from Sharara reached Zawiya terminal in the early hours of
Sunday, the PFG said in a statement.

 

Production at Sharara will start at 30,000 bpd, NOC said, adding that the
output is expected to return to full capacity within 90 days.

 

Sharara is operated by NOC in a joint venture with Spain’s Repsol, France’s
Total, Austria’s OMV and Norway’s Equinor. NOC declared force majeure on
loadings from the field in January.

 

The blockade of Libya’s oil for a period of 142 days resulted in losses
estimated at about $5.3 billion, NOC said.

 

 

 

Egyptian state banks collect over $10 bln from high-yield savings product

CAIRO (Reuters) - Egypt’s two biggest state banks have collected 171 billion
Egyptian pounds ($10.5 billion) from a new high-yield savings product they
introduced in March, officials from the two banks were quoted as saying on
Saturday.

 

The one-year product, launched on March 22, carry a 15% yield.

 

An official at the National Bank of Egypt  said it had collected 122 billion
pounds, while Banque Misr’s chairman said it had gathered 49 billion pounds,
state news agency MENA reported.

 

($1 = 16.2250 Egyptian pounds)

 

 

 

 

Pipeline to Libya's Sharara reopened, but field remains closed-sources

TRIPOLI (Reuters) - The Hamada pipeline running from Libya’s Sharara
oilfield has been reopened, the Petroleum Facilities Guards said in a short
statement on Friday, after it was closed during a blockade on oil exports.

 

However, Sharara field remains closed and there are no orders to reopen it,
an oil engineer there said. National Oil Corporation, the state producer,
had no immediate comment.

 

 

South Africa's rand hits 11-week high, stocks gain

JOHANNESBURG (Reuters) - South Africa’s rand raced to an 11-week high
against the U.S. dollar Friday, supported by a risk rally as an unexpected
fall in the U.S. unemployment rate brought back hopes of a swift economic
recovery.

 

Stocks rose along with global markets as investors priced in an economic
recovery following the shock of the coronavirus pandemic.

 

At 1505 GMT the rand was trading at 16.8600 per dollar, 0.3% firmer than its
previous close, after hitting 16.7330 earlier in the session — its strongest
since March 18.

 

The U.S. economy unexpectedly added jobs in May after suffering record
losses in the prior month, offering the clearest signal yet that the
downturn was probably over, though the road to recovery could be long.

 

The risk rally was also supported by new monetary stimulus for Europe.

 

“The sheer size of the monetary and fiscal support measures out of the
developed world in light of the coronavirus shock has driven a risk-on
frenzy as a global search for yield has led to financial spillovers into the
emerging market space,” said economists at ETM Analytics.

 

“Technically, the 16.85 handle remains the line in the sand for the USD-ZAR,
with the pair hovering around this level all morning. A sustained break
below this level is likely to see a slide to 16.6500,” ETM analysts said in
a note.

 

The Johannesburg All-Share index rose 2.85% to 54,722 points, while the
blue-Chip Top-40 Index gained 2.79% to 50,200 points.

 

Banking shares were among the gainers up 6.57% with Nedbank 9.18% higher to
126.10 rand and Standard bank 6.22% stronger to 119.73 rand.

 

“Financials and properties are holding up the market. The international
markets are supporting our market from a directional perspective,” said
Nilan Morar head of trading at the Global Trader.

 

Bonds weakened, with the yield on the 10-year government issue adding 20.5
basis points to 8.945%.

 

 

 

Coronavirus: UK travel quarantine rules come into effect

New rules requiring all people arriving in the UK to self-isolate for 14
days have come into effect.

 

Those arriving by plane, ferry or train - including UK nationals - will have
to provide an address where they will self-isolate and face fines of up to
£1,000 if they do not follow the rules.

 

Home Secretary Priti Patel said the laws are designed "to prevent a second
wave" of coronavirus.

 

But some industries have warned they will be severely impacted by the rules.

 

Anyone arriving from the Republic of Ireland, the Channel Islands or the
Isle of Man does not have to complete the form or enter quarantine.

 

There are also exemptions for workers in some industries such as road
haulage and medical professionals who are providing essential care.

 

All other travellers have to fill in a "public health passenger locator"
form on arrival. Failure to do so could lead to a penalty of £100, or
travellers might be refused entry.

 

If they are unable to provide an address, the government will arrange
accommodation at the traveller's expense. There will also be checks to see
whether the rules are being followed.

 

The government has faced criticism from the aviation industry and some Tory
MPs over the measures, but Ms Patel said the measures were "proportionate"
and being implemented "at the right time".

 

"The science is clear that if we limit the risk of new cases being brought
in from abroad, we can help stop a devastating second wave," Ms Patel said.

 

Those arriving in England could face a fine of £1,000 if they fail to
self-isolate for the full 14 days, while they face a £480 fine in Scotland.

 

Passengers should drive their own car to their destination, where possible,
and once at their destination they must not use public transport or taxis.

 

They must not go to work, school, or public areas, or have visitors - except
for essential support.

 

Passengers in transit, who do not pass through border control, are also
among the groups who are exempt from the mandatory isolation.

 

The travel industry has been vocal in its criticism of the government's
quarantine rules, warning that the isolation period will deter visitors and
put jobs at risk.

 

The manufacturing industry has also highlighted that fewer flights will
restrict imports and exports, which will have a knock-on effect for the
freight industry, as well as hampering the recovery of some businesses.

 

British Airways, Easyjet and Ryanair have written to Procurator General Sir
Jonathan Jones, the government's most senior legal official - the first
stage required when taking legal action against the government.

 

The airlines say they're prepared to ask for a judicial review into the
government's travel quarantine rules.

 

And travel trade body Abta has called on the government to urgently create a
roadmap for restarting international travel.

 

"We must restart international travel as soon as it is safe to do so, and
businesses and customers would benefit from the government outlining when
this is likely to happen," said Abta's chief executive, Mark Tanzer. "There
are many livelihoods at stake."

 

The UK's biggest airport services company, Swissport, has also warned that
the rules could deliver a "killer blow" to the tourism sector.

 

'Another blow to our industry'

Industry leaders wrote to Prime Minister Boris Johnson in May asking that
the government avoid taking a "blanket approach" to quarantining visitors to
the UK.

 

Instead, they suggested that the UK agree so-called "air bridges" with
countries that have low coronavirus rates.

 

Following this, aviation, maritime and rail industry leaders were invited to
a roundtable discussion with the home secretary and aviation minister Kelly
Tolhurst on 4 June to discuss the new quarantine plans.

 

Media captionHome Secretary Priti Patel: 'We are now more vulnerable to
infections being brought in from abroad'

However, British Airways refused to attend the meeting, and aviation bosses
told the BBC that they were not impressed by the content of the call.

 

The BBC understands that Ms Patel did not provide assurances that the
quarantine would be reduced in any significant way soon.

 

According to the BBC's transport correspondent Tom Burridge, relations
between the government and Britain's aviation industry are now at "rock
bottom".

 

BA, already under huge financial strain due to the pandemic, has called the
quarantine rules "another blow to our industry".

 

The airline is proposing to make 12,000 staff redundant in order to stay
afloat. Separately, Heathrow Airport's chief executive has warned that about
25,000 jobs could be at risk at Heathrow Airport.

 

Government sources have told the BBC that the UK is hoping to secure air
bridge agreements with certain countries, including many major European
tourist destinations, such as Portugal, Spain and France, as well as
Australia and Singapore.

 

But, for now, the government's position is that the idea is only "under
consideration".--BBC

 

 

 

 

'Virus drains no-deal Brexit medicines stockpiles'

The UK has been warned by the pharmaceutical industry that stockpiles of
medical supplies have been "used up entirely" by the coronavirus pandemic.

 

A memo seen by the BBC advises the government to buy and store "critical"
medicines to treat the virus.

 

Drug makers fear stockpiles cannot feasibly be built back up again, if the
UK should fail to strike a post-Brexit trade deal with the EU.

 

The government said "robust contingency plans are in place".

 

The spokesperson added: "We want a relationship with the EU which is based
on friendly cooperation between sovereign equals and centred on free trade."

 

However, firms fear disruption to global supply chains will seriously impact
the NHS.

 

The internal pharmaceutical industry memo, which was prepared for the
government in May, warns that after the pandemic ends, there will be "less
or zero product available in the market to allow for stockpiling a broad
range of products" than there was in 2019, when stockpiling occurred in
preparation for a possible no-deal Brexit.

 

At the time, the industry itself paid for six weeks' worth of stockpiles.

 

"Preparations for the end of the transition period must complement plans to
secure the supply of coronavirus therapeutic and supportive products," the
memo says.

 

The pandemic has led to a massive increase in demand for medicines not
previously stockpiled for critical care and respiratory medicines, such as
inhalers.

 

At the same time, coronavirus lockdown measures imposed by governments have
caused significant supply bottlenecks due to factory closures and export
bans, as well as a drastic decline in air freight.

 

The memo was put together by an cross section of pharmaceutical industry
groups anticipating preparations for a failure to strike a trade deal with
the EU, alongside a refusal to extend the negotiating period.

 

If this happens, the UK would trade on World Trade Organization (WTO) terms,
which would mean trade barriers from the start of next year.

 

Keeping the flow of medicines going

The memo goes on to remind the government that the flow of medicines has
been kept going through the pandemic thanks to "international coordination
and information sharing within global companies to ramp up, and where
necessary, redirect manufacturing".

 

As a result, the pharmaceutical industry writes: "We would warn against any
drastic policies mandating wholesale changes to global supply chains, as
this could fundamentally disrupt the supply of medicines for the NHS and
patients in other countries."

 

The pharmaceutical industry has long anticipated that a no-deal Brexit could
cause congestion at the ports of Dover and Calais, which is the route that
90% of imported drugs and medicines from the EU take to get to the UK.

 

As a result, the industry has advised that the government itself will have
to buy and store a longer list of "critical products" where "supply could be
challenging due to either COVID-19 or the end of the [Brexit] transition
period".

 

The need for trading stability is even more important this year, because the
pattern of demand for medicines is likely to be very different to normal.

 

That means, the memo says, that the government needs to develop a new
broader list of critical products which "reflect the challenges posed by
both the end of the transition period and continues response" to the
coronavirus crisis.

 

Urgent government action needed

The memo also emphasises that the government needs to be storing a much
broader list of medicines going forward, because of the joint challenge of
the pandemic and in the event of a no-deal Brexit deal at the end of this
year.

 

But the pharmaceutical industry says that to have significant impact, the
stockpiling will have to start in the next few weeks, and even after the
pandemic ends, stockpiling will not be possible for every medicine required.

 

In a normal year, Christmas would be "the worst time of year to ask
companies to increase their stockpile levels", the memo says.

 

The pharmaceutical industry is expecting the system of no-deal
government-chartered freight ferries and aeroplanes to be re-established,
given that border disruption is expected at the end of the Brexit transition
period. It says the government needs to signal that this will be the case by
next month.

 

And it has requested "urgent clarity" on the implementation of arrangements
for Irish Sea trade, under the Northern Ireland Protocol.

 

The Association of the British Pharmaceutical Industry (ABPI), one of the
organisations involved in drafting the report, says firms had "worked around
the clock" during the pandemic to make sure medicine supply chains held up.

 

"With this pressure likely to continue over the coming months, the pandemic
has reinforced why it is essential that the UK and EU reach a deal on their
future relationship," said ABPI's chief executive Dr Richard Torbett.

 

In the meantime, he said its members would continue to work closely with
government to put detailed plans in place.

 

"But not everything is in the gift of industry. Stockpiling is one element -
having alternative supply routes and making sure that goods can continue to
flow uninterrupted across borders is also critical," he stressed.

 

--BBC

 

 

 

Huawei launches media blitz as UK weighs its role in 5G networks

Huawei is launching a newspaper and internet campaign to mark 20 years of
business in the UK.

 

In an open letter to the public, the Chinese telecoms company says it is "as
committed as ever" to provide "the best equipment" to the UK's 5G mobile and
full-fibre broadband providers.

 

It comes amid a new security review that could lead the UK government to ban
use of Huawei's 5G network kit.

 

Huawei's local boss said he expects the UK to act in the nation's interests.

 

The initiative follows a report in Saturday's Daily Telegraph, which said
London-headquartered bank HSBC fears it could face reprisals in China, if
the UK acts against Huawei.

 

The Sunday Times also reported that China's ambassador to the UK had
recently told business leaders that Beijing viewed the matter as "a litmus
test of whether Britain is a true and faithful partner".

 

Victor Zhang, vice president of Huawei and head of its UK operations, told
the BBC the advertising campaign was about giving people the facts amid all
the "noise" surrounding the company.

 

He said he hoped the UK would take an "evidence and fact-based approach" and
warned of huge economic impact if greater connectivity was delayed by the
company's exclusion, potentially running into the tens of billions of pounds
of lost productivity benefits.

 

"We need to work closely to address the issue, but we need to take action to
accelerate the broadband deployment," he said. "We don't have time to delay
this."

 

Two decades

Huawei's first significant global breakthrough came in the UK in 2005, when
it signed a deal to upgrade BT's copper broadband service, five years after
having entered the market.

 

And 15 years later, the UK government's decision to allow Huawei a role in
the country's 5G mobile networks represented another crucial victory.

 

In January, ministers announced that Huawei's market share would be capped
at 35%, and it would be excluded from sensitive locations, as well as the
so-called "core" of the network, which is likened to the brains of the
system.

 

It appeared that the Chinese tech giant had avoided the outright ban that
the US had been pressing for, on the grounds that the firm poses a national
security risk.

 

But a backbench rebellion by Conservative MPs in March and then the
coronavirus crisis have heightened political pressure for the UK to be less
dependent on China.

 

And Washington's campaign has also not relented since January's decision,
despite Huawei's repeated denials that it would ever compromise its clients.

 

In May, the US placed significant new sanctions on the company, which limits
its access to American computer chip technology.

 

"We think this decision will heavily impact on the global supply chain of
the semiconductor industry," Mr Zhang told the BBC. "We need to work out a
solution."

 

Mr Zhang said that it was still too early for the company to draw any
conclusion about the impact, and promised to share details of its own review
when complete.

 

However, the sanctions prompted the UK's National Cyber Security Centre
(NCSC) to carry out its own review.

 

NCSC is expected to report in the coming weeks, and may say it has lost
confidence it can manage the risks associated with Huawei being involved in
5G.

 

That could open the way for the government to shift its position to further
reducing, or even eventually eliminating Huawei's role.

 

That could be costly to mobile operators, leading to higher bills for
customers. It could also mean their rollout of 5G in the UK is slower.

 

The advertising campaign also highlights Huawei's support of British
universities and other institutions, which might also be affected, were the
company to be blocked.

 

"We believe the UK will definitely review this based on the facts and the
evidence, because the UK will take its own interests very seriously," Mr
Zhang said.

 

'Trail of blood'

The founder of Huawei, Ren Zhengfei was reported by the Wall Street Journal
on Saturday to have told staff in 2018 that the company was in a battle with
the US and they should "surge forward, killing as you go, to blaze us a
trail of blood".

 

Asked about the language, Mr Zhang said it reflected a sense that Huawei was
under intense attack from the United States.

 

"We are very vulnerable and we know America tried to attack Huawei with so
called security reasons which are actually totally wrong," he said.

 

"It is simply because of trade and protectionism."--BBC

 

 

 

 

Public investment key to escaping crisis: Summers

A former US treasury secretary says public investment will be key as the
world recovers from the economic impact of the coronavirus crisis.

 

Larry Summers told the BBC that central banks are going to become "less
relevant", as interest rates are going to be near zero for much of the time.

 

"Fiscal policies are going to be more important in supporting economic
expansion," he said.

 

"And public investment policies are going to play a larger part."

 

Mr Summers, who is now an economic advisor to Joe Biden's presidential
campaign, told Radio 4's The World This Weekend programme that "for those
with an agenda around infrastructure, there's huge opportunity in this
moment".

 

Without a doubt, there will be voices right now raising warnings of the
political dangers and tax implications of such a growth in state
intervention, but none of the economists The World This Weekend spoke to
were among them.

 

Gerard Lyons, chief economist to Boris Johnson when he was Mayor of London
and a high profile supporter of Brexit, said such spending is affordable:
"Clearly, there is a need at some stage to bring government debt down, in
terms of the size of its economy, as we did after the Second World War. But
the key thing is that low inflation, low rates and low yields allows the
government to sustain a much higher level of borrowing after this crisis."

 

For some on the left, the inevitability of more government spending - on
both benefits and big job-creating projects - is an opportunity.

 

The prospect has certainly cheered up the markets, with a recent rally on
Wall Street.

 

But Professor Mariana Mazzucato, Director of the Institute for Innovation
and Public Purpose at University College London (UCL), says it is vital that
any public spending project is well-focused.

 

Government has the 'upper hand'

"If we keep just arriving to the problem once the problem presents itself,
so from one crisis to another - the financial crisis, the climate crisis,
the health crisis - we're not going to get out of this constant crisis
mode," she said.

 

"Most of what governments are currently doing worldwide, the trillions that
are being thrown at the problem globally, is really just correcting for a
problem."

 

Instead, she says, we should "structure that immediate short-term remedy
with a long-run kind of vision" of what kind of economy we would like to
create afterwards.

 

"This is the moment for government to do that, because it has the upper
hand," she added.

 

Most economists warn of a phenomena they call "secular stagnation" - a
long-term lack of growth.

 

This can frighten off both consumers and investors, leading to a lack of
investment and innovation that spirals down into greater unemployment and
poverty. Allianz's chief economic advisor Mohamed El Erian says it is a
danger which needs to be avoided.

 

"You need to win the war against a health threat and you need to win the war
against an economic depression, but you also need to win the peace of
sustained, high and inclusive growth
 I worry that we will end up winning
the war, but we may fail in winning the peace," he told the BBC.

 

"Difficult decisions have to be made early on as to how you allocate the
relief measures you have
what some developing countries are discovering is
they simply can't replay the playbook that has been used in the richer
countries - they have to come up with something different that recognises
that they're in there for the long haul."

 

Just in time

Well before the crisis, the idea of a globally-linked economy was, if not
under threat, then being questioned - did it benefit very few, to the
detriment of millions?

 

That was one of the pressures behind the wave of new nationalism, and with
it, talks of new barriers to protect individual countries' economies against
foreign competition.

 

The economists the BBC spoke to are agreed there will be one big change in
supply lines following the pandemic - "just in time" will be replaced by
"just in case".

 

Manufacturers will build in greater redundancy and look to buying vital
components closer to home, but active barriers against world trade are a
different story.

 

Professor Beata Javorcik is chief economist at the European Bank for
Reconstruction and Development. He says a big worry is that populist leaders
could use incidents of shipments of personal protective equipment (PPE)
being stopped at the border to "promote more protectionism".

 

"It would be very easy to use instruments that are available under the World
Trade Organization rules to introduce tariffs against subsidised imports
so
in the absence of global commitment to free trade the world may just sleep
walk into protectionism," he said.

 

Even the sharpest minds can only predict the outline of a new world, but it
is inevitable these changes will bring a political reaction.

 

The future is not written in stone or in the stars, nor can it been fully
discerned by peering at statistics and graphs. That is in large measure
because it depends on choices yet to be made by voters and governments,
investors and companies.

 

The old cliché runs "never waste a good crisis" and certainly, many of the
centre left are hopeful that the end result of this pandemic may have, in
their eyes, some positive consequences, from more international cooperation
to greater government support for domestic programmes they favour, like
healthcare and re-training.

 

But increased poverty all over the world, with little prospect of a rapid
reversal of a downward spiral, is a dark background as our century enters
its twenties.--BBC

 

 

 

 

BA 'dismissal threat' undermines talks, pilots' union Balpa says

The pilots' union Balpa has accused British Airways of undermining talks
over proposed job losses by threatening to dismiss and re-hire its members
under new contracts.

 

The airline proposes to make 12,000 staff redundant, as it struggles with
the impact of the pandemic, with more than 1,000 pilot roles at risk.

 

British Airways said it was acting now to protect as many jobs possible.

 

It insisted no final decision had been made.

 

Balpa has been meeting with the company, unlike some unions, including Unite
and GMB, which BA says have refused to enter talks.

 

But Balpa general secretary Brian Strutton said on Saturday night that those
talks now hung "by a thread".

 

"Balpa reps have been in consultation with BA over its proposed 1,130 pilot
job losses and we've been doing that constructively and in good faith," Mr
Strutton said in a statement.

 

"Then, on Wednesday evening, a letter from BA added another 125 job losses
and also for the first time threatened all 4,300 BA pilots with dismissal
and reengagement if we did not reach agreement on changes to terms and
conditions.

 

"I'm appalled at the cavalier attitude shown by BA towards the Balpa reps
and to its pilots.

 

"This has seriously undermined our talks which now hang by a thread."

 

Willie Walsh, the chief executive of BA's parent company IAG, emphasized
this week in a letter to Parliament that no decision had been made in
relation to actual redundancies.

 

"There are some who believe the company is exaggerating the scale of the
challenge," Mr Walsh said in the letter. "Nothing could be further from the
truth. The situation is unprecedented."

 

Quarantine row

British Airways said it was acting now to protect as many jobs possible, as
the airline industry faced the deepest structural change in its history. It
called on Unite and the GMB to consult with it on its proposals as Balpa was
doing.

 

Separately, BA, Easyjet and Ryanair have made inroads towards a legal
challenge to the government's plan to impose two weeks' quarantine on
travellers entering, or returning to, the UK.

 

The three have written a letter to Procurator General Sir Jonathan Jones,
the government's most senior legal official.

 

In it, they argue the rules for incoming travellers will be more stringent
than those for people who are actually diagnosed as having coronavirus - and
point out that the rules are governed by different legislation for residents
of Scotland, Northern Ireland and Wales.

 

The proposals have been roundly criticised across the travel industry. The
Home Office has said it believes the measures will help stop the spread of
the virus.

 

A government spokesperson said: "As we get the virus under control here, we
must manage the risk of cases being imported from abroad.

 

"These measures are informed by science, backed by the public and will keep
us all safe.

 

"We recognise it is a difficult time for the travel industry, and the
government continues to work with industry partners to ensure these measures
remain effective and necessary."

 

The boss of Getlink - formerly Groupe Eurotunnel - has also written to the
government, criticising the plan for its burden of paperwork, for instance
the efforts that would be needed to keep track of workers who cross the
channel frequently.

 

"The exemption to quarantine for staff who cross the Channel many times a
day, within the concession, turns out to be an administrative burden for
each crossing that will require much time to set up and deliver," wrote
Getlink's chief executive Jacques Gounon.

 

He also complained to Prime Minister Boris Johnson about the speed of the
new rules.

 

"Limited consultation by the Home Office and departmental intransigence have
led to a situation that puts a serious risk on the efficiency of operations
at the Channel Tunnel, a vital link in the Great British supply chain," he
wrote.--BBC

 

 

 

Wahaca boss: 'It's going to be hell' after lockdown

"Starting up, it's going to be hell," says Mark Selby, chief executive and
co-founder of Mexican restaurant chain Wahaca.

 

"A lot of people are going be nervous about coming out. We've all got to do
our jobs in making people feel confident, making them feel safe, but also
giving them that experience that hospitality is."

 

Restaurants and pubs across the UK have been hard-hit by lockdown measures
that were introduced in March in a bid to stop the spread of the
coronavirus.

 

In England, the hospitality industry expects to be allowed to reopen from 4
July, although there's no firm date yet for Scotland, Wales or Northern
Ireland.

 

But Mr Selby doesn't expect consumer confidence to return overnight.

 

"The reality is that people are not going to come back in their droves,
they're going to slowly build back that confidence," he says.

 

Wahaca typically serves about 60,000 diners each week. But the restaurant
chain expects that once it has reopened, sales will initially be down by
about 60%, before slowly coming back up over the course of the next year.

 

Coronavirus measures

Like other British restaurant chains and retailers, Wahaca is considering a
number of measures in a bid to keep staff and workers safe amid the
pandemic.

 

Mark says customers could be given the option of ordering food on apps.
Other safety measures are likely to include having staff wash their hands
every 20 minutes - once its 28 UK outlets have reopened.

 

And although Wahaca is keen to make things work in a newly
socially-distanced world, Mr Selby expects the restaurant chain to struggle,
if social distancing guidelines are not relaxed at least somewhat.

 

"I don't see how anyone makes money on two-metre guidance, it becomes an
impossible situation to work to," he says.

 

Other countries use lower numbers for social distancing recommendations. In
France, for example, the recommended distance between customer and staff is
one metre.

 

The Department of Business, Energy and Industrial Strategy (BEIS) said it
was working with industry "at pace to develop safe ways for pubs,
restaurants, bars and cafes to reopen at the earliest opportunity it is safe
to do so".

 

The government is expected to release guidelines on operating in a "safe"
manner as soon as this week, so firms have time to prepare before reopening
in England.

 

More government support

Trade association UK Hospitality is asking the government to provide further
support for businesses if the two-metre rule remains in place in the UK.

 

Its chief executive Kate Nicholls said: "If we're operating at such a loss
and furlough is going to be withdrawn, then it's vital that these businesses
which have been cash-starved since March have additional funding to help
with rents in particular, which is the second biggest overhead they're
facing."

 

The majority of Wahaca's 1,000 employees have been furloughed under the
government's job retention scheme.

 

Mr Selby credits the scheme with making things much easier for the
restaurant chain: "Before the furlough scheme, we said that we were going to
have some very difficult decisions to make."

 

But he called for the government to go further: "Businesses like ours in the
restaurant space are absolutely going to need more support.

 

"I can guarantee for the next six to eight months, with sales where we
expect them to be, we are going to need serious rent concessions."

 

Section 82 of the government's Coronavirus Act 2020 came into force on 25
March to help protect commercial tenants.

 

It banned the forfeiture of commercial leases until 30 June 2020 - or longer
if the government deems necessary - for non-payment of rent.

 

But the Act has not prevented landlords from taking other legal actions
against tenants in order to force them to pay rent withheld due to the
lockdown.

 

In May, the government said it would soon publish a code of conduct for both
commercial landlords and tenants who are facing additional pressures on
their finances.

 

Casual dining in crisis

Many casual dining chains have already been struggling in the face of rising
overheads and falling consumer spending.

 

Those in the hospitality sector have seen their troubles worsen due to the
coronavirus pandemic, as customers have been forced to stay at home amid
lockdown.

 

Carluccio's, for example, was bought out of administration by the owner of
Giraffe restaurants. Despite its rescue, more than 1,000 jobs will be lost
at the Italian restaurant chain - over half of its total workforce.

 

And last week The Restaurant Group, which owns Frankie & Benny's, announced
that as many as 120 outlets will not reopen after lockdown.

 

In an email to managers seen by the BBC, the company said: "Many sites are
no longer viable to trade and will remain closed permanently.

 

"The coronavirus crisis has significantly impacted our ability to trade
profitably, so we've taken the tough decision to close these restaurants
now."--BBC

 

 

 

 

 

 


 

 


 

INVESTORS DIARY 2020

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


Bindura Nickel Corporation

 

 

 


Padenga Holdings

 

 

 


Delta Corporation

 

 

 


Meikles Limited

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
constitute an offer to sell or the solicitation of an offer to buy or
subscribe for any securities. The information contained in this report has
been compiled from sources believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
other member of Bulls ‘n Bears nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
report shall be solely responsible for making their own independent
investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and sourced from third parties.

 


 

 


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