Major International Business Headlines Brief::: 15 June 2020

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Major International Business Headlines Brief::: 15 June 2020

 


 

 


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

 


 

 


 

 

ü  South Africa consults with industry on nuclear power plans

ü  Congo's gold being smuggled out by the tonne, UN report finds

ü  Nigeria's daily oil output overfull OPEC+ deal - Kyari

ü  Fitch sees South African economy contracting 5.5% this year

ü  Malawi to see negative growth in 2020 if coronavirus persists, says
minister

ü  Kenya central bank to hold its rate-setting meeting on June 25

ü  IMF approves additional $111.06 mln to Rwanda to address COVID-19
pandemic

ü  Tanzania says it has begun negotiations over debt relief to shore up
economy

ü  South African mobile data-only operator plans 5G expansion

ü  South Africa should consider zero-based budgeting, finance minister says

ü  Bank of England 'ready to act' as economy shrinks record 20%

ü  Coronavirus: One million miss out on support schemes, MPs say

ü  Wall Street stages recovery after heavy losses on Thursday

ü  British Airways' treatment of staff 'a disgrace', say MPs

ü  Coronavirus: Face masks mandatory for Uber passengers and drivers

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


South Africa consults with industry on nuclear power plans

JOHANNESBURG (Reuters) - South Africa’s energy ministry on Sunday began
consultations with industry on preparations for a proposed 2,500 megawatt
(MW) nuclear power plant building programme, which has faced opposition from
environmental campaigners.

 

South Africa wants to supplement its power capacity because of problems at
state utility Eskom’s fleet of coal-fired power plants, some of which will
be decommissioned over the next two decades.

 

The energy ministry aims to use the consultation process - known as a
Request for Information - to get some idea of the cost, possible ownership
structures, cost recovery, the end-user cost and sustainability of the
nuclear programme, it said in a statement.

 

“Given the long lead-time of building additional new nuclear capacity,
upfront planning is necessary for security of energy supply to society into
the future,” the energy ministry said.

 

Earthlife Africa Johannesburg and the Southern African Faith Communities’
Environment Institute earlier this month wrote to the energy minister
threatening to take legal action if he moved to build new nuclear power
plants without proper consultation.

 

Three years ago, the same groups succeeded in persuading a court to block a
nuclear power agreement with Russia, signed under then-president Jacob Zuma.

 

South Africa, which operates the continent’s only nuclear power plant near
Cape Town, said last month that it planned to procure 2,500MW of new nuclear
capacity by 2024.

 

South Africa’s long-term energy plan, released in October, listed nuclear
power as an option in the longer term or in case a long-delayed hydropower
project in the Democratic Republic of Congo does not materialise.

 

South African officials have previously talked about nuclear power as being
part of an “energy mix” that also includes renewable sources like wind and
solar as well as coal, on which the country currently relies for more than
80% of its power generation.

 

 

 

Congo's gold being smuggled out by the tonne, UN report finds

(Reuters) - Gold production in Democratic Republic of Congo continues to be
systematically underreported while tonnes of the precious metal is smuggled
into global supply chains through its eastern neighbours, a United Nations
report has found.

 

The countries along Congo’s eastern border have long been conduits for gold
worth billions of dollars mined using rudimentary means by so-called
“artisanal” miners.

 

Difficult to trace, trade in the precious metal has fueled regional wars,
funded rebel fighters and led to UN sanctions on traders involved in a bid
to staunch the flow.

 

North Kivu, South Kivu and Ituri provinces reported official production of
just over 60kg of artisanal gold in 2019, yet exported a total of just over
73kg, the UN Group of Experts on the Congo found in its annual report.

 

The group estimated that at least 1.1 tonnes of gold were smuggled out of
Ituri province alone in 2019. That would have earned the government up to
$1.88 million in taxes had it been legally exported.

 

Across all gold-producing provinces the loss is likely much greater.
Artisanal miners in Congo produce 15 to 22 tonnes of gold a year, Germany’s
Federal Institute for Geosciences and Natural Resources has estimated.

 

“The country remained one of the Great Lakes region’s largest artisanal gold
producers, and yet one of its smallest official exporters,” the Group of
Experts wrote.

 

Asked by Reuters about the report, Congo’s mines minister, Willy Kitobo
Samsoni, said he could not immediately share his figures on mineral
smuggling from the east of the country.

 

The UN experts also found that Uganda and other neighbouring countries
export far more gold than they produce, suggesting they might still be
staging posts for smuggled Congolese gold.

 

More than 95% of gold exports from Uganda in 2019, which totaled just over
25 tonnes, were not of Ugandan origin, the group estimated, based on 2018
production and 2019 export data.

 

Uganda’s gold exports more than doubled in 2019 compared with the previous
year, central bank data showed in March. [nL8N2B442E]

 

Uganda’s energy minister did not immediately respond to a request for
comment on the report.

 

Smugglers told the Group of Experts that Kampala was a main trading hub for
gold from Ituri. Smuggled gold from South Kivu went to Burundi, Rwanda, the
United Arab Emirates, and Tanzania, the report added.

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Nigeria's daily oil output overfull OPEC+ deal - Kyari

LAGOS (Reuters) - Nigeria’s current daily oil production overcomplies with
its promised cuts under an agreement among major oil producers, the head of
the state oil company said on Friday.

 

NNPC chief Mele Kyari also said during a Zoom call organised by the Atlantic
Council that if all countries that are part of the OPEC+ deal complied,
there would be no need to extend the agreement into August.

 

Kyari said that Nigeria, Africa’s largest oil exporter, had not complied
completely with its promised cuts in past months, but that its current
reductions would ensure that it had made up for that by July.

 

“Our actual daily production indicates we’re in an overconforming
situation,” he said.

 

Kyari said NNPC is also working to ensure that Nigeria can stop importing
fuels within three years.The government is aiming to make a final investment
decision on building a condensate splitter, a simple refinery that can
process extra-light crude, by July. It will have a capacity of 50,000
barrels per day (bpd) initially, rising to 200,000 bpd.

 

He also said that they are taking a new approach to fixing the nation’s
ailing refineries, and would seek partnerships with private companies to
finance, fix and run them.

 

Kyari added that Nigeria is in conversations with U.S. companies including
Bechtel and KBR regarding potential projects including oil refineries,
pipelines and gas projects.

 

Efforts to revamp the refineries have failed for years, and NNPC shut them
down entirely in April. But Kyari said he was confident they could get them
up and running again.

 

“We have a new framework,” he said of the refinery projects. “This will
enable others to help us.”

 

 

 

 

Fitch sees South African economy contracting 5.5% this year

JOHANNESBURG (Reuters) - Ratings agency Fitch said on Friday it expected
South Africa’s economy to shrink 5.5% this year, as the coronavirus lockdown
batters an economy already in recession.

 

Fitch downgraded South Africa’s credit rating further into “junk” territory
in April, citing the lack of a clear path towards government debt
stabilisation and the expected impact of the COVID-19 shock on public
finances and growth.

 

In an outlook on sub-Saharan African sovereigns, Fitch said it projected the
fiscal deficit would surge to 14.4% of gross domestic product (GDP) in the
current fiscal year, with government debt seen rising to 80.9% of GDP.

 

“Government debt was already on a sustained upward trajectory before the
crisis,” Fitch said.

 

“Consolidation measures in the February budget relied heavily on
re-negotiating a public sector wage agreement that only expires in April
2021, which has so far been elusive.”

 

The government and public sector trade unions are still locked in a dispute
over wage increases that were due to come into force in April. Officials
have said they cannot afford the increases agreed as part of a three-year
deal in 2018, but unions are trying to force them to pay via the courts.

 

Africa’s most industrialised economy imposed one of the world’s strictest
lockdowns in late March. It was eased from the beginning of June to let
people outside for work, exercise or shopping, and allowing mines and
factories to run at full capacity subject to health and safety controls.

 

 

 

 

Malawi to see negative growth in 2020 if coronavirus persists, says minister

JOHANNESBURG (Reuters) - Malawi’s economy could shrink by 3.8% in 2020 in
worst case scenario estimates, Finance Minister Joseph Mwanamvekha said on
Friday during his budget address to the parliament.

 

Malawi, which recorded healthy growth of around 5% in 2019, has made two
different projections based on how the impact of the coronavirus abates in
the country.

 

Under the first case, its growth rate in 2020 may come down to 1.9%,
Mwanamvekha said.

 

 

 

 

Kenya central bank to hold its rate-setting meeting on June 25

NAIROBI (Reuters) - The Kenyan central bank’s Monetary Policy Committee will
hold its next rate-setting meeting on June 25, rather than the previously
communicated date of June 30, it said on Friday.

 

Policymakers left the bank’s benchmark lending rate unchanged at their last
meeting on May 27.

 

 

IMF approves additional $111.06 mln to Rwanda to address COVID-19 pandemic

NAIROBI (Reuters) - The International Monetary Fund said on Thursday it had
approved an additional $111.06 million disbursement to Rwanda to address the
effects of the COVID-19 pandemic on the country’s economy.

 

“Rwanda’s economic outlook has worsened since the approval of the first
(Rapid Credit Facility) request on April 2, 2020, leading to a further
downward revision in the 2020 GDP growth forecast from 5.1 to 2.0 percent
due to deepening of the COVID-19 impact,” the IMF said in a statement.

 

The funding brings total IMF COVID-19 support to Rwanda to $220.46 million,
it said, and will help finance the country’s urgent balance of payments and
budget needs.

 

The central African country implemented one of Africa’s strictest lockdowns
to try to stem the spread of COVID-19, the respiratory disease caused by the
novel coronavirus, including shuttering some businesses, closing borders and
schools.

 

Authorities have since begun to gradually open up the economy, although some
restrictions remain.

 

“The unprecedented spending needs generated by the pandemic, combined with
losses of revenues, are putting significant pressures on public finances,”
the IMF said.

 

Rwanda’s economy partly depends on tourism earnings, but the sector has
virtually ground to a halt during the outbreak.

 

Rwanda has so far had 476 cases of COVID-19 and two deaths.

 

 

 

 

Tanzania says it has begun negotiations over debt relief to shore up economy

DAR ES SALAAM (Reuters) - Tanzania has begun negotiations with creditors
over a G-20 nations initiative over debt relief, the finance minister said
on Thursday, part of efforts to mitigate against negative economic effects
sparked by the coronavirus outbreak.

 

The initiative is geared towards delaying debt repayments beginning in May
to December 2020, freeing up cash for governments to use for measures to
ease the economic impact of COVID-19.

 

“The 20 richest nations in the world (G-20) have urged bilateral official
creditors to provide debt relief to the world’s poorest nations including
Tanzania,” Philip Mpango said in parliament.

 

“The government has began negotiations with creditors to benefit from this
initiative.”

 

The announcement comes after the International Monetary Fund on Wednesday
said it had approved debt relief to Tanzania worth $14.3 million over the
next four months, and potentially up to $25.7 million over the next 23
months.

 

“IMF debt service relief will help free up resources for public sector
health needs and other emergency spending, as well as mitigate the balance
of payments shock resulting from the pandemic,” it said.

 

Neighbouring Kenya has said it will not seek debt relief under the G-20 plan
because the terms are too restrictive and it might affect Kenya’s credit
rating.

 

Earlier on Thursday, Mpango said that Tanzania expects its economy to grow
by 5.5% in 2020 compared with a previous estimate of 4%, after the
government took steps to mitigate the economic impact of coronavirus, a much
rosier outlook than the World Bank’s projection of 2.5%.

 

“This is due to rains ruining transport infrastructure in the country and
the impact of COVID-19 which hit a lot of countries that are our trade
partners,” he said.

 

In what is the last budget for this parliament before the general election
in October, Tanzania plans to spend 34.88 trillion Tanzanian shillings
($15.09 billion) for the fiscal year 2020/21, up from 33.11 trillion
shillings the previous year, Mpango said.

 

The finance minister told parliament that total public debt to GDP ratio
stood at 27.1% while external public debt to GDP was at 16.3%.

 

Tanzania plans to borrow a total of 7.94 trillion shillings from domestic
and international markets for the next fiscal year, said Mpango.

 

($1 = 2,311.0000 Tanzanian shillings)

 

 

 

 

South African mobile data-only operator plans 5G expansion

JOHANNESBURG (Reuters) - Rain, the mobile data-only network operator,
expects to accelerate the installation of 5G towers to 1,500 in larger
metropolitan areas in South Africa by December 2021, African Rainbow Capital
Investments (ARC) said on Friday.

 

Rain, in which ARC owns a 27% stake, established Africa’s first commercial
5G next generation network in partnership with China’s Huawei Technologies
in 2019.

 

South Africa’s fifth mobile operator, which launched its 5G network in the
Gauteng province in September, had 447 5G towers up-and-running by the end
of April.

 

ARC said the mobile operator is making good progress with its strategy and
has shown continued growth in clients and data usage during the coronavirus
pandemic.

 

Rain had 5,500 active live 4G sites at the end of April, thanks to an
infrastructure and services agreement with Vodacom, providing “a significant
proportion of rain’s revenue,” ARC said in its investment update.

 

 

 

South Africa should consider zero-based budgeting, finance minister says

CAPE TOWN (Reuters) - South Africa should think about moving to a zero-based
budget, the finance minister said on Friday, ahead of an emergency budget
dealing with the economic impact of the COVID-19 pandemic.

 

Finance Minister Tito Mboweni is expected to unveil a major shake-up in
spending and revenue forecasts for the recession-hit economy when he tables
a supplementary budget pencilled in for June 24.

 

“We have to adapt to the new situation. A new situation in my view ...
requires that we think seriously about going to zero-based budgeting,”
Mboweni said during a debate on the 2020 budget appropriation bill, which
was passed.

 

Under zero-based budgeting, all expenses must be justified for each new
period. Currently, the National Treasury provides budget forecasts for up to
three years ahead.

 

Mboweni said the new approach would allow the government to refocus
attention on growth-enhancing initiatives and that it could “no longer take
for granted that the baseline that was there last year will always be the
case”.

 

Africa’s most industrialised economy was in bad shape before the COVID-19
pandemic struck.

 

A strict nationwide lockdown from late March severely curtailed production
across key sectors like mining and retail, with the central bank predicting
a gross domestic product contraction of 7% this year.

 

 

 

Bank of England 'ready to act' as economy shrinks record 20%

Bank of England governor Andrew Bailey has said he will be "ready to take
action" to help the UK economy weather the coronavirus crisis.

 

He was speaking after figures showed that the country's economy shrank by
20.4% in April - the largest monthly contraction on record - as the country
spent its first full month in lockdown.

 

"We are still very much in the midst of this," Mr Bailey said.

 

But he said the figure was "pretty much in line" with what the bank
expected.

 

"Obviously it's a dramatic and big number, but actually it's not a
surprising number," he said.

 

The Office for National Statistics (ONS) said April's "historic" fall
affected virtually all areas of activity, as large parts of the economy
remained shut to battle the pandemic.

 

The contraction is three times greater than the decline seen during the
whole of the 2008 to 2009 economic downturn.

 

But analysts said April was likely to be the worst month, as the government
began easing the lockdown in May.

 

What else did the governor say?

Mr Bailey said there were "signs of the economy now beginning to come back
into life", but the big question was how much long-term damage the pandemic
would cause.

 

"That's the thing we've got to be very focused on, because that's where jobs
get lost," he said.

 

"Now we hope that will be as small as possible, but we have to be ready and
ready to take action, not just the Bank of England, but more broadly on what
we can do to offset those longer-term and damaging effects."

 

What a shrinking economy means in one town

The ONS also published figures for the three months from February to April,
which showed a decline of 10.4% compared with the previous three-month
period.

 

News of the slump comes as almost nine million UK workers are having their
wages paid by the government, while the number of people claiming
unemployment benefit rocketed by 856,500 to 2.1 million in April.

 

What was the political reaction?

Prime Minister Boris Johnson warned of a "tough" few months ahead, but
added: "We will get through it."

 

"We've always been in no doubt this was going to be a very serious public
health crisis but also have big, big economic knock-on effects.

 

"The UK is heavily dependent on services, we're a dynamic creative economy,
we depend so much on human contact. We have been very badly hit by this."

 

Chancellor Rishi Sunak said life would get "a little bit more back to
normal" once High Street shops could reopen.

 

That is set to happen on Monday in England, while shops in Northern Ireland
have already been allowed to resume trading. Scotland and Wales have their
own timetables for easing restrictions.

 

In response, shadow chancellor Anneliese Dodds warned that the UK's economy
was shrinking faster than those of other countries.

 

She said the UK would need "strong action to help us climb out of this as
quickly as possible".

 

What has happened to the economy?

In normal times, a country's Gross Domestic Product (GDP) - the value of the
goods and services it produces - increases, making its citizens on average
slightly richer. However, the ONS said April's fall in GDP was the biggest
the UK had ever seen.

 

"[The fall was] more than three times larger than last month and almost 10
times larger than the steepest pre-Covid-19 fall," said Jonathan Athow, the
agency's deputy national statistician for economic statistics.

 

"In April, the economy was around 25% smaller than in February."

 

What is GDP and how is it measured?

What is a recession?

He said virtually all areas of the economy had been hit, with pubs,
education, health and car sales all seeing marked falls in activity.

 

Carmakers and housebuilders were also badly affected, although Mr Athow told
the BBC's Today programme: "It's highly likely April will be the low point.

 

"Our own surveys and wider indicators have suggested a pick-up in economy
activity, but I think it's really too early to know how quickly economic
activity will recover in the coming months."

 

So the economy has shrunk 20%. How come the other 80% is still standing?

In large part, thanks to the extraordinary levels of state intervention
propping it up.

 

More than one in four UK workers - some 8.9 million - are now on the
government's furlough scheme that allows them to receive 80% of their
monthly salary up to £2,500.

 

The scheme has cost £19.6bn so far, while a similar programme for
self-employed workers has seen 2.6 million claims made worth £7.5bn.

 

Without these schemes, household consumption, which makes up nearly
two-thirds of the UK's GDP, would have fallen even further.

 

Staying positive

Sophie Lawler's 17 health clubs remain closed to their 100,000 members in
the north of England and Wales. And like the rest of the fitness sector, she
has no idea when she might get the green light to reopen.

 

"The whole sector has struggled financially, and may do so for years to
come," she said. "The industry is shouldering quite some rental burden,
costs we still incur even while we're closed."

 

Furloughing has been vital, she says, but she'd like the government to do
more - perhaps in the form of VAT exemptions or more support for
leaseholders.

 

Despite the uncertainties, however, she thinks the sector will weather the
storm. "In terms of demand, we will do pretty well when we get through to
the other side of this."

 

Three firms still positive despite the crisis

The ONS numbers add to the pressure to ease the lockdown more quickly, but
fears around the control of the disease have led to a step-by-step cautious
approach.

 

There is some pressure on the Treasury to consider similar economic rescue
packages to those made across Europe.

 

Germany, for example, has cut VAT and offered billions in a package to help
families with children and purchasers of green cars. France is offering huge
rescue funds to the car and aerospace industry.

 

The unprecedented jobs schemes here will help to protect livelihoods. But
with this scale of hit, it will not be enough.

 

How does this slump compare historically?

During the global financial crisis, from the peak in February 2008 to the
lowest point of March 2009, a total of 13 months, GDP shrank by 6.9%.

 

April's unprecedented contraction is three times that - and it happened in
one month.

 

The UK's economy was already shrinking even before April.

 

It contracted by 2% in the first three months of 2020, as just a few days of
impact from the virus pushed it into decline.

 

Economists expect an even bigger slump in the April-to-June period, plunging
the country into a deep recession.

 

So where do we go from here?

"Given the lockdown started to be eased in May, April will mark the trough
in GDP. So we are past the worst," said Andrew Wishart, UK economist at
Capital Economics.

 

"But the recovery will be a drawn-out affair, as restrictions are only
lifted gradually and businesses and consumers continue to exercise caution."

 

Tej Parikh, chief economist at the Institute of Directors, said coronavirus
had caused "unparalleled" economic turmoil which was "likely to scar the UK
economy for some time yet".

 

"Having provided businesses life support, the government must now figure out
how to stimulate activity," he added.

 

"Waiting until later in the year to act will risk more businesses and jobs
will be lost."

 

How does the UK economy compare with other countries?

We don't really know yet. The UK is one of the few countries to publish
monthly economic data - most others just produce quarterly and annual
figures.

 

We do know, however, that coronavirus has already pushed several major
economies into recession:

 

Japan saw a 3.4% fall in GDP for the first three months of 2020

Germany's economy shrank by 2.2% in the first three months of this year

And France saw a 5.8% contraction in the first quarter of 2020.

On Wednesday, the Organisation for Economic Co-operation and Development
warned that the UK could be the hardest hit by Covid-19 among major
economies.

 

The British economy is likely to shrink by 11.5% in 2020, slightly
outstripping falls in countries such as Germany, France, Spain and Italy, it
said.

 

What is a recession?

A recession is usually defined as two three-month periods - or quarters - of
economic contraction in a row.

 

Technically, we are not at that point yet. But the UK, along with much of
the rest of the world, is thought to be heading into the worst recession for
decades.--BBC

 

 

 

Coronavirus: One million miss out on support schemes, MPs say

More than one million people have fallen through cracks in government
schemes designed to support them during the coronavirus crisis, MPs says.

 

The Treasury Select Committee called on ministers to plug gaps in the
schemes to fulfil the government's promise of "doing whatever it takes".

 

Freelancers and recent employees are among those who cannot access support,
the MPs say.

 

The Treasury said the schemes protected millions of jobs and livelihoods.

 

But the committee's interim report, which was unanimously agreed by members,
said it was still not enough.

 

"The Treasury's interventions have been welcomed by many but rolling out
financial support at pace and scale has inevitably resulted in some hard
edges in policy design and some critical gaps in provision," the committee
said.

 

"The government must assist these people if it is to completely fulfil its
promise to do whatever it takes to protect people from the economic impact
of coronavirus."

 

The MPs said hundreds of thousands of people are suffering financial
hardship through no fault of their own, often due to unfortunate timing in
starting a new job or their employer's choice of timing in submitting
payroll paperwork to the HMRC tax authority.

 

When lockdown first started, the Treasury said it would cover up to 80% of
the salaries of workers who were unable to do their job from home. But those
who started a new job after the government's 28 February cut-off date are
not covered by the scheme.

 

Although this was later extended by three weeks, many have still been left
behind, the committee said.

 

The committee also said the government is failing to help those who have
become self-employed within the last year and those whose companies have
annual trading profits of more than £50,000.

 

Another group that has fallen through the net is freelancers or those on
short-term contracts. The MPs said that in industries such as television and
theatre, where short-term contracts are the norm, many workers are not
entitled to support under the schemes.

 

The report said: "This cannot be right. The government should give this
group access to financial support that equates to 80% of their average
monthly income, up to a total of £2,500 per month."

 

The report comes amid growing unease about the health of the economy, which
contracted by a record 20.4% in April. There are warnings of huge job losses
once the furlough schemes are wound down. On Sunday, Chancellor Rishi Sunak
acknowledged on the Andrew Marr show "there is going to be hardship ahead".

 

Treasury Committee chairman Mel Stride said: "The chancellor has said that
he will do whatever it takes to support people and businesses from the
economic impact of the pandemic. Overall, he has acted at impressive scale
and pace.

 

"However, the committee has identified well over a million people who,
through no fault of their own, have lost livelihoods while being locked down
and locked out of the main support programmes."

 

A Treasury spokesperson said: "The swift and targeted action we've taken has
protected millions of jobs and livelihoods and our interventions have been
rightly welcomed by the select committee.

 

"Our wide-ranging support package is one of the most comprehensive in the
world - with generous income support schemes, billions paid in loans and
grants, tax deferrals and more than £6.5 billion injected into the welfare
safety net.

 

"All our support is targeted to make sure we use public funds responsibly,
helping those who need it most as quickly as possible, while minimising
fraud risk."--BBC

 

 

 

 

Wall Street stages recovery after heavy losses on Thursday

US shares ender higher on Friday as buyers stepped in following sharp losses
earlier in the day.

 

At the closing bell, the Dow Jones was 1.9% up, while the S&P 500 rose 1.3%
and the Nasdaq gained 1%, buoyed by a positive US consumer confidence
survey.

 

But, after big falls on Thursday, the three indexes still saw their biggest
weekly percentage fall since mid March.

 

In Europe on Friday, London's FTSE 100 rose 1.74%, while France's Cac 40 was
up almost 2% and Germany's Dax 1.25%.

 

Thursday's torrid trading left the Dow down 7% and Europe 5% lower.

 

Thursday's sell-off was prompted by a bleak view of the US economy from its
central bank, the Federal Reserve, and reports of rising coronavirus cases
from some US states.

 

On Friday, data from the University of Michigan showed a surprisingly big
jump in confidence among consumers.

 

Markets remain volatile as investors struggle to assess the economic damage
of coronavirus.

 

Ryan Giannotto, director of research at GraniteShares ETFs in New York, said
there was no strong reason for the pick up in values: "People are just
taking a breather after the outright selling yesterday,.

 

"There's always going to be more headlines about coronavirus cases
increasing, more tests increasing. That's just something that markets,
investors and companies are going to have to learn to deal with."

 

In the UK, David Madden, analyst at CMC Markets, also said there were no
strong reasons for either days' moves:"The landscape hasn't changed in the
past 24 hours as there is still a possibility of a second wave of Covid-19
cases as countries reopen their economies.

 

"It is possible that yesterday's move was just a knee-jerk reaction to the
reports of rising cases, as traders have become accustomed to falling
infection rates. "

 

He highlighted the fact that stocks were still down since Wednesday's close.

 

 

Earlier, Asian markets reflected the downbeat trend overnight but were far
less affected. IG said this highlighted the feeling that a potential second
wave of coronavirus was more likely in the US or Europe.

 

Japan's Nikkei ended down 0.75% at 22,305, while Hong Kong's Hang Seng index
fell 0.7% to 24,301.

 

What is a recession?

Fed warns US faces 'long road' to recovery

UK economy virus hit among worst of leading nations

Thursday's falls on Wall Street followed a weeks-long rally that had helped
shares recover some ground from the lows seen in March.

 

This rally was triggered by hopes that the US economy would rebound as
authorities loosened restrictions put in place to try to slow the spread of
the virus.

 

Last week's surprise report showing US employers had restarted hiring in May
helped to push the tech-heavy Nasdaq share index to new highs.

 

But the recovery remains tentative. On Thursday, the US Labor Department
reported that another 1.5 million people had filed new unemployment claims
last week. More than 30 million continue to collect the benefits, it said.

 

US Federal Reserve policymakers said on Wednesday that the unemployment rate
could remain above 9% at the end of the year - close to the worst level of
the financial crisis,

 

Several US states that have moved to ease lockdown restrictions, including
Arizona and South Carolina, have seen an uptick in Covid-19 cases in recent
days.--BBC

 

 

 

British Airways' treatment of staff 'a disgrace', say MPs

British Airways' treatment of staff during the coronavirus crisis "is a
national disgrace", MPs have claimed.

 

A Transport Select Committee report accuses the airline of a "calculated
attempt to take advantage" of the pandemic by cutting thousands of jobs and
downgrading terms and conditions.

 

BA said it was doing all it could to keep "the maximum number of jobs".

 

But the MPs said the airline's actions fell "well below the standards we
would expect from any employer".

 

The aviation industry has been one of the hardest-hit since the pandemic
forced a lockdown. Airlines including EasyJet, Ryanair, and Virgin Atlantic,
and suppliers Rolls-Royce and Airbus, have announced thousands of job cuts.

 

BA plans a major restructuring, which could mean up to 12,000 redundancies
and changes to the terms and conditions of remaining staff.

 

The airline warned unions that if it could not reach an agreement over the
proposals it would push through the issue by giving staff notice and
offering them new contracts.

 

That outraged the unions.

 

Unite and the GMB are not engaging in talks with BA. Pilots' union Balpa has
had discussions with the airline over the possibility of voluntary
redundancies but said consultations were "hanging by a thread".

 

'Fire and rehire'

The MPs acknowledged that job losses in the sector "may sadly be inevitable"
due to the collapse in air travel. But it urged UK-based employers not to
"proceed hastily" by making large numbers of people redundant while the
government's furlough scheme was in place.

 

Unions told the committee that BA had threatened a "fire and rehire"
approach by giving redundancy notices to most of its 42,000 workers with the
intention of offering jobs to a proportion of them under diminished terms
and conditions.

 

British Airways: A breakdown in trust?

Airlines begin legal fight over quarantine plans

The Transport Committee found that BA had received nearly £35m from the
government as of 14 May by furloughing 22,000 staff. The MPs also noted that
at the end of 2019, the airline recorded profits after tax of £1.1bn and had
cash reserves of £2.6bn.

 

The committee's report said: "The behaviour of British Airways and its
parent company towards its employees is a national disgrace. It falls well
below the standards we would expect from any employer, especially in [the]
light of the scale of taxpayer subsidy, at this time of national crisis."

 

BA insists it will do all it can to protect jobs but says the airline
industry is in a "new reality".

There have been calls from MPs and unions for BA to be stripped of some of
its lucrative take-off and landing slots at Heathrow Airport as punishment
for the treatment of its staff.

 

Tory MP Huw Merriman, who chairs the committee, said: "We will continue to
bring pressure where we can, including the airport slot allocation process.
This wanton destruction of a loyal workforce cannot appear to go without
sanction by government, parliamentarians or paying passengers, who may
choose differently in future. We view it as a national disgrace."

 

'Deep crisis'

Balpa said the committee was "absolutely right" about BA. Brian Strutton,
the union's general secretary, said: "Any company using the cover of Covid
to slash jobs and terms and conditions like they have needs to be called
out.

 

"I have described consultation talks between Balpa and BA as hanging by a
thread due to BA's decision to issue a 'fire and rehire' threat. That
remains the case."

 

BA warns of job cuts in 'survival' letter to staff

Lufthansa plans to cut 22,000 jobs

The airline said in a statement: "We find ourselves in the deepest crisis
ever faced by the airline industry - a crisis not of our making but one
which we must address.

 

"We will do everything in our power to ensure that British Airways can
survive and sustain the maximum number of jobs consistent with the new
reality of a changed airline industry in a severely weakened global
economy."

 

BA is already embroiled in a bitter fight with its unions and a row with the
government. Now MPs have weighed in against the company as well.

 

It's a remarkable situation for BA. It was once seen as a flag carrier for
British values, a national champion, with the closest of links to the
government - and a place where staff were delighted to work.

 

So what's gone wrong? The Covid-19 crisis has scythed through the airline
industry, leaving previously strong companies teetering. Carriers around the
world are shedding jobs, as they prepare for a bleak few years.

 

BA is far from unique in wanting to make deep cuts. But there's more to it
than that. BA has spent the past decade trying to streamline its business,
in order to compete with low-cost upstarts like Ryanair and EasyJet.

 

That has sometimes caused conflict with its employees - and seemingly
created a legacy of mistrust and resentment, in particular among cabin crew.

 

Now, during a crisis, those feelings are bubbling up. At times, the company
looks as though it is under siege.

 

The MPs' report also urged the government to abandon its 14-day quarantine
rule at the end of June.

 

It called for a "more targeted and nuanced border control policy", allowing
people travelling from countries where the infection rate of Covid-19 is
relatively low to enter the UK on a less restrictive basis.

 

On Friday, BA, EasyJet and Ryanair launched legal action against the
"flawed" quarantine policy. The airlines are asking for a judicial review to
be heard "as soon as possible", claiming the measures introduced this week
will have a "devastating effect on British tourism and the wider economy".

 

They said they have seen no evidence of when proposed "air bridges" between
the UK and other countries will be implemented. Instead, they want the
government to re-adopt the policy it introduced on 10 March, which required
passengers from countries deemed at high risk of coronavirus infection to
self-isolate on arrival in the UK.

 

But Home Secretary Priti Patel has insisted that the policy can "help stop a
devastating second wave" of the disease.--BBC

 

 

 

Coronavirus: Face masks mandatory for Uber passengers and drivers

Ride-sharing giant Uber is to make it mandatory for passengers and drivers
to wear face coverings from Monday in the UK.

 

The minicab app firm said it was taking measures "to help everyone stay
safe" and had introduced measures to give drivers access to protective
equipment.

 

Face coverings will become compulsory on public transport and in hospitals
in England from Monday.

 

It comes after a study suggested masks could cut Covid-19 spread by up to
40%.

 

Uber drivers in London will have to submit a picture of themselves to verify
they are following the new rules before they can begin working.

 

Other measures include trialling in-car partitions in Newcastle, Tyne and
Wear, distributing more than two million masks to drivers and sending out
54,000 units of cleaning spray and hand sanitiser.

 

Uber's regional general manager for northern and eastern Europe, Jamie
Heywood, said: "For months we've been urging people to stay home, for their
safety and the safety of drivers who make essential trips.

 

"Now, as cities begin to reopen and people start moving again, we're taking
measures to help everyone stay safe and healthy every time they use Uber."

 

'Potentially useful tool'

Research on face coverings has been described as "slim" by many authorities,
and for health professionals there's always been the fear of a rush to snap
up medical-grade masks.

 

But studies in laboratories have shown not only how far droplets can be
spread by coughs but also how various kinds of materials can dramatically
reduce how many of those droplets do get through.

 

A homemade mask will not do a great job of protecting you but may reduce the
chances of you infecting others.

 

And if enough people follow that advice, the risks of the infection
spreading are brought down.

 

There have been passionate disagreements over this within the world of
science.

 

And even advocates would agree that the public wearing masks will not defeat
the virus on its own; but it's a potentially useful extra tool as we come
out of lockdown.

 

>From Monday, face coverings will be compulsory on public transport in
England.

 

Scotland already recommends wearing coverings in shops and on public
transport.

 

People in Wales are asked to wear three-layer face coverings on public
transport and other situations where social distancing is not possible.

 

Face coverings on public transport are also recommended in Northern Ireland.

 

According to government figures, the average person in England made 10 taxi
or private hire vehicle trips last year with an average duration of 20
minutes per trip.

 

More than a third of all licensed vehicles in England are registered in
London. Uber said its platform was used to complete 10 billion trips
worldwide in 2018.--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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