Major International Business Headlines Brief::: 10 March 2020

[Bulls n Bears]

 <http://www.bulls.co.zw/> Bulls.co.zw
<mailto:info at bulls.co.zw?subject=View%20and%20Comments> Views & Comments
<http://www.bulls.co.zw/blog> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

 


 

 


Major International Business Headlines Brief::: 10 March 2020

 


 

 


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

 


 

 


 

 

ü  Global shares plunge in worst day since financial crisis'

ü  Tesco sells its Asian stores in £8bn deal

ü  Cambridge Analytica: Australia takes Facebook to court over privacy

ü  Amazon's Just Walk Out till-free tech offered to rivals

ü  Nigeria to cut budget in face of oil price crash -finance minister

ü  South African Airways to begin talks on job cuts -rescue team

ü  South Africa's Eskom to extend power cuts to Tuesday

ü  S.Africa's rand crumbles to 4-year low as panic selling in Asia deepens
rout

ü  U.S. Railnet plans $11 billion railway project in southern Africa

ü  Indian automaker Mahindra starts assembling vehicles in Kenya

ü  Rainfall in Ivory Coast gives cocoa farmers hope over mid-crop

ü  Tunisia cuts 2020 growth forecast, seeks new IMF deal

ü  Moody's cuts South Africa's 2020 GDP growth forecast after coronavirus

ü  S.African drugmaker Aspen sees no immediate impact of India's decision to
curb drug exports

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


Global shares plunge in worst day since financial crisis

Shares around the world had their worst day since the financial crisis with
the dramatic falls leading to the day being dubbed "Black Monday".

 

The main financial indexes in the US closed down by more than 7%, while
London's index of top shares ended the day nearly 8% lower.

 

Similar drops took place across Europe and Asia as a row between Russia and
Saudi Arabia saw oil prices plunge.

 

Shares were already reeling from fears of the impact of coronavirus.

 

Analysts described the market reaction as "utter carnage".

 

In the US, the major stock indexes fell so sharply at the start of trading,
that the buying and selling of shares was halted for 15 minutes, as a
so-called "circuit breaker" aimed at curbing panicky selling came into
effect.

 

The Dow Jones Industrial Average sank by 7.8% or more than 2,000 points -
the biggest points-drop in history and the largest decline in percentage
terms since the financial crisis. The S&P 500 fell 7.6%, while the Nasdaq
dropped about 7.3%.

 

The declines in London wiped some £125bn off the value of major UK firms.

 

 

The UK and US falls were mirrored by similar declines in Europe, with the
main stock market indexes in France, Germany and Spain all closing over 7%
lower.

 

"There is panic setting into the market right now," said Andrew Lo,
professor of finance at MIT's Sloan School of Management. "Things are going
to get worse before they get better."

 

Oil output disputes

The dramatic drops were triggered by a row between Saudi Arabia and Russia
over oil output.

 

Saudi Arabia said it would slash prices and pump more oil, sparking fears of
a price war. This came after Russia rejected a proposal by oil exporters to
cut supply to cope with lower demand due to the coronavirus outbreak.

 

Analysts said Saudi Arabia was "flexing its muscles" to protect its position
in the oil market.

 

On Monday, the price of international oil benchmark Brent fell almost a
third in its biggest drop since the Gulf War in 1991 before recovering
slightly to trade 20% lower.

 

The price of oil had already fallen sharply this year as the coronavirus
began to spread internationally, with demand for fuel expected to decline.

 

'Surprising' decision

Those conditions make Saudi Arabia's decision to increase output "extremely
surprising", said Stewart Glickman, an energy equity analyst at CFRA
Research.

 

"This is not the first time that we've had a shock to the oil market, but it
is the first time that I can recall that you've had a supply shock and a
demand shock at the same time," he said.

 

"The craziness that you're seeing in the oil prices today, and companies
related to oil and gas, is a reflection of this being pretty unprecedented."

 

 

In the US and UK, oil firms led the market declines, with shares in Shell,
BP and Chevron down about 15% or more. Premier Oil saw its shares more than
halve in value.

 

In Frankfurt and Paris, banks were hit hardest, while the Russian rouble
tumbled about 8% to its weakest level since 2016.

 

In Brazil, steep falls in morning trade also triggered a temporary pause
with shares ending the day down 12%.

 

Earlier, Asian markets had also fallen sharply, with Japan's Nikkei 225
index down 5% while Australia's ASX 200 slumped 7.3% - its biggest daily
drop since 2008.

 

In China, the benchmark Shanghai Composite fell 3%, while in Hong Kong, the
Hang Seng index sank 4.2%.

 

Elsewhere on the markets, the price of gold hitting a seven-year high at one
point, trading at $1,700 per ounce. Gold is often seen as a desirable asset
to hold in times of uncertainty.

 

And in a historic moment, demand for benchmark UK government bonds for two-,
three-, four-, six- and seven-year maturities pushed prices so high that
yields - or the rate of return on the bond - briefly turned negative for the
first time. A negative yield means investors will lose money from holding
the bond.

 

Why should I care if stock markets fall?

Many people's initial reaction to "the markets" is that they are not
directly affected, because they do not invest money.

 

Yet there are millions of people with a pension - either private or through
work - who will see their savings (in what is known as a defined
contribution pension) invested by pension schemes. The value of their
savings pot is influenced by the performance of these investments.

 

So big rises or falls can affect your pension, but the advice is to remember
that pension savings, like any investments, are usually a long-term bet.

 

'Far-reaching economic effects'

While people have in the past responded to lower oil prices with making
travel plans and other spending, the coronavirus is likely to curb that
response, said Beth Ann Bovino, chief US economist at S&P Global Ratings.

 

And economists have said that if the decline in oil prices continue, they
are likely to have far-reaching economic effects. This could potentially
raise risk in debt markets or hurt investment in the energy sector, which
plays an important economic role in many parts of the US.

 

 

With uncertainty about the economy driven by questions about the coronavirus
outbreak, leaders have a "limited window of opportunity to contain the
panic", Prof Lo added.

 

"We can ask the public to be as confident as we want, but that's not going
to restore confidence unless they see real progress," he said.--BBC

 

 


 <mailto:info at bulls.co.zw> 

 


 

Tesco sells its Asian stores in £8bn deal

UK retail giant Tesco has agreed to sell its operations in Thailand and
Malaysia for ($10.6bn) £8bn.

 

The supermarket chain has 2,000 stores across both countries, under the
Tesco Lotus brand, and is selling them to Thai conglomerate CP Group.

 

Chief executive Dave Lewis said the sale would allow Tesco "to further
simplify and focus" its business.

 

He also said £5bn of the proceeds would be returned to shareholders via a
special dividend.

 

Tesco revealed in December it had received interest for its Asian stores,
which employ about 60,000 people, but did not reveal the bidders.

 

Tesco's only other overseas stores are in Ireland and in central Europe,
including Poland and Hungary.

 

The retailer added that the sale would also slash debt and streamline the
group, enabling a "stronger focus" on UK, Irish and central European
activities.

 

The proposed sale was unanimously agreed by the Tesco board, but needs
approval from shareholders and regulators. The deal is set to be finalised
in the second half of this year.

 

The move comes as Mr Lewis prepares to step down this year, having overseen
a major overhaul at Tesco during his five years in charge. He has cut
thousands of jobs as part of a massive cost-cutting programme.

 

CP Group is Thailand's largest private company and one of the world's
largest conglomerates, owning more than 10,000 Seven Eleven stores and one
of Asia's largest telecommunications firms.

 

The group actually owned the stores - when they were known as Lotus - back
in the late 1990s, but sold them to Tesco after losing money during the
Asian financial crisis of 1997.--BBC

 

 

 

Cambridge Analytica: Australia takes Facebook to court over privacy

Australia's privacy regulator is taking Facebook to court over the Cambridge
Analytica scandal.

 

The Office of the Australian Information Commissioner said Facebook had
seriously infringed the privacy of more than 300,000 Australians.

 

The social media giant left personal data "exposed to be sold and used
for... political profiling".

 

The scandal involved harvested Facebook data of 87 million people being used
for advertising during elections.

 

"Facebook failed to take reasonable steps to protect those individuals'
personal information from unauthorised disclosure," the Australian
commissioner's office said.

 

Australia's federal court can impose a fine of A$1.7m (£860,000) for every
serious or repeated interference with privacy, it added.

 

A Facebook spokesperson said the company had "actively engaged" with the
commissioner since it opened the investigation in 2018.

 

They said Facebook had "made major changes... to help people protect and
manage their data".

 

"We're unable to comment further as this is now before the Federal Court,"
the spokesperson said.

 

How did the Cambridge Analytica scandal happen?

Researcher Dr Aleksandr Kogan and his company GSR used a personality quiz
called "This Is Your Digital Life" to harvest the personal information of
people who used it.

 

But because of the way Facebook's rules worked at the time, it could also
access the information of a user's friends, even if those people had never
authorised the app.

 

Some of that information was given to Cambridge Analytica, which used it in
US political advertising.

 

Facebook was fined £500,000 by the UK Information Commissioner's Office
(ICO) in October 2018 for what it called a "serious breach" of the law. It
was the maximum fine available under the law before a new privacy law (GDPR)
took effect.

 

In the United States, regulators levied a record $5bn (£4bn) fine over the
same issue.--BBC

 

 

 

 

Amazon's Just Walk Out till-free tech offered to rivals

Amazon is offering its till-less technology to other High Street shops, just
over two years after launching it via its own Go Grocery chain.

 

Go Grocery shoppers scan a smartphone app as they arrive, allowing them to
pay via their main Amazon accounts.

 

It has now adapted its Just Walk Out system for other retailers so shoppers
register a payment card on entry and are automatically billed as they leave.

 

But, unlike at Go Grocery, users' Amazon accounts will not be involved.

 

And the firm has said that information collected about consumers will only
be used to support the retailers it has partnered with.

 

"We only collect the data needed to provide shoppers with an accurate
receipt," Amazon's website says.

 

"Shoppers can think of this as similar to typical security camera footage."

 

The system involves fitting a shop with hundreds of cameras and
depth-sensors, whose data is then remotely analysed on Amazon's computer
servers.

 

The software can distinguish whether a shopper has picked up and kept a
product for purchase or if they have only examined an item before replacing
it back on a shelf.

 

Amazon says it can install the required equipment in "as little as a few
weeks".

 

NBK Retail consultancy founder Natalie Berg said the move had been
long-expected.

 

"It's far more lucrative for Amazon to license the technology to other
retailers than to just use it in its own grocery stores," she said.

 

"What Amazon does very well is cut out friction and of course the biggest
source or friction in the grocery stores and supermarkets is the checkout.

 

"But there will still be opportunities for other vendors [with rival
solutions] because you're never going to see Walmart implement Amazon's
checkout-free tech."

 

'Job losses'

The announcement comes two weeks after Amazon opened its largest Go Grocery
shop.

 

The Seattle-based shop stocks about 5,000 items and covers more than 10,000
sq ft (929 sq m), making it about five times bigger than the average Go
outlet.

 

But UK supermarkets can be up to 185,500 sq ft and questions remain about
how long it will take before Amazon or any of its rivals' technologies can
be reliably deployed at such scale.

 

Simpler technologies to reduce the need for staffed checkouts include
portable barcode scanners and tills that allow shoppers to ring up their own
items.

 

Advocates of such tech suggest it frees up workers to perform more
interesting tasks.

 

Amazon's own site says: "Retailers will still employ store associates to
greet and answer shoppers' questions, stock the shelves, check IDs for the
purchasing of certain goods, and more - their roles have simply shifted to
focus on more valuable activities."

 

Ms Berg said: "Ultimately, there will be fewer jobs as automation comes in.

 

"But [those that remain] will focus on more customer-facing tasks and should
provide a better experience to customers.

 

"And from that point of view, the skills required across the retail sector
are going to evolve massively over the next decade."---BBC

 

 

 

Nigeria to cut budget in face of oil price crash -finance minister

ABUJA (Reuters) - Nigeria will cut size of its budget in the face of sharp
declines in the price of crude oil, the nation’s finance minister told
reporters on Monday.

 

Zainab Ahmed, speaking in Abuja after a meeting with President Muhammadu
Buhari, said a committee including herself, the minister of state for
petroleum, the head of state oil company NNPC and the central bank governor
would determine the size of the budget cut in the coming days and revisit
the benchmark crude oil price of $57 a barrel used to calculate the budget.

 

Benchmark Brent crude futures were down 19.5% at $36.43 a barrel by 1449
GMT.

 

 

 

South African Airways to begin talks on job cuts -rescue team

JOHANNESBURG (Reuters) - Specialists appointed to try to save struggling
South African Airways (SAA) on Monday said they plan to begin employee
consultations on job cuts.

 

SAA entered a form of bankruptcy protection in December, with administrators
Les Matuson and Siviwe Dongwana taking over management of the state-owned
airline, which hasn’t made a profit since 2011.

 

 

 

South Africa's Eskom to extend power cuts to Tuesday

JOHANNESBURG (Reuters) - South African power utility Eskom, which resumed
nationwide power cuts on Monday, said it will extend outages to Tuesday
after delays in returning to service some of the generation units that had
broken down.

 

South Africa’s economy slipped into recession last year, highlighting the
impact of power cuts on the economy.

 

On Monday Eskom cut up to 1,000 megawatts (MW) from the grid because of
breakdowns of generation units.

 

It had planned to end the power cuts at 2300 local time (2100 GMT) but later
said the outages would continue until Tuesday, when up to 2,000 MW would be
cut from the grid.

 

“Load-shedding is likely to continue for the rest of the week,” Eskom said
in a statement, referring to rotational power cuts. “There has been further
delay on some generation units that were expected to return to service
today.”

 

Eskom said there were breakdowns of generating units with 12,371 MW capacity
as of 1410 GMT and planned maintenance outages accounting for 4,728 MW. The
utility has a total of about 45,000 MW of generating capacity.

 

The utility, which has not implemented any power cuts since Feb. 22,
produces more than 90% of South Africa’s electricity, but its ailing fleet
of coal-fired plants have struggled to keep up with demand, leading to
periodic power shortages.

 

 

 

S.Africa's rand crumbles to 4-year low as panic selling in Asia deepens rout

The rand was already on the back foot after ratings firm Moody’s, the last
of the top three agencies to rank the country at investment level, cut it
2020 growth forecast on Friday to 0.4% from 0.7%, citing the impact of the
coronavirus alongside long-standing fiscal frailties.

 

South Africa confirmed its first case of the virus on Thursday, and by the
weekend officials had confirmed another two cases, but offshore risks to the
rand looked set to drag the currency even lower.

 

At 0630 GMT, the rand was 3.82% weaker at 16.3000 per dollar, having plunged
to 16.9850, its lowest since February 2016, earlier in the session.

 

The sell-off was exacerbated by low liquidity as well as the ongoing
unwinding of carry trades as downgrade risks heightened.

 

Against the euro, the rand was down 4.8% to 18.5622 and 3% softer versus the
British pound at 21.2407. The local currency hit a record low against the
Japanese yen, giving up more than 6%.

 

Volatility on the rand also spiked, with the one-month risk reversals, used
to hedge against sharp price moves, climbing to a 7-month high.

 

Bonds also suffered despite indications that central banks in developed
markets, including the U.S. Federal Reserve, would intervene further by
cutting lending rates to shield their economies.

 

“While this should theoretically play into the hands of the rand as the
interest rate differential grows, only time will tell whether this is
sufficient to prevent a full-blown rotation out of EM assets,” ETM Analytics
economists said in a note.

 

“We’ve been warning for some time that the imprudent fiscal environment and
fundamental pressures that exist in South Africa suggest the rand will be
amongst the most susceptible to an external shock, and this is exactly what
appears to be materializing at the moment.”

 

The yield on the benchmark 2030 government issue was up 12.5 basis points to
9.18%.

 

 

 

 

U.S. Railnet plans $11 billion railway project in southern Africa

LUSAKA (Reuters) - U.S.-based Railnet International plans to invest an
estimated $11 billion in a modern railway line and high speed trains linking
Zambia, Zimbabwe and Mozambique, its chief executive said on Sunday.

 

Railnet CEO Donald Kress said in an interview his railway development and
construction company was in talks with governments in the three countries
and signed an agreement to start feasibility studies in Zambia.

 

“We have a group known as Magcor International and their CEO has arranged
financing through a group of investors,” Kress told Reuters on Sunday
following the signing of an agreement on Saturday.

 

“Until we have signed a contract with the investors, they have requested to
remain anonymous,” Kress said in an interview.

 

The investment in the project, running from Zambia’s Copperbelt province to
the port of Beira in Mozambique via Harare in Zimbabwe includes the cost of
locomotives and wagons, he said.

 

Feasibility studies were expected to begin in the next six weeks and would
be followed by detailed engineering design for the project on the Zambian
side, Kress said.

 

Construction was expected to begin in January 2021, Kress said, adding that
Railnet would replace the existing system to allow freight trains to travel
at 120 km/hour and passenger trains at 160 km/hour.

 

Transport and Communication Permanent Secretary Misheck Lungu, who signed
the agreement for Zambia said Railnet would build the new railway line
parallel to the existing old one.

 

Lungu said the project would enable business including mining companies in
Africa’s second-largest copper producer to transport bulk cargo by railway
instead of using roads.

 

Railnet would operate the modern railway for a number of years and hand it
over to the government after recovering its investment from the profit made,
Lungu said.

 

 

 

 

Indian automaker Mahindra starts assembling vehicles in Kenya

NAIROBI (Reuters) - Indian automaker Mahindra & Mahindra has started
assembling two of its small commercial trucks in Kenya, it said on Monday,
becoming the latest global carmaker to start operations in East Africa’s
richest economy.

 

Mahindra’s entry follows that of French carmaker Peugeot SA and Germany’s
Volkswagen AG, both of which announced resumption of local assembly in 2017
and 2016 respectively, after decades-long absences.

 

The interest in the local new vehicle market by international firms, which
also include Swedish truck maker Volvo AB, comes in the wake of government
efforts to attract investment in the sector to create jobs, by offering a
range of incentives such as tax breaks.

 

Nairobi is also planning to limit the age of second hand vehicles that can
be imported into the market as part of the drive to encourage investment in
local assembly of new vehicles.

 

Used car imports from countries such as Japan make up 85% of annual car
sales in Kenya, while the rest are locally assembled or brand new imports
that have already been assembled.

 

Mahindra has started to assemble its Scorpio Single and double cabin small
trucks at a plant in the coastal city of Mombasa. The plant is owned by its
local partner, car retailer Simba Corporation, Mahindra said in a statement.

 

Mahindra plans to use Kenya as a gateway into the wider African market as it
looks to grow its share of the commercial and passenger vehicle categories,
it said.

 

Kenya’s President Uhuru Kenyatta has asked government officials and local
lenders to discuss how they can offer affordable auto loans to consumers in
order to further boost demand for new vehicles, his office said in a
statement.

 

“I shall continue to provide incentives to expand this sector,” Kenyatta was
quoted as saying in the statement.

 

 

 

Rainfall in Ivory Coast gives cocoa farmers hope over mid-crop

ABIDJAN (Reuters) - Above average rainfall last week in several areas of
Ivory Coast’s cocoa-growing regions could boost the April-to-September
mid-crop, farmers said on Monday.

 

Ivory Coast, the world’s top cocoa producer, is in its dry season from
November to March, when downpour is scarce or poor. Farmers in villages said
the October-to-March main crop was tailing off.

 

In the central regions of Daloa, Bongouanou and Yamoussoukro, farmers
reported improved moisture last week, adding they were now expecting
abundant rainfall until late April, which would boost harvesting in June and
July and make for a mid-crop strong finish in August and September.

 

In the centre-western region of Daloa, farmers welcomed the rainfall after
the drought of the past few weeks that affected the mid-crop’s size.

 

“We are happy because the trees will be able to recover,” said Albert N’Zue,
who farms near Daloa.

 

Data collected by Reuters showed rainfall in Daloa was at 18.5 millimetres
(mm) last week, 4 mm above the five-year average.

 

Although rainfall was below average in the central regions of Bongouanou and
Yamoussoukro, severely hit by the dryness in the past weeks, farmers said
they were happy to notice an improvement in the levels of rainfall.

 

Bongouanou received 7.8 mm last week, 6 mm below average, while Yamoussoukro
received 7.5 mm last week, 5.7 mm below average.

 

In the eastern region of Abengourou, farmers said last week’s abundant rains
would help plenty of pods be ready for harvesting in May.

 

“If the rains continue falling, the mid-crop won’t be deceiving here,” said
Sylvain Bia, who farms near Abengourou. Data showed rainfall in Abengourou
was 32.3 mm last week, 17.6 mm above the average.

 

Farmers had the same comments in the western region of Soubre, where 13.6 mm
of rainfall fell last week, 2.1 mm above average.

 

Farmers were also confident in the southern region of Agboville which
received 16.1 mm last week, 1.4 mm above average.

 

The southern region of Divo received 9.5 mm last week, 6.2 mm below average
but farmers said the crop was not in danger.

 

Temperatures over the past week ranged from 27.6 to 31.7 degrees Celsius.

 

 

 

Tunisia cuts 2020 growth forecast, seeks new IMF deal

TUNIS (Reuters) - Tunisia will seek a new loan deal with the International
Monetary Fund (IMF), its prime minister said on Sunday, after slashing the
country’s economic growth forecast for this year due in part to the impact
of the coronavirus crisis on tourism.

 

Elyess Fakhfakh told the local Magreb newspaper the government now expected
growth of just 1% this year, compared with the 2.7% envisaged in the 2020
budget, with the coronavirus crisis responsible for a hit of half a
percentage point.

 

Tunisia struck a deal with the IMF in December 2016 for a $2.8 billion loan
package to overhaul its sclerotic economy, including steps to cut chronic
deficits and trim bloated public services.

 

The IMF disbursed a $247 billion loan tranche from that deal in June last
year. But since then, negotiations on a sixth instalment have stalled due to
a political crisis following the October election. The current IMF deal ends
in April.

 

Fakhfakh did not give details about his hopes for a new deal. “We have no
other choice,” he told the newspaper.

 

Tunisia’s economy has struggled in the nine years since the ouster of
veteran autocrat Zine El-Abidine Ben Ali, who died in exile in September.

 

Unemployment is more than 15%, and as high as 30% in some cities, while
inflation is high, and successive governments have struggled to rein in
fiscal deficits and control public debt.

 

Fakhfakh, who took office two weeks ago, did not give details about the cut
to the growth forecast, but analysts have warned the global coronavirus
crisis would hit the vital tourism sector, while the agricultural sector is
struggling with a severe shortage of rain.

 

Tourism accounts for about 8% of Tunisia’s GDP and is a key source of
foreign currency, with around nine million tourists visiting the country
last year.

 

Fakhfakh said he was seeking to obtain the sixth instalment of the current
IMF loan deal to help the country secure other external financing and issue
bonds.

 

The North African country needs to borrow about $3 billion internationally
in 2020 to meet spending commitments.

 

“If the IMF delegation does not visit Tunisia until March 20, we will lose a
lot,” Fakhfakh said.

 

 

 

Moody's cuts South Africa's 2020 GDP growth forecast after coronavirus

JOHANNESBURG (Reuters) - Ratings agency Moody’s on Friday cut its 2020
growth forecast for South Africa to 0.4% from 0.7%, one of several countries
it saw as having lower growth prospects in a new report because of the
coronavirus outbreak.

 

“The global spread of the coronavirus is resulting in simultaneous supply
and demand shocks,” Moody’s said in a global research report.

 

Moody’s is the last of the major international agencies to keep an
investment grade rating on South Africa and is scheduled to review that
assessment this month.

 

“We expect these shocks to materially slow economic activity, particularly
in the first half of this year. We have therefore revised our 2020 baseline
growth forecasts for all G-20 economies.”

 

South Africa on Thursday confirmed its first case of coronavirus in a
citizen who had visited Italy.

 

Since the coronavirus outbreak began in the central Chinese city of Wuhan in
December, it has infected almost 100,000 people worldwide and killed more
than 3,000, mostly in China.

 

 

 

S.African drugmaker Aspen sees no immediate impact of India's decision to
curb drug exports

JOHANNESBURG, (Reuters) - The deputy chief executive of South Africa’s Aspen
Pharmacare said on Friday the drugmaker sees no immediate impact of India’s
decision this week to restrict the export of 26 pharmaceutical ingredients
due to the coronavirus outbreak.

 

An important supplier of generic drugs to the world, Indian drugmakers rely
on China, the source of the virus outbreak, for almost 70% of the active
pharmaceutical ingredients (APIs) for their medicines. Industry experts say
they are likely to face shortages if the epidemic drags on.

 

“Certainly no immediate impact and we have only a very low exposure to any
of those chemicals on that list,” deputy CEO and financial director Gus
Attridge told Reuters in a telephone interview after presenting the firm’s
first-half results, which were published on Thursday.

 

“Just in South Africa we might not get stock (of paracetamol). But we do
have decent stocks around API and supply to be able to weather that type of
storm,” CEO Stephen Saad told analysts at the presentation in Cape Town.

 

“Of course if this lasts for a year and there are no supplies... we’re going
to see issues.”

 

The drugmaker, which is 170 years old and has a presence in about 56
countries, said the virus had resulted in its Chinese commercial team being
largely inactive since February and this would impact the second half
results of its 2020 financial year.

 

Aspen expects an impact on its anaesthetics and thrombosis portfolios, which
account for 30% of its commercial pharma business. In China, patients are
deferring elective surgeries such as hip replacements and cataract
extraction to avoid being exposed to the virus, Attridge said.

 

But sales there will be sustained by procedures such as haemodialysis, which
cannot be deferred.

 

“There is some literature around that sedation is helpful for treating the
virus itself so there may be some application growing in the anaesthesia
space but we don’t see evidence of that right now,” Attridge told Reuters.

 

Aspen is, however, seeing a spike in demand for medicines such as
antibiotics and headache tablets in Australia as people try to fill their
medicine cabinets at home with products they think might be helpful if they
get the virus, Attridge said.

 

“Those are flying off the shelves. Pharmacies in Australia are having their
biggest sales days in history and stock is being depleted,” he added.

 

 

 

 

 

 

 

 

 

 

 

 


 

 


 

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.

 


 

 


(c) 2020 Web: <http:// www.bulls.co.zw >  www.bulls.co.zw Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

 


 

 

 

 

 

 

Invest Wisely!

Bulls n Bears 

 

Telephone:      <tel:%2B263%204%202927658> +263 4 2927658

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw&sa=D&sntz=1&usg=AF
QjCNH8LYgdY55h-XKseuM8Kpr-JKdfhQ> www.bulls.co.zw 

Blog:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1
&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bulls.co.zw/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 



 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200310/5cc0f530/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 23068 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200310/5cc0f530/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 35508 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200310/5cc0f530/attachment-0006.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 33746 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200310/5cc0f530/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 31402 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200310/5cc0f530/attachment-0008.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 4846 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200310/5cc0f530/attachment-0009.jpg>