Major International Business Headlines Brief::: 16 March 2020

Mon Mar 16 09:10:27 CAT 2020

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Major International Business Headlines Brief::: 16 March 2020

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ü  S.Africa raises poultry-import tariffs   

ü  South Africa's rand steady as coronavirus-induced sell-off pauses

ü  Kenyan shilling drops slightly after first case of coronavirus

ü  Zambian power firm Zesco says electricity deficit growing

ü  South Africa's Sasol set for worst week yet as oil crash speeds investor flight

ü  Tunisian beach resorts face up to coronavirus blight

ü  S.Africa's Telkom says job cuts will wipe 1.5 bln rand from 2020 earnings

ü  Shares in South Africa's Sasol jump nearly 30% as oil price recovery sparks buying

ü  Mauritius central bank pumps in liquidity to support businesses

ü  South Africa's Eskom says 4,000 MW power cuts to last until Friday

ü  Rate cuts: US goes to almost zero and launches huge stimulus programme

ü  Coronavirus: Asia stocks fall after global central bank action

ü  Coronavirus: Louis Vuitton owner to start making hand sanitiser

ü  Bill Gates steps down from Microsoft board to focus on philanthropy

ü  Coronavirus: Europe ramps up support for ailing firms

ü  Sasol considers rights issue, further asset sales after share plunge

 <mailto:info at bulls.co.zw> 

S.Africa raises poultry-import tariffs

The South African Poultry Association has applied for tariffs of 82 percent on poultry shipments from the US and Brazil

South Africa raised tariffs on poultry imports to help protect local producers who’ve sought measures to counter a flood of cheap shipments.

The announcement immediately drew criticism from the US government, which previously threatened to exclude South Africa from a preferential trade agreement after a disagreement over the levies in 2015. The US in January began reviewing the nation’s market access under the so-called Generalised System of Preferences — the loss of which could put as much as $2,4 billion of South African exports at risk.

Duties on frozen bone-in chicken pieces were raised to 62 percent from 37 percent for imports from all nations excluding the European Union and Southern African Development Community members, the National Treasury said in the Government Gazette on Friday. Levies for frozen boneless chicken cuts increased to 42 percent from 12 percent, it said.

South Africa imported 383 000 tonnes of chicken in 2018, excluding mechanically de-boned meat used to make processed food such as sausages, government data show. That’s about 19 percent of total supply.

The South African Poultry Association had applied for tariffs of 82 percent on poultry shipments from the US and Brazil that have contributed to annual losses of R6,5 billion ($393 million) for the local industry.

“We created grain farms in Brazil, America and Europe and we’ve created feed mills, chicken farms and slaughter houses there,” Izaak Breitenbach, a general manager of the South African Poultry Association said by phone.

“And what we’ve created is poverty in South Africa and slow economic growth in South Africa.”

The new measures don’t target a particular country and are intended to protect domestic farmers, said Sidwell Medupe, a spokesman for South Africa’s Department of Trade and Industry.

No import duties are levied on chicken pieces from the EU and SADC because of existing free-trade agreements.

It is unclear how the tariff increases will affect the ability of the US to export a maximum of 65 000 tonnes of frozen bone-in chicken portions for free.

That’s a legacy of a 2015 dispute over poultry that threatened to exile South Africa from the US market by excluding it from the African Growth and Opportunity Act, which provides 39 sub-Saharan African countries with

duty-free access to the US for about 6 500 products ranging from textiles to manufactured items.

“The US government is deeply disappointed with South Africa’s decision to raise the already high tariff rates on imported poultry to a substantially higher level,” Robert Mearkle, a spokesman for the US Embassy in Pretoria, said in an emailed response to questions.

Ensuring that US poultry exports “continue to have fair access to the South African market is critical,” he said.

South Africa’s government and industry representatives signed off on a “master plan” for the industry in November, in which companies committed to invest R1,5 billion in production facilities by the end of 2020 that could create almost 4 000 jobs.

The poultry industry is the second-largest component of South Africa’s agriculture industry and employs about 110 000 people, according to the industry body.  — Bloomberg.

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South Africa's rand steady as coronavirus-induced sell-off pauses

JOHANNESBURG (Reuters) - South Africa’s rand held steady in early trade on Friday as a pause in the global selloff of risk assets, triggered by panic over the coronavirus and tumbling oil prices, gave investors a chance to reassess positions ahead of the weekend.

As of 0645 GMT, the rand was 0.69% firmer at 16.4500 per dollar, compared with Thursday’s session-low of 16.6150.

The mood in financial markets improved somewhat on Friday, with Asian equities staging a recovery and U.S. stocks futures pointing to a firmer start on Wall Street as attention turned to a U.S. stimulus package.

The turnaround came after assets across the developed and emerging markets saw record sell-offs on Thursday as investors scrambled for safe-havens even after the European Central Bank announced stimulus measures to fight the economic fallout from the coronavirus outbreak.

Locally, stocks recorded their worst single-day fall in more than 22-years in the previous session, bonds saw their biggest selloff on record, and the rand hovered around the 16.50 mark, a level seen as a bearish technical gauge, especially with dollar back in vogue.

The U.S. Federal Reserve’s move to pump $1.5 trillion of liquidity into the banking system quickened the flight to the greenback, but Friday was likely to see some profit-taking, traders said.

“The rand has managed to make back some modest ground in early trade. Whether or not this can be sustained will depend on how risk conditions hold up as the markets remain fixated on coronavirus headlines,” economists at ETM Analytics said in a note.

Bonds remained on the ropes with the yield on the government issued 2030 paper up 6 basis points at 9.855%.

Kenyan shilling drops slightly after first case of coronavirus

NAIROBI (Reuters) - The Kenyan shilling edged down on Friday after the government confirmed the East African nation’s first case of the new coronavirus, traders said.

At 0952 GMT, commercial banks quoted the shilling at 102.80/103.00 per dollar, down from Thursday’s close of 102.40/60.

“We have seen those who were willing to sell (dollars) at the previous price pull off. With supply coming down, its a challenge,” said a senior currency trader at a commercial bank.

Kenya’s first case of the COVID-19 is a woman who had returned to Nairobi from the United States on March 5 through London, the health minister said.

Zambian power firm Zesco says electricity deficit growing

LUSAKA (Reuters) - Zambia’s power supply deficit has grown by nearly 20% since September, state power utility Zesco said on Friday, despite massive price hikes and government fastracking support for green energy projects to fight drought-induced electricity shortages.

Zesco’s Director of Corporate Services Patrick Mwila told a media briefing the electricity deficit had grown to 810 megawatts (MW) from a 690 MW gap in September.

The senior executive said a deal to import 300 MW from South Africa’s struggling power utility Eskom had expired and would not be renewed.

Zesco was now relying on short-term power imports from the Southern African Power Pool (SAPP) to plug the deficit, he said.

Mining companies including First Quantum Minerals, Barrick Gold Corp and Glencore are among Zambia’s biggest power users. They have not faced rationing as a result of the shortfall.

As of March 12 the water level at the Kariba dam, Zambia’s biggest single generating facility, was 12% full, compared with 43% at the same time last year and an ideal capacity of 69%, Mwila said.

Zesco has already used 25% of the water that it was allocated for power generation this year by the Zambezi River Authority, which manages the river on behalf of Zambia and Zimbabwe, he said.

“It is important that the water resource is prudently managed to guarantee power generation,” Zesco’s director for power generation Fidelis Mubiana said at the same briefing.

Mubiana said several expatriates from a Chinese firm building a new 750 MW power station had not returned from holiday due to the coronavirus, but that that was unlikely to affect the project.

South Africa's Sasol set for worst week yet as oil crash speeds investor flight

JOHANNESBURG (Reuters) - An oil price crash has wiped 79 billion Rand ($4.8 billion) off the market value of South African petrochemicals group Sasol, adding to the government’s difficulties in shoring up business confidence as giant state-backed companies flounder.

Sasol shares hit a 21-year low on Thursday - falling 42% by 1400 GMT and bringing losses this week to 80% - as oil prices plunged.[O/R]

Barring a significant recovery, this will be Sasol’s worst week since listing in September 1989.

The destruction of value at one of South Africa’s biggest companies is another problem for a government grappling with a heavily-indebted state power company and airline.

Sasol is not a state-run company, but its top two shareholders are state agencies, which jointly hold a nearly quarter share.

The top shareholder, state asset manager the Public Investment Corporation has, a 15.05% stake, while local development finance institution Industrial Development Corporation holds 8.53%, according to Refinitiv Eikon.

Stocks with exposure to oil markets dived everywhere on Monday as crude prices suffered their biggest daily sell-off since the 1991 Gulf War, dropping 25% after top producers Saudi Arabia and Russia began a price war that threatened to leave oil markets overwhelmed with supply.

Sasol shares were already fragile after the company reported late last month that half-year profits plunged because of problems at its Lake Charles Chemicals project (LCCP), an ethane cracker project in Louisiana.

The U.S. facility is costing billions of dollars more than initial estimates.

The oil price crash added momentum to the selling as investors grew concerned about the company’s debt burden. Oil prices slid another 5% on Thursday.

“If this environment persists for an extended period of time, it is likely that Sasol will need to both raise new equity and accelerate its asset sales programme to repay debt,” Prudential, the fourth biggest shareholder, wrote in a market comment dated March 9.

A Sasol spokesman did not immediately respond to Reuters’ request for comment.

Sasol, which is the world’s biggest maker of motor fuel from coal, said in Februrary that its gearing - net debt to EBITDA - stood at 2.9 times, below the maximum of 3.5 times allowed under its bank covenants.

“With the oil price collapsing, it’s eroded the margin they were expecting on the [LCCP] project,” said an investor who sold his Sasol shares on Monday.

Shares in the company were last trading at 30.9 Rand - a 95% decline from their level just 18 months ago

Tunisian beach resorts face up to coronavirus blight

HAMMAMET, Tunisia (Reuters) - Ammar Jouini had been optimistic about this year, hoping that after Tunisia’s tourism sector finally recovered from years of pain caused by militant attacks in 2015, his souvenir business might also be looking up.

But with the coronavirus devastating holiday bookings, he is thinking of shutting up his shop in the popular beach resort of Hammamet and seeking new work for the season.

“I have to wait three or four days to sell only one piece. My costs are much higher than my income. It seems the difficulties will return again,” he said.

Tunisia had been gearing up for a season of record visitor numbers that politicians hoped would make up for gloom elsewhere in the economy. But last week Prime Minister Elyes Fakhfakh said forecast economic growth had fallen to 1% from 2.7%, citing the virus.

In another blow to the tourist trade, Tunisia has announced it will require everyone arriving from abroad to self-isolate for two weeks.

Tourism accounts for nearly a tenth of Tunisia’s economy, is its second-biggest employer after agriculture and provides an important source of foreign currency.

The crash that followed the 2015 attacks caused gross domestic product (GDP) growth to slow to 0.5% that year from an expected 3%. It contributed to a sharp fall in the value of Tunisia’s currency the following year and ongoing economic troubles.

Tunisia agreed a loan programme in 2016 with the International Monetary Fund but it expires in April and the new government, agreed in February after months of wrangling, is now trying to negotiate a replacement.

Jouini’s shop, full of stuffed camels, painted pottery, t-shirts, red fezzes and postcards, is far from the only business facing hard times in Hammamet, where resorts stretch along the sandy beach each side of the pretty walled city and its fort.

While Jouini spoke, other souvenir sellers played football in the street, their shops empty. Nearby, Ramadan Jlassi sat with his horse-drawn carriage, waiting for custom.

He does not earn more than 10 dinars ($3.50) a day and has three sons, he said. “It is hard to buy the basics for my family,” he said.

CANCELLED RESERVATIONS

Tunisia has confirmed 13 cases of the coronavirus, mostly people who have recently arrived from abroad. It has closed schools early for their scheduled spring holiday and stopped some international travel.

Spring bookings at the Hasdrubal hotel, one of the smartest in town, stand at 15%, a quarter of the usual level in March, said general manager Samir Ncir.

“There is stagnation. Many reservations were cancelled,” he said. The hotel is not yet planning to lay off staff though it may delay signing up seasonal workers, hoping that the epidemic will pass and tourists will return in the summer.

“We expect the pattern to return at the end of May and the beginning of June. But we may have to put off signing contracts with casual workers in the summer,” he said.

But for Jouini, who has two children, the outlook is not good. “It will be complicated for me and my family because this is our only income,” he said.

S.Africa's Telkom says job cuts will wipe 1.5 bln rand from 2020 earnings

JOHANNESBURG (Reuters) - South African telecoms firm Telkom SA SOC said on Friday its proposed job cuts of up to 20% of its staff will cost about 1.5 billion rand ($92.50 million), which will have a negative impact on its 2020 financial year (FY) earnings.

In January, Telkom told unions it could cut up to 3,000 of more than 15,000 staff including voluntary redundancies, as part of a two phase restructuring to deal with the decline of its fixed voice and fixed data services because of a migration to mobile data.

In the six-months to Sept.30, earnings before interest, tax, depreciation and amortization (EBITDA) declined 4.3% to 5 billion rand on an IAS 17 accounting basis and headline earnings per share, the main profit measure in South Africa, fell 44%compared to a restated year-ago figure.

“The cash outflow related to the restructuring process is expected in the first half of the new financial year. Available cash resources will be used to fund the restructuring process,” Telkom said in a statement.

“This allows Telkom to remain within the current debt levels.”

Shares in Telkom plunged to a 6-1/2-year low after the announcement. It closed 16.93% weaker at 19.43 rand despite a rebound on the broader market.

Telkom said although the “multi-year transformation programme” has reduced legacy fixed voice revenue contribution to group revenue from 56% in FY 2013 to 22% in FY2019, it has since seen an accelerated decline in fixed voice revenue in the second half of the 2019 financial year relative to the first half.

It said the growth in new revenue streams has not been sufficient to offset the negative impact on group earnings before interest, tax, depreciation and amortization.

Like other African telecoms firms, Telkom, in which the government holds a stake of about 40%, is trying to keep pace with a surge in demand for the internet and data with growing smart phone usage.

Phase one of the job cuts, which is underway, will affect employees at Openserve and the Consumer divisions from January to April.

About 1,585 workers have applied for the voluntary severance packages (VSP) and voluntary early retirement packages (VERP), it said in February in court papers.

($1 = 16.2154 rand)

Shares in South Africa's Sasol jump nearly 30% as oil price recovery sparks buying

JOHANNESBURG (Reuters) - Shares in South African petrochemicals group Sasol surged nearly 30% on Friday as a recovery in oil prices sparked buying of the stock, which was pummelled in the previous session.

Brent crude prices rose over 3% on Friday after falling more than 7% the day before, a drop which helped send Sasol shares to a 21-year low.

“It does look like it was over down around 30 rand. Perhaps some opportunistic buyers are looking to get in at these low prices,” said Nilan Morar, trader at GT247.

By 0808 GMT shares in Sasol were up 20.9% to 45.01 rand after hitting a high of 55.84 rand earlier in the session.

Mauritius central bank pumps in liquidity to support businesses

NAIROBI (Reuters) - The Bank of Mauritius said on Friday it will offer 5 billion rupees ($130 million) in liquidity support to businesses through commercial banks, to cushion firms from the impact of the coronavirus pandemic.

Although the Indian Ocean island economy has not reported any cases of the new coronavirus, policymakers have already started taking aggressive action to support its tourism and financial services-dependent economy, cutting the benchmark lending rates by 50 basis points on Tuesday.

The bank said interest on the loans offered through the new special credit facility will be capped at a fixed rate of 2.5% per year. It also reduced the cash ratio reserve requirements for banks to 8% from 9% to boost lending.

The new lending facility will be made available from March 23 through to the end of July, the central bank said, adding that the funds will go to all sectors affected by the impact of the virus.

It also ordered banks to stop taking capital repayments for existing loans for businesses hit by the impact of the pandemic.

The regulator relaxed certain requirements on credit impairment reporting for banks that came into effect this January, adding that it will offer a two year, Bank of Mauritius savings bond worth 5 billion rupees on March 23.

($1 = 38.1500 Mauritius rupees)

South Africa's Eskom says 4,000 MW power cuts to last until Friday

JOHANNESBURG (Reuters) - South African state power firm Eskom said on Thursday that power cuts of up to 4,000 megawatts (MW) would last until Friday, as it was waiting for regulatory approval to reconnect a unit at nuclear power station Koeberg.

Earlier it had said cuts could last until further notice.

Eskom, which produces more than 90% of the electricity in Africa’s most industrialised economy, ramped up power cuts to 4,000 MW on Tuesday after a fault with a pump at Koeberg, the country’s only nuclear station.

That compounded breakdowns at the company’s coal fleet, which accounts for the bulk of its 44,000 MW nominal capacity.

Eskom has repeatedly implemented nationwide power cuts in the past year that have dented economic growth and hurt business sentiment.

Manufacturing data later on Thursday is expected to reflect the impact of the power outages.

Eskom hopes to bring Koeberg Unit 1 back to service by Sunday, which should reduce the scale of the outages.

Rate cuts: US goes to almost zero and launches huge stimulus programme

The US has cut interest rates to almost zero and launched a $700bn stimulus programme in a bid to protect the economy from the effect of coronavirus.

It is part of a co-ordinated action announced on Sunday in the UK, Japan, eurozone, Canada, and Switzerland.

In a news conference Fed chairman Jerome Powell said the pandemic was having a "profound" impact on the economy.

US President Donald Trump said the emergency action "makes me very happy".

The Fed has cut rates to a target range of 0% to 0.25%, and said it would it begin buying bonds - quantitative easing - a move that pumps money directly into the economy.

The central bank had already cut interest rates by half a percentage point after an emergency meeting on 3 March.

It was the first rate cut outside of a regularly scheduled policy meeting since the financial crisis in 2008.

Stock markets have plunged in recent days amid fears that economic paralysis will wipe out corporate profits and spark a global recession.

But early indications suggest the Fed's move may not shore up financial markets. US stock market futures, which anticipate the direction of shares when trading begins, were almost 4% down.

Speaking after the emergency meeting, which was held in place of the Fed's regular rates setting decision scheduled for this week, Mr Powell warned that although it was clear the outbreak was already having a major impact on the economy it was still too early to tell just how far-reaching the effects will be.

"The economic outlook is evolving on a daily basis and it is depending on the spread of the virus... that is not something that is knowable," he said.

As part of Sunday's announcement, the Fed will work with other central banks to increase the availability of dollars for commercial banks.

These so-called currency swap lines were an important tool in maintaining financial stability after the 2008 banking crisis.

"Today's coordinated action by major central banks will improve global liquidity by lowering the price and extending the maximum term of US dollar lending operations," Bank of England Governor Mark Carney said in a joint statement with Andrew Bailey, who succeeds him as BoE chief on Monday.

The Federal Reserve has now fired most of its remaining big guns to stimulate a US economy facing a serious financial shock from the coronavirus.

Interest rates were slashed by one full percentage point to just above zero, and the bank restarted the pumping of hundreds of billions of dollars into financial markets. Global central banks, including the Bank of England, joined in to ease the flow of dollars around the world.

It was the full crisis toolkit designed to inject confidence into markets that ran riot last week as the outbreak turned into a global pandemic.

While the moves should soothe the financing of US business, they also reflect that the health emergency in the US has become far worse than expected and reveals US authorities are running short of options.

Interest rate cuts are a blunt instrument to deal with a pandemic, and more is expected from Congress and the White House, in particular.

President Trump welcomed the cut, but it was his decision to ban European travel that sparked the latest record share sell off on Thursday.

There is some hope that a video conference call later between leaders of the G7 western industrialised nations, including President Trump and British Prime Minister Boris Johnson, will result in a more coordinated global approach to the virus.

The authorities will be watching markets carefully today, including Mr Bailey, on his first day in the job.

Michael Hewson, chief market analyst at UK-based CMC Markets, described the co-ordinated move as throwing "the kitchen sink at the markets. [It] serves to underscore the seriousness of the economic shocks coming our way".

And in the US, Greg McBridge, chief financial analyst at online bank and mortgage firm Bankrate.com, said: "Desperate times call for desperate measures and the Fed is doing just that in an effort to keep credit markets functioning and prevent the type of starving of credit that nearly toppled the global economy into a depression in 2008.

"Reducing interest rates to borrowers will ease the burden of existing debts slightly but is unlikely to spur the usual surge of borrowing as consumers and businesses batten down the hatches for a coming drop off in US economic activity."--BBC

Coronavirus: Asia stocks fall after global central bank action

Stock markets in Asia have fallen even after central banks around the world announced a coordinated effort to ease the effects of the coronavirus.

The US Federal Reserve cut interest rates to almost zero and launched a $700bn stimulus programme.

It was part of coordinated action announced alongside the eurozone, the UK, Japan, Canada, and Switzerland.

Investors are concerned that central banks now have few options left to combat the impact of the pandemic.

After the emergency announcements US stock futures indicated a sharply lower open for Wall Street later.

In Asian morning trade, Japan's benchmark Nikkei 225 was down by 0.2%, Hong Kong's Hang Seng was 2.2% lower, and the Shanghai Composite in China lost 0.5%.

Crude oil prices and the US dollar have also fallen on global markets.

The falls on share markets come as investors worry that the world's biggest central banks may now have very little ammunition left to deal with the effects of the coronavirus if the global economic climate continues to worsen.

"They pulled out whatever weapons they had and my sense is I think it may help initially but I don't think it goes much further because this is still a developing issue. They used up basically all their ammunition and we're down to sticks and stones," said Robert Pavlik, chief investment strategist at Slatestone Wealth.

Earlier the US Federal Reserve cut its interest rates by 100 basis points to a target range of 0% to 0.25% and said it would offer at least $700bn for support to the markets in the coming weeks.

Speaking after the announcement Fed chairman Jerome Powell said "The virus is having a profound effect."

Alongside the Fed, five other central banks - the Bank of England, the European Central Bank, the Bank of Japan, the Bank of Canada, and the Swiss National Bank - also announced measures to make it easier to provide dollars to their financial institutions facing stress in credit markets.

The move was designed to bring down the price banks and companies pay for US dollars, which has surged in recent weeks.

New Zealand's central bank also lowered interest rates by 75 basis points as it prepared for a "significant" hit to the economy.

The Reserve Bank of New Zealand Governor Adrian Orr said the virus was expected to have a severe impact on the economy over the coming year.--BBC

Coronavirus: Louis Vuitton owner to start making hand sanitiser

Louis Vuitton owner LVMH will use its perfume production lines to start making hand santiser to protect people against the coronavirus outbreak.

The luxury goods maker says it wants to help tackle a nationwide shortage of the anti-viral products across France.

"These gels will be delivered free of charge to the health authorities," LVMH announced on Sunday.

France has now seen 120 deaths from the coronavirus as the pandemic spreads.

"LVMH will use the production lines of its perfume and cosmetic brands... to produce large quantities of hydroalcoholic gels from Monday," LVMH said in a statement.

The factories normally produce perfume and makeup for luxury brands like Christian Dior and Givenchy.

The French luxury conglomerate also owns well-known brands such as champagne maker Moet & Chandon, watchmaker Tag Heuer and jeweller Bulgari.

"LVMH will continue to honour this commitment for as long as necessary, in connection with the French health authorities," the company said.

France has closed its restaurants, cafes and non-essential stores in an effort to combat the virus, which has infected an estimated 162,687 people and killed more than 6,000.

Governments across the world have called on manufacturers to help make products that are running low during the virus outbreak.

UK Prime Minister Boris Johnson is due to ask UK engineering firms on Monday to shift production to build ventilators for the NHS.

In China, at the peak of its coronavirus outbreak in February, electronics giant Foxconn switched some of its production from Apple iPhones to make surgical masks.--BBC

Bill Gates steps down from Microsoft board to focus on philanthropy

Microsoft co-founder Bill Gates is stepping down from the company's board to spend more time on philanthropic activities.

He says he wants to focus on global health and development, education and tackling climate change.

One of the world's richest men, Mr Gates, 65, has also left the board of Warren Buffett's massive holding company, Berkshire Hathaway.

Mr Gates stepped down from his day-to-day role running Microsoft in 2008.

Announcing his latest move, Mr Gates said the company would "always be an important part of my life's work" and he would continue to be engaged with its leadership.

But he said: "I am looking forward to this next phase as an opportunity to maintain the friendships and partnerships that have meant the most to me, continue to contribute to two companies of which I am incredibly proud, and effectively prioritise my commitment to addressing some of the world's toughest challenges."

Mr Gates is listed by Forbes as the world's second richest man after Amazon founder Jeff Bezos, and is worth $103.6bn (£84.4bn).

He made his fortune developing software for the personal computer.

As a young man, he dropped out of college and moved to Albuquerque, in New Mexico, where he set up Microsoft with his childhood friend, Paul Allen, who died in 2018.

Their big break came in 1980 when Microsoft signed an agreement with IBM to build the operating system that became known as MS-DOS.

Microsoft went public in 1986 and within a year Bill Gates, at 31, had become the youngest self-made billionaire.

Mr Gates has served on Berkshire's board since 2004 but devotes much of his time to the charitable organisation he set up with his wife, the Bill & Melinda Gates Foundation.

The couple were named the most generous philanthropists in the US in 2018 by the The Chronicle of Philanthropy, after giving $4.8bn to their foundation the previous year.BBC

Coronavirus: Europe ramps up support for ailing firms

European authorities are increasing efforts to try to stave off the economic effects of coronavirus.

The European Union (EU) will put a package of measures in place including a €37bn euro (£33bn) investment initiative.

And German finance minister Olaf Scholz said his country could part nationalise firms to tackle the crisis.

Norway suspended some airline taxes as global aviation body IATA said carriers could fold over the next few months.

Markets have become increasingly volatile as the impact of the spread of the coronavirus becomes more pronounced. Global stocks soared on Friday, after record falls on Thursday.

Concerns over the economic effects of the pandemic led to a number of actions by European authorities on Friday.

Bloc response

European Commission President Ursula von der Leyen said the EU response package will include giving member states flexibility on budget deficits and state aid.

The EU will also guarantee €8bn in loans to 100,000 firms to support the corporate sector, she said.

"I am convinced that the European Union can withstand this shock," she said. "But each member state needs to live up to its full responsibility and the European Union as a whole needs to be determined, coordinated and united."

Ms von de Leyen added that the Commission wanted to ensure "necessary supplies to our health systems" and to support people's incomes and jobs.

Meanwhile, German finance minister Olaf Scholz said Germany would give tax relief and deferrals to firms which would take billions from the state treasury, and could take bail out ailing firms by taking stakes in them.

"The German government... all agreed together that we will use all means to ensure we can tackle this crisis," Mr Scholz said.

"We will every available tool at our disposal to get through these difficult times with all our economic possibilities and to make sure we come out of this situation in good shape."

Ailing airlines

Airlines have been hit by a slump in demand caused by the coronavirus pandemic, with thousands of flight cancellations as the virus spread.

On Thursday, Norwegian Air said it would suspend half of its staff and cancel 4,000 flights because of the outbreak, with the situation exacerbated by sweeping travel restrictions between the US and Europe.

On Friday, Norway's government suspended some fees and taxes levied on airlines and said it is in talks with the country's aviation industry on further measures to help alleviate the situation, finance minister Jan Tore Sanner said.

"We are well informed of the wishes of the airline industries... I don't want to speculate on what measures could be implemented," said finance minister Jan Sanner said.

The chief executive of the International Air Transport Association, Alexandre de Juniac, said more airlines could collapse if the coronavirus crisis last more than another two to three months.

Mr de Juniac said on Friday that global revenue losses would be "probably above" $113bn that it estimated a week ago, before the Trump administration's announcement of US travel curbs on passengers from much of continental Europe.

US response

Meanwhile, US Treasury Secretary Steven Mnuchin said he expected the US economic hit from the coronavirus outbreak to be short-term, and that the Trump administration was keeping its options open for any other future steps that may be needed.

Mr Mnuchin said the US Treasury and the Federal Reserve were working to keep markets open and to provide "unlimited liquidity."

He also said negotiations with Democrats over an economic relief package were also going well. "We're going to look at every tool in the toolbox," he said.--BBC

Sasol considers rights issue, further asset sales after share plunge

JOHANNESBURG (Reuters) - South African petrochemicals group Sasol said on Thursday it would consider an equity issue and expand asset disposals in excess of the current target amid concerns around its debt after a crash in the oil price wiped 79 billion Rand ($4.8 billion) off the market value.

Sasol shares hit a 21-year low on Thursday - falling 42% by 1400 GMT and bringing losses this week to 80% - as oil prices plunged.[O/R]

INVESTORS DIARY 2020

Company

Event

Venue

Date & Time

Companies under Cautionary

Bindura Nickel Corporation

Padenga Holdings

Delta Corporation

Meikles Limited

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

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