Major International Business Headlines Brief::: 19 March 2020

Thu Mar 19 02:12:09 CAT 2020

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Major International Business Headlines Brief::: 19 March 2020

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ü  Kenya's horticulture exports drop 7% in 2019 to 142.72 bln shillings

ü  Nigeria to lower gasoline pump prices to 130 naira -sources

ü  South African Airways cancels 162 flights due to coronavirus

ü  Kenyan banks to offer relief to distressed borrowers -central bank

ü  Sasol considers $2 bln rights issue to help steady balance sheet

ü  Nigeria to delay non-critical spending, defer Eurobond sale -finmin

ü  South Africa's retail sales up 1.2% year on year in January

ü  Adcock Ingram buys Plush Professional in push into homecare market

ü  New York Stock Exchange closes trading floor

ü  US home repossessions suspended amid crisis

ü  Pound plunges to its lowest level in over 30 years

ü  BMW, Honda and Toyota suspend UK car production

ü  Online shopping website Ocado suspends service

ü  Amazon blocks non-essential items from warehouses

 <mailto:info at bulls.co.zw> 

Kenya's horticulture exports drop 7% in 2019 to 142.72 bln shillings

NAIROBI (Reuters) - Kenya’s earnings from horticulture exports fell 7% in 2019 to 142.72 billion shillings ($1.37 billion), mainly due to lower prices of flowers at the auction in the Netherlands, the agriculture regulator said on Wednesday.

Horticulture, including select fruits and vegetables, are one the East African nation’s to hard currency earners, along with tea exports, tourism and cash sent by its citizens abroad.

($1 = 104.1000 Kenyan shillings)

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Nigeria to lower gasoline pump prices to 130 naira -sources

ABUJA (Reuters) - Nigeria will lower government-capped gasoline pump prices to 130 naira a litre, from 145 naira, four sources told Reuters on Wednesday.

State oil company NNPC imports nearly all the gasoline in Nigeria, Africa’s largest economy, because of price caps that mean marketers would lose money if they imported themselves.

President Muhammadu Buhari approved the lower price during a cabinet meeting. The government did not immediately give a reason for the decision, though benchmark crude prices have tumbled in the face of the coronavirus pandemic.

Prices for fuels such as gasoline have also collapsed because of a significant contraction in global demand.

The price cap typically costs the government millions because prices fluctuate regularly on the international market and rarely stay at the capped level.

The World Bank estimated the price caps cost the government 294 billion naira ($960.8 million), or nearly 0.2% of annual GDP, in the first half of 2019.

Nigeria’s Petroleum Products Pricing Regulatory Agency (PPPRA) pegged ex-depot prices at 125.63 naira a litre as of March 13.

($1 = 306.0000 naira)

South African Airways cancels 162 flights due to coronavirus

JOHANNESBURG (Reuters) - South African Airways (SAA) said on Wednesday that it had cancelled 162 international and regional flights until the end of this month due to low demand and restrictions linked to the coronavirus.

SAA is under a form of bankruptcy protection and battling for its survival. President Cyril Ramaphosa on Sunday announced travel bans affecting several countries where SAA flies, including the United States, Britain and Germany.

Kenyan banks to offer relief to distressed borrowers -central bank

NAIROBI (Reuters) - Kenyan banks will allow personal borrowers who get into difficulties due to the new coronavirus pandemic to extend their loans for up to a year, the central bank governor said on Wednesday.

The East African nation has four confirmed cases of the COVID-19 and the government has imposed measures aimed at reducing its spreads including banning public gatherings and closing schools indefinitely.

“We don’t want this health crisis to become a financial crisis,” Patrick Njoroge, the governor, told a televised news conference.

Small and medium enterprises who encounter difficulties will also be allowed to restructure their bank loans at no cost, he added.

Sasol considers $2 bln rights issue to help steady balance sheet

JOHANNESBURG (Reuters) - South Africa’s Sasol said it would consider a rights issue of up to $2 billion as it works to ensure it can pay its debt after an oil price slide and fears over the coronavirus outbreak sent its shares to a 21-year low.

The world’s top manufacturer of motor fuel from coal, which is battling high debt, the impact of the coronaries outbreak and falls in oil and chemical prices, said on Tuesday it aimed to generate $6 billion as it seeks to stabilise its balance sheet.

Sasol said was also in talks with its lenders to make sure it has “adequate flexibility” on its debt covenants.

The company said it had liquidity of around $2.5 billion with no significant debt maturities before May 2021 and believed it could withstand recent market volatility in the short term.

Sasol shares hit a 21-year low last week after the fall in oil prices, raising concerns about its debt levels and forcing it to implement a plan to strengthen its balance sheet.

On Tuesday, Sasol said it had already entered into a stand-by underwriting agreement with BofA Securities, Citigroup and J.P. Morgan Securities for the plan to selling up to $2 billion additional shares to strengthen its balance sheet.

The rights issue is expected to be executed after its 2020 results, depending on the progress Sasol makes in improving its balance sheet.

“The immediate focus is on the actions to stabilise the company and protect the balance sheet so that the underlying value of the portfolio is not compromised, and instead the potential realised in the interests of all Sasol’s stakeholders,” Sasol said in a statement.

Sasol said it would also immediately target measures to deliver a cash improvement of approximately $1 billion by the end of June, look at selling assets above its original target of $2 billion and seek a potential partner at its U.S. Base Chemicals assets, which includes its troubled Louisiana project.

Investors have been concerned by the company’s debt, largely due to delays and cost overruns at its Lake Charles Chemicals project (LCCP) in Louisiana.

The project converts natural gas into plastics ingredient ethylene, and the overruns are expected to reach as much as $12.8 billion, up from a 2014 forecast of $8.9 billion.

Sasol said it will review its global cost competitiveness and business structure in an effort to ensure profitability in a sustained low oil price environment

But it was confident it could comply with covenant thresholds in its debt agreements at June, 30 2020 assuming a prevailing oil price of around 580 rand ($35) per barrel.

“I remain concerned about the timing of initiatives particularly since management did not disclose whether it was able to extend covenant headroom from its lenders for its December 2020 reporting period. Without the extension, Sasol may not have sufficient time to realise optimal value within its asset disposal program and would then be cornered into a rights issue,” said Avior’s diversified resources analyst Wade Napier.

Shares in the petrochemicals group rose 15% after the announcement, but then reversed the gains and were down 17.64% at 37.33 rand by 1137 GMT.

Sasol said it will hold a conference call on the measures to improve its balance sheet at 1300 GMT on Tuesday.

($1 = 16.5941 rand)

Nigeria to delay non-critical spending, defer Eurobond sale -finmin

ABUJA (Reuters) - Nigeria will postpone all non-critical government spending and wait for better market conditions for a planned $3.3 billion eurobond offering due to the turmoil caused by the coronavirus pandemic, the finance minister said on Monday.

Minister Zainab Ahmed told journalists in Abuja that Africa’s largest economy will prioritize “major capital expenditures.”

“Any expenditures that are not critical we must defer to do it at a later time when things become more normal,” she said.

An oil price crash caused by the toxic mix of a coronavirus-induced slump in demand and the collapse of a supply-cutting deal between OPEC and other oil producers such as Russia, has forced Nigeria to revise its budget and alter its spending plans.

The 10.59 trillion naira ($34.6 billion) budget included a benchmark of oil prices at $57 per barrel. On Monday, Brent crude slumped to roughly $30 per barrel.

Ahmed also said the virus-induced market turmoil would impact external borrowing, including for the eurobond it planned to issue to partly fund its 2020 budget deficit.

“We are not going out immediately because the market indication is not in favour of external borrowing at this time. Even if we get the approvals we will defer it and watch the market and go out only when the timing is right.”

Borrowing costs for many riskier emerging markets have risen sharply in recent days, with all of Nigeria’s dollar-bonds now yielding between 12%-14% compared with yields of less than 3% on shorter-dated issues in mid-February.

Last month, the Debt Management Office said it expected to appoint advisers for the eurobond issue through an open competitive bid process and expected to complete an approval process for the sale swiftly.

($1 = 306.0000 naira)

South Africa's retail sales up 1.2% year on year in January

JOHANNESBURG (Reuters) - South African retail sales rose 1.2% year on year in January following a revised decline of 0.5% in December, Statistics South Africa said on Wednesday.

On a month-on-month basis sales were up 0.9%. They rose 1.0% in the three months to the end of January compared with the same period last year, the statistics body said.

Adcock Ingram buys Plush Professional in push into homecare market

JOHANNESBURG (Reuters) - South African drugmaker Adcock Ingram said on Wednesday it had bought homecare products company Plush Professional Leather Care as part of plans to diversify into less regulated products.

Adcock gave no financial details of the acquisition.

Plush offers an extensive range of homecare, cleaning and leather care products. Its products are sold through most major retailers in South Africa and selected Southern African countries.

Adcock, which makes Panado pain tablets and Bioplus energy supplements, said historically the business generates revenue in excess of 200 million rand ($11.85 million) per year.

“The Plush acquisition is firmly in line with Adcock Ingram’s strategy of diversifying into less regulated product classes in the consumer sector,” it said in a statement.

“It will enable the establishment of a homecare business within Adcock Ingram that already has critical mass, allowing us to compete in this category in the southern African market.”

As part of the transaction, Plush’s existing senior management team will remain involved with the company for minimum periods of between 12 and 18 months in order to facilitate an orderly transition of the business into the Adcock Ingram group, it added.

($1 = 16.8825 rand)

New York Stock Exchange closes trading floor

The trading floor of the New York Stock Exchange (NYSE) is set to shut in the latest coronavirus-related closure.

The Intercontinental Exchange, which operates the NYSE, said all buying and selling of shares will happen electronically from 23 March. Much of the trading is already electronic.

It comes after some staff had tested positive for the virus.

US Treasury Secretary Steve Mnuchin has suggested Wall Street could limit trading hours due to the pandemic.

Mr Mnuchin's proposal followed weeks of market turmoil, with wild swings in share prices dragging indexes down roughly 30% from their recent highs.

However, New York Stock Exchange President Stacey Cunningham said markets do not need to close.

"While we are taking the precautionary step of closing the trading floors, we continue to firmly believe the markets should remain open and accessible to investors," she said.

"All NYSE markets will continue to operate under normal trading hours despite the closure of the trading floors."

Pound plunges to its lowest level in over 30 years

US home repossessions suspended amid crisis

Ms Cunningham had previously defended the decision to keep the floor open, telling broadcaster CNBC that having people execute and manage trades helped to reduce volatility.

However, in recent days New York has ordered gathering places such as gyms, bowling alleys, theatres, bars and restaurants to shut. It has also closed schools and banned gatherings of more than 50 people.

On Wednesday, Governor Andrew Cuomo mandated no more than 50% of staff report to work at non-essential businesses.

When the New York Stock Exchange has shut its doors on previous occasions, such as after the September 11 2001 attacks, that has closed markets.

But today, only about 18% of buying and selling happens via the the trading floor, which is a mix of brokers with clients and representatives from major companies.

CME Group, which operates other exchanges, announced last week that it was shutting its in-person trading floor. At the time, it said no cases had been reported. Cboe Global Markets made a similar move.

'Never a matter of if but when'

By Samira Hussain

It is not surprising the floor of the New York Stock Exchange is closing. It was never a matter of "if" but "when."

Most of the work done by traders can be done electronically.

But keeping the floor open had symbolic value, suggesting that despite what turmoil may be unfolding elsewhere, America's economy was still open for business.

However, the NYSE also had to contend with the reality on the ground. New York City is contemplating a "shelter in place" for all residents and there are hundreds of people moving on and off the floor every day.

If the idea is to try and contain the virus, keeping the floor open was quickly becoming unrealistic.--BBC

US home repossessions suspended amid crisis

President Donald Trump has said the US government's housing agency will stop repossessing homes until the end of April amid the coronavirus emergency.

Evictions will be suspended over the same time frame in a moratorium protecting eight million mortgages.

Mr Trump also invoked a Korean War-era defence act in case the government needs to ramp up production of vital medical supplies.

The US has nearly 8,000 cases of Covid-19 and has seen 138 deaths so far.

Repossessions (foreclosures) and evictions will be suspended for at least 60 days, said the Federal Housing Finance Agency.

The moratorium covers single-family mortgages backed by state-sponsored US mortgage giants Fannie Mae and Freddie Mac.

Should you let your children play with others?

Property analysts say the move is designed to avoid a repeat of the foreclosure glut seen during the 2008 financial crisis.

In the US coronavirus task force's update on Wednesday, Mr Trump said the Federal Emergency Management Agency, which often has a starring role in disaster movies, had been activated at its highest level across the country.

The president said two US Navy hospitals ships would be pressed into service to help alleviate an expected shortage of sick beds.

The USNS Comfort is expected to be sent to New York Harbor, though defence officials said it is currently undergoing maintenance in Virginia.

The other vessel, USNS Mercy, is being prepared to deploy to a location on the West Coast.

Mr Trump also announced the US is working on a self-swab coronavirus test to expand diagnostic capacity.

He has directed the US government's drug agency to reduce regulatory barriers for testing.

Dr Deborah Birx, co-ordinator for the US coronavirus response, said the caseload would soon soar as laboratories begin running "tens of thousands of tests per day".

"To every American out there, it will be five to six days worth of tests being run in 24 to 48 hours," she said. "So our curves will not be stable until sometime next week."

The White House is asking Americans to postpone any non-essential health or dental procedures to help relieve pressure on the US health system and avoid spreading the virus.

Covid-19's spread across the US has caused many hotels, restaurants, bars, venues and other businesses to shutter.

In his remarks on Wednesday, the president rejected Treasury Secretary Steve Mnuchin's warning to Republican senators that US unemployment could rocket to 20% because of the pandemic.

Mr Trump said that was only the "absolute, total worst case scenario".

The US Senate on Wednesday passed legislation 90-8 to provide free coronavirus testing, paid sick leave and expanded safety-net spending for Americans.

It is estimated the sick leave and family leave provisions of the bill alone will cost $105bn (£90bn).

Congress and the White House are discussing additional stimulus measures that could cost more than $1tn.--BBC

Pound plunges to its lowest level in over 30 years

The pound has fallen to its lowest level against the dollar since 1985, as the spread of the coronavirus pandemic spooks investors.

It is currently trading at $1.15, a fall of almost 5% in just one day.

It comes as financial markets tumbled again after major stimulus plans failed to quell fears about the economic impact of the virus.

The Dow ended down 6.3%, while the S&P 500 fell 5.1% and the Nasdaq dropped 4.7%.

Earlier the Dow and S&P 500 had plunged more than 7%, triggering an automatic temporary halt to trade, but shares recovered some ground as Congress appeared set to approve a relief bill.

The pound's weakness could partly stem from questions over how the UK government plans to pay for the emergency economic measures it has introduced, says Neil Wilson, chief analyst for Markets.com.

"This is the worst sustained period of sterling selling that I can recall," he says. "The government's massive fiscal package undoubtedly means more borrowing for the UK economy - how do we pay for all this?"

Meanwhile, the FTSE 100 index of top UK firms closed down 4%, with aerospace and travel firms among the hardest hit.

'Economic fight'

UK Chancellor Rishi Sunak revealed a £350bn stimulus package for UK firms on Tuesday, including £330bn of business loan guarantees.

It included aid to cover a business rates holiday and grants for retailers and pubs, while help for airlines is also being considered.

Despite this, investors are still flocking to the comparatively safer dollar, says Ranko Berich, head of Market Analysis at Monex Europe.

"The UK's response to the incoming coronavirus shock has been about as aggressive as possible in terms of monetary and fiscal policy, but this has done nothing to help sterling.

"Idiosyncratic factors such as the UK's monetary and fiscal response or Brexit are beside the point: this is about the US dollar, which is proving unstoppable as global financial markets stare into the abyss of crisis-like conditions," he said.

Investors say rescue measures can only blunt the pain, as countries close borders and order mass closures, bringing most economic activity to a halt.

The US on Tuesday outlined a $1tn (£830bn) proposal to support the world's biggest economy, which is expected to include direct payments to families, small business assistance and bailouts for airlines and other industries.

US plans to pay Americans as part of $1tn stimulus

Chancellor unveils £350bn lifeline for economy

In the US, large companies have already announced more than 3,600 job cuts or furloughs, according to research firm Challenger, Gray & Christmas. The firm said some nine million other jobs at local bars and restaurants could also be at risk.

Car factories in the UK and elsewhere have halted production, while the slowdown has pushed other firms such as Laura Ashley and Flybe into administration.

Concerns about the damage have spurred a widespread sell-off. France's CAC 40 fell more than 6% while Germany's Dax dropped more than 5%.

Oil prices also plunged to levels not seen since the early 2000s, as demand contracts sharply, but exporters boost supply. The declines have even hit gold and government debt, which are typically considered less risky assets.

Asian markets have fared better than the US and Europe in recent days, but were also lower. Japan's benchmark Nikkei 225 ended Wednesday 1.7% lower, the Hang Seng in Hong Kong fell by 3.3%, and China's Shanghai Composite lost 1.8%.

Sterling's fall to a 35-year low against the dollar is clearly troubling.

It is down 12% since the beginning of last week, and 5% today alone. This is partly down to the strengthening dollar, due to its status as a "safe haven," the inevitable result of global volatility in financial markets amid the Coronavirus pandemic.

But those aren't the only reasons for sterling's weakness. The pound has sunk to to just over €1.06 against the euro- its lowest level since the depth of the financial crisis 11 years ago.

The pound is likely to be at a record low on measures of its global value, to be calculated tomorrow.

At the same time, UK government borrowing costs are creeping up, with the presumption these would stay "lower for longer" now being tested in global debt markets.

Traders have raised a range of reasons for why the UK is being particularly singled out for attention.

There is growing expectation of ever bigger fiscal injections to combat the economic impact of the pandemic and the UK is still very dependent on foreign flows of capital.

Its strategy for dealing with the pandemic was seen, say traders, as an outlier amongst the world's major economies.

Then there is Brexit. The UK has the extra economic challenge of dealing with a fundamental change to trading arrangements with the EU, perhaps on WTO tariffs, in the middle of this pandemic.

It is a very rough market out there, with some markets a little dysfunctional as traders are isolated away from their trading floors. But the UK is being singled out for especially tough treatment.--BBC

BMW, Honda and Toyota suspend UK car production

The UK car industry is slowly grinding to a halt after BMW, Toyota and Honda said they would temporarily shut down their UK factories because of the coronavirus pandemic.

Nissan and Vauxhall have already closed plants amid falling sales and a lack of parts caused by the epidemic.

Jaguar Land Rover is expected to halt production in the coming days.

In North America, Ford and General Motors are among the firms also shutting factories due to the virus.

BMW has about 8,000 staff in the UK. It operates a Mini factory near Oxford, as well as plants in Swindon and Hams Hall and makes Rolls Royce cars at Goodwood.

The car giant said in a statement: "Due to the rapidly evolving coronavirus pandemic we have taken the difficult decision to cease production at our production sites at Oxford and Swindon as of Monday next week [23 March] for a period of four weeks until 17 April.

"The plans for Hams Hall are under development and a subsequent announcement will be made."

It said its factory workers would be paid during the four week period, but would be expected to take the time off either as holiday, accrued overtime, or as "negative overtime" which they will "pay back" at a later date.

Meanwhile, Ford and General Motors have said they will close their plants in the US, Canada and Mexico until the end of the month, as they clean surfaces and adjust procedures to reduce the risk of spreading the virus.

The move comes after one of Ford's employees in Michigan tested positive for the disease.

Toyota plans

Toyota said it was suspending production at its European plants, including its factory at Burnaston in Derbyshire and its engine facility in Deeside, from tomorrow until further notice.

The two plants, which employ about 3,000 people, will be put on paid leave for at least two weeks.

In North America, the firm is closing its manufacturing facilities from 23-24 March, with plans to re-open on 25 March.

"This action is being taken to help ensure the health and safety of our employees, and due to an anticipated decline in market demand related to the economic impact of the COVID-19 pandemic," the firm said. "As the impact of the situation evolves, we will continue to evaluate conditions."

Honda meanwhile said production will be suspended from Thursday until at least 6 April. Its main UK plant in Swindon, which has about 3,000 employees, is due to close in 2021.

The firms join a raft of car manufacturers temporarily shutting down or scaling back European production, including:

·         Ferrari

·         Fiat Chrysler

·         Ford

·         French carmaker PSA, which owns the Peugeot, Opel and Vauxhall brands

·         TPSA, a joint venture owned by PSA and Toyota

·         Renault

·         Volkswagen

·         Daimler, the owner of the Mercedes-Benz brand.

·         Nissan

·         Sweden's Volvo Cars, owned by China's Geely.

All are struggling to get the parts they need due to travel restrictions across the continent, as well as facing a drop-off in sales as people limit all but essential social contact.

It comes as the car industry is already facing a slowdown linked to Brexit and tougher emissions rules.

Business as usual is simply no longer an option for the European car industry. Car factories need a steady supply of parts, delivered where they're needed, when they're needed. But the upheaval across the continent caused by the Covid-19 outbreak is disrupting those crucial supply chains.

At the same time, car sales have been badly hit. If people can't leave their homes, they can't buy cars - even if the dealerships remain open. That's already had a major impact in Italy, Spain and France. It affects the UK too - because many of the cars made here are exported to Europe.

The question now is what happens next. The industry was already under huge cost pressure - spending huge sums on developing zero or low emissions vehicles in order to meet extremely stringent new emissions rules, and avoid potentially huge fines.

And for manufacturers in the UK, life after Brexit still holds major uncertainties.

A stoppage like this was the last thing the industry needed. It can weather short term disruption but the problem is, no one knows how long the disruption will last.

JLR next?

Jaguar Land Rover (JLR) said in a statement that it planned to continue production in the UK until at least the end of this week, if parts supplies are still available.

It added: "We will continue to closely monitor and review the situation as it evolves."

A spokesman for the firm said the health of its workforce was its "primary concern".

The BBC has approached Honda for a comment on its plans.—BBC

Online shopping website Ocado suspends service

Online shopping delivery service Ocado has suspended its online food delivery service, blaming higher demand than it can meet.

Ocado said existing customers with orders would still receive them.

Meanwhile, supermarkets have introduced strict limits on how many goods people can buy to try to curb stockpiling as the coronavirus pandemic escalates.

Tesco, Sainsbury's and Asda will now stop shoppers buying more than three of any particular food item.

Sainsbury's has also said it will prioritise vulnerable and elderly people for online deliveries.

Ocado said it was experiencing "a simply staggering amount of traffic" to its website and more demand for products and deliveries than it could meet.

"This temporary closure will allow us to complete essential work that will help to make sure distribution of products and delivery slots is as fair and accessible as possible for all our loyal customers," it added.

Asda and Sainsbury's buying restrictions will also apply to cleaning and toiletry products, while Tesco's limits will apply to all products.

"If you could help us by limiting demand of essential items and allowing us to focus on the core needs of our customers - we are confident that we can continue to feed the nation," said Tesco.

Asda said it had seen "a heightened demand" for products both in stores and online.

"We have plenty of products to go around, but we have a responsibility to do the right thing for our communities to help our customers look after their loved ones in a time of need," it added.

Asda told the BBC that cashiers and customers using self-checkout would not be able to scan more than three of the same restricted items. Sainsbury's said it was updating its tills to reflect the limits.

Aldi has already introduced limits of four items per shopper on all products, while Morrisons has said it will expand its online delivery service.

Other retailers including Tesco and Boots have set limits on particularly popular products such as pasta, tissues and hand sanitiser.

Boots chief executive Sebastian James said the issue was not supply, but demand.

"No supply chain can survive a sudden, unexpected global ten-fold increase in demand. And what we thought was incredibly important was that as many people as possible could get what they actually needed," he told the BBC's Today programme.

Supermarkets' online delivery services have also been overwhelmed by the surge in demand. Before Ocado suspended its whole service it had taken down its app due to the spike in orders.

Others meanwhile vented their frustration on Twitter at being one of thousands in a virtual queue to place a food order.

Other businesses have also announced new measures to combat the coronavirus pandemic, including:

Supermarket chain Sainsbury's already had a two-item limit on its most popular goods, including toilet paper, soap and long-life milk. From 23 March, it said disabled customers and those over 70 will be given priority for online delivery slots.

And on 19 March the first hour of shopping will be dedicated to older and vulnerable people in its 600 UK stores.

The chain follows other supermarkets in introducing reserved time slots for the elderly. They include Iceland outlets across the country and all 39 Lidl stores in Northern Ireland.

Sainsbury's told the BBC that it would consider future dedicated shopping hours "in line with government guidance", after the one-off on Thursday.

Sainsbury's chief executive Mike Coupe added it was "focusing all of our efforts on getting as much food and other essential items from our suppliers, into our warehouses and onto shelves as we possibly can.

"We still have enough food for everyone - if we all just buy what we need for us and our families."

Mr Coupe confirmed that it was closing its cafes as well as its fish, pizza and meat counters to free up more staff to work on "keeping the shelves as well stocked as possible."

Asda will also temporarily shut down its "non-essential" services including its rotisserie and pizza counters to free up its workers and space in its warehouses.

The announcements came as Transport Secretary Grant Shapps signed off a temporary relaxation of drivers' hours rules to deliver goods to stores around the UK.

A Department for Transport statement said the rule change applies only to drivers supplying food and "essential products to supermarkets".

Sainsbury's competitor Morrisons said on Tuesday it is creating 3,500 jobs to meet surging demand for its home delivery service caused by the pandemic.

The chain said it would be recruiting 2,500 pickers and drivers and hiring about 1,000 people to work in distribution centres.

In its preliminary results for the week ending 2 February, its chief executive David Potts said retailers were "facing unprecedented challenges" when dealing with Covid-19.

Despite the increased uncertainty, it said it had seen sales increase in recent weeks due to customers stockpiling.--BBC

Amazon blocks non-essential items from warehouses

Amazon is temporarily refusing to stock certain items in its warehouses, to cope with overwhelming demand for household essentials due to the coronavirus pandemic.

It means third-party sellers of non-essential items could find it difficult to ship orders to customers.

The move will last until 5 April and cover warehouses in the US and Europe.

Some items – including many brands of toilet paper – remain out of stock on Amazon’s UK website.

The decision to restrict warehouse stocks to household essentials and medical supplies has been met with dismay by some sellers of other products.

“My sales just doubled and Amazon halted all my shipments,” said one in a post on discussion site Reddit.

“This is absolutely crazy,” wrote another – though they added they had been “prepared” for disruption.

Third-party sellers can still list and sell items on Amazon but they would have to carry out packing and shipping of the products themselves.

Amazon told the BBC: "We are temporarily prioritising household staples, medical supplies, and other high-demand products coming into our fulfilment centres so we can more quickly receive, restock, and deliver these products to customers. We understand this is a change for our selling partners and appreciate their understanding."

Amazon was "doing the right thing", one US-based seller told the BBC.

"Small businesses will hurt because of it and some will completely go bankrupt if the supply chain disruption goes beyond a month," said Samantha Morrison, who sells a range of electrical and computer-related goods via Amazon.

She said it was nonetheless important that Amazon remained able to provide essential items to people in a time of need.

Ms Morrison added that she thought her own business would be minimally impacted as she had enough stock to "weather the storm".

Andrew Helgeson, a seller based in Lincoln, said he had "no idea" how many fewer orders he would be able to ship because he has been relying on Amazon's services for eight years.

Mr Helgeson sells items including DVDs and Blu-ray discs and said he would have to switch to packaging the products individually himself at home.

"We will get around it, always do, you have to be able to adapt," he told the BBC.

He added that he had already applied for a three-month mortgage holiday from his bank and would be seeking other government help.--BBC

INVESTORS DIARY 2020

Company

Event

Venue

Date & Time

Companies under Cautionary

Bindura Nickel Corporation

Padenga Holdings

Delta Corporation

Meikles Limited

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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=AFQjCNH8LYgdY55h-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%2FBullsBearsZimbabwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA> www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 

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