Major International Business Headlines Brief::: 26 March 2020

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Major International Business Headlines Brief::: 26 March 2020

 


 

 


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ü  IMF says coronavirus to hit sub-Saharan Africa's growth hard

ü  Afreximbank creates $3 bln pandemic credit facility for Africa

ü  South Africa to continue processing platinum metals during lockdown

ü  Taking QE route, S.Africa's central bank starts buying bonds

ü  Air Namibia suspends all flights until 20 April

ü  Botswana hikes power tariffs by 22% to help loss-making utility

ü  South Africa's Eskom says coal stocks healthy ahead of lockdown

ü  South African Airways to suspend all domestic flights as lockdown looms

ü  MTN Uganda eliminates mobile money charges amid coronavirus outbreak

ü  South Africa's largest refinery to minimise maintenance over coronavirus
shutdown

ü  US markets close higher after emergency virus deal

ü  Banks under fire for coronavirus loan tactics

ü  Coronavirus: What’s behind the great toilet roll grab?

ü  Coronavirus: Construction firms split as shutdown calls grow

ü  Facebook group calls soar 1,000% during Italy's lockdown

 


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IMF says coronavirus to hit sub-Saharan Africa's growth hard

WASHINGTON (Reuters) - The spread of the coronavirus into sub-Saharan Africa
will hit the region’s economic growth hard, with direct disruptions to
people’s livelihoods, tighter financial conditions, reduced trade and
investment and a steep drop in commodity prices, the International Monetary
Fund said on Wednesday.

 

In a blog posting on the IMF’s website, top officials in the Fund’s Africa
Department said they have received requests for emergency financing from
over 20 nations in the region and expect at least 10 more soon.

 

On Tuesday, the Fund announced that Ghana had requested a rapid-disbursing
emergency loan to fight the coronavirus pandemic.

 

IMF Managing Director Kristalina Georgieva on Monday said some 80 countries
had requested loans from emergency facilities, under which some $50 billion
is available, with at least 20 more requests expected.

 

“Across the region, growth will be hit hard. Precisely how hard is still
difficult to say. But it is clear that our growth forecast in April’s
regional outlook will be significantly lower,” Abebe Aemro Selassie,
director of the IMF Africa Department, and Karen Ongley, mission chief for
Sierra Leone, wrote in the blog posting.

 

During the global financial crisis more than a decade ago, African countries
were spared the brunt of the economic impact, because many were less
integrated with global financial markets and supply chains, Selassie and
Ongley wrote. Debt levels were lower too and countries had more room to
increase spending to boost growth.

 

In the coronavirus pandemic, a number of countries have closed borders and
limited public gatherings, which will cut many off from paid work.

 

“For society’s most vulnerable in the region, ‘social distancing’ is not
realistic. The notion of working from home is only possible for the few,”
Selassie and Ongley wrote.

 

IMPACT ON OIL EXPORTERS

The disruptions to livelihoods will mean less income, less spending, and
fewer jobs. Closed borders mean that travel and tourism will dry up, along
with trade and shipping.

 

The partial shutdown of major economies means that global demand will fall,
further disrupting supply chains and trade. And tighter global financial
conditions will limit access to finance and delay investments and
development projects, they wrote

 

With oil prices down 50% since the start of 2020, the impact on oil
exporters in Africa will be substantial.

 

“We estimate that each 10% decline in oil prices will, on average, lower
growth in oil exporters by 0.6% and increase overall fiscal deficits by 0.8%
of GDP,” they wrote.

 

Nonetheless, they recommended increased fiscal spending - first on public
health, but also to provide broad economic support, including cash transfers
to individuals and households under strain.

 

“Where feasible, governments should consider targeted and temporary support
for hard-hit sectors such as tourism. For instance, temporary tax relief
through targeted reductions or delays in paying taxes could help address
cashflow shortfalls for affected businesses,” they wrote.

 

 

 

 

 

 


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Afreximbank creates $3 bln pandemic credit facility for Africa

JOHANNESBURG (Reuters) - The African Export Import Bank is creating a $3
billion credit facility to help African countries overcome the effects of
the coronavirus pandemic, Afreximbank announced in a statement.

 

The Pandemic Trade Impact Mitigation Facility will help countries avoid
trade payment defaults, support foreign exchange reserves and assist
commodities exporters struggling with declining revenues, the statement,
released late on Tuesday, said.

 

“Africa is exposed on many fronts, including significant declines in tourism
earnings, migrant remittances, commodity prices and disruption of
manufacturing supply chains,” said Benedict Oramah, president of the
Cairo-based bank. “A rapid and impactful financial response is required to
avert a major crisis in Africa.”

 

The pandemic is expected to strain Africa’s under-equipped health systems.
Many African countries are already reeling from declining oil and
commodities prices. And weakening local currencies are making it more
expensive to service foreign currency-denominated debt.

 

 

 

South Africa to continue processing platinum metals during lockdown

JOHANNESBURG (Reuters) - South Africa will continue to process platinum
group metals (PGMs) during its 21-day coronavirus lockdown, the country’s
minister of mines and energy said on Wednesday.

 

A leading producer of platinum, palladium, coal and gold, South Africa’s
mining sector accounts for about 18% of the nation’s gross domestic product.

 

“Production in gold, chrome, manganese and other sectors will be scaled
down, while processing of surface materials in the PGM sectors will
continue,” Gwede Mantashe told a news conference.

 

“This will allow smelters, which cannot be switched on and off abruptly, to
remain operational.”

 

PGMs, which include platinum and palladium, are used in catalytic converters
that help to reduce car emissions, as well as in jewellery and medical
devices.

 

The announcement came after South Africa’s Minerals Council lobbied
government to allow smelters and refiners to continue operating during the
national lockdown, which starts at midnight on Thursday.

 

“Where stockpiles of surface materials are available [...] concentrators,
smelters and refineries should be allowed to continue production on a
lower-scale basis with skeleton staff and with all the Covid-19 preventative
measures in place,” said a Minerals Council document seen by Reuters.

 

Whether Rand Refinery, sub-Saharan Africa’s biggest gold refinery, would
also be allowed to continue operating remained unclear.

 

Mining companies are bracing for a heavy hit from the lockdown, with many
putting mines on care and maintenance status.

 

Platinum prices surged 10% on Tuesday after President Ramaphosa announced
the lockdown. [nL8N2BH76S]

 

Mining companies may also apply to the minister case by case to maintain
limited operations, the Minerals Council said in a statement after
Mantashe’s news conference.

 

The mining industry body also said that “services to staff residences” would
continue.

 

In its recommendations document the Minerals Council had asked for workers’
hostels near mine sites to remain open to avoid the risk of virus
transmission if they travel back to their homes for the lockdown.

 

THERMAL COAL

National power utility Eskom earlier said miners and transporters of the
thermal coal it needs for its power stations will continue to operate during
the lockdown. [nJ8N2AI02H]

 

Production and distribution of petroleum products would also continue,
Mantashe said.

 

The National Union of Mineworkers (NUM), one of the biggest unions in the
sector, said mines producing metallurgical coal would, however, be placed on
care and maintenance.

 

“The mines should ensure that they are not exposed to any kind of risks to
the virus,” a union statement said.

 

Richards Bay Coal Terminal - Africa’s largest coal export facility - did not
reply to requests for comment on the lockdown’s impact on thermal coal
exports, most of which go to Asia.

 

 

 

 

Taking QE route, S.Africa's central bank starts buying bonds

JOHANNESBURG (Reuters) - South Africa’s central bank on Wednesday launched a
bond-buying programme, seeking to drum up demand in credit markets as the
coronavirus epidemic weighs on the country’s already ailing economy.

 

The Reserve Bank (SARB) has long resisted public and political pressure to
intervene more directly in providing stimulus. Wednesday’s move brings it
into line with major central banks across the developed world that have run
large-scale asset purchase programmes.

 

South Africa’s economy will come under increasing pressure as it enters a
21-day national lockdown from Thursday, ordered by President Cyril Ramaphosa
in response to the spread of COVID-19, of which more than 700 confirmed
cases have been registered, but as yet no deaths.

 

The country’s bond market has been short of buyers since February, while
daily sales of sovereign debt have regularly topped 4 billion rand ($230
million), including a record 12.8 billion rand on March 2.

 

The bank said it would buy bonds of varying maturities in the secondary
market, without giving further details.

 

The move should boost the take-up of government debt and make it easier for
commercial banks to fund their operations.

 

ROOM FOR RATE CUTS

Duma Gquble, an independent economist, said it amounted to quantitative
easing, “something we’ve called for for a long time.”

 

“We’re headed to an era where the separation of fiscal and monetary policy
doesn’t make sense anymore,” he said.

 

South African banks and financial firms have in recent weeks seen a sharp
increase in redemptions of short-term funds, as well as higher margin calls,
while primary dealers - who buy government securities to sell on the
secondary market - have struggled for buyers.

 

“The bond market had dried up completely, there were no buyers in sight,
just sellers,” said FNB portfolio manager Wayne McCurrie.

 

The bank delivered a surprise 100 basis point cut to its main lending rate
on Thursday to help the economy, and said it stood poised to cut further if
market volatility continued.

 

Adrian Saville, head of Canon Assets, said that was on the cards in coming
weeks.

 

“We’ve got a lot of room to cut, about 5% of ammunition,” he said.

 

“We’re looking at a budget deficit in 10% territory after this passes. But
in the meantime the SARB has latitude to be far more aggressive, even
leaning into the world of helicopter money and giving every South African
“x” amount for the next three months.”

 

In its statement on Wednesday, the bank also said it would offer repurchase
agreements, or repos, for between seven days and 12 months.

 

($1 = 17.3989 rand)

 

 

Air Namibia suspends all flights until 20 April

WINDHOEK (Reuters) - Air Namibia has suspended all flights from Friday
following a partial lockdown directive by the government earlier this week
to curb the coronavirus that has so far infected seven people.

 

The airline said on Wednesday that all domestic and inter-African flights
will be suspended effective March 27 until April 20. Long-haul international
flights remain suspended since March 14, it added in a statement.

 

Air Namibia said it will remain available to offer charter flights for
humanitarian purposes, as well as airlifts of pharmaceutical supplies and
consumables.

 

“The safety of our passengers, staff and the nation at large remains at the
heart of our operations,” airline spokesperson Paul Nakawa said.

 

 

 

Botswana hikes power tariffs by 22% to help loss-making utility

GABORONE (Reuters) - Botswana Power Corporation (BPC) will increase
electricity tariffs by 22% from April 1, the regulator said on Wednesday, in
a bid to boost revenues for the loss-making state utility.

 

The Botswana Energy Regulatory Authority (BERA) said the price increases
would apply to all categories of users.

 

“The increase is to ensure tariffs are cost reflective, affordable and
appropriately priced. The rate remains one of the lowest in the countries in
the region without hydropower,” it said.

 

BPC has made operating losses for years due to high import costs,
non-performing assets and operational inefficiencies, making it reliant on
government subsidies to stay afloat.

 

But it has been slashing costs as part of a turnaround plan that has seen
operational losses fall from 2 billion pula in 2015 ($168 million) to 72
million pula in 2019.

 

Government subsidies have gradually reduced from a peak of 2.3 billion pula
in 2015 to 800 million pula in 2019.

 

BERA said that, although increasing tariffs would put pressure on households
and businesses already under strain from the coronavirus outbreak, the rise
was necessary to enable BPC to cover its operational expenses.

 

Botswana’s electricity demand now stands at 600 megawatts (MW), mostly met
by local coal fired plants and imports from South Africa.

 

The diamond-producing nation is looking to diversify its supply by
introducing solar power and electricity produced from Coal Bed Methane
(CBM), a gas found in coal deposits.

 

Two companies have been selected for a 100 MW CBM tender and are awaiting a
Power Purchase Agreement (PPA) offer from the government. BPC has issued
tender for a 100 MW solar project.

 

“In the next two years the country will have at least 130 MW of renewable
energy,” BERA Chief Exeucutive Rose Seretse said.

 

($1 = 11.9048 pulas)

 

 

 

South Africa's Eskom says coal stocks healthy ahead of lockdown

JOHANNESBURG (Reuters) - South African power utility Eskom said on Wednesday
that coal stocks at its power stations were healthy, with at least 20 days
of supplies at all stations, before a nationwide lockdown over the
coronavirus outbreak starting at midnight on Thursday.

 

Eskom said all its activities were considered “essential services” under
labour law and that it would apply for an exemption from the 21-day lockdown
for critical staff. It has asked coal miners, coal transporters and freight
company Transnet to continue coal supply operations during the lockdown.

 

 

 

South African Airways to suspend all domestic flights as lockdown looms

JOHANNESBURG (Reuters) - South African Airways (SAA) said on Tuesday it will
suspend all its domestic flights from Friday until April 16 in support of a
national lockdown to curb the spread of COVID-19, the disease caused by the
new coronavirus.

 

President Cyril Ramaphosa announced a 21-day lockdown from midnight on
Thursday in an address to the nation on Monday, as the number of confirmed
cases jumped by 128 to 402. On Tuesday the number climbed by another 152 to
554.

 

“SAA supports this national effort as announced by the government, to
retard, contain, manage and disrupt the rate of transmission of the
COVID-19,” the state-owned airline said in a statement.

 

SAA said its call centres would not operate for the duration of the
lockdown, and it would give customers one free travel change for travel
between Tuesday and Thursday.

 

SAA, which has been in bankruptcy protection since December, had already
suspended intercontinental and African regional flights until the end of
May.

 

Another struggling state-owned airline, SA Express, suspended its operations
last Wednesday.

 

The aviation company Comair on Tuesday suspended all flights for its
franchise partner British Airways and the kulula.com low-cost airline from
Thursday until April 19, while budget airline FlySafair suspended its
flights until April 20. [L8N2BH3SM]

 

SAA has not made a profit since 2011 and has received more than 20 billion
rand ($1.2 billion) in bailouts in the past three years.

 

 

 

MTN Uganda eliminates mobile money charges amid coronavirus outbreak

KAMPALA (Reuters) - MTN Uganda, the country’s largest telecoms firm, has
eliminated some charges on its mobile money platform to help spur greater
use of digital transactions and discourage the use of cash as a way to
potentially slow the spread of the coronavirus outbreak.

 

The company, which has 8 million mobile money users out of a total 13
million mobile phone subscribers, said it will not levy any fees on money
sent between customers on its platform

 

Uganda has so far recorded nine cases of COVID-19.

 

The offer “is designed to reduce the risk of transmission by avoiding the
physical exchange of currency notes,” MTN said in a statement issued late on
Tuesday.

 

The move follows a similar approach in Kenya where last week the central
bank announced measures to encourage the use of mobile money instead of cash
to reduce the risk of transmission of the coronavirus in the country.

 

A local unit of South Africa’s MTN Group, MTN Uganda is the east African
country’s largest telecommunications firm. MTN also said it had introduced
lower-priced data products to broaden affordability of connectivity as more
people start to work from home to curb the spread of the virus.

 

Mobile money is a cell phone-enabled service that allows subscribers to
transfer money and make payments for products and services like bills, food
orders and ride hails. The platform has developed rapidly in Africa, where
it is now widely used.

 

Uganda has about 23.6 million mobile phone subscribers, a little more than
half of the country’s population.

 

 

 

South Africa's largest refinery to minimise maintenance over coronavirus
shutdown

CAPE TOWN (Reuters) - South Africa’s largest refinery SAPREF will “minimise”
maintenance to critical activities, a spokeswoman said on Wednesday, as a
national lockdown looms to contain the spread of coronavirus.

 

“Arrangements are in place to sustain crude supply into the refinery. Our
intention is to continue to operate to support the supply of petroleum
products to the country,” the spokeswoman added.

 

SAPREF, situated near Durban along the east coast, is a 50/50 joint venture
between BP and Shell with a refining capacity of around 8.5 million tons a
year. It accounts for 35% of the refining capacity in Africa’s most advanced
economy, which is a net importer of petroleum products.

 

 

 

US markets close higher after emergency virus deal

US markets gained again as Donald Trump and the Senate agreed a massive
economic relief package worth more than $1.8 trillion (£1.5tn).

 

The package includes money to bail out industries that have been affected by
the coronavirus crisis.

 

Republican Senate Majority leader Mitch McConnell described it as a "wartime
level of investment" in the economy.

 

The relief plans lifted financial markets around the world, but investors
remained on edge.

 

US markets, which surged on Tuesday in anticipation of the deal, teetered in
the final moments of trade on Wednesday, closing below their peak for the
day.

 

The Dow Jones Industrial Average ended 2.4% higher, while the S&P 500 closed
up 1.1%. The Nasdaq dipped 0.45%.

 

Shares in Boeing surged more than 23%, fuelled in part by expectations that
it would benefit from the deal.

 

Earlier, shares rose in Europe and Asia on news of the relief package.
Japan's benchmark Nikkei 225 index closed 8% higher, while London's FTSE 100
index gained more than 4.4%.

 

 

Full details of the deal agreed in the US will not be published until later
on Wednesday. However, it is expected to contain measures to help people pay
bills if they are laid off because of the virus, expand unemployment
assistance by $250bn and get $350bn in emergency loans to small firms.

 

Mr McConnell said it would also "stabilise" key industrial sectors and give
money to hospitals and other healthcare providers which were having
difficulty getting equipment.

 

"We're going to pass this legislation later today," Mr McConnell added.

 

Senate Democratic Leader Chuck Schumer called the package "the largest
rescue package in American history". He said it was a "Marshall Plan" for
hospitals. "Help is on the way, big help and quick help."

 

Separately, President Trump on Tuesday said he wanted to get the economy up
and running again by Easter.

 

On Wall Street, the Dow Jones jumped by 11.4% on Tuesday - its biggest
one-day gain since the Great Depression - as political leaders signalled a
deal was close.

 

The final package is estimated to amount to about 10% of US output, more
than double the relief offered during the 2008 financial crisis. William
Foster, a vice president at Moody's Investors Service, said it would "help
mitigate the depth and duration of the economic shock".

 

"Nonetheless, we expect the virus to have a significant negative impact on
growth and the fiscal deficit this year," he said.

 

Global lockdown

Governments around the world have responded to a surge in coronavirus cases
by locking down societies in the hope of slowing the spread of the virus.

 

The International Monetary Fund has warned the hit to global growth is
likely to be bigger than the financial crisis.

 

Many countries are now working on stimulus packages to support their
economies, but these plans have received mixed responses from investors, as
markets experience unprecedented volatility as they grapple with the
economic impact of the coronavirus pandemic.

 

This month alone has seen the Dow having the five biggest daily gains and
five biggest falls of its 135-year history.

 

Reacting to news of the stimulus package, Tom Stevenson, investment director
at fund manager Fidelity International, said: "It's good news, but we're not
out of the woods yet.

 

"When markets are falling, you get these big rallies but you shouldn't get
stuck on that. They do bounce around in these situations."

 

The US rescue package follows five days of intense negotiations to try to
agree a deal that will provide aid for American workers and businesses.

 

Before it becomes law the deal must get through the Republican-controlled
Senate, the Democrat-controlled House of Representatives and be signed by
President Trump.

 

The US central bank, the Federal Reserve has already announced $4tn in extra
lending to help stimulate the economy in the face of the coronavirus.

 

Nearly 19,000 people have died with coronavirus worldwide since it emerged
in China's Wuhan province in January, and more than 420,000 infections have
been confirmed.

 

Southern Europe is now at the centre of the pandemic, with Italy and Spain
recording hundreds of new deaths every day. The US has confirmed more than
55,000 cases, the third highest of any country after China and Italy.

 

The US Congress has approved a $2tn rescue bill - the biggest package of
support for the economy in modern American history.

 

Like the UK's emergency economic measures, it offers $350bn in loans for
small businesses to cover expenses for up to 10 weeks; it also offers $500bn
in aid to airlines and other corporations. The government is also sending
out cheques of $1,200 for every adult and $500 per child.

 

But there's concern that the package, for all its huge size, simply isn't
big enough to soften the scale of the economic shock caused by the Covid-19
shutdown, now a global phenomenon. Some economists say US firms may need
five times as much cash to prevent mass bankruptcy and unemployment.--BBC

 

 

 

Banks under fire for coronavirus loan tactics

Banks have been criticised by firms and MPs for insisting on personal
guarantees to issue government-backed emergency loans to business owners.

 

The requirement loads most of the risk that the loan goes bad on the
business owner, rather than the banks.

 

It means that the banks can go after the personal property of the owner of a
firm if their business goes under and they cannot afford to pay off the
debt.

 

Their main home would be protected but the bank could go after other assets.

 

Those can include things like personal savings, shares or holiday homes. And
some think that will stop business owners from making use of the emergency
loan scheme, which the government put in place to stop businesses from going
under during the coronavirus crisis.

 

The coronavirus business interruption loans (CBIL) are a key plank of the
government's package to protect businesses throughout the ongoing shutdown.

 

How to apply for business support

Coronavirus support 'not open to firms like mine'

The British Business Bank, the government body that is overseeing the
scheme, decided not to require lenders to secure personal guarantees as part
of the loan programme. Instead, it told lenders they have discretion over
the security they require.

 

According to UK Finance, formerly the British Bankers Association, the
scheme should offer loans of up to £5m, where the government promises to
cover 80% of losses if the money is not repaid. But, it notes: "Lenders may
require security for the facility."

 

Repossess property

And that could allow banks to repossess the owner's personal property as
well as the assets of the business if the firm goes under.

 

Barclays has told customers they will be required to sign personal
guarantees to access the government-supported emergency finance. And HSBC
told the BBC it will require a form of personal guarantee for loans over
£100,000.

 

However, Royal Bank of Scotland, which also owns NatWest, has confirmed it
will offer business interruption loans without asking business owners for
personal guarantees - proving that more generous terms can be offered.

 

The other banks will now come under pressure from business customers to copy
RBS.

 

Personal guarantees allow banks to lend more because it means they are more
likely to get their money back. That means they don't have to put as much
money aside to cover failures, which is one of the biggest costs for a bank.

 

But the use of personal guarantees shifts the risk from the bank and the
government on to the business owner themselves.

 

If a loan of £100,000 was made to a failed business and the owner had signed
a personal guarantee, the bank would first repossess the assets of the owner
or the business. Only then would the government would step in to cover 80%
of whatever loss remained and the bank would only have to fund whatever was
left after that.

 

Business owners and MPs say that is not fair when the firms themselves are
only seeking the loans because of emergency measures introduced by the
government.

 

The SME Alliance, which represents small and medium sized enterprises and is
led by business owner Andy Keats, said that while business owners were
grateful for the recognition that most firms will need help to survive the
crisis, "yet again, it is the banks and not businesses who will receive the
funds to help SMEs".

 

'Business owners take all the risk'

It said banks were seeking security - property they can repossess if the
loan is not repaid - for the entire value of the business interruption
loans.

 

"We would appreciate some clarity because, as things stand, the proposed
loans mean the banks have no risk, the government has a small risk and
businesses and their officers have 100% risk," said Mr Keats.

 

The All-Party Parliamentary Group on Fair Business Banking tweeted: "There
is confusion about [coronavirus business interruption loan schemes].
Treasury must issue clear guidance on parameters and not allow security at
'discretion of the lender' to muddy the waters. Unprecedented times require
emergency funding. Keep it simple, and no [personal guarantees]."

 

Kevin Hollinrake MP, a former business owner who chairs the group, said: "I
asked the chief secretary to the Treasury [Steve Barclay] in the House of
Commons - does the new scheme include personal guarantees and he said it was
his understanding that it would not. Well it's my understand now that it
will.

 

"It should not include [personal guarantees]. If it does, very few business
owners are going to want to take it up. In normal business circumstances,
you can't expect banks to lend money without some sort of commitment. But
these are unheralded times and unprecedented measures."--BBC

 

 

 

Coronavirus: What’s behind the great toilet roll grab?

"I didn't want to overbuy as I didn't want to be a part of the problem. So I
placed an online order on Amazon for 30 rolls for £18 - I thought that would
definitely cover her for three months."

 

Josh, a 25-year-old carer from Nottingham, is one of the many UK shoppers
who have been trying to get their hands on a highly sought-after commodity:
toilet paper.

 

He looks after his mum, a disabled cancer patient, and has been trying to
make sure that she has enough supplies to last for 12 weeks - the amount of
time people most at risk of coronavirus have been told to stay at home.

 

But Josh's delivery never came. He says it was listed as out for delivery by
Hermes on several different days, but eventually it just disappeared from
the portal. Josh believes it was stolen.

 

He says that he was offered a full refund for the purchase, but found the
whole situation frustrating: "Panic buying just instigates panic buying, and
we need to make sure that there's enough to go round for people like my
mum."

 

Hermes told the BBC that it doesn't receive any information on what is
inside the parcels it delivers, and that nearly all of its deliveries are
successful.

 

Lulu, a university graduate, lives with her mum who is a nurse. She had a
similar experience with a delivery from ethical toilet roll company Who
Gives A Crap.

 

She's had a subscription with the firm for about six months. She believes
that the £36 package of 48 rolls, which was clearly labelled as toilet
paper, was stolen.

 

The Australian firm, which uses half of its profits to help build toilets in
developing countries, told the BBC: "We've seen a small increase in concerns
that deliveries may have been stolen, but nothing drastic. In most cases we
are finding that the delivery just hasn't been completed yet."

 

Avant Garde Brands, which sells household products on Ebay and Wowcher, told
one UK customer that it was starting to receive reports of toilet roll
deliveries going missing too.

 

It said that the coronavirus pandemic had led to an "unprecedented" spike in
demand for retailers.

 

'Crazy' loo roll sales

Shoppers are turning to online shops and more niche toilet paper companies
so that they aren't caught short.

 

Bumboo offers subscriptions for its toilet rolls made from bamboo. For every
box purchased online, it plants a tree.

 

Although the firm has only been trading for seven full months, managing
director Fay Pottinger said that sales had gone "crazy" since the beginning
of March, when "the full impact of panic buying set in".

 

She told the BBC that so far this month, sales have jumped by about 325%
against the last. She adds this could have been much higher, had the company
not run out of stock.

 

US firm No. 2, which also sells bamboo toilet paper, said that in the
month-to-date, it had seen more than a 5,000% increase in its sales on
Amazon's website before it sold out too.

 

Meanwhile, Who Gives A Crap's chief executive Simon Griffiths said that at
the beginning of March, sales were up to five times higher than on an
average February day.

 

He added that although consumers might be worried, "it's important to show
compassion to each other right now, including to delivery drivers who are
out there every day ensuring people can get basic necessities delivered to
home".

 

'Snowball effect' of panic buying

Being stuck on the toilet with only one square left is seemingly one
scenario most panic buyers are trying to avoid.

 

Dr Cathrine Jansson-Boyd, a consumer psychologist at Anglia Ruskin
University, says when people are anxious, "they need to do something
practical to make it feel like they are in control".

 

The focus on toilet roll "likely started on the basis of some people trying
to be practical in that they wanted to stock up on basics in case they could
not go out. There's then been a snowball effect as consumers observed each
other stockpiling - they also had to do it."

 

She adds that seeing photos of empty shelves online "further fuels a vicious
circle".

 

While stockpiling might ease some consumers' anxieties around the virus,
people need to remember to stay "community-minded", said Tony Richards of
Essity, one of the UK's largest toilet paper producers.

 

He reassured consumers: "Don't panic...we can get toilet roll on the
shelves. We just need time."--BBC

 

 

 

Coronavirus: Construction firms split as shutdown calls grow

A growing number of construction companies have said they will stop all
non-essential work to help fight the coronavirus, but others continue to
operate amid confusion over the government's advice.

 

Housebuilder Persimmon has joined others in pledging to down tools, while
most work has stopped on HS2 rail.

 

But FTSE 250 listed Redrow is among those keeping sites open.

 

There is concern the virus will spread easily on busy construction sites.

 

The government has said work can continue so long as people are 2m (6.5ft)
apart, but critics say this is impossible to enforce, and that public health
should come first.

 

Taylor Wimpey, which builds over 10,000 homes a year, said this week that it
was closing all of its sites "because we believe it is the right thing to
do".

 

Barratt, meanwhile, said it would close 400 sites and offices to prioritise
"the health and safety of customers and employees".

 

Persimmon said it would stop all but essential work, while the majority of
HS2 sites had "paused or are pausing construction works," a spokesperson for
the project said.

 

But Cairn Construction, which built 2,200 homes last year, was among those
to say it would keep its sites open.

 

"Aligned to government guidelines, construction activity continues across
each of our active sites under extensive health and safety protocols," the
firm said.

 

On Tuesday, Health Secretary Matt Hancock said any worker who could not do
their job from home should go to work to "keep the country running".

 

But Michael Gove, the Cabinet Office minister, told ITV only construction
workers doing jobs "critical to the economy" should go in.

 

He added that builders should not be going into people's homes.

 

Construction workers fear for their safety

What are the new restrictions and why are they needed?

On Wednesday, however, Housing Secretary Robert Jenrick repeated Mr
Hancock's advice and told the BBC that work in people's homes was allowed if
it was done safely.

 

Reflecting the confusion, construction trade groups are currently giving
differing advice to members.

 

The National Federation of Builders, which represents small-to-medium sized
contractors, said builders could work on sites if they followed safety
guidelines, but the Federation of Master Builders said they should only go
in if it is for emergency work.

 

"While we accept the government's advice to keep sites open, we have
concerns about how this would be applied in practice," FMB boss Brian Berry
said.

 

Former Tory cabinet minister Iain Duncan Smith joined those calling for a
pause to all non-essential work in the UK, telling BBC Two's Newsnight: "I
think the balance is where we should delete some of those construction
workers from going to work and focus only on the emergency requirements."

 

Andy Burnham, Labour Mayor of Greater Manchester, told the programme the
decision to allow non-essential work appeared to have been made for
"economic reasons".

 

"When you're in the middle of a global pandemic, health reasons alone really
should be guiding all decision-making," he said.

 

Some construction workers told the BBC they feel "angry and unprotected"
going to work, while others are under pressure from employers to go in.

 

Many are self-employed and fear that they could lose income if their
employers shut down.

 

Chancellor Rishi Sunak has promised help for the self-employed and will
announce a package of support on Thursday at the government's daily press
conference, a government source told the BBC.

 

Taylor Wimpey said it was looking at how to support its around 2,000
directly employed staff, but had no plans for the "sizable number" of self
employed freelancers on its sites.

 

"They are generally not actually operating for us, they are operating for a
sub-contractor, so we are trying to support our subcontractors [by paying
them on time or in advance]," boss Pete Redfern told the BBC's World at One.

 

He admitted self-employed workers were the "single biggest gap" and that it
was "critical" government support came through quickly.

 

Different countries and regions have taken different approaches to the
issue. Italy, which is under a strict lockdown, says employees including
builders can continue to go to work if their jobs cannot be done at home.

 

But Boston in the US announced construction activity should be suspended on
Monday.

 

And Scotland First Minister Nicola Sturgeon said building sites "should
close for the period of the efforts to combat this virus".--BBC

 

 

 

Facebook group calls soar 1,000% during Italy's lockdown

Facebook has seen usage across its platforms surge in countries that have
brought in virus lockdowns.

 

Italy - with some of the toughest restrictions - has seen the biggest rise,
with group calls rocketing by more than 1,000% in the last month.

 

The social media giant said total messaging traffic on all its platforms had
increased 50% on average across the hardest hit countries.

 

Facebook owns Instagram along with popular messaging app WhatsApp.

 

But the company said the higher usage won't protect it from expected falls
in digital advertising across the world.

 

"We don't monetize many of the services where we're seeing increased
engagement," Facebook wrote in a post on Tuesday.

 

Italy has a death toll now above 6,000 people from the virus.

 

Along with the huge rise in time in group calls (three or more users), the
country has seen a 70% rise in time spent on Facebook-owned apps.

 

Facebook outlined steps it is taking to increase capacity during the
heightened traffic as people are stuck indoors and working from home.

 

"We're monitoring usage patterns carefully, making our systems more
efficient, and adding capacity as required," the post from Alex Schultz,
vice president of analytics, and Jay Parikh, vice president of engineering
wrote.

 

But it admitted this could become harder. "Maintaining stability throughout
these spikes in usage is more challenging than usual now that most of our
employees are working from home. We are experiencing new records in usage
almost every day."

 

Facebook has lowered video quality in Europe to help reduce demand on
internet service providers. Amazon, Apple TV+ and Netflix have all announced
similar measures.

 

The changes mean each video will use less data, putting less strain on
networks already struggling with increased traffic as people stream more
content while self-isolating at home.--BBC

 

 

 

 

 

 

 


 

 


 

INVESTORS DIARY 2020

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


Bindura Nickel Corporation

 

 

 


Padenga Holdings

 

 

 


Delta Corporation

 

 

 


Meikles Limited

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


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

 


 

 


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