Major International Business Headlines Brief::: 04 May 2020

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Major International Business Headlines Brief::: 04 May 2020

 


 

 


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ü  S.Africa deputy finance minister urges central bank to print money to
fund gov't -report

ü  Glencore's Zambia subsidiary to resume mining operations temporarily

ü  IMF approves $91 mln loan to Malawi for COVID-19 trade balance woes

ü  European Investment Bank joins WHO in pandemic help for Africa

ü  South Africa eases lockdown of battered economy

ü  Algeria's Jan-Feb cereals import bill down 8.5%

ü  Libyan central bank reserves to fall 20% as oil revenues sink -audit
bureau

ü  African free trade deal launch unlikely this year - AfCFTA Sec Gen

ü  South Africa willing to sell 'poorly functioning' state-owned firms -
finance minister

ü  Local investors cushion impact of South Africa bond index exit - for now

ü  Coronavirus: Treasury rolls out small business 'bounce back' loans

ü  Coronavirus: Air passengers told to wear face masks

ü  Coronavirus: Unions warn over move to increase rail services

ü  Elon Musk tweet wipes $14bn off Tesla's value

ü  Coronavirus: UK airlines warn quarantine will 'kill air travel'

 

 

 


 <mailto:info at bulls.co.zw> 

 


S.Africa deputy finance minister urges central bank to print money to fund
gov't -report

JOHANNESBURG (Reuters) - South Africa’s finance deputy minister was quoted
in a leading newspaper on Sunday as urging the central bank to temporarily
create money to fund the government response to the COVID-19 pandemic and
its economic fallout.

 

In an interview with the Sunday Times, David Masondo called on the
government to avert a 1930s-style depression by getting the central bank to
buy government bonds directly to fund the country’s deficit during the
coronavirus crisis.

 

“Such bonds must be once-off special bonds with earned proceeds, and should
be treated as a temporary measure with a clear exit plan,” he was quoted by
the paper as saying.

 

“Such money from the SARB (South African Reserve Bank) must be used for
immediate COVID-19 health-related interventions and ... economic recovery
measures,” he added.

 

A central bank spokeswoman did not immediately respond to a request for
comment.

 

President Cyril Ramaphosa last month announced a record 500 billion rand
($26.3 billion) rescue package equalling 10% of the GDP of Africa’s most
industrialized nation, to cushion the economic blow of the coronavirus
pandemic. Since then debate has stirred as to how it is to be funded.

 

Ramaphosa has approached the IMF and World Bank, a sensitive issue in a
government that has generally been hostile to the so-called Washington
consensus.

 

Masondo is a former youth leader of South Africa’s Communist Party, but
since Ramaphosa appointed him a year ago he has been a strong advocate of
tough economic reforms, including clamping down on excessive government
spending.

 

In an unprecedented move in March, the bank central did begin a programme of
buying back government bonds from the secondary market to inject liquidity
and prevent lending from seizing up.

 

But the idea of the central bank purchasing government debt directly to fund
the deficit would most likely cross a red line for Finance Minister Tito
Mboweni, a fiscal conservative who believes in central bank independence.

 

The government would also be keen to avoid a situation like neighbour
Zimbabwe, whose runaway money-printing to pay its bills triggered massive
hyperinflation a decade ago.

 


 <mailto:info at bulls.co.zw> 

 


 

Glencore's Zambia subsidiary to resume mining operations temporarily

LUSAKA (Reuters) - Glencore’s Zambian subsidiary Mopani Copper Mines (MCM)
will resume mining operations for 90 days but still expects to go ahead with
its initial plan to place its mining operations on care and maintenance, the
local firm said on Sunday.

 

Glencore’s original announcement that it planned to put MCM under “care and
maintenance” sparked a backlash from Zambia’s government, which threatened
to revoke the firm’s mining licences saying it had not given enough notice.

 

Mopani said in a statement that constructive discussions had taken place
with the Zambian government.

 

“During the 90-day period, Mopani will continue to engage with the
government on potential solutions to its current challenges,” the statement
said.

 

It said the health and safety of the workforce and surrounding communities
was a top priority and Mopani would engage with its employees, relevant
contractors and local communities regarding the restart of operations.

 

Mines ministry permanent secretary Barnaby Mulenga said Glencore had told
the government last month that it wanted to keep operating its Zambian
copper mining subsidiary Mopani Copper Mines (MCM) rather than shutter
operations.

 

 

 

IMF approves $91 mln loan to Malawi for COVID-19 trade balance woes

BLANTYRE (Reuters) - The International Monetary Fund (IMF) has approved a
$91 million loan for Malawi to help fund a balance of payments deficit
exacerbated by the COVID-19 pandemic, the Fund said in a statement.

 

“The COVID-19 pandemic is having a severe impact on Malawi, creating an
urgent balance of payments need,” Tao Zhang, deputy manager of the IMF, said
in the statement.

 

“The authorities have been proactive in mitigating the impact of the
pandemic, including through increased spending on health care and social
assistance ... and ensuring food security through purchase and storage of
agricultural harvests,” he added.

 

The low-income southeast African country, which so far has reported 37
coronavirus cases and three deaths, was already suffering from economic
stagnation linked to drought, leading to increasing unrest over falling
living standards.

 

Malawi’s main export is tobacco, which makes up about half of export
earnings, alongside other crops such as tea and sugar.

 

The World Bank said last month it had approved a $37 million funding package
to help Malawi respond to the coronavirus.

 

 

 

European Investment Bank joins WHO in pandemic help for Africa

LONDON (Reuters) - The European Investment Bank (EIB) said on Friday it
would boost its cooperation with the World Health Organization (WHO) as it
seeks to fight the COVID-19 pandemic around the world, in particular in
vulnerable African countries.

 

The partnership will strengthen primary health care in 10 African countries
by scaling up financing to ensure essential supply chains, including of
personal protective equipment and diagnostics, the two bodies said.

 

The EIB, the long-term lending institution of the European Union, said the
tie-up would help governments in low and middle-income countries to finance
and secure access to essential medical supplies and protective equipment
through centralised procurement.

 

While the bank has said it plans a 1.4 billion euro response to address the
health, social and economic impact of COVID-19 in Africa, it gave no details
on how much funding it would put behind the WHO partnership.

 

WHO Director-General Tedros Adhanom Ghebreyesus said the tie-up would
“contribute to a more effective response to COVID-19 and other pressing
health challenges.”

 

More than 3.27 million people around the world have been infected with
COVID-19, and 232,200 have died, according to a Reuters tally as of 0200 GMT
on Friday.

 

 

 

South Africa eases lockdown of battered economy

JOHANNESBURG (Reuters) - South Africa took its first shaky steps on Friday
towards rolling back one of the world’s strictest COVID-19 lockdowns,
seeking a balance between containing the disease and providing much-needed
relief for the economy.

 

Five weeks ago, President Cyril Ramaphosa ordered most citizens to remain
indoors and shuttered all but essential businesses. The response to the
pandemic won praise from the World Health Organization.

 

But Africa’s most advanced economy was in a recession even before the
pandemic, and the shutdown has threatened to send already rampant
unemployment soaring.

 

Reopening the economy is proving harder than closing it down.

 

New regulations were finalised only on Wednesday and led to some confusion.
Under the first phase of easing, only some sectors may restart operations,
and with limited staff.

 

Restaurants, for example, can now resume business, but just for food
deliveries.

 

Many businesses are weighing whether to reopen at all.

 

“Opening for delivery only will lose Nando’s and our franchise partners more
money than being closed,” said Mike Cathie, CEO of the spicy chicken chain,
which has remained shut.

 

McDonald’s South Africa is partially reopening. Famous Brands said its
Steers, Wimpy, Debonairs Pizza, Fishaways and Mugg & Bean chains would trial
delivery-only service.

 

In the Soweto township outside Johannesburg, Sakhumzi Maqubela said he did
not know if his popular sit-down restaurant would survive with just
deliveries.

 

“I have 110 staff. I have paid them with my savings till now. I don’t think
I can pay them any more,” he said.

 

SEVERE DAMAGE

South Africa has recorded 5,647 coronavirus cases and 103 deaths out of a
population of 58 million, relatively low numbers compared with COVID-19
hotspots in Europe or the United States.

 

But the economic hardship has been severe. There has been looting in some
areas during the lockdown. Images of kilometres-long queues for charity food
aid have been beamed around the world.

 

The National Treasury forecasts the economy will contract 5.8% this year.

 

The authorities’ new five-level system allows lockdown restrictions to be
eased or reintroduced based on the disease’s progression.

 

Trade Minister Ebrahim Patel told a parliamentary briefing that if infection
levels remain steady and testing is expanded, more easing could come soon.

 

LOST BUSINESSES AND HOUSES

The new rules initially allow industries including mining, steel production
and some clothing retail stores to gradually ramp up to 50% employment.

 

But employers worry the regulations will disrupt supply chains and undermine
the efficiency and scale needed to turn a profit.

 

“We are having a serious conversation about whether we should indeed open at
all,” said Ken Manners, chief executive of SP Metal Forgings, a supplier to
the auto industry, which makes up around 7% of national output.

 

Car makers are lobbying the government to allow their entire workforce to
return over coming weeks.

 

Meanwhile workers in the mining sector worry measures are not yet in place
to protect them from infection.

 

Most sectors are being asked to await further signs the disease has been
contained before resuming work.

 

Industry organisations say many businesses cannot hold out much longer.

 

“I get calls daily from workers pleading for assistance and members who have
lost their businesses and houses,” said Johann Baard, executive director of
the South African Apparel Association.

 

South Africa’s neighbours are watching it closely.

 

Namibia, which has recorded just 16 cases of the disease, will begin easing
restrictions on Monday. Zimbabwe must decide on whether to extend its
five-week lockdown, which expires on Sunday.

 

“These measures have brought our economy to virtual shutdown,” Zimbabwean
President Emmerson Mnangagwa said during a Labour Day address on Friday. “I
empathise greatly, but dread the inevitable horror of any let-up.”

 

 

 

Algeria's Jan-Feb cereals import bill down 8.5%

ALGIERS (Reuters) - Algeria’s expenditure on cereals imports fell 8.5% in
the first two months of 2020 from the same period last year, official data
showed on Sunday.

 

The North African country is one of the world’s largest grain importers, but
the government has been trying to reduce spending on food and other goods
after a sharp drop in energy earnings hit state finances.

 

The value of imported durum wheat, soft wheat, semolina and flour reached
$398.76 million over January and February, down from $435.84 million in the
first two months of 2019, according to customs figures.

 

Details on volumes were not disclosed.

 

Overall spending on food imports fell by 3.5% to $1.293 million, the figures
showed.

 

 

 

Libyan central bank reserves to fall 20% as oil revenues sink -audit bureau

TUNIS (Reuters) - Libya’s central bank reserves are seen falling by about
20% this year because of a blockade on energy exports by eastern-based
forces that has slashed revenues, the audit bureau said.

 

Annual oil revenues are expected to fall to $5 billion from $31 billion last
year, dragging the central bank reserves down to $50 billion, it said.

 

Eastern-based forces shut down oil exports in January. Global oil prices
have also crashed as the coronavirus pandemic hits demand, with no prospect
of a quick recovery in sight.

 

The fiscal deficit is forecast to reach 26.7 billion dinars ($19 billion)
this year compared to a surplus of 11 billion dinars in 2019, the
Tripoli-based audit bureau said in a video posted on Facebook on Friday.

 

Libya has been split since 2014 between the internationally recognised
Government of National Accord (GNA) in Tripoli and a rival administration in
Benghazi that controls eastern Libya and has set up parallel institutions.

 

Although most oil production and export facilities are in the east,
international agreements mean it can only be sold by the National Oil
Company (NOC) in Tripoli, with revenue flowing through the Tripoli-based
Central Bank of Libya (CBL).

 

The oil revenue is then used to finance state operations across the country,
including the salaries of public sector employees in the east as well as
areas controlled by the GNA.

 

Eastern-based forces shut off exports in January and the oil price has since
crashed, leading to an immediate reduction in revenue.

 

The GNA earlier this year issued a state budget with forecast spending but
without giving figures for expected revenues.

 

 

 

African free trade deal launch unlikely this year - AfCFTA Sec Gen

LAGOS (Reuters) - A blockbuster African trade deal is unlikely to be
implemented before early next year, an official said on Friday, after the
disruption caused by the new coronavirus made the current July 1 deadline
unworkable.

 

Wamkele Mene, Secretary-General of the African Continental Free Trade Area,
told Reuters that while only the heads of state of the 55-member AfCFTA
could sanction changes to the deadlines, the cancelled summit between
leaders planned for May in South Africa left few options.

 

“It is only after the summit that you can say we have a new trading date.
The next opportunity of a summit is on 2 January 2021,” Mene said.

 

The continental free-trade zone would, if successful, become the largest
since the creation of the World Trade Organization in 1994, stitching 1.3
billion people together in a $3.4 trillion economic bloc.

 

Mene’s role is effectively chief adviser to government leaders, who hold the
exclusive right to approve all parts of the deal and its implementation.

 

He has advised them to defer the July 1 implementation deadline due to the
extraordinary circumstances.

 

It would have required nations to liberalize at least 97% of their tariff
lines and 90% of imports. Mene is instead advising them to allow free
movement of goods, despite borders being closed to human traffic as part of
virus containment efforts, and to allow zero duties on 40 specific goods
that would help combat the virus, such as soap, disinfectant and personal
protective gear.

 

“The current circumstances simply are not conducive to the comprehensive
trade we had imagined,” he said.

 

On the advice of the African Centre for Disease Control, the final phase of
in-person trade negotiations were halted in March. This cut off two months
of crunch-time talks over technical details that would have seen hundreds of
negotiators spending 17-hour days passing thousands of documents back and
forth, whilst translating between the bloc’s four official languages.

 

Moving these discussions online, Mene said, is unrealistic.

 

“The technical difficulties are immense,” he said. “I’m not convinced...that
doing them over video conference is feasible.”

 

He said efforts would be redoubled once negotiators could meet in person,
and that African leaders are fully committed to the deal.

 

“What this pandemic has done is underscore the imperative of this objective.
When you are overly reliant on a particular trade partner, you are
vulnerable,” he said. “The pandemic is slowing us down, but I think this is
going to happen.”

 

 

 

 

South Africa willing to sell 'poorly functioning' state-owned firms -
finance minister

JOHANNESBURG (Reuters) - South Africa’s Finance Minister Tito Mboweni told
lawmakers on Thursday the government was willing to sell cash-burning
state-owned firms to ease pressure on government finances in the wake of the
coronavirus pandemic and sharply falling tax revenue.

 

The treasury sees gross domestic product slumping by nearly 6% in 2020,
while tax receipts are expected to tumble by at least a third. Answering
questions during a virtual session to parliament, Mboweni said the
government would sell “poorly functioning” state firms, without giving
details.

 

 

 

Local investors cushion impact of South Africa bond index exit - for now

JOHANNESBURG/LONDON (Reuters) - South Africa’s exclusion from a major global
bond index on Thursday appears to have been a less severe blow than
expected, with foreign investors having been given a full month’s warning to
exit the market and local investors stepping in to buy.

 

But if the bonds have so far avoided a sudden shock, they remain vulnerable
to a plunge in sentiment because of the impact of the coronavirus on an
already vulnerable economy.

 

South Africa lost its last investment grade rating in March, forcing it to
be excluded from the World Government Bond Index (WGBI) on Thursday. That
means some large overseas funds will no longer be able to hold the country’s
debt.

 

Analysts had predicted that exiting the index could lead to at least $5
billion of forced selling of the government’s rand-denominated bonds, based
on its weight in the roughly $1 trillion index.

 

But with the downgrade arriving on March 27 in the midst of the coronavirus
market rout, index provider FTSE Russell decided to postpone its WGBI
rebalancing until the end of April. That meant investors had plenty of time
to adjust their portfolios and avoid an abrupt exit.

 

Local asset managers do not expect a severe sudden blow, partly because so
much foreign selling has already happened: finance ministry data shows
foreign investors have already sold 57 billion rand ($3.2 billion) of bonds
this year.

 

Meanwhile, local investors have stepped in, said Nolan Wapenaar, co-Chief
Investment Officer at Anchor Capital in Johannesburg, pointing to an auction
of a 2026 instrument on Tuesday which saw bids of more than eight times the
amount on offer.

 

Giulia Pellegrini, senior portfolio manager at Allianz Global Investors in
London, said some emerging market (EM) investors still took a shine to South
African debt.

 

“The relative attractiveness of South African local bonds to other EM peers
as well as the depth of the South African domestic market ... helps cushion
this exclusion,” she said.

 

VULNERABLE POSITION

South Africa joined the WGBI in 2012, becoming the first and only African
government bond market in the index.

 

Getting kicked out is a severe symbolic blow. But with the coronavirus now
dominating investment decisions, it is no longer perceived as the
game-changing event it might once have seemed.

 

Wikus Furstenberg, portfolio manager at Futuregrowth Asset Management in
Cape Town, said economic fundamentals, rather than membership in an index,
were the big issues.

 

“We don’t know how bad the recession will be,” he said. “South Africa
started this crisis in a vulnerable fiscal position, and it’s not getting
better.”

 

Africa’s most industrialised nation was already predicting a budget deficit
of almost 7% of gross domestic product (GDP) before the new coronavirus
struck. Now this year’s deficit will probably reach double that, economists
say.

 

That could push its debt-to-GDP ratio close to 80% compared to around 50% as
recently as 2016.

 

“That is uncomfortable. That is saying the yield curve should continue to
steepen and explains why the government is selling more short-dated bonds,
because the longer-term bonds are going to battle to sell,” said Anchor
Capital’s Wapenaar.

 

After South Africa’s exit, attention could shift to Mexico, whose
investment-grade credit ratings are seen under threat.

 

The WGBI is dominated by developed markets but Poland, Malaysia and Israel
from May are also part of the index.

 

($1 = 18.0740 rand)

 

 

 

Coronavirus: Treasury rolls out small business 'bounce back' loans

Businesses will be able to apply for loans of up to £50,000 from Monday in a
scheme backed by the Treasury.

 

The new scheme, dubbed bounce back loans, will offer smaller amounts than
the existing Coronavirus Business Interruption Loan Scheme (CBILS).

 

But the Treasury says they will be quicker and easier to apply for and will
have a 2.5% interest rate.

 

The form will be seven questions long and the loan is 100% guaranteed by the
government.

 

The CBILS provide loans of up to £5m for companies with a turnover of less
than £45m.

 

The CBIL scheme loans have come in for criticism by some businesses,
especially smaller ones. Banks can often apply their usual lending criteria,
which makes it harder for smaller enterprises to qualify while locked down.

 

On Thursday, the number of CBILs agreed was 8,638, down from more than 9,000
the previous week.

 

Of 52,807 loans applied for, almost 28,000 have still to be approved.

 

Banks have been criticised for delays in handing out loans but have blamed
the heavy workload, the need to complete the necessary credit checks and a
shortage of staff.

 

The government insists these new loans will be easier to apply for.

 

Who can apply?

While the loans are aimed at smaller businesses, with £2,000 to £50,000 on
offer, there is no limit of business size which can apply.

 

Sole traders and limited companies affected by the coronavirus lockdown may
apply.

 

When will the money be available?

Businesses should apply through the bank with which they have a business
account. The Treasury says funds should then be available "within days".

 

Borrowers answer seven questions including information about turnover and
tax details.

 

What are the terms?

The government will cover the cost of fees and interest for 12 months and
businesses get this year as a holiday.

 

All lenders will charge a flat rate of 2.5% and the loans will last up to
six years.

 

I've applied for a CBILS loan

You can still apply for one of these new loans. You can switch your CBILS
application to a bounce back one if it was under £50,000.

 

Or, if you already have a CBIL you can convert it, the Treasury says.--BBC

 

 

 

Coronavirus: Air passengers told to wear face masks

Some major airlines are now requiring passengers to wear face mask on
flights to limit the spread of viruses.

 

Many big US airlines are bringing in new health and safety policies for both
passengers and cabin crew this week.

 

Other carriers around the world are also making mask wearing mandatory for
when they restart flights.

 

While around 90% of international flights have been cancelled, airlines hope
to gradually resume air travel starting this month.

 

>From Monday, US carrier Delta said it requires passengers to wear a mask or
other face covering in the check-in area, premium lounges, boarding gate
areas and onboard planes for the whole flight.

 

American Airlines and United have also said that they will start requiring
masks for passengers, along with cabin crew. The carriers say these are
temporary measures as they slowly resume flights.

 

“We are looking out for our customers’ well-being to give them peace of mind
while they travel with us,” said Kurt Stache, a spokesman for American
Airlines. “We’re moving quickly on these enhancements and we’ll continue to
improve the travel experience for our customers and team members as we
navigate these times together.”

 

“Face coverings will be mandatory for all passengers, and (we) will provide
masks to passengers for free,” said Maddie King, a spokeswoman for United
Airlines.

 

But not all airlines are making passengers wear face masks. Qantas said
there “are no requirements in Australia to wear masks. No decisions have
been made by the Government or airlines about what measures will be put in
place for travel once restrictions are lifted.”

 

The Australian national carrier said on its website: “While the risk of
contracting coronavirus on board an aircraft is regarded as low, social
distancing has been put in place across all flights.” It is currently
following guidelines from Australia's chief medical officer.

 

When it comes to a global policy for airlines to follow, there are a number
of bodies that could offer guidance including the International Air
Transport Association. (IATA). "The use of face covering inflight is among
the measures proposed in an industry roadmap for the restart of flights that
we are discussing with industry stakeholders and governments," said an IATA
spokesman.

 

Other measures

 

Airlines are bringing in a range of safety measures onboard to help prevent
the spread of the coronavirus. It's unclear if these will be temporary
measures or more long term.

 

Major pre-flight cleaning measures to disinfect heavily used areas are being
widely used along with reducing the number of people on each flight.

 

Passengers are also being encouraged to pack their own food and drinks to
decrease contact.--BBC

 

 

 

Coronavirus: Unions warn over move to increase rail services

Rail union leaders have written to Prime Minister Boris Johnson with "severe
concerns" over plans to increase train services.

 

Transport Secretary Grant Shapps told the BBC on Sunday that more buses and
trains would run as part of a staggered approach to easing the lockdown.

 

The letter says it is "completely unacceptable" to put passengers and rail
staff at risk.

 

The government says workers should still stay at home where possible.

 

"Our advice is clear that the best way to protect our NHS and save lives is
to stay home if possible," a Department for Transport (DfT) spokesperson
said.

 

"Our rail system has been carrying key workers and freight around the
country since the current restrictions were put in place, however we must
ensure the network is ready to respond to a change in demand when these are
lifted."

 

Safe delivery

Union bosses say there is currently no plan to be able to increase services
while also maintaining social distancing.

 

"We therefore call on the government and train operators to work with us in
establishing where there is a real demand to increase services and, where
that demand exists, how it can be delivered safely," says the letter, signed
by the general secretaries of Aslef, the RMT and the TSSA - Mick Whelan,
Mick Cash and Manuel Cortes.

 

Last month, one rail boss told the BBC that social-distancing of any kind
would be "extraordinarily difficult" to manage and police. Another said it
could reduce the capacity of an individual train by between 70% and 90%.

 

At the moment about half of normal train services in the UK are running so
that essential journeys are possible.

 

Stay at home

The DfT said in response it understood that talks would be needed to work
out how to increase services.

 

"Reinstating services is a complex and time-consuming task, which is why we
are in talks with the rail industry and unions on this issue," it said.

 

"In the meantime it is imperative people continue to follow the government
advice and stay home and only use public transport if you have to."

 

Earlier, Mr Shapps told the Andrew Marr Show that the government was looking
at a range of options for people to travel to work, including encouraging
what he described as a "massive expansion" in interest in "active travel"
such as cycling or walking.

 

"There are a series of different things that we can do including staggering
work times, working with businesses and organisations to do that," he said.

 

He also said he was working with train companies and unions on maintaining
social distancing rules on platforms and at bus stops.

 

Eurostar passengers will be required to cover their faces from Monday or
risk being refused travel.

 

The rail company said the rule for travellers to wear face coverings was in
line with guidelines from the French and Belgian governments.

 

Any type of face covering is allowed "as long as it effectively covers your
nose and mouth", a statement said.--BBC

 

 

 

Elon Musk tweet wipes $14bn off Tesla's value

Tesla boss Elon Musk wiped $14bn (£11bn) off the carmaker's value after
tweeting its share price was too high.

 

It also knocked $3bn off Mr Musk's own stake in Tesla as investors promptly
bailed out of the company.

 

"Tesla stock price too high imo," he said in one of several tweets that
included a vow to sell his possessions.

 

In other tweets, he said his girlfriend was mad at him, while another simply
read: "Rage, rage against the dying of the light of consciousness."

 

In 2018, a tweet about Tesla's future on the New York stock market led to
regulators fining the company $20m and Mr Musk agreeing to have all further
posts on the platform pre-screened by lawyers.

 

'Headache'

On Friday, the Wall Street Journal reported it had asked the billionaire if
he was joking about the share price tweet and whether it had been vetted,
receiving the reply "No".

 

Tesla's share price has surged this year, putting the electric carmaker's
value at close to $100bn, a mark that would trigger a bonus payment of
hundreds of millions of dollars to the entrepreneur.

 

"We view these Musk comments as tongue in cheek and it's Elon being Elon.
It's certainly a headache for investors for him to venture into this area as
his tweeting remains a hot button issue and [Wall] Street clearly is
frustrated," Wedbush Securities analyst Daniel Ives told Reuters news
agency.

 

In 2018, Mr Musk tweeted that he may have secured funding to possibly remove
Tesla from the stock market and take it private, which again led to swings
in the share price. The Securities and Exchange Commission judged it a
market-moving comment, fined him and forced Tesla to put in place checks to
ensure it did not happen again.

 

But last month, a federal judge said Tesla and Musk must face a lawsuit by
shareholders over the going-private tweet, including a claim that Mr Musk
intended to defraud them.

 

Earlier this week he tweeted to his 33.4 million followers some strong
criticism of US stay-at-home restrictions because of the coronavirus
pandemic. Last year he found himself in court after tweeting that a British
diver was a "pedo guy".

 

Mr Musk said the promise to sell his possessions included his house,
formerly owned by actor and producer Gene Wilder, and bought in 2013.

 

"One stipulation on sale," he tweeted, "I own Gene Wilder's old house. It
cannot be torn down or lose any of its soul."--BBC

 

 

 

Coronavirus: UK airlines warn quarantine will 'kill air travel'

Airlines have reacted angrily to government suggestions that the UK could
implement a 14-day quarantine for anyone arriving in the country.

 

Transport secretary Grant Shapps said he was "actively looking at these
issues so that when we have infection rates within the country under control
we're not importing".

 

But Airlines UK said such a measure "would effectively kill air travel".

 

It warned that the UK risked shutting itself from the rest of the world.

 

Mr Shapps told the Andrew Marr Programme that as the coronavirus infection
rate in the UK decreases, it was important "that we do ensure that the
sacrifices...that we're asking the British people to make are matched by
anyone who comes to this country".

 

However, Airlines UK, which represents the likes of British Airways,
Easyjet, Virgin Atlantic and Ryanair, said a quarantine would "completely
shut off the UK from the rest of the world when other countries are opening
up their economies".

 

Its chief executive, Tim Alderslade, said: "The danger is it would be a
blunt tool measure when what the UK should be doing is leading
internationally with health and aviation authorities on common standards,
including health screening, which will enable our sector to restart and give
people assurances that it's safe to travel."

 

Air travel has ground to a halt because of the global coronavirus pandemic,
prompting steep jobs cuts by the industry.

 

Last week, Ryanair said it planned to axe 3,000 workers and ask remaining
staff to take a pay cut.

 

BA said it would cut 12,000 of its workforce and warned that it may not
reopen at Gatwick once the pandemic passes.--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
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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
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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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