Major International Business Headlines Brief::: 08 May 2020

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Major International Business Headlines Brief::: 08 May 2020

 


 

 


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ü  Nigeria's five-year naira futures slide past 550 after cenbank weakens
contract -traders

ü  South Africa to develop plan for new 2,500 MW nuclear plant

ü  Rand Refinery restarts smelter, ramps up refining as S.Africa's lockdown
eases

ü  Nigeria's five-year naira futures slide past 550 after cenbank weakens
contract -traders

ü  Nigeria's UAC to spin-off of property arm by July -MD

ü  IMF approves $739 mln in emergency pandemic relief funds for Kenya

ü  IMF approves $491.5 mln loan for Uganda to limit coronavirus impact

ü  Tunisia lowers fuel prices for second time in a month

ü  World food prices fall sharply in April because of coronavirus -U.N

ü  African startup Helium Health closes $10 million funding round

ü  Uber says 'no sacred cows' as it faces crisis

ü  Can robotaxis ease public transport fears in China?

ü  Facebook and Google extend work from home to year end

ü  Young people are keen to fly again, says airline boss

ü  US unemployment claims hit 33.3 million amid virus

 

 

 


 <mailto:info at bulls.co.zw> 

 


Nigeria's five-year naira futures slide past 550 after cenbank weakens
contract -traders

(Reuters) - Nigeria’s five-year naira futures slid past 550 to the dollar on
Thursday after the central bank weakened the naira on the derivatives
market, signaling more pain to come for the currency, traders said.

 

The bank softened the currency on average by 73 naira across tenors, traders
said, with the one-year maturity revised by 27 naira. The 5-year naira
futures, introduced in February, weakened to 569 per dollar, traders said,
from 413 naira in the previous session.

 

The naira has been hitting new lows on the black and over-the-counter spot
markets since March after the central bank adjusted its official rate,
implying a 15% devaluation. An oil price crash last month, triggered by a
coronavirus pandemic, also worsened dollar shortages.

 

Dollar demand has been swelling and piling up pressure on the naira.
Importers with past due obligations have been scrambling for hard currency
while providers of foreign exchange such as offshore investors have exited.

 

The market differential between one-year naira futures and forwards narrowed
to 104 naira on Thursday from 130 naira in March, showing that the bank is
keen to close the currency gap after an oil price plunge put the naira under
pressure.

 

The non-deliverable forwards (NDF) market traded in London, which gives an
indication of where the currency could trade in a year’s time, quoted the
naira at 525 to the U.S. dollar.

 

The central bank devalued the official currency rate two months ago in a
move to converge a multiple exchange rates regime which it has used to
manage pressure on the naira.

 

But dollar shortages has caused the gap between the black market and
official market to widen especially after the bank suspended dollar sales in
the wake of a coronavirus lockdown.

 

The bank has resumed dollar sales to local clients this week, selling around
$100 million per week but is yet to sell to offshore investors, traders say,
estimating backlog demand at around $1.5 billion to $1.8 billion.

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

South Africa to develop plan for new 2,500 MW nuclear plant

CAPE TOWN (Reuters) - South Africa will soon start developing a plan for a
new 2,500 megawatt (MW) nuclear power plant, the energy ministry told
lawmakers on Thursday.

 

Africa’s most industrialised economy, which operates the continent’s only
nuclear power plant near Cape Town, said last year that it was considering
adding more nuclear capacity in the long term, after abandoning in 2018 a
massive nuclear expansion championed by former president Jacob Zuma.
[nL5N25G261]

 

Analysts had expressed serious concern about Zuma’s project for a fleet of
nuclear plants totalling 9,600 MW because it would have put massive
additional strain on public finances at a time of credit rating downgrades.

 

Its current nuclear plant, Koeberg, has a capacity of around 1,900 MW and
was synchronised to the grid in the 1980s.

 

“The development of the roadmap for the 2,500 MW Nuclear New Build Programme
will be commencing soon,” the energy ministry said in a presentation to a
parliamentary committee on its plans for 2020-25.

 

The presentation showed South Africa wanted to complete the procurement of
the new nuclear plant by 2024 but gave no indication as to when it wanted
construction of the plant to start or for when the plant would come online.

 

South African officials have talked about nuclear power as being part of an
“energy mix” that also includes renewable sources like wind and solar as
well as coal, on which it currently relies for more than 80% of its power
generation.

 

But financing those nuclear ambitions could be difficult at a time that the
country’s recession-hit economy is being hammered by the coronavirus
pandemic, with this year’s budget deficit expected to stretch into double
digits. [nL8N2CN68B]

 

Answering questions, Energy Minister Gwede Mantashe said on Thursday that
the government would first “test the market” and hear what potential
investors or consortia had to say about building the new nuclear facility.

 

“We may even give that company a right to develop a modular nuclear station
on a build, operate and transfer basis, which means there may be no
immediate call for funding from the state but the build programme can
continue,” he said.

 

“We are going to explore all options, when there is appetite for nuclear in
the market we will go ahead with it.”

 

 

 

Rand Refinery restarts smelter, ramps up refining as S.Africa's lockdown
eases

JOHANNESBURG (Reuters) - Rand Refinery is restarting smelting operations and
boosting refining as South Africa’s COVID-19 lockdown starts to ease, with
the speed of the ramp-up dependent on gold mines’ production, the chief
executive of the refinery said on Thursday.

 

Rand, which produces between 250 and 280 million tonnes of refined gold a
year, shut its smelter and scaled down gold refining for the duration of the
lockdown, which began on March 27 and was only beginning to ease slightly
from May 1.

 

Chief Executive Praveen Baijnath said the refinery, deemed an essential
service authorised to continue despite the lockdown, has been operating at
50% capacity, and is currently operating at “50 to 60%”.

 

“The degree of ramp up will be determined by the volumes of gold that will
emerge from the South African mines in the coming weeks and months,” he told
Reuters.

 

Most of South Africa’s gold mines - which include the world’s deepest,
Mponeng - were forced to temporarily shut down in the lockdown, but
President Ramaphosa on April 16 authorised mines to start up again at up to
50% capacity.

 

Deep-level gold mines - where social distancing is all but impossible -
remain a thorny issue, with mining unions demanding adequate regulations
over COVID-19 be put in place before they return to work.

 

Rand Refinery’s smelter, which processes low grade gold concentrates, was
restarting on Thursday, Baijnath said, having been under care and
maintenance since March 27.

 

Rand Refinery joins the ranks of gold refineries in Switzerland firing up
almost all operations again after the country relaxed its lockdown measures.

 

A private company, Rand Refinery’s shareholders include some of South
Africa’s biggest gold miners: AngloGold Ashanti with a 42.4% stake,
Sibanye-Stillwater with 33.15%, DRDGOLD which owns 11.3%, Harmony Gold with
10% and Gold Fields which holds 2.76%.

 

 

 

Nigeria's five-year naira futures slide past 550 after cenbank weakens
contract -traders

ABUJA (Reuters) - Nigeria’s five-year naira futures slid past 550 to the
dollar on Thursday after the central bank weakened the currency on the
derviatives market across maturities, traders said.

 

The bank weakened the currency on average by 73 naira across tenors, traders
said, with the one-year maturity revised by 27 naira. The 5-year naira
future weakened to 569 per dollar, traders said, from 413 naira in the
previous session.

 

 

 

Nigeria's UAC to spin-off of property arm by July -MD

ABUJA (Reuters) - Nigerian conglomerate UAC plans to complete an unbundling
of its majority stake in its loss-making property arm UPDC by July, subject
to coronavirus disruptions that might affect approval timings, the group
managing director said on Thursday.

 

 

 

IMF approves $739 mln in emergency pandemic relief funds for Kenya

WASHINGTON (Reuters) - The International Monetary Fund on Wednesday said its
executive board has approved $739 million in emergency financing to help
Kenya respond to the economic shock caused by the novel coronavirus
pandemic.

 

The IMF said it was in close contact with Kenyan authorities and stood ready
to provide policy advice and further support, as needed.

 

Kenya has 581 confirmed cases of the novel coronavirus and 26 deaths.

 

The virus has badly hurt major sectors such as tourism, horticulture and
manufacturing.

 

“The impact of COVID-19 on the Kenyan economy will be severe. It will act
through both global and domestic channels, and downside risks remain large,”
the IMF said in a statement. “While the authorities have taken decisive
action to respond to the pandemic’s health and economic impacts, the sudden
shock has left Kenya with significant fiscal and external financing needs.”

 

To limit the spread of the coronavirus, the East African country has
suspended commercial flights in and out of the country, imposed a
dusk-to-dawn curfew and banned public gatherings. It has also halted
movement in and out of five regions most affected by the virus, including
Nairobi, the capital.

 

The Finance Ministry forecasts 2020 economic growth will decline to 2.5% but
may fall to 1.8%, compared with 5.4% growth in 2019, as a result of the
outbreak.

 

The World Bank said last month that economic growth was expected to fall to
1.5% this year, and would contract 1% in the worst-case scenario under the
impact of the outbreak.

 

The IMF forecasts growth of 1.0% this year for Kenya.

 

“Emergency financing under the RCF (Rapid Credit Facility) will deliver
liquidity support to help Kenya cover its balance of payments gap this
year,” the IMF said. “It will provide much-needed resources for fiscal
interventions to safeguard public health and support households and firms
affected by the crisis.”

 

 

 

IMF approves $491.5 mln loan for Uganda to limit coronavirus impact

KAMPALA (Reuters) - Uganda will receive an emergency loan worth $491.5
million from the International Monetary Fund to help cushion its economy
from the impact of the new coronavirus, the fund said on Wednesday.

 

Key sectors of the East African economy such as tourism have taken a heavy
blow from the crisis. The effect has been compounded by a lockdown of the
entire population to curb the spread of the virus.

 

“The weakening economic conditions emanating from the Covid-19 pandemic have
put significant pressures on revenue collection, expenditure, reserves and
the exchange rate, creating urgent large external and fiscal financing
needs,” the IMF said in a statement.

 

“The IMF’s emergency financial support under the Rapid Credit Facility,
along with the additional donor financing it is expected to help catalyse,
will help address Uganda’s urgent balance of payments and budget support
needs.”

 

The Ministry of Finance projects the country’s foreign exchange reserves
will decline to the equivalent of 3.5 months’ worth of imports from 4.2
months’ worth as exports slump due to the global pandemic.

 

Countries receiving loans extended under the IMF's Rapid Credit Facility pay
no interest and have 10 years to return the money, according to the Fund's
website here

 

Uganda’s central bank expects economic growth to fall to 3%-4% for the
financial year to June from its previous projection of 5.5%-6%, as COVID-19
slashes activity in manufacturing, entertainment and trade.

 

Uganda has so far recorded 98 coronavirus cases but no deaths.

 

For about a month and a half from late March the country implemented one of
Africa’s strictest lockdowns. Authorities this week began to gradually
loosen it after President Yoweri Museveni declared the virus tamed.

 

 

 

Tunisia lowers fuel prices for second time in a month

TUNIS (Reuters) - Tunisia has cut fuel prices by 1.5% under a new mechanism
for automatic price adjustments, the energy ministry said on Thursday in its
second cut in a month as global oil prices fall.

 

The price of a litre of gasoline will decrease by 1.5% to 2.005 Tunisian
dinars ($0.6924) from 2.035 dinars starting on Friday, the ministry said in
a statement.

 

Last month, the ministry cut prices by 1.5% for the first time in four
years.

 

Tunisia expects hydrocarbon subsidies will reach 1.8 billion dinars out of 4
billion dinars allocated for all subsidies.

 

But the low level of global oil prices will reduce the government’s fuel
subsidies.

 

Finance Minister Nizar Yaich told Reuters previously that the recent big
drop in oil prices had helped save Tunisia about $300 million.

 

($1 = 2.8956 Tunisian dinars)

 

 

 

World food prices fall sharply in April because of coronavirus -U.N

ROME (Reuters) - World food prices fell for a third consecutive month in
April, hit by the economic and logistical impact of the coronavirus
pandemic, the United Nations food agency said on Thursday.

 

The Food and Agriculture Organization (FAO) food priceindex, which measures
monthly changes for a basket of cereals,oilseeds, dairy products, meat and
sugar, averaged 165.5 points last month, down 3.4% on March.

 

The FAO sugar price index fell to a 13-year low, plunging 14.6% from March,
with the coronavirus crisis hitting demand and tumbling crude oil prices
also reducing the need for sugarcane to produce ethanol, the Rome-based
agency said.

 

The vegetable oil price index fell 5.2%, hit by falling palm, soy and
rapeseed oil values, while the dairy index dropped 3.6%, with butter and
milk powder prices posting double-digit declines.

 

The meat index shed 2.7%, with a partial recovery in import demand from
China failing to balance a slump in imports elsewhere. FAO also said major
producing countries suffered logistical bottlenecks, while coronavirus
lockdowns in many nations had caused a sharp fall in sales.

 

“The pandemic is hitting both the demand and supply sides for meat, as
restaurant closures and reduced household incomes lead to lower consumption
and labour shortages on the processing side are impacting just-in-time
production systems,” said FAO Senior Economist Upali Galketi Aratchilage.

 

By contrast with the other indices, FAO’s cereal price index declined only
slightly, as international prices of wheat and rice rose significantly while
those of maize dropped sharply.

 

Rice prices rose 7.2% from March, due in large part to temporary export
restrictions by Vietnam that were subsequently repealed, FAO said. Wheat
prices rose 2.5% amid reports of a quick fulfilment of the export quota from
Russia.

 

However, prices of coarse grains, including maize, fell 10%, hit by reduced
demand for both animal feed and biofuel production.

 

FAO held its forecast for cereal production largely steady at 2.720 billion
tonnes in 2019, but reduced its forecast for cereal utilisation in 2019/20
by 24.7 million tonnes, mainly because of the impact of the coronavirus on
the economy.

 

FAO also unveiled its first forecasts for global wheat supply and demand in
the 2020/21 marketing season, predicting world production at 762.6 million
tonnes, broadly in line with the 2019 level.

 

It said it expected smaller harvests in the European Union, north Africa,
Ukraine and the United States. This would be largely offset by larger
harvests in Australia, Kazakhstan, Russian and India.

 

Global wheat utilisation in 2020/21 was expected to be stable, with
anticipated increases in food consumption outweighing reductions in feed and
industrial uses.

 

 

 

African startup Helium Health closes $10 million funding round

LAGOS (Reuters) - Helium Health, West Africa’s largest electronic medical
records provider, on Thursday said it had completed a $10 million funding
round, as investors step up the hunt for health-related startups amid the
coronavirus pandemic.

 

Dubai-based Global Ventures co-led the investment round with Asia Africa
Investment & Consulting (AAIC), which is backed by Japanese investors. The
startup, based in Nigeria’s commercial capital Lagos, also received
investment from China’s Tencent in the Series A funding round.

 

“Helium Health has the opportunity to solve large problems through its
software and help accelerate healthcare accessibility,” said Noor Sweid,
general partner and founder at Global Ventures.

 

The startup said it will use the investment to grow its customer base in
Nigeria, Ghana, and Liberia, and to fund a planned expansion this year into
North Africa, East Africa, and Francophone West Africa.

 

 

 

Uber says 'no sacred cows' as it faces crisis

Uber executives have warned they may scale back parts of the taxi hailing
app firm's business, as they try to steer the firm through the coronavirus
pandemic.

 

The comments follow Uber's announcement on Wednesday that it would cut about
14% of its staff.

 

That move and others the firm has already made will help save more than $1bn
(£810m) this year.

 

But executives warned that further measures may be necessary.

 

"There are no sacred cows," said Uber's chief financial officer Nelson Chai.

 

Uber, known for its ride-hailing app, has also ventured into other areas,
such as driverless cars and freight. But since chief executive Dara
Khosrowshahi, who took over after the ouster of founder Travis Kalanick, the
firm has concentrated more on its rides and food delivery business.

 

As the pandemic takes a financial toll, executives warned that they are
looking for places to cut.

 

"We're taking a hard look at our overall cost structure...to ensure our core
business of rides and eats emerges stronger than ever," Mr Khosrowshahi told
investors in a call to discuss the firm's quarterly results.

 

Uber said revenue in the three months to 31 March 2020 reached $3.5bn, up
14% year-on-year, in part due to increased food delivery.

 

But the firm's losses surged to $2.9bn, compared to $1bn a year ago.

 

Some of the decline was due to write-downs of the worth of minority
investments. The firm was also hit by a drop in demand, as countries began
to institute stay-at-home orders.

 

Uber's rides business - which contributes the bulk of its revenue - was down
80% in April, after the orders were instituted, Mr Khosrowshahi said.

 

But he added that he was encouraged by signs of recovery.

 

In Hong Kong, for example, Mr Khosrowshahi said demand has returned to about
70% of its pre-crisis levels. In Texas and Georgia, where officials have
relaxed restrictions, he said ridership has also been increasing slightly in
recent weeks.

 

Mr Khosrowshahi said that the crisis would delay the firm's goal of becoming
profitable by a matter of "quarters, not years".

 

"We're going to continue to look for more efficiencies. The reality is the
world has changed and we don't know when the recovery is going to be," said
Mr Chai.

 

"We're going to take the actions that we think are necessary."--BBC

 

 

 

Can robotaxis ease public transport fears in China?

The rise of self-driving taxis in China comes at a time when people are
nervous about taking public transport.

 

Robotaxi providers plan to ramp up the number of driverless cars they are
putting on the roads to cater to the increased demand.

 

One of the leading players AutoX is rolling out 100 autonomous vehicles in
Shanghai by June.

 

The start-up is one of several Chinese companies quickly moving to offer
self-driving taxi services to the public.

 

"The pandemic has made our society realise that we need self-driving cars
for situations like this," said a spokesman for AutoX, which is backed by
Chinese internet giant Alibaba. "RoboTaxi with its self-disinfecting
capabilities and driverless logistics could save lots of lives."

 

Internet search engine Baidu, China's answer to Google, is rolling out a
fleet of its Apollo robotaxis across three cities in China, although it
hasn't disclosed the number. Baidu worked with a number of carmakers
including Toyota, Honda and Ford for the development of Apollo.

 

"The epidemic highlights the large demand for autonomous driving
technologies during special times," said a spokesman for Baidu. "We and
partners are already using driverless vehicles during the epidemic and we've
deployed 104 driverless vehicles across 17 cities to help with disinfection,
delivery and transportation of goods."

 

During this first phase the robotaxis will not be truly driverless as they
need a human safety driver at the wheel. "The safety drivers will be phased
out- that is absolutely the intention of this service," added the AutoX
spokesman. "Virus spread will be a concern for a long time, so this strongly
motivates this type of automation."

 

In February, the Chinese government issued a blueprint for the development
of intelligent vehicles, to speed up the mass production of high-level
autonomous cars by 2025.

 

Pony.ai, founded by former Baidu and Google engineers, received $400m
(£325m) in funding from Japanese carmaker Toyota in February, pushing its
valuation to $3bn.

 

The firm has been trialling robotaxis in both China and the US. James Peng,
cofounder of Pony.ai, said the pandemic could prove to be an "accelerator"
of the trend towards autonomous driving.

 

Guangzhou-based WeRide has partnered with Chinese state-owned Baiyun Taxi
Group to test a fleet of 40 cars. WeRide said it expects fully driverless
robotaxis to be ready by 2021. But there are still plenty of legal and
regulatory hurdles for robotaxis to overcome even if the technology is
ready.

 

Another area for potential growth for robotaxi providers is driverless
deliveries, given the sharp rise in demand for shipping packages and
groceries during the coronavirus lockdown.--BBC

 

 

 

Facebook and Google extend work from home to year end

Facebook and Google have said they will let employees continue working from
home for the rest of the year.

 

The tech giants have announced plans to reopen their offices soon but are
allowing more home working flexibility.

 

Google originally said it would keep its work from home policy until 1 June,
but is extending it for seven more months.

 

Facebook said it would reopen its offices on 6 July as coronavirus lockdowns
are gradually lifted.

 

Google chief executive Sundar Pichai said that employees who need to return
to the office will start being able to do so from July with enhanced safety
measures in place.

 

But the majority of employees who can carry out their jobs from home will be
able to do so until the end of the year, Mr Pichai added.

 

The announcement coincides with Facebook's as more companies start rolling
out their back-to-work strategies.

 

"Facebook has taken the next step in its return to work philosophy. Today,
we announced anyone who can do their work remotely can choose to do so
through the end of the year," a spokesman said. "As you can imagine this is
an evolving situation as employees and their families make important
decisions re: return to work."

 

Facebook is still determining which employees will be asked to come in, the
spokeswoman added.

 

The social media platform was among the first tech firms to ask its
employees to begin working remotely. Facebook gave employees $1,000 (£807)
bonuses for their work-from-home and childcare costs.

 

The trend for working from home may suit some companies while they redesign
their office spaces to cater to new social distancing guidelines. Some
employees are nervous about returning to work in the middle of a global
pandemic.--BBC

 

 

 

Young people are keen to fly again, says airline boss

Every passenger has to wear a face mask and is offered hand sanitiser.

 

Some seats are left empty, there is no food served or in-flight magazines
and aircraft are deep-cleaned every night.

 

That's the new "hygiene regime" at Wizz Air.

 

Despite the fact that coronavirus travel restrictions remain in place around
much of Europe the airline has already resumed some routes. There is a
flight from Luton to Tenerife tomorrow afternoon.

 

The Hungarian budget airline's boss and founder József Váradi said they're
selling around 75% of seats on flights at the moment, although he added that
his aircraft are normally "around half full" because some people don't show
up.

 

In an interview with the BBC, Mr Váradi suggested that some people are now
flying to visit relatives, to their second homes or because "they just want
to break out of the current lockdown".

 

But Wizz Air isn't quizzing passengers about their reasons for travel.

 

"One of the trends we are sensing is young people want to be back in the air
quite quickly," he said.

 

However, the Hungarian entrepreneur expressed frustration that there is
still no set of international common standards for measures which should be
adopted on board aircraft and at airports to limit the spread of the virus.

 

"It's a bit of a zoo," he said, because "no two countries" out of the 45
nations where the airline operates are applying the same standards, or
interpreting them in the same way.

 

He also called for "a better balance", globally, between restrictions to
stop the spread of the virus and the need to restart business: "Countries
and people cannot be locked down forever."

 

Rival airline Easyjet recently suggested that the middle seats on aircraft
could be left empty so that social distancing is easier.

 

Can airlines survive?

Mr Váradi said that, in the longer-term, that "would kill an airline".

 

Airlines have been burning cash because their fleets are largely grounded.
What's more, passenger numbers are, broadly-speaking, not expected to return
to pre-pandemic levels for several years. Tens of thousands of cabin crew
and pilots are being laid off.

 

Wizz Air is cutting 1,000 of 5,000 jobs across Europe. However this week the
airline announced that it plans to launch new routes this summer from Luton
to four Greek islands as well as Faro in the Algarve. In the autumn it also
hopes to begin flights to Marrakech.

 

The airline boldly predicts it will be growing again by the end of this
year, and it plans to increase its fleet of aircraft from 121 to 135 over
the next 18 months.

 

After the pandemic, most people will be worse off and Mr Váradi predicts
this new economic climate will strengthen the hand of budget airlines.

 

Perhaps unsurprisingly, he also predicts that "a large number" of airlines
will go under: "If you are not a national carrier bailed out by the
government or you are not a self-sufficient cash rich airline, then your
days are over, the clock is ticking."

 

The limited leg room means passengers can be packed in on his modern fleet
of more fuel-efficient aircraft. Mr Váradi claims his airline's carbon
footprint is lower, per head, than that of competitors.

 

Any airline boss has to be optimistic, but any prediction that aircraft will
fill-up this summer when travel restrictions lift has to be tempered.

 

Forecasting by airlines is normally reliable but these are the most
unpredictable of times.--BBC

 

 

 

US unemployment claims hit 33.3 million amid virus

A further 3.2 million Americans sought unemployment benefits last week as
the economic toll from the coronavirus pandemic continued to mount.

 

The new applications brought the total number of jobless claims since
mid-March to 33.3 million- or about 20% of the US workforce.

 

The number of new claims reported each week by the Department of Labor has
subsided since hitting a peak of 6.9 million in March.

 

But they remain extraordinarily high.

 

And the number of people collecting benefits has continued to rise, despite
recent moves to start re-opening in some parts of the country.

 

"The significant rise in continuing claims ... is a little disappointing
since it suggests few people are being recalled to work," said Paul
Ashworth, chief US economist at Capital Economics.

 

Companies such as Uber, Lyft and Airbnb are amongst the firms that have
announced cuts in recent weeks, as shutdowns halted significant amounts of
travel.

 

The impact has been felt across the economy, affecting medical practices,
restaurants and administrative workers among many others.

 

Economists say the monthly unemployment rate for April, which will be
released on Friday, is likely to reach 15% or higher.

 

Just two months ago, the unemployment rate was at 3.5%, a 50-year low.

 

Since the coronavirus has taken hold in the US, the country has suffered its
worst growth numbers in a decade, the worst retail sales report on record
and declines in business activity not seen since the 2008 financial crisis.

 

Meanwhile, weeks of elevated unemployment claims have far surpassed the
prior record of 700,000.

 

Food pantries have seen spikes in demand, and homeowners and renters have
delayed monthly payments.

 

The National Multifamily Housing Council - an industry group for apartment
owners - reported last month that nearly a third of renters did not make
their full payment by the first of the month.

 

"If nothing else changes and evictions continue as normal, this public
health crisis will turn into a full blown homelessness crisis," said Matthew
Desmond, a sociology professor at Princeton University who runs the Eviction
Lab project.

 

All of my business has been cancelled - I've had no work since February. I'm
a corporate photographer, and businesses aren't doing corporate events right
now, and school graduations have been delayed. I've had about 15 jobs
cancelled.

 

My work normally happens in the spring and fall - a lot of corporations
don't have events over the summer, so I only have about seven months to make
my income. I have some events scheduled for October, but it's not clear
whether they're going to go ahead.

 

I haven't gotten my stimulus cheque yet - I don't know why. I had applied
for unemployment, but was told I didn't qualify - it's complicated because
I'm an employee of my own company, but don't pay myself until mid-year or
the end of the year. Fortunately my partner works.

 

I do miss my work - I'm very blessed I was able to do what I enjoy and make
a good living out of it. It takes a lot of perseverance, and I miss going
out and talking to people.

 

Economists are hoping the pain will ease as businesses gradually restart.

 

Retailers such as Gap have already announced plans for re-opening some
stores. Others, including J Crew and department store Neiman Marcus, have
been pushed into bankruptcy.

 

Moody's Investors Service has predicted that the unemployment rate could
fall back to 7% by the end of the year, but that forecast depends on the
virus. The longer the shutdown persists, the harder it will be for the
economy to rebound.

 

"If the US does not contain the pandemic and the economy remains shut beyond
the second quarter, the unemployment rate would rise further ... and many of
the job losses that we currently view as temporary would likely become
permanent," the firm's analysts said.--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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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
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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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