Major International Business Headlines Brief::: 12 May 2020

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Major International Business Headlines Brief::: 12 May 2020

 


 

 


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ü  Johannesburg Stock Exchange offers virus crisis relief

ü  South African Airways rescue team to appeal court ruling on layoffs

ü  Mozambique seeks to close state companies behind debt scandal

ü  AngloGold Ashanti boosts cash flow despite production loss

ü  S.Africa's Vodacom reports 8.9% jump in full-year earnings, postpones
outlook

ü  Nigeria to ensure orderly foreign investor exits after oil price crash

ü  South Africa's rand firmer as global risk appetite continues

ü  Zambia seeks IMF funding to help soften impact of coronavirus

ü  South Africa ups weekly debt auctions by $109 mln to cover COVID-19
stimulus

ü  Eskom to fix design flaws at mammoth coal plants

ü  Musk defies orders to reopen Tesla's California plant

ü  Bitcoin 'halving': What does the much-hyped event mean?

ü  Branson to sell Galactic stake to prop up Virgin

ü  Chancellor to set out future of job retention scheme

ü  Brexit: UK-EU trade talks resume ahead of June summit

ü  Morrisons cuts petrol price to below £1 a litre

 

 

 


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Johannesburg Stock Exchange offers virus crisis relief

JOHANNESBURG (Reuters) - South Africa’s Johannesburg Stock Exchange (JSE)
will offer temporary relief to companies in financial distress because of
the coronavirus crisis, including cutting fees for new listings and extended
payment terms, it said on Monday.

 

Pressure on business following lockdown measures to slow the spread of the
novel coronavirus has led to an increase in companies filing for business
rescue - a local form of bankruptcy protection.

 

“The small cap counters are among the most vulnerable in strained markets.
The discounts we are announcing for these market segments are aimed at
stimulating liquidity and supporting this vital growth node of our economy,”
JSE Group Chief executive Leila Fourie said in a statement.

 

Under the measures, the JSE will grant distressed companies extended payment
terms of between three and six months, with no interest charged and offer a
50% fee reduction for trading, clearing, and settlement in all companies
listed on the JSE AltX and BEE Board for the remainder of 2020, it said.

 

AltX is the alternative board for smaller companies to raise capital on the
JSE.

 

The JSE is also reducing listing fees by 25% for those small companies and
AltX companies looking to tap the market to raise secondary capital.

 

In addition, the bourse will increase the amount of cash disbursements
returned to small and medium stockbrokers that are on the JSE’s Enterprise
Development Programme. The scheme was introduced by the JSE in 2016 to
increase black participation in the exchange.

 


 <mailto:info at bulls.co.zw> 

 


 

South African Airways rescue team to appeal court ruling on layoffs

JOHANNESBURG (Reuters) - Administrators trying save South African Airways
(SAA) will appeal a court ruling that ordered them to halt a layoff process,
one of the administrators Siviwe Dongwana told Reuters.

 

The Labour Court’s decision to side with two trade unions in its judgment on
Friday was a major blow to the administrators as they have said that layoffs
are necessary to avoid the airline being liquidated. [nL8N2CQ59M]
[nL5N2CB799]

 

State-owned SAA has been fighting for its survival since entering a form of
bankruptcy protection in December.

 

Its fortunes deteriorated when the coronavirus pandemic forced it to halt
all commercial passenger flights and the government said it would not
provide further funding.

 

The administrators have until the end of the month to draft a rescue plan
for SAA, which has not made a profit since 2011 and has received bailouts
worth more than 20 billion rand ($1.1 billion) over the past three years.

 

Public Enterprises Minister Pravin Gordhan wants SAA to be restructured into
a new airline. [nL8N2CO8BV]

 

($1 = 18.3647 rand)

 

 

 

 

Mozambique seeks to close state companies behind debt scandal

MAPUTO (Reuters) - Mozambican state prosecutors have applied to a court to
close three state companies at the heart of a debt scandal that triggered a
currency collapse and sovereign debt default, the prosecutors’ office told
Reuters.

 

Proindicus, Ematum and Mozambique Asset Management borrowed money from banks
including Russia’s VTB and Credit Suisse for a $2 billion project spanning
tuna fishing and maritime security that U.S. authorities say was an
elaborate front for a bribery and kickback scheme.

 

Hundreds of millions of dollars went missing from the project and the
supposed benefits never materialised, while Mozambique’s government did not
disclose some of the loans.

 

The Mozambique Attorney General’s Office said it had applied last month to
the Maputo City Court to shut down the three firms because they are
insolvent and suspended their activities more than three years ago.

 

Banks including VTB and Credit Suisse are involved in court cases demanding
payment from Mozambique. The loans were guaranteed by the southern African
country’s government, which will still be on the hook for the money if the
companies are dissolved by the court.

 

The debt scandal prompted donors including the International Monetary Fund
to cut off financial support in 2016. Mozambique is one of the world’s
poorest countries, but its economy is set to be transformed by massive
natural gas deposits.

 

 

 

 

AngloGold Ashanti boosts cash flow despite production loss

JOHANNESBURG (Reuters) - AngloGold Ashanti reported improved first-quarter
cash flow on Monday but said it had lost 11,000 ounces of production because
of coronavirus-related stoppages at its operations.

 

With stoppages at Brazilian, Argentinian and South African operations, total
production dipped to 716,000 ounces in the three months to March 31 from
752,000 ounces in the same period last year, but the company reported strong
performances from its Kibali, Geita and Iduapriem mines.

 

The miner withdrew its annual production guidance in March.

 

However, free cash flow before growth capital increased 231% year on year to
$94 million, the company said.

 

“Cash flow is strong, leverage is down, and all operations are running,”
Chief Executive Kelvin Dushnisky said in a statement.

 

AngloGold has resumed operations at affected mines, with South African mines
able to produce at 50% capacity after the government lifted an order for
most underground mines and furnaces to be put on care and maintenance as
part of a nationwide lockdown.

 

AngloGold has also benefited from strong bullion prices on rising demand for
a commodity widely perceived as a safe-haven investment in times of economic
and political instability.

 

The company said it had bolstered liquidity to $1.1 billion after redeeming
a 10-year $700 million bond and securing additional credit facilities of $1
billion.

 

Adjusted earnings before interest, tax, depreciation and amortisation
(EBITDA) rose 54% year on year to $473 million, compared with $307 million
in the same quarter last year.

 

AngloGold said it had built inventories of critical spares and ore
stockpiles to improve its ability to respond to operational disruptions and
limit the impact of the COVID-19 crisis.

 

 

 

S.Africa's Vodacom reports 8.9% jump in full-year earnings, postpones
outlook

JOHANNESBURG (Reuters) - South African mobile operator Vodacom Group
reported an 8.9% rise in annual earnings on Monday and postponed issuing
medium-term forecasts due to the uncertain economic outlook as the effects
of the coronavirus pandemic continue to unfold.

 

“The past year has been characterised by strong customer growth - we now
connect 116 million customers across the group, including Safaricom – and
the benefits of prudent portfolio diversification,” Group Chief Executive
Shameel Joosub said in a statement.

 

In South Africa, growth in the second half of the year ended March 31 more
than offset the decline in service revenue during the first, supported by an
increase in data elasticity and usage following sharp data price reductions
announced in the first quarter.

 

Vodacom also improved its fibre roll-out in the second half of the year,
more than doubling the total number of homes and businesses connected to
61,427.

 

The increased data traffic, a 21.5% jump in financial service revenue and a
6.7% rise in enterprise service revenue led to service revenue in South
Africa rising 2.3% in the year ended March 31.

 

“The increase in the drivers of data growth gives us confidence that we will
continue to see elasticity to compensate for the pricing transformation
initiatives agreed with the Competition Commission and implemented from 1
April 2020,” Joosub said.

 

Last December the competition watchdog ordered Vodacom and rival MTN to cut
30-day data prices after it found that prices charged by the operators were
much higher than those in other African countries.

 

Vodacom is also banking on high data demand by customers working and
learning from home due to coronavirus restrictions, to lift revenue.

 

Outside of South Africa, its international operations continued to show
strong growth, with an additional 4 million customers and increased demand
for data and financial services under mobile money platform M-Pesa
contributing to a 12.5% increase in service revenue.

 

This led to group revenue rising by 4.8% to 90.7 billion rand ($4.97
billion), with group service revenue up 5%.

 

Headline earnings per share (HEPS), the main profit measure in South Africa,
rose to 945 cents from 868 cents a year earlier.

 

Vodacom, which is majority owned by Vodafone, declared a final dividend of
405 cents per share.

 

At 0817 GMT, shares in Vodacom rose 2.38% to 126.40 rand.

 

The company said it will be postponing the issuance of medium-term targets,
“until such time that we have more clarity on the economic outlook and the
effect on our business and operations over the medium term.”

 

On a call with media, Joosub said Vodacom will prioritize capital
expenditure spend on network capacity to cope with increased data and voice
traffic as people work from home as well as on batteries and back-up power
for when power cuts resume.

 

($1 = 18.2589 rand)

 

 

 

Nigeria to ensure orderly foreign investor exits after oil price crash

ABUJA (Reuters) - Nigeria has put in place policies to ensure foreign
investors that want to repatriate funds can exit the country in an orderly
fashion, the central bank said late on Sunday, without giving any details.

 

Foreign investors have sold Nigerian assets at an accelerated pace since
February as lockdowns to curb the coronavirus pandemic have stalled economic
activity and triggered a crash in the price of oil, Nigeria’s main export.

 

That has put pressure on the naira currency and foreign exchange reserves.
Nigeria’s dollar reserve has declined 24% to $34 billion over the last year.

 

Last week, the central bank weakened the naira currency on the futures
market, mostly used by foreign investors to hedge against a fall versus the
U.S. dollar, by an average of 73 naira across maturities, a signal it
expects further depreciation.

 

In a statement late on Sunday, Governor Godwin Emefiele said that where
foreign exchange is available, strategic importation or service obligations
would take priority, adding that the central bank wanted to galvanise local
manufacturing activity.

 

The statement noted that the central bank had settled all dollar commitments
in an orderly manner in 2015, when the last oil price rout created a similar
dollar shortage.

 

Then, the bank introduced capital controls to avoid a mass exodus. It later
created a multiple currency regime to manage pressure on the naira which
culminated in a 15% devaluation two months ago as the central bank sought to
converge the rates.

 

The naira has since hit a series of lows on the black and over-the-counter
spot markets and the gap with the official market has widened, especially
after the bank suspended dollar sales in the wake of a coronavirus lockdown.
The oil price crash has exacerbated a shortage of dollars.

 

The central bank resumed forex sale to locals last week following the phased
easing of a coronavirus lockdown but has yet to start sales to foreign
investors, instead urging them to be patient and citing its new orderly exit
policy.

 

Buying naira futures does not guarantee access to dollars if there is a hard
currency shortage.

 

Analysts estimate there is pent up demand between $1.5 billion and $1.8
billion from investors looking to exit Nigeria, whose economy is now
forecast to shrink by 3.4% this year.

 

 

 

South Africa's rand firmer as global risk appetite continues

JOHANNESBURG (Reuters) - South Africa’s rand firmed early on Monday
alongside other emerging market currencies as more countries eased
coronavirus lockdown restrictions, boosting investor appetite for riskier
assets.

 

At 0730 GMT the rand was 0.25% firmer at 18.2850 per dollar versus a close
of 18.3300 on Friday.

 

European countries such as Spain and France, which have been hit hard by the
virus, have announced a phased easing of lockdown measures as death tolls
decline. Some Asia-Pacific nations, which have a relatively smaller number
of cases than European countries, are taking similar steps as well.

 

Risk appetite has picked up since the United States reported fewer job
losses than expected on Friday, with the rand clawing back ground as
investors seek value in risk assets that have hit oversold territory.

 

“The risk-on sentiment from Friday continues this morning as economies
restarting outweigh poor economic data and the first hint of a second wave
of Coronavirus cases,” said senior dealer at TreasuryONE Andre Botha in a
note.

 

“We need to break below 18.2500 to see a possible move towards 18.0000 and
then 17.7500,” he added.

 

With no major data releases locally or abroad the rand is seen trading in a
narrow range for most of the day, while the reaction to treasury’s decision
to up the amount on sale at its weekly auctions is set to be reflected in
bond trading.

 

South Africa will increase the amount of debt on sale at its weekly auctions
by nearly 2 billion rand ($109 million) to cover a budget deficit set to
increase sharply due to the coronavirus stimulus package announced by
President Cyril Ramaphosa in April.

 

In early trade yields were lower on long term government issues, with the
paper due in 2030 down 4 basis points to 9.25%, back to levels last seen in
early March before the pandemic struck.

 

 

 

 

Zambia seeks IMF funding to help soften impact of coronavirus

LUSAKA (Reuters) - Zambia has applied to the International Monetary Fund
(IMF) for a COVID-19-related rapid credit facility as it starts the process
of shortlisting financial advisers to help reduce its debt load, the finance
ministry said on Sunday.

 

Zambia was already wrestling with a growing public debt even before the new
coronavirus outbreak forced lockdowns across the globe, delivering a big
blow to demand for raw materials. Zambia is Africa’s second biggest copper
producer.

 

Discussions with the IMF on the rapid credit facility are continuing, the
finance ministry said in a statement.

 

Zambia has also closed a call for tenders for financial advisers over its
debt and started the process of shortlisting and selecting the winner, it
said in the same statement.

 

The IMF in April forecast Zambia’s economy would contract by 3.5% in 2020,
down from growth of 1.5% in 2019, because of the impact of the coronavirus
pandemic on the global economy.

 

Zambia’s economic activity has also been hampered by widespread power
shortages.

 

The Zambian government’s external debt stock jumped to 45% of gross domestic
product (GDP) in 2019, up from 37% in the previous year, while the total
debt stock is estimated at 89%, according to World Bank data.

 

The IMF has approved requests for emergency pandemic aid from 50 of its 189
members for a total of about $18 billion, a spokesman for the Fund said on
Thursday.

 

The number of new coronavirus cases in Zambia rose to 252 on Saturday and
deaths from the highly infectious respiratory disease increased to seven,
Health Minister Chitalu Chilufya said.

 

 

 

South Africa ups weekly debt auctions by $109 mln to cover COVID-19 stimulus

JOHANNESBURG (Reuters) - South Africa will increase the amount of debt on
sale at its weekly auctions by nearly 2 billion rand ($109 million) to cover
a budget deficit set to increase sharply due to the coronavirus stimulus
package announced by President Cyril Ramaphosa.

 

In a market announcement published on Friday on Johannesburg Stock Exchange,
the National Treasury said it would increase the amount on offer at weekly
government bond auctions by a combined 1.93 billion rand as part of plans it
outlined in its February budget.

 

The amount on offer at the fixed-rate government bond auction will rise by
1.57 billion rand to 6.1 billion rand as of May 19, while the weekly
inflation-linked bond auction amount will increase by 360 million rand to
1.4 billion rand from May 15, the treasury said.

 

The treasury had delayed the announcement of the increase due to “market
uncertainty that emanated from the COVID-19”, but said in the statement that
the “market has stabilized somewhat” allowing it to push through the
changes.

 

Ramaphosa announced a 500 billion rand rescue package in late April to try
to cushion the economic blow of the pandemic that has so far seen more than
10,000 infections in the country.

 

The extra spending, which includes unemployment and higher social income
grants, as well as support to businesses, is set to push the country’s
budget deficit above 14% of gross domestic product (GDP) in 2020/21 from the
6.8% shortfall forecast by treasury.

 

The spending will also ramp-up already soaring public debt to around 90% of
GDP, raising the danger of deeper credit-rating downgrades to junk after
Moody’s and Fitch pulled the trigger in April.

 

An increase in auction amounts, as well as new bond issuance in local and
foreign capital markets, has been expected by analysts concerned about the
inevitable plunge in economic growth and tax revenue due to the national
lockdown now in its seventh week.

 

“These figures were larger than expected,” said analyst at Intellidex Peter
Attard Montalto in a note. The increases of around 35% are higher than the
25% hike forecast by the firm.

 

“This is OK for now given the market is cash flush, but it shows the
importance of having a full emergency budget as soon as possible. The issue
is in the future for us – if such a level of issuance can be sustained or
even stepped up through this fiscal year into next year when the deficit
becomes stuck at 10%.”

 

($1 = 18.3564 rand)

 

 

 

 

Eskom to fix design flaws at mammoth coal plants

JOHANNESBURG (Reuters) - South African state utility Eskom plans to correct
design defects at all units of its mammoth Medupi and Kusile coal-fired
power stations, it said on Monday, after completing modifications on one of
the plants’ units.

 

Medupi and Kusile have been beset by faults and delays and are a major
reason why Eskom is struggling with around 450 billion rand ($24.5 billion)
of debt.

 

Eskom said in a statement that modifications at Medupi Unit 3 had gone
smoothly, with the unit reaching its full generation capacity of roughly 800
megawatts (MW) after returning to service.

 

It said it would start making similar design changes, which are partly aimed
at solving boiler problems, on Medupi’s other units over the remainder of
the year.

 

Once the work on Medupi is complete, Eskom will fix flaws at sister plant
Kusile, Eskom spokesman Sikonathi Mantshantsha said.

 

With a capacity of 4,800 MW each, Medupi and Kusile will be among the
largest coal power stations in the world when complete.

 

($1 = 18.4086 rand)

 

 

 

Musk defies orders to reopen Tesla's California plant

Tesla has reopened its only US electric car plant in California, despite
local orders against manufacturing.

 

On Monday, the company's chief executive Elon Musk tweeted that production
had restarted and he would be "on the line with everyone else".

 

US states and local governments are trying to determine the best way to open
up after lockdown.

 

Mr Musk previously vowed to move the firm's headquarters out of California
if the plant was not allowed to reopen.

 

While the state has eased restrictions to allow manufacturing, Alameda
County, where the Fremont plant is located, has not. The town is about one
hour south of San Francisco.

 

On Saturday, Elon Musk said that Tesla had filed a lawsuit against the
county asking a court to remove the order that prevents the carmaker from
resuming production.

 

Rather than wait for a ruling, Mr Musk announced on Twitter on Monday that
the plant would reopen.

 

The local police department said that it was aware of the situation, but
that it would act at the discretion of county health officials.

 

The Alameda County Public Health Department said on Monday it was "actively
communicating" with Tesla about reopening plans and that it was taking the
same approach it had taken with other business that had violated lockdown
orders.

 

In an email seen by Reuters, Tesla also reportedly told workers the decision
to reopen was in line with California guidelines.

 

Mr Musk wrote on Twitter that Tesla had been "singled out", saying that
other US carmakers were allowed to restart production.

 

Pictures of the Tesla car park on Monday showed it mostly full. The plant
has been closed to all but limited essential operations since 26 March.

 

Production outside of California

Tesla opened a plant in Shanghai last year and it is building another
outside of Berlin, but Fremont is home to Tesla's headquarters and its
primary manufacturing facility.

 

On Saturday, Mr Musk said he would relocate the US plant to another state if
necessary to restart production.

 

Officials from Texas, Utah, Georgia and Nevada, where Tesla already has a
battery assembly plant, had reached out to Twitter offering incentives to
move their jurisdictions.

 

US Treasury Secretary Steven Mnuchin said on Monday California "should
prioritize" helping Tesla reopen because it was one of the biggest
manufacturing employers in the state.

 

The state's governor, Gavin Newsom, said that he had spoken with Mr Musk
last week and that his concerns were part of the reason California decided
to phase in manufacturing as it slowly lifts lockdown measures.--BBC

 

 

 

 

Bitcoin 'halving': What does the much-hyped event mean?

Bitcoin has just gone through a much-hyped adjustment that reduced the rate
at which new coins are created.

 

The world's biggest cryptocurrency's so-called "halving" happens roughly
every four years.

 

The digital currency relies on what are known as "miners", who run software
that races to solve complex maths puzzles in return for Bitcoins.

 

Monday's halving event means that the reward for unlocking a "block" has
been cut from 12.5 new coins to 6.25.

 

Halving was written into the cryptocurrency's code by its creator, who is
known as Satoshi Nakamoto, to control inflation.

 

This is the third halving since Bitcoin's creation in 2009. The first took
place in November, 2012, and the second in July 2016. The next halving is
due to take place in May 2024.

 

Bitcoin's code also means that rewards to miners will continue to halve
every 210,000 blocks until they reach zero in around two decades' time,
limiting the total number of Bitcoins that will ever exist to 21 million.

 

This is because - unlike currencies such as the dollar, pound or euro -
digital currencies have no central banks to regulate their supply.

 

Supporters of the cryptocurrency say that this scarcity is part of what
underpins its value and makes it a potential safe haven against currencies
that are vulnerable to devaluation during times of economic crisis.

 

The digital currency has gained more than 20% since the start of this year,
touching $10,000 last week. That came after a report that hedge fund manager
Paul Tudor Jones has backed the cryptocurrency as a safeguard against
inflation.

 

However some investors have highlighted that halving could make the
cryptocurrency less attractive to miners.

 

"The incentive is less for miners now to mine Bitcoin. Miners will probably
switch to more profitable cryptocurrencies," Stephen Innes from AXI Corp
told the BBC.--BBC

 

 

 

 

Branson to sell Galactic stake to prop up Virgin

Sir Richard Branson is selling a stake in Virgin Galactic to raise $500m to
prop up his other businesses including Virgin Atlantic.

 

The billionaire has been criticised for seeking financial help from the
taxpayer for the airline.

 

Sir Richard will now sell a share of his space tourism business.

 

Virgin Group said it will use the proceeds to support its "leisure, holiday
and travel businesses" hit by "the unprecedented impact" of Covid-19.

 

Branson offers Caribbean island to secure Virgin bailout

Virgin Australia slumps into administration

Virgin Atlantic said last week it would cut more than 3,000 jobs and end its
operation at Gatwick.

 

Virgin's Australian airline entered administration last month.

 

The airline industry has been struggling as the coronavirus pandemic brought
global travel almost to a halt.

 

In April, Sir Richard - who owns 51% of Virgin Atlantic - offered to put his
luxury Necker Island resort up as collateral to secure a UK government loan,
believed to be around £500m.

 

Those talks with the government are continuing. But Virgin Atlantic, which
is a private company, has been focusing on discussions with investors.

 

It was reported at the weekend that potential investors include private
equity firms Greybull Capital, which came under scrutiny after the collapse
of British Steel, and Apollo Global Management.

 

In March, Chancellor Rishi Sunak wrote to airlines and airports urging them
to find other forms of funding, and that the government would only step in
as "a last resort" during the coronavirus crisis.

 

The airline has also lined up restructuring specialists Alvarez and Marsal
to draw up contingency plans in case of insolvency.--BBC

 

 

 

Chancellor to set out future of job retention scheme

Chancellor Rishi Sunak is to reveal the future of the government's job
retention scheme later, amid growing calls to extend it.

 

Currently, more than six million people are having 80% of their wages paid
by the government while they are temporarily on leave from their jobs.

 

Mr Sunak has previously warned the scheme, due to end in June, was not
"sustainable" at its current rate.

 

It comes as the government tries to get more people to return to work.

 

On Monday night, it published guidance for making workplaces "Covid secure",
including requiring employers to carry out risk assessments before they can
reopen.

 

'No cliff edge'

Nearly a quarter of the UK's workforce has been furloughed, with 80% of
employee's wages - up to £2,500 a month - being paid by the government.

 

On Monday, Prime Minister Boris Johnson described the initiative as "one of
the most remarkable features of the government's response" and "unlike
anything seen internationally".

 

"Six-and-a-half million people currently are being supported. It is
absolutely right that we should do it."

 

He added he did not want to steal his chancellor's thunder but said Mr Sunak
would update MPs on Tuesday.

 

Last week, Mr Sunak promised there would be no "cliff edge" cut-off.

 

Torsten Bell, the chief executive of the Resolution Foundation think tank
and an early advocate of the scheme, warned against it being removed too
quickly.

 

"Moving too quickly could spark a huge second surge in job losses at a time
when unemployment already looks set to be at the highest level for a quarter
of a century," he said.

 

"This policy has made a huge difference in this crisis. It now needs careful
and gradual change to ensure the benefits it has provided are secured rather
than squandered."

 

This latest development to the scheme comes as the government continues to
defend its return to work message, issued this week.

 

Both trade unions and Labour criticised Mr Johnson for issuing his
return-to-work call in his Sunday night TV broadcast without explaining how
it could be safely achieved.

 

On Monday, Mr Johnson used the daily Downing Street briefing to clarify the
new rules, saying employers would need to prove they met a new safety
standard, dubbed "Covid secure".

 

The Department for Business, Energy and Industrial Strategy released new
guidance for UK employers on how to implement social distancing measures,
with eight separate documents published for sectors which can now reopen.

 

Measures could include staggered start times, one-way systems, screens
between workers and increased cleaning.

 

Ministers are also due to provide further information on how people can
travel safely on public transport as the coronavirus lockdown begins to
ease.

 

TUC general secretary Frances O'Grady cautiously welcomed the new workplace
guidance, saying it was a "step in the right direction".

 

But the union said ministers had to gets to grips with the provision of
personal protective equipment as more workers needed it.

 

"After the confusion of the last few days, working people will only feel
confident if government and employers act now to make safer working a
reality in every workplace," she said.

 

'Very serious risk'

However, a former chief scientific adviser, Sir David King, cast doubt on
the safety of the plans, saying it would be "foolhardy" for people to go
back to work too soon.

 

He said the UK should first focus on developing effective contact tracing
and improving public health capacity before easing the lockdown.

 

"I think until that is in place I would only suggest that we run the very
serious risk of running back into where we just came out of six weeks ago,
and having to put us back into lockdown is going to extend the timescale of
the epidemic for a very much longer time.

 

"I think we should be considerably more cautious in undoing the lockdown."

 

Figures released on Monday showed a further 210 people have died in the UK
after testing positive for coronavirus, taking the total number of deaths
recorded to 32,065.

 

After eight days of missing its goal of 100,000 tests a day, on Monday the
government counted 100,490 tests on 10 May.--BBC

 

 

 

 

Brexit: UK-EU trade talks resume ahead of June summit

Talks between the UK and EU over a post-Brexit trade deal will enter their
third round later, ahead of a decisive summit next month.

 

Both sides are due to decide by the end of June whether the current deadline
for negotiating an agreement should be extended beyond the end of December.

 

The UK has said it will not agree to an extension, even if the EU requests
one.

 

The latest round of talks, to be held via video link, will end on Friday.

 

After the latest round in April, EU chief negotiator Michel Barnier said
progress had been disappointing, whilst the UK said only "limited progress"
had been made.

 

There are differences between the two sides on fisheries, competition rules,
police co-operation, and how a deal would be enforced.

 

BBC Europe Editor Katya Adler said the EU accuses the UK of concentrating on
its priorities whilst going slow on issues more important to the 27-member
bloc.

 

She added that the UK wants to first settle a core trade deal alongside
deals on aviation and energy, whilst the EU is keen to focus on fishing
quotas and competition rules.

 

She added that although the UK has ruled out extending the talks, leaving
tricky areas to the autumn could be risky if coronavirus infections peak
again.

 

Negotiations have been held using video-conferencing technology since last
month after face-to-face meetings were cancelled due to the pandemic.

 

The UK has rejected the suggestion it is not engaging in all negotiating
areas, accusing the EU of making demands not required of its other trade
partners.

 

Transition extension calls

The UK is currently in a transition period under which it must follow most
EU regulations, following its legal withdrawal from the bloc on 31 January.

 

Both sides exchanged legal text on a future trade deal in March. After the
negotiations this week, a fourth round of talks is scheduled to begin on 1
June.

 

Under the UK's withdrawal agreement with the EU, both sides currently have
until 31 December to ratify a trade deal and rules for future co-operation.

 

An extension to the December deadline should be made by the UK-EU "joint
committee" overseeing the agreement by 1 July.

 

Opposition parties including the Liberal Democrats and the SNP have both
called on the UK government to extend the transition period beyond December.

 

Shortly after becoming Labour leader last month, Sir Keir Starmer said the
UK should prolong talks beyond December if "necessary to do so".

 

He added that the December deadline was "going to be very, very tight," and
he thought it "unlikely" the government would finish talks in time.

 

But the government insists it is committed to agreeing a deal by December
2020, and an extension would simply prolong disruption for businesses.--BBC

 

 

 

Morrisons cuts petrol price to below £1 a litre

Morrisons has become the first major retailer to cut the price of petrol to
below the £1 per litre threshold at all of its forecourts across the UK.

 

The move comes after oil prices fell to an 18-year low last month, with some
questioning why it took retailers so long to pass on the saving.

 

The AA said it hoped more retailers would follow Morrisons' move.

 

The RAC said the lower price was "much more reflective of what the retailer
is itself paying to buy the fuel in".

 

Morrisons said for a typical 50-litre fill up, customers will save £4.50
compared to the current national average price of petrol.

 

In April, some filling stations around the country had been reportedly
offering petrol at less than £1, but this is thought to be the first time a
national chain has sold petrol throughout the UK below the threshold since
February 2016.

 

In January, the price of a barrel of Brent Crude had touched $70.

 

By mid-March a price war between oil producers Saudi Arabia and Russia led
to increased production and pushed prices to fall to close to $30 a barrel.

 

The oversupply of oil coincided with a steep drop in demand thanks to the
global coronavirus pandemic which shut factories, grounded airline fleets
and meant cars stayed in garages rather than out on the road.

 

As these issues combined the price of Brent Crude - the benchmark used by
Europe - fell to just above $20 a barrel - its lowest level since 2002.

 

Trickle down

The AA said that reductions in the wholesale price of petrol many weeks ago
should have brought the UK's average pump price down to £1 a litre already.

 

During the lockdown, retailers told drivers that they needed to keep prices
high to compensate for lower fuel volumes.

 

However, on Sunday night Prime Minister Boris Johnson began encouraging more
people to leave their homes, but avoid public transport, which is likely to
see more cars on the road.

 

AA spokesperson Luke Bosdet said: "Drivers can only hope that Morrisons
price move this morning will now break the logjam on pump prices. At least,
essential workers will no longer feel penalised for having to drive to
protect people and keep the country running during the lockdown."

 

Another factor propping up the price of fuel is that the biggest proportion
of the money you hand over for a litre of petrol goes to the government in
the form of tax.

 

Fuel duty is charged at 57.95p per litre.

 

On top of that, consumers also have to pay VAT at 20%.--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> 

 


 

 


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been compiled from sources believed to be reliable, but no representation or
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opinions expressed and recommendations made are subject to change without
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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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