Major International Business Headlines Brief::: 15 May 2020

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Major International Business Headlines Brief::: 15 May 2020

 


 

 


 <http://www.nedbank.co.zw/> 

 


 

 


 

 

ü  Facebook, telcos plan subsea cable to connect Africa, Middle East and
Europe

ü  South African Reserve Bank to cut rates by another 50 basis points

ü  Nigeria set to keep record 2020 budget to fight coronavirus despite
earlier cut

ü  Uganda plans to open power transmission to private investment - regulator

ü  Egypt's unemployment falls in 1st quarter - agency

ü  SAA administrators will not sell assets without involving govt
-memorandum

ü  South Africa's MTN sticks to medium-term forecast as earnings rise

ü  Nigeria LNG signs EPC contract for Train 7 - oil minister

ü  Sierra Leone mining revenue sinks as pandemic hits production and prices

ü  South Africa's rand weaker as global economic worries weigh

ü  WTO head steps down a year early as downturn looms

ü  Coronavirus 'could cost global economy $8.8tn' says ADB'

ü  One in four US workers claiming jobless benefits

ü  Avanti introduces social distancing measures on its trains

ü  Amazon to make face shields and sell at cost

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


Facebook, telcos plan subsea cable to connect Africa, Middle East and Europe

JOHANNESBURG (Reuters) - Facebook and a team of African and global telecom
majors have struck a deal to build one of the world’s largest subsea cable
networks, boosting internet availability across three continents, they said
in a joint statement on Thursday.

 

South Africa’s MTN GlobalConnect and Mauritius-based infrastructure provider
WIOCC are partners in the project, along with China Mobile International,
French telecoms major Orange SA, Saudi Arabia’s stc, Telecom Egypt, and
Vodafone.

 

The project, called 2Africa, aims to build 37,000 kilometres of subsea cable
infrastructure which will directly connect countries around the African
coast to Europe and the Middle East, according to its website.

 

The network will have a design capacity of up to 150 terabytes per second
(Tbps) on key parts of the system, the site said. The 11 new cables rolled
out between 2009 and 2016 in sub-Saharan Africa provided around 70 Tbps of
design capacity.

 

Subsea infrastructure provider Alcatel Submarine Networks will build the
project, which is expected to be operational by 2023/24, the statement said.
The companies did not reveal how much money they were investing.

 

“2Africa... will interconnect Europe, the Middle East, and 21 landings in 16
countries in Africa,” the partners said in the statement. 

 

Subsea cables form the backbone of the internet, carrying 99% of the world’s
data traffic.

 

Africa’s big economies have a large and fast growing population of internet
users, with growth in internet use fuelled by rapidly expanding mobile
broadband networks and ever more affordable phones.

 

However, with a population of 1.3 billion, Africa is still a laggard in
internet connectivity, with average internet penetration at around 39%
against a world average of 59%.

 

On completion the subsea network will deliver more than the total combined
capacity of all subsea cables serving Africa today, the firms said in the
statement.

 

“Improving connectivity for Africa is a significant step which lays the
groundwork for increased digitalisation across the continent,” said Vodacom
International Business Chief Officer Diego Gutierrez.

 

Vodacom, which is majority owned by Britain’s Vodafone, is South Africa’s
second biggest telecom player.

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

South African Reserve Bank to cut rates by another 50 basis points

JOHANNESBURG (Reuters) - The South Africa Reserve Bank is expected to cut
interest rates by 50 basis points on May 21 to a record low of 3.75% to ease
the pain of the country’s recession, as this quarter shows signs of a steep
downturn due to limited economic activity, a Reuters poll found.

 

South Africa’s government has implemented a nationwide lockdown to contain
the spread of the coronavirus while the Reserve Bank has been buying
secondary market bonds to deal with the economic impact. The Treasury is due
to introduce a new budget on June 24 to add more stimulus.

 

“As the negative impact of the continued lockdown becomes more clearly
quantifiable, there is room for a further rate cut of 50 basis points given
current inflationary expectations,” said Frank Blackmore, an economist at EF
Consult.

 

Nine of 20 economists surveyed in the past week said the central bank would
cut rates by 50 basis points to 3.75% next week. Four expect just a
quarter-point trim. Three said the repo rate would be eased by 75 basis
points and three expect no change.

 

Nedbank economists were again the only forecasters to predict rates would be
cut by a full percentage point - as happened on April 14 and March 19.

 

In the 2008/09 recession, the SARB cut rates by a cumulative 700 basis
points through 2012 to stimulate the economy.

 

“We hold on to our call for another 125 basis points in cuts this year, a
75-100 basis point cut likely to be delivered again in the May meeting, with
the SARB likely to continue to favour frontloading cuts in anticipation of
more substantial economic pressure,” said Jeffrey Schultz, an economist at
BNP Paribas.

 

This quarter is expected to be the deepest contraction in South Africa’s
history at 36.2%, far gloomier than last month’s 23.0% prediction.

 

The latest poll median was for the economy to shrink 6.5% this year,
compared with last month’s 4.9% contraction forecast, but it was expected to
recover to 2.9% growth next year.

 

“A GDP contraction of above 10% year-on-year for 2020 is instead now quite
possible on a lengthy, severe lockdown ... as many corporates not only
temporarily cease activity, but do so permanently,” said Annabel Bishop,
chief economist at Investec.

 

Demand is so low in South Africa it is included in a number of
emerging-market countries where inflation was predicted to show signs of
deflationary trends.

 

“Strong deflation in fuel prices and collapsing demand are likely to
outweigh a weaker rand and its limited pass-through into CPI, averaging a
17-year low of 2.8% in 2020, breaching the lower bound of the 3-6% target
range,” Shultz said.

 

The survey’s median showed inflation was expected to average higher than
Shultz’ expectations at 3.5% this year.

 

Still, Shultz said core CPI - a gauge for long-term trends in inflation -
suggested the risk-sensitive priced items slipping into strong disinflation
territory, or deflation, should not be underestimated.

 

South African President Cyril Ramaphosa said on Wednesday he aimed to
further ease restrictions imposed to curb the new coronavirus, but places
with the most infections likely would remain into June on “alert level 4” of
a five-level system.

 

“54% of businesses surveyed by Statistics SA in the first two weeks of April
already said they will cease to exist before mid-July if they cannot
generate sufficient turnover,” said Bishop. “Most businesses will have lost
incomes needed to pay staff and other costs, resulting in retrenchments
rising substantially and firms shutting down permanently.”

 

(For other stories from the Reuters global economic poll)

 

 

 

 

Nigeria set to keep record 2020 budget to fight coronavirus despite earlier
cut

ABUJA (Reuters) - Nigeria looks set to maintain its record 2020 budget of
more than 10.5 trillion naira after a boost to healthcare spending to fight
the novel coronavirus outweighed an earlier cut to cushion the impact of an
oil price crash.

 

Finance Minister Zainab Ahmed said on Wednesday that the Cabinet approved a
revised budget of 10.52 trillion naira, lower than 10.59 trillion naira
approved in December by President Muhammadu Buhari. [nL8N28R4N4]

 

She said spending related to COVID-19 had not been previously captured.

 

Ahmed told reporters the budget revisions approved at Wednesday’s
ministerial meeting assumed an oil price of $25 per barrel along with output
of 1.94 million barrels per day and an exchange rate of 360 naira to $1, a
framework for its 2020-2022 spending plan.

 

The proposals require parliament’s approval before being signed into law by
the president.

 

With global oil prices plunging, the government had said this year’s budget
would shrink by about 15% and that it would switch to domestic naira
borrowings. However, Ahmed said on Wednesday that the reduction amounted to
just 71.5 billion naira to “adequately respond to the COVID-19
pandemic”.[nL8N2BB8YK][nL5N2CG64M]

 

The coronavirus outbreak and an oil price plunge have magnified headwinds in
the Nigerian economy, which relies on crude sales for government revenues,
triggering a historic decline in growth and large financing needs as well as
weakening the naira.

 

The government expects the economy, which recently recovered from a 2016
recession, to shrink by 3.4% this year.[nL8N2CN5AA]

 

Africa’s most populous country recorded its first confirmed coronavirus case
in late February. There have been 4,787 recorded cases and 158 deaths out of
200 million inhabitants.

 

Ahmed said the budget would be financed from local and foreign borrowings as
well as proceeds of privatisation to the tune of 5.36 trillion naira to plug
the deficit. She did not identify the assets to be sold.

 

International lenders include the International Monetary Fund (IMF), which
last month approved $3.4 billion in emergency financial assistance for
Nigeria, the World Bank, Islamic Development Bank and Afrexim Bank, Ahmed
said.[nL2N2CG1RE]

 

 

 

Uganda plans to open power transmission to private investment - regulator

KAMPALA (Reuters) - Uganda said on Thursday it is preparing to open up to
private investors the transmission business of its electricity sector that
officials say needs billions of dollars in fresh capital.

 

Growth in transmission infrastructure has lagged that in generation and
distribution which have attracted substantial investment, especially from
China, after the government partially privatised those two sectors in the
early 2000s.

 

An internal March 2020 report by state-run regulator Electricity Regulatory
Authority (ERA) seen by Reuters shows the country’s power transmission
sector needs at least $2.5 billion worth of fresh investment over the next
seven years.

 

The report said if the sector is not opened up to private investment there’s
a risk power plants under development may be completed and start producing
power before required transmission lines are in place.

 

“The government is now exploring the possibility of opening up electricity
transmission to private investment,” Julius Wandera, spokesman for the ERA
told Reuters.

 

Internal discussions were underway, he said, but did not give a time when
such discussions and necessary legal procedures would be concluded for
tenders to be issued.

 

Uganda’s installed electricity generation capacity is expected to jump 55.5%
to 1,825 megawatts (MW) when the new 600 megawatt plant being developed by
China’s Synohydro Corporation is commissioned later this year.

 

Another Chinese firm, PowerChina International Group Limited (PIGL), has
applied to Ugandan authorities for a licence to develop a $1.4 billion
hydropower plant in the country.

 

The Ayago power plant on the River Nile will have a capacity of 840
megawatts (MW) and, when fully developed, would be Uganda’s largest power
project. [nL8N2AB4DO]

 

Wandera said the new investments from the private sector would help
“strengthen and expand the grid”

 

“We have a lot of power in the pipeline and we need to make sure that by the
time these plants come on board there’s sufficient transmission
infrastructure to (get) this power to consumers.”

 

 

 

Egypt's unemployment falls in 1st quarter - agency

CAIRO (Reuters) - Egypt’s unemployment rate declined to 7.7% in the January
to March quarter from 8.1% a year earlier, the state statistics agency
CAPMAS said on Thursday.

 

But the rate had risen to 9.2% by the end of April - up from 7.5% in the
second quarter of 2019 - as the coronavirus pandemic hurt the economy, the
agency said in a report.

 

CAPMAS said it stopped collecting field data for the first quarter in
mid-March, before the government began taking coronavirus mitigation
measures that slowed the economy.

 

The government has closed down schools, cafes, air travel and hotels and put
an overnight curfew into place to limit the spread of the virus. It has also
banned gatherings in mosques and churches.

 

The workforce rose to 29.01 million during the quarter, of whom 16.45
million worked in the countryside, from 28.85 million in January to March
2019, CAPMAS said.

 

 

 

SAA administrators will not sell assets without involving govt -memorandum

JOHANNESBURG (Reuters) - Administrators at state-owned South African Airways
(SAA) will not sell assets for an interim period without involving the
government, a memorandum signed by one of the administrators and the public
enterprises ministry showed.

 

The memorandum, which was seen by Reuters, also said the administrators and
the ministry had agreed that the objective of SAA’s bankruptcy protection
process was to have a restructured SAA or a new company with no reliance on
public finances.

 

A public enterprises ministry spokesman confirmed the memorandum was an
authentic document.

 

The administrators were not immediately available for comment.

 

SAA’s administrators, appointed in December to try to rescue the firm, have
said previously that a wind-down or liquidation of the loss-making airline
were likely outcomes.

 

Senior officials at the public enterprises ministry have criticised the
administrators for not coming up with a “business rescue plan” for SAA
sooner and recently hired an aviation consultancy to advise them.

 

The “interim period” during which the administrators will not sell assets
without consulting the ministry lasts until June 30 at the latest, the
memorandum said.

 

SAA 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. It is running
low on cash after the coronavirus pandemic forced it to halt all commercial
passenger flights and the government told the administrators it would not
provide further funding.

 

($1 = 18.4902 rand)

 

 

 

South Africa's MTN sticks to medium-term forecast as earnings rise

JOHANNESBURG (Reuters) - MTN Group, South Africa’s largest mobile operator
by subscribers stuck to its medium-term forecast on Thursday, despite the
coronvirus pandemic, as it posted higher core earnings for the first
quarter.

 

However, the mobile operator cut its capital expenditure guidance for 2020
to between 21 billion rand ($1.13 billion) and 22 billion rand, from 28.3
billion rand when it reported 2019 results in March.

 

Its shares had weakened 0.95% to 49.14 rand at 1149 GMT.

 

MTN’s Chief Financial Officer Ralph Mupita said that while this financial
year would be challenging, the company would maintain its 3-5 years
medium-term guidance for now.

 

“We anticipate that disruptions in the supply chain and challenges in
rolling out coverage under lockdown rules, combined with our emphasis on
liquidity, will impact on our capex programme for the year,” MTN said.

 

MTN’s rival Vodacom Group on Monday postponed issuing its medium-term
forecasts due to the uncertain economic outlook as the coronavirus pandemic
unfolds.

 

MTN said its liquidity headroom, or cash and committed credit lines, at its
holding company stood at about 45.2 billion rand, comprising 19.3 billion
rand in cash and 25.8 billion rand in undrawn credit facilities.

 

MTN said the virus impact had shifted revenue trends from March, with data
revenue increasing as governments order people to stay at home, roaming
declining due to a drop in international travel and voice revenue coming
under pressure.

 

Fintech revenue has also come under pressure due to the restriction of
movement and discounted prices.

 

At its three largest markets, data traffic in MTN Nigeria was up 32% at the
end of April versus February, up 56% in South Africa and up 39% in Ghana.

 

Group service revenue for the three months ended March 31 rose by 11.1% and
earnings before interest, tax, depreciation and amortisation (EBITDA) jumped
by 15.6%, the mobile operator said.

 

Lockdown restrictions across the group’s markets were only implemented from
the last week of March.

 

The group recorded voice, data and fintech revenue growth of 6.3%, 26.4% and
26.0% respectively, while digital revenue has returned to growth, increasing
by 15.6% as consumers access more digital services at home, it said.

 

MTN Nigeria and MTN Ghana generated strong double-digit service revenue
growth, buoyed by data, voice and financial services.

 

In South Africa performance was largely negatively impacted by lower revenue
from the Cell C roaming agreement and loss of roaming agreement with rival
Telkom.

 

($1 = 18.5664 rand)

 

 

 

Nigeria LNG signs EPC contract for Train 7 - oil minister

LAGOS (Reuters) - Nigeria LNG has signed the engineering, procurement and
construction (EPC) contract for Train 7, its major gas expansion plan,
Nigeria’s oil minister said on Wednesday.

 

The long-awaited project is expected to boost Nigeria’s liquefied natural
gas (LNG) output by more than 30%.

 

Nigeria LNG had previously announced that it would award the EPC to a
consortium including Italy’s Saipem, Japan’s Chiyoda and Daewoo of South
Korea.

 

In a statement, Saipem said the overall value of the contract was above $4
billion, with its share at roughly $2.7 billion. 

 

“The construction phase of Train 7 can now commence in earnest,” Minister of
State for Petroleum Timipre Sylva said during an online event on Wednesday.

 

NLNG, a consortium between state-run Nigerian National Petroleum Corporation
(NNPC), Eni, Total and Royal Dutch Shell, signed its final investment
decision on the Train 7 processing unit late last year.

 

Nigeria is rich in oil and gas but has been struggling to boost its output
of both resources. Its LNG production has been steadily falling in recent
years.

 

The Train 7 expansion comes at a difficult time. LNG prices in Asia and gas
prices in Europe have hit record lows as the coronavirus pandemic worsened
already weak demand.

 

Some buyers have cancelled cargoes as a result, and there are currently more
than a dozen vessels carrying LNG searching for buyers, seven of them from
Nigeria, according to data intelligence firm Kpler.

 

Still, Sylva and NNPC chief Mele Kyari said the Train 7 is a five-year
project, giving

 

 

 

Sierra Leone mining revenue sinks as pandemic hits production and prices

FREETOWN (Reuters) - Sierra Leone is weathering a dramatic crunch in mining
revenue as COVID-19 restrictions hurt companies’ ability to export gold and
diamonds and access essential supplies.  

 

The slag from the Octea diamond mine sits above the diamond-rich Koidu city,
Sierra Leone March 22, 2019. REUTERS/Cooper Inveen

Revenue from mining dropped from $2.24 million in April 2019 to just $0.33
million in April 2020 - an 85% decline year on year, according to mines
ministry figures seen by Reuters.

 

Mining accounts for more than 80% of the West African country’s export
revenue, generating the lion’s share of its foreign currency reserves.  

 

“This means big trouble for Sierra Leone,” said mining minister Foday Rado
Yokie. “We’re praying that things start up again [in] the next few months
because this is completely debilitating to our economy.”

 

Gold and diamond exports have ground to a halt since March 21, when Sierra
Leone suspended all air traffic in an effort to slow the spread of the
coronavirus.

 

Shipments from Chinese-owned Dayu Mining, which operates the country’s
largest gold mine, have been on standby for more than three weeks, said
Mohammed Daffae, the company’s public relations manager.

 

Dayu Mining, which usually ships gold by air, initially attempted to export
by sea but temporarily misplaced three containers of gold concentrate.

 

It has since suspended production entirely as supply chain disruptions have
hindered access to spare parts and other supplies needed for maintenance,
rendering much of its digging equipment unusable.

 

“If things continue on like this, we’re going to have to start making some
really difficult decisions,” Daffae said.

 

Frustration is mounting in the community that hosts the mine, he added, with
more than 300 local staff furloughed and its community development projects
on hold.

 

COVID-19 and a steep decline in diamond prices have caused investors to shy
away from projects in Sierra Leone, said Ibrahim Sorie Kamara, co-founder of
Trustco Holdings’ diamond mining subsidiary Meya Mining.

 

Without access to significant in-country capital, he said, the threat to
such projects could prove existential.

 

“The worst thing that has happened with COVID-19 is how hard it’s hit the
West, which we rely on,” Kamara said. “You have to be able to look inwards
for relief when the greater market can’t offer support.”

 

 

 

 

 

South Africa's rand weaker as global economic worries weigh

JOHANNESBURG (Reuters) - South Africa’s rand weakened early on Thursday as
demand for emerging currencies continued to ebb due to growing concerns over
the impact of the coronavirus on the global economy.

 

At 0645 GMT the rand was 0.32% weaker at 18.5600 per dollar from an opening
level of 18.4980, extending losses from the previous session triggered by a
grim economic outlook given by the U.S. central bank.

 

Moves in risk currencies globally, including the rand, have been
sentiment-driven in recent sessions, with investors mostly staying on the
sidelines as they weigh the prospects of a quick economic recovery against
signs of a second wave of COVID-19 infections.

 

U.S. Federal Reserve chairman Jerome Powell on Wednesday gave a sobering
assessment of the U.S. economic outlook in a closely watched speech that
quickened a move to safe-haven assets.[nL1N2CV2I3]

 

The grim outlook highlights South Africa’s economic fragility, with its
dependence on trade with and investments from the United States, China and
the European Union.

 

President Cyril Ramaphosa’s announcement late on Wednesday that the country
would move to a phase 3 lockdown and further ease restrictions on the
economy by the end of the month failed to spur optimism overnight.
[nL8N2CV7QL]

 

“The longer the lockdown persists the weaker household and corporate
finances become on a macro level,” said Investec chief economist Annabel
Bishop in a note.

 

Weaker demand is likely to persist even after a full reopening of the
economy, she said, as consumers’ ability to spend will have been eroded.
“Demand will lag reopening the economy materially.”

 

Bonds reflected the sour risk mood, with the yield on the government issue
due in 2030 up 15 basis points to 9.585%.

 

 

 

WTO head steps down a year early as downturn looms

The head of the World Trade Organization has said he will step down a year
earlier than planned, at a crucial moment for the global economy.

 

Roberto Azevedo's surprise departure comes as the WTO faces the impact of
the coronavirus pandemic and criticism from US President Donald Trump.

 

Global trade has slumped and the world is braced for the worst downturn
since the Great Depression.

 

Meanwhile, Mr Trump has accused the body of treating America unfairly.

 

Mr Azevedo said his early departure as the WTO's director-general was a
"personal decision" that was in the best interests of the organisation.

 

"The WTO may not be perfect, but it is indispensable all the same. It is
what keeps us from a world where the law of the jungle prevails, at least as
far as trade is concerned."

 

The Trump administration has repeatedly accused the global trade watchdog of
having strayed from its purpose to liberalise and protect markets, and that
conditions around China's entry into the organisation in 2001 have led to
millions of American job losses.

 

Asked about Mr Azevedo's exit, Mr Trump, who had previously said the US
would leave the organisation if it didn't change, said he was "OK with it".

 

"We've been treated very badly... They treat China as a developing nation.
Therefore China gets a lot of the benefits that the US doesn't get," he
added.

 

Mr Azevedo's departure comes at an especially difficult time for the WTO,
with global trade expected to slump to historic lows as measures to slow the
spread of Covid-19 shut down economic activity around the world.

 

At the same time the Geneva-based body last year saw one of its main
functions, arbitrating trade disputes, hobbled by the US.

 

Washington's dispute with the WTO has seen it block the appointment of
judges to the organisation's top court, called the Appellate Body, since
December 2019. It means it has too few officials to rule on major trade
disputes between countries.

 

Along with the US, other WTO members, including Japan and the European
Union, have pushed for the WTO to make far-reaching reforms.

 

They argue that global trading rules need to reflect new realities, notably
the rise of China as a powerful economy, and address problems such as state
subsidies and forced technology transfers.--BBC

 

 

 

Coronavirus 'could cost global economy $8.8tn' says ADB

The coronavirus pandemic could cost the global economy between $5.8tn and
$8.8tn (£4.7tn-£7.1tn), according to Asian Development Bank (ADB).

 

That's more than double last month's prediction and equates to 6.4%-9.7% of
the world's economic output.

 

It comes as measures to slow the spread of Covid-19 continue to paralyse
economic activity around the world.

 

Globally authorities have taken aggressive action to cushion their economies
from the outbreak's impact.

 

"This new analysis presents a broad picture of the very significant
potential economic impact of Covid-19," the ADB's chief economist Yasuyuki
Sawada said.

 

"It also highlights the important role policy interventions can play to help
mitigate damage to economies," he added.

 

The ADB said the top end of the range was based on the assumption that curbs
to movement and businesses operating would last six months, while the bottom
end assumed the restrictions would remain in place for three months.

 

Central banks around the world have moved aggressively to cut interest rates
and roll out massive stimulus measures to help combat the impact of the
outbreak that has rocked financial markets and raised fears of a deep global
recession.

 

Yesterday new figures showed the huge impact of Covid-19 on the world's
biggest economy as the number of Americans seeking unemployment benefits
jumped by almost 3 million last week.

 

Nearly a quarter of the US workforce is now claiming some form of benefits.

 

Earlier this week the chairman of the US Federal Reserve warned that
America's economic recovery is likely to be slower than initially hoped.

 

Jerome Powell cautioned that the US faces a slow and painful economic
recovery without more government relief.

 

At the same time it was estimated that the UK government's efforts to combat
the coronavirus pandemic has risen to £123.2bn.

 

The Office for Budget Responsibility said it now expects annual borrowing to
equal 15.2% of the UK economy, with increased cost of the government's
furlough scheme being the main cause for the increase.--BBC

 

 

 

One in four US workers claiming jobless benefits

The number of Americans seeking unemployment benefits jumped by almost 3
million last week as virus shutdowns continue to weigh on the US economy.

 

The filings brought the total number of new jobless claims since the middle
of March to more than 36 million.

 

That amounts to nearly a quarter of the American workforce.

 

The weekly figures have been falling since the end of March but remain
massive by historic standards, eclipsing the prior record of 700,000.

 

"Today's unemployment claims continue their epic ascent on a cumulative
weekly basis; not since the Great Depression has the US job market been in
such a sorry state," said Richard Flynn, UK managing director at Charles
Schwab.

 

The head of America's central bank warned this week that the economic
recovery is likely to be slower than initially hoped.

 

In April, employers cut more than 20 million jobs, sending the unemployment
rate to 14.7% and erasing nearly a decade of job gains. While the losses
have fallen hardest on minority and low-income households, they have touched
every part of the economy.

 

However, economists said they believe hiring will start to pick up as more
states ease restrictions on activity.

 

The increase in the number of people receiving unemployment benefits in the
week ended 9 May was "relatively modest", noted Paul Ashworth, chief US
economist at Capital Economics.

 

"With most states only beginning to ease their lockdowns over the last 10
days, we expect a much bigger swing in hiring versus firing over the next
couple of weeks, which suggests the unemployment rate will begin to drop
back," he said.

 

"Being laid off hit me out of the blue

Nickolas Ray, 30, IT consultant in Atlanta, Georgia:

This is the first time I've been unemployed since I was 14. Being laid off
kind of hit me out of the blue - in my company we thought we were all safe.

 

Applying for unemployment has been frustrating. You have to fax your notice
in to the Department of Labour - but I don't have a fax machine. And then
the receiving fax machine also needs to have paper - with government offices
mostly closed, it took me five times to send something through.

 

I'm very lucky - I've always saved money, since I started working as a
babysitter as a teenager, so I've socked away enough money to be OK for now.
But if I catch Covid-19 and go to hospital, that whole plan would be
disrupted. My biggest concern is how things are going to work if I have no
health insurance anymore.

 

I'm job hunting right now - everyone's very excited to talk, but
unfortunately no one knows what's going to happen so there aren't any firm
job openings.--BBC

 

 

 

Avanti introduces social distancing measures on its trains

Rail passengers have been urged not to turn up at stations without an
advance ticket and to wear face coverings when they travel on the West Coast
Mainline.

 

Avanti West Coast made the announcement as part of new social distancing on
its services between Glasgow, Manchester, Birmingham and Leeds.

 

Passengers might be refused travel if the guidelines are not followed.

 

The measures take effect on Monday and Avanti says it may not allow
carriages to be more than a quarter full.

 

"We're appealing to our valued customers to help us and other passengers by
only travelling with a reservation," said Avanti West Coast's managing
director Phil Whittingham.

 

"If everyone does this, we'll be able to keep social distancing in place on
board, both for our customers and our people.

 

"If customers do turn up without a reservation, we'll do our best to help
but we can't guarantee they'll be able to take the train they want."

 

Because of this, the train operator is asking passengers to book in advance
on the Avanti mobile app where possible, to avoid using facilities at the
station or handling cash.

 

Coronavirus: Rail services to be increased as travel restrictions ease

Coronavirus: Commuters told to 'prepare to queue' in new guidance

People should also check before they travel, in case the time of their train
has changed.

 

Other measures being introduced by Avanti include face masks for staff and
waiting rooms and lounges will be shut.

 

There will also be enhanced cleaning procedures onboard trains and at
stations, especially focused on cleaning door buttons, grab handles, tables
and all touch points, as well as equipment like phones, chip and pin
machines, self-service ticket machines and point of sale systems.

 

Shops onboard Voyager services, which travel between London and destinations
like Blackpool, Shrewsbury, Birmingham, Edinburgh and North Wales, will be
closed and no food and drink will be available.

 

The shops on Pendolino services will still be open, but re-usable coffee
cups will not be accepted.

 

Increased train services

A new timetable is being brought in from Monday, in line with updated travel
advice from the government that will see train services increase to about
70% of the normal timetable.

 

During the coronavirus pandemic only half of normal rail services have been
running.

 

The easing of travel restrictions is likely to be done gradually - the
government has suggested that working hours might be staggered to limit
passenger numbers.

 

People in England who are allowed to return to work have been asked not to
use public transport if possible.

 

If maintained, the two-metre social distancing measure would cut capacity on
trains by up to 90%.

 

A recent Transport Focus survey suggested more than 60% of UK passengers
would not feel comfortable using public transport unless social distancing
was in place.

 

It found 51% would not be happy unless passengers were required to wear
masks.--BBC

 

 

 

 

Amazon to make face shields and sell at cost

Amazon says it will produce hundreds of thousands of face shields for medics
and sell them at cost price in the US.

 

The internet giant said engineers from its drone and hardware divisions had
been tasked with developing the product.

 

At first, it will sell them to healthcare professionals, before making them
available to all Amazon customers.

 

Amazon is not the first major US firm to use its resources to produce
personal protective equipment (PPE).

 

Apple began sending face shields to hospitals in March. Space X, HP and Ford
also used their manufacturing resources to make and donate face shields and
other types of protective equipment.

 

Amazon said that it had donated 10,000 face shields in the US and was "on
track" to deliver a further 20,000.

 

But its plan to sell them at low prices on its website will make them
available to the general public, something other firms have not done.

 

A look on Amazon's marketplace on Thursday showed face shields sold by
independent sellers were priced between $12 (£9.80) and $35.

 

Once Amazon makes its mask available to all its customers, it could drive
the price down significantly.

 

The online retail giant has faced criticism for undercutting the prices of
independent retailers on its sites, but anti-trust experts say its efforts
to help in this crisis will likely offset those concerns.

 

"People who are concerned about Amazon's predatory behaviour might be
concert but more people will be happy Amazon is making sure these are lower
cost at a time of crisis," said Michael Kades, director of markets and
competition at the Washington Center for Equitable Growth.

 

Amazon's design

The company said it based its designs on a face shield developed by a
community of 3D printing enthusiasts in Washington.

 

After making some changes, its designs had been approved by the US National
Institutes of Health (NIH).

 

Engineers from Amazon's drone division specialising in hardware design
created a new design within a week that improved the quality of the
materials to allow them to be reusable and added an enhanced snap feature to
keep the shield in-place to make them safer.

 

The engineers also amended the geometry of the shields to reduce sharp edges
that could snag clothing or hair, thinned the forehead band to reduce
pressure on a person's forehead, and drastically improved print time making
them quicker to manufacture.

 

Amazon's Brad Porter wrote in a blog post: "Because of the design
innovations and the capabilities of our supply chain, we are confident we
will be able to list them at a significantly lower price - almost a third of
the cost - than all other reusable face shields currently available to
frontline workers."

 

The internet giant is also making its designs - known as the origami design
and brimmed design - open source so that the shields could be 3D printed by
anyone.

 

Both the US Food and Drug Administration (FDA) and the British Standards
Institution (BSI) have warned that homemade and 3D printed face shields do
not always protect healthcare workers' faces from exposure to the
coronavirus.

 

But the global shortage of PPE has led to an increasing number of frontline
medical workers crafting homemade equipment.

 

Amazon did not say whether it would provide the masks to workers at its
warehouse who have reported a lack of safety equipment during the
coronavirus pandemic.--BBC

 

 

 

 

 


 

 


 

INVESTORS DIARY 2020

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


Bindura Nickel Corporation

 

 

 


Padenga Holdings

 

 

 


Delta Corporation

 

 

 


Meikles Limited

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


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

 


 

 


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