Major International Business Headlines Brief::: 28 May 2020

Thu May 28 05:29:17 CAT 2020

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Major International Business Headlines Brief::: 28 May 2020

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

ü  Trump threatens to shut down social media companies

ü  EgyptAir to pay 75% of flight crew salaries in pounds temporarily

ü  Carlyle's Africa dealmakers leave to start their own buyout firm

ü  S.Africa's Woolworths scraps dividend, reviews Australasian real estate assets

ü  Namibia's economy seen contracting by 6.6% in 2020

ü  Kenya central bank leaves rates unchanged, says past measures are being helpful

ü  South African Airways can be rescued with requisite funding - administrators

ü  Trump to 'sign executive order about social media'

ü  Vending machine mum's perfect money lesson

ü  Meng Wanzhou: Huawei executive suffers US extradition blow

ü  Boeing job cuts start to hit nearly 13,000 workers

ü  Von der Leyen calls €750bn recovery fund 'Europe's moment'

 <mailto:info at bulls.co.zw> 

Trump threatens to shut down social media companies

President Trump has taken the extraordinary step of threatening to close down social media platforms.

The threat came after Twitter added fact-check links to his tweets for the first time.

The battle between the president and the social-media companies has been brewing for a time.

But now it feels as though an all-out war is looming between Donald Trump and Twitter ahead of the US presidential election, in November.

Last night, a couple of Trump tweets raging about "fraudulent" postal ballots in US elections featured - for some users but not all - a strapline linking to what Twitter called "facts about mail-in ballots."

This then led to a page debunking the president's claims but featuring articles from two organisations he regards as his sworn enemies, CNN and the Washington Post.

It took him no time to fight back, tweeting: "Twitter is completely stifling free speech, and I, as President, will not allow it to happen."

Then, on Wednesday morning, the president woke up and raised the temperature even further with this two-part tweet:

"Republicans feel that social-media platforms totally silence conservatives voices.

"We will strongly regulate, or close them down, before we can ever allow this to happen.

"We saw what they attempted to do, and failed, in 2016.

"We can't let a more sophisticated version of that... happen again - just like we can't let largescale mail-in ballots take root in our country.

"It would be a free-for-all on cheating, forgery and the theft of ballots.

"Whoever cheated the most would win.

"Likewise, social media.

"Clean up your act, now."

Conspiracy theories

So does he mean any of this?

It is very hard to see Congress passing laws to strongly regulate or close down social-media platforms.

The president refers to free speech.

But as a private company, Twitter is free to police its platform as it sees fit.

Nevertheless, for Twitter's chief executive, Jack Dorsey, this is undoubtedly just the start of a clash that will continue right up until the November election.

In recent days, he has been under huge pressure to do something about President Trump's tweets.

Now, he has acted but not in a way that might have been expected.

There has been a furore over the way the president has used Twitter seemingly to endorse a baseless conspiracy theory about one of his critics, the TV presenter and former Republican Congressman Joe Scarborough.

President Trump has repeatedly suggested the death in an accident, in 2001, of one of the Congressman's aides, Lori Klausutis, is a "cold case" that deserves to be reopened by the police.

And that led the widower of Ms Klausutis to write to Jack Dorsey, pleading with him to remove the president's tweets because of the pain they were causing her family.

So far, Mr Dorsey has refused, apparently convinced the president's Twitter feed has protected status because it is part of the public record.

Nor was there any attempt to correct the inaccuracies in the tweets.

Adding a fact-check to the tweets about mail-in ballots appears to fit in with a new Twitter policy on protecting elections.

It warns users they may not post or share content that may interfere in elections or might suppress participation.

Last night, another baseless conspiracy theory - this time about a made-up crime involving Donald Trump in 2000 - was posted by an account called TheTweetofGod.

It too has neither been removed nor fact-checked, perhaps because Twitter realises it would be accused of inconsistency.

The president's Facebook page also features his diatribes about mail-in ballots and Joe Scarborough, with no sign of any fact-checking or limits on sharing such material.

But that's not to suggest it will escape his ire.

Last week, the president tweeted: "The radical left is in total command and control of Facebook, Instagram, Twitter and Google."

And he intended to "remedy this illegal situation".

There have since been reports the White House might set up a special commission to investigate the claim.

Whatever the social-media companies do about their most famous and controversial user is bound to cause anger on one side or another.

They can look forward to a long hot summer.--BBC

 <mailto:info at bulls.co.zw> 

EgyptAir to pay 75% of flight crew salaries in pounds temporarily

CAIRO (Reuters) - EgyptAir will pay 75% of its flying crews salaries in Egyptian pound and the remaining 25% in U.S. dollar “temporarily” due to the impact of coronavirus crisis, the state news agency MENA reported on Wednesday.

Roshdy Zakaria, chairman of Egypt’s national carrier, told employees in a message on Tuesday evening that “the decision came on a temporary basis until conditions improve and for the company to be able to pay its dues and loans... in foreign currency,” the agency added.

EgyptAir has been paying its pilots and air hosts in U.S. dollars. The report did not mention how much their monthly wage bill totals.

Earlier this month, Egyptian government said it would lend EgyptAir 2 billion Egyptian pounds ($126.66 million) due to the impact of the coronavirus on its operations.

A member of the Star Alliance led by Germany’s Lufthansa, EgyptAir halted regular international flights on March 19 when the government closed the country’s airports to combat the spread of the virus.

($1 = 15.7900 Egyptian pounds)

Carlyle's Africa dealmakers leave to start their own buyout firm

(Reuters) - Four dealmakers responsible for Carlyle Group Inc’s Sub-Saharan Africa Fund are leaving to launch their own firm, Carlyle said on Wednesday, in the latest private equity retreat from the continent.

Carlyle will remain active in Africa with its other funds, including Carlyle International Energy Partners.

But the Washington, D.C.-based firm said it would no longer pursue an Africa-dedicated buyout fund to succeed its $700 million Carlyle Sub-Saharan Africa Fund, which it raised in 2014.

This makes Carlyle the latest private equity giant to reduce its Africa exposure and underscores the challenges of dealmaking for Western private equity firms used to large leveraged buyouts of mature companies that can be saddled with debt.

Deals in the region tend to be smaller, the companies younger and thirsty for capital, and opportunities to cash out fewer, often fraught with political and economic risk.

Carlyle said Genevieve Sangudi, Eric Kump, Idris Mohammed and Bruce Steen were leaving to set up a new venture dubbed Alterra Capital.

Carlyle said it will have no stake in Alterra, but will provide deal referrals, advice and co-investment.

Carlyle’s deals in Africa have included a $147 million bet on Nigeria’s Diamond’s Bank, which soured after a shrinking economy, a plunging currency and an oil price slump fueled a spate of defaults. Access Bank, another Nigerian bank, took over Diamond Bank last year.

Carlyle also bought into J&J Transport and Traxys between 2013 and 2014. J&J is an African transport firm with mining customers, while Traxys trades commodities in Africa and provides logistics.

In 2017, peer KKR & Co Inc disbanded its Africa deals team and sold off its controlling stake in an Ethiopian rose farm. That same year, Blackstone Group Inc sold its stake in Black Rhino Group, an African infrastructure development firm, back to its management.

S.Africa's Woolworths scraps dividend, reviews Australasian real estate assets

JOHANNESBURG (Reuters) - South Africa’s Woolworths on Wednesday scrapped its 2020 dividend and said it was reviewing its Australasian property assets as the retailer battles tough conditions created by the COVID-19 pandemic.

Non-food retailers globally have been heavily impacted by lockdowns and face a grim future in the near term as consumers cut discretionary spending to cope with the economic fallout of the pandemic.

Woolworths said the pandemic’s toll on its business had deepened, with turnover and concession sales dropping 18.5% in the nine weeks to April 26, sending its shares down 4.6%.

It said the health crisis had affected performance in all its markets - South Africa, Australia and New Zealand.

Woolworths has hired UBS Australia to review its Australasian real estate portfolio.

It said talks were underway with Australasian landlords on “accelerated restructure” and reduction in floor space for its struggling fashion brand David Jones.

The retailer, which warned in April that full-year profits would fall by more than 20%, said the tough conditions were likely to continue for the “foreseeable future”.

“The board will ... not declare a final FY20 dividend and will consider dividends thereafter in the context of the conditions prevailing at the time,” the company said.

It reiterated that it was working to protect the group’s financial position, improve its liquidity and capital structure and re-position the business towards long-term shareholder value.

The firm was also talking with its lenders about the potential impact of the coronavirus-related slowdown on its debt covenants, and had secured or was seeking the suspension of covenant testing from lenders to the Australasian businesses.

The group could extend up to 100 million Australian dollars ($66.4 million) in funding support, in the form of a loan, to those units if successful, it said.

($1 = 1.5065 Australian dollars)

Namibia's economy seen contracting by 6.6% in 2020

WINDHOEK (Reuters) - Namibia’s economy is seen contracting by 6.6% in 2020 and by 1.1% next year, as the Covid-19 pandemic wreaks economies globally, finance minister Ipumbu Shiimi said on Wednesday.

The budget deficit was likely to reach 12.5% of gross domestic product (GDP) in the 2020/21 fiscal year, which began in April, from an estimate of 4.7% of GDP in 2019/20, Shiimi said as he presented the 2020 budget to parliament.

Kenya central bank leaves rates unchanged, says past measures are being helpful

NAIROBI (Reuters) - Kenya’s central bank kept its benchmark lending rate at 7.0% on Wednesday, as expected, judging that its current accommodative stance remained appropriate, the Monetary Policy Committee said in a statement.

The committee has cut its main interest rate by a total of 125 basis points over two meetings to support the economy since its first case of the new coronavirus was reported in mid-March.

“The policy measures adopted in March and April were having the intended effect on the economy, and are still being transmitted,” the committee said in a statement.

Banks remain stable, it said, and fiscal stimulus introduced by the government would kick in strongly in the financial year starting in July.

At its March meeting the committee reduced the amount of cash that lenders are required to set aside, unlocking 35.2 billion shillings for lending.

“To date, 82.6% of the funds (or 29.1 billion) has been channeled to support lending, especially to the tourism, transport and communication, real estate, trade and agriculture sectors,” the committee said.

Bank loans worth 273 billion shillings, 9.5% of the total, have also been restructured due to coronavirus-related hardships.

A Reuters poll of nine economists had forecast no change in rates, but Razia Khan, head of research for Africa at Standard Chartered in London, said recent pressure on the shilling might have forced the bank to retain rates.

“Given the downside risks to the economy this year, we still expect to see a CBR (central bank rate) at 5.0% by the year end,” she said.

The committee said there were adequate foreign exchange reserves to cushion the country against short-term shocks, and it said fresh produce exports, a key source of hard currency, were starting to normalize.

South African Airways can be rescued with requisite funding - administrators

JOHANNESBURG (Reuters) - There is a still a “reasonable prospect” South African Airways can be rescued, if it gets the requisite funding, the struggling state-owned airline’s administrators said in a letter to affected parties on Wednesday.

The administrators added in the letter seen by Reuters that discussions were being held with the government to possibly restructure the airline.

Trump to 'sign executive order about social media'

US President Donald Trump will sign an executive order on social media firms on Thursday, the White House has said.

It comes after he threatened to shut down social media platforms he accused of stifling conservative voices.

The latest dispute flared on Tuesday after Twitter added fact-check links to his tweets for the first time.

The order's details have not been shared and it is unclear what regulatory steps the president can take without new laws passed by Congress.

The White House officials gave no further information when questioned by reporters who were travelling with Mr Trump on Air Force One on Wednesday.

Before leaving Washington for Florida to watch a space launch that was postponed due to bad weather, Mr Trump again accused Twitter and other social media of bias, without offering evidence.

Mr Trump also continued his criticism of social media platforms on Twitter, ending a tweet with: "Now they are going absolutely CRAZY. Stay Tuned!!!"

The long-running dispute between Mr Trump and social media companies flared up again on Tuesday when one of his posts was given a fact-check label by Twitter for the first time.

He had tweeted, without providing evidence: "There is NO WAY (ZERO!) that Mail-In Ballots will be anything less than substantially fraudulent."

Twitter added a warning label to the post and linked to a page that described the claims as "unsubstantiated".

On Wednesday Mr Trump threatened to "strongly regulate" or even "close down" social media platforms.

He tweeted to his more than 80 million followers that Republicans felt the platforms "totally silence conservatives" and that he would not allow this to happen. In an earlier tweet, he said that Twitter was "completely stifling free speech".

Mr Trump wrote a similar post on Facebook post about mail-in ballots on Tuesday, and no such warnings were applied.

In an interview with Fox News on Wednesday, Facebook's chief executive Mark Zuckerberg said censoring a social media platform would not be the "right reflex" for a government concerned about censorship. Fox said it would play its full interview with Mr Zuckerberg on Thursday.

Twitter has tightened its policies in recent years as it faced criticism that its hands-off approach was helping fake accounts and misinformation to thrive.

Some of America's biggest technology companies have also been accused of anti-competitive practices and violating their user's privacy. Apple, Google, Facebook and Amazon face antitrust probes by federal and state authorities and a US congressional panel.

Shares in both Twitter and Facebook fell in Wednesday's trading session in New York.

Facebook, Twitter and Google did not immediately reply to requests from the BBC for comment.--BBC

Vending machine mum's perfect money lesson

With four children at home, a list of chores, and a secondhand vending machine - one mum may have discovered the perfect lockdown life lesson.

Northumberland nurse Sarah Balsdon, 29, was getting so fed up with her children's "constant arguments" over sugary snacks, she and husband Kyle devised a plan.

She spent £100 on the vending machine being thrown out by a shop that had closed down, and filled it with the family's favourite sweets and drinks.

Then she told her four children - Shannon, aged nine, Lucy, eight, Jack, five, and Elijah, two - that they would be paid to do their schoolwork and help with chores around the house.

'I get pop'

While healthy snacks were free, they could spend their housework income in the vending machine. Their initial reluctance disappeared as the treats began to topple down.

"At first I didn't like it," Shannon told BBC Breakfast. "But now I do because I get pop."

Sarah may have landed on a perfect pocket money management course.

By working for their cash, saving it, then spending it on their favourite snack, the youngsters have been taught a vital lesson in delayed gratification.

Budgeting experts say such a policy would suit many adults too, to avoid getting caught up in a buy now, pay later culture.

With Sarah and Kyle also doing chores for their snacks, the family have thrown a bit of competition into the mix as well.

Extra time at home offers the perfect opportunity for others to join the Balsdon family in learning more about money, according to Will Carmichael, chief executive of pocket money app RoosterMoney.

"Creating a system to help kids earn their money and having tangible visual goals for them to aim at is a brilliant way to help kids focus on a target and learn the value of money," he said.

"Varying the sizes of the prizes, a brand new Lego set for example, would be a great way to really get them thinking about what they want and what they value."

For those parents who no longer carry cash - get some coins, just so children have the opportunity to interact with them.

Source: Money and Pensions Service

His company's research on lockdown pocket money suggests children already have some healthy financial habits.

Some 40% of pocket money is saved, its survey of 24,000 children suggested. On average, children aged four to 14 receive £4.60 a week.

Many have to work for their money, with 70% of chores involving cleaning around the house, topped by cleaning a bedroom, making the bed, and doing the laundry.

When they come to spend it, the most goes on digital games platform Roblox, followed by computer game Fortnite, then books and magazines, Lego, and sweets and chocolates.

Research by the Money and Pensions Service found that many money habits are formed by the age of seven.

Parents carry the biggest influence. Pocket money is one, but not the only, tool they can use in money lessons, especially with most children at home at the moment, according to one financial commentator.

Sarah Coles, from investment platform Hargreaves Lansdown, said: "There are a plenty of ways of introducing money ideas to the kids that can keep them entertained at the same time - and don't require you to have endless reserves of time, patience and creativity."

Some of her ideas include:

Encouraging children to run an imaginary restaurant, shop, or cinema

Watching films or TV programmes with money as the central subject

Asking grandparents to reminisce about how much money they had during different times in their lives

For those who can afford it, offering to double any money they save can also help them learn about value or saving towards a goal.

In the end, that may prove to be more practical than trying to buy a vending machine.--BBC

Meng Wanzhou: Huawei executive suffers US extradition blow

A Canadian court has ruled that the case of senior Huawei executive Meng Wanzhou, who is fighting extradition to the United States, can go forward.

A judge found that the case meets the threshold of double criminality - meaning the charges would be crimes in both the US and Canada.

The US wants Ms Meng to stand trial on charges linked to the alleged violation of US sanctions against Iran.

Her case has created a rift between China and Canada.

Her lead defence lawyer, Richard Peck, has argued in court that Canada is effectively being asked "to enforce US sanctions".

But Associate Chief Justice Heather Holmes ruled Wednesday in British Columbia's Supreme Court in Vancouver that the crimes she is charged with in the US would also have been crimes in Canada in 2018.

The approach taken by Ms Meng's lawyers, if upheld, "would seriously limit Canada's ability to fulfil its international obligations in the extradition context for fraud and other economic crimes," she added.

The US has charged Ms Meng with fraud over a Huawei-owned company's alleged dealings with Iran.

Relations between the US and China have already been strained by disputes over trade and the future of Hong Kong.

Washington has been lobbying its allies - including the UK - to not use Huawei's 5G technology services in critical communications infrastructure, alleging it could be a security threat.

Following Wednesday's ruling, Reid Weingarten, a US lawyer for Ms Meng, said his client should "not be a pawn or a hostage" in the China-US relationship.

"Today's ruling in Canada is only the opening salvo in a very long process ... we are confident that ultimately justice will be done," he added.

Meanwhile, a spokesman for Huawei, Benjamin Howes, said the company was "disappointed" in the ruling.

"We have repeatedly expressed confidence in Ms Meng's innocence. Huawei continues to stand with Ms Meng in her pursuit for justice and freedom."

China has repeatedly called for Ms Meng to be released, and on Tuesday Beijing warned the case would cause "continuous harm to China-Canada relations".

Following the ruling, a Chinese embassy spokesperson in Canada told CBC news: "The purpose of the United States is to bring down Huawei and other Chinese high-tech companies, and Canada has been acting in the process as an accomplice of the United States. The whole case is entirely a grave political incident."

China is believed to have arrested two Canadians - Michael Kovrig, a former diplomat, and Michael Spavor, a businessman - in retaliation for Ms Meng's arrest. Canada's Prime Minister Justin Trudeau calls their continued detention "arbitrary".

"Canada has an independent judicial system that functions without interference or override by politicians," Mr Trudeau said last week.

"China doesn't work quite the same way and doesn't seem to understand that."

Canadians held for a year by China are 'resilient'

On Wednesday, Mr Kovrig's former employer called on China to release him.

"Ruling was not about our colleague Michael Kovrig & ought have no bearing on his case," tweeted Robert Malley, president and CEO of International Crisis Group.

"He shouldn't be held as a pawn."

'Case gives US leverage in 5G row'

Analysis by Zoe Thomas, Technology Reporter, BBC News

This case was just the first step in Ms Meng's fight against US extradition. Still, it is a blow to Huawei and the Chinese government. A ruling in Ms Meng's favour would have helped China portray the US as a bully, and given Huawei a leg up as it pushes for a larger role in global 5G networks.

The US has not shied away from throwing its weight around to prevent the Chinese telecoms giant from being involved in other countries' creations of the high-speed internet networks.

Even though this case isn't directly about 5G, it does give the US leverage to paint Huawei's chief financial officer as a bad actor.

It's not all bad news for Ms Meng or Huawei. Her case now moves to another round of hearings - this time about whether the Canadian police who arrested her violated her rights.

If she is successful in that case she could be sent home, perhaps a little later than hoped but with just as much freedom.

What is the background?

Ms Meng is the chief financial officer of Huawei and the daughter of its founder Ren Zhengfei.

What would happen if the UK ditched Huawei?

Huawei calls US rules 'arbitrary and pernicious'

She has been out on bail but under house arrest in Vancouver, where she owns property, since shortly after she was detained in December 2018.

Not long after her arrest, China detained two Canadian nationals - Mr Kovrig and Mr Spavor - and has accused the pair of espionage.

The move by Beijing is widely viewed as "hostage diplomacy" - a tactic to put pressure on Canada to release the Huawei executive.

"The Government of Canada's top priority is and remains securing the release of Michael Kovrig and Michael Spavor, who have been arbitrarily detained for over 500 days. We will continue to advocate for their immediate release," said Foreign Affairs Minister François-Philippe Champagne after Wednesday's ruling.

Ms Meng's arrest also led to a trade row between Canada and China.

A second hearing, focusing on allegations of abuse of process and whether Canadian officials followed the law while arresting Ms Meng, is currently scheduled for next month.

Even if a Canadian court eventually recommends extradition, it is the federal justice minister who makes the ultimate decision.

It is highly likely the overall process could be lengthy. Ms Meng has avenues to appeal throughout the process and some extradition cases have dragged on for years.--BBC

Boeing job cuts start to hit nearly 13,000 workers

Nearly 13,000 Boeing workers, mostly in the US, are set to lose their jobs in the coming weeks, as cuts at the American aerospace giant take effect.

More layoffs are expected, some of which may affect the UK.

The reductions had been expected since Boeing revealed plans last month to slash its global workforce by 10% - or roughly 16,000 jobs.

"I wish there were some other way," chief executive Dave Calhoun wrote in an email to staff.

Boeing has been reeling from a drop in demand for aircraft, as travel plunges amid the pandemic and worsens the pressures on the company, which was already in crisis following two fatal crashes of its 737 Max plane and the global grounding of the plane last year.

In April, customers cancelled more than 100 orders for the 737 and the firm said it had received no new reservations.

Boeing on Wednesday said it had resumed making 737 Max planes at its Renton, Washington factory at a "low rate" and noted that some airlines were reporting signs of recovery.

"But these signs of eventual recovery do not mean the global health and economic crisis is over," Mr Calhoun said. "Our industry will come back but it will take some years to return to what it was just two months ago."

Even before the pandemic, the crisis at Boeing, which forced it to halt 737 manufacturing in January, was expected to be a major drag on the US economy. Suppliers such as General Electric and Spirit AeroSystems Holdings have also announced major job cuts.

The job losses confirmed on Wednesday include 6,670 involuntary cuts and 5,520 voluntary redundancies in the US.

The firm, which has about 18,000 international staff including more than 2,500 in the UK, said it also announced 400 reductions its factory in Winnipeg, Canada and another 230 near Melbourne, Australia. Both plants produce parts for the firm's commercial aviation business.

Boeing said "several thousand remaining layoffs will come in much smaller additional groups over the next few months."

"This may involve a reduction in numbers in some parts of Boeing's UK workforce," the company told the BBC. "Our team is our priority and we will actively support colleagues into new roles wherever we can. We are committed to the UK."--BBC

Von der Leyen calls €750bn recovery fund 'Europe's moment'

Ursula von der Leyen's proposals will have to please "frugal" states as well as the Southern European countries that need the money most

A recovery fund worth €750bn (£670bn; $825bn) has been proposed by the EU's executive Commission to help the EU tackle an "unprecedented crisis".

The package will be made up of grants and loans for every EU member state.

Economies across the 27-nation EU bloc have been ravaged by the Covid-19 pandemic, but several southern states had big debts even before the crisis.

Commission President Ursula von der Leyen said "this is Europe's moment".

"Things we take for granted are being questioned. None of that can be fixed by any single country alone," she told the European Parliament. "This is about all of us and it is way bigger than any of us."

The Commission has dubbed the plan Next Generation EU. Without the backing of all 27 EU member states, it cannot go ahead. But Germany and France have backed plans for the money to be raised on the capital markets.

Economy Commissioner Paolo Gentiloni said the fund was a "European turning point" that would be added to instruments that had already been launched.

Spain and Italy have seen the highest number of deaths in the EU during the coronavirus crisis and, in the wake of the financial crisis, are particularly keen on grants rather than loans being added to their public debt.

Several "frugal" states object to taking on debt for other countries. Austria, the Netherlands, Denmark and Sweden reject the idea of cash handouts to relatively poorer countries.

Mrs von der Leyen said the €750bn fund would be made up of €500bn in grants and €250bn in loans. It would be raised by lifting the EU's resources ceiling to 2% of EU gross national income and would be reliant on the EU's strong credit rating.

When added to a proposed €1.1 trillion budget for 2021-27, the €750bn recovery fund would bring to €1.85tn the amount that the Commission says will "kick-start our economy and ensure Europe bounces forward".

When added to an earlier €540bn initial rescue package, that would amount to a total of €2.4tn, said the Commission president.

The EU's much-cherished four freedoms had to be fully restored, she added, those of freedom of people, goods, services and capital.

She said "this is an urgent and exceptional need for an urgent and exceptional crisis".

The money raised on the capital markets would be paid back over 30 years between 2028 and 2058, but not later.

The Commission says it could be paid back in several ways:

A carbon tax based on the Emissions Trading Scheme

A digital tax

A tax on non-recycled plastics

Commissioner Maros Sefcovic says recovery has to be based on green and digital policies as well as "increased resilience" and lessons learned from the Covid-19 crisis.

The budget will be "equipped with increased firepower to be able to generate massive investment at the scale and speed needed to kick-start all our economies", he says.

The European Central Bank has played a key role in helping eurozone countries emerge from the debt crisis with its stimulus programme of bond-buying. But concerns about the ECB programme's future were raised earlier this month when Germany's top court ruled that it violated the German constitution.

The UK has left the EU so is unlikely to have any involvement in the fund as it stands.

Will the plan work?

Ursula von der Leyen's pitch was just the start of what will take a huge effort to get all member states on side, especially as the Commission wants this agreed at the next leaders' summit in three weeks' time.

But I get a clear sense there's not yet an overall majority in favour.

Southern Mediterranean countries have all indicated initial support. One Italian diplomat told me, if agreed, Italy may be eligible for grants of up to 5% of the country's GDP.

Many, including Poland, Hungary, Bulgaria and Lithuania, won't commit either way until they've read the small print. "With these things, the devil is often in the detail," one Bulgarian official told me.

An Austrian diplomat was encouraged €250bn would be raised through loans but suggested €500bn in grants was a "non-starter" at this point.

The feeling here is it will need a face-to-face meeting between leaders to forge a compromise, and that's not likely to happen until internal borders are reopened over the summer.

What do EU leaders say?

French President Emmanuel Macron spoke of an "essential day for Europe" while Italian Prime Minister Giuseppe Conte said: "Now let's speed up the negotiation and make the resources available soon."

Spanish Prime Minister Pedro Sanchez said the plan included "many of our demands" and was "a starting point for negotiations". Greece said it was a "bold proposal" and it was now up to member states to "rise to the occasion".

There was a more cautious reaction from some of the so-called "frugal" states.

Danish Foreign Minister Jeppe Kofod said the current budget plan was "simply too high". Dutch Prime Minister Mark Rutte had already warned on Tuesday that a recovery fund "should consist of loans, without any mutualisation of debts".

How green is the recovery fund?

Plans for the long-heralded Green Recovery Fund have been given a partial welcome by environment groups, even though exact details are yet to be revealed.

Campaigners have argued that it is vital for the EU to spend its post Covid-19 stimulus on projects that will also help tackle the climate crisis.

They say the package should drive investment into projects needed to meet Europe's net zero emissions target.

That includes building renovation, renewables, clean transport, industrial innovation and better land use and food systems.

But there's annoyance that Brussels has given way to regions by allowing them to spend their funds however they want until 2022 - even if that means investing in schemes which are good for job-creation but bad for the climate.--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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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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