Major International Business Headlines Brief::: 16 September 2020

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Major International Business Headlines Brief::: 16 September 2020

 


 

 


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

 


 

 


 

 

ü  Kenya's budget deficit likely to swell, finance minister says

ü  S.Africa's coronavirus loan scheme lags, hobbling govt relief package

ü  South African retailer TFG sees H1 profit falling 20%, shares down

ü  Nigeria must lift bank loans to agricultural sector to 10% of total in 4
years - cenbank

ü  Kenya's KenGen seeks adviser for sale of emissions reduction units

ü  Harmony Gold plans S.Africa cultural site protocols after Rio outcry

ü  Nigeria's petrol and power price rises upset business owners

ü  Nigeria annual inflation rises in August as pandemic disrupts activity

ü  South Africa's rand gains on vaccine hopes; eyes on cenbank policy
meetings

ü  US backs off Canadian aluminium tariffs

ü  Asia sees first regional recession in 60 years

ü  US China tariffs 'inconsistent' with trade rules says WTO

ü  Brexit freight system 'will be ready on time'

ü  Lego to ditch plastic bags after children call for change

ü  Eating out scheme pushes down August inflation

 


 <mailto:info at bulls.co.zw> 

 


 


Kenya's budget deficit likely to swell, finance minister says

NAIROBI (Reuters) - Kenya’s budget deficit for this financial year could
increase due to revenue shortfalls and coronavirus-related disruptions, the
finance minister said on Tuesday.

 

Ukur Yatani, who set the deficit at 7.5% of GDP when he presented the budget
in June, did not say how far the gap was likely to expand, adding that they
were developing a plan to cover it.

 

“It might be just cutting on some expenditures, particularly the slow-moving
projects, and
 some state agencies are doing well so we are likely to get
some substantial dividends,” Yatani told Reuters.

 

Revenue collection underperformed by 40 billion shillings ($368.49 million)
in the first two months of the financial year, July and August, he said,
adding that he will present a supplementary budget in December or January.

 

“In the next two, three weeks, we will have some firm road maps,” he said.

 

The government is in early talks with the World Bank, for the provision of
an additional budgetary support loan, which was potentially going to be used
in the 2021/22 fiscal year, the minister told Reuters.

 

The loan will be the third from the World Bank after the Washington-based
lender started issuing such financing to the East African nation last year,
saying the reforms carried out by the government had made it qualify.

 

The discussions for a third loan are tied to reforms in state-owned firms
and agencies.

 

“We are looking at key areas of reforms ... restructuring them to ensure
they are fit for purpose,” Yatani said.

 

The government can still service its external debts, Yatani said, after
export earnings dropped due to the coronavirus crisis.

 

Exports of tea and flowers had rebounded after some lockdown measures were
lifted in August, the minister said, adding that export earnings can only
take an “upwards trajectory”.

 

The East African nation, whose government expects economic growth to slide
to less than 2.5% this year, has avoided taking up a debt repayments
standstill offered through a G-20 initiative to offer relief to poor nations
as they battle the pandemic.

 

“It is still a good option, but it is not the best option, so we are still
studying,” Yatani said.

 

($1 = 108.5500 Kenyan shillings)

 

 

 

S.Africa's coronavirus loan scheme lags, hobbling govt relief package

JOHANNESBURG (Reuters) - South Africa’s National Treasury plans no further
easing of its coronavirus loan scheme criteria to stimulate uptake, it told
Reuters, meaning almost a third of the government’s 500 billion rand ($30
billion) relief package may end up going unused.

 

The 200 billion rand loan programme is a pillar of South African efforts to
shield small businesses from the impact of the pandemic. Conditions were
tweaked in July, including expanding who qualifies and extending the
repayment grace period, after relatively few firms applied for the loans.

 

Still, only 14.5 billion rand had been paid out through August. The Banking
Association of South Africa (BASA) estimates at most around 44 billion rand
will be deployed by January.

 

Despite that, the treasury said it was not planning to ease the scheme
further to increase disbursals.

 

“The low uptake of the scheme also suggests that businesses do not want to
incur more debt in light of the economic uncertainty,” it said in response
to Reuters’ questions.

 

It added that the economy’s reopening following a months-long lockdown meant
firms would now need less financial support. The treasury said it was also
not considering releasing any of that amount as grants, as suggested by some
trade unions.

 

COVID-19 has deepened a recession in Africa’s most developed economy that
predates the pandemic. Banks have reported a spike in bad loan charges.

 

Under the scheme, the government pledges to reimburse banks for a portion of
any eventual losses on qualifying loans with the aim of lowering borrowing
costs and making credit available to businesses that might otherwise be
considered too high-risk.

 

DEBT NOT WANTED

By the end of August, some 35% of 42,202 loan applications had been rejected
for not meeting the scheme’s or banks’ own risk criteria, according to BASA.
The programme has attracted significantly less interest than similar
initiatives launched in the UK and elsewhere.

 

More funds - over 30 billion rand - were disbursed under other earlier
relief initiatives from lenders, such as payment holidays.

 

This, as well as high levels of uncertainty and low business confidence,
suppressed demand for the guaranteed loans, BASA has said.

 

South Africa had to balance the desire to extend relief to businesses
against the need to safeguard the treasury’s already strained resources,
said Kuben Naidoo, head of South Africa’s Prudential Authority.

 

“If we had a different fiscal position, I think we could have designed the
scheme differently,” he said, though he added that the scheme had
contributed to easing the impact of the crisis, along with lenders’ other
relief measures.

 

And the need the initiative was designed to meet - buttressing businesses
during the lockdown - no longer exists, said Stuart Theobald, chairman of
financial consultancy Intellidex.

 

He said the economy now faces other problems, namely a recession, but in
such an environment firms want equity, not debt.

 

Business owners still need support, said Alan Pullinger, CEO of major lender
FirstRand, but they do not want loans they are not sure they can repay.

 

“I think if (government) really want to get ... 200 billion rand out the
door, they have got to change it from a loan scheme to a grant. And the
reality is we can’t afford it.”

 

($1 = 16.7071 rand)

 

 

 

South African retailer TFG sees H1 profit falling 20%, shares down

JOHANNESBURG (Reuters) - South Africa’s TFG expects its half-year profit to
fall by 20% as sales declined due to store closures during COVID-19 lockdown
restrictions, the retailer said on Tuesday as its shares were down more than
5%.

 

Previously known as The Foschini Group, TFG said basic headline earnings per
share - the main profit measure in South Africa - would fall by 105.3 cents
($0.0639) in the six months to Sept. 30, from 526.7 cents a year earlier.

 

By 1408 GMT, shares fell to 86.61 rand, down 5.03%.

 

The fashion retailer said trading conditions across South Africa, the United
Kingdom and Australia continued to be challenging, with consumer spending
under significant pressure, exacerbated by further job losses and social
distancing rules.

 

In Australia, trade has been impacted by the re-introduction of lockdown
measures in certain states. The UK stores started reopening from mid-June,
with a very slow ramp up as social distancing rules and European
restrictions remain largely in force.

 

As a result, sales for the 22 weeks ended Aug. 29 declined by 29.7%. Online
sales grew 29.7% as customers preferred shopping in this way, but that
growth was not enough to lift overall sales given its small contribution.

 

($1 = 16.4856 rand)

 

 

Nigeria must lift bank loans to agricultural sector to 10% of total in 4
years - cenbank

ABUJA (Reuters) - Nigeria needs to more than double the proportion of bank
loans it makes to the agricultural sector to 10% within the next four years
to boost food production in Africa’s biggest economy, its central bank
governor said on Tuesday.

 

Nigeria is reliant on imports, including of foods, to meet its needs due to
limited manufacturing capacity. It has been trying to cut its $20 billion
annual food import bill, but has struggled to build up an economy outside
its dominant oil sector.

 

Loans to the food sector account for around 4% of total credit, Governor
Godwin Emefiele told bankers. President Muhammadu Buhari last week told the
central bank to stop dollar sales for food and fertiliser imports.

 

Emefiele said the coronavirus pandemic had exposed the risk of relying on
food and drug imports, as most countries are reluctant to export goods.

 

Despite rice growing being a government priority, many farmers still work
with their bare hands in fields lacking irrigation channels.

 

Mills are often ramshackle, while poor roads make getting the crop from the
main growing areas in northern Nigeria to consumers in the south difficult
and costly.

 

The country is facing its worst economic crisis in four decades, triggered
by an oil price crash induced by the pandemic. The crisis has slashed
government revenues, weakened the currency and created a large financing
gap.

 

 

 

Kenya's KenGen seeks adviser for sale of emissions reduction units

NAIROBI (Reuters) - Kenya Electricity Generating Co (KenGen), is seeking a
transaction adviser for the sale of certified carbon emissions-reduction
units, it said.

 

The state-controlled KenGen, which is the biggest producer of electricity in
the East African nation, has six clean development mechanism projects, with
the potential to produce 1.5 million tonnes of carbon equivalent.

 

The hydro, wind and geothermal projects have been certified under the United
Nations’ guidelines on climate change.

 

The adviser who will be picked will engage the market for
emissionsr-eduction units on behalf of KenGen, and come up with a sales and
marketing strategy, the company said in a notice seen by Reuters on Tuesday.

 

 

 

 

Harmony Gold plans S.Africa cultural site protocols after Rio outcry

JOHANNESBURG (Reuters) - Harmony Gold Mining Co Ltd on Tuesday said it would
establish protocols on cultural sites in South Africa as the fallout from
Rio Tinto’s destruction of Aboriginal rockshelters in Australia ripples
across the sector.

 

CEO Peter Steenkamp said the shareholder outcry at Rio, which cost the CEO
his job, has highlighted that miners need strong internal protocols in
matters of cultural heritage and must not just “leave it up to regulations”.

 

Harmony will set out protocols on cultural heritage sites in South Africa by
the end of the year, Steenkamp said, adding that the company already has
such protocols in place in Papua New Guinea.

 

Harmony Gold posted an annual loss of 828 million rand ($53 million) on
Tuesday, stung by derivative losses caused by a weaker exchange rate,
despite a boost in revenue from soaring gold prices.

 

The gold miner last week flagged derivative losses of about 1.7 billion rand
($102 million) and translation losses of nearly 919 million rand on U.S.
dollar-denominated debt.

 

It posted a headline loss per share of 164 cents for the year ended June 30
versus a profit of 204 cents per share a year earlier. Headline earnings per
share, the main profit measure in South Africa, strip out certain one-off
items.

 

Surging gold prices boosted Harmony’s revenue to 29.2 billion rand from 26.9
billion a year earlier.

 

The miner also reported better-than-expected production in the fourth
quarter as operations recovered from a forced shutdown early in South
Africa’s COVID-19 lockdown, and all foreign nationals returned to work.

 

Harmony shares were up 7.7% after its results.

 

Asked whether Harmony plans to change its hedging strategy after the large
derivative loss, Finance Director Boipelo Lekubo said: “We believe that to
hedge responsibly remains a good strategy to lock in healthy margins.”

 

“Over the five years that we’ve had the programme we’ve benefited net gains
of 2.2 billion rand,” she added.

 

Harmony said it aims to produce between 1.25 million and 1.3 million ounces
in the next financial year, and will update its production guidance once
Mponeng and Mine Waste Solutions, which it has acquired from AngloGold
Ashanti, are integrated into the company.

 

Steenkamp said the high gold price could drive new acquisition opportunities
but the priority was to bed in Mponeng before looking at other projects.

 

($1 = 16.5944 rand)

 

 

 

Nigeria's petrol and power price rises upset business owners

ABUJA (Reuters) - Daniel Oyelesi, who runs a laundry business in Nigeria’s
capital Abuja, is reeling from the double whammy of price rises for petrol
and electricity imposed in recent weeks that he says will harm his
two-year-old business.

 

Earlier this month Nigeria’s president said the increases, announced days
apart in early September, were needed to bolster Africa’s biggest economy,
which for years has been urged by multilateral lenders to remove costly fuel
subsidies and change electricity tariffs, both of which held prices
artificially low.

 

Before electricity price rises were implemented, Oyelesi - who works out of
a cramped kiosk filled with piles of clothes, a washing machine, tumble
dryer and ironing board - spent 20,000 naira ($52.63) on power each month.
He said that sum was now likely to last two weeks.

 

“I won’t say I’m coping... it has not been easy for us,” said Oyelesi. He
added that he feared losing customers if he raised his prices.

 

Ochuko Kosefe, a barber, also lamented price hikes that made him feel
“sick”.

 

Sat behind a cash desk where he watches one of his two hairdressers cut the
hair of a young boy, Kosefe said higher fuel costs meant he rationed the use
of his diesel powered generator which, like many businesses in Nigeria, is
used to make up for the patchy power supply provided by the national grid.

 

Nigeria’s economy contracted by 6.1% in the second quarter due to the impact
of the coronavirus pandemic and low oil prices. Africa’s top oil exporter
relies on crude sales for 90% of foreign exchange earnings.

 

Last month sources said a much-needed $1.5 billion World Bank loan was held
up due to concerns over the implementation of reforms such as the fuel and
electricity price changes.

 

But galloping inflation, which the central bank expects to rise to 14.15% by
the end of the year, is increasing costs for businesses and their customers.

 

Oyelesi, whose words float above the constant hum of a washing machine and
the din from the busy Abuja street outside, believes the future is bleak.

 

“If the government does not do something, we might be forced to quit the
business,” he said.

 

($1 = 380.0000 naira)

 

 

 

Nigeria annual inflation rises in August as pandemic disrupts activity

ABUJA (Reuters) - Annual inflation in Nigeria rose in August for the 12th
month in a row, reaching a more-than two-year high, as the coronavirus
pandemic disrupted the supply of goods and services.

 

Inflation climbed to 13.22% last month from 12.82% in July, the National
Bureau of Statistics said on Tuesday.

 

The central bank has said inflation is likely to rise to up to 14.15% at the
end of December due to supply shocks as a result of the coronavirus
pandemic, which has curtailed economic activity and created disruptions.
[nL8N2GB2TR]

 

Prices increased in August across the range of goods and services, rising
more in cities than in rural areas, the statistics office said.

 

A separate index for food, which accounts for the bulk of the inflation
basket, showed prices rose 16.0% last month compared with 15.48% in July.
Food inflation has been in double digits for more than three years.

 

Africa’s top oil exporter faces economic hardship from the coronavirus
outbreak and this year’s plunge in crude prices. The government expects the
economy to contract by as much as 8.9% this year.

 

 

 

South Africa's rand gains on vaccine hopes; eyes on cenbank policy meetings

JOHANNESBURG (Reuters) - South Africa’s rand firmed against the U.S. dollar
early on Tuesday as renewed hopes for a COVID-19 vaccine lifted risk
appetite, while investors awaited monetary policy directions from central
banks this week.

 

At 0630 GMT, the rand traded at 16.5650 per dollar, 0.67% firmer than its
close on Monday.

 

Helping sentiment, AstraZeneca resumed British clinical trials of its
COVID-19 vaccine, one of the most advanced in development, on Monday, while
Pfizer Inc and BioNTech SE proposed over the weekend expanding their Phase 3
vaccine trial.

 

Investors are also looking forward to central banks for direction, with the
South African Reserve Bank deciding rates on Thursday.

 

The country’s central bank has cut rates by a total of 300 basis points this
year to support an economy that was in recession before COVID-19 hit.

 

On the global stage, the U.S. Federal Reserve starting a two-day policy
meeting on Tuesday, the first since unveiling a landmark shift to a more
tolerant stance on inflation in August.

 

The Bank of Japan and the Bank of England are also scheduled to announce
their respective policy decisions on Thursday.

 

Elsewhere, in fixed income, the yield on the benchmark government bond due
in 2030 was down 4 basis points at 9.24%.

 

 

 

 

US backs off Canadian aluminium tariffs

The US is dropping plans for a 10% tariff on certain types of Canadian
aluminium that President Donald Trump announced just last month.

 

The US said it was backing off after determining that imports were likely to
decline after an earlier surge.

 

If the shipments do not fall as expected, officials said they would apply
tariffs to the excess.

 

The reversal comes the same day that Canada was expected to unveil its plans
for retaliation.

 

Canadian leaders said they welcomed the US decision and that, in response,
they would suspend the plans to impose tariffs on C$3.6bn ($2.7bn, £2.1bn)
in US aluminium products.

 

"These measures were an error from the very beginning," said Chrystia
Freeland, Canada's finance minister. "This is really a day when common sense
has prevailed and that's good news."

 

Ms Freeland described the US move as "unilateral" and Canada had not agreed
to abide by any import thresholds. The government remains prepared to
retaliate should the US decide to act on its tariff threat, she added.

 

"After four years of working with this American administration, we have
understood that we have to be ready for anything," Ms Freeland said. "We
have to expect any possibility and we will continue being ready for any
possibility."

 

US-Canada trade tensions

The US first imposed tariffs on foreign steel and aluminium in 2018, citing
national security concerns. The move caused furore, especially among the
country's traditional allies in Europe and Canada. The Trump administration
later exempted certain countries, including Canada, from the levies, which
were also controversial within the US.

 

But at an event in Ohio last month, President Trump announced that he was
re-imposing border taxes on certain types of Canadian aluminium, citing a
flood of under-priced metal into the country.

 

The step was "absolutely necessary to defend our aluminium industry," he
said.

 

Canada called the move "unjustified and unacceptable", but the US said the
2019 agreement that exempted Canada from the duties provided for monitoring
of the imports and allowed tariffs to be re-imposed should volumes surge.

 

In Tuesday's announcement that the 10% tariff would be dropped, retroactive
to 1 September, the office of the US Trade Representative said it expected
imports over the rest of 2020 to decline by 50% from the monthly average in
the first seven months of the year.

 

"If imports exceed 105 percent of the expected volume in any month the
United States may re-impose the 10% tariff going forward," the office said,
adding that it would review the state of the market with Canadian officials
at the end of 2020.

 

Ms Freeland did not respond directly when asked if Canada was at risk of
butting up against the limits outlined by the US. But she noted that the US
has said it does not expect to review the decision before November.-bbc

 

 

 

Asia sees first regional recession in 60 years

The Asian Development Bank (ADB) says the Covid-19 pandemic has pulled the
region's developing economies into recession.

 

It is the first time in six decades that "developing Asia" - a designation
that includes 45 countries - has seen a regional slump.

 

The ADB says developing Asia's economy will shrink by 0.7% in 2020.

 

But the region is expected to rebound strongly in 2021, growing by 6.8% next
year.

 

The bank's Asian Development Outlook Update shows about three-quarters of
the region's economies are forecast to slump this year.

 

It revises down its earlier projection of a paltry 0.1% growth in the
region's gross domestic product (GDP) for 2020.

 

"Most economies in the Asia and Pacific region can expect difficult growth
path for the rest of 2020," ADB chief economist Yasuyuki Sawada said in a
statement.

 

The ADB's assessment brings the lender into line with the International
Monetary Fund, which made a similar prediction earlier this year.

 

Coronavirus: Asia's 'shining star' suffers biggest ever slump

India coronavirus: Gold rush as pandemic roils country's economy

South Asia is likely to be the worst affected, while China is bucking the
trend.

 

India's economy is expected to contract 9% this year, while China's growth
is forecast at 1.8 percent.

 

Southeast Asia is likely to see a drop of 3.8%.

 

Tourism-dependent island economies, in particular, have seen wrenching
economic contractions.

 

Fiji's economy is expected to shrink by 19.5%, while the Maldives is likely
to see a 20.5% contraction.

 

The good news is that the region is expected to recover next year, with
growth of 6.8%.

 

China's economy is expected to rebound by 7.7% in 2021, while India will
also bounce back with 8% growth next year, the ADB says.

 

But the bank warns that a recovery could be derailed by a prolonged pandemic
and tougher containment measures.

 

"The economic threat posed by the Covid-19 pandemic remains potent, as
extended first waves or recurring outbreaks could prompt further containment
measures," Mr Sawada said.-bbc

 

 

 

US China tariffs 'inconsistent' with trade rules says WTO

The World Trade Organization has ruled that tariffs the US imposed on
Chinese goods in 2018, triggering a trade war, were "inconsistent" with
international trade rules.

 

The WTO said the US did not provide evidence that its claims of China's
unfair technology theft and state aid justified the border taxes.

 

Chinese officials welcomed the ruling.

 

But the US said it showed that the WTO was "completely inadequate" to the
task of confronting China.

 

Ambassador Robert Lighthizer, America's top trade negotiator, said the US
"must be allowed to defend itself against unfair trade practices".

 

"This panel report confirms what the Trump Administration has been saying
for four years: The WTO is completely inadequate to stop China's harmful
technology practices," he said.

 

"Although the panel did not dispute the extensive evidence submitted by the
US of intellectual property theft by China, its decision shows that the WTO
provides no remedy for such misconduct."

 

China brought the case to the WTO in 2018, as the Trump administration
started preparing the first rounds of tariffs on what would eventually
become more than $300bn worth of products. The complaint challenged tariffs
enacted in June and September of 2018 on goods estimated at more than $200bn
in annual trade.

 

The US said the duties were a response to China's state-sanctioned
technology theft, subsidies and other "unfair practices" and allowed under
1970s-era trade rules.

 

But China said the taxes violated trade regulations because they were higher
than US commitments and targeted only one country.

 

A panel of WTO experts agreed with those claims. It added that the US had
not proved its case that the tariffs were justified on moral grounds because
it did not show how the products affected by the duties had benefited from
the unfair practices.

 

"The panel found, accordingly, that the US had not met its burden of
demonstrating that the measures are provisionally justified," it said.

 

'Unprecedented global trade tensions'

The panel added that it had only looked into the US measures and not China's
retaliation, which Washington has not challenged at the WTO.

 

Noting "unprecedented global trade tensions", the three-person panel
encouraged the two sides to work to resolve the overall dispute.

 

In a statement on Tuesday, China's Commerce Ministry said it hoped the US
would respect the rulings of the World Trade Organisation (WTO) and take
practical action to maintain the multilateral trading system.

 

The Trump administration, which has repeatedly criticised the WTO, may
appeal the decision.

 

But the case could then enter a legal paralysis because Washington has
blocked the appointment of judges to the appellate body, preventing it from
convening the minimum number required to hear cases.--bbc

 

 

 

Brexit freight system 'will be ready on time'

The government has denied claims that a new freight management system will
not be ready when the EU transition period ends.

 

The system is seen as vital for preventing delays when post-Brexit freight
arrangements come into place on 1 January.

 

One industry body had expressed concern that only a beta - or test - version
would be available.

 

But the government insists it is a fully operational digital service.

 

The so-called Smart Freight system ensures that trucks are carrying the
correct documentation before they travel to ports.

 

The new system is designed to reduce delays at ports, and to better manage
traffic into Dover and queues of lorries building up along the M2 and M20
motorways in Kent.

 

Truck drivers could face a fine if they arrive at ports without the proper
documentation, but the government insists this will be a last resort, and
unnecessary if they follow the rules.

 

Logistics UK, which represents freight businesses, said it was informed by
government officials on Monday that a beta - or test - version would be
available in December, but would not be fully operational until April.

 

In a statement, the Director of Policy at Logistics UK Elizabeth de Jong
said it was unacceptable and a "massive blow to UK businesses and the
economy".

 

But the government now says "beta" is a standard labelling practice for a
digital service that is fully operational, and that it has reassured
industry that Smart Freight will be operational by December.--bbc'

 

 

 

Lego to ditch plastic bags after children call for change

Lego will start replacing plastic packaging with paper bags from 2021 as the
toy brick maker aims to become more sustainable.

 

Lego said it had been prompted by letters from children asking it to remove
the single-use plastic bags.

 

It said it would be investing up to $400m (£310m) over three years to
improve its sustainability efforts.

 

Lego bricks themselves are made of plastic, although the company is
exploring alternative materials.

 

"We have received many letters from children about the environment asking us
to remove single-use plastic packaging," Lego Group chief executive Niels B
Christiansen said.

 

"We have been exploring alternatives for some time and the passion and ideas
from children inspired us to begin to make the change," he added.

 

>From next year the toy company will start introducing recyclable paper bags,
certified by the Forest Stewardship Council, to package its loose bricks.

 

This is part of Lego's ambition to make all its packaging sustainable by the
end of 2025.

 

"Children liked the paper bags being trialled in 2021 as they were
environmentally friendly and easy to open," Mr Christiansen added.

 

Pressure has been growing on retailers to reduce their use of plastic bags
and packaging. However it is not always straightforward to ensure
alternatives aren't more carbon intensive to produce, transport and recycle.

 

Lego said its investment would also go into educational programmes and
efforts to make the company more sustainable in other areas.

 

In 2015, the Danish firm set a target to make its products from sustainable
materials by 2030. As part of this pledge it will expand the use of
bio-bricks, such as those using sugar cane as a component.

 

Earlier this month Lego said sales and profits had risen in the first half
of this year as consumers bought more of their products during lockdowns to
restrict the spread of coronavirus. It said families bought bigger and more
complicated Lego sets to keep themselves busy.

 

The toy maker plans still plans to open 120 new Lego stores around the world
this year despite the pandemic which saw most bricks-and-mortar shops closed
for extended periods.--bbc

 

 

Eating out scheme pushes down August inflation

The UK's inflation rate fell sharply to a five-year low of 0.2% in August as
the effect of the Eat Out to Help Out scheme pushed down restaurant prices.

 

July's figure had been 1%.

 

The cut in VAT from 20% to 5% in the hospitality sector also contributed to
the big drop in Consumer Prices Index (CPI) inflation, said the Office for
National Statistics.

 

The eating out scheme, which ran from Monday to Wednesday in August, offered
50% off food up to the value of £10.

 

"The cost of dining out fell significantly in August thanks to the Eat Out
to Help Out scheme and VAT cut, leading to one of the largest falls in the
annual inflation rate in recent years," said ONS deputy national
statistician Jonathan Athow.

 

"For the first time since records began, air fares fell in August as fewer
people travelled abroad on holiday. Meanwhile. the usual clothing price
rises seen at this time of year, as autumn ranges hit the shops, also failed
to materialise."

 

It was the lowest inflation rate since December 2015.

 

What is the UK inflation rate?

Thomas Pugh, UK economist at Capital Economics, said August's figure was
probably "the low point" for inflation, but pointed out that it was unlikely
to hit the Bank of England's 2% target within the next few years.

 

"The big picture is that it will be a few years before the economy is strong
enough to sustain CPI inflation at the 2% target," he said.

 

"The big risk to this view is a no deal Brexit, which could cause a slump in
the pound and, in turn, a temporary sharp rise in inflation to above 3.5%."

 

Inflation is calculated by looking at a "basket" of commonly purchased goods
and comparing how much they cost now to last month and to the same time last
year.

 

During the pandemic, the ONS has been unable to identify prices for many of
the 720 items it usually monitors.

 

In August, the ONS said prices for only eight items were still unavailable,
reflecting parts of the economy still unable to operate normally including
cruises, live music, theatre, swimming pools and soft play sessions.--bbc

 

 

 

 

 

 

 


 


 


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Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:         <http://www.bullszimbabwe.com> www.bullszimbabwe.com 

Blog:
<https://bullszimbabwe.com/category/blogs/bullish-thoughts/>
www.bullszimbabwe.com/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 



 

 

 


 

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.

 


 

 


(c) 2020 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

 


 

 

 

 

 

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