Story of the Day:
If there is one pronouncement that has been constant among the different government regimes of the Republic of Zambia is economic diversification. The Covid pandemic has shown that indeed being an import-dependent economy is not good at all. Read more
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Zambia said it’s won some debt servicing relief from China Development Bank, putting more pressure on private bondholders to accept a government proposal with similar terms before the country becomes the first to default in Africa since the onset of the coronavirus pandemic. Read more: Bloomberg
Zambia’s cabinet has approved the ratification of the African Continental Free Trade Area (AfCFTA), a spokesperson said on Tuesday. Chief Government Spokesperson Dora Siliya said the cabinet approved the ratification of the agreement during its sitting on Monday, Oct. 26. Read more: Xinhua
The World Bank said on Wednesday it has sanctioned a state Chinese state electric engineering group and its subsidiary over fraudulent practices in a power project in Zambia, setting out new conditions for them to participate in bank-financed projects. Read more: Reuters
Turkey’s largest privately-owned investment bank Aktif Bank has signed Correspondent Bank Agreements with five Zambian Commercial banks to help reduce costs and time spent to complete financial transactions. Read more: The Independent Observer
The United States government with the Zambian government yesterday commissioned the pilot seed export from Zambia to Mozambique. With a joint investment of K3.7 million and strict adherence to the regional guidelines, the emerging seed company will ultimately produce 250 metric tons of high-quality seed valued at K7.6 million. Read more: Lusaka Times
International Business and Finance
Samsung reported bumper profits today, but warned that things won’t be so rosy in the coming months as smartphone competition ramps up and demand for memory chips slows. The South Korean conglomerate reported operating profit rose nearly 60% to 12.35 trillion won ($10.9 billion) for the July-September quarter compared to the same period last year. Read more: CNN
The appointment of Nigeria’s ex-finance minister to lead the World Trade Organization (WTO) has been thrown into doubt after the US opposed the move. On Wednesday, a WTO nominations committee recommended the group’s 164 members appoint Ngozi Okonjo-Iweala. She would be the first woman and first African to lead the WTO. Read more: BBC News
Boeing is to cut another 7,000 jobs as its losses mount in the pandemic. The US planemaker, which had already announced deep cuts, said its staff would be down to just 130,000 by the end of next year – 20% down on the 160,000 it employed before the crisis. Read more: BBC News
The six largest tech companies shed a collective $273 billion in value over the past two days, as the broader market sank due to a global surge in Covid-19 cases. Amazon shed roughly $30 billion in market cap over the past two days, while Microsoft, which reported weak revenue guidance Tuesday, lost $70 billion. Apple, which hit a $2 trillion market cap in August, shed $70 billion in value, and Tesla dropped $13 billion. Read more: CNBC
Apple added to its rapidly growing artificial intelligence portfolio earlier this year by acquiring Spain-based AI video startup Vilynx for approximately $50 million, Bloomberg reported Tuesday. Read more: Business Insider
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In 36 trades recorded yesterday, 109,326 shares were transacted yielding a market turnover of K86,856. Trading activity was recorded in AEL Zambia, Copperbelt Energy Corporation, Lafarge and PUMA. The LuSE All Share Index (LASI) maintained its close at 3,809.22 points, as there were no shareprice movements. The market closed on a capitalization of K55,884,340,845 including Shoprite Holdings and K21,645,134,865 excluding Shoprite Holdings.
Chart of the Day: