Story of the Day:
The COVID-19 pandemic has had one of the most telling impacts on global trade in recent memory. The unprecedented disruption to global trade caused by the pandemic has forced businesses to create inventive ways to stay in touch with their clients without flouting health guidelines set by the Health Authorities. Read more
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The Bank of Zambia (BoZ) has disbursed K6.1 billion from the K10 billion stimulus package as at end of May this year. In April last year, the central bank announced a K10 billion Targeted Medium Term Refinancing Facility to assist with liquidity to business and individuals during the coronavirus period. Read more: Zambia Daily Mail
The mining industry is ready to invest US$2.5 million in mine expansion and a further US$439 million in capital expenditure if adjustments are made to the current mining tax regime. Government recently held a mining indaba to address issues bordering on mining taxation. Zambia Chamber of Mines president Godwin Beene says the unfavourable mineral royalty tax has continued holding up in excess of US$2.5 billion of fresh investments in the sector. Read more: Zambia Daily Mail
The ZTE Corporation has shown interest in strengthening its partnership with Zambia in the information and communication technology (ICT) sector. ZTE Zambia CEO Yang Xin disclosed that the corporation was in the process of establishing cooperation with major universities and colleges in Zambia to provide opportunities to best performing students. Read more: Lusaka Times
Agro production in Zambia is recording tremendous progress across most key food and cash crops. One such cash crop is cotton with yields expected to expand by about 20%. If such growth rates of over 20% are sustained over the next five years, it would spur the eventual re-development of the textile and apparel secondary industry in Zambia. Read more: Zambian Business Times
International Business and Finance
The broad terms of a trade deal between the UK and Australia have been agreed, the BBC understands, with a formal announcement expected on Tuesday. UK Prime Minister Boris Johnson and Australian PM Scott Morrison agreed the deal over dinner at Downing Street. This is the first trade deal to be negotiated from scratch since the UK left the EU. Read more: BBC News
The National Retail Federation is calling on the White House to address the logjam at US ports that is snarling commerce as the economy swiftly recovers from the pandemic. “The supply chain disruption issues, especially the congestion affecting our key maritime ports, are causing significant challenges for America’s retailers,” Read more: CNN
The US and Europe will announce a new joint technology and trade initiative, part of a wide-reaching effort this week by Joe Biden to rally European allies and challenge China’s rising influence. The U.S.-EU Trade and Technology Council will have three goals: To establish new global trade standards for emerging technology; to promote democratic values online; and to find ways to collaborate on cutting edge research and development. Read more: CNBC
U.S. stock futures were steady in overnight trading on Monday after the Nasdaq Composite and S&P 500 registered new record highs ahead of the Federal Reserve’s latest monetary policy meeting. Dow futures fell just 20 points. S&P 500 futures were flat and Nasdaq 100 futures ticked 0.09% lower. On Monday, S&P 500 gained 0.2% to close at a new record of 4,255.15. The Dow Jones Industrial Average, however, fell 85 points. Read more: CNBC
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In 25 trades recorded yesterday 87,506 shares were transacted resulting in a turnover of K112,341. A share price gain was recorded in Copperbelt Energy Corporation of K0.15. Trading activity was also recorded in Airtel, PUMA, Zambeef and ZAFFICO. The LuSE All Share index (LASI) closed at 4,323.70 points, 1.29% up from its previous close of previous close of 4,267.84 points. The market closed on a capitalization of K59,072,826,928 including Shoprite Holdings and K24,828,186,154 excluding Shoprite Holdings.
Chart of the Day: