Story of the Day:
As the Government is in talks with the International Monetary Fund (IMF) to get a bailout package, it is a no-brainer that instituting fiscal reforms is part of the discussion. What immediately comes to mind are fuel subsidies, which have long been a major source of fiscal imbalances. Read more
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Zambia will support the implementation of an action plan adopted at the 8th Ministerial Conference of the Forum on China-Africa Cooperation (FOCAC) to ensure economic recovery amid the COVID-19 pandemic, a senior government official said Thursday. Read more: China.org
Lafarge Zambia Plc has changed its name and reverted back to ‘Chilanga Cement Plc’ following a Share Sale and Purchase Agreement signed and executed with Huaxin (Hainan) Investment Limited, the Chinese cement manufacturer, who now hold a controlling majority stake. Read more: Zambian Business Times
Infrastructure, Housing, and Urban Development Minister, Charles Milupi has said that the UPND Administration will engage the Chinese government to find an amicable solution to the infrastructure debt inherited from the PF government. Read more: Lusaka Times
The Kwacha is projected to post minor losses against the United States (US) dollar in the short term due to anticipated green back inflows from corporates making conversions to meet tax obligations. According to the Absa Bank Zambia Plc’s treasury newsletter, the Kwacha held firm against the US dollar in Tuesday’s trading session as importer demand was evenly matched by inflows from those converting dollars. Read more: Zambia Daily Mail
International Business and Finance
Banks including Barclays, RBS and HSBC have been fined €344m by the European Commission for colluding in the trading of foreign currencies. It discovered that traders acting on behalf of five banks exchanged sensitive information through an online chatroom called Sterling Lads. Read more: BBC News
Members of the World Trade Organization (WTO) have agreed a landmark deal which could cut trade costs by £113bn a year. Some 67 members agreed to cut red tape around licensing and qualifications. The signatories, which include the UK, United States, EU and China, are a minority of the WTO’s 164 members, but represent 90% of all services trade. Read more: BBC News
The stock market’s volatility is showing no signs of letting up. US equities rallied on Thursday, rebounding from the prior two days of steep losses. All three major indexes ended the day in the green and then some: The Dow finished up nearly 620 points, or 1.8%. It was the biggest point gain of 2021 for the Dow and best percentage increase since March. The broader S&P 500 rose 1.4%. The tech-heavy Nasdaq Composite lagged behind slightly, up “only” 0.8%. Read more: CNN
Tesla Chief Executive Elon Musk has sold another 934,091 shares of the electric vehicle maker worth $1.01 billion to meet his tax obligations related to the exercise of options to buy 2.1 million shares, regulatory filings showed on Thursday. Read more: CNBC
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In 112 trades recorded yesterday, 324,365 shares were transacted resulting in a turnover of K716,391.67. Trading activity was recorded in Airtel, British American Tobacco Zambia, Copperbelt Energy Corporation, Lafarge and Zambeef. The LuSE All Share Index (LASI) remained at 5,408.44 with a percentage change of 0.96.
Chart of the Day: