Story of the Day:
One area that has caught my interest throughout the current crisis has been the Economic response of countries across the world and the potential strains on debt sustainability as a result. Looking at Europe, The US and Emerging Markets (EM), we’ve seen government budgets completely overhauled and replaced by massive, blank cheque spending that only 2 months ago would have been very hard to imagine. Read more
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The International Monetary Fund (IMF) says Zambia faces difficult policy choices to respond to the COVID-19 pandemic as the country requires additional interventions in the health sector while trying to restore debt sustainability. Read more: News Diggers
President Edgar Lungu says he will engage Minister of Health Dr Chitalu Chilufya to begin unlocking some sectors of the economy, even if it means the continued wearing of face masks, as the country continues battling COVID-19. Read more: News Diggers
Labour Minister Joyce Simukoko says the Ministry intends to draft a statutory instrument that will prescribe circumstances under which employers can be allowed to send workers on forced leave . Mrs Simukoko says the Ministry also plans to invoke section two of the employment code act to suspend some provisions which might include suspension of the requirement to give notice for a redundancy. Read more: ZNBC
As the coronavirus continues to take its toll on enterprises and affecting their capacity to meet various obligations such as loan repayments, Stanbic Bank Zambia has offered debt relief to customers. Read more: Zambia Daily Mail
Trade Kings Group of Companies says it will not hike the prices of its products despite the depreciation of the Kwacha. Read more: Zambia Daily Mail
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Intel Corp. withdrew its full-year sales forecast, citing “significant economic uncertainty” caused by the Covid-19 pandemic. The company’s shares fell more than 5% in late trading. Read more: Bloomberg
Dubai, the glittering commercial hub of the Gulf, is facing the risk of a debt crisis reminiscent of the 2009 crash that wiped out thousands of jobs and nearly half the value of the emirate’s stock market, economists are warning. Read more: CNBC
The US Congress has passed a new Covid-19 relief package totalling $484bn, the fourth aid bill to clear Congress in response to the pandemic. The legislation, approved 388-5 by the House of Representatives, tops up a small business aid fund, while funding hospitals and testing. Read more: BBC News
Wall Street erased earlier gains after a potential antiviral drug for coronavirus disappointed in its first randomised clinical trial. The S&P 500 closed 0.1 per cent in the red on Thursday, having jumped as much as 1.6 per cent in the morning despite another 4.4m Americans filing for first-time unemployment benefits last week. Read more: Financial Times
African Airlines could lose $6 billion of passenger revenue in 2020 compared to 2019, according to the International Air Transport Association (IATA). Read more: CGTN
Congo Republic’s economy is expected to contract 9% in 2020 due to the coronavirus epidemic and a collapse in oil prices, the government said on Wednesday, a drastic revision of its earlier forecast of 1.2% growth. Read more: Reuters
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In 25 trades recorded yesterday, 201,474 shares were transacted yielding a market turnover of K214,774. Trading activity was recorded in AEL Zambia and Copperbelt Energy Corporation. The LuSE All Share Index (LASI) maintained its close at 4,140.56 points, as there were no changes in share price. The market closed on a capitalization of K56,841,276,360 including Shoprite Holdings and K22,602,070,380 excluding Shoprite Holdings.
Chart of the Day: