Story of the Day
As Q4 set in and a new financial year started for one of Zambia’s leading auditing and consulting firms, having a relaxed day at Bonanza Golf estate was the perfect way for KPMG and its counterparts to chart the way into 2020 through networking. Read more
Local Business and Finance
Financial inclusion in Zambia remains relatively low at 59.3% (about 60%), with the government calling on financial providers to collaborate with key stakeholders in its quest to increase financial inclusion. Financial inclusion is considered key to economic productivity of the population. Read more: Zambian Business Times
The latest Africa’s Pulse report presented by the World Bank Group for the year 2019 has indicated that in order to eradicate poverty and archive sustainable economic growth in Africa, the equal contributions of Women and Men is crucial. Read more: Zambian Business Times
President Edgar Lungu commissioned an ultra-modern National Milling Corporation plant in Lilayi that will mill about 600 metric tonnes of wheat per day. Read more: Lusaka Times
Government says hidden ownership of mining operations in the country is a breeding ground for illicit financial flows and , which must be quickly addressed. the Ministry of Mines says the Extractive Industries Transparency Initiative (EITI) framework being implemented in the country will quickly help identify beneficial owners of mines in Zambia. Read more: Lusaka Times
President Edgar Lungu says government is doing every possible to address the power deficit the country is experiencing. The President has observed that the power deficit is impacting negatively on agricultural production and other economic sectors. Read more: ZNBC
International Business and Finance
Mastercard, eBay and Stripe have pulled out of the coalition of companies involved in a Facebook-led cryptocurrency initiative, Libra, in the latest headache for the social network’s effort. Other members could soon follow out the door, including Visa, amid fears of attracting regulatory scrutiny. Read more: Finance Magnates
The European Union made a last-ditch appeal to the U.S. to refrain from triggering retaliatory tariffs over illegal subsidies to Airbus SE, warning of economic harm to both sides and repeating a call for a negotiated solution. Read more: Bloomberg
The Trump administration is suspending a tariff hike on $250 billion in Chinese imports that was set to take effect Tuesday, and China agreed to buy $40 billion to $50 billion in U.S. farm products as the world’s two biggest economies reached a cease-fire in their 15-month trade war. Read more: Washington Post
Morgan Stanley says President Donald Trump’s partial trade deal with China is an “uncertain” arrangement at best and there does not appear to be viable path to reduce existing tariffs at the moment. Read more: CNBC
British Prime Minister Boris Johnson will ask parliament to back any Brexit deal that he secures from the European Union within 24 hours of the European summit next week, the Times reported on Saturday. Read more: CNBC
Sterling surged on Friday to a three-month high amid investor optimism about a last-minute Brexit deal between Britain and the European Union. Against the dollar the pound rose 1.9% to $1.2682, and against the euro was up 1.67% at €1.1489. Read more: BBC News
Boeing CEO Dennis Muilenburg has been stripped of his role as chairman as the company struggles to get its grounded 737 Max jets cleared to fly again. Read more: CNN
The Nigerian government and international oil companies are trying to find a common ground on a dispute over oil revenues. Citing a 2018 Supreme Court decision, the government says it is entitled to $62 billion from companies after they failed to comply with a 1993 law that gives the state a larger share of revenues when oil exceeds $20 a barrel. The companies have questioned this. Read more: Africa News
The European Union has identified a series of specific security threats posed by foreign vendors of telecommunications equipment, significantly heightening the bloc’s scrutiny of suppliers like Huawei Technologies Co., according to officials familiar with the matter and a privately circulated risk assessment prepared by European governments. Read more: Wall Street Journal
Capital Markets Report
In 57 trades recorded Friday, 1,062,721 shares were transacted, resulting in a market turnover of K719,127. A share price gain of K0.01 was posted in Copperbelt Energy Corporation while Zambeef and Zanaco recorded losses of K0.05 and K0.08 respectively. Trading activity was also recorded in Standard Chartered Bank Limited and Zambia Sugar. The LuSE All Share Index (LASI) closed at 4,373.45 points down by 0.63% from its previous close of 4,400.93 points. The market closed on a capitalization of K57,008,702,671 including Shoprite Holdings and K22,769,496,691 excluding Shoprite Holdings.
Chart of the Day: