Story of the Day:
Embattled energy company, Copperbelt Energy Corporation, has indicated to shareholders that it expects its earnings per share to be 514% lower at half-year of the current financial year due to debts owed by a former mining customer. Read more
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Zambian President Edgar Lungu on Saturday summarily dismissed central bank governor Denny Kalyalya and replaced him with former deputy finance minister Christopher Mphanza Mvunga, a statement from State House said. Read more: Reuters
A large-scale manganese mine is set to start operating in Chipili District of Luapula Province before the end of this year. Luongo Mine which is a Zambian-owned mining company will be developed with a capital investment of over $300 million. Read more: ZNBC
The Zambian government has won an international arbitration case against US- registered Lodestar International at the London Court of Arbitration in the United Kingdom. Home Affairs Minister Mr. Stephen Kampyongo said Lodestar International Zambia sued Government in 2018 on alleged breach of contract. Read more: Zambia Reports
Zambia’s copper exports to China have been affected by COVID-19 lockdowns imposed by some countries in the southern African region. Zambia has faced hurdles to export its copper as it is a landlocked country which needs to use ports in other countries situated near the seacoast like South Africa. Read more: Xinhua
Global rating agency Standards and Poor’s – S&P affirmed both Zambia’s long term issuer rating for local and foreign currency at ‘CCC’ with negative outlook. The copper producer is still cited for fiscal vulnerabilities only this time amplified by disease pandemic effects. Read more: The Business Telegraph
Finance Minister Bwalya Ng’andu has challenged banks to come up with alternative banking strategies that will make debt servicing easier for customers during the COVID-19 period. The finance minister was speaking during the launch of the Development Bank of Zambia COVID-19 Relief Package worth $120 million. Read more: Lusaka Times
International Business and Finance
A post-Brexit trade deal between the UK and the EU “seems unlikely” at this stage, the bloc’s negotiator has said. The EU has said it would like to agree a deal by October so it can be approved by the European Parliament before the post-Brexit transition period expires in December. Read more: BBC News
UK government debt has risen above £2 trillion for the first time amid heavy spending to support the economy amid the coronavirus pandemic. Spending on measures such as the furlough scheme means the debt figure now equals the value of everything the UK produces in a year. Read more: BBC News
America remains in a deep downturn and is running a serious risk of a worsening recession that will last at least another year, economists warned Monday. About half of the National Association of Business Economists members expect US GDP won’t return to its pre-pandemic level until 2022. A majority of those experts also say the US job market will be back to its February level in 2022 at the earliest. Read more: CNN
Zimbabwe’s central bank said on Friday it had kept its main lending rate at 35%, part of efforts to reduce excess liquidity that could be used to buy foreign currency and put pressure on the local currency. Read more: Reuters
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There were no trades recorded on Friday. The LuSE All Share Index (LASI) maintained its close at 3,842.39 points, as there were no share price movements . The market closed on a capitalization of K55,545,036,766 including Shoprite Holdings and K21,305,830,786 excluding Shoprite Holdings.
Chart of the Day: