Story of the Day:
ZEP-RE has unveiled Zambia’s first “green” building in the heart of Lusaka’s emerging business district in a move intended to showcase the benefits and rewards that are possible with insurance in Africa. Read more
Local Business and Finance
The Bank of Zambia has hiked statutory reserves 400 basis points to 9% effective 23 December in an effort to curb a currency slide. Read more: The Business Telegraph
The Bank of Zambia – BOZ has announced that it is in the process of resuming the buying gold to serve as an alternative forex reserve as a way of diversifying from the risk of only relying on holding of the US dollar which is currently the main forex reserve held. Read more: Zambian Business Times
Copperbelt Energy Corporation (CEC) may be forced out of business as early as March 2020 if a new Bulk Supply Agreement with ZESCO is not signed, company Plc Chief Executive Officer Owen Silavwe has revealed. Read more: Lusaka Times
Appetite for treasury bills was high last week surpassing the target by over K100 million as the Kwacha remained under pressure breaching the K15 mark, last recorded in September 2015. The central bank was looking to borrow K950 million from the public through treasury bills, which are short-term debt instruments, but demand was high hitting slightly over K1 billion. This signals positivity in the economy. Read more: Zambia Daily Mail
Ten sub-contractors have expressed concern with AVIC International, saying the contractor is allegedly abrogating the 20 percent sub-contracting policy. The sub-contractors say AVIC has not done evaluation of scopes of works for upgrading of selected Lusaka urban roads since April 2018. Read more: ZNBC
The Zambezi River Authority (ZRA) Council of Ministers have approved an US $81 million budget for 2020 fiscal year, with the main expenditure being allocated to the rehabilitation of the Kariba Dam. Read more: News Diggers
International Business and Finance
A stalemate between the U.S. and other members of the World Trade Organization, including the European Union and China, stands to cripple the organization’s top court, threatening the global body’s survival. Read more: Wall Street Journal
Beijing has ordered all government offices and public institutions to remove foreign computer equipment and software within three years, in a potential blow to the likes of HP, Dell and Microsoft. Read more: Financial Times
Google is under investigation by the US government over its labor practices and the firing of several employees. Read more: CNN
South Africa’s president said on Monday he would take “drastic” steps if needed to prevent foundering state-owned companies from failing, as the government appointed an independent adviser to manage the country’s passenger rail firm. Read more: Reuters
Morgan Stanley is cutting about 1,500 jobs globally, including several managing directors, as part of a year-end efficiency push. Read more: Investment News
The biggest dealers of U.S. government securities have been dropping their forecasts for Treasury yields over the next year, and for the most part, their targets for where the 10-year benchmark will go are landing below 2%. Read more: Investment News
The finance minister of Saudi Arabia rejected claims that the kingdom is slowly running out of money, saying that it’s in a better financial position that many other nations across the globe. Read more: CNBC
Capital Markets Report
In 6 trades recorded yesterday, 23,132 shares were transacted, resulting in a market turnover of K2,774. Trading activity was recorded in AEL Zambia, Zambia Breweries, Zambeef and Zanaco. The LuSE All Share Index (LASI) closed at 4,268.90 points down from its previous close of 4,272.91 points. The market closed on a capitalization of K56,573,805,829 including Shoprite Holdings and K22,334,599,849 excluding Shoprite Holdings.
Chart of the Day: