LAGOS (Reuters) &#8211; Annual inflation in Nigeria rose for the sixth straight month to a near two-year high, the statistics office said on Tuesday, as the impact of the country’s closed borders continued to be felt. 



Inflation stood at 12.20% in February, compared with 12.13% in the previous month. It is the highest inflation rate since April 2018, when it stood at 12.48%. 



A separate food price index showed inflation at 14.90% in February, compared with 14.85% in January. 



“This rise in the food index was caused by increases in prices of bread and cereals, fish, meat, vegetables, and oils and fats,” the National Bureau of Statistics said in its report. 



Nigeria closed parts of its borders in August to fight smuggling of rice and other goods. Economists say the move has driven inflation as local food producers have struggled to meet demand for food in the country of around 200 million people, Africa’s most populous. 



The central bank monetary policy committee will meet next week to set its benchmark interest rate. It had said it expected to keep monetary policy tight in 2020 to combat inflation and support the currency amidst slow growth of around 2%. 



But Nigeria, Africa’s biggest economy and top oil producer, has been hit hard by low oil prices and the impact of the coronavirus outbreak on China, with which it has close trade ties. 



(Reporting by Alexis Akwagyiram and Bangalore Newsroom; Editing by Catherine Evans)



This article was first published on Reuters Africa <a href="https://af.reuters.com/article/investingNews/idAFKBN21418M-OZABS">https://af.reuters.com/article/investingNews/idAFKBN21418M-OZABS</a> and is republished with its permission.

Nigerian annual inflation edges up to 12.20% in February

Report by Clement Uwiringiyimana



KIGALI (Reuters) &#8211; Alarmed consumers thronged markets across Africa on Tuesday, many in masks and gloves, to stock up as the coronavirus spread on the world’s poorest continent.



Food prices rose in some parts, though at least one country, Rwanda, sought to control costs of staple foods. 



“It is as if people are preparing for war,” said an astonished shopkeeper as Rwandans clamoured for rice, cooking oil, sugar and flour at a market in the capital Kigali. 



“Prices have gone up &#8211; but still they buy.” 



Initially spared as the coronavirus battered China and then spread out, Africa has seen a rush of cases this month and governments are taking drastic measures to curb its spread. At least 30 African nations have now reported more than 400 cases. 



For many poorer Africans focused on surviving day-to-day, panic-buying was a privilege they could not join in with. 



The Rwandan shopkeeper, who declined to give his name fearing a visit from inspectors, said Tanzanian rice in his market had risen from 27,000 francs ($29) to 30,000 francs per 25 kg bag while Pakistani rice was up from 22,000 francs to 28,000 francs. 



Speaking as shoppers in masks and gloves picked over items, he blamed wholesalers for the increases. 



The trade ministry in Rwanda, which has seven confirmed coronavirus cases, fixed prices late on Monday for 17 food items including rice, sugar and cooking oil. But it did not specify punishments for price-gouging. 



At the same Nyarugenge market complex in Kigali, 52-year-old shopper Beatrice was exasperated by the price rises. 



She has no job and a child to provide for. 



“I am here to buy rice but I can’t afford it,” she said, noting forlornly that rice had gone up even higher to 32,000 francs per bag by the time she was there. 



“You can’t see your children go hungry. I will buy it anyway,” she said. “We don’t know when this coronavirus will stop. If I had enough money, I would buy a lot more food.” 



<h3 class="wp-block-heading">SUPERMARKET SAYS SORRY </h3>



Kenya, a relative economic powerhouse in East Africa, also saw a rush on shops after reporting its first coronavirus case on Friday. Within minutes, shoppers at the upscale Carrefour supermarket near the United Nations complex in Nairobi began piling trolleys with wipes, sanitizer, and staples like rice and long-life milk. 



Tusky’s, another Kenyan supermarket, urged customers not to panic and this week launched a home delivery service. 



Like Rwanda, Kenya stepped in to try and curb price rises. 



Its Competition Authority ordered another chain, Cleanshelf Supermarkets, to refund customers for overpricing hand sanitizers. The firm blamed it on action of one staff member. 



“The recent experience is unjustifiable and we are very sorry,” said Veronica Wambui, head of sales and marketing, in a statement the company posted on Twitter. 



From South Africa to Senegal, long lines snaked outside stores as families stocked up on essential health and food items from disinfectants to pasta. 



Anna, the manager at Auchan supermarket in Dakar’s upmarket Mermoz area, told Reuters sales had doubled since last weekend. Hand sanitizer had run out and suppliers were struggling to fulfil orders, she said. 



“The most sold items are pasta &#8211; people have taken everything!” she said, adding that prices had remained the same there, though many desperate shoppers were not even checking. 



($1 = 943.7830 Rwandan francs) 



(Additional reporting by George Obulutsa and Katharine Houreld in Nairobi and Juliette Jabkhiro in Dakar; Writing by Elias Biryabarema and Katharine Houreld; Editing by Andrew Cawthorne)



This article was first published on Reuters Africa <a href="https://af.reuters.com/article/topNews/idAFKBN21421N-OZATP">https://af.reuters.com/article/topNews/idAFKBN21421N-OZATP</a> and is republished with its permission.

“Preparing for war”: Africans scramble for groceries

ABUJA (Reuters) &#8211; Nigeria will postpone all non-critical government spending and wait for better market conditions for a planned $3.3 billion eurobond offering due to the turmoil caused by the coronavirus pandemic, the finance minister said on Monday.



Minister Zainab Ahmed told journalists in Abuja that Africa’s largest economy will prioritize “major capital expenditures.” 



“Any expenditures that are not critical we must defer to do it at a later time when things become more normal,” she said. 



An oil price crash caused by the toxic mix of a coronavirus-induced slump in demand and the collapse of a supply-cutting deal between OPEC and other oil producers such as Russia, has forced Nigeria to revise its budget and alter its spending plans. 



The 10.59 trillion naira ($34.6 billion) budget included a benchmark of oil prices at $57 per barrel. On Monday, Brent crude slumped to roughly $30 per barrel. 



Ahmed also said the virus-induced market turmoil would impact external borrowing, including for the eurobond it planned to issue to partly fund its 2020 budget deficit. 



“We are not going out immediately because the market indication is not in favour of external borrowing at this time. Even if we get the approvals we will defer it and watch the market and go out only when the timing is right.” 



Borrowing costs for many riskier emerging markets have risen sharply in recent days, with all of Nigeria’s dollar-bonds now yielding between 12%-14% compared with yields of less than 3% on shorter-dated issues in mid-February. 



Last month, the Debt Management Office said it expected to appoint advisers for the eurobond issue through an open competitive bid process and expected to complete an approval process for the sale swiftly. 



 ($1 = 306.0000 naira) 



(Reporting by Camillus Eboh, additional reporting by Karin Strohecker in London, writing by Libby George, editing by Hugh Lawson)



This article was first published on Reuters Africa <a href="https://af.reuters.com/article/investingNews/idAFKBN214196-OZABS">https://af.reuters.com/article/investingNews/idAFKBN214196-OZABS</a> and is republished with its permission.

Nigeria to delay non-critical spending, defer Eurobond sale

JOHANNESBURG (Reuters) &#8211; South Africa’s Sasol aims to generate $6 billion by the end of the 2021 financial year through several measures, including a potential rights issue and asset sale, as the company looks to address debt levels after a crash in the price of oil.



Shares in the petrochemicals group rose 15% at the market open before reversing some gains to trade up 6.28% at 47.55 rand by 0716 GMT. 



Sasol saw its shares plunge last week, falling to a 21-year low after oil prices dived, raising concerns about its debt levels following delays and cost overruns at its Lake Charles Chemicals project (LCCP) in Louisiana. 



“The immediate focus is on the actions to stabilise the company and protect the balance sheet so that the underlying value of the portfolio is not compromised, and instead the potential realised in the interests of all Sasol’s stakeholders,” Sasol said. 



The world’s top manufacturer of motor fuel from coal said it would target immediate measures to deliver a cash improvement of approximately $1 billion by June,30 2020. 



Sasol said it could raise up to $2 billion in a potential rights issue after the 2020 financial year results. 



The company had already entered into a standby underwriting agreement with BofA Securities, Citigroup and J.P. Morgan Securities for a rights issue. 



Sasol, which has completed a review of its assets started in 2017, said it would accelerate disposals and expand the scope to realise proceeds above its previous target of $2 billion. 



The company said it would also seek a potential partner at Sasol’s U.S. Base Chemicals assets. 



Sasol said it was engaging its lenders under its debt facilities to discuss adequate flexibility on its financial maintenance covenant thresholds in its debt agreements. 



(Reporting by Tanisha Heiberg; Editing by Kim Coghill and Louise Heavens)



This article was first published on Reuters Africa <a href="https://af.reuters.com/article/investingNews/idAFKBN21419C-OZABS">https://af.reuters.com/article/investingNews/idAFKBN21419C-OZABS</a> and is republished with its permission.

Sasol aims to generate $6 billion to boost balance sheet

Key Points



<ul class="wp-block-list"><li>Over the last 48 hours, three biotech companies, in particular, have been thrust into the spotlight for their promise: BioNTech, CureVac and Moderna.</li></ul>



<ul class="wp-block-list"><li>All three of these firms specialize in messenger RNA (mRNA) therapeutics.</li></ul>



<ul class="wp-block-list"><li>These mRNA molecules are used to instruct the body to produce its own immune response to fight a range of different diseases.</li></ul>



The race is on to develop an immunization against COVID-19.&nbsp;



Dozens of companies and public labs around the world are working to develop a vaccine to prevent the spread of the flu-like virus. Over the last 48 hours, three biotech companies, in particular, have been thrust into the spotlight for their promise: BioNTech, CureVac and Moderna.



All three of these firms specialize in messenger RNA (mRNA) therapeutics. These mRNA molecules are used to instruct the body to produce its own immune response to fight a range of different diseases. This type of vaccine can potentially be developed and produced more quickly than traditional vaccines.



Moderna is a Massachusetts-based biotech company working with the U.S. National Institutes of Health (NIH). It kicked off its first trial Monday in Seattle, Washington.&nbsp;



This is called a “phase one” study and is being conducted by the NIH. Moderna is also preparing for a potential “phase two” study that it would conduct itself. Moderna shares rose 27% in Monday’s trading session.



BioNTech, meanwhile, is a German biotech company which recently announced two strategic partnerships to advance development of a vaccine. It formed a collaboration with Fosun Pharma to advance efforts in China, and with Pfizer to do the same outside China.&nbsp;



Berenberg bank analysts say they are impressed with the company’s efforts to rapidly enter into an alliance with a top pharma company in China and they view it as an important validation of BioNTech’s mRNA technology platform.&nbsp;



“BioNTech appears best positioned in the COVID-19 race owing to its diversified mRNA platform, delivery information and manufacturing capacity,” Berenberg said in a research note.



CureVac is an unlisted German company which aims to start testing an experimental vaccine on humans this summer. After reportedly getting caught in the political crossfire between Germany and the U.S., the European Commission pledged 80 billion euros of financial support to help them get a product out in Europe.&nbsp;



On Monday, CureVac noted it “is working on expanding its manufacturing capacities to be able to provide up to billions of doses for outbreak situations like Covid-19.”



As evidenced by these companies, partnerships are key to developing and manufacturing vaccines for the public. Both public-private partnerships as well as partnerships between the traditional pharmaceutical giants and smaller biotech players can be critical to getting these vaccines from trial to market.&nbsp;



However, the jury is still out on what type of therapeutic approach will work best. Barclays pharmaceutical research team noted that while mRNA vaccines remain unproven, they are likely to dominate the shorter-term headlines given faster development timelines and rapid early progress.&nbsp;



Ultimately, the Barclays team believes these novel vaccines are likely to be superseded by more conventional approaches over time.



(Report by Julianna Tatelbaum)



This article was first published on CNBC <a href="https://www.cnbc.com/2020/03/17/hopes-of-a-coronavirus-vaccine-mount-as-three-key-biotech-players-make-progress.html">https://www.cnbc.com/2020/03/17/hopes-of-a-coronavirus-vaccine-mount-as-three-key-biotech-players-make-progress.html</a> and is republished with its permission.

Hopes of a coronavirus vaccine mount as three key biotech players make progress

NAIROBI/ADDIS ABABA (Reuters) &#8211; More African nations confirmed their first cases of the coronavirus and shut borders amid fears of the disease’s impact on fragile health systems, as Chinese billionaire and Alibaba co-founder Jack Ma pledged to donate over 1 million testing kits to the continent.



Thirty African countries &#8211; more than half the continent &#8211; are now treating nearly 400 patients with coronavirus, after Tanzania, Liberia, Benin and Somalia said they registered their first cases. 



Africa had until recently been spared the rapid spread of COVID-19, which has infected at least 180,000 people worldwide and caused over 7,000 deaths. But health experts are concerned the continent’s often dilapidated health infrastructure will struggle to cope as cases mount. 



“We cannot ignore the potential risk to Africa and assume this continent of 1.3 billion people will blissfully escape the crisis. The world cannot afford the unthinkable consequences of a COVID-19 pandemic in Africa,” Ma’s foundation said in a statement. 



The foundation will send 1.1	million testing kits, 6 million masks and 60,000 protective suits and face shields to Ethiopia for distribution to Africa’s 54 nations, it said. 



Earlier on Monday, the World Bank said it had committed $60 million to Kenya to help the East African nation battle the outbreak. 



Some countries on the continent, such as conflict-hit Somalia, depend on donors to support basic public health facilities. 



Somalian Health Minister Fawziya Abikar Nur said the ministry had quarantined and tested four Somalis who came from China last week, and one had tested positive for the respiratory disease. International flights to Somalia were suspended for two weeks, the aviation minister said. 



In West Africa, the small and impoverished nation of Liberia announced its first case. Liberia was devastated by a 2014 Ebola epidemic that killed 4,000 people, and its healthcare system has remained underfunded despite promises of investment. 



Benin, considered a relatively stable democracy in the turbulent West African region, also announced its first case. The Health Ministry said the Beninois national was being held in an isolation ward in the capital after returning from Belgium and Burkina Faso on March 11. 



The Health Ministry in the East African nation of Tanzania also confirmed its first case, a Tanzanian woman who had travelled to Denmark, Sweden and Belgium. She had her temperature taken at the airport but had no fever and was allowed to pass, but later felt unwell at her hotel, the ministry said. [L8N2B913C] 



Also on Monday, Rwanda, Burkina Faso, Ethiopia, Senegal and Cameroon all reported more cases and South African Finance Minister Tito Mboweni said his nation, which has 62 cases so far, may need to raid other government departments for funds to fight the disease. He did not provide any figures. 



<h3 class="wp-block-heading">CRACKDOWN AS BORDERS CLOSE </h3>



Many African nations, including some without reported cases, have ordered tougher control measures, including bans on public gatherings, halting flights and closing schools and universities. 



In northern Africa, Tunisia said it would suspend international flights and close its land border in an effort to contain the spread of the virus. 



Botswana, in southern Africa, said on Monday it would bar entry to travellers from 18 high-risk countries, including China, Britain, the United States, Iran, France and Italy. 



In West Africa, Senegal said it would suspend flights to and from France, Italy, Spain, Belgium and Portugal, as well as Tunisia and Algeria, for a period of 30 days. 



Ivory Coast said it would bar entry to travellers from countries with over 100 cases, although Ivorian citizens and residents would be allowed to return if they went into quarantine for 14 days. It also closed schools, nightclubs and cinemas and banned gatherings of over 50 people, according to a national security council statement. 



Ethiopia, Africa’s second-largest nation, joined the growing list of countries that closed schools for two weeks, suspended all large gatherings and cancelled all sports events, Prime Minister Abiy Ahmed’s office said. 



Government buses will give people free rides to curb overcrowding in the public transport system, a statement said. 



In Central Africa, Congo Republic said it would suspend all flights from high-risk countries from Thursday. Neighbouring Gabon reduced the number of flights from abroad to one a week per airline and ordered restaurants to close, barring takeout and delivery. 



Nigeria’s Health Ministry said the country, Africa’s most populous, had strengthened contact tracing, stockpiled reagents used in test kits and increased testing capacity. 



Also on Monday, Kenyan police raided a clinic alleged to be selling fake coronavirus testing kits. Police detained staff and locked the facility, witnesses told Reuters journalists at the scene, after it had been advertising testing kits online. 



(Reporting by Giulia Paraviciniin Addis Ababa, Adbi Sheikh in Mogadishu, Omar Mohammed, Baz Ratner and David Lewis in Nairobi, Juliette Jabkhiro in Dakar, Clement Uwiringiyiman in Kigali; Olivia Kumwenda in Johannesburg and Elias Biryabarema in Kampala; Diadie Ba in Dakar; Christian Elion in Brazzaville; Loucoumane Coulibaly in Abidjan; Gerauds Wilfried Obangome in Libreville; Writing by George Obulutsa, Katharine Houreld and Alessandra Prentice; Editing by William Maclean, Steve Orlofsky and Peter Cooney)



This article was first published on Reuters Africa <a href="https://af.reuters.com/article/topNews/idAFKBN214194-OZATP">https://af.reuters.com/article/topNews/idAFKBN214194-OZATP</a> and is republished with its permission.

More African countries confirm first coronavirus cases as Jack Ma pledges aid

Key Points



<ul class="wp-block-list"><li>IEA Executive Director Fatih Birol and OPEC Secretary General Mohammed Barkindo expressed “deep concerns” about the coronavirus pandemic on Monday.</li></ul>



<ul class="wp-block-list"><li>They singled out public sector spending in vital areas such as health care and education as being especially vulnerable.</li></ul>



<ul class="wp-block-list"><li>OPEC’s Barkindo and the IEA’s Birol did not address Russia specifically in their joint statement, but both “underscored the importance of market stability, as the impacts of extreme volatility are felt by producers.”</li></ul>



Developing countries’ oil and gas income could fall to their lowest levels in more than two decades if current energy market conditions persist, the IEA and OPEC have warned in a rare joint statement. 



IEA Executive Director Fatih Birol and OPEC Secretary General Mohammed Barkindo expressed “<a href="https://www.iea.org/news/iea-executive-director-and-opec-secretary-general-discussed-the-current-situation-in-global-oil-markets" target="_blank" rel="noreferrer noopener">deep concerns</a>” about the coronavirus pandemic on Monday, warning it could have “potentially far-reaching economic and social consequences.” 



Birol and Barkindo said they expect developing countries to see their oil and gas income fall by 50% to 85% in 2020.



They singled out public sector spending in vital areas such as health care and education as being especially vulnerable. 



International benchmark&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=@LCO.1">Brent</a>&nbsp;crude traded at $29.91 Tuesday morning, down around 0.7%, while&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=@CL.1">U.S. West Texas Intermediate</a>&nbsp;(WTI) stood at $28.98, more than 1% higher.



Oil prices <a href="https://www.cnbc.com/2020/03/16/oil-drops-more-than-6percent-breaking-below-30.html">slid 10% in the previous session</a>, as the coronavirus continues to spread worldwide and amid an ongoing price war between OPEC kingpin Saudi Arabia and non-OPEC leader Russia.



Crude futures have more than halved since climbing to a peak in January. 



<h2 class="wp-block-heading">‘Market stability’ </h2>



On Monday, Saudi Arabia’s state-owned oil giant Saudi Aramco said it would likely continue with a planned oil production hike from April into May, reportedly suggesting it was “very comfortable” with an oil price of $30 a barrel. 



Russia, which refused to sign up to OPEC’s proposal of deeper production cuts earlier this month, has claimed it can withstand lower oil prices for as long as a decade. 



OPEC’s Barkindo and the IEA’s Birol did not address Russia specifically in their joint statement, but both “underscored the importance of market stability, as the impacts of extreme volatility are felt by producers.” 



They agreed to “remain in close contact on the matter” and continue their regular consultations on oil market developments.



<figure class="wp-block-embed-youtube wp-block-embed is-type-video is-provider-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="Oil producing countries like Iraq facing fiscal strain, IEA&#039;s Birol says | Squawk Box Europe" width="500" height="281" src="https://www.youtube.com/embed/chxCdKDTt9g?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div></figure>



The IEA, which advises industrialized nations on energy issues, has <a href="https://www.cnbc.com/2020/03/12/oil-the-losers-of-the-price-war-between-saudi-arabia-and-russia.html">previously warned</a> long-time allies of de facto OPEC leader Saudi Arabia could be the worst hit from a sharp drop in oil prices. 



Last week, Birol <a href="https://www.cnbc.com/2020/03/12/oil-the-losers-of-the-price-war-between-saudi-arabia-and-russia.html">told CNBC</a> that countries like Iraq, Algeria and Nigeria — all OPEC producers — were in a “very, very difficult situation” and would require support from the rest of the world. 



Iraq, OPEC’s second-largest producer, is thought to be particularly exposed to an all-out price war because it has one of the least diversified economies of the producer group — despite relatively low production costs.



(Report by Sam Meredith)



This article was first published on CNBC <a href="https://www.cnbc.com/2020/03/17/opec-iea-warn-some-nations-could-lose-up-to-85percent-of-oil-and-gas-income.html">https://www.cnbc.com/2020/03/17/opec-iea-warn-some-nations-could-lose-up-to-85percent-of-oil-and-gas-income.html</a> and is republished with its permission.

OPEC and IEA warn developing countries could lose up to 85% of oil and gas income this year

Key Points



<ul class="wp-block-list"><li> The Dow and S&amp;P 500 on Monday suffered their worst plunge since the “Black Monday” crash of 1987, Dow futures hit their “limit up” level of 800 point gains on Tuesday as volatility continues to dominate markets.</li></ul>



<ul class="wp-block-list"><li>U.S. retail sales figures for February are due at 8:30 a.m. ET, before industrial and manufacturing production readings at 9:15 a.m.</li></ul>



<a href="https://www.cnbc.com/bonds/">U.S. government debt prices</a> were lower Tuesday morning as investors hope for a bottoming out following Monday’s historic losses on Wall Street.



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" src="https://www.cnbcafrica.com/wp-content/uploads/2020/03/US-Treasury.png" alt="" class="wp-image-363394" width="1072" height="549" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/03/US-Treasury.png 753w, https://cms.cnbcafrica.com/wp-content/uploads/2020/03/US-Treasury-300x154.png 300w" sizes="auto, (max-width: 1072px) 100vw, 1072px" /></figure>



At around 3:00 a.m. ET, the yield on the benchmark <a href="https://www.cnbc.com/quotes/?symbol=US10Y">10-year Treasury note</a>, which moves inversely to price, was higher at around 0.7843%, while the yield on the <a href="https://www.cnbc.com/quotes/?symbol=US30Y">30-year Treasury bond</a> was up slightly at 1.3482%.



The <a href="https://www.cnbc.com/quotes/?symbol=.DJI">Dow</a> and <a href="https://www.cnbc.com/quotes/?symbol=.SPX">S&amp;P 500</a> on Monday suffered their <a href="https://www.cnbc.com/2020/03/15/traders-await-futures-open-after-fed-cuts-rates-launches-easing-program.html">worst plunge since the “Black Monday” crash</a> of 1987, despite the Federal Reserve’s announcement of an emergency $700 billion quantitative easing program and a further 100 basis point cut to interest rates.



However, Dow futures hit their “limit up” level of 800 point gains on Tuesday as markets look set for another volatile week of trading amid the rapid spread of the <a href="https://www.cnbc.com/2020/03/17/coronavirus-latest-updates.html">coronavirus pandemic</a>.



Confirmed cases have now surpassed 182,000, with more than 7,000 deaths, according to Johns Hopkins University, as governments around the world have begun to close their borders and enforce lockdowns.



In the U.S., 4,661 cases have now been confirmed with 85 deaths, with New York Mayor Bill de Blasio calling for a “wartime mentality” to contain the outbreak.



On the data front, U.S. retail sales figures for February are due at 8:30 a.m. ET, before Redbook data for last week at 8:55 a.m. and February’s industrial and manufacturing production readings at 9:15 a.m.



There are no Treasury auctions scheduled for Tuesday.



(Report by Elliot Smith)



This article was first published on CNBC <a href="https://www.cnbc.com/2020/03/17/treasury-yields-rise-as-stocks-search-for-modest-recovery-after-mondays-crash.html">https://www.cnbc.com/2020/03/17/treasury-yields-rise-as-stocks-search-for-modest-recovery-after-mondays-crash.html</a> and is republished with its permission.

US Treasury yields rise as stocks search for modest recovery after Monday’s crash

NAIROBI/ADDIS ABABA (Reuters) &#8211; Kenyan authorities raided a shop on Monday that was alleged to be selling fake coronavirus testing kits, as the World Health Organisation confirmed there were at least 327 cases on the African continent.



Police detained staff and locked the facility, witnesses told Reuters journalists at the scene, after the shop had been advertising testing kits online. 



In West Africa, the small and impoverished nation of Liberia announced its first case on Monday, meaning that 27 African nations are now treating patients with coronavirus. The disease has killed 6,509 people and infected almost 170,000 people worldwide, according to a Reuters tally. 



Ethiopia, Africa’s second-largest nation, joined the growing list of countries that closed schools for two weeks, suspended all large gatherings and cancelled all sports events, Prime Minister Abiy Ahmed’s office said. 



Free rides will be available on government buses to curb overcrowding in the public transport system, a statement said. 



“The Prime Minister calls upon all to maintain calm and equip themselves with accurate information from the Ministry of Health,” Abiy’s office said. 



Nigeria’s health ministry said the country, Africa’s most populous, had taken additional measures including strengthening contact tracing, stockpiling reagents used in test kits and increasing testing capacity. 



Many African nations, including some without reported cases, have ordered tougher control measures, including bans on public gatherings, halting flights and closing schools and universities.



South African Finance Minister Tito Mboweni said on Monday that despite having some money available for coronavirus response through the National Disaster fund, the government may need to earmark further funding. 



“As the situation develops we will need to set aside further funding, that means we will have to reduce programmes throughout the government system by reducing the allocated amounts,” Mboweni said at a conference outlining new measures to contain the outbreak. He did not provide any figures. 



The number of cases in Rwanda increased to five on Monday, and Burkina Faso’s health ministry said that eight new coronavirus cases had been confirmed, bringing the total there to 15 since March 9. [nL8N2B90NF] 



(Reporting by Giulia Paravicini, Baz Ratner and David Lewis in Nairobi, Juliette Jabkhiro in Dakar, Clement Uwiringiyiman in Kigali; Olivia Kumwenda in Johannesburg and Elias Biryabarema in Kampala; Writing by George Obulutsa; Editing by Katharine Houreld and Giles Elgood)



This article was first published on Reuters Africa <a href="https://af.reuters.com/article/topNews/idAFKBN2131LL-OZATP">https://af.reuters.com/article/topNews/idAFKBN2131LL-OZATP</a> and is republished with its permission.

Kenya raids shop selling fake coronavirus kits as Liberia confirms first case

NAIROBI (Reuters) &#8211; The World Bank said on Monday it had committed $60 million to Kenya to help the East African nation battle the coronavirus outbreak that has spread to at least 30 countries on the continent. 



The funding will improve surveillance, laboratory services, isolation units, equipment, supplies and communication to help mitigate the virus in Kenya, the World Bank said on Twitter. 



Kenya, East Africa’s richest economy, has confirmed three cases of the COVID-19 disease thus far. 



(Reporting by Omar Mohammed; editing by George Obulutsa; Editing by Alex Richardson)



This article was first published on Reuters Africa <a href="https://af.reuters.com/article/topNews/idAFKBN2132KN-OZATP">https://af.reuters.com/article/topNews/idAFKBN2132KN-OZATP</a> and is republished with its permission.

World Bank offers $60 mln to Kenya to fight coronavirus outbreak

JOHANNESBURG (Reuters) &#8211; South African hotel and casino operator Sun International is already handling cancellation of conference bookings and events by clients, CEO Anthony Leeming said on Monday, as companies rush to contain the spread of the coronavirus. 



Late on Sunday, South African president Cyril Ramaphosa declared a national state of disaster as he announced a range of measures to contain the outbreak that has so far infected 61 and showed the first signs of internal transmission. 



Measures to be taken include travel bans from countries such as Italy, Germany, China and the United States. The government will also prohibit gatherings of more than 100 people and cancel large events and celebrations, Ramaphosa said. 



Even before the declaration, Sun International had started seeing the impact of travel restrictions, Leeming told Reuters over the phone. 



“With travel restrictions we’ve definitely lost all international business and conference group bookings are cancelling left right and centre,” he said. 



“With the President’s announcement, we’re going to have all conferencing cancelled for the next couple of months. So that’s the real impact on the hospitality side.” 



Events such as music concerts that are usually held at its Times Square arena and Sun City resort have also been called off. Leeming said this will not be a huge loss for the operator. 



On the casino side, Sun International has not yet seen a significant slow down in foot traffic but Leeming expects “a little bit of slowdown” as people avoid going out. 



<h3 class="wp-block-heading">ONLINE SPORTS BETTING </h3>



In line with exploring new growth opportunities, Sun International will launch an online sports betting platform in the next month or two in Peru, Leeming told Reuters. 



“Then that will quickly roll-out in Panama where we have an online sports betting license and then we can roll it out quite quickly if we can secure a license in Brazil and Argentina,” he said. 



Sun International reported a 91% jump in adjusted headline earnings per share, the main profit measure in South Africa, for the year ended Dec. 31, to 605 cents per share from 316 cents per share a year ago due to lower interest and depreciation and a significantly lower tax rate. 



Total income rose by 4% to 17.2 billion rand ($1.05 billion), primarily driven by above-market organic growth from key operations in South Africa and the impact of acquisitions made in Latin America during the prior year. 



 ($1 = 16.4071 rand) 



(Reporting by Nqobile Dludla; Editing by Himani Sarkar and Pritha Sarkar)



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Conferences, events cancelled at Sun International over virus fears

JOHANNESBURG (Reuters) &#8211; South Africa’s Taste Holdings is in the process of placing its food businesses into voluntary liquidation after a failed attempt to offload its Domino’s Pizza franchise.



Taste’s move to liquidate the business comes after South Africa entered its second recession in two years in the final quarter of last year. 



It will see 770 employees lose their jobs, while 55 stores owned by the company have closed, said Taste, whose food businesses own and license Domino’s Pizza franchises in South Africa. 



In February last year Taste, which has been facing poor retail sales, estimated it required more than 700 million rand ($42 million) to achieve a positive cash flow and expand its food businesses which also included Starbucks store franchises. 



But despite raising 132 million rand via a rights offer, it failed to secure the required investment. In November it said it would sell its Starbucks and Domino’s Pizza franchises in South Africa, retreating from a food industry that has been hit hard by the sluggish local economy, whose woes have been compounded by the global coronavirus outbreak.



However, Taste on Monday said a deal to dispose of its Domino’s franchise business could not be concluded on terms acceptable to all parties. 



“Domino’s Pizza LLC was extensively involved in finding a buyer for our licence and approached other franchisees in their global network as potential suitors,” Taste Holdings Chief Executive Duncan Crosson said. 



“However, discussions with three master franchise partners, as well as various global suitors, finally collapsed this week, triggering the voluntary liquidation decision.” 



It added that it has received no communication on the date of cancellation of the franchising licence, “the group retains the regional franchising licence until further notice”. 



Following the liquidation of Taste’s food businesses &#8211; Taste Food Franchising Proprietary, Taste Commissary Proprietary and Taste Food Trading 1 Proprietary Ltd &#8211; the company will have to fully impair the remaining intercompany loans, with the units valued at about 450 million rand ($27.38 million).



Taste Food Franchising Proprietary owns and licenses Domino’s Pizza franchises in South Africa. 



($1 = 16.6449 rand) 



(Reporting by Shanima A in Bengaluru and Nqobile Dludla in Johannesburg; Editing by Devika Syamnath and Pravin Char)



This article was first published on Reuters Africa <a href="https://af.reuters.com/article/investingNews/idAFKBN21324E-OZABS">https://af.reuters.com/article/investingNews/idAFKBN21324E-OZABS</a> and is republished with its permission.

Taste Holdings to liquidate food business, hitting 770 jobs

Key Points



<ul class="wp-block-list"><li>JPMorgan Chase is telling all its employees globally to work from home if possible.</li></ul>



<ul class="wp-block-list"><li>The New York-based bank, which had 256,981 workers at the end of last year, is expanding on a policy it began last week for New York-metro area employees as it copes with the coronavirus pandemic.</li></ul>



<ul class="wp-block-list"><li>“Effective immediately, we are asking all managers globally to allow employees to work from home to the extent feasible,” the bank’s operating committee said Sunday in a staff email. “This will further facilitate social distancing in the communities we call home while continuing to serve our clients and customers.”</li></ul>



<a href="https://www.cnbc.com/quotes/?symbol=JPM">JPMorgan Chase</a>&nbsp;is telling all its employees globally to work from home if possible.



The New York-based bank, which has 256,981 workers and operates in 60 countries, is expanding on a policy it began last week <a href="https://www.cnbc.com/2020/03/12/jpmorgan-chase-tells-managers-to-send-up-to-half-of-ny-metro-employees-to-work-from-home-in-shifts.html">for New York-metro area employees</a> as it copes with the spread of the coronavirus pandemic.&nbsp;



“Effective immediately, we are asking all managers globally to allow employees to work from home to the extent feasible,” the bank’s operating committee said Sunday in a staff email. “This will further facilitate social distancing in the communities we call home while continuing to serve our clients and customers.”



The move, the latest escalation of tactics taken by large financial firms, leaves JPMorgan’s traders, call center workers and branch personnel as among the only workers still working out of bank facilities. JPMorgan is the biggest U.S. bank by assets.&nbsp;



“We know many of you need to continue to work on site because of your customer-facing roles or other jobs that cannot be done from home — particularly in our branches and call centers,” the bank said. “We are actively reviewing how we can best support you at this time, and will share more information with you very soon.&#8221;



By Hugh Son



This article was first published on CNBC <a href="https://www.cnbc.com/2020/03/16/jpmorgan-tells-employees-around-the-world-to-work-from-home.html">https://www.cnbc.com/2020/03/16/jpmorgan-tells-employees-around-the-world-to-work-from-home.html</a> and is republished with its permission.

JPMorgan tells employees around the world to work from home if possible

Key Points



<ul class="wp-block-list"><li>The combination of an unfolding price war between oil production giants Russia and Saudi Arabia and concern over a potential demand shock from the global coronavirus pandemic have hammered oil prices in recent weeks.</li></ul>



Demand for oil will likely be negative in 2020, adding further downward pressure to plummeting prices, according to BP CFO Brian Gilvary.



Around the time of its earnings report in early February, the energy giant anticipated that demand would weaken by around 300,000 to 500,000 barrels a day.



But on Monday, Gilvary told CNBC’s “Squawk Box Europe”: “If you ask me that question today, it is more like flat demand year-on-year, maybe even negative demand &#8211; we will probably likely see negative demand this year.”



Negative demand for a particular product exists when consumers dislike it to the extent that they would be prepared to pay more than the price of the product in order to avoid having to buy it.



The combination of an <a href="https://www.cnbc.com/2020/03/12/oil-the-losers-of-the-price-war-between-saudi-arabia-and-russia.html">unfolding price war between oil production giants Russia and Saudi Arabia</a> and concern over a potential demand shock from the <a href="https://www.cnbc.com/2020/03/16/coronavirus-live-updates-italy-death-toll-jumps.html">global coronavirus pandemic</a> have hammered oil prices in recent weeks.



International benchmark <a href="https://www.cnbc.com/quotes/?symbol=@LCO.2">Brent crude</a> was trading down 9.3% at around $30.70 per barrel on Monday afternoon while <a href="https://www.cnbc.com/quotes/?symbol=@CL.1">U.S. West Texas Intermediate</a> (WTI) dipped below $30 a barrel to $29.50, down 6.8%. So far this year, Brent and WTI are down 53.8% and 52% respectively.



The tension between OPEC kingpin Saudi Arabia and non-OPEC leader Russia arose after a recent breakdown in negotiations over oil production cuts in response to the outbreak. Riyadh subsequently vowed to ramp up production at sharply discounted prices for April.



Gilvary suggested that activity beyond this year would depend on what “the new normal” becomes for businesses.



“We have got a demand side shock and then you also have the combined issue of a significant amount of oil now coming on the market in April, so the direction of the oil price can only go in one direction, and that is down,” he said.



Gilvary said that at present, BP was starting from a “much stronger financial position” in terms of costs and capital flexibility than when Brent prices fell to $28 per barrel in 2016.



“In our targets for 2021, we had the company balanced at around $40 per barrel Brent, which was the key five-year target we put in place four years ago. We are on track for that,” Gilvary said, adding that BP’s capital was currently running at around $15 billion and could be taken down by up to 20% this year if necessary.



This article was first published on CNBC <a href="https://www.cnbc.com/2020/03/16/as-oil-prices-tank-bp-cfo-warns-demand-could-be-negative-in-2020.html">https://www.cnbc.com/2020/03/16/as-oil-prices-tank-bp-cfo-warns-demand-could-be-negative-in-2020.html</a> and is republished with its permission.

As oil prices tank, BP CFO warns demand could be negative in 2020

HARARE (Reuters) &#8211; Zimbabwe’s year-on-year inflation was 540.16% in February, statistical agency Zimstat said, as the southern African nation resumed publishing annual consumer price data it suspended last year. 



On a month-on-month basis, prices were up 13.52% during the same period compared to 2.23% during the previous month. 



The central bank forecasts the annual inflation rate to fall to 50% by the end of the year but analysts say price pressures will remain elevated due to a weak exchange rate and shortages of food following a drought. 



(Reporting by MacDonald Dzirutwe; Editing by Kim Coghill)



This article was first published on Reuters Africa <a href="https://af.reuters.com/article/investingNews/idAFKBN2130X7-OZABS">https://af.reuters.com/article/investingNews/idAFKBN2130X7-OZABS</a> and is republished with its permission.

Zimbabwe inflation 540.16% year-on-year in February – Zimstats

JOHANNESBURG (Reuters) &#8211; The board of South Africa’s Old Mutual likely wants to have appointed a new chief executive within a few months, interim CEO Iain Williamson said on Monday, when the insurer announced its full-year results and its shares dropped 8.5%. 



Old Mutual said full-year adjusted profit rose 7%, versus the already flagged expected increase of up to 9% &#8211; which it attributed mostly to higher returns on invested capital due to an improved market, as opposed to performance. 



The company’s share drop comes after the stock sunk in 2019 partly due to a spat with former boss Peter Moyo over his abrupt sacking in June following a dispute over a conflict of interest. 



Williamson said that while the hunt for a new CEO was underway, he deferred questions on what stage the process was at and possible time frame to the board. 



“I suspect they would like it done in the next few months,” he said 



After initially winning a series of victories, Moyo’s case was dismissed in January &#8211; a decision he is appealing. 



That marked a much-needed win for 175-year-old Old Mutual, whose handling of the matter was criticised by some shareholders and customers, denting the reputation of one of South Africa’s oldest companies. 



Williamson said this had some impact on its ability to win new business, with the brand’s image hurt by the issue, though it was hard to isolate this from the much larger impact of a tough economy in South Africa. 



Old Mutual’s results from operations &#8211; its measure of operating profit &#8211; fell 2%, verses a potential decline of as much as 5% flagged in a trading statement earlier in March. 



The insurer pointed to economic deterioration in its home market, by far its largest and which tipped into recession this year. Many of its markets outside of South Africa also suffered. 



Its adjusted headline earnings per share for the year to Dec. 31 stood at 209.3 cents ($0.1283), versus 195.1 cents a year earlier. Headline earnings per share is the main profit measure in South Africa. 



Old Mutual adjusts its figure to account for factors including the break up of its former conglomerate structure into four separate entities &#8211; a U.S. asset manager, British wealth manager, African financial services division and a bank &#8211; that executives said would fare better alone. 



Its shares regained some ground after dropping 8.5% at market open, and were down 5.92% by 0722 GMT, slightly outperforming the local stock market which was down 6%. 



($1 = 16.3118 rand) 



(Reporting by Emma Rumney; Editing by Shailesh Kuber and Christopher Cushing)



This article was first published on Reuters Africa <a href="https://af.reuters.com/article/investingNews/idAFKBN2130WZ-OZABS">https://af.reuters.com/article/investingNews/idAFKBN2130WZ-OZABS</a> and is republished with its permission.

Old Mutual wants new CEO within months; shares drop after earnings

MONROVIA (Reuters) &#8211; Liberia has recorded its first coronavirus case, a ministry official said on Monday. 



“I can confirm that we have a case and we are managing it,” Chief Medical Officer Francis Kateh said. 



He did not provide any further details on the patient’s identity. 



President George Weah is expected to make a speech later in the day. 



Liberia is one of the world’s poorest countries where most people live without reliable access to electricity and clean water. The 2013-16 Ebola outbreak killed more than 4,800 people in Liberia, including more than 150 healthcare workers. 



Concerns are growing about the ability of some African nations to meet the logistical and financial challenges posed by the fast-spreading coronavirus. 



(Reporting by James Giayhue; Writing by Juliette Jabkhiro; Editing by Alex Richardson and Angus MacSwan)



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article

Nigerian annual inflation edges up to 12.20% in February

“Preparing for war”: Africans scramble for groceries

Nigeria to delay non-critical spending, defer Eurobond sale

Sasol aims to generate $6 billion to boost balance sheet

Hopes of a coronavirus vaccine mount as three key biotech players make progress

More African countries confirm first coronavirus cases as Jack Ma pledges aid

OPEC and IEA warn developing countries could lose up to 85% of oil and gas income this year

US Treasury yields rise as stocks search for modest recovery after Monday’s crash

Kenya raids shop selling fake coronavirus kits as Liberia confirms first case

World Bank offers $60 mln to Kenya to fight coronavirus outbreak

Conferences, events cancelled at Sun International over virus fears

Taste Holdings to liquidate food business, hitting 770 jobs

JPMorgan tells employees around the world to work from home if possible

As oil prices tank, BP CFO warns demand could be negative in 2020

Zimbabwe inflation 540.16% year-on-year in February – Zimstats

Old Mutual wants new CEO within months; shares drop after earnings

Liberia reports first coronavirus case

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Advertise With Us

article

Nigerian annual inflation edges up to 12.20% in February

“Preparing for war”: Africans scramble for groceries

Nigeria to delay non-critical spending, defer Eurobond sale

Sasol aims to generate $6 billion to boost balance sheet

Hopes of a coronavirus vaccine mount as three key biotech players make progress

More African countries confirm first coronavirus cases as Jack Ma pledges aid

OPEC and IEA warn developing countries could lose up to 85% of oil and gas income this year

US Treasury yields rise as stocks search for modest recovery after Monday’s crash

Kenya raids shop selling fake coronavirus kits as Liberia confirms first case

World Bank offers $60 mln to Kenya to fight coronavirus outbreak

Conferences, events cancelled at Sun International over virus fears

Taste Holdings to liquidate food business, hitting 770 jobs

JPMorgan tells employees around the world to work from home if possible

As oil prices tank, BP CFO warns demand could be negative in 2020

Zimbabwe inflation 540.16% year-on-year in February – Zimstats

Old Mutual wants new CEO within months; shares drop after earnings

Liberia reports first coronavirus case

News Tips

Advertise With Us

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