The Daily Economic and Business News Update, Thursday, 13 June 2019

Group Corporate Strategy ZB Financial Holdings Limited 1st Floor, 21 Natal 21 Natal Road, Belgravia, Box 3198, Harare

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Foreign Currency, Money, Equities & Commodities Markets Overview

Foreign Currency Markets International Stock Markets Year–On-Year Inflation Rates Currency 13-06-19 12-06-19 Index 12-06-19 11-06-19 Change Country Rate USD/RTGS 6.0000 5.8500 Dow Jones 26,004.83 26,048.51 -0.17% Zimbabwe 75.86%Apr USD/ ZAR 14.9121 14.6943 NASDAQ 7,792.72 7,822.57 -0.38% South Africa 4.4%Apr Apr EUR/ USD 1.1298 1.1336 FTSE All Share 4,024.80 4,041.37 -0.41% Malawi 9.1% GBP/USD 1.2681 1.2725 Nikkei 225 21,014.55 21,179.82 -0.78% Zambia 16 8.0% May USD /BWP 10.8932 10.8225 DAX 12,115.68 12,155.81 -0.33% Botswana 2.5% Apr Old Mutual Implied Exchange Rates Mozambique 2.42%May Currency 12-06-19 11-06-19 May 2019 Apr 2019 Mar 2019 Feb 2019 Namibia 4.5% Apr USD/ZWL 9.4034 9.4256 9.7191 6.1291 5.4150 4.4057 Kenya 5.49% May ZWL/ZAR 1.5914 1.5801 1.2609 1.2938 1.3073 3.1868 Ghana 9.5% Apr Regional Stock Markets Nigeria 11.37%Apr Index 12-06-19 11-06-19 Change Interest rates 12-06-19 Brazil 4.66%May ZSE Industrial Index 646.85 639.54 +1.14% SARB Prime Rate 10.25% China 2.7%May ZSE Mining Index 248.51 248.51 0.00% BOB Prime Rate 5.00% Canada 2.0%Apr ZSE All Share 193.81 191.65 +1.13% LIBOR One Month 2.411% Germany 1.4%May JSE All Share 58,710.55 58,767.63 -0.10% LIBOR Three Month 2.450% Australia 1.3%Apr Ghana SE-CI 2,422.68 2,422.03 +0.03% LIBOR One Year 2.343% U.K. 2.1%Apr Nairobi All Share 150.46 150.22 +0.16% Federal Discount Rate 1.000% Japan 0.9% Apr Nigeria All Share N/A 30,099.83 N/A Federal Prime Rate 3.500% U.S.A. 2.0%Apr Last Daily YTD YTD Issued 12-06-19 11-06-19 Traded Change Change Change Zimbabwe Market Cap. ZSE Counter (US$) (US$) (US$) (US$) (US$) (%) Shares (US$) ZB Financial Holdings 0.49 0.49 0.49 0.000 +0.13 +36.11% 175,190,642 85,843,414.58 First Capital Bank Limited 0.08 0.08 0.08 0.000 +0.02 +33.33% 2,156,260,176 172,500,814.08 CBZ Holdings Limited 0.45 0.45 0.45 0.000 +0.3 +200.0% 687,231,691 309,254,260.95 Econet Wireless Zimbabwe 1.7448 1.7128 1.7128 +0.032 +0.8448 +93.9% 2,590,577,000 4,520,038,749.60 FBC Holdings Limited 0.505 0.505 0.505 0.000 +0.305 +152.5% 671,949,927 339,334,713.14 Fidelity Life Assurance 0.11 0.11 0.11 0.000 0.000 0.00% 108,923,291 11,981,562.01 Get Bucks 0.12 0.12 0.12 0.000 +0.083 +224.3% 1,093,567,251 131,228,070.12 NMBZ Holdings Limited 0.275 0.275 0.275 0.000 +0.185 +205.6% 392,954,830 108,062,578.25 Old Mutual Plc 14 13.399 13.399 +0.601 +9.3 +197.9% 64,173,594 898,430,316.00 First Mutual Holdings 0.18 0.18 0.18 0.000 -0.015 -7.69% 690,143,060 124,225,750.80 Mashonaland Holdings 0.04 0.04 0.04 0.000 +0.0054 +15.61% 1,859,073,947 74,362,957.88 ZSE Gainers ZSE Losers 12-06-19 Previous 12-06-19 Previous Counter (US$) (US$) Change (%) Counter (US$) (US$) Change (%) MedTech 0.0034 0.0028 +21.43% Delta 3.6191 3.6266 -0.21% Simbisa 1.2200 1.1003 +10.88% Edgars 0.1650 0.1520 +8.55% Turnall 0.1100 0.1035 +6.28% International Commodity Prices +0.042% ZSE Market Data Index 12-06-19 11-06-19 Commodity 12-06-19 11-06-19 Jan 19 Jan 18 Turnover Value ($m) 6.5070 13.8814 Gold (US$/oz) 1,333.10 1,326.30 1,283.50 1,317.10 Foreign Buys ($m) 0. 2814 4.0767 Platinum (US$/oz) 810.00 815.00 792.00 942.00 Foreign Sales ($m) 2.4453 5.3262 Silver ( US$/oz) 14.750 14.715 15.470 17.150 Market Cap ($m) 25,579.20 25,279.00 Palladium ( US$/oz) 1,390.00 1,375.00 1,252.00 1,086.00 YTD Change (Market Cap) +33.30% +31.73% Brent Crude Oil (US$/barrel) 59.97 62.29 53.80 66.55

Disclaimer: This document may be legally privileged and/or confidential and has been prepared for informative purposes only. No liability whatsoever for any loss howsoever arising from the use of this review or its contents or otherwise arising in connection therewith shall be accepted by ZB Financial Holdings, any of its directors, employees, or associates. Any person who makes use of this document shall be solely responsible for making his or her own TheSundayMail investigation of the issues discussed in this report. ZB Financial Holdings accepts no responsibility whatsoever for the accuracy or completeness of the information contained in this document.

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Local Business News

1. Economist and former MDC official Eddie Cross says Zimbabwe’s economic fundamentals are now sound and there is no need for speculators to continue with their wayward behaviour on the foreign currency parallel market which is affecting the poor. In an interview with The Herald yesterday, Cross urged the Government to take stern measures to contain the forex parallel market that has brought anguish to the majority. The prevailing volatility of the parallel market is blamed on speculators for influencing the exchange rate without economic justification. Cross said if macro-economic fundamentals were constant, as the situation on the ground shows, the rates should not exceed RTGS$4 to US$1. “The currency speculators are manipulating the exchange rate and are using the opportunity created by these activities to make millions at the expense of all Zimbabweans. (Herald)

2. Swedish information communication technologies (ICTs) giant Epson Europe BV will set up office in Harare next week in response to President Mnangagwa’s pro-investment reforms under the New Dispensation. The firm will supply latest efficient technological equipment to the education sector and digitisation programme. Epson SADC region business development manager Alison Ekland said in an interview yesterday that the tech giant found the country as a viable investment destination. “As the Government of Zimbabwe has started the process of modernising schools through adoption of ICTs, we found it worthwhile to invest here,” she said. (Herald)

3. Zimbabwe Stock Exchange (ZSE) listed RioZim says construction of its 2 800 megawatts Sengwa power project will commence in the next 12 months after the mining group signed an exclusivity agreement with Chinese firm, Power China. The project, which has been on the books since the early 1990s and could not get off the ground due to lack of investment, comes as Zimbabwe is battling choking power crisis due to a mismatch in demand and supply. Zimbabwe requires 1 700MW at peak periods of demand, but only affords limited production of

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1000MW when producing optimally. This is due to reduced output at Kariba South, which is facing water issues due to the drought experienced last year, and Hwange, which frequently breaks down due to antiquated equipment. (Herald)

4. Government will soon roll out a “massive” programme for the production of table and Irish potatoes as a measure to boost the country’s food security in light of below par summer rain season that characterised the last farming season. This was revealed by Lands, Agriculture and Rural Resettlement Minister Perrance Shiri on the sidelines of the 38th Joint Meeting for Sadc Ministers responsible for Water in an interview with Namibian publication The Southern Times last week. Zimbabwe is currently harvesting its 2018/19 season crop and is expecting 750 000 metric tonnes of maize and close to 200 000 metric tonnes in small grains which will leave the country in deficit. (Herald)

5. Zanu-PF is set to host a high stakes breakfast meeting in Harare this morning to solicit the views of various stakeholders ahead of the review of the Indigenisation and Economic Empowerment Policy. The meeting is being organised by the party’s Department of Indigenisation and Economic Empowerment headed by former Industry and Commerce Minister Mike Bimha. The breakfast meeting runs under the theme, “Aligning the Indigenisation and Economic Empowerment Policy with Vision 2030”. Bimha said yesterday that the party, which is supreme to government, wanted to get perspectives of various groups of people, including the private sector, parastatals and small and medium enterprises, regards the proposed review of the empowerment policy. (Herald)

6. The Zimbabwe Energy Regulatory Authority (Zera) has assured users that petrol blending in the country is within the threshold stipulated by the law. The assurances come in the wake of complaints by sections of the motoring public that the commodity does not last amid fears that

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unscrupulous fuel retailers were blending beyond the 20% stipulated by government. But in a statement, Zera said it is routinely conducting impromptu checks at blending sites and service stations and all their checks have so far proved that dealers are sticking to the set 20% threshold. (Herald)

7. The Zimbabwe National Roads Administration (Zinara)’s combined revenues are projected to rise to $135.6 million for the current year, up from $133.3 million last year. The improvement in the roads authority’s revenues has been consistent from 2012, a period that coincides with the implementation of its computerisation system. Official figures show that Zinara’s overall revenue increased from $22 million in 2012 to $43.6 million in 2013 and to $95.1 million in 2014. In 2015, total revenues impelled further to $112.4 million, then to $118.4 million in 2016, and to $121.9 million in 2017. Revenue from licence fees – which account for the largest portion of Zinara’s revenues grew from $22.9 million in 2012 to $36.8 million in 2013 and further increased to $45.3 million in 2014. (Herald)

8. Government has expressed satisfaction with the computerisation of the Zimbabwe National Road Administration (Zinara) operations, saying the new high-end technological systems have resulted in increased revenue collection and curbing of crimes related to vehicle theft. This was revealed by Members of Parliament after touring Univern Enterprises, which partnered Zinara to computerise tolling, vehicle licensing and road transit fees. Following computerisation of the vehicle licensing system in 2012, revenue collection which was standing at $22 million jumped to $70 million in 2019, while tolling collections increased from $6 million in 2013 to $36 million in 2019. After touring Univern Enterprises’ state-of-the-art technological systems in Harare on Tuesday, chairman of the Transport and Infrastructural Development Committee, Oscar Gorerino, commended Univern Enterprises for coming up with modern innovations that had increased revenue and helped to ensure compliance by motorists. (Herald)

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9. Bata Shoe Company is seeking to raise US$400 000 to invest in poly urethane (PU) technology to produce up to 120 000 pairs of shoes per shift. Giving an overview of the firm operations during a tour by Deputy Minister of Industry and Commerce Raj Modi at the Bata factory in Gweru recently, the company’s managing director, Simon Mutisya, said the PU technology was not common in Africa. “The investment we have earmarked is the PU pouring technology and we are looking at US$400 000,” he said. “The initial run requires 60 000 pairs on a single shift or 120 000 pairs on a double shift depending on the demand and it will create jobs along the way. “Everybody is very passionate about this one because we will be the second company to have it in Africa. With PU pouring, we are able to make industrial shoes in mono colour or bi- colour sole, whatever selection that we are going to get from the customers.” (Herald)

10. Zimbabwe is moving away from an allocation economy where every businessperson and individual queued at the Reserve Bank of Zimbabwe (RBZ) to access funds for their businesses, a Cabinet minister has said. Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa said in the Second Republic, the private sector should source foreign currency and not expect support from the RBZ. She said this while addressing local editors from various stables in Harare yesterday. (Herald)

11. Government's much awaited Local Content Strategy (LCS) which was approved by Cabinet on Tuesday has set an 80% minimum threshold for all products. This strategy forms part of interventions which Government is instituting towards management of the country’s import bill, which has resulted in scarcity of foreign currency needed for the importation of key commodities such as raw materials, fuel, medicines and equipment. The import bill for the four months to April was US$1.5 billion. In working towards a local content policy to support local industrialisation, Zimbabwe is not traversing uncharted territories as the country’s biggest trading partner, South Africa, has local content thresholds for different sectors ranging from 30 to 100%. (Herald)

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12. Zimbabwe's credit only microfinances advanced loans amounting to $18.5 million in the first quarter, growing the sector’s loan book from $207.3 million as at December 31, 2018 to $225.8 million as at March 31, 2019. According to the Zimbabwe Association of Microfinance Institutions’ first quarter report, the sector registered an aggregate net profit of $4.5 million for the three months period, compared to $2.7 million recorded during the same period last year. Total income from interest and fees amounted to $30.2 million against a total cost of $25.6 million leading to an operational self-sufficiency ratio of 117% as at March 31, 2019. (NewsDay)

13. Reserve Bank of Zimbabwe governor John Mangudya says the recent pronouncements by President Mnangagwa on the local currency roadmap are consistent with the currency reforms that government, through the apex bank, has been pursuing. In an interview yesterday, Mangudya said the president’s statement was a clarion call to all Zimbabweans that the country’s currency reform is predicated on de-dollarisation as opposed to re-dollarisation and that there is great need for enhancing the value of the RTGS dollar through adherence to Statutory Instrument (SI) 33 of 2019, introduced in February this year. (DailyNews)

14. The Confederation of Zimbabwe Industries says it would support an upward electricity tariff if this will help to reduce load shedding. This comes as the country’s struggling businesses are buffeted by new headwinds including acute power shortages, rising fuel and labour costs and lack of access to cheap capital for retooling. Zimbabwe started load-shedding in mid-May due to a combination of low water levels at the dam’s hydroelectric power plant, generation constraints at other power stations and limited foreign imports. CZI said current tariffs being charges by the national power utility Zesa Holdings were not sustainable. (DailyNews)

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15. Government has approved the establishment of four gold centres around the country to increase gold deliveries to Fidelity Printers and Refiners. This comes as government has set a gold production target of 40 tonnes for 2019 after FPR last year collected 33 tonnes. And even though monthly deliveries have been ticking up following a dramatic slump in the final quarter of 2018, they remain subdued relative to last year’s numbers. (DailyNews)

16. The government’s continued currency twiddling and push for a new legal tender will not solve Zimbabwe’s deepening economic woes, analysts have warned. This comes as President Emmerson Mnangagwa has made a surprise announcement that the country would have a fresh currency by year end, a declaration which saw the recently introduced RTGS dollar taking a beating on both the formal and parallel markets. Confusingly too, Finance minister Mthuli Ncube had recently told Parliamentarians that he had been misquoted regarding Zimbabwe’ s plans to introduce new money by end-2019, highlighting the damaging policy flip-flops that continue to dog the country’s “new dispensation”. (Fingaz)

17. President Emmerson Mnangagwa’s government should encourage the wider use of the rand as part of strategies to stabilise the economy, experts have said. With Mnangagwa promising yet another local currency later this year on the back of massive price hikes, economic analysts believe the rand, as SA is Zimbabwe’s largest trading partner, could be an answer to Zimbabwe’s rising inflation and crippling cash crisis. Fingaz)

18. A Zimbabwean citrus exporter, Pellier Enterprises has petitioned the government after its thriving Smithfield Farm lemon plantations in Mazowe were invaded by a group of marauding artisanal miners, documents show. This comes as President Emmerson Mnangagwa’s government has been desperate to project an image of a property rights-respecting administration and that land invasions were a thing of the past, as part of its re-engagement

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efforts with the West. (Fingaz)

19. Premier African Minerals says it is considering divesting from Zimbabwe due to the southern African country’s risk profile. George Roach, the London Stock Exchange-listed miner’s chief executive, said Premier has value in Zulu lithium projects and will not allow the Zimbabwean situation to drag its tungsten project. (Fingaz)

20. Delta Corporation says it has suspended most of its capital investments due to Zimbabwe’s deteriorating economy. Alex Makamure, Delta’s company secretary said foreign currency shortages and a depreciating RTGS dollar, which continues to take a heavy battering against most major currencies, has made it difficult to plan. (Fingaz)

Regional News

1. South Africa’s rand edged weaker yesterday in a slow start that saw subdued flows as market makers looked for clear breaches either side of key technical levels. At 0650 GMT, the rand was 0.14% weaker at 14.6950 per dollar compared to a close of 14.6750 overnight in New York. In the previous session the rand rallied as much as 1% through the 14.80 technical support level, spurred by improving demand for emerging currencies and a better-than-anticipated manufacturing production print. (Reuters)

2. The International Monetary Fund said its board had completed the first review under Angola’s extended arrangement and approved a disbursement of $248.15 million, taking the total of such payments to about $1.24 billion. “The Angolan authorities have demonstrated strong commitment to policies under the Fund-supported program,” the IMF’s first deputy managing director and acting chair, David Lipton, said in a statement. “However, a weakened external

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environment, notably the heightened volatility in the international price of crude oil, is posing challenges to their reform efforts.” (Reuters)

3. Nigeria’s economy is expected to grow 2.7% this year, President Muhammadu Buhari said yesterday, in his first public speech since his inauguration for a second term last month. (Reuters)

4. Ethiopia is aiming to award telco licences to multinational mobile companies by the end of the year, ending a state monopoly and opening up one of the world’s last major closed telecoms markets, three people with direct knowledge of the process said. Ethiopia’s telecoms industry is considered the big prize in a push to liberalise the country’s economy launched last year by Prime Minister Abiy Ahmed because of its huge protected market serving a population of around 100 million. (Reuters)

5. Ghana and Ivory Coast have suspended forward sales of cocoa beans for the 2020/21 season as buyers and sellers are set to discuss a minimum price proposal, industry sources said. The two West African nations account for nearly two thirds of global output, yet they exert limited influence over international cocoa prices, which have stayed low in recent years due to overproduction. Representatives from the world’s top two cocoa producers are meeting in Ghana’s capital Accra to discuss farmers’ living standards. The governments are proposing a common floor price meant to address farmer incomes, which they complain are extremely low relative to the money made by big cocoa traders. (Reuters)

6. Nigerian private oil and gas company Pelfaco signed a production sharing deal with Congo

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Republic’s state energy firm on a 32-million barrel oil field on Tuesday, Congo’s oil ministry said. Pelfaco is run by Gesi Asamaowei, a little known businessman from Nigeria’s oil producing Niger Delta region who benefited from a government push to try to bring more of the energy industry in Africa’s top producer into indigenous hands. The Congolese ministry said in a statement that the field in the south of the country would last for 25 years. It gave no further details. Congo’s energy industry has staged an unexpected comeback over the past year, owing to major finds from Italy’s ENI and French oil major Total, lifting an economy hobbled by massive debts, civil unrest and graft. (Reuters)

7. Malawi, Treasury says reduced domestic revenue collection in the third quarter (January to March) of this fiscal year ending June 30 is largely due to under-collection in some of the tax lines. The explanation comes in the wake of widening budget deficit of K120 billion or 2% of gross domestic product (GDP) in the third quarter, from K96.4 billion or 1.8% of GDP in the second quarter (October to December 2018). (Mwnation)

8. Malawi is yet to fully optimise gains associated with population shift from rural to urban areas, the 2019 April National Urban Policy (NUP) report shows. Instead, the NUP argues that urbanisation has resulted in environmental, economic and social changes which do not advance, but in some cases, negatively affect livelihood and the growth of the economy. (Mwnation)

9. Namibia, The Cabinet committee on policy is examining the idea of liquidating Air Namibia as the ailing parastatal continues its descent into a financial sinkhole. Public enterprises minister Leon Jooste revealed this at a press conference in Windhoek yesterday. He said Air Namibia had been a topic of discussion since last week after the Cabinet committee on public enterprises was tasked with appointing a consultant to evaluate the airline's feasibility. The consultant was supposed to come up with a proposal on how the airline could reach break-even status in the

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next three years. (Namibian)

10. Lesotho Finance Minister Moeketsi Majoro yesterday signed two loan agreements worth US$128 million (about M1, 89 billion) for a lowlands water project and an agricultural project in Maseru. The funds are from the World Bank and the government of Japan, who were represented at the ceremony. Part of the funding (US$78 million) is for the second phase of Lesotho’s Lowlands Water Development Project (LLWDP II) which is meant to improve living standards and address water challenges for domestic and industrial use in Maputsoe and Hlotse. Surrounding areas such as Ha-Setene, Sebothoane, Ha-Lesiamo, Khanyane, Tsikoane, St Monica’s and Mpharane will also benefit from the project. (LesothoTimes)

11. The Central Bank of Nigeria (CBN) yesterday refuted reports that it had floated the naira, Nigeria's currency. The Director, Corporate Communications, CBN, Mr. Isaac Okoroafor, stated this in a text message to THISDAY, in reaction to a Bloomberg report that the bank had signalled it would float the naira and allow it to weaken past its official rate as it gradually unwinds its regime of multiple exchange rates. (AllAfrica)

12. Kenya, Treasury Cabinet Secretary Henry Rotich is preparing to table this year's budget today in the afternoon with higher taxes that will push Kenyans into tougher times ahead. Even though this year's Sh3.02 trillion budget is a 4.2% reduction compared to last year's, taxation of key commodities will still deal a blow to the average Kenyan who is already struggling with inflation. The budget estimates set the national government expenditure ceiling at 1.8 trillion with Parliament budget capped at Sh 43.8 billion. (AllAfrica)

13. Uganda, Public debt has been rising and the same applies to money allocated for refinancing.

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This has been the phenomena since 2013 and many low income developing countries have fallen victim to a rapid spike that experts have warned "might be a walk in the a wrong direction." The debt levels, which have been rising for about five years now, have subsequently amplified debt vulnerabilities across Africa, Uganda inclusive. (AllAfrica)

14. The South African Social Security Agency (SASSA) has called on social grant beneficiaries to collect their social grant monthly to avoid potential lapses. According to SASSA, the social grant lapses when beneficiaries fail to claim for a period of three consecutive months. Beneficiaries are informed in advance in the form of a letter that the social grant will lapse. Once the grant has lapsed, beneficiaries will need to apply for the restoration of the grant. "Beneficiaries have an opportunity to apply for restoration within 90 days from the date of the lapsing. (AllAfrica)

15. South African platinum producers are preparing for significant wage demands as workers eye windfall earnings from a rally in metal prices. The Association of Mineworkers and Construction Union (AMCU) is meeting its members across the country’s so-called Platinum Belt this week, before presenting demands to seven producers, including Anglo American Platinum, Sibanye Gold, and Impala Platinum Holdings Friday, Secretary General Jeffrey Mphahlele said. The largest and most militant labor organization in the industry is aware that higher palladium and rhodium prices, plus a weaker rand, have boosted miners’ profits. (NewsNow)

International News

1. The U.S. dollar gained yesterday as trade tensions and U.S. interest rate policy remained in focus after President Donald Trump expressed optimism over making a trade deal with China. The greenback has come under pressure recently as the U.S.-China trade war threatens to derail global economic growth, adding to bets that the Federal Reserve is closer to cutting interest rates. A sustained decline against the euro has not yet emerged, however, as the U.S.

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currency still benefits from relatively higher rates than in Europe. (Reuters)

2. Chinese regulators should step up support for the economy and keep ample liquidity in the financial system, Vice Premier Liu He said today, suggesting Beijing would soon unveil more policies to bolster growth amid rising U.S. trade pressure. Beijing has plenty of policy tools and is capable of dealing with various challenges, Liu said at a financial forum in Shanghai. Despite a slew of support measures and policy easing since last year, China’s cooling economy is still struggling to get back on firm footing, and last month’s sudden escalation in U.S.-Sino tensions has raised fears of a full-blown trade war that could trigger a global recession. (Reuters)

3. China may be an odd choice for investors seeking shelter from a Sino-US trade war. Yet, money managers in Asia are pouring funds into Chinese stocks as the long-term promise of a growing middle class trumps more immediate fears about tariffs. It is also a vote of confidence in Beijing's aggressive policy response to a festering Sino-US trade standoff which has hurt its economy, unsettled world financial markets and triggered fears of a global recession. (BusinessTimes)

4. Indonesia's foreign exchange reserves dropped by around US$4 billion to US$120.3 billion at the end of May due to the government's foreign debt payments as well as dividend payments by corporations, the central bank said today. It was down from US$124.3 billion at the end of April. The end-May reserves level is equal to 6.9 months of imports or 6.7 months of imports and foreign debt payments which is above an international standard of three months, Bank Indonesia (BI) said in a statement. BI expects the forex reserves to remain adequate, supported by a stable economy and good economic prospects. (BusinessTimes)

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5. London, RAGHURAM Rajan has delivered some uncomfortable economic truths in a career spanning the International Monetary Fund (IMF) and powerful positions in his native India. The question is whether Brexit Britain is ready to hear them from another foreign Bank of England (BOE) governor. The job of stewarding the United Kingdom's monetary policy and maintaining its financial stability has rarely been more political, and Mr Rajan is the only outsider among the top contenders in the running to replace Mark Carney, according to bookmakers and economists who follow the 325-year-old institution. (BusinessTimes)

6. US President Donald Trump slammed the Federal Reserve for high interest rates in a tweet on Tuesday, complaining the euro and other currencies were "devalued" against the dollar. "The Fed interest rate way too high, added to ridiculous quantitative tightening! They don't have a clue!" Mr Trump said on Twitter, renewing his complaints about the US central bank a week before it meets in Washington to discuss monetary policy. Mr Trump's tweet on the euro appeared to have been prompted by a Bloomberg Opinion piece on Europe bracing for a summer of "overtourism", to which the president linked as he refreshed his vexation over the dollar's value against its rivals. (BusinessTimes)

7. Narendra Modi, who recently won a second term as India's prime minister, is looking to overhaul the nation's corporate governance system that allowed a string of frauds to mar his first stint in office. Independent directors on company boards will soon have to clear an exam before they can be appointed, said Injeti Srinivas, the top bureaucrat in charge of corporate affairs. The government is also seeking a ban on Deloitte Haskins & Sells saying it failed to warn of mounting risks at a major shadow lender, and the banking regulator suspended an EY affiliate this month after finding problems in one of its audits. (BusinessTimes)

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8. Pakistan Prime Minister Imran Khan's government vowed to collect more taxes and make spending cuts in a closely watched budget presented to parliament on Tuesday, weeks after reaching a deal with the IMF for a US$6 billion bailout. Before a rowdy parliamentary session, the government announced plans to slash civil expenditure and freeze military spending while promising to substantially raise revenues to stem a yawning fiscal deficit, and pledging to collect 5.5 trillion rupees (S$49 billion) in taxes. (BusinessTimes)

9. Singapore, Retrenchments rose in the first quarter of the year, driven by manufacturing losses and hitting mainly production and related workers from electronics, said the Ministry of Manpower (MOM) today. The number of retrenched employees stood at 3,230, up from 2,510 in the previous quarter and also higher than a year ago, the MOM said in its labour market report. Retrenchments in electronics made up 18% of the number, followed by services industries such as wholesale trade, as well as transportation and storage. (BusinessTimes)

10. Europe’s economic affairs commissioner said he was pleased with the sustainable and notable performance by Portugal in economic growth, but insisted that long-term economic improvement required reforms. Speaking at a press conference in Brussels after the disclosure of the specific recommendations for each country, Pierre Moscovici stressed that the European Commission (EC) thought it was notable that the countries that had been under the financial assistance programme now had a sustainable and notable performance regarding their growth. “And this is true for Portugal”, he added, saying that Brussels must also mention the good news. Portugal was subject to the financial assistance programme between 2011 and 2014 and received foreign aid totalling €78 billion. (NewsNow)

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11. Mario Draghi, the president of the European Central Bank (ECB), and Christine Lagarde, the managing director of the International Monetary Fund (IMF), have warned that the global trade dispute between the US and China as well as a threatened dispute with Europe and other industrial nations could cause headwinds for all and could get worse. (NewsNow)

12. Russian President Vladimir Putin expects that during the upcoming Osaka summit all G20 countries, including Russia and the United States, would eventually reach agreements, paving the way for economic cooperation. "We have high hopes that common sense would eventually prevail," the Russian leader said. "I hope that within the framework of the upcoming G20 summit we, together with all our partners, including the American partners, the United States, would eventually achieve some solutions, which would be constructive and create the necessary stable environment for cooperation in the economic sphere." (NewsNow)

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