Business

DUBLIN — Facebook will expand its presence in Ireland with an additional 1,000 staff over 2019, the firm announced on Monday, bolstering the tech giant's largest base outside of its California headquarters.

Facebook currently employs 4,000 across the Republic and the capital Dublin where the company has established its international base.

"We're going to be hiring an additional thousand people in Ireland in the next year alone," said Chief Operating Officer Sheryl Sandberg.

The jobs will span the engineering, safety, legal, policy, marketing and sales teams, Facebook said in a statement.

Sandberg said the employees would be working to "help keep people safe" and to "prevent abuse" on the platform following a turbulent period for the social media goliath.

Facebook is under scrutiny as a result of its role in the Cambridge Analytica scandal, which saw the personal data of tens of millions of users hijacked in 2016.

The company is also facing increasing criticism for providing a platform for hate speech and facilitating foreign interference in elections.

"We didn't do enough to really anticipate that when you connect this many people around the world there are real risks," said Sandberg.

"We're not the same company we were even a few years ago, and that's something we need to prove," she added.

Facebook is currently under investigation by watchdog the Irish Data Protection Commission after the social media titan admitted a "bug" may have exposed unposted photos from up to 6.8 million users.

That probe — launched in December — followed an earlier investigation started in October after a security breach exposed 50 million accounts.

The investigations are to be some of the first major tests of stringent new European privacy laws enshrined in the General Data Protection Regulation.

Firms can be fined up to four percent of annual global turnover if they fail to abide by the rules — meaning Facebook faces a theoretical fine of 1.4 billion euros ($1.6 billion), based on its 2017 annual revenue of 35.2 billion euros ($40.6 billion).

Ireland has been singled out for luring multinationals such as Facebook to its territory by offering complex tax schemes which allow them to shift profits and avoid large bills.

Earlier this month the government revealed it was running a surplus for the first time since the crash of 2008 thanks to a 1-2 billion euros ($1.1-2.2 billion) surge in corporate tax revenues linked to just a handful of multinationals.

BERLIN — Fears that robots will eliminate your job are unfounded with a growing number of employers planning to increase or maintain headcount as a result of automation, staffing company ManpowerGroup said in a survey that was published on Friday. 

The “Humans Wanted: Robots Need You” report surveyed 19,000 employers in 44 countries and found 69 per cent of firms were planning to maintain the size of their workforce while 18 per cent wanted to hire more people as a result of automation. That was the highest result in three years.

The report went on to say that 24 per cent of the firms that will invest in automation and digital technologies over the next two years plan to add jobs compared to 18 per cent of those who are not automating. 

Just 9 per cent of employers in the annual survey said automation would directly lead to job losses, while 4 per cent did not know what the impact would be.

“More and more robots are being added to the workforce, but humans are too,” said Jonas Prising, Chairman & CEO of ManpowerGroup.

“Tech is here to stay and it’s our responsibility as leaders to become Chief Learning Officers and work out how we integrate humans with machines.” 

More than 3 million industrial robots will be in use in factories around the world by 2020, according to the International Federation of Robotics.

The Manpower survey found that 84 per cent of firms planned to help their workers learn new skills by 2020, compared to just 21 per cent in 2011.

The global talent shortage is at a 12-year-high, with many companies struggling to fill jobs, according to Manpower.

In Germany, where unemployment is at a record low, a shortage of talent was the top concern of small-to-mid-sized companies heading into 2019, according to a survey by the BVMW Mittelstand association.

The Manpower survey found IT skills are particularly in demand with 16 per cent of companies expecting to hire staff in IT.

In manufacturing and production, where industrial robots are increasingly doing routine tasks, firms expect to hire more people in customer-facing roles that require skills such as communication, leadership, negotiation and adaptability.

Employers in Singapore, Costa Rica, Guatemala and South Africa expected to add the most staff, while firms in Bulgaria, Hungary, Czech Republic, Norway, Slovakia and Romania predicted a decrease in headcount, the survey found.

LONDON — Organisers of next week’s annual Davos conclave put on a brave face on Friday after US President Donald Trump withdrew his entire delegation, insisting the forum still had plenty of political and corporate firepower in its debating armoury.

Trump himself had already pulled out of attending the World Economic Forum (WEF) for a second year, having shut down the US government over his demands for Congress to fund a wall on the Mexican border.

Treasury Secretary Steven Mnuchin, Secretary of State Mike Pompeo and US trade chiefs had been slated to attend the WEF instead, alongside other heavy hitters such as Chinese Vice President Wang Qishan, as Beijing and Washington try to negotiate a truce to their trade war.

But the White House announced the cancellation of the delegation’s trip to the Swiss Alps “out of consideration for the 800,000 great American workers not receiving pay”.

In Trump’s absence, Brazil’s new far-right president, Jair Bolsonaro, will grab the Davos limelight when he outlines his economic agenda in a keynote address during his first trip abroad since taking office earlier this month.

‘Globalisation 4.0’ 

The week of networking and socialising kicks off on Monday and will feature an eclectic lineup of discussions devoted to issues such as mindful parenting in the digital age, chronic loneliness, and harnessing artificial intelligence (AI) without destroying jobs.

It is expected to draw some 3,000 political and business figures, including 65 government leaders from Germany, Israel, Zimbabwe and elsewhere. It begins with a report card on the world economy from the International Monetary Fund.

In a statement, the WEF said it understood the White House reasoning and stressed that other governments together representing one-quarter of global GDP would still be represented.

“With more than 800 participants from the US, including the leaders of top global companies across all sectors based in the US, we feel that the meeting is well placed to be a platform for relevant discussions on Globalisation 4.0,” it said.

That refers to WEF founder Klaus Schwab’s belief that despite the upsurge of angry populism in many countries, a new era of globalisation driven by AI and other technological advances is upon us.

But Schwab, the forum’s 80-year-old executive chairman, also said the elite gathering needs to reflect on the “losers” of globalisation and find ways to look after “those who have been left behind”.

The “left behinds” figured heavily in the anti-establishment wave that in 2016 powered Britain’s referendum decision to quit the European Union. 

Brexit is meant to take effect on March 29. There will be a chill in Davos about the prospect of Britain crashing out of the EU without a deal in place, after Prime Minister Theresa May’s preferred divorce terms were roundly defeated in parliament.

May will be another Davos no-show as she tries to unpick the deadlock in London, but International Trade Secretary Liam Fox will make the trip to try to sell a post-Brexit future for Britain.

Another absentee is President Emmanuel Macron, who has been grappling with French-style populism in the form of the “yellow vest” movement.

“With Brexit, trade wars and populism — politics is totally driving the Davos discussion this year when usually it’s economics that drives the politics. Amazing times,” a senior European diplomat told AFP.

War on corruption 

In advance of the meetings, a WEF survey this week found the Davos community worried most about climate change among sources of political and economic anxiety. 

The survey highlighted fears of extreme weather patterns and the risk of disruption in an array of sectors including transport and logistics. On cue, heavy snowfall and deadly avalanches have hit the Alps this week, cutting off the train line to Davos at one point.

But like Trump, Bolsonaro is a climate change sceptic. His pro-business agenda and appointment of a like-minded rightwinger as environment minister have done nothing to ease concerns about deforestation in the Amazon.

The new leader of Latin America’s largest economy will speak in Davos on Tuesday. He has vowed to showcase “a different Brazil, free of ideological ties and widespread corruption”.

Bolsonaro has also echoed Trump in bashing China, even as the world’s second-biggest economy boosts Brazilian farm imports — sourced in part from cleared Amazon lands — as an alternative to US commodities in the midst of Trump’s trade war.

“Bolsonaro’s history doesn’t suggest he’s going to be a fervent adopter of the World Economic Forum’s mantra of cross-border, stakeholder cooperation”, Douglas Rediker, chairman of International Capital Strategies in Washington, said in a phone interview.

However, Bolsonaro will be accompanied by his US-educated economy minister, Paulo Guedes, who speaks the kind of investment-friendly language that is music to Davos ears.

BERLIN — The German government is debating whether to follow the United States and allies like Australia in restricting China's Huawei Technologies from accessing its next-generation mobile networks on national-security grounds.

Some Western countries have barred Huawei from their markets after US officials briefed allies that Huawei is at the beck and call of the Chinese state, warning that its network equipment may contain "back doors" that could open them up to cyber espionage. Huawei says such concerns are unfounded.

While no concrete steps have been decided upon, business daily Handelsblatt reported on Thursday that Chancellor Angela Merkel's administration was actively considering stricter security requirements and other ways to exclude Huawei. 

Officials were discussing setting security standards that Huawei could not achieve, effectively blocking its participation. Changes to the German telecommunications law were also under consideration as a last resort, the paper said, citing government sources.

No decisions have yet been taken, according to a written answer by the interior ministry to a question from lawmaker Katharina Droege of the opposition Greens Party.

"The process of reaching a common view on concrete steps has not been completed," said the Interior Ministry's response, which was seen by Reuters.

Europe has become a crucial battleground in a struggle between Beijing and Washington that analysts say could determine which of the two superpowers achieves technological supremacy in the 21st century. 

Huawei, once a fast follower of Nordic firms Nokia and Ericsson, is now a $93 billion global market leader in an industry where there is no US champion.

In Washington, a bipartisan group of lawmakers introduced bills on Wednesday that would ban the sale of US chips or other components to Huawei, ZTE Corp. or other Chinese telecommunications companies that violate US sanctions or export control laws.

Germany's Deutsche Telekom announced in December that it would review its vendor strategy and France's Orange said it would not hire the Chinese firm to build its next-generation network in France.

Tensions have been heightened by the arrest of Huawei's chief financial officer in Canada for possible extradition to the United States.

Huawei founder Ren Zhengfei, in a rare public appearance this week, said his company had never received a request from a government to transmit information in violation of any regulations.

The deliberations in Berlin mark a shift from the German government's position in October, when it told lawmakers it saw no legal basis to exclude any vendors from an upcoming 5G auction following warnings from Washington.

In a statement, Huawei welcomed Berlin's push to verify and standardise technology solutions which it has supported by opening an information lab in Bonn to help regulators scrutinise its gear.

"We are very optimistic that we can completely fulfil all security requirements for 5G networks," Huawei said. "We see no rational grounds to exclude Huawei from the construction of 5G networks in any country around the world."

HANOI — Vietnam’s newest commercial carrier Bamboo Airways took flight on Wednesday, officially entering Southeast Asia’s crowded aviation sector where it will face stiff competition from established players. 

Air travel in the region has boomed in recent years as appetites — and budgets — for travel have soared among spendthrift flyers. 

Bamboo is hoping to tap into the saturated market by offering routes to lesser-known destinations in Vietnam currently underserved by heavy-hitters like Vietnam Airlines and budget carrier Vietjet.

“Bamboo Airways will become a five-star airline to serve domestic and international passengers,” Bamboo owner Trinh Van Quyet said at Hanoi’s Noi Bai Airport after the inaugural flight landed from Ho Chi Minh City on Wednesday morning. 

Born poor in northern Vinh Phuc province, Quyet is best known in Vietnam for building a vast real estate empire FLC Group, which has built luxury hotels, golf courses and condominiums across the country and is the parent company of Bamboo.

The property tycoon told AFP in an interview last year that he hopes to offer customers integrated travel packages to his resorts at affordable prices. 

But analysts have warned that travellers are moving away from package deals and prefer to tailor their own trips online.

Bamboo will operate eight domestic routes daily, with plans to fly from Hanoi to Japan, South Korea and Singapore later this year and eventually to Europe.

Vietnam’s aviation sector is surging, with passenger numbers jumping to 62 million last year from 25 million in 2012.

Regional and domestic airlines are scrambling to keep up with that growth as Vietnam’s airports strain to accommodate an increasing number of flights and passengers.

National carrier Vietnam Airlines and Vietjet currently dominate international and domestic travel. 

Bamboo is not the only carrier looking to edge into the sector. 

Last month, Malaysian budget airline AirAsia signed an agreement with a Vietnamese travel firm to launch a low-cost carrier in Vietnam, though a timeline for take-off was not provided. 

ABU DHABI — Saudi Energy Minister Khalid Al Falih said on Tuesday he was "very optimistic" about the outlook for the oil market after producers cut output to support flagging prices.

Members of the Organisation of Petroleum Exporting Countries (OPEC) cartel and allies including Russia decided last month to reduce output by 1.2 million barrels per day (bpd) after prices fell by more than 40 per cent in just a few weeks in late 2018.

The price of benchmark Brent crude, which briefly dipped below $50 a barrel in November, rebounded partially to above $60 a barrel following the production cuts which took effect on January 1.

The market has remained volatile with prices fluctuating sharply even after OPEC kingpin Saudi Arabia announced last week it will gradually cut output by 800,000bpd in January and a further 100,000bpd next month.

"I am confident that the impact of the decision we took to cut output by 1.2 million bpd... will be very strong," Falih told reporters on the sidelines of the Abu Dhabi Sustainability Week conference.

"But there is always a lagtime between the [decision to] cut production and the impact reaching the market," he said.

Falih said he is confident that "within the next few weeks" the market conditions will return to normal and confidence will be restored.

"I am very optimistic," Falih said.

The Saudi minister also downplayed the impact of an expected global economic slowdown on the oil market.

"I am not ruling out a cyclical recession. I think we all know that these things are a fact of life," especially after a long expansionary period, Falih said.

"I just don't see it as a major shock to the global economy. Certainly, I don't see a big spillover into the oil market," he said.

Oil prices crashed in mid-2014 to below $30 a barrel, down from over $100 a barrel, because of a glut in supplies and weakening world demand.

That prompted the OPEC to cooperate with non-OPEC producers, mainly Russia, to trim output by 1.8 million bpd from the start of 2017.

After they abandoned the production cuts policy in mid-2018, oil prices dropped again.

But Falih said that the so-called OPEC+ group, which pumps 52 million bpd or 52 per cent of global output, is capable of rebalancing the market which has a surplus of around 300,000 to 400,000bpd.

"An adjustment by a half per cent does not appear to me to be a challenge," Falih said.

BEIJING — China's exports unexpectedly fell the most in two years in December, while imports also contracted, pointing to further weakness in the world's second-largest economy in 2019 and deteriorating global demand.

Adding to policymakers' worries, data on Monday also showed China posted its biggest trade surplus with the United States on record in 2018, which could prompt President Donald Trump to turn up the heat on Beijing in their bitter trade dispute.

Softening demand in China is being felt around the world, with slowing sales of goods from iPhones to automobiles, prompting warnings from the likes of Apple and from Jaguar Land Rover, which last week announced sweeping job cuts mostly in Britain.

The dismal December trade readings suggest China's economy may have cooled faster than expected late in the year, despite a slew of growth-boosting measures in recent months ranging from higher infrastructure spending to tax cuts.

Some analysts had already speculated that Beijing may have to speed up and intensify its policy easing and stimulus measures this year after factory activity shrank in December.

China's December exports unexpectedly fell 4.4 per cent from a year earlier, with demand in most of its major markets weakening. Imports also saw a shock drop, falling 7.6 per cent in their biggest decline since July 2016.

"Today's data reflect an end to export front-loading and the start of payback effects, while the global slowdown could also weigh on China's exports," Nomura economists wrote in a note, referring to a surge in shipments to the US over much of last year as companies rushed to beat further tariffs.

"The export growth print also suggests that the recent strength of the yuan might be short-lived; Beijing will perhaps be more eager to strike a trade deal with the US; and that policymakers will need to take more aggressive measures to stabilise GDP growth."

Net exports had already been a drag on China's economic growth in the first three quarters of last year, after giving it a boost in 2017.

Asian shares and US stock market futures fell as the surprisingly weak Chinese data added to fears of weaker corporate profits and investment, while the yuan currency gave up some of its early gains.

Higher trade 

surplus with US 

China's politically-sensitive surplus with the US widened by 17.2 per cent to $323.32 billion last year, the highest on record going back to 2006, according to Reuters calculations based on customs data.

China's large trade surplus with the United States has long been a sore point with Washington, which has demanded Beijing take steps to sharply reduce it.

Washington imposed import tariffs on hundreds of billions of dollars of Chinese goods last year and has threatened further action if Beijing does not change its practices on issues ranging from industrial subsidies to intellectual property. China has retaliated with tariffs of its own. 

However, Beijing's export data had been surprisingly resilient to tariffs for much of 2018, possibly because companies ramped up shipments before broader and stiffer US duties went into effect. 

As many market watchers predicted, that boost has faded in the last few months. China exports to the US declined 3.5 per cent in December while its imports from the US were down 35.8 per cent for the month.

China's total global exports rose 9.9 per cent in 2018, its strongest performance in seven years, while imports increased 15.8 per cent.

But December's gloomy data, along with several months of falling factory orders, suggest a further weakening in its exports in the near term.

"A trade recession is likely, in our view," Raymond Yeung, chief economist at ANZ, said in a note, predicting a period of export contraction similar to 2015-16.

"The global electronics cycle remains the key driver of Chinese exports. A potential downturn in the sector poses the real risk to China's external outlook even if China and the US reach a resolution on their trade dispute."

ING said a fall in electronic shipments could be related to foreign companies avoiding using China-made electronic components, adding that exports and imports of electronic parts and goods will likely shrink this year. 

Weak imports highlight sofening demand 

The higher tariffs China levied on US supplies also hit overall import growth. For all of 2018, soybeans, the second largest imports from the US, fell for the first time since 2011.

Even if Washington and Beijing reach a trade deal in their current round of talks, it would be no panacea for China's slowing economy, analysts say.

"The import slowdown is consistent with other signs that growth in China's domestic economy continued to weaken," said Louis Kuijs, head of Asia economics at Oxford Economics.

"Overall economic growth slowed further in the fourth quarter and remains under pressure from weaker exports, slow credit growth and cooling real estate activity."

Chinese policymakers are widely expected to roll out more support measures in coming months if domestic and external conditions continue to deteriorate.

Early this month, the central bank said it would slash banks' reserve requirements — the fifth such cut in a year — as it tries to encourage more lending and reduce the risk of a sharp slowdown.

"If pressure on the economy is still relatively large in the first half, a cut every quarter should be highly likely," said Xu Gao, chief economist at Everbright Securities. 

In an annual meeting of top leaders last month, China said it will boost support for the economy in 2019 by cutting taxes and stepping up policy adjustments.

A few analysts believe interest rate cuts are a possibility, but most expect Beijing will refrain from massive stimulus measures like those deployed in the past, due to worries that it could add to a mountain of debt and weaken the yuan. 

Sources told Reuters last week that Beijing is planning to lower its economic growth target to 6-6.5 per cent this year after an expected 6.6 per cent in 2018, the slowest pace in 28 years.

By Douglas Gillison

WASHINGTON — The US government shutdown on Saturday became the longest in history and is taking a growing bite out of the world's largest economy with each passing day, economists say.

While most of the 21 "lapses" in government spending since 1976 left barely a scratch on economic growth, the length of this shutdown makes it harder to say just how bad the impact could get.

"It's not a hard stretch to say that initially it's smaller and then it expands, the pain starts to widen," Beth Ann Bovino, chief US economist at S&P Global Ratings, told AFP. "Think of it as a butterfly effect."

With about a quarter of the federal workforce affected, the shutdown is currently squeezing an estimated $1.2 billion a week out of the economy, Bovino said, but that figure could grow if it drags on.

At the current rate, within two weeks it will have cost America more than the $5.7 billion US President Donald Trump is demanding for a wall on the border with Mexico, the dispute with Congress that led to the failure to pass funding for government operations.

Following extended closures in 1995 and 2013, the US economy continued to grow while stock markets mainly went sideways.

GDP growth lost in one quarter can rebound in the next as the government springs back to life and workers recoup lost salaries. But some losses can never be recovered.

In myriad but often unseen ways, the $4 trillion federal budget is felt in the daily lives of all Americans, well beyond the 800,000 government workers now going without pay — many of whom missed their first paychecks on Friday.

Switching off even a part of the government means that life force quickly begins to bleed away.

Payments to farmers and poor families, craft beer labels, food inspections and economic data all have fallen victim to the budget impasse. 

Meanwhile, tax refunds and borrower income verifications crucial to the mortgage industry were briefly up in the air with billions at stake.

"The tentacles start to touch many avenues of life and that's a very sad thing," Bovino said.

US coast guard cutters, their crews working without pay, on Monday began icebreaking at commercial ports in the frigid waters of Great Lakes near the Canadian border so local steel mills can remain supplied with iron ore.

Meanwhile, farmers cannot collect aid payments designed to help ease the pain caused by Trump's trade war with China.

Hurting the
poorest most 

Small Business Administration loans to help mom-and-pop businesses trying to invest, hire and grow have been delayed.

There are no government loans for seeds or cattle feed and none of the regular agriculture department data about crop yields and commodity prices that farmers depend on to plan for the coming year.

Permits from some oil and gas drilling — which feeds into GDP calculations — are delayed.

Bloomberg estimates that government contractors are losing $200 million a day, cutting revenues for defence industry giants like Boeing, General Dynamics and Leidos.

Tourism at the country's 400 national parks normally generates a reported $18 million a day, but with some parks unattended and many services halted, local restaurants, hotels and shops are losing customers.

Government assistance to feed the poorest Americans is funded through next month only.

None of this includes the hardships felt by the 380,000 federal workers who have been furloughed or the 420,000 who are deemed "essential" but are working without pay.

They owe an estimated $438 million a month in rent and mortgage payments, according to the real estate firm Zillow.

Around the Washington region, home to about 20 per cent of the federal work force, restaurants are sitting empty, taxis are idled and traffic increasingly moves with eerie ease along the capital's choked boulevards.

Yingrui Huang, an engineer for a defence contractor at NASA's Goddard Space Flight Centre in Maryland, told AFP his company is normally at work building weather satellites and telescopes for the government but is shuttered until further notice.

To fight boredom, he is now driving for the mobile ride hailing service Lyft but said he was most concerned hourly employees like janitors, cafeteria workers and secretaries.

"Their salaries are definitely lower than most of the engineering staff. They don't get the limelight. We don't think about them," he said.

Economic research on the last major shutdown in October 2013 found many federal workers were largely able to avoid sinking into debt — delaying mortgage payments and shifting balances between credit cards.

But that shutdown lasted for barely two weeks — one pay cycle — and lawmakers at the time had quickly promised workers would receive back pay.

"It's possible that the effects will be greater for this shutdown," University of Chicago economist Constantine Yannelis, who studied the 2013 shutdown, told AFP.

"The longer a shutdown lasts, the more persistent a change in habits you could see."

BERLIN — Germany’s antitrust watchdog plans to order Facebook to stop gathering some user data, a newspaper reported on Sunday.

The Federal Cartel Office, which has been investigating Facebook since 2015, has already found that the social media giant abused its market dominance to gather data on people without their knowledge or consent.

The Bild am Sonntag newspaper said the watchdog will present the US company with its ruling on what action it needs to take in the next few weeks. 

A Facebook spokeswoman said the company disputes the watchdog’s findings and will continue to defend this position.

The investigation is being closely watched amid mounting concerns over leaks of data on tens of millions of Facebook users, as well as the use of social media by foreign powers seeking to influence elections in the United States. 

The German watchdog objects in particular to how Facebook acquires data on people from third-party apps — including its own WhatsApp and Instagram services as well as games and websites — and its tracking of people who are not members.

The paper said it is still not clear how strictly Facebook will have to comply with the German order, noting that the watchdog looks likely to set a deadline for compliance rather than insisting on immediate action.

HARARE — Zimbabwe will introduce a new currency in the next 12 months, the country's finance minister said, as a shortage of US dollars plunges the financial system into disarray, forcing businesses to close and threatening unrest. 

The southern African nation abandoned its own hyperinflation-wrecked currency in 2009 at the height of an economic recession, adopting the greenback and other currencies including sterling and the South African rand.

But without enough hard currency to back up the $10 billion of electronic funds trapped in local bank accounts, businesses and civil servants are demanding payment in cash which can be deposited and used to make payments both inside and outside the country. 

Mthuli Ncube told a townhall meeting late on Friday that a new local currency would be introduced in less than twelve months.

"On the issue of raising enough foreign currency to introduce the new currency, we are on our way already, give us months, not years," he said.

Zimbabwe currently has less than two weeks import cover, according to central bank data, and the government has previously said it would only consider launching a new currency if it had at least six months of reserves.

Locals are haunted by memories of the Zimbabwean dollar, which became worthless as hyperinflation spiralled to reach 500 billion per cent in 2008, the highest rate in the world for a country not at war, wiping out pensions and savings.

A surrogate bond note currency introduced in 2016 to stem dollar shortages has also collapsed in value.

President Emmerson Mnangagwa is under pressure to revive the economy but, in something of a vicious circle, the dollar shortages are undermining efforts to win back foreign investors sidelined under his predecessor Robert Mugabe.

With less than $400 million in actual cash in Zimbabwe according to central bank figures, there are fuel shortages and companies are struggling to import raw materials and equipment, forcing them to buy greenback notes on the black market at a premium of up to 370 per cent. 

The Confederation of Zimbabwe Industries has warned some of its members could stop operating at the end of the month due to the dollar crunch.

Zimbabwe's iconic manufacturer of cooking oil and soap, Olivine Industries said on Saturday it had suspended production and put workers on indefinite leave because it owed foreign suppliers $11 million. 

A local associate of global brewing giant Anheuser-Busch Inbev said this week it would invest more than $120 million of dividends and fees trapped in Zimbabwe into the central bank's savings bonds.