Major International Business Headlines Brief::: 25 September 2018

Tue Sep 25 06:50:43 CAT 2018

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Major International Business Headlines Brief::: 25 September 2018

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*  South Africa's Ramaphosa outlines stimulus plan for ailing economy

*  Nigeria oil unions threaten nationwide strike over Chevron dispute

*  World bank disburses $500 million loan to support Tunisia budget - source

*  Libya's AGOCO resumes 3,000 bpd production at abandoned well in Messla

*  South Africa rand weakens against rebounding greenback, stocks rise

*  Egypt's GASC says it is seeking soyoil, sunflower oil in tender

*  South Africa's NUM union signs wage deal with AngloGold

*  Potential buyer ditches plan to acquire Bidcorp's UK logistics business

*  S.Africa's Life Healthcare not ruling out return to India after Max disposal

*  Ghana's government pulls planned five-year local currency bond

*  Donald Trump hails South Korea trade deal

*  Instagram co-founders Systrom and Krieger leaving firm

*  Oil price jumps as Opec keeps output steady

*  Oil price jumps as Opec keeps output steady

*  Murdoch: What next for the media mogul after Sky deal?

*  Michael Kors tipped to buy Versace $2bn

*  Brexit: Flights 'at risk' under no-deal, government warns

 <mailto:info at bulls.co.zw> 

South Africa's Ramaphosa outlines stimulus plan for ailing economy

PRETORIA (Reuters) - South Africa’s president announced a multi-billion-dollar stimulus programme on Friday, earmarking funds for job creation and infrastructure development as he seeks to make good on a pledge to revive the country’s ailing economy.

Speaking a day after the central bank disappointed some in his ruling African National Congress (ANC) party by not cutting interest rates, Cyril Ramaphosa said the government needed to put the funds at its disposal to better use.

“We have to resort to reprioritising our budget,” Ramaphosa told reporters in Pretoria, adding that there was no room to increase spending or borrowing.

He said 50 billion rand ($3.5 billion) of “reprioritised expenditure and new project-level funding” would be used to boost economic growth and create jobs, and the government would also launch a 400 billion rand “medium-term” infrastructure fund.

“The central element of the economic stimulus and recovery plan is the reprioritisation of spending towards activities that have the greatest economic effect,” he said.

When he took over in February from Jacob Zuma, whose term of office was plagued by scandal, Ramaphosa staked his reputation on economic revival and he received a warm welcome from investors in part due to his strong ties to the business community.

But having stagnated for a decade, Africa’s most industrialised economy slipped further in the second quarter by entering recession for the first time since 2009, while the rand has weakened.

The local currency briefly extended gains after Ramaphosa’s speech before slipping back to trade 0.31 percent firmer against the dollar.

Some analysts were underwhelmed by the stimulus plan.

“This was a political speech. There was very little economics in it,” Nic Borain, an independent political analyst.

“It was a balancing act, although the market and other observers would have been looking for something more decisive. The real details will come in Nene’s budget in October.”

Warren Landgridge, a grain option trader at Riddermark Capital, said investing in agriculture would be a good move.

“It could only be beneficial for the country in the long term if money can be allocated to helping and equipping farmers,” he said.

SLOW GROWTH, HIGH UNEMPLOYMENT

Ramaphosa said the infrastructure fund would attract finances from development institutions and banks, private lenders and private sector and ordinary investors.

Finance Minister Nhlanhla Nene told the same event that the 50 billion rand fund would come from under-performing government programmes. He gave no detail and it was also not clear how much of the money would be new funding and how much would be shifted from other projects.

South Africa needs faster economic growth to reduce its 27 percent unemployment rate and alleviate poverty and inequality, which are stoking instability ahead of national elections next year.

But the central bank on Thursday also cut its gross domestic product forecast for 2018 and said there was little leeway in monetary policy to boost the economy beyond the new growth figure while the outlook for inflation had deteriorated.

Land and mining ownership reforms set in motion by Ramaphosa have also unnerved investors, and after an initial rally following his election as ANC leader in December and state president in February, business confidence has wavered.

Ramaphosa said the country’s economy would be put on a firmer footing by the measures he announced on Friday.

“Our economic challenges are huge and our difficulties are severe and in the end will take extraordinary effort and they will also take some time,” he said. “For several years our economy has not grown at the space we needed to create enough jobs.”

($1 = 14.2354 rand)

 <mailto:info at bulls.co.zw> 

Nigeria oil unions threaten nationwide strike over Chevron dispute

ABUJA (Reuters) - Nigeria’s two main oil unions have prepared their members for possible nationwide industrial action over a staffing dispute with Chevron, they said on Saturday.

Nigeria, an OPEC member, is Africa’s largest oil producer and crude sales make up around two-thirds of government revenues in West Africa’s largest economy. The dilapidated state of its refineries means the country imports most of its refined fuel.

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) accused U.S. oil major Chevron of attempting to sack thousands of Nigerian workers in violation of their contracts.

“NUPENG and PENGASSAN will not hesitate to embark on nationwide industrial action on this matter and we have already placed our members on red alert should the management of Chevron remain recalcitrant or adamant to rescind its anti-labour decision,” the unions said in a joint statement.

NUPENG President William Akporeha told Reuters the industrial action referred to would be a nationwide strike by members of the unions, who cover a broad range of jobs across the country’s oil industry.

Chevron did not immediately respond to requests for comment.

World bank disburses $500 million loan to support Tunisia budget - source

TUNIS (Reuters) - The World Bank has disbursed a $500 million loan to support Tunisia’s budget, an official source told Reuters on Thursday.

The disbursement raised Tunisia’s foreign exchange reserves to the equivalent of 78 days of imports, up from the equivalent of 68 days seen in recent weeks.

Libya's AGOCO resumes 3,000 bpd production at abandoned well in Messla

TRIPOLI (Reuters) - Libya’s National Oil Corporation (NOC) said on Saturday its subsidiary the Arabian Gulf Oil Company (AGOCO) had restored production at 3,000 barrels of oil per day (bpd) at an abandoned well in the eastern Messla field.

After 16 years of inactivity, production resumed at the well (HH86-65) using the latest drilling techniques developed by U.S. oilfield services company Schlumberger, the NOC said in a statement.

The oil-rich North African country was producing more than 1.6 million bpd before a 2011 NATO-backed uprising that toppled Muammar Gaddafi and led to political fragmentation and armed conflict. Messla’s output was around 70,000 bpd.

Since 2014, Libya has been divided between rival governments and military factions based in the east and west of the country, causing political deadlock and an economic crisis.

However, the NOC has continued to function relatively normally across Libya, which relies on oil exports for most of its income. Output has been hit by attacks on oil facilities and blockades, though last year it partially recovered to around one million barrels per day.

Earlier this month, the NOC suffered a shooting attack on its Tripoli headquarters, claimed by Islamic State militants, that killed two people and wounded 25. But it continued to manage its operations as normal, it said.

Along with the Tripoli-based central bank, the NOC is one of the only state enterprises still functioning well despite the conflict.

South Africa rand weakens against rebounding greenback, stocks rise

JOHANNESBURG (Reuters) - South Africa’s rand reversed earlier gains to fall 1 percent as the dollar firmed, with the local currency trimming gains partly caused by a raft of measures meant to revive the economy announced by President Cyril Ramaphosa.

Stocks gained ground as global markets rallied on easing concerns over the United States and China trade dispute.

The rand was 0.79 percent weaker at 14.4000 per dollar at 1420 GMT.

The dollar, which is still set for its biggest weekly drop since February, rebounded as investors consolidated positions before the weekend.

The rand had firmed to trade at a session best of 14.2000 to the dollar after Ramaphosa announced a multi-billion-dollar stimulus programme.

“The rand is not alone. Many emerging market currencies have given up some ground, the Turkish lira, Russian rouble and Mexican peso on dollar strength,” ETM economist Halen Bothma said.

“The rand has worked hard over the last two days and the stimulus package is nice but is not going to change the economic growth outlook.”

In fixed income bonds were slightly weaker, with the yield on the benchmark government paper due in 2026 up 1 basis point to 9.100 percent.

On the bourse, the top 40 index rose 1.37 percent to 51,107 points. The broader all share index was 1.26 percent higher at 57,259 points.

Global markets reached their highest levels in more than six months as investors took the view that the latest exchange of tariffs between the United States and China may be less damaging than initially feared. On the downside, food distributor Bid Corporation Ltd (Bidcorp) fell 3.11 percent after it said the prospective buyer for its UK logistics business is no longer interested in buying it, citing internal reasons.

Egypt's GASC says it is seeking soyoil, sunflower oil in tender

DUBAI (Reuters) - Egypt’s state buyer, the General Authority for Supply Commodities (GASC), said on Saturday it was seeking cargoes of soyoil and sunflower oil in an international purchasing tender.

GASC is seeking at least 30,000 tonnes of soyoil and 10,000 tonnes of sunflower oil. The agency will also accept offers of at least 10,000 tonnes of soyoil and 5,000 tonnes of sunflower oil in Egyptian pounds.

The vegetable oils are for arrival between Oct. 25 and Nov. 10, according to GASC vice chairman Ahmed Youssef. The deadline for offers is Tuesday.

South Africa's NUM union signs wage deal with AngloGold

JOHANNESBURG (Reuters) - South Africa’s National Union of Mineworkers (NUM) signed a three-year wage deal with AngloGold Ashanti on Friday, inking the same agreement that other unions reached with the company earlier in the week.

The agreement will mean an effective pay hike of over 12 percent for entry-level underground workers in the first year, over double the inflation rate, an industry trend in recent years that has hit margins and made many shafts unprofitable.

Gold producers have argued that above-inflation wage hikes have added to the cost burden in the bullion industry, which has also been hit by depressed prices, labour unrest and declining grades at depths of up to 4 kms (2-1/2 miles).

Harmony Gold, Sibanye-Stillwater and smaller producer Village Main Reef have yet to sign wage agreements with unions.

Potential buyer ditches plan to acquire Bidcorp's UK logistics business

JOHANNESBURG (Reuters) - International food distributor Bid Corporation Ltd (Bidcorp) said on Friday the prospective buyer for its UK logistics business is no longer interested in buying it, citing internal reasons.

In August the South African company said is was finalising an agreement to sell that business to an unidentified global company, moving a step closer to removing the loss-making, non-core asset.

“Bidcorp is currently considering alternative proposals which were suspended due to the advanced sale process,” it said in a statement.

Bidcorp bought the UK Contract Distribution business in 1999. It had a few large contracts with fast-food chains like Yum Brands Inc’s KFC and Burger King but has struggled to contribute to the group’s overall profit, with too many risks and no opportunity for margin growth.

The exit of KFC in February, along with accompanying redundancies and restructuring as well as downscaling of properties and vehicles, contributed to significant annual losses at the business, Bidcorp said in August.

The firm is implementing numerous initiatives to improve the business and those plans are yielding positive results, it said on Friday.

“The trading performance for the two months to end-August 2018 has delivered a near breakeven position, which is a significant improvement compared to the same period in the previous financial year,” it said.

S.Africa's Life Healthcare not ruling out return to India after Max disposal

JOHANNESBURG (Reuters) - South African private hospital group Life Healthcare has said it is not ruling out a return to India after selling the firm’s entire stake in Max Healthcare, in an effort to focus on its operations elsewhere.

The hospital group said on Wednesday it will sell its entire 49.7 percent stake in India’s Max Healthcare to global investment firm KKR & Co. L.P. for 4.3 billion rand ($293 million).

“In the long-term, India is still a very exciting healthcare environment. South Africa is still a strategic focus for us and Europe, given the significant investments we have made there in recent years,” Chief Executive Shrey Viranna told Reuters on Thursday.

“Max was a good investment with a strong management team but it was more about our strategy.”

Max Healthcare has also been grappling with regulatory changes in India over the past year, he said.

Indian authorities proposed capping medical costs at private hospitals in the capital to help millions of people, but the plan would deal a blow to the multi-billion-dollar healthcare sector already grappling with price control policies. [nL3N1T33D8]

In the six-months to the end of March 32, Max Healthcare reported a wider loss of 67 million rand compared with a loss of 12 million in 2017, negatively impacted by the increased regulatory environment and the loss of its licence at Max Shalimar Bagh hospital over a case of medical negligence.

Following the disposal, Life Healthcare wants to focus its attention on its core operations in South Africa, UK, Poland and Western Europe.

The company, whose local competitors include Netcare and Mediclinic has diversified geographically and has also started offering new services.

In 2016 it entered the diagnostic imaging market through the acquisition of UK-based Alliance Medical Group, which also operates in Ireland, Italy, Spain and Northern Europe.

Viranna said the group will continue to make strategic investments in its existing markets, without giving any details.

“We will absolutely look to invest for growth where it makes good financial sense for us. We will look to invest very selectively in our existing geographies as opposed to adding new ones,” he added.

($1 = 0.7557 pounds)

Ghana's government pulls planned five-year local currency bond

ACCRA (Reuters) - Ghana’s government decided not to proceed with a planned 5-year local currency bond slated for final pricing on Thursday due to unfavourable market conditions, according to a note to investors seen by Reuters.

The Finance Ministry had planned to issue the bond to roll-over maturing debts through book-building which opened on Wednesday with initial pricing guidance set at 20.5 percent - 21.5 percent and later revised to 19.75 percent - 21 percent.

A senior Finance ministry official told Reuters pricing for the bond was too high. “Markets too volatile,” the official said. Another person close to the transaction told Reuters that investor demand was poor.

“Due to current market conditions, the issuer has decided not to proceed with the proposed September 2018 5-year Treasury bond issuance (rollover) at this time. We thank you for your interest,” said the note to investors.

Book builders for the bond, open to non-resident Ghanaians, were Barclays, Stanbic, Databank, Fidelity bank and brokerage firm IC Securities.

Ghana, which exports cocoa, gold and oil, is in its final year of a $918 million aid deal with the International Monetary Fund to narrow fiscal deficit, stabilise its currency and reduce debt which ratings agency Moody’s estimate will rise above 70 percent of Gross Domestic product by the end of December.

Donald Trump hails South Korea trade deal

Donald Trump has signed a revised trade pact with South Korea, aimed at expanding opportunities for US carmakers and pharmaceutical companies.

It marks the first such agreement finalised by the US president, who has promised to overhaul his country's trade relationships.

At a press conference in New York, Mr Trump called the updates to the 2012 agreement "a very big deal".

The White House first announced the outline of the changes in March.

Most analysts said the revisions were relatively modest.

The completion of the pact came as Mr Trump faced a number of political controversies, including the sexual harassment allegations against his nominee to the Supreme Court.

Businesses are also worried about the impact of retaliatory tariffs to those Mr Trump's administration has imposed on steel and aluminium imports and Chinese goods.

Mr Trump said the signing, which took place on the sidelines of the United Nation's General Assembly, was "a great day" for the US and South Korea.

He described the revised pact as a "brand new agreement" and a sign that his trade strategy was working.

"In addition to this deal, we have many in the works, and they are fair deals," he said.

South Korean President Moon Jae-In focused his remarks on denuclearisation talks with North Korea, in which the US has been involved.

He said the new trade agreement, which still needs approval by South Korea's parliament, was a sign of the strong partnership between the US and South Korea.

Details of the deal

The US started negotiations with South Korea last year, following Mr Trump's criticism of the 2012 deal as a "one-way street".

Under the new terms, South Korea has agreed to exempt up to 50,000 cars per US manufacturer per year from South Korean safety requirements - double the current number and far higher than any American company currently exports.

The country has also agreed to changes such as improvements to its customs procedures and amendments to its drug pricing policies.

The agreement also extends a 25% US tariff against South Korean trucks to 2041. It had been scheduled to expire in 2021.

Separately, the US agreed to exempt a certain amount of South Korean steel from the 25% tariffs Mr Trump announced in March - equivalent to 70% of the country's average imports from 2015-2017.

South Korea and the US are major trade partners, exchanging nearly $155bn in goods and services in 2017.--BBC

Instagram co-founders Systrom and Krieger leaving firm

Instagram's chief executive Kevin Systrom has said he and co-founder Mike Krieger are leaving the firm.

Mr Systrom, who heads the popular photo-sharing app launched in 2010, said they were taking some time off to "explore our curiosity and creativity".

Instagram, which was purchased by Facebook in 2012 for $1bn (£76m), now has more than 1 billion users.

The departure comes amid reports of tension between Instagrams' co-founders and Facebook's leadership.

"We're now ready for our next chapter," Mr Systrom said in a statement.

"Building new things requires that we step back, understand what inspires us and match that with what the world needs; that's what we plan to do."

WhatsApp chief executive and co-founder Jan Koum said in April he would quit the popular messaging service he co-founded in 2009 and sold to Facebook in 2014.--BBC

Oil price jumps as Opec keeps output steady

Oil prices have hit a four-year high of over $81 a barrel after Saudi Arabia and Russia rejected calls by Donald Trump to increase production.

Brent crude hit its highest level since November 2014 at $81.16 a barrel, up 3% on the day.

Saudi Arabia leads the Opec oil cartel, while Russia is the biggest oil producer outside the group.

They met in Algiers on Sunday to discuss global supply levels and US sanctions on Iran.

The meeting ended with no formal agreement on any additional supply boost.

Oil firm in major North Sea gas discovery

Saudi energy minister Khalid al-Falih said at a press conference in Algiers that he did not "influence prices".

Opec and other producers had discussed raising output by 500,000 barrels a day, Reuters reported.

Sales of Iranian crude have fallen as buyers remain wary of penalties from sanctions due to take effect from November.

Those fears have sent crude oil prices higher, with commodity traders Trafigura and Mercuria predicting prices could rise to more than $100 a barrel by early next year.

But Ann-Louise Hittle, vice president of energy consultancy firm Wood Mackenzie, said the price rise was "an overreaction in the market."

In a tweet last week, US president Donald Trump said that Opec "must get prices down now!" by raising global output.

"We protect the countries of the Middle East," added Mr Trump. "They would not be safe for very long without us, and yet they continue to push for higher and higher oil prices! We will remember."

Iranian oil minister Bijan Zanganeh said on Sunday that Mr Trump's tweet "was the biggest insult to Washington's allies in the Middle East".

Last year, Opec and other oil-producing nations including Russia said they would extend a deal, first agreed in 2016, to cut production to help support oil prices after they fell below $50 a barrel. This deal was upheld at Sunday's meeting.

"We expect that those Opec countries with available spare capacity, led by Saudi Arabia, will increase output but not completely offset the drop in Iranian barrels," said Edward Bell, commodity analyst at Emirates NBD bank.

"Were they do so the oil market would be even more uncomfortably tight than we forecast for 2019 as spare capacity is eroded," Mr Bell added.

US light crude was $1.72 higher at $72.50 a barrel.--BBC

Murdoch: What next for the media mogul after Sky deal?

Comcast's victory in the long battle to win control of Sky, the satellite broadcaster founded by Rupert Murdoch in the 1980s, is the latest milestone in the media tycoon's colourful career that spans six decades.

It comes less than a year after the Australian sold the entertainment assets of 21st Century Fox, including Fox's film and television studios, to Walt Disney for $52bn.

Yet anyone thinking these deals mark the end of an era - or even the end - for Mr Murdoch would be sorely underestimating him.

His passion has always been news - more specifically newspapers - which laid the foundations for his empire and also gave it its name, News Corp. That company is still controlled by Mr Murdoch and contains his print media interests.

The 87-year-old was born into a family that owned several papers in Australia and was left an afternoon title in Adelaide called The News by his father when he died.

After reviving an ailing afternoon paper in Sydney, Mr Murdoch did the same trick the UK - first with the News of the World, before swooping on the Sun in 1969.

Against the odds, the "red-top" tabloid had became the UK's biggest-selling newspaper by 1980, overtaking the Daily Mirror, after adopting controversial features such as putting a topless model on page three.

The paper once sold close to four million copies a day - a number that has fallen to just over 1.4 million copies, but still has the highest daily sale according to ABC. The Daily Mail, its closest rival, sells 1.27 million copies a day.

Despite owning the Times - once known as the UK's "paper of record" - since 1981, the Sun has always been the title that Mr Murdoch cares about the most.

While the Sky deal means the tycoon no longer owns a TV news outlet in the UK, his two daily papers remain a crucial part of the media landscape in a country where the broadcast news agenda is still shaped by print.

As Prof Stewart Purvis, a journalism academic at City, University of London, points out, Mr Murdoch still controls the most popular and one of the most respected newspapers in Britain in the Sun and the Times.

He has also retained Fox News - the high-ratings US news channel beloved of conservatives and the current occupant of the White House - as well as Sky News Australia.

News Corp dominates the newspaper market down under, owning the biggest-selling dailies in Sydney and Melbourne as well as the sole national title, The Australian, along with the Wall Street Journal and the New York Post in the US.

Over the years the Sun has often boasted about its ability to make or break governments. In contrast, Prof Purvis says Mr Murdoch's pay TV business has been very successful and wealth-creating, but did not bring much political influence.

Nevertheless, ministers have tried not to upset either Sky or Mr Murdoch - something he says is unlikely to change following the deal for the satellite broadcaster: "Governments will still be wary of [Murdoch's] power in the media."

Indeed, the recent downfall of Malcolm Turnbull as Australian prime minister was partly attributed to a campaign waged by Murdoch newspapers against his energy policy.

Given the continued slide in newspaper advertising revenue, the company's UK division (cunningly called News UK) is looking to diversify its revenue streams. One example is its recent purchase of the Virgin Radio brand and poaching Chris Evans from Radio 2 to present the station's breakfast show.

The company also owns Talk Radio and has been flashing its chequebook to attract high-profile presenters such as Matthew Wright to the speech station.

Radio is a "business that could grow" for News UK, Prof Purvis adds.

More consolidation in the media sector is likely as big media companies seek scale in a world increasingly dominated by the likes of Amazon and Google.

Richard Greenfield, an analyst at research firm BTIG, likens the trend to the opening scene in the documentary March of the Penguins: "The penguins huddle to survive winter. With Disney/Fox and Comcast/Sky, it's penguins huddling - winter is still coming."--BBC

Michael Kors tipped to buy Versace $2bn

Versace, the Italian fashion house founded by Gianni Versace 40 years ago, is set to be bought by Michael Kors, according to reports.

The US fashion group has agreed to buy the Italian firm in a deal worth about €1.7bn ($2bn, £1.5bn), Reuters reported.

The Italian newspaper Corriere della Sera first reported the impending sale earlier on Monday.

The Versace family still owns 80% of the company.

Four years ago it sold a 20% stake to US private equity group Blackstone.

Versace and Blackstone both declined to comment to Reuters.

Last year, Michael Kors bought Jimmy Choo, the luxury shoemaker founded in London, for almost £900m.

Donatella Versace, the firm's artistic director and vice-president, has called a staff meeting in Milan for Tuesday, Corriere della Sera reported.

Versace reported sales of €686m in 2016. Chief executive Jonathan Akeroyd said earlier this year that annual turnover was soon expected to exceed €1bn.

Gianni Versace was 50 when he was murdered outside his Miami mansion in July 1997 by Andrew Cunanan.--BBC

Brexit: Flights 'at risk' under no-deal, government warns

A no-deal Brexit could cause disruption to air travel between the UK and European Union countries, the government warned on Monday.

This worst-case scenario is set out in the latest batch of documents outlining what what would happen to key industries if no agreement is reached.

Bus and coach services to EU countries could also be suspended in the event of no deal.

The government wants the EU and UK to accept each other's aviation standards.

However, the EU has not yet done so and will stop recognising UK safety standards if there is a hard Brexit.

"If the UK leaves the EU in March 2019 with no agreement in place, UK and EU licensed airlines would lose the automatic right to operate air services between the UK and the EU without seeking advance permission," the government said.

Disruption 'not in EU's interests'

The UK "would envisage" allowing EU airlines to continue flying and "we would expect EU countries to reciprocate in turn", according to the document.

It added: "It would not be in the interest of any EU country or the UK to restrict the choice of destinations that could be served, though if such permissions are not granted, there could be disruption to some flights."

Pet travel warning in no-deal Brexit plan

What do the government's Brexit "no-deal" papers reveal?

Brexit: What would a 'no deal' look like?

The warning does not necessarily mean that flights would be grounded the day after Brexit.

The UK government says it is 'confident' that there will be no disruption to air travel after Brexit

According to Airlines UK, which represents 13 UK-registered carriers, the European Commission has said it would put in place a "bare bones" aviation agreement with the UK to keep planes flying and to cover safety issues.

Tim Alderslade, the trade body's chief executive, said airlines expected the EU and UK to reach a new agreement on aviation.

"Whilst we don't support a no-deal Brexit, we welcome that both the UK and the EU are proposing in this event a minimum agreement that would cover flight and safety requirements for the benefit of both passenger and cargo services," he said.

ADS Group, which represents the UK's aerospace, defence, security and space sectors, has called for Britain to remain a member of the European Aviation Safety Agency (EASA).

It said talks should be held between the Civil Aviation Authority and the EASA to address the complex issues involved and ensure flights are not disrupted.

Analysis: Chris Morris, BBC Reality Check correspondent

The no deal notices the government published this afternoon will make uncomfortable reading for many businesses and consumers, but also for the government.

In dry, technical language they make clear that many aspects of day-to-day life could be affected significantly if the UK leaves the EU with no deal at all, including air and coach travel (which could in theory come to a temporary halt) food labelling, driving in Europe for business or pleasure, and taking your pet across the Channel.

The government argues that these warnings represent contingency planning for a worst case scenario, but until they can guarantee that a deal will be done, preparations will have to be made.

And with time running out, people will have to start acting on some of the advice as soon as November. The prospect of a no deal Brexit is beginning to loom large.

Flights between the UK and 17 non-EU countries, such as the US, Canada, Switzerland and Iceland, operate due to the UK being an EU member.

The guidance states that "replacement arrangements will be in place before exit day".

The UK has already reached agreements with some of these countries and is "confident the remaining agreements will be agreed well in advance of the UK leaving the EU", the government said.

A separate government document warned that UK passengers may have to undergo extra security screening when changing flights in the EU after Brexit.

Neither passengers nor their luggage are usually rescanned when connecting at other EU airports after flying from the UK.

However, new advice states that could change if the EU failed to recognise the UK's aviation security standards after Brexit.--BBC

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

Hippo

AGM

Meikles

26/09/2018 12PM

Bindura

AGM

Chapman Golf Club, Eastlea

27/09/2018 9AM

CBZH

interim dividend of 0.5c per share record date

28/09/2018

Hippo

final dividend of 2c per share record date

28/09/2018

Star Africa

AGM

45 Douglas Road, Workington

28/09/2018 11AM

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Skype:         Bulls.Bears 

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