Major International Business Headlines Brief::: 08 August 2019

Thu Aug 8 02:04:45 CAT 2019

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Major International Business Headlines Brief::: 08 August 2019

 <http://www.nedbank.co.zw/> 

*  South Africa's central bank governor says will go to war to protect
independence

*  Kenya's NSE-20 share index at 10-year low amid China-U.S.trade woes

*  Craigie Stevenson appointed permanent CEO of Cell C

*  S.Africa's Pepkor Q3 revenue up 12%, warns of volatile outlook

*  Vedanta's bid to halt sale of Konkola mine blocked by Zambia court

*  South African business confidence falls amid weak growth

*  Kenya seeks 150 billion shilling syndicated loan -Business Daily

*  AfDB approves $98 mln financing for Ethiopia-Djibouti road project

*  Cobalt, Africa setbacks shrink Glencore's first-half profit

*  Botswana's private coal mine produces first saleable coal

*  US shares recover as Trump renews Federal Reserve attack

*  Brexit: Food industry seeks no-deal competition waiver

*  Japan's FamilyMart convenience chain apologises for rats in store

*  UK pushed out of Interrail scheme after dispute

*  Fresh food traders brace for Brexit

 <mailto:info at bulls.co.zw> 

South Africa's central bank governor says will go to war to protect
independence

JOHANNESBURG (Reuters) - South Africa Reserve Bank Governor Lesetja Kganyago
said on Wednesday he will fight to protect the central bank’s independence
if it is jeopardised by plans to bring it into public ownership.

He has been vocal in expressing concerns over plans by the ruling African
National Congress to nationalise the SARB, and some party factions have also
said that the SARB should have an expanded mandate with a more specific
focus on jobs.

The central bank governor said that he would not engage in internal ANC
party squabbles, but he would strongly defend the central bank’s
independence if it was threatened by any government proposals.

“This conversation ... confuses ownership with the mandate of the
institution and the independence of the instition,” Kganyago said at a
briefing.

“If it ends up happening and nationalisation takes place, what would we go
to war about? When our independence is threatened, that’s when you will see
us taking the fight.”

The primary focus of the bank’s monetary policy is price stability, but it
also seeks to ensure sustainable growth.

Unlike most central banks in the world, the South African Reserve Bank
(SARB) is privately owned.

But ANC members have said the people should have sovereignty over the bank,
and at a party conference in 2017 the ANC resolved to move it into full
state ownership, saying that its current status is an historical anomaly,
though officials have pledged it will be implemented responsibly.

Kganyago said that the agenda to nationalise the SARB was being driven by
foreign shareholders who could profit from it, and that the debate had
become muddled.

“Of all challenges that are confronting us at the moment, is a conversation
about the nationalisation of the Reserve Bank the most important debate
South Africans should be engaged in?,” he said.

South Africa’s economic growth outlook is uncertain, and data last month
showed unemployment had risen to an 11-year high. Earlier data showed
economic growth shrank in the first quarter.

Initial optimism around President Cyril Ramaphosa’s ability to revive the
economy has faded, and credit ratings agencies cite bailouts for big
state-owned companies like Eskom as a major risk to its outlook.

Its weak growth and high debt has prompted speculation that it might look
for support from the IMF.

“We don’t have to get there,” Kganyago said of an IMF approach. “These
problems are within our grasp. We know exactly what must be done. We know
the trade-offs that must be made. We must make those trade-offs.”

 <mailto:info at bulls.co.zw> 

Kenya's NSE-20 share index at 10-year low amid China-U.S.trade woes

NAIROBI (Reuters) - The Kenyan stock exchange’s main index dropped to a
10-year low on Wednesday as foreign investors fled amid turmoil in global
markets and profit-taking hit banking stocks, analysts said.

The NSE-20 share index closed at 2,545.28 points, down from 2,552.19 a day
earlier. It last was near this level on March 12, 2009, when it closed at
2,453.36.

“I would attribute it to a general market issue whereby we have had foreign
investor outflows,” said Sarah Wanga, head of research at AIB Capital.
“There have been net foreign investor outflows, while local participation
has reduced.”

Data from regulator Capital Markets Authority showed that in the second
quarter of this year, foreign investors accounted for an average 69.62% of
market turnover, down from 76.96% in the previous quarter and 70.80% in the
second quarter of 2018.

Analysts said the Kenyan index’s slide was worsened by investors fleeing
emerging and frontier assets as the U.S.-China trade war escalated.

“In the global market is the issue of China-U.S., and all markets have been
heading south on the same. It’s only fair that we would be affected,” said
Eric Malachi, head of equities at Genghis Capital.

The U.S.-China trade war has seen nearly $3 billion yanked out of emerging
market stocks and bonds this week, financial market flow tracker the
Institute of International Finance estimated.

Among leading Kenyan stocks, Bamburi Cement closed down 1.8% at 107.25
shillings, while KCB Group, Kenya’s biggest lender by assets, fell 0.38% to
39.25 shillings.

Craigie Stevenson appointed permanent CEO of Cell C

JOHANNESBURG (Reuters) - South Africa’s Blue Label Telecoms said on
Wednesday Douglas Craigie Stevenson had been appointed permanent CEO of
mobile carrier Cell C, citing its improved finances since he took the
position on an interim basis.

Blue Label, which has been trying to dig the business out of debt since
buying a majority stake in the country’s third-largest mobile carrier in
October 2016, also announced a national roaming deal between Cell C and MTN
that it says will bring substantial cost savings.

Cell C Chairman Kuben Pillay said Craigie Stevenson has made a big impact
since taking charge after Jose Dos Santos stepped down in February to pursue
another opportunity.

“In the past five months, Douglas and his team have led the company to
improved financial stability, sound business ethics and good governance,
better operational performance and on a path to sustainability,” Pillay said
in a statement.

The deal with MTN would reduce Cell C’s capital expenditure and spending on
its network, Blue Label said. The statement did not give any further details
but added that a long-form agreement was now being negotiated.

Negotiations with The Buffet Consortium, which it announced would take a
minority stake in Cell C in February, are progressing well, it added.

Blue Label has declined to name the members of The Buffet Consortium.

S.Africa's Pepkor Q3 revenue up 12%, warns of volatile outlook

JOHANNESBURG (Reuters) - South African retailer Pepkor Holdings on Wednesday
said third quarter revenue rose 12% thanks to Easter sales falling within
the quarter this year, but warned the outlook was still volatile as consumer
spending remained under pressure.

Retailers in South Africa have been struggling as consumers tighten their
belts to cope with higher taxes, fuel and electricity prices, and
unemployment.

In its statement, Pepkor said “sales volatility is expected to continue as
customers have to contend with high levels of unemployment and increased
cost of living in what remains to be an extremely challenging retail
environment.”

Still, Pepkor, previously known as Steinhoff Africa Retail, said revenue at
its clothing and general merchandise unit rose 9% in the quarter, while its
furniture, appliances and electronics segment grew 11%. Its building
materials unit grew over 50%.

Outside South Africa, the company’s sales were affected by an economic
crisis in Zimbabwe, which helped push sales down 0.7% in rand terms at its
Pep Africa segment.

The company’s shares, which had been down more than 1% on Wednesday,
regained some ground following the news and were 0.47% lower at 1413 GMT.

($1 = 15.0824 rand)

Vedanta's bid to halt sale of Konkola mine blocked by Zambia court

JOHANNESBURG (Reuters) - Vedanta Resources said on Wednesday that a Lusaka
High Court has refused its application to halt winding up proceedings
against its Zambian business Konkola Copper Mines.

“Vedanta is reviewing the ruling and will then make a decision on its next
steps,” Vedanta said in a statement.

South African business confidence falls amid weak growth

JOHANNESBURG (Reuters) - South African business confidence declined in July
as import and export volumes, manufacturing and new vehicle sales all fell,
a survey showed on Wednesday.

The South African Chamber of Commerce and Industry’s monthly business
confidence index fell to 92.0 in July from 93.3 in June, the business body
said.

Six of the thirteen sub-indices declined in July from June, SACCI said.
Those included merchandise import and export volumes, manufacturing, vehicle
sales and the real value of building plans passed.

South Africa’s economic growth outlook remains uncertain. Data last month
showed unemployment had risen to an 11-year high. Earlier data showed
economic growth shrank in the first quarter.

Initial optimism around President Cyril Ramaphosa’s ability to revive the
economy has faded, leaving South Africa’s business community increasingly
frustrated.

“The high level of optimism that existed immediately after the election of
President Ramaphosa, is being affected by indications that the ruling party
is divided on policy, political and factional lines,” SACCI said in a
statement.

SACCI added that the poor financial position of state-owned enterprises and
municipalities “continues to be a huge cause for concern”.

Struggling state-owned firms like power utility Eskom and South African
Airways rely on government bailouts for survival, straining the national
budget.

Kenya seeks 150 billion shilling syndicated loan -Business Daily

NAIROBI (Reuters) - Kenya has sent out invitations to international
commercial banks to subscribe to a syndicated loan worth up to 150 billion
shillings ($1.45 billion), the Business Daily reported on Wednesday.

The finance ministry set a budget deficit of 5.6% of GDP in June for the
2019/20 (July-June) fiscal year, targeting to borrow 324 billion shillings
or close to half of the shortfall, from external sources.

The loan, which will mature in six years, will come with an interest rate of
645 basis points above the Libor interest rate benchmark, the newspaper
reported.

Treasury officials were not immediately available for comment.

A Nairobi-based banker with an international lender said he had not seen the
term sheet of the proposed loan but the report was not surprising given the
Treasury has pencilled in foreign borrowing of $3.2 billion this financial
year.

Under President Uhuru Kenyatta, who took office in 2013 and was re-elected
in 2017, total debt has rose to more than 50% of GDP, from 42% of GDP.

The government has defended the increased borrowing, saying the country must
invest in its infrastructure, including roads and railways.

Public anger at the government’s higher appetite for debt has grown as the
country’s top prosecutor has in the past year ordered the arrest of dozens
of current and former government officials for involvement in graft in many
government ministries and agencies.

The finance minister who set the borrowing targets for this financial year,
Henry Rotich, was charged with corruption last month over the loss of
billions of shillings in two dam construction tenders.

He denied the charges and was granted bail by the court, before Kenyatta
replaced him with Labour Minister Ukur Yatani as acting finance minister.

AfDB approves $98 mln financing for Ethiopia-Djibouti road project

NAIROBI (Reuters) - The African Development Bank (AfDB) has approved a $98
million financial package for Ethiopia for a road transport corridor project
to neighbouring Djibouti, it said late on Tuesday.

The project’s total cost is $255 million, comprising an AfDB grant of $98
million to Ethiopia’s government and an AfDB grant of $5.3 million to
Djibouti’s government, plus a co-financing contribution of $151 million by
Ethiopia’s government.

“The project will enhance trade by significantly reducing transport costs,
thereby accelerating the economic growth of Ethiopia and its neighbour
Djibouti, as it is part of the main import-export corridor,” the AfDB said
in a statement.

Cobalt, Africa setbacks shrink Glencore's first-half profit

LONDON (Reuters) - Glencore reported a 32% drop in first-half core profit on
Wednesday, sending its shares to their lowest since late 2016, and said it
would suspend output at the world’s biggest cobalt mine because of a steep
fall in prices.

The logo of commodities trader Glencore is pictured in front of the
company's headquarters in Baar, Switzerland, July 18, 2017. REUTERS/Arnd
Wiegmann/File Photo

Adjusted earnings before interest, tax, depreciation and amortisation
(EBITDA) were $5.58 billion for the six months ended June 30, compared with
$8.18 billion a year earlier.

The company’s shares were trading 2.4% lower by 0818 GMT.

Chief Executive Ivan Glasenberg blamed “a challenging economic backdrop for
our commodity mix” and setbacks during the ramp-up of operations in Africa.

Glencore stands apart from other diversified miners because of its
high-profile trading division and an appetite for risk that in the past has
appealed to investors.

It initially rebounded strongly from the commodity crash of 2015-16.

But the battery mineral cobalt, which was meant to be part of Glencore’s
strategic advantage as the world switches to electrification, has become a
liability.

Supplies are concentrated in the Democratic Republic of Congo, where
Glencore is in a dispute with the government over a mining law. It is also
subject to a U.S. Department of Justice investigation.

Explaining the rationale for placing the Mutanda copper and cobalt mine in
the DRC on “care and maintenance” from the end of this year, Glencore said
the mine’s economic viability had deteriorated because of low cobalt prices,
poor access, increased costs and higher taxes.

Hit by oversupply, cobalt prices have shrunk from above $60,000 per tonne in
late 2018 to around $25,000.

Copper prices are also subdued, as trade tensions between the United States
and China have weighed on commodity markets.

Glencore said last week it had begun an overhaul of its underperforming
Africa business after the company faced a $350 million hit because of lower
cobalt prices.

The company also said on Wednesday its net debt to EBITDA ratio had crept
above its target to 1.24 times.

The ratio is an important measure of available cash for the
capital-intensive mining industry. Glencore said the level was “still
healthy” but sought to move towards a ratio of one over the next six to 12
months.

Analysts had expected Glencore to report core earnings of $5.94 billion in
the first half, according to a company-compiled consensus of 12 estimates.

In a note, Credit Suisse said the “silver lining” was that the closure of
Mutanda would boost the cobalt market. The mine produced around 13,000
tonnes of cobalt in the first half and accounts for 15% of global supplies,
Credit Suisse estimated.

It reiterated its “outperform” rating, saying: “Despite the likelihood of
further negative newsflow, our outperform rating is underpinned by
Glencore’s highly attractive valuation versus its peers.”

Botswana's private coal mine produces first saleable coal

GABORONE (Reuters) - Botswana’s privately owned coal mine has produced its
first saleable coal that has been exported to South Africa and Namibia, the
chief executive of the company that owns the mine said on Wednesday.

The Masama Coal Mine has extracted roughly 39,000 tonnes of coal since July
and aims to ramp up production to 100,000 tonnes per month of saleable coal
by next year, Minergy Chief Executive Morné du Plessiss said.

“From (this month) it is envisaged that Minergy will be mining 110,000
tonnes run of mine per month. The same quantities will be put through the
washing plant and this should result in saleable coal of between 70,000 to
80,000 tonnes, increasing to 100,000 tonnes per month next year,” du Plessis
said.

“Minergy is currently exploring various options for off take, ranging from
longer-term agreements for the finer duff product to spot deals for the
bigger fractions,” he added.

The open cast mine and associated coal wash plant is located 60 km (37
miles) northwest of Botswana’s capital Gaborone and was developed at a cost
of 400 million pula ($37 million).

The Masama mine, the first privately-owned coal mine in Botswana, is
estimated to hold 390 million tonnes of coal reserves.

Despite Botswana’s huge estimated coal resources of 212 billion tonnes,
Minergy’s Masama mine is one of only two operating coal mines in the
country. The other is state-owned Morupule Coal Mine.

($1 = 11.0011 pulas)

US shares recover as Trump renews Federal Reserve attack

US share prices recovered after earlier heavy losses, that were sparked by
fears about a trade war and the health of the global economy.

India, Thailand and New Zealand cut interest rates overnight, prompting a
fresh Twitter attack on the US Federal Reserve by President Donald Trump.

The uncertainty sparked another fall in the oil price, down almost 3%.

Gold briefly topped $1,500 an ounce, a price not seen since April 2013, as
demand for haven assets rose.

All three major Wall Street markets had been trading down about 1.5% during
the morning, with the Dow Jones index dropping 2% at the start of trading.
But at the close, the Dow and S&P 500 were almost flat, while the Nasdaq
added 0.3%.

Mr Trump again lashed out at the US central bank, demanding more economic
stimulus as the 2020 presidential elections approach, and accusing the
Federal Reserve of posing more of a threat than China.

He tweeted: "Our problem is a Federal Reserve that is too..... proud to
admit their mistake of acting too fast and tightening too much (and that I
was right!)."

And speaking to reporters at the White House later, he brushed off concerns
about falling share prices.

"I would have maybe anticipated even more" market reaction. "Ultimately it
will go much higher than it ever would have gone because China was like an
anchor on us."

His comments come amid growing fears that trade tensions between the US and
China could deepen over the next few months. Weak industrial output data
from Germany, Europe's biggest economy, also unsettled investors.

"(Markets) are moving lower on global growth concerns. And coming into
question is the broader fundamental strength of economies around the world,
" said Mike Loewengart, vice president of investment strategy, at E-Trade
Financial.

Peter Cardillo, chief market economist at Spartan Capital Securities, added:
"It's all about the fear factor over the trade war and the impact of the
trade war on growth.

"Things are just falling out of bed. You have gold soaring this morning.
Obviously, investors are running for safety."--BBC

Brexit: Food industry seeks no-deal competition waiver

The UK food industry has asked the government to waive aspects of
competition law to allow firms to co-ordinate and direct supplies with each
other after a no-deal Brexit.

The Food and Drink Federation (FDF) said it repeatedly asked ministers for
clarity on a no-deal scenario.

Existing rules prohibit suppliers and retailers discussing supply or
pricing.

The industry says leaving in the autumn could pose more supply problems than
the original Brexit date last March.

The FDF, which represents a wide range of food companies and trade
associations, said: "We asked for these reassurances at the end of last
year. But we're still waiting."

The boss of one leading retailer told the BBC: "At the extreme, people like
me and people from government will have to decide where lorries go to keep
the food supply chain going. And in that scenario we'd have to work with
competitors, and the government would have to suspend competition laws."

What is 'no-deal Brexit'?

No-deal Brexit: 10 ways it could affect you

Brexit: What happens now?

The FDF's chief operating officer Tim Rycroft told the BBC that in the event
of a no deal, there would be "selective shortages" of food that would go on
for "weeks or months".

"It may be the government is going to come to us and say, 'can't you guys
work together to ensure that remote communities or the elderly or children -
at risk groups - don't suffer from these shortages'," he said.

"We're happy to help, but the CMA can fine companies up to 10% of turnover
if they are guilty of anti-competitive behaviour. So we wouldn't be able to
do that without some pretty cast iron reassurances."

He said the industry had asked for these reassurances at the end of last
year, but despite "support" from the Department for Environment, Food and
Rural Affairs, they were still waiting.

Media caption‘I’m worried our goods could get stuck at sea’

A government spokesman said: "The UK will be leaving the EU on 31 October
and our top priority is supporting consumers and businesses in their
preparations for Brexit.

"We are working closely with the food industry to support preparations as we
leave the EU."

There is a precedent for the government or competition authorities to act in
this way, with the government pointing to four previous examples of such
orders having been made - three in relation to the defence industry (one of
which was subsequently repealed), and a fourth made regarding arrangements
for the supply of oil and petroleum products.

But John Fingleton, the former head of the Office for Fair Trading, warned:
"The last time something like this happened was in relation to dairy prices
in 2001 when companies incorrectly thought government words about higher
prices for dairy farmers would protect them from competition law. It did
not."

As a consequence, supermarkets faced huge fines for price fixing.

Which industries could suffer from a no-deal Brexit?

The cross-party Exiting the EU Committee has warned that a no deal could
mean "damaging consequences" for sectors such as:

*         Car industry

*         Food industry

*         Services businesses

*         Farming

*         Pharmaceuticals

*         Chemicals

*         Technology

*         Higher education

It comes after Domino's Pizza Group said it had spent £7m stockpiling
ingredients, including tomato sauce, in case a no-deal Brexit disrupts
supplies.

The company, which imports the tomato sauce for its pizza bases from
Portugal, said the probability of shortages of ingredients had increased
since March.

The FDF said it has repeatedly asked government to direct the CMA to issue a
"letter of comfort" to the industry that such co-ordination would be
considered legal, in the public interest and that the strict letter of the
law would not be enforced in this situation.

The industry claims that the government, in internal discussions, has played
down the impact a no-deal Brexit would have on the overall food supply.

One industry member said that a year ago: "Food was part of the conversation
in terms of what to prioritise in a no-deal Brexit".

That has changed with the government now privately acknowledging there may
be an impact on price and choice rather than overall availability.

The change in date for the UK to leave the European Union from the end of
March to the end of October is also causing problems for the food industry
as it relies more heavily on Europe for fresh food at this time of year.

There is also a lack of warehouse space available for stockpiling.

One retailer said that 31 October "is about the worst day you can pick,"
because warehouse capacity is at 105% in November, versus 75-80% in March.

They said that the UK would need 30 massive empty warehouses to store just a
week's extra food supply.

Lord Haskins, former chairman of Northern Foods, told the BBC: "The
government thinks food will flow normally in the event of a no-deal Brexit.
I have my doubts.

"I think there will be some panic buying, that will create shortages. I am
very worried about the supermarkets getting a priority, we have to remember
the schools are very important, the NHS is very important
 restaurants and
catering. All of them have very complex distribution systems. I don't see
how that can be left to the private sector to deal with frankly."

But the government spokesman said: "Half of the food we eat is produced in
the UK. The rest of our food is imported, with 30% coming from the EU and
20% from other countries. There will not be an overall shortage of food in
the UK after we leave the EU."--BBC

Japan's FamilyMart convenience chain apologises for rats in store

A Japanese convenience store chain has apologised after a video of rats
scampering around one of its branches emerged.

FamilyMart said it had shut a store and was sorry if the "unsanitary"
footage had made customers feel "uneasy".

A video circulated on social media on Monday appears to show as many as six
rodents scurrying through a store, near sushi displays and down aisles.

Broadcaster NHK said the clip had been viewed more than five million times.

The footage shows several rats racing down the side of a refrigerated
cabinet storing fresh food like sushi and rice boxes, while another rodent
rushes under shelves holding packaged items.

Dead rat in soup costs restaurant $190m

The BBC could not independently verify the authenticity of the video.

In a statement, FamilyMart said it had closed a store in the busy Shibuya
district on 5 August as it investigated the cause.

"[we] apologise deeply for making you feel uncomfortable and uneasy," a
translation of the Japanese statement said.

The company said it would disinfect the site, as well as remove and dispose
of any tainted products.

"We will proceed with measures such as disinfection... and will consider the
possibility of resuming operations [after considering the]...environment of
the store."

FamilyMart is a popular convenience store chain in Japan, and also has
outlets across Asia.--BBC

UK pushed out of Interrail scheme after dispute

The UK's decades-long membership of the Interrail scheme, which allows
people to travel around Europe on a single train ticket, is to end.

>From January 2020, UK rail journeys will no longer be covered by either the
Interrail or Eurail passes, said Rail Delivery Group (RDG), which represents
UK train operators.

It means ticketholders will have to buy separate tickets to get around
Britain.

RDG blamed a dispute with Eurail Group which manages the Interrail scheme.

Many on Twitter reacted angrily, warning it would put off visitors from
travelling beyond London.

Launched in 1972, the Interrail pass enables European citizens to travel
around 31 countries - including the UK - by train and ferry. The older
Eurail pass lets non-European citizens to do the same.

Over the decades Interrail journeys have been a rite of passage for millions
of mostly young tourists, although older people use the pass too.

Rail Delivery Group stressed British people would still be able to buy
Interrail tickets and travel around the Continent, and the changes had "no
relation" to Brexit.

Weak pound boosting UK tourism industry

It added that Eurostar trains would not be affected by the decision, which
means passholders will be able to travel from Paris, Brussels and Amsterdam
to London and vice versa.

However, travel around the rest of the UK will require a separate ticket,
affecting both UK and non-UK passholders.

Who will suffer most from this decision?

Mark Smith, a travel writer and author of train travel blog the Man in Seat
61, said that inbound visitors to the UK would be most affected.

He said the additional cost of rail travel around the UK would put many off
travelling beyond London, and they would miss out on tourist destinations
around the country.

Some UK travellers are likely to suffer, as well.

Currently, if a Briton buys an Interrail pass it covers their train journey
from home to the Eurostar and back again at the end. But that is set to end.

As one disappointed traveller Tweeted: "It costs me a fair few pounds to get
from the Scottish Highlands to London."

The exceptions here will be people who live near to the Eurostar terminals
in London and the South East.

Northern Ireland will also remain in the Interrail scheme because it is
covered by an agreement for the whole island of Ireland.

Why has this happened?

It is complicated.

RDG said the dispute stemmed from a decision by Eurail Group, a Dutch
organisation, to merge its two passes into one.

RDG said the new pass would clash with its own Britrail pass, also aimed at
non-European citizens, which covers UK rail travel and offers discounts on
local tourist attractions.

It added that Eurail Group decided to end RDG's membership of
Interrail/Eurail after RDG declined to sell the new product.

Report

RDG regional director Robert Nisbet said: "The rail industry boosts British
tourism and, working together, rail companies are offering the best option
for tourists with BritRail, which is recommended by Visit Britain [the UK's
official tourism promotion agency]."

Eurail said that all Interrail and Eurail passes purchased before 31
December 2019 were still valid for travelling on UK trains until the end of
their validity period.

But it added: "As a consequence of RDG not being part of Eurail and
Interrail, travellers who buy a Eurail or Interrail Global Pass in 2020 will
no longer be able to travel in Great Britain."

RDG said that it wanted to work with Eurail Group to develop an offer for
tourists who want to buy the Eurail and Britrail passes together.--BBC

Fresh food traders brace for Brexit

Birmingham Wholesale Market is the UK's biggest mixed wholesale market where
almost a hundred traders buy and sell fruit, vegetables, meat, fish and
flowers from all over the world.

Some of them have been open for nearly a hundred years and they sell to
customers across the Midlands and as far afield as south Wales.

Everything the market sells has a short shelf life, so there is concern
among the traders about any delays at ports in the event of a no-deal
Brexit, as customs checks are reintroduced on goods from the EU.

The government says it is reducing tariffs to zero on 87% of all produce
coming into the UK and is doing what it can to ensure there are no hold ups.

Traders there have told BBC Radio 5 Live's Wake Up To Money about their
preparations for Brexit.

Mark Tate runs George Perry Ltd, a fruit wholesaler that's been trading in
Birmingham since 1870.

"We've spoken to a lot of our importers, a lot of farms we deal directly
with over in Spain, over in France," he says.

"All the fresh produce, it just goes off so quick. The shelf life of the
produce is two weeks from the time it's been picked, so we need to get it
all in and get it through.

"The main problem is transport. Instead of just going through Calais we're
going to have to bring it through Holland and bring it through Newcastle,
Harwich, and things like that. That's the conversation we've had.

"The transport companies have put things in place, the importers have put
things in place, we've put things in place - so we're well prepared now."

Peter Marshall also sells fruit and vegetables, and imports 95% of the
produce he sells - mainly from Holland and Spain.

"We ordered it this morning at 8 o'clock. By 2 o'clock tomorrow morning it
will be on our stand and by the evening it will be on somebody's dinner
plate," he says.

He is worried about the extra costs that he might have to pay to bring goods
in quickly.

"I dread to think," he says. "We're going to have to pass the cost on. Your
profit margin is suddenly going.

"I don't think we can afford to come out with a no-deal."

He adds: "You cannot have mushrooms in a fridge much longer than three days
otherwise the go very soft and they blow and they're worthless.

"So with extra paperwork, extra queues at Dover, unfortunately then the
produce would not come into the country in a fit state.

"We've had to get paperwork to import produce from Spain and Holland in case
there is a no-deal. We've all got that in place, we're just obviously still
up in the air... we don't know what's going on."

Les Clark from Birmingham Egg says he's not worried about tariffs, but
prices might still go up. He sells eggs and chicken.

"Everything you see around us is a UK product so generally that won't effect
it as in supply," he says. "Obviously if there's no imported chicken coming
into the country that will affect the price and that will take the price
up."

This morning he's had a checklist from one of his suppliers in Holland -
going through what he needs to do to trade if there's a no-deal.

It asked him if he was ready to pay tariffs and whether he can use
"transitional simplified procedures".

"I'm not quite sure what they are to be honest - we've never used them
before. Everybody's really shooting in the dark at the moment."

According to the government's Brexit advice, transitional simplified
procedures will let companies bring goods into the country and complete
their customs declarations after they've been delivered, to try and keep
certain goods moving freely.

Mr Clark says Brexit would be "a small thing" compared to the salmonella
crisis in the 1980s, when a scare over the presence of salmonella in eggs
caused a dramatic collapse in sales of eggs.

"If we can get through that, we can get through a small thing like Brexit,"
he says.

"Generally what happens when there's a problem in the market is you get a
short-term spike then in two or three weeks... it all gets sorted out."

'Hopefully we can get prices down'

Steven Waters at J Vickerstaff & Co says "virtually nothing" in his range of
fish will be affected by Brexit.

"It's far more a global product than a European thing," he says, before
pointing out different fish and where they come from.

"New Zealand, South America, Argentina, Morocco, South Africa, Indonesia,
Iceland, India, China, St Helena.

"The finest bounties of the ocean make their way to Birmingham... oh and I
forgot Uruguay."

He says when we leave the EU new trading relationships are a priority.

"Long-term I would certainly hope we can arrange trade deals to suit our
economy, rather than trade deals being put in place to suit the European
economy as a whole.

"To benefit the end user, which is obviously the Great British public.
Hopefully we can get prices down for them."--BBC

INVESTORS DIARY 2019

Company

Event

Venue

Date & Time

Companies under Cautionary

Bindura Nickel Corporation

Padenga Holdings

Delta Corporation

Meikles Limited

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