Major International Business Headlines Brief::: 21 August 2019

Wed Aug 21 04:24:23 CAT 2019

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Major International Business Headlines Brief::: 21 August 2019

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*  South Africa to consider new nuclear in affordable way

*  Cash-strapped S.Africa state arms firm ordered to hand over taxes - union

*  Annual earnings at South Africa's Shoprite miss estimates

*  South Africa's Harmony Gold eyes potential in AngloGold Ashanti assets

*  Egypt's Banque du Caire expects to sell minority stake by early 2020

*  Kenyan shilling holds steady against the dollar

*  Weak pound draws US and Asian investors into UK tech

*  Trump considers new tax cut to boost US economy

*  Government automatically enrols firms in case of no-deal Brexit

*  UK bosses earn 117 times average worker despite pay cut

*  Brexit: No-deal plan threatens UK fuel plants

*  Why US firms are desperate to retain ageing workers

*  Fracking: UK shale reserves may be smaller than previously estimated

 <mailto:info at bulls.co.zw> 

South Africa to consider new nuclear in affordable way

JOHANNESBURG (Reuters) - South Africa will consider adding nuclear power capacity in an affordable way as part of its long-term plans, Energy Minister Gwede Mantashe said on Tuesday.

President Cyril Ramaphosa put on hold plans by his predecessor Jacob Zuma for a massive nuclear project last year because of fears it could collapse the economy, but senior officials have since indicated that plans for new nuclear haven’t been shelved entirely.

Mantashe, a former trade unionist, took over a merged energy and mineral resources ministry in May and told parliament last month that South Africa should start planning for new nuclear to come online after 2045.

South Africa operates Africa’s only one nuclear power plant near Cape Town and is working to extend its life by 20 years to 2044.

Investors have tended to worry when South African officials express support for nuclear because of the country’s severe fiscal constraints, which endanger its last investment-grade credit rating. Energy experts say adding new nuclear is more expensive than other power options.

“It comes back to a resolution we took as a government: not going big bang into nuclear, but going at a pace and price that the country can afford,” Mantashe told reporters. “The fact that we suspected corruption (in the Russia deal) doesn’t mean that nuclear is irrelevant for the country in 2019.”

Mantashe would not give a timeframe for any nuclear new build, saying the government’s energy plan needed to be approved first.

That plan, called the Integrated Resource Plan (IRP), has been held up by negotiations with business and labour, but the minister said he hoped the IRP would be taken to cabinet in the next two to three weeks.

Mantashe added that the IRP contained provisions for “modular nuclear technology”, implying government would contemplate adding nuclear reactors on a smaller scale than in the past.

Johannesburg-based independent energy analyst Chris Yelland said South Africa was still a long way from procuring new nuclear reactors.

“Just because it’s in the IRP doesn’t mean it’s going to happen,” Yelland said.

After the IRP is published, which could take months, the energy regulator will be consulted before the National Treasury does an assessment of what’s affordable, he added.

POWER CONSTRAINTS

South Africa wants to supplement its power capacity because of faults at state utility Eskom’s fleet of creaking coal-fired power plants, some of which will be decommissioned over the next two decades.

Eskom, which is reliant on state bailouts to survive, implemented some of the worst power cuts in several years in the first quarter, denting economic output.

Mantashe said his ministry wasn’t a lobbyist for any power source and that nuclear would have to compete for a place in the energy mix.

He said coal, which South Africa burns to generate most of its power, was still a “huge asset” and that officials needed to carefully manage a transition to using cleaner power sources such as solar and wind.

“You can’t just jump from one extreme to the next one,” Mantashe said. “If you switch off all coal-fired power stations in the hope that you will have renewables you will plunge the country into darkness.”

 <mailto:info at bulls.co.zw> 

Cash-strapped S.Africa state arms firm ordered to hand over taxes - union

JOHANNESBURG (Reuters) - South Africa’s High Court ordered state arms maker Denel to hand over millions in employees’ tax payments to the government, union officials said - a case that has refocused attention on cash-strapped state firms and their drain on the economy.

The Solidarity union sued Denel last month, accusing it of deducting tax and other payments from employees’ salaries then failing to hand the cash over to the South African Revenue Service (SARS) and other bodies.

Solidarity claimed Tuesday’s ruling as a victory in what it described as a broader fight to hold state firms to account. A Denel spokeswoman it had not received details of the ruling but would meet its obligations. She said Denel had approached SARS to see if it could delay payments.

The lawsuit came after Denel, a cornerstone of South Africa’s once-mighty defence industry, said it would not be able to pay employees their full salaries in June and asked the government for a 2.8 billion rand ($182.43 million) cash injection a week later.

Denel’s recapitalisation request, one of a clutch of bailouts needed for debt-ridden state-run companies, has piled pressure on President Cyril Ramaphosa who has promised to overhaul Africa’s most industrialised economy after decades of corruption and mismanagement.

Investors and credit rating agencies raised the alarm in July, when the government said it would give power utility Eskom 59 billion rand of additional financial support over the next two years, on top of an already-promised bailout of 230 billion rand spread over the next decade.

Anton van der Bijl, head of Solidarity’s Legal Services, told Reuters he thought the ruling would cost Denel millions of rand.

“It is regrettable that we had to go to court just to draw Denel’s attention to payments that it should have made a while ago.”

The company, which produces military equipment from ammunition to attack helicopters, has said it is trying to turn its operations around by exiting loss-making businesses and pushing to win contracts to ease liquidity constraints.

($1 = 15.3485 rand)

Annual earnings at South Africa's Shoprite miss estimates

JOHANNESBURG (Reuters) - South African supermarket chain Shoprite Holdings missed full-year forecasts on Tuesday hurt by inventory shortages at home and currency devaluations in the rest of Africa.

Shoprite is recovering from a poor first half when sales and profit were hit by a strike at its largest distribution centre at home and installation of a new enterprise IT system which disrupted supply chains.

In the rest of Africa, currency devaluations and forex shortages in markets such as Angola, its biggest operation outside South Africa, have made it difficult to operate profitably elsewhere on the continent, touted as the next growth spot for retailers.

Trading profit fell by 14.3% to 6.9 billion rand, while basic headline earnings per share (HEPS) for the year ended June 30 declined by 19.6% to 780.8 cents, compared with a restated figure of 971.4 cents a year earlier.

That was worse than the 15.5% fall forecast by analysts, IBES data from Refinitiv showed.

HEPS strips out certain one-off items and is the main profit measure used in South Africa.

Chief Executive Officer Pieter Engelbrecht said in a statement in-stock levels at the Supermarkets South Africa business, which generates 74.9% of group sales, are now higher than before it implemented the new system.

Sales there grew by 4.9%, with like-for-like sales growth of 1.9%.

“Notwithstanding the much improved recent performance in our core Supermarkets South Africa division, it was a testing year,” Engelbrecht said.

“A constrained economy, inventory shortages post industrial action and the implementation of a new enterprise wide IT system across our store base resulted in lost sales.”

Supermarkets Non-South Africa reported a trading loss of 265 million rand for the year as ongoing forex shortages, currency devaluations and the aftermath of rampant inflation in Angola took a toll on the business.

South Africa's Harmony Gold eyes potential in AngloGold Ashanti assets

JOHANNESBURG (Reuters) - South Africa’s Harmony Gold is interested in many projects including AngloGold Ashanti’s Mponeng operations, CEO Peter Steenkamp said on Tuesday.

Mponeng is “probably one of the many projects we are looking at”, Steenkamp said in a media call but declined further comment.

AngloGold said in May that it would review divestment options for its Mponeng mine and other South African assets to focus on higher returns elsewhere.

Egypt's Banque du Caire expects to sell minority stake by early 2020

CAIRO (Reuters) - The head of Egypt’s state-owned Banque du Caire told reporters on Tuesday that he expects to sell 30-40% of the bank by the end of 2019 or in early 2020.

A deal to sell the bank was cancelled in 2008 and an initial public offering has been postponed repeatedly over the past three years.

“We plan to offer 30-40% of the shares in the bank in principle through a capital increase and the sale of a stake to a strategic investor,” Chairman and CEO Tarek Fayed said.

Kenyan shilling holds steady against the dollar

NAIROBI (Reuters) - The Kenyan shilling held steady against the dollar on Tuesday due to thin hard currency demand from importers and some banks cutting their long dollar positions to meet the central bank’s shilling reserve ratio requirements, traders said.

At 0818 GMT, commercial banks quoted the shilling at 103.10/30 per dollar, the same as Monday’s close.

Weak pound draws US and Asian investors into UK tech

The UK tech sector has attracted more investment from the US and Asia in the first seven months of this year than it did during the whole of last year.

Japan and Singapore are the biggest Asian investors into UK tech, beating China, figures from the UK's Digital Economy Council and Tech Nation show.

Industry players say lower valuations in the UK due to the weaker pound are attracting investors to the sector.

The pound is currently trading at about a two-year low against the dollar.

Increasingly, UK companies are also heading to Asia to raise capital.

"I've seen a lot more requests from UK start-ups tapping Asian markets capital financing in comparison to a year ago," says Aditya Mathur, founder and managing director of Singapore based venture capital fund elev8.vc.

"They typically want access to the Asian market that is large and diverse, and for that they need an Asian investor to help them understand these markets, and also provide the kind of financing they're looking for."

Hedging tool

UK tech firms also provide Asian investors with a way to hedge against the trade war, analysts say.

"Foreign investment into both the US and Chinese tech sectors has gone down because of the trade war and because Europe has provided several attractive investment opportunities lately" says Yoram Wijngaarde, founder and chief executive of Dealroom, the company that pulled together the figures for the research.

"The UK provides an attractive opportunity for funds looking to grow their investments."

Investment from the US and Asia into the UK tech sector totals US$3.7bn (£3.02bn; €3.31m) so far this year. That's in comparison to $2.9bn for the whole of last year.

In total, Asia invested $1.8bn into the UK tech sector in the first half of this year, compared to $0.6bn the year before.

Companies in the UK's fintech and financial sector are amongst those that attracted the most interest from Asia's investors.

In May, Japan's Softbank bought a $800m stake in Britain's Greensill, which provides short term loans to companies to help with their operational needs.

Softbank and the Singapore-based Clermont Group also invested $400m in UK firm OakNorth Bank, a digital only bank providing loans for small and medium-sized companies.

And Japan's Mitsubishi Corporation spent $220m buying a 20% stake in UK power firm Ovo Energy.

Still, the US is by far the biggest investor in the UK's tech sector, figures show, with $2bn worth of investments so far this year.

Online food delivery businesses like Deliveroo and digital payment solutions platforms are amongst the areas that caught the attention of American investors.

'Investor confidence'

"Today's figures demonstrate investors' confidence in the UK tech sector," Natalie Black, the UK Trade Commissioner to Asia Pacific said.

"By attracting a broader mix of investors, particularly from Asia, we are showing that the UK's tech sector is one of the most competitive in the world, with a stable, bright future."

Still, worries about what impact Brexit will have on the UK's tech talent pool are worrying investors and companies, who are concerned the UK will see a brain drain if EU nationals aren't able to work in the UK in the event of a no deal Brexit.

"It's our biggest concern right now," said Russ Shaw, founder of Tech London Advocates, a campaign group promoting London's technology sector.

"One in five tech workers in London is from the EU. We're growing these businesses, and the money is flowing in, but we don't have enough talent in the country.

"We need a transition plan for companies who need to know what to do about staffing after October 31. Otherwise it undermines our credibility."

Mr Shaw has said one of the ways the UK could mitigate these risks is by making the immigration process for overseas workers easier and more welcoming in the future.--BBC

Trump considers new tax cut to boost US economy

President Donald Trump has confirmed he is considering a new, temporary payroll tax cut to help boost the US economy.

White House officials had earlier dismissed reports that the administration was discussing the move.

But speaking to reporters, the president said a "payroll tax is something that we think about, and a lot of people would like to see that".

US workers pay payroll taxes on their earnings to finance health insurance, social security, and pensions.

Mr Trump has been talking up the US economy in recent days amid growing unease about a potential recession. "We're very far from a recession," he told the reporters.

A strong economy is seen as key to his re-election prospects in 2020, but continuing trade tensions with China have sparked concerns about an imminent slowdown.

Tax cuts when the president took office helped boost the economy and sparked a surge in share prices on Wall Street. But many economists think the impact of those cuts is starting to wane.

The president said: "We're looking at various other tax reductions - but I'm looking at that all the time anyway. Tax reductions - that's one of the reasons why we're in such a strong economic position."

He also suggested his administration was looking at possible cuts in capital gains tax, but emphasised that nothing has been decided. Such a move would be likely to face challenges from Democrats in Congress.

Interest rates

The president again pressed the Federal Reserve to cut interest rates. "We're looking for a rate cut, we could be really greatly helped if the Fed would do its job and do a substantial rate cut." He has previously called for a one percentage point cut.

Mr Trump also spoke about continuing trade tensions with China, hinting that a deal with Beijing could still be some way off.

"China's [economy] had the worst year they've had in 27 years. They want to make a deal with us, but I can tell you I'm not ready to make a deal unless they are going to make the right kind of deal."--BBC

Government automatically enrols firms in case of no-deal Brexit

The government has said it will start automatically enrolling UK firms in a customs system as it speeds up its preparations for a no-deal Brexit.

The move will enable UK firms to continue to trade with EU member states after the UK leaves the EU.

Business trade groups had urged the government to act after many firms failed to register for the system.

The CBI said it was "a sensible move" but "one of hundreds of things that needed to be done" in a no-deal event.

The plan to force companies to be no-deal ready

No-deal Brexit plan threatens UK fuel plants

'No prospect of deal' unless backstop scrapped

HMRC said all VAT-registered firms in the UK - which had not already signed up to the customs system - would receive an ID number within the next two weeks.

The so called Economic Operator Registration and Identification (EORI) number will allow firms to continue to trade with customers and suppliers in the EU once the UK has left the EU on 31 October.

Firms without an EORI number will not be allowed to trade with EU member states after Brexit.

So far, 72,000 companies had registered for an EORI number. The government said its auto-enrolment scheme would mean 88,000 more firms would be registered.

Chancellor Sajid Javid said the move would help "ease the flow of goods at border points and support businesses to trade and grow".

But business lobby groups urged the government to do more to avoid a no-deal.

Nicole Sykes, CBI head of EU negotiations, said auto-enrolment would reduce the risk of lorries turning up at ports without one of the necessary pieces of paperwork.

"But the web of short and long-term consequences of no deal go well beyond this, which are both complex and damaging," she added.

"That's why the government must put just as much time and effort into securing a deal."

Dr Adam Marshall, director general of the British Chambers of Commerce (BCC) said auto-enrolment was "long overdue" but still only "a first step".

"For many firms, it will trigger more questions. Businesses still need clarity on many other cross-border trade issues, such as customs procedures at borders following a no-deal exit and when the government will launch an official database to provide ease of access to information on tariffs and quotas."

Meanwhile, the Ministry of Housing, Communities and Local Government said it will allocate £9m to councils to help make sure they are staffed to deal with any issues at ports.

Kent Council will get over £2.6m due to the pressures it faces around the Port of Dover.--BBC

UK bosses earn 117 times average worker despite pay cut

The average salary for chief executives fell by 13% between 2017 and 2018, but they still earned 117 times more than the average UK full-time worker, a report has found.

A boss of one of the UK's largest listed 100 companies earns £3.5m a year on average, the CIPD, the professional body for HR found.

The average full-time worker in the UK earns £29,574.

The report also showed a continued big gender gap at the top of big firms.

In 2018, only six of the FTSE 100 companies had a female boss, down from seven in 2017.

Shareholders 'not stopping excessive executive pay'

Hundreds of firms rush to meet gender pay deadline

Top bosses' £4m pay packet 'damaging' to UK reputation

The CIPD analyses executive pay, together with the High Pay Centre think tank every year.

CIPD chief executive Peter Cheese said: the gap between pay at the top and bottom of firms remained "unacceptably wide".

"We must question if CEOs are overly focused on financial measures and are being incentivised to keep share prices high rather than focusing on the long-term health of their business," he said.

'Public confidence'

High Pay Centre director Luke Hildyard said: "There is still more to be done to align pay practices with the interests of wider society."

He added it was important to "give the public confidence that our biggest businesses are working for the good of the economy as a whole, rather than the enrichment of a few people at the top".

The CIPD and High Pay Centre made a number of recommendations:

Pay for the top 1% of earners should be disclosed

Consider wider workforce reward practices, and understanding of organisational culture, fairness and investment in people

Link chief executive pay to both financial and non-financial measures of performance

Simplify chief executive reward packages and ensure they are linked to fewer and more meaningful measures of performance

For the first time, the study also looked at pay in the FTSE 250 companies, the 250 largest firms listed on the stock exchange after the FTSE 100 firms.

If found that, in contract to FTSE 100 pay, the salaries of chief executives in this group had stayed relatively steady. Pay averaged £1.58m in 2016 and 2018 with a 2% rise to £1.61m in 2017.

The drop in chief executive pay was welcomed by trade body The Investment Association.

Its director of stewardship and corporate governance, Andrew Ninian, said that this year, more than 50 companies had promised to cut their executive pensions because of a campaign by shareholders.

He added: "Investors have repeatedly highlighted their concerns with excessive CEO pay, so the fall in pay is a welcome sign that companies are beginning to listen."

However, unions were angered by the total pay still being earned by chief executives every year.

Frances O'Grady, general secretary of the Trades Union Congress (TUC), said: "It would take most workers two lifetimes to earn what top execs get in a single year. That's not right.

"This shocking pay gap won't change without major reform. We need new rules to give workers seats on executive pay committees. This would help bring some much-needed common sense and fairness to boardroom pay."

And GMB union general secretary Tim Roache said: "It's an absolute scandal the average worker will have to graft for more than a century to earn the same pay a CEO gets in just a year.

"GMB has never been against people getting well paid for doing a good job - but we need a maximum pay ratio enshrined in law to keep our society fair and healthy."--BBC

Brexit: No-deal plan threatens UK fuel plants

The future of the UK's fuel refineries could be threatened by a no-deal Brexit, according to an internal local authority document seen by the BBC.

Under current government plans for no deal, they face a "danger to viability" from cheaper imports, while exports to the EU are set to be hit with tariffs.

Concern is widespread in an industry deemed crucial for both economic and national security.

The government said it was working with the industry to prepare for Brexit.

"We will continue to work flat out to prepare for the potential impact on UK refineries in the event of Brexit without a deal, and to be responsive to the needs of all UK businesses and consumers both as we prepare to leave the EU and afterwards," it added.

There are six major petroleum refineries in the UK, supporting around 120,000 jobs directly and contributing about £8.6bn to the economy.

They turn crude oil into petrol and diesel as well as products such as jet fuel.

Competition 'distorted'

The concern, which is shared by both the Scottish and Welsh governments, relates to the UK government's decision not to apply tariffs - taxes on trade - to imports of petrol in the event of a no-deal Brexit.

The decision was made to lessen the inflationary impact on prices in the event of a no-deal Brexit.

The current tariff on fuel imports from non-EU countries is 4.7%.

However, under World Trade Organization (WTO) rules, a zero tariff rate must apply to petrol imports from all countries, opening up the UK to Russian fuel imports.

At the same time, the EU has said it will apply a tariff, under WTO rules, of 4.7% to UK exports, making the trade with, for example, Ireland "uneconomical", according to insiders.

While a flood of cheaper imports could initially mean lower fuel prices for consumers, the industry says relying on foreign suppliers will ultimately lead to higher prices.

But the government has also said that reversing its no-deal zero import tariff plan would lead to higher prices for consumers.

No-deal papers reveal council fears over food supply

10 ways no-deal Brexit could affect you

Brexit: A really simple guide

The Irish market is of specific importance to the Pembrokeshire refinery run by US firm Valero.

A document from Anglesey Council says: "Pembrokeshire Valero is a significant contributor to overall UK fuel supply and if they cannot compete on equal terms with EU markets, then there is a danger to their viability."

Stephen Marcos Jones of the UK Petroleum Industry Association says the changes to tariffs, "distorts the competition for us, it means the importers have an advantage over the UK refining industry".

"We could end up in a situation where it becomes extremely uncompetitive for a domestic industry to stay in the UK," he adds.

"Do we really want to be dependent on a country like Russia for our fuel? Do we want to be dependent on any country outside of the UK?"

The issue has been raised at the key no-deal Cabinet planning sub-committee. And the threat of zero import tariffs to two UK refineries was mentioned in the leaked Operation Yellowhammer government planning document published on Sunday.

The problem is that opening up the schedule of no-deal tariffs is bound to lead to demands from other industries aggrieved at not getting the same protection.

Although the industry denies it, some in government fear that charging tariffs on all imported petrol will simply raise prices for consumers, in a visible manner.

The local authority documents also reveal a range of contingency plans and discussions around possible, though not expected, fuel shortages following a no-deal Brexit.

Aberdeen City Council lists as a low risk "reduced/lack of fuel affecting waste disposal, school transportation etc", and says that it has two weeks of bunkered fuel. But it also says that the "NPA [the UK-wide National Planning Assumption] suggests that fuel shortages will largely impact on the south east, however fuel costs are likely to increase and fuel supply could be an issue".

Dorset Council alongside others has identified "key staff who would require fuel warrants" - special licences to grant them access to fuel supplies.

Sutton Council, which normally only half-fills its fuel stores due to cost and risk, "will fill fuel bunkers to maximum". And Chorley Council, in its recent Brexit risk report, says that on-site fuel tanks should be "topped up on a weekly basis to ensure that fleet vehicles can continue to operate for longer in the event of fuel shortages".

Such moves are part of an already existing national fuel plan, created after the fuel protests and shortages seen in 2000. Fuel providers have already identified key petrol stations, priority users, and arranged the mechanics for waiving competition law so that competing suppliers are legally allowed to co-operate.

Some councils have considered going further.

Chichester District Council, for example, has decided to spend £30,000 on a fuelling station and a 24,000 litre fuel tank. In a confidential document from January this year, it says fuel should be available but "might be limited at some point" and existing stores "could well last 8-10 days before we have to operate hand to mouth".--BBC

Why US firms are desperate to retain ageing workers

When Roger Klug told his employer he was retiring, there was a shiver of panic among the bosses. Now 70 years old, Mr Klug is in his 47th year at Alexandria Industries, an aluminium company in rural Minnesota.

After almost five decades manufacturing industrial products for such diverse industries as solar power and defence, the company could ill-afford to lose Mr Klug's expertise.

Like a number of US states, Minnesota has a labour shortage - specifically a skills shortage - and seeing his valuable experience disappear overnight would have left Alexandria's management with big shoes to fill.

According to the US Department of Labor, since March 2018 US monthly job vacancies have outnumbered unemployed job seekers. As the baby boomers reach retirement, it seems there are not enough millennials in the jobs pipeline ready to step in.

"We have a labour shortage and it's going to be a problem for the next couple of decades as the boomers leave the workforce," says Mark Zandi, chief economist at Moody's Analytics.

So, one answer for companies struggling to find staff is to ask workers like Mr Klug to put off retirement. He did.

"I only work two days a week, and I wanted to do something after I retired and it was just a no-brainer to stay. It's not about the money. I enjoy the work," he says.

Mr Klug still turns out high precision parts at Alexandria, and also fills in on other jobs at the company when necessary. But a key role is to pass on his skills to a new generation of staff at the company. It's a trade-off that suits both sides. Mr Klug gets to stay active; Alexandria Industries gets valuable training for new workers.

It does mean, though, that companies have to incentivise their mature employees through flexible hours, healthcare benefits, and keeping wages competitive.

"Our biggest challenge is the ability to staff the organisation so we can grow the business," says Lynette Kluver, Alexandria Industry's director of organisational development.

But it's not just the skills shortage that has extended the job prospects for ageing workers. Some employers seem to prefer them.

At Johnson & Sons, a florist in Saint Paul, Minnesota, Tom Johnson employs people ranging from ages 16 to 86.

He has nothing but praise for the older workers, even running job adverts targeted at the baby boomer generation. For a start, Mr Johnson says, older employees are more reliable.

"They don't have kids to take care of or hectic social lives," he says. And his elderly new recruits bring with them valuable experience from other fields.

Johnson & Sons' oldest employee is Tom Slagerman, who does a variety of maintenance roles and helps wrap the flower bouquets. Aged 86, he used to own a print shop, but could not continue after suffering cancer.

Mr Slagerman said it took four to five years for him to feel well enough to return to work. His wife thought he was crazy for applying for a job at his age. But the work is fun and "keeps me active".

He and Mr Klug are far from unique. The US Bureau of Labor Statistics (BLS) estimates people aged 55 and older are expected to have the fastest growing labour force participation rate - that is, in work or actively seeking work - over the next five years. And within this age group, those aged 65 and above are expected to see the fastest expansion.

But despite the growth in opportunities for older workers, it's not just about "staying active" or companies' wanting to retain skills. Regardless of the expanding US economy, the reality is that many baby boomers who wish to retire simply cannot afford to.

Andreé Flageolle, 74, another elderly Johnson & Sons employee loves the job, but admits she's there because she needs the money.

Ms Flageolle, a nurse for many years, says her social security payment is enough to cover her rent, but leaves her little to pay for utilities and other monthly expenses.

She supplements her income with another part-time job, at a company helping elderly people to remain independent and stay in their homes.

Still, the jobs are a labour of love, and Ms Flageolle particularly likes being around the younger workers at Johnson & Sons.

"I think that the mix really energises things and keeps you on your toes. Plus, I've found they teach me things, and I teach them. So it's reciprocal," she said.

And that touches on another benefit of keeping elderly people in the workforce. "We know that multiple generations working together can lead to more creative thinking and innovation", says Cal Halvorsen, assistant professor at the Boston College School of Social Work.

But it's not just a benefit for companies and the wider economy, he says. Research shows that it's good for people personally - and that has got to be good for society in general.--BBC

Fracking: UK shale reserves may be smaller than previously estimated

Previous projections of the potential amount of shale gas under the UK may have been significantly overestimated, according to a new study.

Instead of 50 years of gas at the current rate of consumption, this new research suggests there are just 5-7 years' supply.

But the UK's fracking industry, which represents companies like Cuadrilla, dismissed the report.

The said the sample size was too small to draw serious conclusions.

What is fracking?

Energy firm Cuadrilla resumes fracking

Fracking boss calls government 'pathetic'

Fracking tsar resigns over 'ridiculous' rules

The recovery of shale gas through hydraulic fracturing or fracking has been a slow moving and controversial affair in the UK over the past decade.

Attempts by oil and gas companies to drill wells and extract gas have been held up by planning issues, concerns about earth tremors and public displays of disaffection over the issue.

Through it all, the government and industry have maintained faith in the process.

They argued that there was huge potential for fracked gas particularly in the Bowland shale, a geological formation that runs under Lancashire, Yorkshire, parts of the Midlands and into North Wales.

The optimistic view was based in part on a study published in 2013 by the British Geological Survey (BGS) which issued a very positive report on the likely amount of gas in place under the Bowland.

That study suggested that it was one of the world's biggest reserves, containing some 1,300 trillion cubic feet of shale gas.

"To put that in context," wrote former Prime Minister David Cameron at the time, "even if we extract just a tenth of that figure, that is still the equivalent of 51 years' gas supply."

But there were concerns expressed at the time that the estimate was on the high side.

New approach

Now, scientists at the University of Nottingham and the BGS have developed a new method for analysing the gas content of shale, which they believe gives them a more accurate estimate of the overall potential.

"In terms of the total gas in place, the mean value from the 2013 study was 1,300 trillion feet of gas, we are struggling to get anywhere above 200 trillion feet," said Prof Colin Snape from the University of Nottingham, the lead author on the paper.

"The data we've got from the two shales we've looked at are very consistent - and gas companies Cuadrilla and Third Energy have just published two papers in the last year where they have taken core samples and measured the gas that's evolved and that data is very, very consistent with our own data."

According to the new study, the amount of gas in place, assuming an economic recovery rate of 10% would be a maximum of 20 trillion cubic feet, which would equate to around seven years' worth of gas at current UK rates of consumption.

Other researchers were impressed with the new method developed by the researchers at Nottingham.

"The results bring bad news to those hoping that northern England is floating on a bed of cheap and abundant gas," said Prof Stuart Haszeldine, Professor of Geology and Carbon Storage, University of Edinburgh, who was not involved with the study.

"Abundant hydrocarbons may have been generated in the past, but have leaked away to the Earth's surface many millions of years ago. Not only have all those hydrocarbon horses bolted, but there is no longer a secure stable door to retain very large quantities of present-day gas in these shales."

However, some of the leading experts at the BGS were cautious in their interpretation of the study, even though several of their own scientists were involved in the paper.

"Early indications published today suggest that it is possible there is less shale gas resource present than previously thought," said Prof Mike Stephenson, chief scientist for decarbonisation and resource management, at the BGS.

"However the study considered only a very small number of rock samples from only two locations."

"BGS has continued to study resource estimation in shales over the past 16 years and further studies are still required to further refine estimates of shale gas resources."

Cuadrilla, the company which has recently resumed fracking a shale gas well in Lancashire, was blunt in its rejection of the new paper.

"Those involved in publishing this should be embarrassed," said Francis Egan, Cuadrilla chief executive.

"We hold more data and technical experience of the Bowland shale than anyone else in the UK yet not once did anyone from this research group or Nottingham University contact us for our view or input."

UKOOG, the body which represents the UK's onshore oil and gas industry, also rejected the implications of the study.

"To date we have made significant advancements in the understanding of the resource potential contained within UK shale, with very encouraging results seen at both Springs Road and Preston New Road which have demonstrated properties in line with world class, US shale plays," said Ken Cronin, chief executive of UK Onshore Oil and Gas.

"What we know now is that we have a world class resource which has broadly supported the estimates originally published by the British Geological Survey. Indeed, in terms of potential gas flow indications, the results are at the upper end of our original forecasts."

"The only way to provide accurate estimates of how much gas is likely to be produced is to drill, hydraulically fracture and test many wells," said Prof Quentin Fisher, from the University of Leeds, who was not involved with the study.

"Which is exactly the intention of companies holding shale gas licences in the UK."

The study has been published in the journal Nature Communications.--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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