Major International Business Headlines Brief::: 23 August 2019

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Major International Business Headlines Brief::: 23 August 2019

 


 

 


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*  Moody's sees budget cuts as option for South Africa to absorb Eskom costs

*  Old Mutual sacks Moyo again, tries to reassure shareholders

*  South Africa's Exxaro buoyed by equity investments as core profit falls

*  Zambia determined to find another investor for Konkola mine - mines
minister

*  Budget retailer Mr Price posts lower comparable sales

*  Mali's new mining code ends tax exemptions, other protections

*  S.Africa's Omnia CEO resigns, finance director appointed as replacement

*  Mozambique president says "encouraging progress" in IMF talks

*  Can Fed chief dig himself out of a (Jackson) Hole?

*  No-deal Brexit 'will see more waste going to landfill'

*  Brexit: Northern Ireland farmers warn of no deal risks

*  Ryanair flights take off despite pilots' strike

*  Qantas to run test flights on world's longest route

*  UK and South Korea sign 'continuity' trade agreement

 

 

 

 


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Moody's sees budget cuts as option for South Africa to absorb Eskom costs

JOHANNESBURG (Reuters) - South Africa is likely to absorb extra financial
support for the struggling power utility Eskom with new revenue and
expenditure measures in the next mid-year budget review, with departmental
budget cuts an option, ratings agency Moody’s said on Thursday.

 

“In any event, Moody’s sees the government’s room to maneuver as extremely
constrained,” Moody’s said in a statement.

 

Eskom, which supplies more than 90% of the power in Africa’s most
industrialised economy, is deep in crisis as its sales decline while
debt-servicing costs soar, and is dependent on government bailouts.

 

It is regularly cited by ratings agencies as one of the main threats to
South Africa’s creditworthiness and economic growth.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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Old Mutual sacks Moyo again, tries to reassure shareholders

JOHANNESBURG (Reuters) - South African insurer Old Mutual sacked its former
chief executive for a second time on Thursday and said it would continue to
fight his attempts to get reinstated, despite a court ruling overturning his
original dismissal.

 

Old Mutual fired Peter Moyo in June in relation to a conflict of interest,
but the High Court ruled last month he should be temporarily reinstated - a
decision the insurer is seeking to appeal.

 

In an open letter to shareholders who are growing frustrated with an
increasingly messy public battle that has knocked the 173-year-old insurer’s
reputation, the company’s board said it would explore all reasonable
alternative options but could not have Moyo back at the helm.

 

“A continued employment relationship between Mr Moyo and Old Mutual is
untenable,” the letter, published on Thursday, said. “For this reason, Old
Mutual has now given Mr Moyo a further notice terminating his employment.”

 

The company’s shares, which have lost over 15% since Moyo was first
suspended in May, were up 0.3% at 18.36 rand by 1346 GMT.

 

Moyo’s lawyer, Eric Mabuza, described the open letter as “corporate
madness”, and said Old Mutual directors - who Moyo has applied to have
declared delinquent - were protecting themselves rather than the company.

 

“Somebody needs to intervene to save Old Mutual from itself and its
directors,” he said, adding the purpose of the second employment termination
notice while the legal case was ongoing was unclear.

 

ACCUSATIONS FLY

Jacques Plaut, a portfolio manager at Allan Gray, Old Mutual’s second
largest shareholder, said the company had initially done the right thing to
remove Moyo.

 

While he said some shareholders wanted a financial settlement to end the
saga, he would rather see the court process continue, as long as it does not
affect the company’s operations. “I’d prefer this to play out,” he said.

 

Lawyer Mabuza said that since his appointment Old Mutual had not approached
him or Moyo to discuss a financial settlement, though his client was open to
listening to any such offer.

 

The fight started with a disagreement over the management of a conflict of
interest related to NMT Capital, an investment firm Moyo founded and in
which an Old Mutual subsidiary is the only institutional investor.

 

Since then, relations between the two parties have soured with accusations
flying in both directions. In court, Moyo argued his dismissal was the
result of attempts to raise concerns about separate governance problems at
the company.

 

These related to an alleged conflict of interest by chairman and former
finance minister Trevor Manuel, and non-disclosure of legal fees the company
had paid on his behalf.

 

Old Mutual said in its letter that these claims were “incorrect and
defamatory” and that it was confident that the matters raised were
appropriately dealt with.

 

On Aug. 16, a Johannesburg court heard arguments related to Old Mutual’s
leave to appeal, a request for the court to clarify its stance on issues
related to the previous judgment and a contempt of court application brought
by Moyo.

 

The latter was brought after Old Mutual said Moyo could not return to work
while it appealed his reinstatement. The judge is expected to rule on all
three applications within two weeks of the hearing.

 

Separately, Old Mutual said in a trading update that adjusted headline
earnings were expected to increase by between 6% and 12% when it reports
financial results next month.

 

($1 = 15.2010 rand)

 

 

 

South Africa's Exxaro buoyed by equity investments as core profit falls

JOHANNESBURG (Reuters) - South African miner Exxaro Resources on Thursday
reported a 42% rise in half-year headline profit as income from equity
investments offset lower core earnings.

 

Headline earnings per share (HEPS) rose to 17.30 rand per share in the six
months to the end of June, from 12.22 rand per share a year earlier. HEPS is
the main profit gauge in South Africa and strips out certain one-off items.

 

Income from equity investments rose to 2.92 billion rand ($192 million) from
1.05 billion in the prior period, boosted by the company’s 21% stake in
Sishen Iron Ore Company, a subsidiary of Kumba Iron Ore Limited.

 

Earnings before interest, tax, depreciation and amortisation (EBITDA)
dropped 29% to 2.81 billion rand from 3.95 billion rand in the previous
year.

 

The miner said its EBITDA fell due to factors including lower revenue,
inflationary pressure on costs, and higher distribution costs driven by
larger export volumes.

 

Coal production volumes fell 6%, impacted by the divestment of North Block
Complex operations at end of October 2018, as well as lower production at
its Matla mine, and lower demand from Eskom for the Medupi Power Station
affecting production at its Grootegeluk mine.

 

The firm declared an interim cash dividend of 864 cents per share, up 63%
year-on-year, and a special cash dividend of 897 cents from the proceeds of
its disposal of a stake in U.S. titanium products company Tronox

 

($1 = 15.2421 rand)

 

 

 

Zambia determined to find another investor for Konkola mine - mines minister

LUSAKA (Reuters) - The Zambian government is determined to “urgently secure”
an investor for Konkola Copper Mines (KCM) once the court processes over the
disputed liquidation of the mine are concluded, the mines minister said on
Thursday.

 

Vedanta Resources has been locked in a dispute with the Zambian government
since May when Lusaka appointed a liquidator to run KCM, which is 20% owned
by Zambia’s state mining company ZCCM-IH and the rest by Vedanta.

 

“I would like to categorically state that, much as the Konkola Copper Mines
matter is in court, government is willing to listen to any progressive talks
that will facilitate an amicable exit of the investor,” Minister of Mines
and Minerals Development Richard Musukwa said in a statement.

 

“Government is determined, once the court processes are concluded to
urgently secure a credible investor in an open and transparent manner.”

 

 

Budget retailer Mr Price posts lower comparable sales

(Reuters) - South African budget retailer Mr Price Group on Thursday posted
a 2.5% drop in comparable store sales for the first four months of its
financial year, but said it was seeing signs of recovery into the spring and
summer.

 

Mr Price, known for its no-frills clothing and furniture stores, said a
tough retail environment in South Africa, highlighted by a constrained
consumer spending, had hit performance in the 18 weeks to Aug. 3.

 

It said a detailed review of its merchandise process was expected to benefit
performance in the second half and that its winter inventory was cleared to
“acceptable levels”.

 

Group retail sales over the period inched 0.6% higher, but rose 3.6% in the
last two weeks of the period, it said in a trading update.

 

 

 

Mali's new mining code ends tax exemptions, other protections

BAMAKO (Reuters) - Mining companies operating in Mali will no longer be
exempt from VAT during production and will have a shorter period of
protection from fiscal changes, according to a new mining code announced by
the Mines Ministry on Wednesday.

 

The new code seeks to redress the “shortcomings” of a 2012 law by bringing a
“substantial increase” in the contribution of the mining sector to the
economy, the Mines Ministry said in a statement.

 

But it contains some clauses that international mining companies have
strongly opposed elsewhere in Africa, most notably in the Democratic
Republic of Congo where companies have been at loggerheads with government.

 

The new code in Mali, Africa’s third largest gold producer, shortens the
“stability period” during which mining companies’ existing investments are
protected from changes to fiscal and customs regimes.

 

Under the previous law, the stability clause was 30 years. It was not made
clear on Wednesday what the length of the new stability period would be, but
the Economy Ministry said last year that the government aimed to reduce
those protections to the lifespan of a mine.

 

Mali’s government had been negotiating with mining companies to draft a new
mining code, but it said last year that it would move to implement a new law
unilaterally if no compromise was reached.

 

It was not clear on Wednesday whether the new code was the product of
compromise or if it was proposed without consultation.

 

Companies with stakes in industrial gold mines in Mali include Barrick Gold
Corp, AngloGold Ashanti, B2Gold and Hummingbird Resources.

 

 

 

S.Africa's Omnia CEO resigns, finance director appointed as replacement

JOHANNESBURG (Reuters) - South African chemicals and fertiliser maker Omnia
Holdings said on Wednesday its chief executive officer Adriaan de Lange has
resigned and will be replaced by the current group finance director.

 

Seelan Gobalsamy, who has served in senior executive roles at institutions
including Liberty Holdings, STANLIB Limited and Old Mutual, will assume the
role of CEO with immediate effect.

 

The company said de Lange stepped down for personal reasons but would remain
available in an advisory capacity.

 

Omnia said it planned to appoint additional non-executive directors in due
course in order to support the executive management team responsible for
implementing its new strategy.

 

In August the company said it planned a 2 billion rand ($130 million) rights
issue which it will use to reduce debt.

 

The firm is also evaluating returns from its business units and looking at
cost cutting as it battles high debt and thin margins squeezed by difficult
trading conditions.

 

A slowdown in the manufacturing and mining sectors and drought conditions
have weighed on Omnia, which produces chemicals and industrial products,
fertilisers and explosives.

 

 

 

Mozambique president says "encouraging progress" in IMF talks

MOSCOW (Reuters) - Mozambique’s talks with the International Monetary Fund
(IMF) are making “encouraging progress,” as the country seeks to restore
access to international financing, President Filipe Nyusi said on Wednesday.

 

Mozambique has been battling to recover from a debt crisis after admitting
in 2016 to $1.4 billion of previously undisclosed lending, prompting the IMF
to cut off support and triggering a currency collapse and debt default.

 

Speaking to Reuters on the sidelines of the Russian-Mozambican Business
Forum in Moscow on Wednesday, Nyusi said Mozambique was in touch with the
IMF on restoring suspended support to the southern African state.

 

“We want to establish a good relationship with our partners from financial
institutions so that we can continue to access financial resources, and we
are doing this with our partner the IMF, and they understand us. There is a
hope that better days will come,” Nyusi said.

 

“We are discussing programmes, of course. Every three months they visit us
in Mozambique, we are in contact. There is quite encouraging progress on
this.”

 

Asked about the impact of a ruling by the country’s Constitutional Court
that declared a state-run firm’s 2013 Eurobond issue illegal, Nyusi said:
“We are following very closely the implications of this decision. But we
need to safeguard the sovereign interests of Mozambique and its people”.

 

Nyusi said in July after the ruling that Mozambique was committed to
respecting international law on debt, a view he reiterated on Wednesday,
saying this was key to remaining credible with investors.

 

He declined to say whether the ruling could affect the country’s ability to
make repayments.

 

In June, Mozambique’s finance ministry said the country had reached a
restructuring deal in principle with holders of its defaulted 2023 bond.

 

The IMF welcomed that agreement, but said the heavily indebted country
needed a wider-ranging plan to ensure long-term debt sustainability.

 

Nyusi said talks with creditors were continuing.

 

“As for public debt, we have been discussing with the creditors to find ways
to address this problem. Our aim is to strengthen confidence with our
financial partners,” Nyusi said.

 

 

 

Can Fed chief dig himself out of a (Jackson) Hole?

Jerome Powell may be "clueless" according to US President Donald Trump. But
when the Federal Reserve head takes centre stage at a gathering of the
banking elite this weekend there'll be plenty of people watching for his
clues on restoring global economic balance.

 

It's the annual symposium of central bankers from around the world, held in
the picturesque Wyoming mountain village of Jackson Hole. Mr Powell's
keynote speech is the much-anticipated highlight.

 

According to Sarah House, senior economist at Wells Fargo Securities: "The
whole point [of Jackson Hole] is to get away, take a step back from what we
are currently seeing in the economy, and talk about some of the longer term
issues."

 

But will Mr Powell have that luxury? Such is the anxiety gripping financial
markets, there's an expectation he needs to address immediate issues:
interest rate direction, conflicting signals on Wall Street, the China trade
row, stimulus, perhaps even Mr Trump's constant sniping.

 

Mr Powell faces a balancing act: Calm jittery financial markets without
antagonising further a hostile president who only this week called him a
"golfer who can't putt". Many think it's a no-win situation.

 

For Ms House, it's not even as if the US economy is in particularly bad
shape. She told the BBC that Mr Trump perhaps has a point when he insists in
his Twitter outpourings that the economy is in rude health.

 

She said: "The consumer sector is very strong right now. The labour market
is hot - we've got close to the lowest unemployment rate in about 50 years

Savings rates are quite high." Should the economy turn sour, "there's a lot
of cushion to fall back on". It's in China and Europe, specifically Germany,
where many of the big economic problems lay, she said.

 

And yet, there are fears the US economy, which has expanded each year for
more than a decade, is at risk of stalling - perhaps even tipping into
recession. Such is Wall Street's unease that share markets plunged 3% one
day last week, only to recover almost as quickly.

 

But it is in the bond markets - basically, the area that deals with loans to
governments and companies - where recession signals have been flashing
brightest.

 

This month it became more expensive for the US government to borrow money
over two years than ten. Usually, investors want a higher rate of return for
locking up money for ten years - compensation for unforeseeable risks.

 

When the reverse is the case - a so-called bond yield inversion - it
suggests investors think the short-term economic picture is gloomy. What's
more, an inversion has proved a reliable (though by no means conclusive)
indicator that recession is on its way.

 

'A little odd'

The president has dismissed recession warnings. Yet on Tuesday, he touted
tax cuts to boost the economy - only to dismiss the idea on Wednesday. Many
asked, if Mr Trump thinks the economy is in good health, why contemplate a
tax stimulus?

 

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There is, then, a mass of conflicting signals that analysts would like Mr
Powell to cut through and clear up.

 

As Russ Mould, investment director at AJ Bell points out, when the jobs and
consumer markets are healthy, you would normally expect pressure for
interest rate rises, not cuts. It's "just a little odd", he told the BBC.

 

Minutes released this week from the last Fed meeting, in July, underlined
the confusion. Rates were cut 25 basis points, but the minutes show some
policymakers wanted to go further, while others were against a cut.

 

At the very least, the Jackson Hole elite should "send a signal to markets
that they are attuned to the risks and at least doing what they can", Mr
Mould said.

 

A big problem for the Fed chief, however, is that Mr Trump has painted him
as an economic threat, and few people have come to the central banker's
support. Only this week, the president dubbed Mr Powell the "golfer who
can't put". Populists side with the president, while Democrats and
progressives think the Fed is just out to protect Wall Street and don't want
to be seen as defenders.

 

Karen Petrou, managing partner of Federal Financial Analytics, says Mr Trump
has set up Mr Powell for blame if, or when, things go wrong. For all the
president's contradictions, he's a master of political reality, she says.

 

Anti-climax?

"Mr Trump doesn't care what rates are. He cares about who voters think is to
blame for slower growth and market turmoil, and he is determined to be sure
it isn't him," she said. "What's an astute politician to do? Find a fall guy
distrusted by Republicans, Democrats, independents, populists, and
progressives."

 

Some experts think it's time Mr Powell gave a more forceful response to
pressure coming from the White House. Central bankers have emerged from the
shadows since the global financial crisis, to be seen as economic saviours
with a more powerful public voice.

 

Joseph Song, senior economist at Bank of America, thinks Mr Powell and other
Fed policymakers will at the very least defend the Fed's independence.

 

"They are going to try to hammer home that message again and again, and make
sure that they preserve their independence," he told the BBC.

 

But the Fed's task is pretty straightforward (if difficult): keep the labour
market strong without causing inflation. It means the central bank alone
cannot deliver what Mr Trump ultimately wants - sustained economic growth
and financial stability - and Mr Powell should perhaps stand up and say so,
says Mohamed El-Erian, former head of bond trading giant Pimco.

 

But, as Mr El-Erian wrote this week in an article for Bloomberg, any push
back against the president "risks fuelling immediate market instability and
aggravating White House anger". Perhaps it would be better to say nothing at
all, he ponders.

 

"No wonder a growing number of observers wonder whether central banks should
revisit the mantra that more communication and policy transparency are
always better - a traditional wisdom that led Powell to increase the
frequency of press conferences," he said.

 

But after all the expectation, if the Fed chief does opt for diplomacy and
prudence, it could end up making Jackson Hole something an anti-climax.

 

 

 

No-deal Brexit 'will see more waste going to landfill'

More waste could be sent to landfill in the UK after a no-deal Brexit, a
major waste company has told the BBC.

 

There are worries a no-deal outcome will disrupt the export of millions of
tonnes of waste to facilities in the EU, so it will have to go to landfill.

 

It would harm the environment and pile millions of pounds of extra costs
onto councils, insiders say.

 

The Environment Agency said it expected firms to find suitable solutions.

 

"We are encouraging businesses who export waste to consider and continue to
plan alternative options in case of disruption at borders," a spokesperson
for the government agency said.

 

Internal documents outlining local councils' preparation for a no-deal
Brexit, seen by the BBC and backed up by waste industry sources, suggest
there is a high level of concern among local authorities around the issue of
waste, with a significant number of councils rating the possibility of
disruption as medium or high risk in their Brexit contingency planning.

 

Meanwhile, the UK waste industry's trade body has warned a disruptive
no-deal Brexit could mean rubbish from the more densely-populated South East
being sent to landfill in northern England.

 

Currently three million tonnes of UK domestic waste is exported to the EU
annually for recycling or to be used as refuse-derived fuel.

 

Southampton City Council, in an internal document prepared ahead of the
previous Brexit deadline, said that port delays "could result in recycling
banks and waste transfer stations becoming full and potentially closing". In
that event recyclables might have to be diverted to landfill or to
refuse-derived fuel stations, the document said.

 

The main concern within industry is that the practice of sending
black-binned household waste to Germany, the Netherlands or Scandinavia will
either be physically prevented or delayed by port congestion following a
no-deal Brexit.

 

It could also become uneconomical because of a combination of further falls
in the value of the pound and the imposition of World Trade Organization
tariffs following a no-deal outcome. It is currently not clear whether the
trade is classed as importing a service - waste processing - or exporting a
good - a type of fuel.

 

Suez, one of the market leaders in the sector, believes this is likely to
lead to the UK falling short of current waste management targets.

 

"In the various impacts we've looked at, as a result of a no-deal Brexit, we
do know that there'll be some lowering of those environmental performance
indicators that we are all trying to strive to achieve," Stuart
Hayward-Higham, technical development director at Suez, told the BBC.

 

"One of the outcomes of a no-deal Brexit will mean that we will put more to
landfill," he said.

 

Whether it is due to congestion at ports or cost pressures on Suez's
customers, Mr Hayward-Higham believes in the short to medium term it will be
hard to find any alternatives.

 

The situation is better than it was a year ago, however, as the Department
for Environment, Food and Rural Affairs (Defra) has successfully negotiated
the continuation of the trade in waste, with individual regulators in EU
nations.

 

In the no-deal preparation documents, councils also referred to several
shorter-term risks to waste collection, arising from localised congestion
and fuel supply problems, and listed some possible approaches to lower their
impact.

 

Some councils are stockpiling bin bags and wheelie bins. In one case even
new bin lorries were fast-tracked to beat the March Brexit deadline.

 

Braintree Council, for example, in April listed among its high risks the
knock-on effect of transport and fuel problems and that it might have to
"consider reducing allocations of [bin] sacks per household to eke out
supplies".

 

Sevenoaks Council suggests a park and ride could be used as a temporary site
for waste. It said road congestion "leading to late or no collections will
impact on the community stockpiling waste in gardens or streets".

 

Milton Keynes council has asked waste sites whether they can accommodate
increased amounts of waste.

 

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Jacob Hayler, who runs industry body the Environmental Services Association,
told the BBC that councils' concerns were mainly reasonable worst-case
scenarios that would materialise only in a more general crisis around
transport congestion and fuel issues.

 

He added that the government deserved credit for guaranteeing the ongoing
legal framework, enabling waste exports to continue.

 

However, Mr Hayler said waste was difficult to store "so you can't have it
all just piling up at the docks".

 

A more sustainable solution such as building more domestic "energy from
waste" plants would take too long he said, leaving landfill as the only
option.

 

He suggested that mothballed landfill sites, mainly in the north of England,
could be required to take up the slack instead.

 

The most waste is created by big population centres in the South East, with
very little landfill capacity available there. Therefore less densely parts
of the country might be needed to accept overflow.

 

"It would have to start being trucked from the ports up to those landfill
spaces further up north and stuck in a hole in the ground. And that's
something that we would really like to avoid," Mr Hayler said.

 

Image caption

Jacob Hayler representing the waste industry says northern landfill sites
might be required to take waste from southern England

The government has said it will respect the new stringent EU "Circular
Economy Package" limit of 10% of household waste going to landfill by 2035,
even after Brexit. Currently around 20% is sent to landfill, having fallen
from 80% in 2001, mainly as a result of the UK application of EU regulations
on landfill and recycling.

 

The Environment Agency said that it had worked with industry to assess the
availability of landfill sites that could accept waste that would have been
exported. Even if disruption were to occur waste exporters would be expected
to make contingency plans that meant they met the high environmental
standards that are the conditions of their permits and licences, it said.

 

"Even in a no deal situation, we will continue to expect all waste operators
to adhere to the conditions of their permits and will not hesitate to take
appropriate action otherwise," an agency spokesperson said.--BBC

 

 

 

Brexit: Northern Ireland farmers warn of no deal risks

At Dean Wright's farm in Northern Ireland, the young dairy cows are mooing
as they wait to be fed but he worries that a no-deal Brexit may limit his
herd's ability to earn its feed.

 

The milk from these calves will supply Dean's cheese business, Ballylisk of
Armagh, which sells its "triple cream" cheese over the border in Ireland.

 

And for that reason, the future for dairy businesses is far from certain,
says Mr Wright.

 

He, like many food producers in Northern Ireland, fears that if the UK
leaves the EU without a deal, it could have a severe impact on his ability
to send his products across the border to the Republic of Ireland.

 

10 ways no-deal Brexit could affect you

The Irish border Brexit backstop

No-deal Brexit: What you need to know

Food enterprises like his would face "potentially insurmountable challenges"
from a no-deal Brexit, according to a joint report from the Chartered
Institute for Environmental Health and the Food Research Collaboration.

 

The government insists that it will keep an open border in Northern Ireland
and says that it will not impose checks of any kind.

 

"We have a highly-resilient food supply chain that is well versed at dealing
with testing scenarios, which enables our consumers across the UK to have
access to a wide range of sources of food," a spokesperson for the
Department for Environment, Food and Rural Affairs said.

 

But farmers that sell to the EU are worried that the paperwork that they
would be required to provide after a no-deal Brexit would delay deliveries.

 

Some food businesses have said they could go out of business within three
days of leaving the EU without an agreement, according to the report,
leading its authors to urge the government to avoid a no-deal Brexit.

 

The problem is particularly acute in Northern Ireland because supply chains
freely run across the border. Sometimes a product will cross the border
several times during processing.

 

A quarter of all milk produced on Northern Ireland's farms is exported for
processing in the Republic of Ireland, the report notes.

 

After a no-deal exit, shipments of animals and animal products exported to
the Republic of Ireland from Northern Ireland would need to have a so-called
export health certificate (EHC).

 

The documents certify that produce meets EU food standards and must be
signed by an environmental health officer or a vet for every consignment.

 

"Goods delivered without such certification would be rejected," the report's
authors write.

 

But, they say, there are not enough inspectors to deal with the amount of
agricultural goods that move across the border each day. And there is not
enough time to recruit and train new ones.

 

Two million forms

Gary McFarlane, the Northern Ireland director for the Chartered Institute of
Environmental Health, told BBC Radio 4's PM programme that the number of
officers required was "unserviceable".

 

The Department of Agriculture, Environment and Rural Affairs in Northern
Ireland told the BBC it was "still assessing the needs of industry" but said
it estimated there "would be a very significant increase in the number of
EHCs needed" which would create "additional pressure on staff".

 

Stephen Kelly, the chief executive of Manufacturing NI, told the BBC that
officials had estimated that two million of the forms would need to be
filled in and signed each year in the event of a no-deal Brexit.

 

Not enough staff

Seamus Leheny, a policy manager for the Freight Transport Association, has
said Newry, Mourne and Down expected the seafood business alone would submit
a total of 60,000 EHCs each year after a no-deal exit.

 

Shipments will be held up, disrupting supply chains and leaving perishable
goods to rot if there are not enough officials to sign the forms.

 

And it's unlikely that vets would be able to step in and make up the
expected shortfall in environmental health officers.

 

The British Veterinary Association's Simon Doherty said there were not
enough vets to cover increases in EHCs.

 

The CBI pointed to one Irish firm alone that estimated it would need 35 vets
each day to certify the food it sends across the border. Mr Doherty said
that was the equivalent to between 4% and 5% of all the vets in Northern
Ireland.

 

In his office, dairy farmer Mr Wright thinks things could be moving a little
more quickly. And he's not alone.

 

Roger Pollen of the NI Federation of Small Businesses says, for his members,
"concern really is ramping up about the fact that we rapidly reach the 31st
October then suddenly have to scramble to get ourselves properly
ready".--BBC

 

 

 

Ryanair flights take off despite pilots' strike

Ryanair flights in and out of UK airports took off as normal this morning
despite strikes by pilots, the airline has said.

 

Thousands of passengers were braced for disruption ahead of a 48-hour
walkout over pay and conditions.

 

However, the airline said 97% of flights took off on time on Thursday
morning, blaming the few delays on air traffic control.

 

On Wednesday, Ryanair lost a last-ditch legal challenge to stop the strikes.

 

But the no-frills carrier has now said it does not expect any disruption for
passengers taking off from - or landing at - UK airports on Thursday.

 

Earlier, Ryanair said it would inform passengers of any changes to their
flights by email and text message. "If you have not received any SMS or
email from us, your flight is scheduled to operate," it said. Customers can
also check its website, it said.

 

The airline said it had drafted in pilots from elsewhere in Europe to fill
in during strike action.

 

Another 48-hour walkout is planned by members of the British Airline Pilots
Association (Balpa) in early September to coincide with the end of the
summer holidays.

 

What's going on with my holiday flights?

The pilots are striking over pay and benefits. They have asked Ryanair to
change its policies on issues such as pensions, maternity benefits and
insurance for pilots who lose their licence.

 

They are also calling on the airline to "harmonise pay across the UK in a
fair, transparent, and consistent structure".

 

Speaking to the BBC's Today programme, Brian Strutton, the general secretary
of Balpa, said the union, which was only recognised by Ryanair 18 months
ago, had tried to negotiate a "comprehensive package" with the airline.

 

"Unfortunately Ryanair wouldn't engage with that, they haven't made us any
offer at all," he said.

 

Asked whether pilots had made demands for captains' salaries to be doubled
to more than £375,000 a year, as Ryanair had claimed, Mr Strutton said:
"It's drivel."

 

"I wouldn't advise anybody to pay too much attention to Ryanair's
exaggerations," he said, adding that the union had not asked for any
specific percentage increases to pay.

 

On Wednesday, Ryanair won a legal challenge to stop its Ireland-based pilots
from striking, but more of its pilots fly from the UK, where a court cleared
pilots to stage Thursday's strike.

 

In early August, Balpa announced two 48-hour walkouts, one from 22-23 August
and another from 2-4 September.

 

But Ryanair turned to the courts in London and Dublin in an attempt to block
the industrial action, prompting Balpa to accuse the airline of "bully boy"
tactics.

 

"The point actually is to disrupt Ryanair, rather than disrupt passengers,"
Mr Strutton said.

 

"If they have an operational headache and it costs them a lot of money - but
can run their schedule today - then actually that's fine."

 

What can I claim if my flight has been affected by the strikes?

If your flight has been cancelled, you should contact your airline to
organise what to do next.

 

An airline should offer a refund or a replacement flight (possibly on
another carrier) to your destination.. Generally, if you are part way
through a journey, and do not want a replacement flight, you are entitled to
a flight back to the airport you originally departed from.

 

Those are the minimum requirements for ticket holders.

 

In some cases, passengers may be entitled to additional cash compensation
for the inconvenience - but only if you receive notice that your flight is
affected less than 14 days before departure.

 

So, if your flight has been significantly delayed or cancelled because
airline staff are striking, then this is considered within the airline's
control, according to the Civil Aviation Authority - and therefore
passengers can claim this extra compensation under EU rules.--BBC

 

 

 

Qantas to run test flights on world's longest route

Qantas will run test services of its planned 19-hour flights to determine
whether passengers and crew can withstand the marathon journeys.

 

The airline wants to operate non-stop services from Sydney to London and New
York by as soon as 2022.

 

If launched, the services would be the world's longest direct flights.

 

The trial flights will begin later this year, each carrying up to 40
passengers who will have their health monitored on the journey.

 

Qantas chief executive Alan Joyce said direct flights from the east coast of
Australia to London and New York represented the "final frontier in
aviation".

 

"Ultra-long haul flying presents a lot of common sense questions about the
comfort and wellbeing of passengers and crew", Mr Joyce said in a statement.

 

How UK-Australia travel evolved to one flight

Can long-haul air travel also be low cost?

The airline said non-stop flights from New York and London to Sydney would
take about 19 hours each, subject to wind and weather conditions.

 

It will conduct three test flights and participants - made up of crew and
Qantas employees - will be fitted with wearable technology devices.

 

Sleep patterns, along with food and beverage consumption, will be tracked to
determine the impact on health and the body clock.

 

The flights will run on Boeing 787-9s. The airline said it would make a
decision on whether to start the flights by the end of the year.

 

Longest flights

Competition in the ultra-long haul aviation market has intensified in recent
years, with various airlines flying extended routes.

 

Singapore Airlines launched a near-19 hour journey from Singapore to New
York last year, which is currently the world's longest commercial flight.

 

Last year, Qantas began a 17-hour non-stop service from Perth to London,
while Qatar runs a 17.5-hour service between Auckland and Doha.--BBC

 

 

 

UK and South Korea sign 'continuity' trade agreement

The UK has signed a "continuity" trade agreement with South Korea, allowing
businesses to keep trading freely after Brexit.

 

International Trade Secretary Liz Truss signed the agreement with her South
Korean counterpart Yoo Myung-hee in London.

 

The two countries agreed to a preliminary deal in June, marking the first
post-Brexit deal secured in Asia.

 

Trade between the UK and South Korea totalled £14.6bn ($17.7bn) in 2018.

 

The agreement is roughly in line with the terms of the existing Korea-EU
free trade deal.

 

The UK has sought to secure agreements with its trading partners as it
prepares to leave the European Union in October.

 

"My priority is to make sure that British businesses are fully prepared for
Brexit and ready to trade on Thursday 31 October," Ms Truss said in a
statement.

 

No-deal Brexit: What you need to know

Brexit uncertainty 'hitting UK business investment'

Ms Yoo said the agreement would "remove much Brexit uncertainty" from the
economic partnership between the two countries.

 

South Korea is a global leader in electronics, steel and the auto industry,
and its exports to the UK reached £5.2bn last year.

 

Asia's fourth largest economy exports mostly cars and ships to Britain,
while it imports crude oil, cars and whisky.

 

Ms Truss said the agreement would allow firms such as luxury carmaker
Bentley to "keep trading as they do today, and they will be able to take
advantage of the opportunities that Brexit offers".

 

Warren Clarke, Bentley brand manager for South Korea welcomed the
"stability" brought by the deal.

 

"As the first luxury car brand to enter the market in 2006 Bentley Motors
sees South Korea as very significant to our future business plans."

 

The UK is pushing to reach agreements with its trading partners as the
Brexit deadline looms.

 

So far, the UK has signed 13 trade continuity agreements with 38 countries,
including Israel, Norway and Chile.--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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