Major International Business Headlines Brief::: 18 July 2019

Thu Jul 18 02:13:13 CAT 2019

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Major International Business Headlines Brief::: 18 July 2019

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*  South Africa's retail sales jump in May ahead of expected rate cuts

*  South African subsidiary of carmaker Ford to add 1,200 jobs

*  Egypt says its economy on right track after 5.6% growth in 2018/19

*  Zambia expects bids for Konkola Copper Mines within weeks -minister

*  Acacia seeks stay of international arbitration against Tanzania

*  South Africa's rand slips ahead of rate decision as trade fears weigh

*  Send in the troops: Congo raises the stakes on illegal mining

*  Zambia finance minister urges quick implementation of austerity

*  South Africa's Amplats expects half-year earnings to double

*  Nigeria's state oil firm awards oil-for-fuel swap deals - sources

*  Netflix shares sink 10% as subscriber take-up slows

*  Sotheby's auction of rare sneakers nets more than $850,000

*  Ferry companies warn of gridlock in no-deal Brexit

*  Tourists facing travel money 'shock' this summer

*  Swatch profits hit after crackdown on grey market

*  Amazon Marketplace to be investigated by the EU

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South Africa's retail sales jump in May ahead of expected rate cuts

JOHANNESBURG (Reuters) - South Africa’s retail sales rose more than expected in May as sales of household goods, furniture and appliances expanded quickly, a hint that pressure on consumers was easing ahead of an expected lending rate cut that may further support spending.

On Wednesday, Statistics South Africa said retail sales rose 2.2% year-on-year, better than a Reuters forecast for a 1.6% expansion. On a quarterly basis, sales rose 1.7%.

Sales by general dealers were up 4% followed by a 3.2% expansion in the furniture and appliances category, and a 2.9% increase in pharmaceutical goods, a sign consumers were more willing than before to spend on semi-durable goods.

Consumers’ finances have been under stain due to a prolonged period of weak economic activity, climbing unemployment, higher taxes and fuel price increases, stoking calls for the Reserve Bank (SARB) to reduce lending rates to stimulate spending.

The bank is set to cut interest rates by 25 basis points at Thursday’s meeting, a Reuters poll showed last week, while forward rate markets on Wednesday showed investors pricing in a close to 40% probability of a cut by that margin.

The bank’s policymakers as well as some analysts, however, doubt whether rate cuts will have an impact on long-term growth even if they do boost consumer spending.

“A rate cut will assist at the margins but it will not drive an economic recovery. The nature of South Africa’s economic problems are fiscal in nature, not monetary,” said George Glynos, managing director at ETM Analytics.

The rand inched firmer following the data, trading at 13.9450 per dollar at 1130 GMT from an open of 13.9600.

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South African subsidiary of carmaker Ford to add 1,200 jobs

JOHANNESBURG (Reuters) - The South African unit of Ford Motor Co said on Wednesday it would hire an additional 1,200 staff at one of its local assembly plants, an increase of over 25 percent, to add an extra shift and raise production.

The additional shift, which will increase production to 720 vehicles per day, is the result of a 3 billion rand ($215 million) investment in South Africa that was announced in 2017, aimed at increasing annual production to 168,000 units.

The U.S.-owned company currently employs around 4,300 people in South Africa, at the plant in the Silverton suburb of South Africa’s administrative capital Pretoria, which will add the extra shift, and at another site in the coastal city of Port Elizabeth.

“The third shift will allow us to ramp up our production from the current 506 vehicles assembled per day to a peak of 720 units to satisfy the strong demand from customers in South Africa, as well as for our crucial exports to 148 markets around the world,” Ockert Berry, vice president of operations for Ford Middle East and Africa said in a statement.

Ford joins a number of other global carmakers in ramping up production on the continent, which promises rapid growth at the same time as trade tensions and upsets like the United Kingdom’s departure from the European Union threaten their operations elsewhere.

The South African arm of Japanese carmaker Nissan also announced a similarly sized investment earlier this year, increasing production at its local plant by 30,000 units, while BMW production chief Oliver Zipse said earlier this month that it had moved some production from the UK as a result of Brexit, and that British plants no longer built South African components.

Around a third of Ford’s local production is sold in South Africa and other sub-Saharan African countries, with the rest exported elsewhere.

The additional shift will start in August and will be focused on the New Ranger, Ranger Raptor and Everest models. The locally-built Ranger is ranked as the top-selling pick-up in Europe and leads light commercial vehicle exports.

The plant in Port Elizabeth produces 120,000 diesel engines per year for the Silverton plant, as well as 130,000 units per year for export to North America, China and Europe and 280,000 component sets per year.

($1 = 13.9720 rand)

Egypt says its economy on right track after 5.6% growth in 2018/19

CAIRO (Reuters) - Egypt’s economy grew 5.6% in the 2018/19 fiscal year and is “on the right track” as it completes IMF-backed reforms, Prime Minister Mustafa Madbouli said on Wednesday.

The budget deficit came in at 8.2% of GDP, he said, which was slightly below an official forecast of 8.4%.

Egypt is emerging from a three-year economic reform programme tied to a $12 billion loan from the International Monetary Fund.

Madbouli said Egypt’s primary surplus stood at 2% for the fiscal year, which ended in June, and also pointed to a recent drop in inflation as positive signs. Economic growth was up from 5.3% in 2017/18 and in line with a government forecast.

“At the same time, it induces us to complete the implementation of reforms and the efforts exerted to achieve the targets for the new fiscal year,” Madbouli said in a statement said.

Egypt has been praised by international lenders for swift reforms implemented since 2016, though austerity measures and inflation have left many Egyptians struggling to get by.

The reforms included a sharp devaluation of the currency, the introduction of value-added tax and the elimination of subsidies on most fuel products.

Headline annual inflation dropped to 9.4% in June from 14.1% the previous month, though it is expected to rise over the rest of the summer as the impact of the latest round of fuel subsidy cuts kicks in.

Zambia expects bids for Konkola Copper Mines within weeks -minister

LUSAKA (Reuters) - Zambia’s Minister of Mines Richard Musukwa said on Wednesday nine companies would submit bids for Konkola Copper Mines - which is at the centre of an ownership dispute with Mumbai-listed Vedanta - within weeks.

“The bidding process will start once all the companies have conducted due diligence and we are hoping this can happen within a couple of weeks,” Musukwa said at a media briefing, adding companies from Russia, Turkey, Australia, Canada and China were doing due diligence.

Acacia seeks stay of international arbitration against Tanzania

LONDON (Reuters) - Tanzania’s Acacia Mining on Wednesday said it was seeking a stay of international arbitration proceedings, days before a hearing was due to start and two days before a deadline for a buyout proposal by Barrick Gold Corp,.

The gold miner has been fighting a bid by majority shareholder Barrick, which Acacia says undervalues it. The deadline for a firm bid from Barrick, which holds 63.9% of Acacia, is Friday.

That deadline is just ahead of Monday’s scheduled start of international arbitration proceedings against the Tanzanian government, with which Acacia has been locked in dispute over a $190 billion tax bill.

“If the Tanzanian government agrees to the stay, Acacia would expect the arbitration hearing to be postponed to provide time for the government of Tanzania to complete its settlement discussions with Barrick Gold Corp,” Acacia said in a statement.

Tanzanian allegations that Acacia has broken environmental regulations have ratcheted up the pressure on Acacia.

Late on Tuesday, Acacia said the Tanzanian National Environment Management Council issued a notice for Acacia’s North Mara mine to prevent it using its tailings storage facility by 6 a.m. local time on Saturday on the grounds the mine had breached environment rules.

In a statement, Acacia said it was seeking clarification and would request any investigation reports or data upon which the North Mara notice is based.

Acacia’s North Mara mine was issued with an Environmental Protection Order and fine in May 2019 for alleged deficiencies at a tailings storage facility.

But Acacia says it has never received any reports that would justify the decision. It said the North Mara technical team has been working “constructively and collaboratively” with the Tanzanian government.

South Africa's rand slips ahead of rate decision as trade fears weigh

JOHANNESBURG - South Africa’s rand slipped against a firm dollar on Wednesday, as investors held off big trades a day ahead of a central bank rate decision.

The rand stood at 13.97 verses the greenback by 0558 GMT, a 0.13% decline compared with Tuesday’s close.

The mood across emerging markets was not helped by U.S. President Donald Trump’s threat to put tariffs on another $325 billion of Chinese goods.

South African government bonds were also slightly weaker, with the yield on the benchmark 2026 instrument rising 1.5 basis points to 8.040%.

Send in the troops: Congo raises the stakes on illegal mining

DAKAR (Reuters) - A Congolese army officer arrived in the village of Kafwaya in June and warned residents not to trespass on a major Chinese copper and cobalt mine next door. As night fell about a week later, the soldiers moved in.

“They didn’t say anything to anyone,” said Fabien Ilunga, an official in Kafwaya, which is home to thousands of miners eking out a living by illegally exploiting the nearby mineral resources. “The army started to burn down the tarpaulin houses.”

Deploying soldiers to clear tens of thousands of illegal informal miners from mining concessions is a new approach by the authorities in Democratic Republic of Congo, who have wrestled with the problem for decades.

Years of negotiations, alternative employment programmes and sporadic interventions by the police have all failed to resolve the issue, which has long been a concern for mining companies sitting on some of the world’s richest mineral deposits.

But using soldiers to keep illegal miners out of vast concessions is likely to be a protracted and potentially violent battle, analysts say. The United Nations has often accused the Congolese army of human rights abuses.

Tech giants and automakers that use Congolese cobalt in smartphones and electric cars are already trying to clean up their supply chains after reports of child labour at informal mines in Congo. Any prolonged violence between soldiers and miners could unsettle investors again.

“Any further involvement of state security forces on mine sites will increase miners’ social risk exposure, which is already probably the biggest risk they face,” said Indigo Ellis, Africa analyst for risk consultancy Verisk Maplecroft.

The Congolese authorities say informal miners are endangering the country’s interests and the army deployments are also meant to prevent the kinds of accidents that killed 43 illegal miners at a Glencore project on June 27. [nL8N23Y583]

HOMES TORCHED

Since the army deployed in southeastern Congo, thousands of illegal diggers have been pushed off Glencore’s Kamoto Copper Company (KCC) mine and China Molybdenum’s Tenke Fungurume Mine (TFM).

In the case of Kafwaya, which is in China Molybdenum’s 1,800 square kilometre TFM concession, local activists said a few days after the army’s initial warning on June 13, soldiers set market stalls ablaze and put up camp nearby.

Less than a week later, soldiers torched dozens of homes belonging to miners and farmers alike and ransacked a school, residents and a local activist group said.

They said the fires severely burned a 3-year-old girl and a 14-month-old boy who were caught inside their homes.

General John Numbi, who led the operation, denied anyone was hurt. Asked later about the specific allegations, he sent a text message that just said: “Let’s be serious.”

China Molybdenum declined to comment. TFM’s deputy general director, Kasongo Bin Nassor, said at a conference last week that the mine had asked the government to do more to secure the concession, but did not request the army be deployed.

He said the mine had been invaded and illegal miners had roughed up TFM employees, damaged machinery and made it hard to access certain parts of the concession.

“Once you have metals that require serious investment, you cannot encourage artisanal mining,” Bin Nassor said.

General Numbi is currently under U.S., EU and Swiss sanctions for reportedly threatening violence against opposition politicians in 2016. He denies any wrongdoing.

STRATEGIC INTERESTS

The risk of ending up with Congolese cobalt mined by children in dangerous conditions has already prompted some car companies to look for alternatives.

Tesla is trying to use more nickel - which is mainly sourced from Indonesia, the Philippines, Russia and New Caledonia - and less cobalt in car batteries. Tesla says its next generation battery won’t use cobalt at all.

BMW, meanwhile, said in April it would buy cobalt directly from mines in Australia and Morocco. [nL5N2261NA]

General Motors said it did not purchase cobalt directly and referred questions to LG Chem, its battery supplier.

LG Chem said it was using blockchain technology in partnership with automakers Ford Motor Co. and Volkswagen (VOWG_p.DE), tech firm IBM and Huayou Cobalt to trace ethically sourced minerals, including cobalt.

Apple said since 2016 its suppliers in Congo have taken part in third-party audits to ensure they abide by a code of conduct. The U.S. tech giant dropped two cobalt refiners and smelters last year.

But with 64% of global cobalt supplies coming from Congo in 2018, according to the United States Geological Survey, it will be difficult for companies to cut the country out of their supply chains entirely. tmsnrt.rs/2NQJmFg

“In the near term, they know and accept that they are going to have to buy cobalt or products at least in some part from the DRC,” said Caspar Rawles, senior cobalt analyst at consultancy Benchmark Mineral Intelligence.

Glencore said its KCC concession had not asked the army to intervene and while troops were operating around the mine, they had not entered the site. The army said it had evicted 20,000 miners. The miners responded with a series of protests during which stores were looted and at least 20 people were arrested.

The commodities trading and mining company based in Switzerland referred Reuters to a letter its managing director wrote to Congo’s President Felix Tshisekedi urging Congolese forces to respect human rights and use the least force possible.

IndustriALL, an international union, said its affiliate at KCC had asked regional Governor Richard Muyej to address the issue of illegal miners but said it opposed sending in the army.

“There are strategic interests of the country at stake,” said General Numbi. “If the investors complain ... the government will take measures (to deploy the army) if it decides the police cannot handle it.”

MINING ALTERNATIVES

The industrial copper and cobalt mines in the southeast of Congo are far from the conflict zones in the east of the country where there are gold, tin, tantalum and tungsten mines controlled by militias and army commanders.

Those eastern areas of Congo have already been targeted by U.S. legislation seeking to stop so-called conflict minerals ending up in products such as smartphones.

But analysts say clashes between the army and miners in the copper belt where TFM and KCC are located could further unsettle investors already worried by the reports of child labour and dangerous conditions in artisanal mines.

“It’s not entirely clear whether you can operate a responsible mine inside the DRC or not. I genuinely do not know whether you can,” said one mining investor, who asked not to be named for fear of angering authorities.

Clashes earlier this year between police and stone-throwing miners in the southern Lualaba province, where TFM and KCC are located, killed three officers, convincing authorities that better-armed forces were needed to take on the miners.

Local police and private contractors who are supposed to secure mines are often bought off by the illegal miners and traders, analysts say, strengthening the case for intervention by the army.

The government has sought to convince informal miners to leave the sector in favour of agriculture, and mining companies have offered alternatives too.

Glencore, for example, supports cooperatives working in farming, welding, sewing and carpentry.

But informal miners say they don’t earn nearly as much through these activities and often begrudge industrial mines claiming the richest concessions, sometimes on land where their families have lived for generations.

An estimated 170,000 small-scale miners operate across Lualaba, and their numbers appear to be growing. Often equipped with just shovels, buckets and straw sacks, they burrow deep underground in search of ore. Accidents are common.

“There are cave-ins all the time on many of these sites,” said one official at an industrial mine in Congo. “Wherever there is cobalt in the DRC, there will be artisanal miners.”

In the absence of long-term economic alternatives for the illegal miners, they are likely to return to the concessions, pushing soldiers to resort to ever harsher measures, said one mining consultant, who asked not to be named.

“Displacing artisanals is like whack-a-mole,” he said. “What they will end up doing is just brutalising the miners in order to make them too afraid to come back.”

Zambia finance minister urges quick implementation of austerity

LUSAKA (Reuters) - Zambia should step up its implementation of austerity measures to rein in soaring debt and stabilise the economy, newly appointed finance minister Bwalya Ng’andu said on Tuesday.

Zambian President Edgar Lungu abruptly fired Margaret Mwanakatwe, his former finance minister, on Monday, appointing in her place the respected deputy head of the central bank, who said he might further delay a sales tax designed to rebalance its economy.

The International Monetary Fund has repeatedly warned that Zambia’s high debt and shrinking foreign exchange reserves leave its economy vulnerable.

Ng’andu said in a statement issued by the ministry of finance that Zambia needed to narrow the gap between commitments made in implementing austerity measures and action taken.

External debt rose to $10.05 billion at the end of 2018, compared with $8.74 billion a year earlier. Zambia is trying to shrink a fiscal deficit that amounted to 7.5% of gross domestic product last year.

“The current challenge is that we have agreed on (austerity) measures over the last few years, but we need to step up on our action,” Ng’andu said.

Ng’andu said the government needs to take specific steps toward sustained economic stabilisation and growth.

Zambia has delayed the receipt of loans totalling $2.6 billion contracted last year in order to rein in its soaring debt, his predecessor, Mwanakatwe, said in May.

The 25 loans had been in the pipeline from 2016 to 2017 but only reached financial closure in the first and second quarters of last year, she said.

The government also plans to delay some projects and cancel others in order to cut down on expenditure and debt.

Ng’andu said effective expenditure control, debt management and enhanced domestic revenue collection were critical to boost Zambia’s economy.

South Africa's Amplats expects half-year earnings to double

JOHANNESBURG (Reuters) - Anglo American Platinum (Amplats) on Tuesday said it expects half-year earnings to double, raising its outlook on higher metals prices and a stockpile gain of 1.0 billion rand ($72 million).

Amplats, which previously flagged an 80% increase, said it now expects headline earnings per share (HEPS) for the six months to June 30 of 2,671 to 2,924 cents per share, an increase of 108% to 128%, compared with 1,282 cents A year earlier.

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

Amplats will release its results on July 22.

($1 = 13.8822 rand)

Nigeria's state oil firm awards oil-for-fuel swap deals - sources

LAGOS/LONDON (Reuters) - Nigerian state oil firm NNPC issued award letters on Monday for highly sought-after contracts to exchange crude oil for imported fuel, oil industry sources told Reuters.

A total of 15 groupings, with at least 34 companies in total, received award letters, four sources with knowledge of the deals said.

The award letters were circulated on Monday. While the contracts have not yet been signed, that is largely a formality as the terms have been negotiated, the sources said, and the list of companies is unlikely to change.

NNPC spokesman Ndu Ughamadu, when reached for comment, said he would seek verification of the news.

The number of winners is an expansion on the previous list, which had 10 pairings with a total of 22 companies. Oil companies work hard to get on the list, which gives them coveted, and potentially lucrative, access to Nigeria's crude oil cargoes reut.rs/2GbOxcs.

NNPC extended the previous contracts at least twice as the nation focused on elections in February this year.

The swap deals have supplied virtually all of Nigeria’s gasoline for the past two years, as capped prices mean that other would-be importers cannot make money bringing the fuel into the country.

Nigeria, with a population of some 190 million, consumes close to 40 million litres per day of gasoline and is easily the largest fuel market in West Africa.

While NNPC has refineries with a combined nameplate capacity of 445,000 barrels per day, decades without regular maintenance or investment leaves the nation almost wholly reliant on imports.

The following is a list of the winning groups:

1: BP/Aym Shafa

2: Vitol/Varo

3: Trafigura/AA Rano

4: MRS

5: Oando/Cepsa

6: Bono/Akleen/Amazon/Eterna

7: Eyrie/Masters/Cassiva/Asean Group

8: Mercuria/Barbedos/Petrogas/Rainoil

9: UTM/Levene/Matrix/Petra Atlantic

10: TOTSA

11: Duke Oil

12: Sahara

13: Gunvor/Maikifi

14: Litasco /Brittania-U

15: Mocoh/Mocoh Nigeria

Netflix shares sink 10% as subscriber take-up slows

Netflix added fewer paid subscribers than expected in the last three months, with the streaming service blaming price rises.

Shares in the company sank 10% after Netflix added 2.7 million new customers worldwide in the April-June period, well below expectations.

"Our missed forecast was across all regions, but slightly more so in regions with price increases," it said.

It comes as competition increases from rivals such as Walt Disney and Apple.

The company, behind such hits at The Crown and Orange is the New Black, said in its statement: "We don't believe competition was a factor since there wasn't a material change in the competitive landscape during [the second quarter] and competitive intensity and our penetration is varied across regions," the company said.

The additional 2.7 million subscribers fell far short of analysts' estimates of about five million.

"While our US paid membership was essentially flat in Q2, we expect it to return to more typical growth in Q3, and are seeing that in these early weeks of Q3," Netflix said.

However, that failed to calm investors, who in after-hours trading on Wall Street bailed out of a stock that had risen by almost 35% so far this year.

'Crucial months'

Netflix will be losing some of its hit shows such as Friends to rival platforms being launched in the coming months, but argued that it will make up for that with original content.

"Much of our domestic, and eventually global, Disney catalogue, as well as Friends, The Office, and some other licensed content will wind down over the coming years, freeing up budget for more original content," the company said in its statement.

"From what we've seen in the past when we drop strong catalogue content... our members shift over to enjoying our other great content."

Net income fell to $270m in the second quarter ending 30 June, from $384m a year earlier. Total revenue rose to $4.92bn from $3.91bn.

Nicholas Hyett, equity analyst at Hargreaves Lansdown, said Netflix could face tougher challenges as competition from rival streaming services intensifies.

"The performance in the next two quarters will be crucial. Fending off the likes of Disney and Apple with one hand while scooping in new customers with the other is a big ask," he said.--BBC

Sotheby's auction of rare sneakers nets more than $850,000

A collection of sneakers has sold at auction for $850,000 (£690,000) to Canadian entrepreneur Miles Nadal.

Sotheby's put 100 pairs of the rarest sneakers ever from Nike, Adidas and Air Jordan on sale in New York.

All but one of the pairs went to Mr Nadal, with the 1972 Nike Waffle Racing Flat Moon Shoe still for sale during the week-long auction.

These are expected to fetch $160,000, confirming, says Sotheby's Noah Wunsch, that sneakers are now collectible art.

The sale also included two pairs of Nike Mags, shoes made famous in the 1989 Back to the Future Part II because they had automatic lacing - a technology the company didn't actually bring to the market until almost three decades later.

The limited edition Back to the Future 2016 sneakers were thought to have fetched between $50,000 and $70,000.

Another star of the auction was the Jeter edition Air Jordan 11, created to commemorate New York Yankee baseball star Derek Jeter's retirement in 2017. Only five pairs were made. They were estimated to have sold for close to $60,000.

Mr Nadal told broadcaster CNBC that he plans to display the sneakers at his Dare to Dream Automobile Museum in Toronto, where has a collection of 142 cars and 40 motorcycles.

"I have always been an avid enthusiast and appreciator of unique art and collectibles that represent innovative design, exceptional craftsmanship and new and exciting trends in pop culture," he said.

It was unclear if he was bidding for the last remaining pair being auctioned. The Nike Waffle Moon Shoes were designed by Nike co-founder Bill Bowerman.

Just 12 pairs were made for runners at the 1972 Olympic trials, and the pair being auctioned is thought to be the only ones that weren't actually worn.

Mr Wunsch, Sotheby's global head of e-commerce, said Mr Bowerman literally used a waffle iron to imprint the tread on the shoes.

He said the interest in the auction showed that sneakers were being viewed as works of popular art culture.

"I think it's a really fascinating time in the world, where it's it's not so much sneaker culture, it's just culture. We see fashion. We see art. We see luxury all playing in the same field," he said.

The highest price fetched at a public auction for sneakers is thought to be $190,373 for a pair of signed Converse shoes worn by Michael Jordan in the 1984 Olympic basketball final. The shoes were auctioned in California in 2017.--BBC

Ferry companies warn of gridlock in no-deal Brexit

Cross-channel ferry companies have warned of gridlock around British ports, as they confirm they will not allow trucks to board ferries bound for France after a no-deal Brexit, unless they have the right paperwork.

"We cannot take lorries across that cannot enter the country," one ferry company told BBC Newsnight.

Many UK exporters are yet to obtain the proper documentation.

The Department for Transport said plans were in place to manage disruption.

Newsnight has spoken to sources at the main freight ferry companies operating in the channel.

'A bundle of trucks with nowhere to go'

"If a truck doesn't have the right document we cannot board him. We cannot take lorries across that cannot enter the country," said Gert Jakobson, a spokesman for DFDS, which transports 1.2 million trucks between Dover and Calais and Dunkirk each year.

That was corroborated by a source at a different ferry company, which did not want to comment publicly.

"There's no point in boarding vehicles, because at the other end our French colleagues have told us we won't be allowed to proceed," the source said.

Both companies said the result of this procedure, given many trucks are expected to turn up without the right documentation, was likely to be tailbacks of trucks on the UK side of the channel.

UK firms 'not even close to ready' for no deal

No-deal Brexit: What you need to know

"For a period of time, for a few weeks and months, we assume the problems will be bigger. There will be more who are not yet accustomed to the paperwork. There will be a learning curve and then we believe it will work much better," said Mr Jakobsen.

"If you have a constant stream of lorries that don't have the right documentation and it may take anything from 24-48 hours to get that documentation, potentially you've got a whole bundle of trucks and nowhere for them to go," said the other source.

Jean Marc Puissessau, the president and chief executive of Port Boulogne Calais, also told Newsnight that the French side expects ferry companies to deny boarding in the UK to trucks without the right paperwork.

"If hauliers don't have documents they won't be allowed to board. This was the rule on 29 March. Those same rules will apply on 31 October," he said.

A spokesperson for the Department for Transport said: "There are well-developed plans in place to manage any traffic disruption in Kent in the event of a no deal scenario, keeping the M20 open with traffic continuing to flow in both directions.

"The government remains focused on ensuring the UK's smooth and orderly withdrawal from the EU."

Both French and UK port officials have previously sought to downplay concerns about traffic chaos in the wake of a no-deal Brexit.

In June, the Dover Harbour Board CEO Doug Bannister said "the Port of Dover, as with our sister ports in France and our ferry partners, are prepared for the 31st of October."

And his Calais counterpart Mr Puissesseau, had pointed to the construction of new customs facilities and vehicle holding pens at the French port, saying "there will be no delay" on the French side.

But research by Imperial College London, commissioned by the BBC, suggested just two minutes of extra check times at UK borders could result in queues extending up to 30 miles from Dover into Kent.

And Newsnight revealed that as of June 2019, two thirds of the relevant UK firms had still not applied for an Economic Operator Registration and Identification (EORI) number, which they would need to trade with the EU after a no-deal Brexit.

Earlier this week, Chancellor Philip Hammond raised concerns that France could effectively push problems to the UK side of the channel.

"Many of the levers are held by others — the EU 27 or private business. We can seek to persuade them but we can't control it. For example, we can make sure that goods flow inwards through the port of Dover without any friction but we can't control the outward flow into the port of Calais," the chancellor told Panorama.

Each day, around 10,000 lorries pass through the port of Dover, which handles 17% of the UK's goods trade, worth more than £120bn.--BBC

Tourists facing travel money 'shock' this summer

Tourists could face a "shock" this summer when they travel abroad according to foreign currency experts.

Those that buy euros at the airport can expect to receive around 98 euro cents for their pound. Better rates can be found by buying in advance, with the Post Office offering €1.0819.

But that's still a long way from the summer of 2015, when tourists were getting at least €1.32 for their pound.

The big fall came in 2016 after the UK voted to leave the European Union.

Tourist rates are based on trading levels on the international currency markets.

On those markets the pound earlier hit $1.2382, the lowest level against the dollar in 27 months.

That fall was attributed to rising fears that the UK will leave the European Union without a withdrawal agreement.

The pound also fell against the euro, hitting €1.1062, its lowest level for the year.

"It will be a big shock for tourists to Europe if they are expecting to get good value this year," said James Hickman, the chief commercial officer of travel money firm FairFX.

He does not expect any recovery in the pound until the Brexit situation is resolved.

"All pointers are that we're in for a rocky road," he says.

"If people are waiting to buy at a better rate I don't think that's going to happen."

If there is a no-deal Brexit then he thinks the pound could go lower. He points out that some in the financial markets think it could hit parity against the dollar, meaning tourists would receive just $1 for each pound they exchange.

At the moment the tourist rate for the pound against the dollar is $1.2127. That's down 5% on this time last year, according to the Post Office.

How to get the most from your travel cash

Getting the best from your travel money

Analysis by Kevin Peachey, BBC personal finance reporter

Millions of us would have spent many hours hunched over a computer trying to find the perfect accommodation and flights for a summer getaway,

Currency experts say holidaymakers should put the same amount of effort into organising holiday money.

That certainly means never waiting until you reach the airport to exchange money, as bureaux in the airport complex usually have the worst rates.

Timing can be tricky - it is difficult to predict how the value of the pound will move, so one common suggestion is to change half of your holiday money weeks in advance of departure, and the rest just before, to hedge your bets.

Ordering currency online in advance and then collecting the cash in person can also secure a better rate.

Cash exchange is not the only option. Carrying a wad of notes can be dangerous and not always covered by travel insurance. The market for specialist pre-loaded currency cards is growing, and banks are competing on the rates and deals for overseas use that they offer to current account holders. So doing your homework on charges and shopping around is advisable.

In general, using your regular debit card can be expensive, owing to the extra charges, and remember to let your bank know if you are going away to avoid being locked out by anti-fraud processes.

If you do use a card on your holiday, shops, restaurants and cash machines will usually ask if you want to pay in pounds rather than the local currency. Always choose the latter. Tourists can lose up to 10% by paying in sterling rather than the domestic currency.

However, if you haven't already booked your trip, then there are destinations where your pound will go further.

The Post Office says it has seen a surge in sales of Turkish lira, which has been hit by political turmoil.

Compared to last summer, the pound is up around 14% against the lira. Iceland is also better value than last year, the pound is up 12% against the Icelandic krona.

The pound's fall: A tale of two cities

The pound is also a little higher against the South African rand.

The weak pound can also be more than compensated for by falls in local prices, the Post Office says.

It tracks the prices of a range of items in European family destinations, including meals and drinks.

It found that prices had fallen in half of the 15 locations, including the Algarve in Portugal.

"Picking a destination where prices on the ground are low can outweigh the impact of a weak exchange rate, but a destination where prices and cheap and sterling is strong is the best bet," said Nick Boden, head of Post Office Travel Money.--BBC

Swatch profits hit after crackdown on grey market

Swatch has reported falling sales and profits following a crackdown on unofficial sales of its watches, and political trouble in one of its most important markets, Hong Kong.

The owner of the Omega and Longines brands said net income fell 11% to 415m Swiss francs (£340m; $420m) in the first half. Sales fell 4.4%.

Swatch has been taking action this year to stop its watches being sold at steep discounts online.

That move hit sales.

The company said it had been taking "uncompromising action" against dealers which have been selling watches to unauthorised retailers - often online watch sellers in Asia.

Smartwatches: Switzerland's friend or foe?

Swatch has stopped supplying some dealers completely and some have been warned about their activities.

The crackdown had cost it more than 100m Swiss francs in sales, but Swatch said it would have long-term benefits.

In particular the company is worried that its brand was being devalued, as unauthorised retailers were selling its watches at deep discounts.

Protest impact

Swatch also said there had been a "double-digit" fall in sales in Hong Kong, which it blamed on "political turbulence".

Hong Kong has seen weeks of anti-government protests, involving tens of thousand protesters.

Hong Kong is the biggest export for Swiss watch makers and Swatch described it as an "important" market with "attractive margins".

Swatch is optimistic that it will see improvement in trading in the second half of the year, as it has product launches planned and sees growing online sales.--BBC

Amazon Marketplace to be investigated by the EU

EU anti-trust regulators have opened an investigation into Amazon after allegations that it misuses "sensitive data" from independent retailers who sell on the online giant's website.

Anti-trust commissioner Margrethe Vestager said she would take "a very close look" at its business practices.

The European Commission said it would examine Amazon's standard contracts with marketplace sellers.

It will also look at how data is used to allocate prominent slots on pages.

The Commission said Amazon continuously collected data about the activity on its platform.

"Amazon appears to use competitively sensitive information - about marketplace sellers, their products and transactions on the marketplace," the Commission added.

Full co-operation

Ms Vestager said she wanted to assess Amazon's compliance with EU competition rules in its dual role as retailer and marketplace.

The in-depth probe has no deadline. Ms Vestager, who has been responsible for a series of EU investigations of US tech giants, is due to complete her mandate on 31 October.

An Amazon spokesperson said: "We will co-operate fully with the European Commission and continue working hard to support businesses of all sizes and help them grow."

Amazon launched Marketplace in the US in 2000 and in the UK in 2002. It allows the online retailer to offer a wider range of products without having to stock them all itself.

For their part, third-party retailers benefit from Amazon's brand, exposure and reach.

According to some estimates, sales by independent retailers on Amazon account for about 30% of Amazon's annual sales.--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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