Major International Business Headlines Brief::: 04 October 2019

Thu Oct 3 23:31:08 CAT 2019

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Major International Business Headlines Brief::: 04 October 2019

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*  S.African govt in talks with coal miners to cut prices for cash-strapped Eskom

*  Nigerian lawmakers increase 2020 budget outline based on higher oil price

*  Nigeria to charge banks $1.3 bln for failing to meet loan deadline - sources

*  Mauritius launches first phase of $525 million light rail system

*  Kenya's first green bond issue raises 4.3 billion shillings

*  New orders fuel Kenya's private sector activity in Sept -PMI

*  Nigeria's central bank pressures lenders with loan requirement increase

*  South Africa debt-to-GDP could reach 95% by 2024, IIF says

*  South Africa's private sector contracts again in September -PMI

*  Poland mortgages: Homeowners win fight over Swiss Franc loans

*  Uber launches job app for gig economy workers

*  UK economy facing 'heightened risk of recession'

*  Ted Baker shares plunge 35% as sales slide

*  'We get our money's worth with package holidays'

*  Norfolk and Suffolk greenhouse plan 'will provide 10% of UK tomatoes'

*  Bennetts: Buyer found for 'world's oldest' department store

*  Asia stocks drop as slowdown fears rattle investors

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S.African govt in talks with coal miners to cut prices for cash-strapped Eskom

JOHANNESBURG (Reuters) - South Africa’s mines and energy minister on Thursday said he was in talks with coal firms that supply struggling state-owned power utility Eskom to reduce coal prices in a bid to lower energy costs and boost the mining sector.

Once the largest contributor to South Africa’s gross domestic product, mining has shrunk steadily over the last decade weighed down by higher energy costs and electricity cuts, hard-to-reach deposits, above inflation wage hikes and policy uncertainty which is deterring investment.

“These are discussions about how we reignite our economy and make it grow,” Mineral Resources and Energy Minister Gwede Mantashe said at an industry conference in Johannesburg without adding further detail.

In March, energy regulator Nersa granted Eskom average tariff increases of 9.4%, 8.1% and 5.2% over the next three years.

The mining industry body, the Minerals Council, has said the tariff increase given to Eskom would jeopardise the viability of some marginal mines and accelerate job losses at energy-intensive operations.

Job cuts are politically sensitive in Africa’s most industrialised economy where a quarter of the labour force is unemployed, while power outages and steep price increases by Eskom are set to hurt an already fragile growth outlook.

Eskom owns and operates more than 13 coal-fired power stations and has supply agreements with firms including Exxaro Resources and South32

The utility supplies more than 90% of the power in Africa’s most industrialised economy, but has been grappling with cashflow and high debt problems, breakdowns at its creaking coal-fired power station fleet.

The minister, who highlighted that power cuts and electricity prices remain a concern, said lowering energy costs would involve discussions with various groups in the sector including coal producers, renewable energy firms and the energy regulator.

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Nigerian lawmakers increase 2020 budget outline based on higher oil price

ABUJA (Reuters) - Nigeria’s legislature on Thursday increased the value of the country’s 2020 budget outline to 10.729 trillion naira ($35 billion) based on expectations of higher oil prices.

The legislature passed a medium-term expenditure framework that increased the anticipated oil price to $57 per barrel from a previous $55 per barrel. That pushed the budget up from 10.002 trillion naira.

The finance minister had previously revised the expected oil price down from $60 per barrel to cushion against supply shocks.

The framework passed on Thursday also pegged oil production at 2.18 million barrels per day (bpd). While Nigeria is currently producing at roughly that level, it had pledged to cut it meet an OPEC cap on crude oil of 1.685 million bpd.

The document is a plan Nigeria uses to prepare its annual budget. The finance minister submits the framework to the legislature, which must then approve it.

President Muhammadu Buhari is expected to present a finalised budget proposal to the legislature on Tuesday.

($1 = 306.0000 naira)

Nigeria to charge banks $1.3 bln for failing to meet loan deadline - sources

LAGOS (Reuters) - Nigeria’s central bank plans to charge 12 banks a total of more than 400 billion naira ($1.3 billion) for failing to meet its minimum loan-to-deposit ratio requirement by a September deadline, three banking sources told Reuters on Thursday.

The central bank has been seeking to boost credit to businesses and consumers after a recent recession in Africa’s biggest economy, but lending has yet to pick up. With growth slow, banks prefer to park cash in risk-free government securities rather than lend to companies and consumers.

Nigeria’s economy is expected to pick up in 2019 with gross domestic product expanding close to 3%, up from 1.9% last year, according to the central bank.

In July, the central bank asked lenders to maintain a ratio of lending out at least 60% of deposits by September as part of measures aimed at getting credit flowing.

Bank chief executives plan to meet with the banking regulator in Abuja on Thursday to discuss the charges, the sources said.

The local units of Citibank and Standard Chartered Bank are among those affected, the sources said.

Other include top tier Nigerian lenders Zenith Bank, Guaranty Trust Bank, First Bank and United Bank for Africa.

The central bank did not respond to a request for immediate comment. The banks declined to comment.

Lenders have done little to expand borrowing in Nigeria, blaming a weak economy after a 2014 oil price crash and a currency crisis that made loans go sour. Analysts fear growing credit quickly could weaken asset quality and capital buffers.

The central bank has said loans rose 5.3% in the three months to the end of September to 16.40 trillion naira, due the new minimum requirement and increased the lending ratio target in what it said was a move to sustain the momentum.

In the last few months, the regulator has also capped interest-bearing deposits at the central bank and barred banks from buying treasury bills for their own accounts at an open market auction, to boost lending.

($1 = 306.40 naira)

Mauritius launches first phase of $525 million light rail system

PORT LOUIS (Reuters) - Mauritius launched the first phase of a $525 million light rail system on Thursday, hoping to cut traffic jams with the Indian Ocean island’s biggest infrastructure project.

Mauritius has long relied on tourism for public revenue and employment, but the authorities are trying to woo investors in other sectors including finance to diversify the economy and make it more resilient.

The railway’s first stage of 13 km inaugurated by Prime Minister Pravind Kumar Jugnauth will connect Rose Hill, a town in the central part of the island, to the capital Port Louis.

When completed, the 26 km (16-mile) route will connect Curepipe, a town in central Mauritius, to the capital Port Louis. It is expected to have 19 stations and four interchanges.

“This is the biggest project ever undertaken in our country,” Jugnauth said at the launch ceremony, which Indian Prime Minister Narendra Modi attended via video conference.

The network is being built by Indian firm Larsen and Toubro and funded by an Indian government grant of $275 million and a $250 million line of credit.

Metro Express Ltd, the Mauritian firm supervising the construction of the line, says it expects it to be profitable by 2022.

It is expected that the light rail system will be used by some 55,000 people daily when it is fully operational.

Kenya's first green bond issue raises 4.3 billion shillings

NAIROBI (Reuters) - Kenya’s first green bond has raised 4.3 billion shillings ($41.45 million) to build environmentally-friendly student accommodation, the issue’s lead arranger said on Thursday.

So-called green bonds are fixed income securities that raise capital for projects in renewable energy, energy efficiency, green transport and waste-water treatment.

The bond was issued by Nairobi-based property developer Acorn Holdings after new rules were unveiled in February to guide the issuance of green bonds.

Stanbic Bank, which arranged the deal, said the bond was priced at an interest rate of 12.25% and rated B1 Global, a notch above the Kenyan government’s rating of B2.

“The subscription book was well diversified with significant interest from Kenyan domestic pension funds, commercial banks, insurance and reinsurance companies and non-resident funds,” the bank said.

The issue was looking to raise a minimum of 2 billion shillings and a maximum of 5 billion shillings, Stanbic said.

It was structured as a “restricted public offer”, targeting sophisticated investors who received a 50% guarantee from credit guarantees provider Guarantco on both their investments and the interest. Over-the-counter trading will be allowed.

The advent of the green bonds will help protect Kenya from the impact of extreme weather on the agriculture sector, which contributes about a third of annual GDP, said Nuru Mugambi, a director at the Kenya Bankers Association.

“With the landmark legislation that zero-rates taxes on green bonds, we expect to see more issuance coming to market,” she said.

In January, HSBC said global green bond issuance is seen at $140-$180 billion this year, from $149.2 billion in 2018.

($1 = 103.7500 Kenyan shillings)

New orders fuel Kenya's private sector activity in Sept -PMI

NAIROBI (Reuters) - Kenya’s private sector activity grew for the fifth straight month in September, boosted by an increase in new orders for businesses, a survey showed on Thursday.

The Markit Stanbic Bank Kenya Purchasing Managers’ Index (PMI) for manufacturing and services rose to 54.1 in September from 52.9 in the previous month. Any reading above 50 indicates growth.

“Private sector activity is showing signs of momentum, although panellists continue to highlight cash flow issues that they face,” said Jibran Qureishi, regional economist for East Africa at Stanbic Bank.

“In addition to the current stock of arrears owed to the private sector, the interest-rate-capping law could also hold back firms from flourishing on a multi-month basis.”

Last week, lawmakers rejected a finance ministry request to scrap commercial lending rate caps that critics say have led to a credit growth squeeze.

The rate of new business orders was the strongest in 13 months in September, the survey found, although output among firms grew modestly due to the cash flow concerns.

Nigeria's central bank pressures lenders with loan requirement increase

LAGOS (Reuters) - Nigeria’s central bank has increased its target for lending by commercial banks for the second time in three months, to help boost growth. Banks that miss the target will face higher cash-reserve requirements.

The bank, in a circular dated Sept. 30, ordered lenders to increase their minimum loan-to-deposit ratio to 65% from 60%, which it set in July. It said those who fall short of the new target by December would have to maintain higher cash reserves.

The new lending target takes effect immediately and will be reviewed quarterly, the central bank said.

Economic growth in Nigeria slowed to an annual rate of 1.94% in the three months to the end of June, the second quarter in a row of declines, as the country struggles to shake off the effects of a recession it escaped two years ago.

The bank has been trying to boost credit to businesses and consumers after that recession, but lending has yet to pick up. With growth slow, banks prefer to park cash in risk-free government securities rather than lend to companies and consumers.

The central bank said loans grew by 5.3% to 16.40 trillion as at the end of September, the deadline it earlier set for lenders to boost their minimum loan-to-deposit ratios to 60%.

MARGIN PRESSURE

The latest measure is designed to sustain the momentum, the central bank said, as it steps up efforts aimed at getting banks to play a bigger role in helping revive the economy.

However, analysts worry that growing credit quickly in a weak economy could impact asset quality and weaken banks capital positions as the impact of the new policy would be closely watch as third quarter earnings begin to trickle in this month.

On Wednesday, banking stocks fell 4.44%, to its lowest level in three weeks, led by pan-African lender Ecobank while overnight lending rates shot up to 20% from between 7% and 12% its previous close on Monday.

Traders expected short-dated treasury yield to rise as central bank’s action against banks that fail to meet the loan requirement could drain liquidity.

The central bank in July shifted policy from tight liquidity to prop up the naira to trying to get banks support the economy by growing loans. The bank wants to channel loans to small firms, mortgage and consumer lending.

Rencap analysts said banks are expecting a debit of around 420 billion naira from the central bank as sanction to lenders that failed to meet the regulator’s loan target last month.

“The (cash reserve) debits are ... even more negative than we previously thought,” Rencap said in a note.

“On the flip side, banks that choose prudence suffer margin and earnings pressure from higher CRR as all that cash will now earn 0% vs 13-15% yield on risk-free assets.”

South Africa debt-to-GDP could reach 95% by 2024, IIF says

JOHANNESBURG (Reuters) - South Africa’s public debt could rise as high as 95% of gross domestic product by 2024 if the government doesn’t restructure the state-run utility Eskom and implement a workable growth plan, the Institute of International Finance said in report.

The report, released late on Wednesday, echoes a warning on Tuesday by the central bank about government debt, which has doubled from less than 30% of GDP before the 2008 global financial crisis to nearly 60%.

The 95% estimate is the worst of four outlooks the IIF report laid out. But even its baseline case shows debt rising to 70 percent of GDP, according to the IIF, a trade group of financial institutions that tracks market conditions worldwide.

“South Africa’s debt sustainability is increasingly in question,” the IIF said in its report.

The South African economy expanded 0.8% in 2018, and in February the National Treasury said it expected 1.5% growth in 2019. But it has since warned it might have to lower that forecast, especially after it granted Eskom a 59 billion-rand, two-year bailout package.

The IIF said a proposed plan to shift Eskom’s debt to the government would add 6 percentage points to South Africa’s sovereign debt.

“The key for an improvement of the situation is the implementation of the national growth plan and Eskom restructuring blueprint,” it said. “Investors and rating agencies will follow the October and February budget announcements closely.”

Finance Minister Tito Mboweni is set to deliver his medium- term budget on Oct. 30. He is expected to give details of President Cyril Ramaphosa’s plan to split Eskom into three units, generation, transmission and distribution.

Labour unions that backed Ramaphosa’s presidential campaign, as well as factions inside the ruling African National Congress, oppose the plan, raising fears that it may not materialise.

Moody’s, the last of the top three ratings firms to still rank Pretoria’s debt at investment grade, said in September it was unlikely to cut the rating to junk anytime soon, but that the delay over reforming Eskom was a major risk.

Investors, however, seem to expect a downgrade soon.

An S&P Capital IQ model, based on credit default swap prices, shows that markets have begun to price in a downgrade. Since September, the cost of five-year swaps rose 20 basis points to 200 bps on Wednesday, a two-month high, according to data from IHS Markit.

South Africa's private sector contracts again in September -PMI

JOHANNESBURG (Reuters) - South African private sector activity remained in contraction for a fifth consecutive month in September as new orders and output fell while sentiment was subdued, a survey showed on Thursday.

IHS Markit’s Purchasing Managers’ Index (PMI) fell to 49.2 in September from 49.7 in August, remaining below the 50 point mark that separates expansion from contraction.

Firms saw an extension of the decline in new orders during September, recording a 15th successive monthly fall in total demand.

“With some businesses hampered by unrest over the course of September, the headline PMI signalled a further deterioration in the health of the private sector economy,” said David Owen, an economist at IHS Markit.

Consecutive days of riots and looting in September in parts of Johannesburg and Pretoria, targeting mainly foreign nationals and their businesses, led to 15 deaths and over 400 arrests.

The violence added to overall uncertainty and unease over economic growth, which is set to expand by less than 1% in 2019, raising the risk of further credit rating downgrades and more difficult conditions for businesses and consumers.

“The latest survey results meant that the average PMI reading for the third quarter posted at 49.1, the lowest for the year so far, and suggested that third quarter GDP growth will be modest at best,” Owen said.

The treasury is due to present its medium term budget in parliament on Oct. 30, with Finance Minister Tito Mboweni’s speech keenly watched for details about the restructuring of state power firm Eskom and a plan to stimulate growth.

- Detailed PMI data are only available under licence from IHS Markit and customers need to apply for a licence.

Poland mortgages: Homeowners win fight over Swiss Franc loans

Around half a million indebted Polish homeowners have won their fight to be freed from crippling Swiss franc mortgages.

The Swiss currency has doubled in value since 2008, sending mortgage-holders' debts soaring.

Now, the European Court of Justice (ECJ) has ruled that they can ask Poland's courts to let them convert their loans into the Polish zloty.

More than one in five Polish mortgages is held in Swiss francs.

Finance Minister Jerzy Kwiecinski said it was good news for consumers but the ruling was an unexpected blow for Poland's banking sector. Officials said the banks were well prepared but the banks are preparing for losses running into tens of billions of zloty.

Justyna Dziubak, who brought the case, celebrated her victory: "I've been fighting the banks for three years. It was worth it."

What went wrong?

Around 700,000 Polish households took out mortgages in foreign currencies in the years after Poland joined the EU in 2004. They have become known in Poland as "Frankowitzes".

They were not alone - Hungarians, Croats and Austrians did the same, attracted by low interest rates.

Mortgages that left Europeans counting the cost

The Polish currency was strong at the time, but began to fall as the financial crisis kicked in and the Swiss franc surged. The biggest hit came in 2015, when the Swiss franc abandoned its currency ceiling against the euro.

Many Poles took their mortgages out when the franc was worth less than two zloty. By 2015 the franc had soared to five zloty and it has since fallen back to four. That means that many Poles are, even now, lumbered with twice their original debt.

Swiss franc soars as euro cap ends

Why the Swiss franc can't escape being a safe haven

At its peak, half of Polish mortgages were in Swiss francs, and that share is now 23%, according to the financial services firm Erste Group.

Why has the European Court intervened?

Kamil and Justyna Dziubak challenged the terms of their loan in a court in Warsaw, arguing that the terms in which the loan was linked to the Swiss franc were invalid because the bank was able to fix the exchange rate by itself.

The couple's was among 16,700 claims lodged by Poles seeking to have their loans converted into zlotys.

The Dziubaks' case then went to the ECJ in Luxembourg, which ruled on Thursday that EU law does not "preclude the annulment of those contracts". It allowed them to ask Polish courts to convert their loans, paving the way for perhaps thousands more claims, the BBC's Warsaw correspondent Adam Easton reports.

Mrs Dziubak told reporters after the ruling that consumers should not be scared of challenging the banks.

"I am very glad, of course. I hope that my story will be an example for others. Do not be scared, fight for your own," she said, adding that her children had given her the strength to fight back.

Other Frankowitzes were in the audience as campaigners announced the court ruling.

"I'll tell you, as a Swiss franc borrower, this ruling is a firecracker," said one man.

"I hope, thanks to this judgement, my case will now only be a formality" said another borrower, Magdalena Owoc.

What will it mean for the banks?

Although analysts suggested that the ruling was not clear-cut, it could have a big impact on the entire banking sector in Poland and the wider Polish economy.

If all of those Swiss franc mortgages were converted into Polish zlotys it could cost the banks between 20bn and 60bn zlotys (£12bn; €14bn; $15bn). That is the equivalent of between 1.5 and 5 times the banking sector's net profit last year, our correspondent writes.

Shares in Poland's biggest bank, PKB Bank Polski, were down 2% on Thursday, but Poland's financial watchdog KNF said the banks had a strong capital base and could absorb potential losses.

Homeowners will still have to take their cases through Polish courts and any conversion costs to zlotys could be spread over years.--BBC

Uber launches job app for gig economy workers

Uber is testing new ground with an app to put casual workers in touch with employers, as it faces an increasingly tough climate for its core ride-hailing business.

Uber Works will allow cleaners, bar staff and warehouse workers to compare pay rates and sign up for shifts.

The app, which launches on Friday, will initially only be available in Chicago.

It will compete with a range of rival apps in the US market including Wonolo, Workpop and Shiftgig.

The move comes as several parts of the world tighten regulation around Uber's operations as a ride-hailing firm. California recently passed legislation designed to pave the way for so-called “gig workers” to become employees and gain additional rights, which is expected to increase costs for firms such as Uber.

'Vetted and qualified' workers

Millions of American workers use staffing agencies, Uber said in a blog post announcing the venture. But it believes the process can be made more transparent and faster for both employees and firms.

The app will provide information on pay, location and working conditions. Workers can also use it to track working hours and breaks, the firm said.

Employers would be able to tap into a ready pool of "vetted and qualified" temporary labour, Uber said.

Uber says 'gig economy' law will not hurt business

On the Record: Stacy Brown-Philpot, TaskRabbit

Uber's London licence renewed for two months

Uber will focus on making the app successful in Chicago, where it has already operated in a test phase for the past year, before introducing it elsewhere, it added.

The growth of casual hiring, dubbed the "gig economy", has been controversial. Some staff hired on an ad hoc basis say they appreciate the flexibility it offers, while others suffer income insecurity and a lack of other welfare benefits of employee status.

Drivers working for Uber's original ride-hailing business have taken the company to court to establish the firm's duty to provide staff benefits such as holiday pay and sickness cover.

Uber Works has agreed partnerships with staffing agencies in Chicago that employ, pay and handle worker benefits, potentially side-stepping this issue with the new platform.--BBC

UK economy facing 'heightened risk of recession'

The UK's economy may have tipped into recession following a downturn in the dominant service sector, according to closely-watched figures.

The IHS Markit/CPS purchasing managers' index for services fell to a six-month low of 49.5 in September. The 50 level divides growth from expansion.

It suggests the economy shrank 0.1% in the three months to September, after a 0.2% fall in the previous quarter.

Some experts urged caution, as official data last month eased recession fears.

Combined with even weaker manufacturing and construction purchasing managers' indexes (PMI) earlier this week, September's all-sector PMI sank to 48.8 from 49.7. This was its lowest since the month after the referendum decision to leave the EU in June 2016, and before that 2009.

"Coming on the heels of a decline in the second quarter, [this] would mean the UK is facing a heightened risk of recession," said IHS Markit economist Chris Williamson. A recession is normally defined as when an economy contracts over two consecutive quarters.

How big is the UK's economy?

"September's decline is all the more ominous, being the result of an insidious weakening of demand over the past year rather than a sudden shock," Mr Williamson added. He highlighted Brexit uncertainty, worries about trade tensions between the US, China and Europe, and weaker growth in the eurozone.

Separate PMI figures on Thursday showed Germany's services sector sharply lost momentum in September, fuelling fears that contraction in the country's manufacturing sector was spilling over into the rest of Europe's largest economy. Germany's services PMI fell to 51.4 from 54.8 in August, the lowest reading for three years.

Although the PMI data is closely followed it is not considered foolproof. Immediately after the Brexit referendum, the data indicated a sharper downturn than was actually the case.

Last month, latest figures from the Office for National Statistics (ONS) pointed to the UK economy growing faster than expected in July, easing fears that it could fall into recession.

Growth was flat over the three months to July, but this was an improvement on the 0.2% contraction seen in the April-to-June quarter. ONS growth data for August is due for publication on 10 October.

This survey has sounded the recession alarm bells - pointing to a second quarter of shrinking GDP. Not only does it imply one of the biggest slumps in activity in the dominant service sector since the financial crisis but, taken with its counterparts for manufacturing and construction, signals output falling across the economy.

Should we be worried? These surveys are the first monthly insight into the health of major parts of our economy. But in these tumultuous times, they may be more of a mood check rather than a whole-body MOT.

The authors refer to Brexit-related anxiety: sentiment, rather than activity, may be clouding or obscuring the picture. It wouldn't be the first time. Earlier this year (because of course we've been here before) these surveys failed to fully reflect the flurry in Brexit preparations. Nor do they cover retail or the public sector - two areas that have underpinned the growth we have seen. The surveys can and do deviate from official growth numbers.

But it'd be dangerous to ignore the warnings. Sentiment can dictate all sorts of business plans - from investment to hiring. The impact of those can last longer than one quarter's GDP.

'Too downbeat'

Economists said Thursday's PMI figures were a warning. Ruth Gregory, senior UK economist at Capital Economics, said they reignited concerns the economy is in recession as it "suggests that growth in the biggest part of the economy has fizzled out".

However, while Dean Turner, UK economist for UBS Global Wealth Management, said the figures were "gloomy", he added that the PMIs "have had a tendency to overreact relative to reality. It is too early to conclude that the UK is heading for a recession on these numbers alone."

And Samuel Tombs, chief UK economist at Pantheon Macroeconomics, went further. "The survey's poor track record recently means its recession signal should not be believed," he said. "Markit's services survey has been far too downbeat over the last year."--BBC

Ted Baker shares plunge 35% as sales slide

Shares in fashion retailer Ted Baker have plunged 35% after it posted a loss and said trading remained tough.

The firm, which issued a profits alert in June and whose founder Ray Kelvin resigned in March, blamed fierce competition and unseasonable weather.

Its comments came as it reported a £23m loss for the six months to 10 August, down from a £24.5m profit last year.

Chairman David Bernstein said if things did not improve, second-half profits would also be below last year's.

"Trading conditions have been characterised by unprecedented and sustained levels of promotional activity across the sector with, in several cases, distressed discounting from brands and retailers and heightened competition," Mr Bernstein said.

Sales in the first half were down across every region the company operates in, including a 3.9% fall in the UK and Europe to £141.3m. North America was down 3.1% and the rest of the world down 15.2%. Online sales also fell by 1.3% to £52.3m, although the company's wholesale business was up 4% to £89.3m.

In June, Ted Baker's shares lost more than a quarter of their value after the firm warned investors to expect a fall in first-half profits. It blamed "unseasonable weather" across North America and heavy discounting.

These conditions are continuing Mr Bernstein said. "Trading in the second half has started slowly, not helped by the unseasonably warm weather in September, and this will have an impact on the full year outcome. If these trends continue, we will achieve a second half result below that of last year."

Emily Salter, retail analyst at Global Data, said it was worrying that online sales had also fallen, which meant that Ted Baker could not solely blame problems on the High Street.

The online arm had previously performed well, she said, adding: "This points to more significant problems with demand for the brand and the impacts of regular discounting."

The trading problems are the latest setback for the firm after Mr Kelvin left in March following harassment allegations.

Mr Kelvin, who had been chief executive since the company's launch in 1988, resigned over claims he presided over a culture of "forced hugging". He has denied all allegations of misconduct.--BBC

'We get our money's worth with package holidays'

Ryanair's chief executive Michael O'Leary recently declared package holidays "over" after the collapse of Thomas Cook. But travel experts say they are growing in popularity, particularly among younger travellers.

Kate and Colin Rawson, aged 30 and 40 respectively, recently opted for an all-inclusive cruise around the Mediterranean for their honeymoon. The couple from Warrington have done a number of all-inclusive holidays around Europe but this was their first cruise.

"Colin and I love eating and drinking whilst on holiday, so if we didn't do all-inclusive it would cost us a fortune. We always get our money's worth," said Mrs Rawson.

She says they're yet to be disappointed: "We do a lot of research - we like to look at reviews and whether everything is included."

'Lots of cash, little time'

The Rawsons are not alone. According to a recent report on the UK travel-industry, the popularity of all-inclusive holidays which typically include accommodation and meals as well as flights, is growing.

The research by management consultancy Deloitte found those aged from 16 to 44 were particularly keen on package deals.

Richard Slater, who runs a travel agency in Macclesfield, Cheshire, says the number of young people booking breaks with them has increased.

"There are still the gap year guys that go off and do their own thing, but with people going into jobs and apprenticeships, they've got a lot of cash to spend but not as much time.

"You'd think they'd go off and book it online but they actually just want to be able to say 'it's all booked, it's all fixed together'."

It's not just young people booking package breaks. Around half of UK holidaymakers take at least one overseas package holiday each year, according to travel trade organisation Abta.

Meanwhile, UK government statistics reveal a growth in the number of people taking package holidays from 15.9m in 2014 to 18.2m last year.

The most popular overseas destination for package holiday makers is Spain.

Abta says package holidays have changed significantly from the 1970s. It says there is a greater emphasis on personalisation, where holidaymakers can mix and match what they want to include instead of purchasing a pre-defined package.

'Dynamic packaging'

Figures from Market research firm Euromonitor support this. It says so called "dynamic packaging" has increased 40% over the past five years. This is where consumers canbuild their own package of flights, accommodation, and car rental instead of purchasing a pre-defined package.

It's this type of holiday purchase that appeals to Ada, a 51 year-old from Edinburgh, who typically books hotel and flight combinations with Expedia and lastminute.com.

"I usually check the website of the airline first and then I have a look at the hotel's website and see if I can get a better deal and usually I've found it saves me at least £100 or more for a holiday of about a week," she told the BBC.

Travelling with her husband, they've taken these kinds of trips to France, Belgium and Ireland - and have a forthcoming one to Sweden.

"They do have quite a range of hotels at a range of budgets - we always do mid-budget hotels and we never fly business class."

She says while it can be better financially, such deals can have drawbacks: "If there's a huge problem with the flights, these companies can't help you. They try to help with the hotels but if it's the airline's fault, you're on your own."

Despite this, she says this kind of package holiday beats the traditional alternative.

"I did a full package once many years ago and it just encourages you to eat even when you don't want it. It's like, 'I've paid a lot so I may as well'."

For Kate though, having everything included makes things easier: "Even when it's all-inclusive, we still go out for meals outside.

"We literally gave the travel agent a few details of what we were after and within a few hours he came back and had the whole thing sorted for us. All we had to do was pay."-BBC

Norfolk and Suffolk greenhouse plan 'will provide 10% of UK tomatoes'

Two giant greenhouses costing £120m are to be built next to sewage works to grow millions of tomatoes and bring 360 agricultural jobs.

Work on the greenhouses - the UK's largest - has already begun at Trowse, near Norwich, and Ingham, Suffolk.

Heat to create an ideal growing temperature will be pumped into the greenhouses from the sewage works.

New Anglia Local Enterprise Partnership (LEP) said they would provide an economic "shot in the arm".

Britain consumes 500,000 tonnes of tomatoes a year but only 20% are home-grown.

Investment firm Greencoat Capital said the two greenhouses, covering 29 hectares (72 acres) in total, would be capable of producing 1 in 10 of the UK's home-grown tomatoes.

Chris Starkie, chief executive of New Anglia LEP, said most tomatoes were currently imported from the Netherlands.

"This is a huge opportunity for us to become more self-sufficient in tomatoes," he said.

"Norfolk and Suffolk are already leading agricultural production areas... and this is a real shot in the arm for the local economy and testament to the skills we have here."

Using heat from from nearby Anglian Water treatment plants would cut carbon emissions associated with growing the crop by 75%, the investment firm said.

Scheduled for completion in autumn 2020, the projects would create 360 permanent jobs and 120 seasonal roles, the firm added.--BBC

Bennetts: Buyer found for 'world's oldest' department store

A shop billed as the "world's oldest department store" is to be bought out of administration by a local businessman.

Bennetts has been in Derby since 1734 but went into administration in February.

Administrators said a sale had been agreed with Paul Hurst, who already owns one of the city's oldest pubs.

However, Mr Hurst said it may not be possible to keep the store in its current location in Iron Gate.

The deal, which comes weeks after a previously-agreed sale to London Sole Limited fell through, is due to be completed by the end of this month.

Mr Hurst is already the owner of The Old Bell Hotel, which dates back to 1650 and is located on a neighbouring street.

He said he would be creating a new retail website for Bennetts but warned there would not be a physical store in the short-term.

Latest news and stories from the East Midlands

"We have worked tirelessly to look at all the options, including reconfiguring the building in Iron Gate, to keep Bennetts open in its original home," he said.

"However, there is at least £300,000 of work that needs to be done immediately and I am sure more major repairs are likely to be uncovered during work on such an old building.

"We will continue to look at the options for a physical store - remaining in the Cathedral Quarter - although this will not be a short-term solution and could take some time to resolve."--BBC

Asia stocks drop as slowdown fears rattle investors

Asia markets joined a global sell-off as fresh worries about trade and the world economy rattled investors.

Japan's Nikkei 225 index closed down 2% and Australia's ASX 200 lost 2.2%.

It followed sharp falls in US and European markets on Wednesday, with the UK's FTSE 100 index sinking 3.2%.

The falls came after the release of weak US economic data and a World Trade Organization (WTO) ruling paving the way for $7.5bn (£6.1bn) in US tariffs on EU goods.

Analysts said these factors had sparked fears over the strength of the global economy.

"There seems to be some cracks forming in some parts of the US economy and also in investor confidence," CMC Market analyst Margaret Yan said.

She said a combination of factors - including soft US jobs and manufacturing reports - added to existing investor worries "in light of deepened fears of a global recession and mounting trade risks".

Those risks include a fresh front in global trade hostilities, between the US and Europe.

America has been given the green light by the WTO to hit a range of EU goods - from aircraft to cheese and olives - with new tariffs.

The move marks the latest chapter in a long-running battle between the US and the EU over illegal subsidies for planemakers Airbus and rival Boeing.

The tariffs are separate to US President Donald Trump's ongoing trade disputes with countries around the world.

A quick guide to the US-China trade war

Slowdown fears

The stock market falls in Asia follow a weak performance on US and European indexes on Wednesday.

The blue-chip UK FTSE 100 suffered its worst day since January 2016. In Europe, Germany's main index, the Dax, closed 2.8% lower, while France's Cac 40 lost more than 3%.

In the US, the Dow Jones Industrial Average ended trading down 1.9%, marking the second day in a row it has dropped more than 1%.

The S&P 500 fell 1.8% while the tech-heavy Nasdaq gave up 1.6%.

The losses came after one of the most closely-watched US manufacturing figures, the Institute for Supply Management's (ISM) index of factory activity, dropped to its lowest level since June 2009.

Are markets signalling that a recession is due?

Fresh figures on Wednesday showing a slowdown in jobs growth in the private sector in September accelerated concerns over the US economy.

"With sentiment so fragile, the one-two punch from the WTO and [US jobs data] was enough to cremate European stock markets," said Jeffrey Halley, OANDA senior market analyst.--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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DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of Faith Capital (Pvt) Ltd for general information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy or subscribe for any securities. The information contained in this report has been compiled from sources believed to be reliable, but no representation or warranty is made or guarantee given as to its accuracy or completeness. All opinions expressed and recommendations made are subject to change without notice. Securities or financial instruments mentioned herein may not be suitable for all investors. Securities of emerging and mid-size growth companies typically involve a higher degree of risk and more volatility than the securities of more established companies. Neither Faith Capital nor any other member of Bulls ‘n Bears nor any other person, accepts any liability whatsoever for any loss howsoever arising from any use of this report or its contents or otherwise arising in connection therewith. Recipients of this report shall be solely responsible for making their own independent investigation into the business, financial condition and future prospects of any companies referred to in this report. Other  Indices quoted herein are for guideline purposes only and sourced from third parties.

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