Major International Business Headlines Brief::: 14 February 2023

Tue Feb 14 09:58:15 CAT 2023

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Major International Business Headlines Brief::: 14 February 2023 

 <https://wwww.nedbank.co.zw/> 

ü  Can the next Bank of Japan boss fix the country’s economy?

ü  Brexit hit UK investment by £29bn, says Bank of England policymaker

ü  Lilt drink brand to be scrapped after 50 years and rebranded

ü  Amazon: Unionised Coventry workers announce strike escalation

ü  Heathrow sees busiest January since start of Covid

ü  Courier firm DX Group accused by rival of espionage

ü  Amazon: Unionised Coventry workers announce strike escalation

ü  Heathrow sees busiest January since start of Covid

ü  Mars Wrigley factory fined after two workers fall into chocolate vat

ü  Ulster Bank survey: NI private sector shrinks but businesses optimistic

ü  Nigeria: As Naira Black Market Booms - CBN's Silence Throws Nigerians
Into Confusion

ü  African Businesswomen Press for AU Border Harassment Dialogue

ü  Namibia: Blue Economy Policy Ready for Cabinet Approval

ü  Uganda Airlines to Fly to Lagos, Abuja

 <mailto:info at bulls.co.zw> 

Can the next Bank of Japan boss fix the country’s economy?

As Japan's prime minister names his pick for the new head of the country's
central bank, it is clear that the job comes with some major challenges.

The latest figures published by the government show the economy is
recovering from the pandemic at a far slower pace than expected.

At the same time prices are rising at the fastest rate in more than 40
years.

So what can the academic Kazuo Ueda do to fix the world's third largest
economy?

If approved by the country's parliament as the next governor of the Bank of
Japan (BOJ), Mr Ueda has to deal with both slow economic growth and the
highest inflation since 1981.

On Tuesday, official figures for the last three months of 2022 showed
Japan's economy expanded by 0.6%, much lower than forecasts of 2% growth.

Meanwhile, data for December showed core consumer prices rose by 4% from a
year earlier, twice the rate targeted by the central bank.

Experts warn that the next governor of the BOJ will struggle to raise
interest rates to curb inflation without harming fragile economic growth.

The main reason for this is that prices in the country have been pushed up
by external factors, like the war in Ukraine, rather than by the strength of
the economy.

"If you try to tighten policy to address bad inflation that Japan is seeing
right now, that runs the risk of setting you back in your own efforts to
generate good inflation," Stefan Angrick of Moody's Analytics told the BBC.

When reports surfaced last week that Japan's Prime Minister Fumio Kishida
would nominate Mr Ueda to replace Haruhiko Kuroda, who has been in the role
for a decade, it took investors by surprise.

Although an academic by training, Mr Ueda is not a complete stranger to the
central bank. He was a BOJ policy board member between 1998 and 2005.

He was at the central bank in 1999 when it introduced the unconventional
policy of cutting the cost of borrowing to zero in an attempt to boost the
country's economy.

However, Mr Ueda was not at the BOJ when it implemented its controversial
policy of putting a cap on the interest rates paid on government bonds.

While the policy known as yield curve control (YCC) has little direct impact
on ordinary consumers, investors have been pressuring the central bank to
ditch it as they were seeing returns on their investments shrinking.

Last week, financial markets welcomed reports of Mr Ueda's nomination, as he
was seen as more likely than other potential candidates to scrap the policy.

While the challenges faced by the next governor of the BOJ may be daunting,
Mr Ueda is seen by some as a pragmatist who will be able to adapt to the
changing economic landscape.

"He is not a man of dogma, but one of science; a deep and creative thinker
who is not afraid to test his hypothesis in the real world," economist
Jesper Koll said in a report.

"He is thoughtful, he does not shoot from the hip, and will be seeking to
design an optimal sustainable policy framework rather than looking for big,
quick wins."-bbc

Brexit hit UK investment by £29bn, says Bank of England policymaker

Brexit has dealt the UK economy a "productivity penalty" of £29bn, or £1,000
per household, a Bank of England policymaker has said.

Jonathan Haskel, an external member of the Bank's monetary policy committee,
said a wave of investment "stopped in its tracks" in 2016 following the
vote.

He said the UK had "suffered much more" of a productivity slowdown than
other large economies because of Brexit.

The Treasury said it did not recognise Mr Haskel's figures.

The Bank of England declined to comment.

Mr Haskel, who was interviewed by website newsletter The Overshoot, was
asked why he thought the UK was an "extreme outlier" when it came to facing
a slowdown in productivity.

He said: "Yes, we suffered much more. A bit of that is that we have this
larger financial sector. But I think it really goes back to Brexit.

"If you look in the period up to 2016, it's true that we had a bigger
slowdown in productivity up to 2016, but we had a lot of investment. We had
a big boom between 2012-ish to 2016.

"But then investment just plateaued from 2016, and we dropped to the bottom
of G7 countries."

Since the Brexit referendum in 2016, there has been a global pandemic,
swiftly followed by an energy crisis, which has made estimating any
financial impact directly related to Brexit difficult.

'Productivity penalty'

But investment has stalled since the referendum.

Some economists, including the International Monetary Fund, have suggested
that uncertainty surrounding Brexit, including the unsettled issue of the
Northern Ireland Protocol, has deterred at least some spending.

Mr Haskel said that the Brexit referendum had an impact on economic growth
as a result of the reduction in trade, with the UK opting to leave the EU
and its single market and secure trade deals elsewhere.

He referred to a calculation to show what the UK economy could have looked
like if investment had carried on growing at the rate it had been before the
referendum, compared to what it is currently growing at.

Mr Haskel described the hit to the economy as the "productivity penalty",
which amounted to about 1.3% of gross domestic product (GDP). GDP is an
important tool for looking at how well, or badly, an economy is doing.

"That 1.3% of GDP is about £29bn, or roughly £1,000 per household," he
added.

Sir Richard Branson is among the business bosses who have suggested the cost
of Brexit red tape would put them off investing in the UK.

The pro-Brexit group Briefings for Business claims there is no evidence of a
Brexit-related hit to investment.

A Treasury spokeswoman added that since leaving the EU single market, the UK
had grown faster than France and Germany.

"The government is making the most of our Brexit freedoms to grow the
economy, including ambitious financial services sector reforms which will
unlock over £100bn of investment, and we are reviewing EU-derived rules in
other critical growth sectors this year," she said.

Recession warning

Figures released last week showed that the UK narrowly avoided falling into
recession in 2022, but the Bank expects it to enter one this year.

A recession is typically defined as when the economy shrinks for two
consecutive three-month periods. It means the economy is generally
performing badly and companies may make less money and cut jobs, leaving the
government with less tax revenue.

The Bank of England is the UK's central bank and has a major influence on
managing the country's economy. It is responsible for setting interest
rates, which are at a 14-year high in an attempt to reduce inflation - the
rate at which prices rise.

Mr Haskel, who has consistently voted in favour of hiking interest rates,
also told The Overshoot that inactivity in the labour market was a
distinctly "British thing".

"Inactivity behaviour here looks very different to other countries: we've
had a rise while other countries have had a fall," he said.

Nearly nine million people in the UK are currently "economically inactive",
which is where people are not actively looking for work.

The government has been considering plans to coax retired middle-aged
workers back into jobs in an attempt to boost the economy.-bbc

Lilt drink brand to be scrapped after 50 years and rebranded

The soft drink brand Lilt - famously advertised for its "totally tropical
taste" - is being scrapped after 50 years and rebranded.

>From Tuesday it will be known as Fanta Pineapple & Grapefruit, according to
its owner the Coca Cola Company.

The firm stressed the drink's taste and ingredients would not change.

But fans - many of whom appeared to associate Lilt with memories of their
youth - took to social media to express their dismay.

"Fanta 'Grapefruit & Pineapple' ... I'm still going to call it Lilt. Just
like I still call the chewy sweets in paper Opal Fruits!" tweeted one.

"Farewell to Lilt," tweeted another. "For some completely pointless reason
they are rebranding it ... Apparently nothing is allowed to be different
these days."

Launched in 1975, Lilt became a household name in the UK partly because of
its advertising.

One television ad in the late 1980s featured the "Lilt Man", a parody of a
milkman, delivering Lilt in a "Lilt float" on a Caribbean beach.

And in the 1990s, the drink was promoted with advertisements featuring two
Jamaican women, Blanche Williams and Hazel Palmer, who became known in the
media as the "Lilt Ladies".

Some Lilt fans guessed something was afoot when cans were redesigned last
year using the Fanta font.

Coca Cola, which owns a host of different soft drink brands around the
world, said Lilt would no longer be sold under its current branding from 14
February, while Fanta Pineapple & Grapefruit bottles and cans were gradually
rolled out across the UK.

"Our main priority with this announcement is to reassure Lilt's loyal fan
base that absolutely nothing has changed when it comes to the iconic taste
of the drink they know and love," Fanta brand manager Charlotte Walsham
said. "It's just got itself a new name."

Lilt was only ever sold in a handful of countries other than the UK
including Ireland, Gibraltar and the Seychelles.-bbc

Amazon: Unionised Coventry workers announce strike escalation

Unionised workers at an Amazon distribution centre have announced more
strikes in a row over pay.

About 350 staff at the Coventry warehouse became the first in the UK to take
industrial action against the online retail giant last month.

The GMB union is calling for a pay rise from £10.50 to £15 an hour, although
the union is not recognised by Amazon.

Amazon previously said it offered competitive pay which had risen by 29%
since 2018 as well as other benefits.

Because the tech giant does not recognise the union, it does not enter pay
negotiations with its representatives.

GMB announced further strike dates to the employer at 13:00 GMT. The
industrial action is due to take place on 28 February, 2 March and for one
week between 13 and 17 March.

The union branded Amazon's 5% pay rise offer, worth about 50p an hour,
"derisory" and workers also spoke to the BBC about "severe" conditions
including constant monitoring and having toilet breaks timed.

Amazon said its "performance management tool" was paused when employees were
not logged in at their station.

About 1,500 people are employed at the Coventry site, where Amazon stock is
scanned and sent out to fulfilment centres to then be shipped to consumers.

When employees based there walked out on 25 January, they became the first
Amazon workers to strike in the UK.

The GMB union is also holding discussions about whether to ballot about 200
of its members working at Amazon's centre in Tilbury, Essex, for strike
action.

Amazon's global sales and profits soared as Covid restrictions forced people
to shop online. Between 2019 and 2020, profits nearly doubled to $21.3bn
(£17.2bn) and rose again the following year to $33.3bn.-bbc

Heathrow sees busiest January since start of Covid

Heathrow Airport has recorded its busiest January since the start of the
pandemic, with 5.4 million passengers travelling through it last month.

The latest figures are still below the six million people that passed
through in January 2020, but Heathrow boss John Holland-Kaye said it showed
the airport was "back to its best".

But it comes as more than 3,000 workers are to be balloted over strike
action.

The Unite union has warned any walkouts could lead to disruption at Easter.

Half-term getaway

Some 17,458 flights are scheduled to depart UK airports during half-term,
according to data firm Cirium which tacks flights, but overall, departures
remain 19% down compared to the same period in 2019.

Cirium said departures were up 43% on last year's February break. It added
this showed the "continued recovery" of the air travel industry, which was
grounded during the height of the pandemic.

The Association of British Travel Agents said many tour operators were
"expecting a busy half-term as demand for travel continues to return to
pre-pandemic levels".

Mr Holland-Kaye added Heathrow's services for school half-term holidays had
been "going very well".

Heathrow said its overall passenger satisfaction was now "at or above
pre-pandemic levels", with 98% of passengers waiting less than 10 minutes
for security last month, which is typically a quieter time of year for UK
passengers.

Heathrow said Border Force was trialling using e-gates for children aged 10
and 11 in Terminal 5 over the half-term holiday, as it was also doing at
Gatwick and Stansted.

Currently, travellers aged 12 and above with biometric passports can use
e-gates to bypass manual inspections when they cross border control.

Last year, thousands of air passengers suffered delays and cancellations
across the UK after airports and airlines struggled to recruit enough staff
to cope with the surge in demand for international travel following the
removal of Covid restrictions.

Airports and airlines cut thousands of jobs at the height of the pandemic,
and many workers did not return to the industry due to finding other jobs.

Strike threat

On Sunday, Unite said security guards, engineers and firefighters at
Heathrow would begin voting on Friday on whether to strike over pay, after
its members rejected a 10% wage increase.

The union said that if workers did strike it would "inevitably cause severe
disruption" at Easter.

Thousands of workers across several industries have called for pay rises to
keep up with the rising cost of living in recent months. Inflation in the
UK, the rate at which prices are rising, is currently at 10.5%.

Strike action: What do teachers, firefighters and others want?

A Heathrow spokesperson said the airport was "extremely disappointed" by
Unite's move and warned if the strike action commenced, the "pay offer will
be withdrawn". It said its 10% salary increase offer came at a time the
business was making losses.

In December, Border Force staff went on strike for several days, although
Heathrow said that disruption had been "successfully managed". Border Force
drafted in military personnel and civil servants to cover around 1,000
staff, many of whom are responsible for checking passports, and delays to
journeys were reported to be minimal.

Mr Holland-Kaye, who has been chief executive of Heathrow for nine years,
announced earlier this month that he would be standing down from the role
later this year.

His tenure has included the development of Heathrow expansion plans with a
third runway, and navigating changes due to Brexit and the Covid
pandemic.-bbc

Courier firm DX Group accused by rival of espionage

Courier firm DX Group has confirmed a rival company has launched a legal
case accusing it of corporate espionage.

DX said it received a claim from Tuffnell Parcels Express "in relation to
confidential competitor information being obtained by DX in the past".

The statement followed a Sunday Times report which said some DX staff, who
formerly worked at Tuffnells, offered bribes to obtain corporate
information.

DX Group said it "intends to defend its position robustly".

The Sunday Times reported that a Tufnells traffic clerk was asked to leak
confidential corporate information by a DX Group employee in exchange for a
£50 payment from a delivery driver in October 2020.

The newspaper reported the legal case, filed last week, alleged three DX
Group staff, who were all former employees of Tuffnells, had conspired to
obtain daily customer service reports.

High Court papers seen by the BBC confirmed the claim by Tufnell Parcels
Express against DX Network Services Ltd, DX Group, employees Tom Middlewood,
Jim Sinden and Joe Trappitt.

Tufnells said in the papers it was seeking damages as well as other costs.

Shares in DX Group plunged by 11% on Monday morning but have since regained
some ground.

DX said in a statement that the matters raised by Sheffield-based Tuffnell
Parcels Express had been "subject to a corporate governance inquiry and
investigation by DX, the conclusions of which were reported by the company
in an announcement made on 20 September 2022".

"As matters are now subject to legal proceedings, the company will not
provide further comment until the appropriate time," it said.

On 20 September, a press release by DX said it had held an investigation
into "an allegation of bribery" and other related issues.

It said it had found evidence that "confidential competitor information was
obtained over a period of time and that an isolated offer of payment for
such information had been made by employees".

DX also said the probe concluded there "may have been a breach of the
Bribery Act 2010 by the employees concerned". It said work was needed to
"improve compliance procedures and to mitigate the risk of potential future
incidents".

The company confirmed "further" disciplinary action was being taken with
"certain staff involved", after it admitted previous disciplinary action
taken at the time was "insufficient".

DX announced two weeks ago the appointment of Paul Ibbetson as its new chief
executive after Lloyd Dunn resigned in September last year.

Mr Ibbetson previously managed the freight division of the group and before
that worked at Tuffnell Parcels Express where he was a board director for
eight years.-bbc

Amazon: Unionised Coventry workers announce strike escalation