Monday, January 11, 2021

BBC News - Brexit: M&S temporarily cuts hundreds of products in NI

 

Marks & Spencer has temporarily stopped selling hundreds of items in its Northern Ireland stores due to Brexit red tape.

The retailer said it feared its food would be blocked due to new rules governing shipments between Great Britain and Northern Ireland.

A growing number of firms have spoken out about paperwork delays at ports.

The government said traders and hauliers need to take steps to comply with new border rules.

M&S took the decision to temporarily drop hundreds of products, including chocolate fudge pudding and sweet and sour chicken, from its Northern Ireland stores after it saw competitors' lorries barred from travelling between the mainland and Northern Ireland.

An entire consignment in a lorry can be held up if only one item in the truck doesn't have the correct customs forms filled out.

The retailer said it aimed to get the products back up for sale soon.

An M&S spokesperson said: "We have served customers in Northern Ireland for over 50 years and our priority is to make sure we continue to deliver the same choice and great quality range that our loyal customers have always enjoyed.

"Stores have been receiving regular deliveries this week, however following the UK's recent departure from the EU, we are transitioning to new processes and we're working closely with our partners and suppliers to ensure customers can continue to enjoy a great range of products."

Tax on Percy Pig

In addition to problems shipping goods internally in the UK, the new Brexit trade rules are creating problems for exporters and traders transporting goods to and from the EU, say firms.

The UK sealed a trade deal with the European Union (EU) on 24 December that was billed as preserving its zero-tariff and zero-quota access to the bloc's single market.

But in addition to red tape causing delays, major retailers that use the UK as a distribution hub for European business could face possible tariffs if they re-export goods to the EU.

On Friday, M&S chief executive Steve Rowe warned of more red tape and a rise in export costs to some countries.

"The best example I can give you of that is Percy Pig," he said,

"Percy Pig is actually manufactured in Germany. If it comes to the UK and we then send it to Ireland, in theory it would have some tax on it," he added.

M&S said it was "actively working to mitigate" the effects of the "rules of origin" regulations, under which products are taxed differently depending on which country they come from.

Other firms have also been hit by the confusion caused by new Brexit trading rules.

Parcels giant DPD has suspended some services, while seafood exporter John Ross said the chaos was like being "thrown in the cold Atlantic without a lifejacket".

Shane Brennan, chief executive of the Cold Chain Federation, which represents chilled transport and storage companies, said the emerging problems had come despite the amount of cross-border traffic still being quite low.

"Trade flows are still only about 50% of what we would expect, but even at those levels we are seeing levels of confusion and delays," he told the BBC's Today programme. "The feeling is we are building to quite a significant potential disruption."

A government spokesman acknowledged that there had been "some issues", but said ministers had always been clear there would be some disruption at the end of the transition period.

The Cabinet Office said in a statement that the volume of border crossings had been low so far this year, but that it expected crossings to steadily increase to normal levels.

This brings the potential for "significant disruption if traders and hauliers have not taken the necessary steps to comply with the new rules," the Cabinet Office said.

Out of about 1,500 lorries per day trying to get from Great Britain to the EU in the new year, 700 have been turned away - mainly due to a lack of a negative Covid test for drivers, it said.

"We have always been clear there would be changes now that we are out of the customs union and single market, so full compliance with the new rules is vital to avoid disruption," said Cabinet Office minister Michael Gove.

However, anger is growing among companies whose livelihoods depend on export trade.

In a letter on Friday to Business Secretary Alok Sharma, Scottish salmon producer John Ross Jr launched a stinging attack on the government's handling of the situation.

The firm's sales director, Victoria Leigh-Pearson, wrote that the company had in recent months "had to endure the government issuing a barrage of useless information" and an "absence of factually correct information from all government agencies." It amounted, she said, to "gross incompetence".


Part of the letter to Alok Sharma:

As I write, perishable goods that were dispatched from our facility five days ago, headed for France following a process that your department advised, have still not crossed the border. This usually takes only 24 hours because they are consolidated with the produce of other companies, which have not been able to follow the correct procedures due to a knowledge gap directly attributable to your department.

Entire trucks are currently being rejected without explanation by the French customs authority. Our hauliers have now pulled their services as such a backlog has been created. Other hauliers are not taking on new customers. Today, we've even had confirmation that the IT systems of the UK and France are incompatible. After four years you only establish this now?

Your so-called 'deal' is worthless if this situation is not fixed immediately, and unless you put in place measures to address the issues that continue to unfold on a daily basis. Moreover, as a seafood exporter, it feels as though our own government has thrown us into the cold Atlantic waters without a lifejacket.

Yours sincerely, Victoria Leigh-Pearson, Sales Director, John Ross


Perfect storm

John Ross is not the only Scottish seafood exporter suffering. The industry says it has been hit by a "perfect storm" of Brexit disruption, which could sink a centuries-old industry.

"These businesses are not transporting toilet rolls or widgets. They are exporting the highest quality, perishable seafood which has a finite window to get to markets in peak condition," said Donna Fordyce, chief executive of Seafood Scotland.

"If the window closes, these consignments go to landfill."




She said the sector has already been weakened by Covid-19, the closure of the French border before Christmas as well as "layer upon layer" of problems associated with Brexit.

The group fears that without exports, the fishing fleet will have little reason to go out.

"In a very short time, we could see the destruction of a centuries-old market which contributes significantly to the Scottish economy," added Ms Fordyce.

UK government Minister for Scotland David Duguid blamed Scottish leaders for the issues.

"The Scottish Government has persistently refused to accept the democratic vote to leave the EU, but that does not allow them to abdicate their responsibilities to Scottish businesses," he said.

"Over the past 18 months they have assured the fishing industry that the systems they were putting in place would be adequate. They clearly are not."

Lost in the mail

Parcel delivery service DPD UK said it had paused its European Road Service because of the '"increased burden" of customs paperwork for packages heading to the EU, including the Republic of Ireland.

DPD said 20% of parcels had "incorrect or incomplete data attached", which meant they would have to be returned.


In an email to its business customers, the company said that it had been a "challenging few days" for its international operation, and that it would "pause and review" its service. It plans to restart on 13 January.

"It has now become evident that we have an increased burden with the new, more complex processes, and additional customs data we require from you for your parcels destined to Europe" the firm wrote.

Hauliers grinding gears

The boss of one of Wales' largest hauliers said logistical problems have emerged at the Irish border too.

Andrew Kinsella, managing director of Gwynedd Shipping, said his company has a backlog of 60 lorries waiting to be shipped to Dublin.

He said many hauliers are finding that their customers are not able to generate the special declarations that are needed to ultimately enable a lorry to get onto a ferry.

"Whilst you don't see queues at ports and terminals the reality is that these queues are developing elsewhere in our depot in Holyhead, in our depot in Deeside and in our depot in Newport in South Wales, and lots of hauliers have depots in the proximity of ports," he said.

"There are a lot of issues about demarcation about who is going to arrange the export declaration with the UK revenue authorities, who's going to arrange the import declaration, the hauliers then trying to arrange the import safety and security declaration to create an ENS number which helps you generate a PBN number so there has been a lot of everyone finding their feet".

Thursday, January 7, 2021

Reuters News - U.S. Congress certifies Biden win after Trump supporters wreak havoc in the Capitol

 WASHINGTON (Reuters) - Hours after hundreds of President Donald Trump’s supporters stormed the U.S. Capitol in a harrowing assault on American democracy, a shaken Congress on Thursday formally certified Democrat Joe Biden’s election victory.

Immediately afterward, the White House released a statement from Trump in which he pledged an “orderly transition” when Biden is sworn into office on Jan. 20, although he repeated his false claim that he won the November election. Just the previous day, the Republican president had seemingly incited a mob to swarm the Capitol seeking to overturn the election result.

The destructive and shocking images at the Capitol of what other Republicans called an “insurrection” filled television screens in America and around the world, a deep stain on Trump’s presidency and legacy as his tenure nears its end.

In certifying Biden’s win, longtime Trump allies such as Vice President Mike Pence and Senate Republican leader Mitch McConnell ignored his pleas for intervention, while the violence at the Capitol spurred several White House aides to quit.

A source familiar with the situation said there have been discussions among some Cabinet members and Trump allies about invoking the 25th Amendment, which would allow a majority of the Cabinet to declare Trump unable to perform his duties, making Pence the acting president. A second source familiar with the effort doubted it would go anywhere given Trump has less than two weeks left in office.

After the chaos on Capitol Hill, Congress resumed its work late Wednesday certifying Biden’s Electoral College win - normally a formality but which included efforts by some Republican lawmakers to stall the process. As the sometimes tense debate stretched into the early hours of Thursday, the Senate and the House of Representatives rejected two objections to the tally and certified the final Electoral College count with Biden receiving 306 votes and Trump 232 votes.

McConnell, who had long remained silent while Trump sought to overturn the election results, chastised the Republican lawmakers for their efforts to stall certification. He later called the invasion a “failed insurrection” and referred to those who had stormed the Capitol as “unhinged.”

“They tried to disrupt our democracy,” he said on the Senate floor of the protesters. “They failed.”

The outcome of the certification proceedings was never in doubt, but was interrupted by rioters who forced their way past metal security barricades, broke windows and scaled walls to fight their way into the Capitol.

Police said four people died during the chaos - one from gunshot wounds and three from medical emergencies - and 52 people were arrested.

Some besieged the House chamber while lawmakers were inside, banging on its doors. Security officers piled furniture against the chamber’s door and drew their pistols before helping lawmakers and others escape.

The assault on the Capitol was the culmination of months of divisive and escalating rhetoric around the Nov. 3 election, with Trump repeatedly making false claims that the vote was rigged and urging his supporters to help him overturn his loss.

Following Thursday’s certification by Congress, he issued a statement via White House aide Dan Scavino, saying: “Even though I totally disagree with the outcome of the election, and the facts bear me out, nevertheless there will be an orderly transition on January 20th.”

Biden was also bolstered by dual Democratic wins in the outstanding Georgia U.S. Senate races, which will give his party control of both the Senate and the House in the new Congress.

‘INCITED THE MOB’

Wednesday’s chaos unfolded after Trump - who before the election refused to commit to a peaceful transfer of power if he lost - addressed thousands of supporters near the White House and told them to march on the Capitol to express their anger at lawmakers.

He told supporters to pressure their elected officials to reject the results, urging them “to fight.”

Some prominent Republicans in Congress squarely blamed Trump for the violence.

“There is no question that the President formed the mob, the President incited the mob, the President addressed the mob. He lit the flame,” House Republican Conference Chairwoman Liz Cheney said on Twitter.

Trump had tried to get Pence and other Republicans to block the certification of the election - the final step before Biden takes office - even though they lacked the constitutional authority to do so.

After Pence made clear he would not accede to Trump’s wishes, the president ripped his No. 2 on Twitter even as the Senate, with the vice president presiding, was under siege.

The shock of the assault seemed to soften the resolve of some Republicans who had supported Trump’s efforts. Several Republican senators who had said they would mount objections to the electoral vote count changed their minds when they returned to the chamber.

Two objections - to the vote tallies in Arizona and Pennsylvania - were voted down resoundingly in both the House and the Senate.

“All I can say is count me out. Enough is enough,” Senator Lindsey Graham, one of Trump’s staunchest allies in Congress, said on the Senate floor. “Joe Biden and Kamala Harris are lawfully elected and will become the president and the vice president of the United States on Jan. 20.”

In hastily arranged remarks in Delaware on Wednesday, Biden said the activity of the rioters “borders on sedition.”

At the White House, several aides resigned in protest over the Capitol attack, according to sources and media reports, including Matt Pottinger, the deputy national security adviser, and Stephanie Grisham, chief of staff to Melania Trump and a former White House press secretary.

Election officials of both parties and independent observers have said there was no significant fraud in the November contest, in which Biden won 7 million more votes than Trump.

Wednesday’s violence drew stunned reactions from world leaders. British Prime Minister Boris Johnson called the events in the Congress a “disgrace”, saying in a tweet the United States stood for democracy around the world and that was it was “vital” now that there should be a peaceful and orderly transfer of power.

Reporting by Patricia Zengerle, Jonathan Landay and Richard Cowan.; Additional reporting by Steve Holland, David Morgan, Daphne Psaledakis, Lisa Lambert, Mark Hosenball, Doina Chiacu, Jonathan Allen, Susan Cornwell, Susan Heavey, Richard Cowan, Tim Ahmann, David Shepardson and Diane Bartz; Writing by James Oliphant; Editing by Colleen Jenkins, William Mallard and Frances Kerry

Tuesday, January 5, 2021

Reuters News - Bleak start to new year for Britain as it enters third lockdown

 LONDON (Reuters) - Britain began its third COVID-19 lockdown on Tuesday with citizens under orders to stay at home and the government calling for one last major national effort to stem the virus before mass vaccinations turn the tide.

Finance minister Rishi Sunak announced a new package of business grants worth 4.6 billion pounds ($6.2 billion) to help keep people in jobs and firms afloat until measures are relaxed gradually, at the earliest from mid-February but likely later.

Britain has been among the countries worst-hit by COVID-19, with the second highest death toll in Europe and an economy that suffered the sharpest contraction of any in the Group of Seven during the first wave of infections last spring.

More than a million people in Britain have already received their first dose of a COVID-19 jab, but this is not enough to have an impact on transmission yet.

Prime Minister Boris Johnson announced the new lockdown late on Monday, saying the highly contagious new coronavirus variant first identified in Britain was spreading so fast the National Health Service risked being overwhelmed within 21 days.

In England alone, some 27,000 people are in hospital with COVID, 40% more than during the first peak in April, with infection numbers expected to rise further after increased socialising during the Christmas period.

Since the start of the pandemic, more than 75,000 people have died in the United Kingdom within 28 days of testing positive for coronavirus, according to official figures.

A Savanta-ComRes poll taken just after Johnson’s address suggested four in five adults in England supported the lockdown.

“I definitely think it was the right decision to make,” said Londoner Kaitlin Colucci, 28. “I just hope that everyone doesn’t struggle too much with having to be indoors again.”

Downing Street said Johnson had cancelled a visit to India later this month to focus on the response to the virus, and Buckingham Palace called off its traditional summer garden parties this year.

VACCINATIONS ARE KEY

Under the new rules in England, schools are closed to most pupils, people should work from home if possible, and all hospitality and non-essential shops are closed. Semi-autonomous executives in Scotland, Wales and Northern Ireland have imposed similar measures.

As infection rates soar across Europe, other countries are also clamping down on public life. Germany is set to extend its strict lockdown until the end of the month, and Italy is keep nationwide restrictions in place this weekend while relaxing curbs on weekdays.

Sunak’s latest package of grants adds to the eye-watering 280 billion pounds in UK government support already announced for this financial year to stave off total economic collapse.

The new lockdown is likely to cause the economy to shrink again, though not as much as during the first lockdown last spring. JP Morgan economist Allan Monks said he expected the economy to shrink by 2.5% in the first quarter of 2021 -- compared with almost 20% in the second quarter of 2020.

To end the cycle of lockdowns, the government is pinning its hopes on vaccines. It aims to vaccinate all elderly care home residents and their carers, everyone over the age of 70, all frontline health and social care workers, and everyone who is clinically extremely vulnerable, by mid-February.

But senior minister Michael Gove urged caution in terms of when that might translate into an easing of restrictions.

“We’ll be able to review the progress that we’ve made on the 15th of February ... and we hope that we’ll be able to progressively lift restrictions after that, but what I can’t do is predict, nobody can predict with accuracy what we will be able to relax and when,” he said on Sky News.

($1 = 0.7371 pounds)

Additional reporting by Sarah Young, Michael Holden, Andy Bruce, William Schomberg, Ben Makori and William James; writing by Estelle Shirbon; editing by Guy Faulconbridge and Raissa Kasolowsky

Monday, January 4, 2021

BBC News - FTSE 100 rallies amid Covid vaccine rollout

 


Shares in London have risen sharply on the first day of trading in 2021 amid optimism stemming from the rollout of the second coronavirus vaccine.

The FTSE 100 index of larger companies rose 3% in early trading, while the more UK-focused FTSE 250 rose 1.5%.

The main market was led by a surge from Ladbrokes owner Entain, which jumped 26% after a bid from rival MGM Resorts.

The pound also gained against the dollar, rising to $1.37 for the first time since May 2018.

"The FTSE 100 has begun the new trading year on the front foot," said Susannah Streeter, senior investment and markets analyst at stockbroker Hargreaves Lansdown.

The gains came amid a backdrop of "optimism for global growth as vaccine roll outs gather pace," she said.

Dialysis patient Brian Pinker, 82, became the first person to receive the Oxford-AstraZeneca Covid-19 vaccine at 7:30 GMT at Oxford's Churchill Hospital.

More than half a million doses of the vaccine are ready for use in the UK on Monday.

In 2020, the FTSE 100 lagged other major stock indexes around the world.



While the US's Nasdaq and Japan's Nikkei 225 finished the year higher than they started, the FTSE 100 is yet to regain the heights it reached of more than 7,600 last January.

While most Britons may not directly invest in the stock markets by buying shares from a stockbroker, many pensions are invested in stock markets around the world.

For instance, more than nine million people are enrolled in Nest, the private pension scheme set up by the government.

Not all shares have fared well. Banks and homebuilders have had a bad day amid concern over the UK economy and whether further lockdowns could harm household finances.

------------------------------------------------------------------------------------------------------------


Hope and relief are the flavours of the start of 2021 trading: hope that the rollout of the Oxford/AstraZeneca vaccine will bring forward the end of restrictions, and relief that there is - as yet - no sign of visible disruption from the new trading arrangements with the EU.

But while London stocks comfortably outpaced their European rivals, there are a couple of caveats.

First, it will be a while before we know the impact of the new trading rules.

A survey of manufacturers found a surge in activity in factories in December as they rushed to fill and ship orders ahead of the changes; it may be some weeks before the business gets back to normal.

And second, the economy has a long way to go. The FTSE 100, in contrast to its Wall Street counterpart, is more than 10% below the level it was a year ago, while the UK economy is likely to have finished 2020 at least 10% smaller.

In addition, the potential for more school closures and lockdowns means that not only is the economy inevitably in the second dip of recession - but recovery is further off.

With figures from the Bank of England suggesting households are sitting, on average, on more money, that recovery could be emphatic - but only once restrictions are lifted; the spectre of uncertainty continues to hover.

------------------------------------------------------------------------------------------------------------

Betting company Entain was the biggest share riser by far in London on Monday following the $11bn (£8.1bn) takeover offer from MGM Resorts.

Entain has said the approach undervalues the company, leading to speculation that MGM will come back with a higher offer.

The move is the latest attempt by a casino operator to move into the online gambling business.

In addition to Ladbrokes, UK-based Entain also owns a number of online sports betting and gambling brands, including Bwin, Partypoker, Coral, Eurobet, Gala and Foxy Bingo.

It had recently rebuffed an earlier $10bn all-cash approach from MGM, the newspaper said.

Friday, January 1, 2021

Reuters News - African free trade bloc opens for business, but challenges remain

 JOHANNESBURG (Reuters) - African countries began officially trading under a new continent-wide free trade area on Friday, after months of delays caused by the global coronavirus pandemic.

But experts view the New Year’s Day launch as largely symbolic with full implementation of the deal expected to take years.

The African Continental Free Trade Area (AfCFTA) aims to bring together 1.3 billion people in a $3.4 trillion economic bloc that will be the largest free trade area since the establishment of the World Trade Organization.

Backers say it will boost trade among African neighbours while allowing the continent to develop its own value chains. The World Bank estimates it could lift tens of millions out of poverty by 2035.

“There is a new Africa emerging with a sense of urgency and purpose and an aspiration to become self-reliant,” Ghana’s President Nana Akufo-Addo said during an online launch ceremony.

But obstacles - ranging from ubiquitous red tape and poor infrastructure to the entrenched protectionism of some of its members - must be overcome if the bloc is to reach its full potential.

Trade under the AfCFTA was meant to be launched on July 1 but was pushed back after COVID-19 made in-person negotiations impossible.

However, the pandemic also gave the process added impetus, said Wamkele Mene, Secretary-General of the AfCFTA Secretariat.

“COVID-19 has demonstrated that Africa is overly reliant on the export of primary commodities, overly reliant on global supply chains,” he said. “When the global supply chains are disrupted, we know that Africa suffers.”

Every African country except Eritrea has signed on to the AfCFTA framework agreement, and 34 have ratified it. But observers such as W. Gyude Moore - a former Liberian minister who is now a senior fellow at the Center for Global Development - say the real work begins now.

“I would be surprised if they can have everything set up within 24 months,” he told Reuters. “For long-term success, I think we’ll need to look at how long it took Europe. This is a multi-decade process.”

‘WE MUST START SOMEWHERE’

Historic challenges including Africa’s poor road and rail links, political unrest, excessive border bureaucracy and petty corruption will not disappear overnight.

And an annex to the deal outlining the rules of origin - an essential step for determining which products can be subject to tariffs and duties - has not been completed yet.

Meanwhile, 41 of the zone’s 54 member states have submitted tariff reduction schedules.

Members must phase out 90% of tariff lines - over five years for more advanced economies or 10 years for less developed nations. Another 7% considered sensitive will get more time, while 3% will be allowed to be placed on an exclusion list.

Finalising those schedules and communicating them to businesses must be done quickly, said Ziad Hamoui of Borderless Alliance, a group that campaigns for easier cross-border trade.

But efforts to implement the deal will also likely face resistance from countries’ domestic interest groups. Fears of losing out to more competitive neighbours initially made some countries, including West African giant Nigeria, sceptical of the pan-African project.

Still, proponents of the zone are confident that initial steps towards its implementation will already allow member states to quickly boost intra-African trade.

“Economic integration is not an event. It’s a process,” said Silver Ojakol, chief of staff at the AfCFTA Secretariat. “We must start somewhere.”

Editing by Alex Richardson and Peter Graff