Pravin has quite a juggling act on his hands with the 2017 budget speech. In October, Gordhan said tax-policy measures will raise an extra R43bn ($3.3bn) and spending will be reduced by R26bn in the next two years to narrow the budget shortfall. That said, there is a distinct possibility that taxes will be raised while some sacrifices will have to be made to trim government spending. Raising the 14% value-added tax rate is another option but this is politically unpopular because its thought to hurt the poor.
Source : https://goo.gl/kehGqS
Telkom Considers R13Bn Bid For Cell C
Telkom is considering a bid of as much as $1bn (R13.16bn) for wireless operator Cell C, which has missed debt payments and is trying to complete a recapitalisation. Blue Label Telecoms agreed to buy a 45% stake in Cell C last year, but the deal has yet to be completed a week before the end-February deadline. Telkom held talks with Cell C’s owner Oger Telecom in 2015 about buying the carrier but failed to agree on a price.
Source : https://goo.gl/dM3yk3
Barclays Africa Granted Immunity In Forex Rigging Case
The Competition Commission has granted Barclays Africa conditional immunity from prosecution in return for its continuing cooperation in the rand currency trading probe. “We did, through the investigation, receive a leniency application from Barclays/ABSA which cooperated and gave us more information,” The head of the Commission Tembinkosi Bonakele told a parliamentary committee on Tuesday. I think these banks are being treated with kid gloves.
Source : https://goo.gl/kRtb3k
Verizon Cuts Yahoo Deal By $350 Million
Verizon and Yahoo have agreed to cut the acquisition price by $350 million following Yahoo’s disclosures in recent months of two huge security breaches affecting more than one billion users. Verizon’s new price tag for buying Yahoo’s core Internet assets is $4.48 billion, all in cash. The deal is expected to close in the second quarter of this year.
Source : https://goo.gl/MlqDtu
HSBC Suffers Loss Of $4.2 Billion
HSBC reported a net loss of $4.2 billion for the fourth quarter of 2016. The biggest single hit to its battered bottom line came from a $2.4 billion writedown of the value of its private banking business in Europe. HSBC’s fourth-quarter results also suffered from lower revenue and higher costs than the same period a year earlier, when it posted a net loss of $1.3 billion. The bank’s shares were trading down around 5% in Hong Kong after it published the earnings report.
Source : https://goo.gl/NV9xrV
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