Finance minister Malusi Gigaba has reacted with “concern” to the recent revelations on Steinhoff International’s accounting irregularities. The Johannesburg Stock Exchange (JSE) will be conducting an internal audit into the holdings company and is expected to report its findings to Gigaba. Gigaba said he had requested the Financial Services Board, Public Investment Corporation, and the Government Employees Pension Fund to provide him with a report on the extent of exposure for retirement funds. “The minister expects that this report will give assurances that the interests of the shareholders are protected, including their retirement and savings funds,” said Gigaba. Gigaba said he supported the FSB’s independent investigation into possible false and misleading reports in terms of section 81 of the Financial Markets Act, as well as any related abuses regarding Steinhoff.
Moodys Downgrades Steinhoff
Moody’s Investors Service downgraded Steinhoff by four notches to B1, and placed the global retailer’s rating on review for further downgrade. The rating agency said in a statement late on Thursday that it had downgraded the issuer ratings of Steinhoff International Holdings and Steinhoff Investment Holdings, and the senior unsecured notes rating of Steinhoff Europe to B1 from Baa3.
EOH Shares Tumble 34%
Software and technology company EOH plunged 34.7% on Thursday to close at R45. The free-fall came one day after investigators from the Independent Police Investigative Directorate (Ipid) reportedly searched the home of Keith Keating, a director of three businesses owned by the group, over his involvement in corrupt government contracts. On Wednesday, Daily Maverick reported that Keating was implicated in alleged procurement irregularities in the South African Information and Technology Agency and South African Police Service (SAPS) amounting to about R6.1bn. EOH’s share price has fallen more than 73% over the past year, as questions arose over the way in which the group landed lucrative government contracts.
General Electric To Shed 12000 Jobs
The US industrial group expects the “painful but necessary” job losses to help save $1bn next year as demand for fossil fuel power plants wanes. GE intends to cut 1,100 jobs from its UK power business, one-third of the firm’s Swiss workforce and one-sixth of German workers are likely to be hit. In October, GE slashed its profits guidance after posting a 5% fall in third-quarter earnings to $1.8bn, due to weak trading in its power and oil and gas businesses. GE Power is the company’s largest industrial business, employing more than 55,000 people worldwide.
Bitcoin Soars Past $18000
The price of Bitcoin crashed through $19,000 today, just days after hitting $10,000, $12,000, and other psychological barriers, and then retreated to $18,000. Many cryptocurrency experts are predicting Bitcoin will hit $50,000 or even $100,000 as institutional investors continue to pile in.
SA Egg Prices Rise 20%
Egg prices in South Africa are expected to increase by as much as 20% after an outbreak of the highly pathogenic avian flu in June forced farmers to cull egg laying birds, industry experts said on Thursday. The outbreak of avian flu prompted farmers to cull millions of birds and neighbouring countries including Zimbabwe, Namibia and Botswana to ban poultry imports from South Africa. Industry experts said in October commercial egg production had tumbled 17% and over 1 000 workers lost their jobs in the wake of the outbreak of avian flu. Prices are expected to increase between 15 and 20% from December to June 2018.
Currencies: Bitcoin R243,000.Ether R6,351 . R/USD13.73 . R/GBP18.46 . R/EUR16.11