China Retaliates To U.S Sanctions

China announced that it will impose additional tariffs on some American goods in retaliation for the latest increase of U.S. duties on $200 billion of Chinese imports. The tariffs will take effect on June 1, according to a statement on the Ministry of Finance’s website. The year-long trade frictions between the world’s two biggest economies re-escalated last week when the Trump administration announced a 25% punitive tariff on thousands of Chinese products.

Source

Warning Of Extreme Climate Events

More extreme weather events and a rise of 6°C in average temperatures across the country could be possible by the end of the century. That’s according to an official government report released this week, which has pulled no punches in summarising just how climate change has already ravaged South Africa, with the worst yet to come. Over the past few years, we have seen droughts cripple entire provinces. Then, when the rain does come in certain regions, the intensity of the storms often lead to displacements and deaths.

Source

Uber IPO A Disaster

The ride-hailing giant, which went public on Friday, six weeks after its rival Lyft, sputtered to a 7.6% loss in its stock market debut, wiping out $655 billion of investor wealth. When the dust settled, it was the biggest first-day dollar loss in US IPO history, according to an analysis from Jay Ritter, a professor at the University of Florida. Prior to Uber’s loss, the largest first-day dollar loss was during the dot-com bubble of two decades ago. Genuity, an internet company spun out of Verizon, lost $277 million its first day.

Source

Net1 Suffers 72% Profit Decline

Financial services group Net 1 UEPS Technologies has reported a 72% decline in their bottom line since their Sassa contact came to an end during the first quarter of 2019. The decrease in segment revenue and operating income was primarily due to the substantial decrease in the number of Sassa grant recipients paid under our Sassa contract as the contract ended at the end of Q1 2019,

Source

MTN Share Price Up 36% In Two Months

Between March 6, the day before MTN announced its results for the year to December, and Thursday (May 9), when it published a first-quarter trading update, its share price has increased by 36% from R76.06 to R103.45. This performance, which should be viewed against MTN’s steady decline from a high of over R260 in September 2014, reflects the outcome of a clearly-communicated plan to deal with issues that have not sat well with investors for some years. In March the group defined its position and outlined its future direction, and a flurry of activity since then – including board changes, positive quarterly update, imminent Nigerian listing and asset disposal programme – has hit the right notes with investors as the price continues its upward trajectory.

Source

Ethekwini Mayor To Appear On Corruption Charges

eThekwini mayor Zandile Gumede is expected to hand herself over to the Hawks and appear in the Durban Commercial Crimes court on Tuesday on a raft of corruption charges. In May last year it emerged that Gumede, a strong ally of former president Jacob Zuma, was being investigated by the Hawks for facilitating money laundering‚ fraud and corruption, allegedly to pay back cronies who helped her political ambitions. In December a City Press article reported that a forensic report by Integrity Forensic Solutions named Gumede and Mondli Mthembu‚ a councillor who chairs the human-settlements committee in council‚ and three other officials who allegedly orchestrated a corruption and money laundering “scam” which saw eThekwini pay R25m to hire about 800 chemical toilets for six months.

Source

Zimbabwe Starts Loadshedding

Zimbabwe has started rolling power cuts lasting up to eight hours that will also hit mines, a schedule from the State power utility showed on Monday, after reduced output at both the largest hydropower plant and ageing coal-fired generators. The Zimbabwe Electricity Transmission and Distribution Company (ZETDC) said power cuts, known locally as load-shedding, would start on Monday and will last up to eight hours during morning and evening peak periods.

Source

 

Advertisements

SARS Goes After Top ANC Officials

Top officials, politicians and businessmen of the ANC are facing tax claims of more than R250m on income earned from Bosasa, the services company at the heart of a widespread corruption scandal, the Johannesburg Sunday Times reports. Those on the list include Dudu Myeni, Nomvula Mokonyane, Vincent Smith and Zack Modise. Angelo Agrizzi, Bosasa’s chief operating officer from 1999 to 2016, is set to continue his testimony at the state capture commission and it’s alleged that he has more explosive evidence to provide which could take down more people. It’s a tough time being an ANC member

Source

DA and ANC In Election Trouble According To Polling Data

The poll, conducted between March and April 2019 using a demographically representative sample of over 3,600 people, continues a trend seen in many other pre-election polls – showing a drop in support for the DA and ANC, while support for the EFF rises. According to the latest results, published by the City Press, the ANC’s support has dropped from around 61% in its March poll to 56.9% in April. This is down from a 62.2% share of the vote in the 2014 national election. The DA has dropped even further from 18% in March to just 15% in April. The DA secured 22% of the vote in the 2014 elections, so should these snapshots carry through to the election, it would represent a significant drop in support.

Source

54c/l Petrol Price Jump For May

The price of petrol will increase by 54c/l at midnight on Tuesday, the department of energy confirmed on Sunday. The price was adjusted on the basis of local and international factors. “International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs,” the department said in a statement. Petrol will increase by 54c/l, diesel with 0.05% sulphur will increase by 1c/l, while the price of diesel with 0.005% sulphur will remain unchanged, the department said.

Source

Uber Set For Year’s Biggest IPO

Over the past decade, Uber Technologies Inc. proved itself to be one of the most prolific young fundraisers ever. It pulled together more than $20 billion from private investors. After burning through more than half that amount in just the last three years, Uber will soon see whether it can recreate that magic on the stock market. The ride-hailing company entered the final stretch of the ultimate capital-raising exercise on Friday, when it disclosed details of an initial public offering expected to net the company and its backers another $8 billion or more. Executives and bankers plan to hit the road next week to promote the stock to public investors and then ring the bell on the New York Stock Exchange floor on May 10, when the shares start trading, according to a plan obtained by Bloomberg.

Source

Pick n Pay Earnings Up 26.1%

Retailer Pick n Pay said on Friday its diluted headline earnings per share were up 26.1% during the 53 week weeks to March 3 and declared a final dividend of 192 cents per share. The company also said Aboubakar Jakoet would be retiring as group chief finance officer of the Pick n Pay but had agreed to remain in the post until a successor was appointed. Pick n Pay said its South Africa performance mitigated some operating challenges experienced outside its borders, with earnings from the Rest of Africa division down 16.2% year-on-year, reflecting difficult economic conditions in Zambia and the once-off impact of currency devaluation in Zimbabwe.

Source

Military Spending Around The World Booming

 

THE WORLD is arming itself to the teeth. That is the conclusion of a new report published on April 29th by the Stockholm International Peace Research Institute (SIPRI), a think-tank. Global military spending last year rose to $1.8trn, says SIPRI—the highest level in real terms since reliable records began in 1988, during the cold war, and 76% higher than in 1998, when the world was enjoying its “peace dividend”. Military spending as a share of global GDP has fallen in recent years, but that offers little reassurance in a world of rising geopolitical tension.

Source

Currencies : Rand/USD 14.38 – Rand/GBP 18.60 – Rand/EUR 16.04

 

 

Microsoft Hits $1 Trillion Valuation

Microsoft shares jumped to record levels on Thursday, with the company’s stronger-than-expected March quarter results lifting its market capitalisation “to $1trn and beyond,” Analysts were broadly positive on the results, with most pointing to the rapid growth in Microsoft’s Azure cloud-computing business. UBS wrote that the results suggested that “there’s lots more opportunity ahead,” while Evercore ISI raved that Microsoft “should remain a stock for all seasons.” Shares climbed as much as 5.1%, allowing Microsoft to regain the title of largest US stock.

Source

Cyclone Kenneth Makes Landfall In Mozambique

Cyclone Kenneth hit the north coast of Mozambique in Cabo Delgado province after swiping the Comoros. The UN warned of flash flooding and landslides. Some parts of the city are in darkness, and strong winds have felled trees and destroyed boats. “The Cyclone is expected to bring heavy rains in the area for several days, with over 600 millimetres rainfall expected.” That volume of rain would be nearly double the 10-days accumulated rainfall that caused flooding in Beira during Cyclone Idai. Forecasters at Meteo-France warned that Kenneth could trigger waves off Mozambique’s northeastern shore as much as five metres (16 feet) higher than usual.

Source

Glencore Under Investigation For Corruption

Glencore said it’s under investigation by the US Commodity Futures Trading Commission for possible corrupt practices, the latest legal headache for the world’s biggest commodity trader. The probe comes after the London-listed company was subpoenaed last year by the US Justice department for documents relating to its dealings in Nigeria, the Democratic Republic of Congo and Venezuela since 2007.

Source

New R50 And R500 Coins Launched

The South African Mint has unveiled a set of new R50 and R500 collector coins, celebrating the country’s 25 years of democracy. “This week 25 years ago, South Africans went to the polls in the country’s first democratic elections following the end of apartheid rule. To commemorate this milestone, the SA Mint has issued new collectable coins in base metal, sterling-silver and pure gold,” the group said. The new collector coins feature a R50 sterling silver, R50 bronze alloy and R500 pure gold coin, all of which feature designs from South Africa’s young designers.

Source

Ombudsman Releases Companies Blacklist

The Consumer Goods and Services Ombudsman Office (CGSO) has decided to name and shame companies that have failed to cooperate with its office in relation to monies being paid and goods or services not being delivered or provided. The CGSO warned that consumers should be cautious when dealing with these companies.

Source

Currencies : Rand/USD 14.39 – Rand/GBP 18.57 – Rand/EUR 16.03

AMCU Faces De-registration

The Labour Department has said it intends to deregister one of the country’s biggest mining unions, just weeks before crucial platinum-industry wage talks are expected to begin. The Association of Mineworkers and Construction Union (AMCU) “has ceased to function in terms of its constitution,” and “is not a genuine trade union,” the registrar of labour relations said in a notice published in the Government Gazette. It didn’t provide further details.

Source

Cyclone Kenneth Rolls Into Moz And Tanzania

Cyclone Kenneth is also predicted to hit Tanzania, bringing winds of up to 200km/h (124 mph) and torrential rain. Authorities in Tanzania have advised people in southern coastal regions to move to safer ground. Residents have been told to expect damage to their houses and farms. Cyclone Idai made landfall near the Mozambican port city of Beira on 14 March, packing winds of up to 177 km/h and bringing torrential rain which caused extensive flooding.

Source

Brian Molefe Loses Third Appeal Bid

Former Eskom CEO Brian Molefe has lost his third appeal regarding R11m he received from Eskom, part of a R30m pension agreement that was paid to him when he left the state-owned entity. According to a statement issued by trade union Solidarity, one of the respondents in the matter, Molefe’s application for leave to appeal was dismissed for the third time with a punitive cost order.

Source

Competition Commission Blasts Networks Over Data Prices

The Competition Commission has released a provisional report on its Data Services Market Inquiry, in which it prescribed new rules for mobile networks. In its preliminary findings, the commission said international benchmarking confirmed that South African data prices are high – particularly for mobile prepaid data. Notably, the commission found that South Africa’s data prices are higher than other BRICS and SADC countries. It also found that Vodacom and MTN charge higher prices in South Africa than other countries in which they operate.

Source

Mashaba Announces R20 Billion Inner City Investment

Herman Mashaba on Wednesday announced a R20-billion investment which he said was the single biggest property investment the city had ever made through private sector development. “Through the release of city properties to the private sector for redevelopment, the city expects to realise R20-billion in expected investment value, which will soon be visible in the inner-city with 24 developments set to start within six months,” Mashaba said in a statement.

Source

Currencies : Rand/USD 14.41 – Rand/GBP 18.61 – Rand/EUR 16.09

Court Dismisses FNB Discrimination Claims

First National Bank (FNB) on Thursday welcomed the judgment delivered by the Equality Court to dismiss the matter relating to allegations of racial discrimination on interest rates by Saambou Bank. On Wednesday, the court dismissed the matter in its entirety, including the complainant’s application to amend their declarations. North Gauteng High Court found that, after all the evidence had been led and all witnesses cross-examined, the claims that Saambou charged black people higher interest rates than white people were “completely unfounded”

Source

Loadshedding Risk Returns As

Eskom announced yesterday that there was a high risk of Stage 1 rotational load-shedding from 17:00 to 22:00. The national energy provider said in a statement that the possibility of load-shedding is due to “a shortage of capacity due to the loss of generating units at our power stations.” Eskom added that load-shedding will only take place if it is absolutely necessary.

Source

Cell C Strike Shuts Head Office

Cell C’s head office in Waterfall, Johannesburg was closed down due to a strike action yesterday and this morning. Multiple reports on social media state that Cell C’s head office has been on lockdown since Wednesday, when staff were reportedly striking at the premises. Other users reported that staff access to the premises had been denied today due to mass employee suspensions, with employees resorting to working outside the building.

Source

VW To Appeal Fees Order

Volkswagen Financial Services (VWFS) South Africa has acknowledged the order by the National Consumer Tribunal and plans to take it on appeal. In a statement released on Thursday (11 April), the company said that it has taken external legal advice and that its legal team has informed them that an appeal has a good chance of success.

Source

Mozambique Cyclone Loses Top $773 Million

World Bank estimates the direct economic losses from Cyclone Idai in Mozambique to range from $656-million to $773-million, covering damage to buildings, infrastructure and agriculture, a note sent out via the United Nations said on Thursday.

Source

CCMA Warns Of Scam

The Commission for Conciliation, Mediation and Arbitration (CCMA) has issued an email scam alert being used to collect personal information today. Dumisani Mavundla, the CCMA spokesperson said they have recently been made aware of emails being sent to our User’s from the admin@ccma.org.za email address. “It instructs the user’s to come into the CCMA’s Regional Offices for an “Arbitration”, it has a case number starting with GAJK. It has no branding nor watermarks. This email is fraudulent! It is a phishing scam to collect personal information,” said Mavundla. 
Currencies : Rand/USD 14.00 – Rand/GBP 18.29 – Rand/EUR 15.80

Ramaphosa Suspends Tom Moyane

SARS commissioner Tom Moyane has been suspended with immediate effect. According to the presidency, President Cyril Ramaphosa has cited among his reasons the “deterioration in public confidence in the SARS and public finances being compromised” due to the ongoing controversy at the tax agency under Moyane’s leadership. Earlier Business Day reported that Moyane had refused to step down after he was asked to resign by President Cyril Ramaphosa. Mark Kingon has been appointed as Acting Commissioner

Source

Deloitte Disciplinary Hearing On ABIL Conduct Begins

Public disciplinary hearings into Deloitte’s audit of African Bank Investments Limited (Abil) began on Monday, in what is the biggest case the Independent Regulatory Board for Auditors (IRBA) has handled since its formation in 2006. IRBA is also reviewing Deloitte’s audit files on Steinhoff for 2014 to 2016.

Source

Busses And Taxis Suspended In Ekhurhuleni

Public transport will grind to a halt in Ekurhuleni on Tuesday as the taxi industry will go on strike over the planned roll-out of the bus-rapid transport (BRT) system. As a result of the anticipated protest, the City of Ekurhuleni said that Harambee bus services will be suspended as a precautionary measure for the day following a threat of violence.

Source

Tiger Brands Sets Aside R425Million For Class Action

Tiger Brands is recalling yet another batch of products, a move that could cost it up to R800m, twice the R324m in operating profit generated by its snacks, treats and beverages division for the financial year to end-September. About R377m of the costs arising from the listeria crisis are attributable to the sales value of contaminated products and the destruction of the items returned. This includes the reimbursement for the recall of products produced at the Germiston, Clayville and Polokwane sites. The remainder of the costs could serve as a payout of an estimated R425m that could be sought in a looming class action case.

Source

Third Of SA’s Water Lost To Poor Infrastructure

Over a third of SA’s water supply is being lost due to aged and leaking infrastructure before it can be used. That’s according to CSIR principal researcher and research group leader for resource-specific scientific measures Marius Claassen. Claassen, speaking during a panel discussion on Thursday ahead of World Water Day, said countrywide an average of 37% of SA’s water supply was lost before it reached users due to leaks.

Source

Pick n Pay and Absa Launch New Stokvel Product

The Grocery Stokvel account is the product of a collaboration between Absa Bank and Pick n Pay stores. The aim is to give communities or groups with a common savings goal an opportunity to make purchases of better value and earn interest on their savings at the same time. With the new Grocery Stokvel Account, stokvels are able to earn a very competitive interest rate on balances of as little as R50, and spend their money safely and conveniently at Pick n Pay, where they receive further savings on groceries.

Source

Currencies: Bcoin R106,602 . Ether R6,763 . R/USD11.99 . R/GBP16.85 . R/EUR14.82

 

Bitcoin In Flash Crash Down By $4000

Bitcoin flash crashed today on some of the exchanges after the Asian market open, with waves of selling hitting the most valuable coin even before that. The digital currency fell below the $16,000 level (Bitstamp prices) marking a 20% decline from its recent all-time high

Source

Old Mutual Wealth Sold To Buxton

Insurer Old Mutual has finally let superstar fund manager Richard Buxton go, selling the single-strategy business he runs at Old Mutual Wealth to him and his team, together with private equity group TA Associates, for £600m.

Source

ANC 68 Missing Votes Fiasco

The election of the entire ANC top six leadership structure – led by newly-elected president Cyril Ramaphosa – risks being challenged amid allegations of 68 unaccounted votes and irregularities in the tallying of votes. North West chairperson Supra Mahumapelo confirmed that the ANC’s steering committee met to investigate what is presently dubbed as “the disappearance” of 68 delegate votes.

Source

Steinhoff Cant Explain Irregularities

Steinhoff’s eagerly awaited presentation to a group of its bankers was met with dismay on Tuesday, as the global furniture retailer said that it could still not quantify the magnitude of the “accounting irregularities” that had led to the bombshell resignation of its charismatic CEO Markus Jooste two weeks ago. Its stock, which has lost most of its value since Jooste’s abrupt departure, had recently recovered from its lows of R6 a share, but plunged afresh, closing 17.45% weaker at R7.

Source

ANC Technically Insolvent

The ANC is technically insolvent as its liabilities exceed the value of its assets, according to the financial report tabled by outgoing treasurer-general Zweli Mkhize. The organisation is also R215m in debt and had a deficit of R47m over the past financial year. This was despite a debt-management programme over the past five years that brought debt down from the 2013 level of R249m.

Source

SABC And Unions Reach Wage Deal

The SABC says this has brought to an end the workers strike after Bemawu also signed the agreement last week following the CCMA intervention. Last week workers downed tools over salary disputes, demanding 10% salary adjustments while the employer was offering on 4.5%. The public broadcaster says CWU has agreed to a 4.8% increase, back-dated to July 2017.

Source

Currencies: R267,134 . Ether R12,360 . R/USD12.78 . R/GBP17.07 . R/EUR15.13