Business News Leaders

Prasa placed under administration, board dissolved

SAA may be just the beginning. In his weekly newsletter, President Ramaphosa has reiterated that government will do anything to save SOEs. And on Monday, Transport Minister, Fikilile Mbalula announced that Prasa has been placed under administration, the board has been dissolved and Bongi-sizwe Mpondo has been appointed administrator. Alec…

9 Dec 2019 1AM 9 min

China's exports shrink amid trade war

China's exports shrank for the fourth consecutive month in November, underscoring persistent pressures on manufacturers from its trade war with the US. But growth in imports may be a sign that Beijing's stimulus steps are helping to stoke demand. Joining Business Day TV on the line to discuss this in…

9 Dec 2019 1AM 4 min

Alexander Forbes eyes acquisitions in 2020

Alexander Forbes released its interim results on Monday showing that their revenue is coming under pressure, falling close to a percent largely due to the sluggish economy. The current economic climate also has consumers dipping more into retirement savings, the preservation rate for retirement savings declined to 53% from 55%…

9 Dec 2019 1AM 6 min

Why Eskom has moved to stage 6 loadshedding

South Africa's electricity crisis has deepened, Eskom has moved to stage 6 loadshedding. This is the first time that power cuts have moved beyond stage 4 for the struggling utility is looking to cut 6,000 megawatts from the grid due to a technical problem a the Madupi power station. Economists…

9 Dec 2019 1AM 4 min

Are government's restructuring efforts at SOEs enough?

2019 has proven to be another tough year for Eskom and SAA. SAA is now in Business Rescue, and government is going to have to fork out a further R4 billion in cash and government guarantees... Supporting the process. While Eskom, amidst a turnaround of its own, has forecast a…

6 Dec 2019 1AM 6 min

Exposure to SA economy slows GEPF investment growth

The Government Employee Pension Fund released its annual results today - the fund's portfolio grew a tepid 0.88% during the period. This largely due to the fund's exposure to the local economy which currently sits in contraction territory. CEO of the fund, Abel Sithole adds that the group is gearing…

5 Dec 2019 1AM 6 min

SAA placed in business rescue

SAA has been placed under business rescue. The decision was taken unanimously by its board in hopes of creating a better return for the company's creditors and shareholders. Treasury and lenders will provide the state owned carrier with R4 billion to facilitate the business rescue process. SAA Board Member, Martin…

5 Dec 2019 1AM 6 min

OPEC and allies agree to deepen oil output cuts

OPEC and its allies have agreed to cut oil production, this in an effort to prop up prices and prevent a glut next year. The oil cartel will extend production cuts by 500,000 barrels per day from their current 1.2 million. Business Day TV spoke to Bjarne Schieldrop from SEB…

5 Dec 2019 1AM 4 min

Why US franchise outlets aren't working in SA

Both Grande Parade Investments and Taste holdings have been on the same path - letting go of their US fanchises. GPI announced today that its now offloading a majority stake in Burger King - which it bought for more than R700 million, roughly six years ago. Business Day TV spoke…

4 Dec 2019 1AM 5 min

Is the mining industry on track when it comes to transformation?

The Minerals Council South Africa has released a report detailing the mining industry's level of transformation in terms of the Mining Charter. The report measures compliance with the 2010 charter which applied to the industry until 2018 and reveals that industry players were largely compliant with those requirements. This report…

4 Dec 2019 1AM 6 min

Government continues to pay lip service to promises of working together, says BUSA

Business Unity South Africa has come out strongly against government's inaction on the economy. While the organisation notes some progress in certain areas, it recognises that it's not enough and warns that another GDP contraction may be on the cards and has called on government to stop it's 'lip servicing'…

4 Dec 2019 1AM 7 min

Old Mutual back in court to appeal against Peter Moyo ruling

Old Mutual's battle with axed CEO Peter Moyo continues. The insurer was back in court on Wednesday to appeal a ruling made in July that Moya must be reinstated. Old Mutual has argued that the Johannesburg High Court didn't consider the real reason why Moyo was fired in the first…

4 Dec 2019 1AM 3 min

SA's economy contracts 0.6% in Q3

The economy has contracted by 0.6% in the third quarter. Declines were registered across a number of industries - chief among the laggards: the mining, transport, electricity and manufacturing sectors while trade and government industries registered growth. The country's growth forecast has repeatedly been downgraded for this year and 2020…

3 Dec 2019 1AM 8 min

Rand under pressure as GDP contracts in third quarter

South Africa's local unit weakened after the country's third quarter GDP fell below market expectations. Business Day TV spoke to RMB currency trader Jan Sluis-Cremer, about whether the print has triggered an adjustment in RMB's growth outlook, and whether it supports the case for a downgrade by Moody's in 2020.

3 Dec 2019 1AM 6 min

Telkom cautious on data report findings, recommendations

Vodacom, MTN and Telkom's share prices tanked on the Competition Commission's findings and recommendations on high data prices. Telkom in the meantime is betting on mobile data, the group's interim earnings took a hit due to finance costs related to spend on the mobile business. Telkom in the meantime welcomes…

3 Dec 2019 1AM 7 min

Data prices must be reduced, says Competition Commission

The Competition Commission's two year inquiry into high data costs has been concluded. The final data services market inquiry report confirms that data prices are too high in a market dominated by Vodacom and MTN. The recommendation is that service providers must lower mobile data costs by up to 50%…

2 Dec 2019 4AM 7 min

Factory activity slows in November

The Absa Purchasing Managers Index has edged lower in November. The index fell to 47.7 points from 48.1 previously. This as four of the five subcomponents of the headline PMI recorded month-on-month declines. The slump in business activity dashes hope for any meaningful rebound in the overall index but it…

2 Dec 2019 1AM 7 min

Vukile grows interim dividend by 3.5%

Vukile Property Fund's diversification strategy has paid off. The group has reported a 3.5% rise in its interim dividend to 80.84 cents per share. boosted by a strong performance from its Spanish portfolio together with a continued solid showing from its South African shopping centres. Looking ahead, the group expects…

2 Dec 2019 1AM 5 min

Are consumers spending more than expected on Black Friday?

Black Friday Global data for 2018 in South Africa showed a more than 1 900 percent increase in sales compared to an ordinary day. And a survey by PwC shows that South African consumers plan on spending 36 percent more this year compared to last year. But if that does…

29 Nov 2019 1AM 6 min

Eskom forecasts full-year loss of R20bn

A short lived success for Eskom. The power utility has reported an interim profit of R1.3 billion but looking ahead, the group expects to make a R20bn annual loss. The SOE is citing various factors hampering any sustained upturn... Business Day TV caught up with Eskom CFO, Calib Cassim for…

28 Nov 2019 1AM 9 min