South Africans are set for some relief in September, with a fuel price reduction on the cards due to a stronger rand and lower oil prices. Civil action organisation Outa meanwhile, has raised concerns that the government might not pass the savings to motorists, and instead use it to fund freeways. Business Day TV discussed this with Outa’s CEO, Wayne Duvenage.
Emira Property Fund has posted a near 4% increase in annual distributable earnings, and lifted its full-year dividend by 1%. The REIT says the steady performance of the local industrial and retail sectors countered the strained office market during the period. Business Day TV unpacked the performance in greater detail with CEO Geoff Jennett.
“Forecasting: the attempt to predict the unknowable by measuring the irrelevant; this task employs most people on Wall Street.” The words of Jason Zweig, author of the Devil's Financial Dictionary, are partly true of many so-called investment experts. We hear a lot from financial forecasters every January, as strategists prognosticate on what's in store for markets for the year ahead, even though decades of research confirms the prediction game is a pretty fruitless one. Often economists get it wrong but when they get it right consistently, in a world that is so volatile after Covid, its worth stopping to acknowledge the achievement. And so it is with Bureau of Economic Research Chief Economist, Hugo Pienaar, who received the South African Economist of the Year award for his forecasts in 2021. Entrants for the award submit monthly forecasts on 8 economic variables and the winner is the economist whose forecasts were consistently closest to the actual figures. Michael Avery talks to Hugo Pienaar, Chief Economist: Bureau of Economic Research
Seriti Resources plans to acquire a majority stake in Windlab Africa for R892 million, as the coal miner looks to diversify its energy business while also decreasing its carbon footprint. Business Day TV spoke to Mike Teke, CEO of Seriti for more on the merits of this deal.
Emerging market currencies had a bad start to the week on the back of weak Chinese data. Some investors are however still betting on these economies, saying they provide some comfort as developed economies bear the brunt of rising inflation and slowing growth. Business Day TV spoke to Gemcorp’s Chief Economist Simon Quijano-Evans for more detail
BHP has delivered bumper profits. The world's biggest miner by market value has posted a 54% jump in headline earnings per share, driven by surging commodity prices. Business Day TV unpacked the numbers with Investment Analyst Seleho Tsatsi.
Join Independent Analyst Loyiso Mpeta, as he takes us through what the charts are saying about the gold price and mid-tier gold counters like DRD Gold and Pan African Resources.
Absa has more than doubled its interim dividend to R6.50. The payout follows a 27% jump in the lender’s headline earnings per share, boosted by a better than expected performance by the local economy. Business Day TV caught up with Absa’s Financial Director Jason Quinn, for more detail.
Thungela Resources hit the lights out at its half-year mark. The coal miner’s profit rocketed from R351 million to R9.6 billion as energy prices surged, in the wake of the Russia-Ukraine conflict. Business Day TV spoke to CEO July Ndlovu for greater perspective on the results and its sustainability moving forward.
The global payments landscape is shifting rapidly with the rise of banking as service, open banking, digital central bank currency trials, cryptocurrencies and I think it’s probably one of the most exciting times to be in the payments space, once considered the boring dumb pipes of our economic worlds, this is certainly not the case anymore. The South African Reserve Bank will launch its new Rapid Payments Programme (RPP) later this year. In simple terms, it will give people the ability to make real-time payments using simple identifiers – like mobile numbers or e-mail addresses – to make transacting almost instantaneous. It is also expected to significantly speed up payment processing times. And In June 2021 the South African Reserve Bank (SARB) requested PASA to facilitate the co-design of a new Payments Industry Body (PIB) by an inclusive community of payment system stakeholders To talk about this Michael Avery is joined by Ghita Erling, CEO of Payment Association of South Africa (PASA); Jan Pilbauer, CEO of Bankserv and Karen Nadasen, CEO of PayU South Africa
This week’s market rally came to a screeching halt in the US overnight and has followed through into Asia this morning but not before the JSE recorded its best day in a month yesterday. Shares in MTN rose the most since January after the company said robust demand for its data and fintech services helped core profit rise by double digits in its half-year to end-June. But the juicy action was the TRP drying up Rains bid for a potential R40bn tie-up proposal with Telkom, ordering the mobile network operator to withdraw the announcement as it had not sought prior approval. The slight easing of inflation readings this week had driven global stocks higher and capped a rising dollar , until a string of Fed speakers put paid to expectations of the central bank going slow on further policy tightening. The S&P 500 closed down 0.07% and the Nasdaq Composite lost 0.58% overnight, though the Dow Jones Industrial Average rose 0.08%. In commodities, Brent is still on track to gain more than 4% this week, while Bitcoin , the leading cryptocurrency, shaved some overnight gains and lost 1.22% to trade at $23,916. To put the week in perspective Michael Avery is joined by Warwick Lucas, Head of Galileo Securities; Annabel Bishop, Chief Economist: Investec & Raymond Parsons, Professor: School of Business and Governance at Northwest University
MTN has posted a neat 47% jump in interim headline earnings per share, as Africa’s largest mobile operator benefited from increased demand for its data and fintech services. Business Day TV unpacked the earnings report with Dobek Pater, Telcos Analyst at Africa Analysis.
The South African rand has made a comeback. The local unit is trading near a 5-year high, mainly been driven by the softer-than-expected US inflation data. Business Day TV discussed the moves playing out in the currency scene with RMB’s Head of FX Execution Matete Thulare.
Transnet is back in the black after posting an annual profit of R5 billion, but the African Rail Industry Association says maintenance backlogs and a growing salary bill puts the rail parastatal's sustainability at risk. Business Day TV spoke to Mesela Nhlapho, ARIA CEO for more detail.
Nedbank was the first out of the blocks yesterday with an eye-catching 81% increase in its dividends as all eyes are on local bank earnings this month. Retail credit applications rejections are at an all-time high amidst historically high application levels. SA Banks are likely to continue to focus on originating secured credit considering stable asset prices in the residential housing market and increasing risks to unsecured credit portfolios as interest rates increase ahead of expectations. Capital is not an issue for SA banks. Confidence and growth (or the lack thereof) are! Michael Avery is joined by Nolwandle Mthombeni, Senior Banks Analyst at Intellidex & David Buckham, MD at Monacle
Nedbank has reported a 26% rise in half-year headline earnings per share, mainly driven by a strong showing by most of its units. The performance has translated into an 81% surge in the lender’s dividend to R7.83, which is above pre-pandemic levels. Business Day TV discussed the company’s half-year performance with CFO Mike Davis.
Mpact had a bumper first half. The group's headline earnings per share jumped by just over 31%, thanks to robust demand for packaged goods coupled with higher selling prices. Business Day TV spoke to CEO Bruce Strong for more detail.
How do we mind the gap and fix the mix when it comes to gender and diversity in private equity? Women are significantly underrepresented among the investment decision-makers at private equity and venture capital firms, as well as in the leadership of companies that receive this investment capital. The finance industry says it wants more diversity at all levels, but private equity has proved stubbornly slow to change. Women hold only 10 percent of all senior positions in private equity and venture capital firms globally. Women made up about 12.7% of senior employees at North American private equity funds last year, less than half the finance industry average, according to research by Preqin and I can’t get my hands on the number for SA but I’m sure it’s in the ballpark. Even with junior levels close to gender parity, data show that few women move up the ranks. Firms are often tightly held partnerships with senior managers who oversee fund life cycles that can last more than a decade. And while strides are being made in South Africa the pace is still quite slow. Michael Avery is joined by Dinao Lerutla, Managing Partner at Maia Capital Partners (a debt impact investing boutique fund manager based in Johannesburg; Daniella Keet, Head of Private Equity at FNB Commercial; Janice Johnston, Chair of 100WF in SA (and a private equity professional) and Langa Madonko, board member at SAVCA
OPEC+ has agreed to raise its oil output goal by 100,000 barrels per day next month, marking one of the group’s smallest increases on record. Business Day TV spoke to Raymond Phillips, Commodities Trader at RMB for more detail on what the decision means for the oil market.
Despite tepid domestic growth and the central bank's hawkish stance weighing on consumers’ pockets, South Africa's banks are performing well. Business Day TV spoke to Senior Banks Analyst at Intellidex, Nolwandle Mthombeni for her view on the sector.
Sappi has posted a strong third quarter performance, bolstered by strong global demand and pricing momentum. The paper and packaging company's earnings before interest, taxation, depreciation and amoritisation rose to a record $371 million from $145 million previously, and the firm expects the robust pricing and demand environment to continue into the next quarter. Business Day TV unpacked the performance with CEO Steve Binnie.
TymeBank is buying SME-funder Retail Capital to make a big push into business banking. The deal, which is subject to regulatory approval, will allow TymeBank to to expand its offering to entrepreneurs to include working capital finance. Business Day TV spoke to TymeBank’s CEO Coen Jonker about the acquisition.
Bain & Co has been banned from tendering for UK government contracts for three years. The ban follows pressure from former UK MP Peter Hain who has said that the global consulting firm must be held accountable for its role in state capture in South Africa. Business Day TV spoke to Hain for more detail.
Royal Bafokeng Platinum has halved its interim dividend, after higher costs and lower prices weighed on profit. The miner says it remains cautious of the current operating environment. Business Day TV unpacked the results with CFO Rotshidzwa Manenzhe.
The JSE benefitted from market volatility in its first half. Increased trading activity helped Africa's largest stock exchange grow revenue across its business segments, with top-line growth registering an 11% increase and headline earnings per share growing by 29%. Business Day TV spoke to CEO Leila Fourie for her take on the performance.
The issue of tariffs was thrown into stark relief yesterday when the DTIC failed to extend tariffs on chicken imports as food costs rise. And its interesting to note against the backdrop of a recent tariff application by the SA Tyre Manufacturers Conference (SATMC) to ITAC for the imposition of additional duties on tyres imported from China. No doubt this will concern every South African motorist and the taxi, bus and trucking sectors, which could be hard hit if additional duties are imposed on imported tyres. The four large domestic tyre producers – Continental, Bridgestone, Goodyear, and Sumitomo, collectively known as the SA Tyre Manufacturers Conference (SATMC), maintains that its application to investigate the unfair trade caused by dumped imports of passenger, truck and bus tyres imported from China, is part of a sustained effort to rescue the local tyre industry and the livelihoods dependent upon it. SATMC was invited to participate on this panel but declined. Joining Michael Avery for this discussion is Charl de Villiers, Chairperson at Tyre Importers Association of South Africa; Donald MacKay, CEO and founder of XA International Trade Advisors and Theo Malele, Spokesperson of National Taxi Alliance
Greylist has black and white economic outcome. I’m pleased to see South Africa’s looming potential greylisting by the Financial Action Task Force (FATF) is starting to receive the attention it deserves. National Treasury has certainly upped the ante publicly along with several respected CEOs, including Sim Tshabalala of Standard Bank and Hendrik du Toit of Ninety One. One wonders where this issue sits on the president’s priority list (I suspect somewhere near the bottom) but the consequences for the country, local businesses and ordinary South Africans would be dire, increasing the cost of doing business, weakening the country’s investment attractiveness and further cementing our decline towards ochlocracy. This past week the Prudential Authority (PA) released its second banking sector risk assessment. It surveyed 34 lenders active in SA, including five large banks, nine medium to small locally controlled banks, 17 foreign-controlled banks and branches of foreign banks, and three mutual banks. To talk about this Michael Avery is joined by Rebecca Thomson, Senior Associate at Allen & Overy’s Litigation, Arbitration and Dispute Resolution practice and Paul O'Sullivan, founder of Paul O'Sullivan & Associates (the leading experts in Forensic & Fraud Investigation in South Africa)
Join Independent Analyst, Loyiso Mpeta as he shares technical analysis on Meta Platforms and Bank of America