1) Eskom’s Risk Premium Eases as Treasury Offers Bailout Conditions
Credit default swaps for Eskom Holdings SOC Ltd., South Africa’s state-owned power company, are trading near the cheapest level in almost three years relative to the sovereign risk after the Treasury published proposed conditions for funds to bail out the utility.
2) Boosts for Richemont, Iron Ore Miners Lift South Africa Stocks
South Africa’s benchmark FTSE/JSE Africa All Share rises for the first day in three as optimism toward the U.S.-China trade talks buoys risk assets. * NOTE: U.S. Weighing Currency Pact With China as Part of Partial Deal * Index gains 0.3% by 9:44am in Johannesburg, boosted by gains in four of the indexes’ biggest companies. View Share Prices For Richemont.
3) Surprise Improvement in South Africa Business Mood Before Budget
South African business confidence increased from the lowest level in more than three decades in September and may continue to rise if the nation’s upcoming medium-term budget sets the stage for an economic recovery. A sentiment index compiled by the South African Chamber of Commerce and Industry climbed to 92.4 in September after falling to 89.1 the previous month, the business group said in an emailed statement Wednesday.
4) South African Manufacturing Contracts for Third Month in August
South African factory output shrank for a third straight month in August. Manufacturing production declined 1.8% from a year earlier, compared with a revised 0.7% drop in July, Pretoria-based Statistics South Africa said Thursday in a report on its website. The median estimate of 11 economists in a Bloomberg survey was for a 2.5% contraction. Output increased 1.3% in the month. Key Insights.
5) Naspers, Tencent Among Investors Eyeing Stake in Pine Labs
Tencent, Naspers and Caisse de Depot et Placement du Quebec are among the potential investors who are in talks to take a stake in Pine Labs, Economic Times reported, citing three unidentified people. * Pine Labs hired JPMorgan to manage the process * Pine Labs, Naspers unit PayU and CDPQ representatives declined to comment to Economic Times; Tencent’s didn’t immediately respond to ET * To view the source of this information click here. View Share Prices For Naspers Ltd.
6) South African Treasury Sets Conditions for Eskom Bailout Funds
South Africa’s National Treasury set conditions for 59 billion rand ($3.9 billion) of bailout funds to keep debt-laden power utility Eskom Holdings SOC Ltd. from financial collapse. Amounts of 26 billion rand and 33 billion rand will be allocated in portions to Eskom in the 2020 and 2021 financial years on dates determined by the finance minister, according to the Special Appropriations Bill, the Treasury said in a presentation on its website Wednesday.
7) Mondi Drops After ‘Soft’ 3Q Numbers, Peers Feel Pressure
Shares of Mondi fall as much as 3.4% after a soft 3Q with Ebitda at EU383m missing consensus estimates by 5%, Jefferies (buy) says. * Jefferies says investor focus will likely be on 2020 earnings, and cuts its 2020 Ebitda estimate by ~7% given softer macro and pricing ** With 4Q outlook implying somewhat lower Ebitda q/q, broker trims Ebitda for this year with ~1%.
8) Bank of America Says Emerging-Market Currencies Are Overvalued
“Most major emerging-market currencies appear overvalued on our models, i.e. their current accounts are worse than they should be in equilibrium,” Bank of America analysts David Hauner and Claudio Irigoyen say in a note to clients.