TUESDAY, 11.00AM:
BUSINESS confidence in South Africa took a further dive in August, with the SA Chamber of Business business confidence index falling a further 0,3% after a 0,2% drop in July.
Sacob said the results reflect the continuing slowdown of the economy and disappointment following the Reserve Bank’s reluctance to cut the interest rates. Sacob also expressed concerns over growing doubts about the strength of the government’s commitment to its macro-economic Gear strategy, as well as disquiet over the apparent inability of local and provincial authorities to control their spending.
The latest business confidence index shows a worsening in nine out of the 13 indices used to measure it — including a weaker rand, higher inflation, lower retail sales and manufacturing production, fewer new car sales and a rise in unemployment. Only marginally lower short-term interest rates, higher share prices and rising merchandise imports reflected positively. However, export-led manufacturing confidence continued to be buoyant, though at slightly reduced levels.
BUSINESS BRIEFS
DRC, SEYCHELLES JOIN SADC THE Democratic Republic of Congo and the Seychelles were on Monday admitted as members of the Southern African Development Community, bringing membership in the regional economic bloc to 14 countries.
NUMSA CALLS OFF STRIKE THE National Union of Metalworkers of SA has called off the 24-hour national strike planned for Tuesday after the Labour Appeal Court failed to decide on the strike’s legality. The absence of a court decision left uncertainty over whether striking workers will be protected from dismissal. The union appealed to employers not to take punitive action against workers who strike today, unaware the strike was called off. The strike was called in the motor retail sector in support of pay demands in the motor manufacturing sector.
STALS LIFTS BANK FOREX LIMITS RESERVE Bank governor Chris Stals has taken another step in the gradual ralaxation of foreign exchange controls by announcing the imminent lifting of limits on forex holdings by authorised foreign currency dealers. The step is intended to ease the bank’s withdrawal from the forward cover market, and follows a call by the IMF for the bank to accelerate its withdrawal from forward cover. It is feared the move could put new pressure on the rand as banks rush to convert rand holdings to foreign currency.
MDC BOSS’S SECRET BONUS THE Mpumalanga Development Corporation’s former MD, Patrick Mogorosi, received double and/or irregular payments totalling R369 347, according to a special report of the auditor-general tabled in the provincial legislature on Monday. In the same report, the auditor-general reported overspending and unauthorised expenditure totalling R139,9-million in the former homelands of KwaNdebele and Kangwane, both now absorbed into Mpumalanga.
SAUDIS MAY BUY ROOIVALK DENEL’s recent demonstration of the Rooivalk attack helicopter to Saudi Arabia could lead to an order for 30 or 40 of the aircraft at between R70-million and R80-million apiece, according to defence analyst Helmoed Heitmann. Meanwhile, the National Conventional Arms Control Committee said on Monday SA had sold weapons and military technology valued at R590-million in the first six months of this year. Chairman Kader Asmal said several big deals are still in the pipeline, with particular interest among European countries in advances by SA companies in electronics.