House price growth is expected to resume its slowing trend this year due to slower economic growth and the lagged impact of last year’s interest rate hikes, a property strategist said on Monday. John Loos, property strategist at FNB commercial banking, said that a more sustained strengthening was only anticipated from 2008 on.
The robust performance of the South African economy during the past three years paved the way for significant employments gains, according to the South African Reserve Bank’s (SARB) quarterly report released on Thursday. Employment growth in the public sector marginally outpaced employment gains in the private sector.
South Africa should look to the lessons of the United States housing correction to avoid poor lending practices locally from knocking economic growth and stability, according to market analysts. "South Africa … can be criticised for the less prudent lending practices banks have adopted lately," analysts at Econometrix Treasury Management said.
South Africa’s network provider, Vodacom, assured its customers on Monday that the strike by its workers belonging to the Communications Workers Union (CWU) will not disrupt operations. Workers started picketing on Monday at the company’s offices in Midrand, demanding recognition of their union.
The JSE was stable during midday on Monday tracking the balanced tone of the Asian markets in the absence of market-moving news on the local front. At 11.57am, the all-share index was up 0,34% slightly above the 26 000- points mark.
The European Union-funded Risk Capital Facility 2, launched through South Africa’s Department of Trade and Industry, has provided â,¬50-million (about R450-million) to facilitate broad-based black economic empowerment (BEE) in the small-business sector. The cash will be disbursed over a three-year period.
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/ 19 February 2007
South Africa’s grain industry body, Grain SA, on Monday slammed the alleged price-fixing of bread, saying it is "a shame that certain large food companies" are allegedly involved. The Competition Commission has launched a case against two food companies, accusing them of running a bread cartel in the Western Cape.
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/ 19 February 2007
The JSE was slightly firmer at midday on Monday as stronger gold and platinum prices sparked demand for resources stocks. News that a large portion of heavyweight gold producer AngloGold Ashanti might be bought by Russian’s Polyus added to the positive sentiment.
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/ 1 February 2007
A five day-long strike by about 2 000 workers at the Modikwa platinum mine is costing R5-million a day with between 5 000 and 6 000 tonnes of ore lost each day, African Rainbow Minerals’ spokesperson said on Thursday. Pieter Rorich said both the management and the National Union of Mineworkers were still locked in negotiations over some of the issues raised by the union.
The South African Transport and Allied Workers’ Union (Satawu) has threatened a strike against South African Airways (SAA) in protest at the company’s planned retrenchments, the union said on Monday. South Africa’s national carrier announced in November last year that it planned to axe 1Â 000 employees to curb high operating costs.