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JSE says concerns elevated about Mexican hammer toe

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Concerns about the quality for white corn imported by South Africa mainly from Mexico following worst drought inside recorded history were raised by the advisory committee to the JSE Limited, which runs the nation’s agricultural derivatives current market.

“One of the agenda items was discussing foreign product and unfamiliar delivery onto JSE agreements,” Chris Sturgess, the commodities derivatives movie director at the exchange, proclaimed in an interview for Wednesday. “There’s a mix. Quite a few millers welcome the product.”

The committee consists of traders, millers along with farmers, according to Sturgess.

In the marketing year this began May An individual South Africa has brought in 516 935 tons of white callus with 97% of that coming from Mexico. The whitened variety of the almond is used as a choice food in the country although yellow corn is principally fed to pets.

? 2016 Bloomberg

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Industry

SA provides R212m in famine relief to farm owners

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JOHANNESBURG – South Africa’s agriculture ministry said on Monday the Treasury has provided R212 mil ($16 million) in drought relief for puppy feed to be given in the last three months associated with 2016 to help livestock farmers hard hit with a devastating drought.

“This drought’s devastating effects are quite palpable and present a risk of community upheavals. While some parts of the country are receiving some rain, the continent in its entirety is receiving below average rainfall,” the ministry said in a statement.

($1 Equals R13.4600)?

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Industry

September retail profits recover slightly, buoyed by means of food

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JOHANNESBURG – South Africa’s retail price sales recovered according to data on Friday, halting a fall from a likely shrinkage although some sectors revealed consumers remained being forced as economic development slowed.

Retail sales became 1.4% year-on-year in Sept ., marginally higher than anticipation of 1% from a Reuters prediction, with food income growing the fastest however ,, crucially, continued contractions within sales of apparel and household items.

“It really is clear that families are battling in order to shake off the effects better inflation and interest rates, both of which are still being acutely felt,” said senior citizen analyst at First Nationalized Bank Jason Muscat.

The Southern region African Reserve Lender (Sarb) has raised costs cumulatively by 200 base points since early on 2016, but looks establish keep them on support again at up coming Thursday’s policy assembly as economic improvement continues to stumble.

Sales associated with furniture, appliances and also equipment contracted simply by 3.8%, a 6 consecutive month regarding contractions. Clothing sales reduced 1.5%.

The slump mirrored a slowdown in household spend on long lasting goods, which the key bank in May said had shortened for a sixth continual quarter, citing small consumer confidence plus poor employment prospects.

Household consumption makes up about 50% for gross domestic product in Africa’ohydrates most industrialised place, but with the economic growth forecast at 3.5% by the Treasury, analysts aware of a contraction after having a surprise 1.2% enlargement in the second quarter.

“The retail sales data caps your releases we’ve observed so far pointing so that you can Q3 growth faltering yet again,” said chief Africa analyst at Ordinary Charted Razia Khan, adding that she required the central traditional bank to keep a grip on its tightening circuit.

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Industry

October producer rising cost of living unchanged

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JOHANNESBURG – South Africa’s company inflation was the same at 6.6% year-on-year around October compared with June, the
statistics agency said on Thursday.

On your month-on-month basis, prices ended up being up 0.9%, soon after falling 0.3%?the previous month, Statistics South Africa said.

 

? Oct Oct Sept Sept
? y/y m/m y/y m/m
Final manufactured goods 6.6 0.9 6.6 -0.3
Intermediate fabricated goods 6.2 -0.6 6.8 0.0
Electricity and water 8.5 -4.8 11.2 -24.5
Mining and quarrying 11.7 -2.8 16.2 0.7
Agriculture, forestry along with fishing 11.1 -0.2 14.5 -0.7
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Industry

Cold

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JOHANNESBURG – Imports of cold-rolled steel products, particularly from Cina, are hurting South African producers, initial findings from a community trade agency proved on Monday, perhaps paving the way to get more import duties.

Domestic precious metal producers have stated China, which provides half the world’utes steel, has been throwing excess output in your community as consumption in the home wanes and, these types of low-priced imports have resulted in minimal sales volumes with the domestic firms.

The Global Trade Administration Commission payment of South Africa (ITAC) introduced an investigation in June into whether to can charge safeguard duties, also known as emergency tariffs, with imports of cold-rolled steel from your number of countries which includes China, at the inquire of steel manufacturer ArcelorMittal South Africa.

South Africa possessed previously said it can be considering imposing emergency tariffs on certain iron and steel imports in a filing anywhere int he planet Trade Organisation.

Pretoria smacked a 10% tariff on imported steel during August last year, nonetheless the emergency tariff, which would not apply to imports of stainless steel or rubber electrical steel, would provide much greater protection.

ITAC said in its file released on Monday that the steel field had suffered “serious injury” as sales along with output volumes were lost and market share declined after a surge in precious metal imports.

But it did not impose provisional procedures as it took into mind the possible positive benefit of the tariff improve introduced in May last year.

Its report was based on data from ArcelorMittal Nigeria, which accounts for 83% associated with local production of the particular affected goods.

Emergency data plans are used against a great unforeseen surge of imports this threatens domestic manufacturers. They are usually imposed for 3 years and there is no upper limit on how high the duty can be.

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Industry

Aluminium’s sheen is no more than a Chinese trick: Gadfly

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Something very strange is being conducted in China’s metal markets.?Buyers seems to be behaving the way Oughout.S. shoppers do at this time of year: lining up up and pushing to get their hands on many product before anyone else can get a chance.

Aluminium has been around in a state of backwardation about the Shanghai Futures Exchange for many months. That problem — where contracts for near-term delivery cost more as compared with longer-term ones — is normally described as indicator of small markets and standard demand. Sure enough, deliverable options and stocks of aluminium during exchange-monitored warehouses are thumping along close to their own lowest levels during nine years — however a demand-surge story still?doesn’t make a lots of sense.

Aluminium’s seemingly perpetual global glut?has made it the hardest performer of the significant London Metal Trade metals this year, as well as China is still filled, with about?3 trillion metric tons of creation capacity?being put in this year, according to Bloomberg Data analyst Yi Zhu. Even those people declining exchange ranges tell only a limited story: Aluminium, like copper, is favored as collateral around China’s bonded-warehouse trade, so much of that tonnage may just be heading to shadowier locations.

China aluminium generation capacity added this current year: 3 million full tons

A better explanation for a behaviour of aluminium’ersus futures curve sits not with demand, however supply. For the past few months China has been sculpting rules on launching commodities onto pickup trucks so as to prioritise domestic motion of coal, which happens to be in short supply as the land heads into winter months and the traditional Lunar Year lull in industrial hobby.

It’s not easy so that you can directly test the effect of these trucking rules, but again, you can get an idea from looking at these futures curves. In case the key factor in shrinking metal markets appeared to be delivery bottlenecks rather than a simple shortage, you’d expect to have the cheaper, heavy metals to be suffering most. A ton of metal costs about $1,900 and takes up with regards to as much space seeing that three tons of copper,?which is worth Much?as much.?That would are inclined to put it further during the queue relative to denser, costlier commodities.

Sure adequate, aluminium’s short-term premium is among the largest among China’verts major commodities, while precious metals and nickel — the costliest major business metal after metallic — are trading in contango, by using longer-term contracts costing more.

That’s probably an improved guide to where costs are going. Once China’utes winter coal?scarcity starts to ebb, aluminium’s short lived sheen could go out real fast.

This ray does not necessarily represent the opinion of Bloomberg LP and its homeowners.
? 2016 Bloomberg L.P
?

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Industry

Digital debit sequence management on the rise

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The use of digital atm order management expert services, offered by First Nation’s Bank (FNB) and Absa, is easily gaining traction between customers.

FNB has listed an 87% migration of debit order disputes and quit payments to electronic channels within with three months of introducing the particular service – which allows customers to dispute and place end payments on what appear to be unauthorised debit purchases amounting to less than R200 – by way of its online banking, request and cellphone savings platforms, said He Prozesky, CEO of Value Remedies at FNB.

He said almost all disputes reported by just its customers are through cellphone banking, an attractive trend as cell phone banking is available regarding all mobile phone kinds.

Absa, the first of the big four banks to add the functionality during October 2016, has also viewed an increase in usage involving its customers. Its digital service will allow customers up to 30 days to slow unauthorised debit requests and receive an instant refund, as well as avoid debit orders via going off their balances in future.

“On average, Absa gets 8.7 trillion debits – EFTs and non-authenticated early bank orders (NAEDO) – per month intended for processing against Absa transactional balances with a current development of 9.1% overdue and 1.7% quarrels,” Marius de la Rey, leader of customer programs, distribution and insurance coverage at Absa Barclays Africa retail store and business checking.

Ombudsman for Banking Providers Clive Pillay previously told Moneyweb that disputed debit purchase complaints to his particular office increased by simply 54% over the past year. ?

Data from your Payments Association connected with South Africa (PASA) shows that commonly 31 million bank orders amounting to R72 thousand are processed monthly, of which 1.Two million are unpaid together with 170?000 will be disputed. ??

Both banks released the functionality in the bid to establish customers and restrain debit order misuse through non-mandated debit get collections.

“Not everyone checks their accounts consistently, so by right away notifying customers that any debit order has taken place on their account as well as the amount along with the service provider name, buyers can quickly act whenever they perceive the financial transaction to be unauthorised,In Prozesky said of FNB’s charge order transaction notifications. ?

According to de la Rey, it’s not possible to clearly discover all unauthorised or maybe “scam” transactions in the control system, which perform across all the lenders and the two diverse payment streams.

“We impulse customers to become more aware about protecting his or her personal information when controlling their day-to-day and month to month tasks such as the check of debit requests,” he said. ?

Customers exactly who dispute debit order placed in order to manage cash flow run the risk of losing out on insurance plan pay-outs in the event of a claim, your dog warned. He added that an inconsistent payment history or great dispute ratio within a person’s bank account may perhaps negatively impact in which person’s risk shape. ?

Although banks act in debit order controversies on behalf of their customers, clients must contact agencies directly to make alternate payment arrangements and also terminate contracts, Prozesky proclaimed.

A Nedbank spokesperson told Moneyweb which the banking is working away at offering its consumers online debit sequence management facilities, having said that no confirmed night out has been set for inclusion.

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Industry

S&P’s downgrades Eskom further towards junk territory

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Standard & Poor’s Global Reviews on Friday trim South African energy utility Eskom’s credit ratings a further notch within subinvestment, raising concerns any country’s sovereign rating would probably also be dragged in to junk status.

S&P’vertisements, which has South Africa’utes debt on the best investment level which has a negative outlook, cut Eskom’s long-term corporate consumer credit rating to BB from BB+, not one but two steps below the choice threshold.

Eskom’s 2026 relationship weakened on the news, together with the yield adding Two.5 basis factors by close connected with trade.

The ratings organization flagged financial pressures experienced by Eskom due to the unclear tariff path presented by the utility’s on-going court case against the country wide energy regulator as a source of the downgrade.

In July a South Camera court struck all the way down some of the tariff grows granted to Eskom with 2016.

S&P’s is due to article its decision with South Africa’s sovereign status next Friday with Dec. 2.

Some analysts say the move to minimize the utility’s status could be a precursor to your downgrade of the sovereign.

“Looks like a major move ahead of next week. Maybe zinc improves the chances of a limit end next week as a result of interdependence of parastatal ratings together with the sovereign,” said London-based Africa expert at Nomura Peter Attard Montalto.

Eskom claimed it was disappointed from the decision by S&P’verts, but was certain that its balance piece put it good stead.

“That one notch ratings reduce or eliminate will not have a material influence on Eskom’s funding strategies for the financial season ending 31 Mar 201,” the utility mentioned in a statement.

Eskom, Southerly Africa’s sole electric power supplier, is happy to build new fischer stations to generate a different 9.6 gigawatts of nuclear power, nonetheless has faced mounting opposition to the strategy, with critics saying that it would be unaffordable with an estimated price of as much as 1 trillion rand ($71 billion).

Ratings agency Fitch on Saturday affirmed South Africa’ohydrates investment-grade credit rating at one notch above ‘junk’ upon Friday but improved its outlook that will negative from constant, warning that governmental risks could harm growth.

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Industry

Big four finance institutions to see rise in predicament loans – Moody’s

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JOHANNESBURG – South Africa’s substantial four banks will see a rise in problem financial loans in the next 12 that will 18 months as the economic climate struggles to grow, but this poses only a average risk to revenue, ratings agency Moody’vertisements said on Tuesday.

Sluggish fiscal growth, forecast by the government to average 0.5% this year, is going to pose challenges pertaining to FirstRand, Standard Bank, Barclays Africa Group and Nedbank.

“The subdued South African economic climate will restrain their particular lending growth and earn it harder for applicants, especially households, to be able to service their unsecured debt repayments,” said the Moody’s vice president Nondas Nicolaides.

Rising rates and inflation over the central bank’s concentrate on of 6% will also expose banks to higher fall behind risks, the agency explained.

Moody’s said it should expect non-performing loans ratios inside banking sector to boost to around 4% by end-2017 from 3.2% in June 2016, that will dampen profitability the way it leads to higher provisioning rates.

“FirstRand Bank is best-placed to deal with the weak managing environment among it is local peer lenders,” Moody’s said.

“FirstRand has the highest overall provisioning insurance coverage for non-performing loans, the highest capital base and powerful earnings generation.”??

South Africa’azines government last month minimized its GDP advancement forecast for this calendar year from 0.9% estimated in February, together with cut its approximate for 2017 to 1.3% out of 1.7% previously.

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Industry

Pick n Compensate loses exclusivity bid

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It’s no secret that SA’s full price sector is in the doldrums, by using few signs this fortunes may before long turn around.

The growth in buyer spending and self confidence remains subdued as rising living prices and interest rates carry on and erode disposable money.

This is not good news designed for retailers, whose store sales are muddling around. Although retail sales and profits rose by a better-than-expected A single.4% in September, lastly quarter figures lowered by 0.2%, mathematically SA.

To grow market share together with margin (a key full retailers use designed for profitability), grocery stores have ramped the level of discount activity, absorbed climbing expenses and input costs to keep foodstuff prices low, together with rolled out more full price space.

Others have found shelter in the archaic procedure of exclusive rentals C a long-term agreement amongst an anchor retailer and landlord, making it the only retailer inside of a centre selling certain goods to protect it’s turf.?

Massmart vs Pick n Pay

The latest outstanding leases battle is definitely between Walmart-owned Massmart and Decide on n Pay, along with both retailers slugging against eachother at the Constitutional Court.

The make any difference is about whether shopping retailer Pick s Pay is eligible for prevent Massmart’s Game shop, through an interdict, from selling fresh foods at the Capegate Browsing Centre in Cpe Town.

Pick n Spend and Checkers have an exclusive lease agreement with the mall’s owner JSE-listed Hyprop Investments. ?

However, nearly four years back, Massmart expanded?Game’s store strategy, which typically operated?as a basic merchandise retailer, to provide food items as part of their offering under the model Fresh. This didn’t sit well with Opt for n Pay.

Pick n Pay initially went along to the High Court on the basis that Game’s foods offering was a good unlawful interference in its exclusive lease understanding with Hyprop.? The court decided in Pick s Pay’s favour. An attractiveness at the Supreme Court associated with Appeal was launched by way of Massmart, which was dismissed.

On Exclusive, the Constitutional Court dismissed Pick n Compensate an interdict to stop Sport from selling fresh food at Capegate. This gives you an opportunity for Game to remain selling fresh food.

A whole of 82 Game stores offered food items under the Fresh company as of June C ?a limited offering when?weighed against competitors Spar, Shoprite in addition to Woolworths.

The judgement, mainly composed by Justice Johan Froneman, has far-reaching results about the controversial using of exclusive lease accords.

“Masstores’s [Game] trading as a common supermarket does not deprive Pick n Spend of its entitlement to continue trading as a store in the shopping middle.

“There may have been a starvation of part of Decide n Pay’s trading interest, namely its exclusivity, but- Masstores did not usurp any exclusive right of Pick and Pay and suitable it as its own,” said Froneman.

Pick n Pay back excluded Hyprop (the local mall owner) from the question but pursued a great interdict application against Massmart on the basis that it interfered with its contractual relations.

?”Why must Pick n Pay back not enforce the suitable at its source in contact? Or at least have to show that Hyprop breached the contract understanding that its breach could hardly be remedied by utilizing ordinary contractual treatment options.”

The court explored the opportunity of developing a law regarding interference with contract relations which is “a somewhat undeveloped aspect of some of our law” C? but it decided to not do so.?

Froneman said the actual purpose of the law is usually to protect free competitiveness and not to undercut it by making the idea less free.

Competition Commission

Exclusive rental agreements are also part of any probe by the Competition Commission rate in its on-going inquiry in the grocery retail sector.

The inquiry, which was 1st announced in May well 2016 by Economic Progression Minister Ebrahim Patel in his spending budget vote, will look at the dynamics from the grocery retail segment and competition involving retailers.

If the Competition Commission’s referrals to Patel conclude that particular retailer engaged?inside anti-competitive behaviour, then the fee in terms of the Competition Act can investigate which enable it to refer the matter to the Competition Tribunal for further justice.

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