1) In Africa, a Ticking Debt Bomb Threatens Global Explosion
The new airport serving the Angolan capital of Luanda was intended to be a bright and welcoming symbol of the former Portuguese colony’s renaissance—a counterpoint to the three-decade civil war that ended in 2002.
2) South Africa Business Confidence Drops to Record Low on Lockdown
South African business confidence plunged to the lowest level in 45 years due to the impact of the coronavirus pandemic, with companies even more pessimistic now than when disinvestment from the country over its apartheid policies started gaining momentum more than three decades ago.
3) HIV Raises Coronavirus Death Risk, South African Data Shows
People with HIV are almost three times more likely to die if they contract the coronavirus than those with no co-morbidities, irrespective of whether they are taking anti- AIDS drugs, an analysis of South African data shows. The finding was made by the Western Cape Department of Health, which oversees medical services in the province with about two thirds of South Africa’s almost 53,000 confirmed coronavirus infections.
4) Rand Set for Best Streak of Gains in 14 Years
The rand headed for an eighth day of gains, the longest streak since Nov. 2005, as the dollar extended losses before the Federal Reserve policy meeting later Wednesday. South Africa’s currency has strengthened below the key 50% Fibonacci retracement from April’s record-weak level. A sustained break below that line would set up a move to the 61.8% retracement at 16 per dollar.
5) Paris Club Debt Relief at $1.1 Billion After Four More Waivers
The Paris Club suspended debt payments for four more countries, bringing the total waivers to help battle the human and economic toll of the coronavirus pandemic to $1.1 billion for 12 nations. The club, which groups 22 mostly wealthy country creditors, announced a suspension in payments for Pakistan and Ethiopia, the two biggest economies to get relief so far, as well as Chad and the Republic of Congo on Tuesday.
6) Edcon Asset Sale Attracts 15 Interested Parties, Bus. Day Says
There are 15 interested parties for the sale of South African retailer Edcon’s assets, Johannesburg-based Business Day reports, citing the ailing company’s administrators. * Not all of the 15, which haven’t been identified, are conducting due diligence exercises and it’s not clear which of Edcon’s two units is the most sought after by the potential buyers, according to the newspaper * NOTE: June 9, Edgars Owner Looking for Buyers to Rescue South African …
7) South African Stocks Turn Lower as Sasol’s Slump Deepens
Benchmark South African stock index is 1% lower as of 11:37am in Johannesburg, wiping out earlier advance of as much as 0.6%, as decline in shares of fuels and chemicals producer Sasol deepens. * Sasol drops as much as 18%, steepest slump in seven weeks, as oil price weakens. Shares had more than doubled during 10-day rally that ended on Tuesday; Sasol is biggest drag on the benchmark index Wednesday, -14% as of 11:36am.
8) Rising Demand for South Africa Debt Sale Signals Fiscal Comfort
Any lingering concern that South Africa’s government would have to borrow at higher costs to bridge its deficit eased at Tuesday’s debt sale. Traders placed 16.9 billion rand ($1 billion) of orders, or 2.8 times the 6.1 billion rand of securities on sale, at the weekly Treasury auction, central-bank data showed.
9) South African IT Powerhouse acquires 3 direct competitors
Switchcom now offers security solutions from Mikrotik to Hikvision.
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