1) FirstRand Starts New Bonus System for Managers Stung by Pandemic
FirstRand Ltd. started a new incentive program to retain top managers after the economic fallout of the coronavirus pandemic hit earnings and sank share-based rewards. The ripple-effect of the Covid-19 outbreak could cause managers to lose out on their share awards for years, possibly resulting in “talent leakage,” Chairman Roger Jardine said in the Johannesburg-based lender’s annual report.
2) South African Factory Output Falls More Than Expected in August
South African factory output contracted for a fifteenth month in August even as coronavirus-lockdown measures were eased allowing activity to resume in the sector. Output fell 10.8%, compared with a revised 10.2% decline in July, Statistics South Africa said Monday in a report published on its website. The median estimate of seven economists in a Bloomberg survey was for a 7.8% drop. Production rose 3.6% in the month.
3) Nuclear Plants, Cannabis Seen Spurring South African Revival
A draft plan aimed at reviving the South African economy in the wake of the coronavirus provides the first hints of how programs ranging from infrastructure investment to improving public transport will be funded. The government began drafting the plan in conjunction with business and labor groups several months ago in a bargaining forum known at the National Economic Development and Labour Council.
4) Vodacom Wins Interim Order to Keep Lesotho Operating License
Vodacom Group Ltd. has been granted an interim court order that prevents Lesotho’s regulators from revoking its operating license and imposing a fine of 134 million rand ($8 million), the TechCentral website said. Vodacom said the court has instructed the Lesotho Communication Authority to appear on Oct. 23 to argue why the order shouldn’t be made final, the website reported.
5) Cool Heads Are Set to Appraise Hot Commodities
Commodities just hit a 2-year high for the spot index even as a procession of signs suggest the pandemic is worsening, especially in Europe and parts of the U.S. Investors are in line for a comprehensive check on the sector’s vital signs this week that could help them determine the next moves.
6) Volatility Curve Flags Turmoil in Coming Week
The rand’s implied volatility versus the dollar remains at elevated levels ahead of South Africa’s mid- term budget next week and the U.S. presidential elections in November. One-month implied volatility climbed 82bps on Monday to 18.82%, compared with the one-year average of 16.19%. The volatility curve is inverted, with the one-month measure higher than the three-month, suggesting heightened concern about price swings in coming weeks.
7) Sasol Says Lake Charles Shut Without Damage from Hurricane Delta
Sasol Ltd. said its Lake Charles Chemicals Project in Louisiana remains shut, though no apparent damage to equipment was found following the nearby landfall of Hurricane Delta. While a preliminary assessment is underway, crews also indicated no flooding damage was experienced at the site from the hurricane that hit on Oct. 9, the company said in a reply to questions.
8) Scott Fyfe Named as CEO of David Jones, Australian Reports
Scott Fyfe has been appointed as the new chief executive of Woolworths Holdings’ department store chain David Jones, the Australian newspaper reports. * Fyfe replaces Ian Moir, who has been interim CEO for 8 months.
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