Here’s what caught our attention on Tuesday:
1. Tongaat postpones release of results
Sugar producer Tongaat Hulett announced late on Monday that it will delay the release of its financial results for the year ended March 31, 2019, previously expected on October 31. Without saying when the financials will be published, Tongaat indicated that an update would be provided in November. The company issued a review on its wide-ranging restructuring plan and says it is making good progress in implementing the measures despite facing challenges. It added that intervention to improve liquidity has been implemented and the board continues to monitor liquidity and solvency.
2. Bridgestone invests in tyre plants
Tyre giant Bridgestone has announced a R700 million investment into local tyre plants as part of its commitment to the South African manufacturing industry and as part of a strategic partnership with the taxi industry. Moneyweb is reporting that Bridgestone CEO, Jacques Fourie says the company is currently completing an investment of about R400 million at its main tyre manufacturing plants in Brits, adding that it is looking to invest a further R300 million capex in its SA plants in the future.
3. Duduzane Zuma continues testimony
The son of former president Jacob Zuma will continue giving testimony at the State Capture Commission of Inquiry on Tuesday. On day one of his appearance, Zuma denied fault and rejected testimony given by former deputy finance minister Mcebisi Jonas, which detailed his presence when Jonas was offered a bribe by the controversial Gupta family. Zuma admits to arranging meetings between the Guptas and Jonas but the details of his testimony differed on other aspects. On Tuesday, Zuma is expected to answer questions relating to former ANC MP Vytjie Mentor’s testimony.
4. Implats acquires North American Palladium
Impala Platinum has launched a bid to acquire 100% of the outstanding shares in North American Palladium for a cash consideration of R11.39 billion. Implats made the announcement via Sens on Monday. The miner says the transaction will enable the company to reposition itself as a ‘high-value, profitable and competitive PGM producer’, adding that the strategy will improve its competitive industry position.
5. Global update
The week ahead is said to be a significant one for the US economy. High-level trade talks between the US and China are set to continue on Thursday and Friday even as the hostility between the two nations escalates, negatively impacting risk assets and emerging-market currencies.
Investors are also awaiting US Federal Reserve Bank chairman, Jerome Powell’s speeches on Tuesday and Wednesday and will be looking for clues regarding economic growth and future interest rate cuts.