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ICYMI: A roundup of Monday's must-read financial news
Rand braces for punch as SA downgrade no longer 'if' but 'when'
One local currency downgrade on Friday would push the dollar/rand exchange rate up by between 30 cents and 50c in a rapid spike, according to John Cairns, a currency economist at Rand Merchant Bank.
"This would be a much bigger move than seen after previous downgrades," he said on Monday. Ratings agencies S&P and Moody’s both have reviews scheduled for Friday November 24.
"If S&P and Moody’s both downgrade, then we can expect far greater losses — perhaps even between 50c and 100c. Our market surveys and the pricing on offshore bonds show that downgrades are expected, but this is probably priced for mid-2018 and not as soon as this week," said Cairns.
READ: Rand braces for punch as SA downgrade no longer 'if' but 'when'
HSBC closes accounts linked to Guptas amid review
Global bank HSBC is shuttering accounts associated with the Gupta family as it assesses its exposure to the scandal gripping South Africa.
The bank is conducting a wide-ranging review of any possible involvement in suspicious transactions, with the assistance of external investigators, people with knowledge of the matter said.
HSBC first closed accounts held by companies linked to the Gupta family in 2014 after internal compliance procedures picked up transactions that couldn’t be explained as legitimate business, the sources said, asking not to be identified discussing a matter that isn’t public.
Banks are required to report any transactions they suspect may be related to illicit activities.
“Any exposure that we had to the Guptas’ companies was inadvertent,” HSBC said in an emailed statement to Bloomberg on Monday. “For the past couple of years, we have been in the process of identifying what there is and shutting it down.”
READ: HSBC closes accounts linked to Guptas amid review
Former Eskom chiefs Molefe and Tsotsi to face Eskom inquiry
Former Eskom chief executive Brian Molefe and former chairperson Zola Tsotsi will give evidence in the Eskom inquiry conducted by Parliament’s public enterprises portfolio committee on Tuesday.
Molefe and Tsotsi’s names have been raised countless times during the inquiry, which has seen damning testimonies from former and suspended executives, business rescue practitioners, consultants and pension scheme officials.
Tsotsi was chair from 2011 to 2015 and Molefe was chief executive from 2015 to 2016.
The inquiry is investigating corruption and state capture allegations at Eskom, following former public protector Thuli Madonsela’s State of Capture report and the countless allegations contained in the #GuptaLeaks.
READ: Former Eskom chiefs Molefe and Tsotsi to face Eskom inquiry
SCAM ALERT: Pick n Pay is not giving away R1 500 coupons
Scores of unwary South African Facebook users have been sharing a viral scam offering a R1 500 coupon from Pick n Pay, but the retailer has confirmed to Fin24 that it is a hoax.
The scam on Facebook directs users to a website that requires answers to a three step survey before the post is shared to their own timeline.
Pick n Pay told Fin24 it had issued a scam alert urging customers not to complete the survey. “We’ve been receiving a lot of comments and queries regarding a R1 500 coupon competition doing the rounds. To clarify: THIS IS A SCAM. We are not involved with, or promoting, this “competition” at all,” the company said.
READ: Pick n Pay is not giving away R1 500 coupons
OPINION: Brand Mugabe may take down Brand Zuma
Events in Zimbabwe this last week might be bad for the brand of President Robert Mugabe, but they are set to have a knock-on effect in South Africa as the country moves towards a similar watershed moment in December at the ANC’s elective conference, writes Daniel Silke.
ANC supporters have always had a love-hate relationship with Mugabe. They have always admired his liberation and revolutionary lineage, yet equally questioned his ruthless rule and the descent of his country into a virtual failed state.
The sheer power of Mugabe was always attractive, as was his anti-colonial rhetoric, but years of misrule were also seen as a mirror of South Africa – an image about a decade ahead of South Africa.
READ: Daniel Silke: Brand Mugabe may take down Brand Zuma
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