5 things you need to know in SA business today and choice quotes from yesterday's EFF briefing
1. The rand is still going like a bat out of hell – now also thanks to an endorsement of the credit rating agency Moody’s, which says SA’s credit rating may be upgraded. But Moody’s did warn yesterday that state-owned enterprises remain a threat to our rating. The rand is at R14.15/$ this morning.
2. The stronger rand will hopefully help to curb the November petrol price hike. The AA yesterday warned that petrol price is currently on track for a 40c/litre increase, while diesel could go up by 70c in the first week of next month.
3. President Cyril Ramaphosa has reportedly given Tom Moyane until the end of next week to comment on the initial Nugent report on SARS. Moyane should be fired immediately because of his “reckless mismanagement” of SARS, according to the report. “We consider it imperative that a new commissioner be appointed without delay to remove the uncertainty at SARS and enable it to be set on a firm course of recovery so as to arrest ongoing loss of revenue.”
4. Pick n Pay released its results yesterday – sales over the past six months grew by 6.4% to R41.2 billion and headline earnings gained 17%, but its share price declined. The company is sacrificing some of its profit margin to claim back market share from its competitors.
5. Dischem posted its half-year results this morning: Sales are up 9.4% to R10.5 billion, headline earnings gained 10.5%. The company said that after an “extremely tough” July, consumer spending is looking better in August and September.
Choice quotes from yesterday's EFF briefing
In a three-hour media session at their Braamfontein headquarters, the EFF yesterday sought to clarify its position on the VBS saga.
A Daily Maverick last week reported that the EFF's Floyd Shivambu received R10m via his brother from the bank, while the EFF itself also may have received R1.3m.
The EFF yesterday denied this, and its leaders made a number of allegations during the freewheeling briefing:
Reflecting.#EFF’s version ever so slightly started to change today.From ‘there can be no #Vele / #VBS money to EFF’ to ‘l won’t be surprised if you come & talk about donations’.When the time comes, the excuse will be “donations” they were not “aware” of. #TheShivambuMillions https://t.co/NZf7yHmQj0— Pauli Van Wyk (@PaulivW) October 16, 2018
Summary of EFF media brief: DONT SPREAD THOSE RUMOURS! Also, here are some better rumours.— Chester Missing (@chestermissing) October 16, 2018
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