5 things in business you need to know today
·13 Jun 2016
Here’s what is happening in the markets:
- Eskom has defended its “secret” contract with Gupta-owned Tegeta Explorations, which is valued over R500 million, saying that it was the only company who could meet its coal demands. The City Press revealed that the Gupta company quietly won the contract to supply coal to Eskom at R470 a tonne – one of the highest prices paid by the power utility.
- Former ANC secretary general Cheryl Carolus says President Jacob Zuma is dividing the party, rather than uniting it, all over his personal problems. Carolus’ views reflect similar views from ratings agencies, which have pointed to political divisions and instability within the ANC as one of the biggest risks for the South African economy.
- South Africa’s rand fell more than 2 percent against the dollar on Friday, breaching key technical support levels as lower commodity prices and concerns about global growth hit emerging markets. On Monday the rand was trading at R15.26 to the dollar, R21.67 to the pound and R17.17 to the euro.
- In global news: Asian stocks fell the most in over two months and the Japanese yen soared on Monday as riskier assets took a hammering before key central bank meetings this week and as nervous investors awaited a referendum that could see Britain exiting the European Union. US stock index futures were lower in early trading, indicating Wall Street may open with losses on Monday, the first trading day after the worst mass shooting in US history.
- Oil prices fell in early trading on Monday, pulled down by rising economic concerns in Asia and a related strengthening in the US dollar, which makes fuel imports for countries using other currencies more expensive. International Brent crude oil futures fell back below $50 per barrel, trading at $49.89, down 65 cents. US crude was down 78 cents, at $48.29 a barrel.
In other news: 50 people have been killed and over 50 more people have been injured in the worst mass shooting in US history. The shooting took place at the Pulse nightclub, a popular hangout for LGBT people in Orlando. Gunman Omar Mateen, was shot and killed by police as they entered the venue.
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