5 things you need to know in business today
·28 Jun 2016
Here’s what is happening in South Africa and the markets:
- South African and global markets continue to take pain on the fallout from Britain’s decision to leave the European Union. The share price of South African businesses with overseas operations will for the foreseeable future continue to be affected by the relative exchange rate in the aftermath of Brexit, says Pieter Fourie, Sanlam Private Wealth’s head of global equities.
- South Africa’s rand fell as much as 3 percent against the dollar on Monday as the effects of Britain’s vote to leave the European Union continued to weigh on global risk demand, while stocks also suffered. On Tuesday the rand was trading at R15.25 to the dollar, R20.28 to the pound and R16.87 to the euro.
- Liquid Telecom has entered into an agreement with fixed-line operator Neotel to acquire the business for R6.5 billion. This deal comes after a deal between Neotel and mobile operator Vodacom fell through after hitting regulatory problems and Neotel’s spectrum licences fell away.
- In global news: Asian stocks rose for the first time in three days on Tuesday while sterling and other currencies advanced as investors scooped up beaten down assets after Britain’s vote to exit the European Union stunned financial markets. Wall Street tumbled again on Monday.
- Oil prices rose in early trading in Asia on Tuesday as a looming strike in Norway threatened to cut output in western Europe’s biggest producer, although Britain’s vote to leave the European Union was still weighing on markets. London Brent crude futures were trading at $47.58 per barrel, up 42 cents from their previous settlement. U.S. West Texas Intermediate (WTI) futures were up 35 cents at $49.68 a barrel.
In other news: With investments of around R200 billion in the last five years, South Africa has become a world leader in the growth of renewable energy says Vice President of SolarReserve, Terence Govender.
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