SAA has finally gone into business rescue. What this means for the long-term prospects of the business is still unknown, but a business rescue practitioner will be appointed immediately. This may be a good move as at least changes are being made to the bulky state-owned enterprises, and this will in-turn alleviate the weight bearing down on the economy.
- President Trump has said that he will reinstate tariffs on steel and aluminium from Argentina and Brazil. This threat has materialised because Argentina and Brazil have replaced America in sending soybeans to China while the US is in a stalemate trade war with the Asian superpower.
- President Trump also proposed duties on French goods because he considers a digital revenue tax that France has proposed to “discriminate” against US companies. France has promised that the European Union would retaliate.
- The House Intelligence Committee released its report on the impeachment inquiry into President Trump. According to the committee, Trump “publicly and repeatedly” urged foreign governments to investigate former Vice President Joseph Biden, compromised national security, and intimidated and tampered with witnesses.
- A massive strike is taking hold in France. Everyone from transport workers to lawyers, to doctors, to teachers are going on strike over a plan to rearrange the country’s pension system.
- The SAA board have voluntarily applied for business rescue. The board is now in the process of appointing a business rescue practitioner, who will start immediately.
- The ANC has regained power in Johannesburg, this came after ANC’s Geoff Makhubo was elected as the city’s mayor. Makhubo garnered 137 votes against 101 for the Democratic Alliance’s Funzela Ngobeni and 30 for the EFF’s Musa Novela. The ANC does not have an outright majority in the council and won through garnering opposition support.
- The South African economy contracted for the second time this year as third-quarter GDP came out at -0.6% and the economy has not grown more than 2% annually since 2013.
- According to the IHS Markit’s Purchasing Managers’ Index, the private sector activity has reduced for the seventh consecutive month due to decreased output, less new orders, and a contraction in employment.
- The global climate crisis is set to impact Southern Africa, warned the United Nations, relief organisations, and independent experts. It was estimated that at least nine million people are going to face acute food insecurity.
Sources: Dynasty, Stanlib, Prescient, Daily Maverick, Moneyweb, and Bloomberg Markets, etc