COMPANY NEWS IN BRIEF

South African rand gains, interest rates in focus this week

The South African rand gained in early trade on Monday, as markets geared up for a week packed with interest rate announcements and a local inflation print.

"There are many moving parts to consider this morning that will have an important role to play in determining SA's economic future over the next few months," said ETM Analytics in a research note.

On Wednesday, local investors will look to South Africa's August consumer inflation figures (ZACPIY=ECI), opens new tab. Consumer inflation fell to 4.6% year-on-year in July, only just above the level the South African central bank aims for, 4.5%.

Another reading near the target would further cement expectations for a rate cut from the South African Reserve Bank (SARB) on Thursday. Economist polled by Reuters predict a 25 basis point cut.

"Most of this week's attention will fall on the SARB's interest rate decision... However, the domestic MPC (Monetary Policy Committee) is just one of three important central banks deciding on monetary policy," ETM Analytics added.

The U.S. Federal Reserve will announce its policy decision on Wednesday. Markets are betting the central bank of the world's biggest economy will cut rates but are divided on the size of the cut.

The Bank of England is expected to keep its main lending rate unchanged when it announces its decision on Thursday.

South Africa's benchmark 2030 government bond also gained in early deals, as the yield slipped 6.5 basis points to 8.85%.

-REUTERS-

Independent Media to undergo restructuring

Independent Media, which publishes titles like the Cape Times and The Star, says it will undergo another restructuring due to the "unsustainability" of paid print media. "Print media has been an iconic pillar of our company for decades, but the current business model is no longer sustainable in a world where digital platforms offer far greater reach and engagement opportunities," said Independent Media executive chair Iqbal Survé in a statement. While the group would try to expand its digital division, not all employees would transition. The media group did not say whether it would close or merge specific titles or how many jobs were at risk. Independent Media has been struggling financially for years, with declining advertising revenue and poor circulation figures. Last year, its newspaper division retrenched over 100 employees to cut costs and merged several publications.

-FIN24-

Boeing vote to strike

Boeing workers in the Seattle region overwhelmingly voted to strike Thursday, spurning a contract the embattled aviation giant characterized as a boon for manufacturing staff given the company's stressed financial condition. Hourly workers rejected the contract with a vote of 94.6% and to strike with 96%, said Jon Holden, president of the International Association of Machinists and Aerospace Workers District 751. "Our members spoke loud and clear tonight," said Holden, who represents about 33 000 workers in the Pacific Northwest. "We strike at midnight." A strike will shutter two major plane assembly plants in the Puget Sound region and sideline some 33 000 workers. Thursday's vote marks a decisive rejection of a deal that line workers said was far less generous than depicted by Boeing executives, marking the latest show of defiance by unions following earlier strikes in the auto, entertainment and other industries.

-AFP-

Barloworld files disclosure

Industrial and consumer group Barloworld informed shareholders on Friday that has submitted an initial notification of voluntary self-disclosure to the US Department of Commerce's Bureau of Industry and Security (BIS) regarding potential export control violations that the company is currently investigating. This relates to sales of certain goods to its Russian subsidiary. "The Company has engaged the services of independent firms with the necessary expertise in connection with the internal investigation and the voluntary self-disclosure," it said. "Accordingly, the precise details of whether there had been violations and if so, the extent of such violations, have not yet been determined, and remain subject to the abovementioned investigation and voluntary engagements with BIS."

-FIN24-

Titanic builder Harland & Wolff to exit non-core businesses amid debt woes

Harland & Wolff said on Monday it will either wind down or dispose of its non-core businesses and lay off some employees as the British shipbuilder struggles to stay in business amid a debt crisis.

The company, known for building the Titanic, did not specify the number of jobs it was planning to cut, but said it will reduce headcount in the non-core and certain central support areas.

The firm's non-care operations include the Marine Services business, the Scilly Ferries business, and the U.S. and Australian units.

The Belfast-based shipyard, which has struggled to keep up with competition and is overdue on its credit line, was rejected a 200 million pound ($263.94 million) credit facility by the UK government in July.

The firm sent its CEO on immediate leave in July. Its finance chief also stepped down last week.

Trading of the company's shares has been suspended since July, pending finalisation of its 2023 accounts on a going concern basis.

The shipbuilder will keep its core operations running at its four shipyards and retain its interest in the Islandmagee Gas Storage project.

-REUTERS-