South African Daybook: Mminele Speech, Reserves, BHP Court Judgment, Anglo
The central bank will release its July reserves at 8 a.m. Gross reserves probably rose to $50.4 billion from $50 billion the month earlier, according to the median estimate of seven economists surveyed by Bloomberg while net reserves likely increased to $47.5 billion from $47.2 billion, an estimate by 5 economists showed.
WHAT TO WATCH: * Judgment will be given in the Johannesburg High Court in a case brought by Naspers Ltd., a company that owns newspapers, against BHP Billiton Ltd. demanding the details of the pricing arrangement BHP has with state-owned power company Eskom Holdings SOC Ltd. at its Southern African aluminum smelting business. * The Reserve Bank will sell 600 million rand ($87 million) of inflation-linked debt, called linkers, according to central-bank data on Bloomberg. The auction is at 11 a.m. in Pretoria, with the results announced about 30 minutes later, the Reserve Bank said. The bank will also sell 6.845 billion rand of Treasury bills of 91-day to 364-day maturities. * President Jacob Zuma meets the owners of media companies at 9 a.m. in Pretoria. MARKETS: * The rand fell 3.1 percent to 6.9257 per dollar at 7:08 p.m. yesterday in Johannesburg. * The FTSE/JSE Africa All-Share Index declined 3 percent to 29,601.61 yesterday. * The yield on the 13.5 percent government bond due September 2015, known to traders as the R157, fell 2 basis points to 7.06 percent late yesterday. EQUITY * Anglo American Plc (AGL SJ): De Beers, 45 percent owned by Anglo, said its South African mines will return to full production on Aug. 6 after a wage settlement ended a 14-day strike. De Beers is the world’s biggest diamond producer. * Bell Equipment Ltd. (BEL SJ): The handling machinery manufacturer said in a trading statement that earnings per share for the six months to June 30 would be about 1.09 rand, compared with 9 cents in the same period a year ago. * Old Mutual Plc (OML SJ): The U.K.’s third-biggest insurer reports first-half earnings. * Pioneer Foods Ltd. (PFG SJ): The food producer issued a cautionary announcement saying it had entered talks that could affect the value of its shares.
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