In tonight's show we'll look at Kumba's results, get an update on the Tannenbaum Ponzi scheme, explore the impact of the service delivery protests, and hear more about the super cable launch today.
But first, Hilton Tarrant has the business news headlines.
HILTON TARRANT: Kumba Iron Ore says it will raise output amid small signs of recovery; finance minister Pravin Gordhan says low savings rates are a concern; the rand gains to an eleven-month high on MTN/Bharti fund flow speculation; and the reverse-listing of Afgri's poultry business into Sovereign Foods has been called off.
The all-share index closed up 1.3% today at 23914, the rand currently at R7.65/dollar, R12.64/pound and the euro at R10.90. A barrel of Brent is at $68 and gold is at $956/oz.
FELICITY DUNCAN: Thanks, Hilton. David Shapiro is in the studio. Nice, strong day on the markets today.
DAVID SHAPIRO: Ja, the pull-back lasted one day yesterday, 1%, it was a correction and we are back up again. I love the bull markets and the Dow Jones now over 9000. So most of the momentum came from the American markets, existing home sales up for the third month in a row. You know, we are learning all this jargon, all these data from the United States, and we learn to quote it. It is pushing their markets up, and it genuinely pushes our market up.
FELICITY DUNCAN: Absolutely. On the companies front, did you have a chance to check out Woolworths' latest trading update? What did you make of it? I looked at the comparable stores growth, and it's negative, so they are sneaking the wool over our eyes by these claims.
DAVID SHAPIRO: I think so. It's just through growth that it's up. And also it's very confusing. I must admit it came through very late and I only gave it a glance over. But look, the market seems to like it and they seems to be very happy about it, and I think there is a turnaround, certainly in their sales. The one thing that I picked up that I like about it was that they mention that the upper and middle classes are now starting to spend again. That's where their market is. So that was the one positive feature...
FELICITY DUNCAN: Now that makes sense, because these consumers are interest-rate sensitive, because they have interest-rate debt. So the minute the rates go down, they've got more disposable income.
DAVID SHAPIRO: And I would expect with a 4.5% reduction in interest rates now that momentum should start picking up. So you should see a much better second half.
FELICITY DUNCAN: We'll be chatting with the CEO of Kumba later, but what did you think? Pretty strong.
DAVID SHAPIRO: Strong results, very, very strong. The warnings about the price coming back have already been built into the market. We know that the price has come back to round about $90, and that's where they have negotiated. In fact, today in the FT this morning it said that spot iron-ore prices are now $100/ton. The price has risen, and of course that's going to be very favourable for iron ore, and I still think the one area of the market that you can bank on.
FELICITY DUNCAN: Looking on a broader level, the rand - it's incredible. Below R11 to the euro.
DAVID SHAPIRO: Some momentum play. But also a lot of rumours pushing that up - the MTN/Bharti deal, probably, that could be R60bn that comes in. But I think all commodity currencies and all emerging market currencies are picking up.