Business Briefs - 08 July 2008
Tue, 08 Jul 2008 09:53Business Briefs
BUILDING CONFIDENCE
FNB's Building Confidence Index is down from 66 to 50 for the second quarter of this year. Growth in residential building activity for this quarter took a knock and came in well below expectations. The confidence index for residential building contractors fell nearly half to 32 points in the second quarter. Meanwhile, the confidence for non-residential building contractors moderated slightly.
MTN
Talks between India's Reliance Communications and South Africa's MTN, which are due to end today, may be extended by three or four weeks, that's according to a report in the Business Standard newspaper this morning. But the war of words between R-COM and Reliance Industries continues. Reports in the Economic Times claim Reliance is accusing R-COM of failing to attend a meeting yesterday. Reliance apparently wanted to discuss a solution to the stalemate over its claim to a right of first refusal. But reports claim the mobile giant sent a letter to Reliance yesterday afternoon, making it clear that it had no reason to meet because it did not recognise the right. Reliance is reportedly now threatening to take R-COM to court because it didn't attend the meeting.
JSE LTD
JSE Ltd. is cutting trading fees on its equities market by 7.5% with effect from the first of July. It says the move follows strong growth in transactions on equities for the first half of this year compared with the first six months of last year. A trade on the Main Board will now carry a trading fee of R6,86 as opposed to R7,42; a trade on the Alt-X Market will now cost R3,43, down from R3,71; a Warrants trade will now cost R4,56, down from R4,93
SAB MILLER
SABMiller continues to expand its distribution network. The world's largest brewer with distribution agreements in over 60 countries across six continents says it has concluded an agreement with Anheuser Busch to transfer the US importation rights for Grolsch brand to its US joint venture, MillerCoors. Imported beers have grown at nearly 10% per annum for the last three years and now make up 15% of the US beer market
BHP - NIPPON
Nippon Steel the world's second-biggest steelmaker has accepted a record increase in iron ore prices from BHP, matching a doubling of prices agreed last month with Rio Tinto Group. In April the steelmaker said higher costs would pare annual profit 41%, but that hasn't stopped it from paying BHP as much as 97% more for iron ore.
G8 - OIL
The Group of 8 leaders have released a statement making it clear that the global economy faces serious downside risk, especially because of the surge in oil prices. Oil has climbed by 50% over the last six months alone. Now the G8 says oil producers need to increase production and refining capacity in the short term. Meanwhile, consuming nations need to focus on investing in energy-efficient technology. The G8 says it will get to grips with that issue at an energy security forum it is planning.
