The SA economy is in recession – two quarters of consecutive declines in the real distributable pie. The only bright spots are agriculture, which is largely rainfall-dependent, and mining, which is largely commodity price-dependent. These two sectors cannot be directly helped by monetary policy, insofar as interest rates are concerned.
All three rating agencies have made it clear that they would view a weaker growth outlook very negatively.  If South Africa is serious about avoiding further downgrades, the key areas that need to be addressed are the growth outlook and the growing concerns about “institutional quality”. The Reserve Bank can also do little about long-term growth.  That is the job of the rest of government.  Currently the commitment of the broader cabinet to boosting South Africa’s structural growth rate is unclear.  For example, the revised Mining Charter released last Friday will stunt growth in the mining sector for years to come as the industry battles the government in court.
While confidence is lacking at present, the Reserve Bank does have an ability to influence growth in the shorter term, even if it is only cyclically and at the margin.  Given the weakness of growth, this is an important consideration to escape the negative spiral.
The SARB’s mandate is to target inflation.  This mandate has proven to be far more successful and transparent than any rule the SARB has followed historically.  Since 2001, the data shows that the Bank has targeted 5.75% &#8211; just below their 6% ceiling.   With inflation falling sharply, there is growing scope to cut interest rates as the year progresses.
The SARB appears averse to such action.  The Bank is concerned about the outlook for the rand.  The May MPC statement noted that “the risks to the inflation outlook, will be highly sensitive to unfolding domestic political uncertainty.”  As a result, the Bank is opting to remain hawkish.
Why would easier monetary policy, which is focused on getting the policy settings right in an economy be seen as negative? The combination of a strong currency and high real interest rates is clearly negatively impacting on growth.
<blockquote>The May MPC statement went on to say that they believe “the current level of the repo rate is appropriate for now…..A reduction in rates would be possible should inflation continue to surprise on the downside.”</blockquote>
The data for both growth and prices show that policy settings are too tight.   The result is hot money inflows chasing high interest rate differentials, a stronger rand and ultimately poor economic growth. Disinflation in the economy is undermining profits, hurting wage growth and curbing investments.
Lower interest rates will reduce the incentive for hot money to flow into the local markets. Is the Reserve Bank worrying too much on flows reversing? If SA gets downgraded by both Moody’s and S&amp;P, we expect ZAR120bn to flow out as South Africa is ejected from the WIGBI.  However, will it?  Barclays sold Absa shares worth R36bn at the beginning of June, and the currency didn’t flinch. Setting interest rates on a forecast of the rand(om) is questionable.
An economy that sees cash in the bank producing the best investment returns compared to other investments is indicative of an economy which has overly discouraged both investment and risk-taking entrepreneurial activity. Households have further been squeezed by too high interest rates at a time when tax rates are also rising, further reducing consumption expenditure.
<blockquote>Many economies in the developed world are stagnant. They have no levers to pull to influence economic outcomes with interest rates at or below inflation. SA is not in this position.</blockquote>
We see this as a time for the SARB to take the lead and make a bold, but correct step looking forward. Changes in policy impact the economy 18 months in the future. If inflation is at 4% by year end, why would short-term rates at 6% be incorrect? That is 100bp lower than today. 2% in real terms is still a lot tighter than most peers.  Given the current political uncertainty, 100bps is potentially wishful.  However, rate cuts of 25-50bps before December look very plausible.
It is important we highlight here that we are proposing rate cuts within the current mandate of the SA Reserve Bank.  We see no need to change the mandate or Section 224 of the Constitution, which governs the objectives of the Bank.  Rather the opportunity to cut interest rates is greatly premised on the strength of the Reserve Bank’s credibility.  The vehicle charting the trajectory to lower interest rates should not be hijacked by politics.
The SARB is internationally viewed as amongst the strongest institutions in South Africa, with the quality of financial sector regulation regarded as being viewed as world class.  The Public Protector’s proposed change would remove the need for the SARB to protect “the value of the currency in the interest of balanced and sustainable growth in the Republic.”  In addition, the Bank would be required to liaise with parliament to “achieve meaningful socio-economic transformation.”
The wording in the Constitution was carefully chosen.  It limits the SARB’s ability to monetise government debt by printing money.  Thus it protects the value of the currency in the Republic, protecting the purchasing power of the rand for the average wage earner.  It protects South Africa from a return to the inflation rates of the late 1980s.  Or from the many currency crises that Zimbabwe, Argentina and Italy (pre-euro) have faced.
With seemingly innocuous changes, Busisiwe Mkhwebane has raised concerns about the inviolability of the independence of the SARB.  Her ability to achieve the proposed changes is highly questionable – Does the Public Protector have the authority to direct parliament to make constitutional changes?  However, her actions may make MPC members more cautious about supporting rate cuts.  We think this would be a mistake.
Despite the unnecessary discussions the public protector has sparked, the palpable threat to the independence of the SARB is limited.  Therefore we would hope that the MPC is able to look beyond these machinations – and focus on their mandate.  Inflation is falling, growth is collapsing.  It is time to cut interest rates.
While the SARB may be tempted to be overly cautious at this time, we think that would be a mistake.  Rate cuts at this point will provide some much needed relief to the SA economy.  Keeping the SA economy out of stall speed is vital to prevent the threat of further populism down the line.

‘With inflation falling and growth collapsing it is time to cut interest rates’

Etisalat has been instructed to transfer its 45 percent stake in Etisalat Nigeria to a loan trustee after debt restructuring talks with lenders failed, the Abu Dhabi telecoms company said on Tuesday.
Etisalat Nigeria had been in talks with Nigerian banks to restructure a $1.2 billion loan after missing repayments but those discussions failed to produce an agreement on restructuring the debt, Etisalat said in a statement.
Nigeria&#8217;s financial system, hobbled by lower oil prices and economic recession, has suffered shortages in dollars, making it difficult for companies to make the loan repayments.
Etisalat said its had been notified to transfer its stake by June 23. It said the stake had a carrying value of zero on its books.
An Etisalat Nigeria spokesman said the company was still in discussions with lenders to find a &#8220;non-disruptive&#8221; solution.
Etisalat said its financial exposure to Etisalat Nigeria was related to operational services worth 191 million UAE dirhams ($52 million) and that discussions were ongoing with lenders regarding the use of the Etisalat brand.
($1 = 3.6729 UAE dirham)
(Reporting by Stanley Carvalho and Chijioke Ohuocha; editing by Jason Neely)

Etisalat Nigeria loan restructuring talks fail as lenders step in

JOHANNESBURG (Reuters) &#8211; South Africa&#8217;s central bank said on Tuesday a recommendation by the Public Protector to change the constitution to promote growth was unlawful and would hit the regulator&#8217;s independence by stripping it of its key aim to protect the currency.
&#8220;The Reserve Bank has consulted its legal team and has been advised that the remedial action prescribed by the Public Protector falls outside her powers and is unlawful,&#8221; it said in a statement.
It would take urgent legal action, it added.
On Monday, Public Protector Busisiwe Mkhwebane proposed a change to the bank&#8217;s mandate as part of her findings on an apartheid-era bailout of a bank that was subsequently bought by Absa, now a unit of Barclays Africa Group.
http://cnbc.africa/news/financial/2017/06/19/barclays-africa-says-no-obligation-pay-sa-govt/
(Reporting by Mfuneko Toyana; Editing by Ed Cropley)
&nbsp;

South Africa central bank hits back against Public Protector

JOHANNESBURG (Reuters) &#8211; The South African Reserve Bank&#8217;s mandate to keep inflation low and protect the value of the currency is supportive of economic growth, Governor Lesetja Kganyago said on Monday.
&#8220;If we can keep inflation lower, anchoring inflation expectations, that should in turn generate a lower rate of interest to support the economy,&#8221; Kganyago told a business gathering.
&#8220;We will continue to honour our constitutional mandate and the trust placed in us by the South African society.&#8221;
His comments came after the Public Protector, an anti-graft agency, recommended constitutional changes to make the central bank promote economic growth rather than currency and price stability.
(Reporting by Olivia Kumwenda-Mtambo; Editing by Toby Chopra)
&nbsp;

S.Africa’s cenbank governor: currency, price stability aims are supportive of growth

South Africa&#8217;s rand fell more than 1.5 percent on Monday after Public Protector Busisiwe Mkhwebane recommended changes to the constitution to force the central bank to promote economic growth rather than currency and price stability.
By 1222 GMT, the rand was trading 1.44 percent weaker to the dollar at 12.9900, having hit 13.0075.
Mkhwebane said at a news conference that the primary objective of the South African Reserve Bank should be to promote balanced and sustainable economic growth, rather than to target inflation, as it is now.
It is unclear why Mkhwebane, a constitutionally mandated anti-corruption watchdog, should have made the comments, which alarmed currency traders.
&#8220;They want to initiate changes to alter the primary objective of the Reserve Bank. Some of the suggestions being to remove the reference to protect the value of the currency and all this has caused a knee-jerk reaction,&#8221; said Andre Botha, Treasury One currency dealer.
(Reporting by Tanisha Heiberg and Olwethu Boso; Writing by James Macharia; Editing by Ed Cropley)

S.Africa’s rand weakens 1.5 pct after watchdog comments over cenbank

PRETORIA (Reuters) &#8211; Barclays Africa Group unduly benefited from apartheid-era bailouts and must repay 1.1 billion rand ($86 million), South Africa&#8217;s anti-graft watchdog said on Monday.
Public Protector Busisiwe Mkhwebane in January reopened a probe of Barclays South Africa following a wider report published last November by her predecessor.
She said on Monday that the probe had found that the apartheid government breached the constitution by supplying Bankorp, which was acquired by Barclays Africa unit Absa in 1992, with a series of bailouts from 1986 to 1995.
Barclays Africa would have to pay 1.1 billion rand ($86 million), Mkhwebane said, adding that her office had referred the matter to the Special Investigating Unit to help recover the money.
&nbsp;
<h2>Barclays Africa response to Public Protector’s Press Conference</h2>
Absa has noted the Public Protector’s statement today regarding her investigation into the SA Reserve Bank’s assistance to Bankorp between 1985 and 1995. Absa acquired Bankorp in April 1992. We have not yet received a copy of the report and we are urgently requesting the Public Protector’s Office to send it to us. Once we have read it we will consider our legal options including seeking a High Court review.
Absa met all its obligations in respect of the loan provided by the SA Reserve Bank by October 1995. It is our firm position that there is no obligation to pay anything to the SA government.
(Reporting by Dinky Mkhize; writing by Ed Stoddard and Tiisetso Motsoeneng; editing by James Macharia and Jason Neely)

Barclays Africa says “no obligation” to pay SA govt

Job seekers around the world agree on one thing: Google&#8217;s parent company, Alphabet, seems like an awfully appealing place to work.
The tech giant places first on L<a href="https://www.linkedin.com/pulse/linkedin-top-companies-2017-global-edition-daniel-roth?published=t">inkedIn&#8217;s 2017 Top Companies Global List</a>, which highlights the 25 companies whose teams employees everywhere would most like to join.
To determine this list, LinkedIn&#8217;s data team analyzed billions of searches by the site&#8217;s more than 500 million members, considering views of and applications to job postings, engagement with the company on LinkedIn and the number of employees that stay with the company for at least one year.
LinkedIn did not consider itself, or its parent company, Microsoft, for this list.
As usual, a number of tech industry headliners claim spots in the ranking, but the list also represents a broad range of companies from industries including professional services and consumer goods.
Read on for the 25 most attractive employers around the world:
25. GE 
Number of global employees: 350,000
GE offers eight different leadership programs, which provide recent college graduates training in areas ranging from engineering to human resources. Roughly a quarter of the company&#8217;s current senior management completed one of GE&#8217;s leadership programs.
24. Adobe 
Number of global employees: 15,000
Adobe offers job titles as creative as its products, including Principal Artist-in-Residence, People Scientist and Vice President of Creativity. The company emphasizes that to be successful, employees should have a &#8220;learn-it-all&#8221; attitude.
23. Schneider Electric 
Number of global employees: 144,000
Headquartered in France, Schneider Electric wants to increase sharing of skills and knowledge among its employees. Schneider&#8217;s Global International Mobility Center facilitated 400 employees moving to new countries to work for the company last year.
22. EY 
Number of global employees: 250,000
One of the accounting industry&#8217;s &#8220;big four&#8221; firms, London-based EY currently has a quarter of a million employees, and expects its global headcount to reach 300,000 by 2020. In Germany, the country has introduced a refugee internship, offering four months of training to participants, who work with a mentor and are offered full-time employment following the program.
21. Accenture 
Number of global employees: 401,000
The global professional services firm offers 16 weeks of maternity leave and eight weeks of primary care leave. Further, Accenture provides free breast milk shipping for new mothers who travel as part of their role, or the option of as much as one year of local work following maternity leave.
20. PepsiCo 
Number of global employees: 264,000
PepsiCo brands like Lays, Gatorade and Tropicana are available in upwards of 200 countries around the world. Recently, the company has honed in on creating healthier products, increasing research and development spending 45 percent over the past six years.
19. Deloitte 
Number of global employees: 244,400
Employees of the auditor and consultancy have the opportunity to transfer to 150 countries where Deloitte has offices or teams — more than 6,000 employees took advantage of the option last year. The company&#8217;s leadership training center, Deloitte University, has campuses in the U.S., Singapore, Belgium, France, India and Canada.
18. IBM 
Number of global employees: 380,000
IBM uses its own technology, Watson, to enable the hiring process and pair resumes with relevant open positions.
17. Johnson &amp; Johnson 
Number of global employees: 126,000
Johnson &amp; Johnson is made up of 275 companies around the planet and has nearly 130,000 employees, but the company&#8217;s decentralized structure means that each of its subsidiaries has the independence to develop strategies that best serve its market.
16. The Walt Disney Company 
Number of global employees: 195,000
Disney employees get free passes for themselves and family members to the company&#8217;s theme parks, and trainers on the Disney English team use stories and characters from the company&#8217;s movies to teach English to children in China.
15. Unilever 
Number of global employees: 169,000
Got a taste for tea? The global consumer goods juggernaut employs a &#8220;Tea Expertise Director.&#8221; The role entails leading employee tours through tea plantations and tasting more than 1,000 cups of the beverage each day.
14. Siemens 
Number of global employees: 350,000
Siemens has cracked the code on employee retention: According to LinkedIn data, Siemens workers stay with the company 8.6 years, longer than the average employee tenure of any other company on this list.
13. Oracle 
Number of global employees: 135,000
In August, Oracle broke ground on a public charter high school on the campus of its headquarters, and in the most recent fiscal year, the company reused or recycled 99.5 percent of the electronic waste it generated.
12. Tesla 
Number of global employees: 30,000
Tesla is now the most valuable U.S.-based automaker, with a $62 billion market cap and nearly 2,500 jobs open around the world. The company isn&#8217;t turning a profit yet, so employees miss out on a lot of the perks often associated with the tech industry. But there&#8217;s hope: In an email to staff, CEO Elon Musk recently announced that free frozen yogurt and an &#8220;electric pod roller coaster&#8221; will soon be part of Tesla&#8217;s office landscape.
11. Cisco 
Number of global employees: 73,000
Cisco employees receive five days off beyond their vacation time each year to devote to volunteering, an initiative that&#8217;s clearly been a hit — last year, employees put in 227,000 volunteer hours.
10. Dell Technologies 
Number of global employees: 145,000
Dell offers employees a great deal of flexibility, including working from home, adjustable hours and the option of bringing your dog to work. More than 40 percent of the company&#8217;s hires are referred by current employees, a strong vote of confidence in Dell&#8217;s organizational style.
9. L&#8217;Oreal 
Number of global employees: 83,000
L&#8217;Oreal has 36 brands in 140 countries and has a strong focus on those at the entry level: Roughly one third of the company&#8217;s hires last year were recent graduates, and the cosmetics giant&#8217;s current CEO started as an intern with the company in 1978.
8. LVMH
Number of global employees: 135,000
Nearly three quarters of management positions at the iconic luxury brand — which spans sectors including fashion, perfume, cosmetics, jewelry and wine — are filled with internal candidates.
7. McKinsey &amp; Company
Number of global employees: 25,000
About 40 percent of McKinsey consultants take on at least one international assignment each year. The global consultancy offers employees the chance to take as much as 10 weeks off between projects.
6. Salesforce
Number of global employees: 25,000
Salesforce continuously audits employee pay &#8220;to ensure equal compensation across gender, race and ethnicity,&#8221; and recently introduced six months of parental leave for primary caregivers in the U.S.
5. Apple
Number of global employees: 110,000
Apple offers employee stock grants to all its workers, including part-time and retail employees, and a little more than one-tenth of its retail workforce turns over each year, compared to 80 percent industry-wide. CEO Tim Cook has said that he plans on doubling Apple services like iTunes and Apple Pay over the next four years.
4. Uber
Number of global employees: 12,000
The ride-hailing company has had its share of negative headlines lately, and CEO Travis Kalanick announced on Tuesday that he&#8217;d be taking a leave of absence. Still, though applications dipped slightly after ex-employee Susan Fowler&#8217;s explosive blog post, year over year, views of postings and applications to open positions on LinkedIn are up 35 percent.
3. Facebook
Number of global employees: 17,000
Facebook boasts 1.9 billion active users every month and is constantly on the hunt for the talent to help it grow its reach. &#8220;When you enter our buildings,&#8221; says CEO Mark Zuckerberg, &#8220;we want you to feel how much left there is to be done in our mission to connect the world.&#8221;
2. Amazon
Number of global employees: 341,400
&#8220;The everything store&#8221; collected three Oscar trophies for its programming, introduced Prime video in India and delivered a package in the U.K. via drone — all in the past year. &#8220;We take risks and make big bets,&#8221; Amazon told LinkedIn, &#8220;and when we fail, we apply the lessons learned and keep moving.&#8221;
1. Alphabet
Number of global employees: 72,000
Google&#8217;s parent company keeps employees engaged with cutting-edge opportunities: Upwards of 27,000 of the company&#8217;s employees work in research and development, an area that Alphabet poured almost $14 million into last year. According to LinkedIn, it&#8217;s &#8220;the opportunity and resources employees are given to tackle massive problems, stretching from creating self-driving cars to impeding extremism&#8221; that puts Alphabet on top.
[bc_video video_id=&#8221;5470912226001&#8243; account_id=&#8221;1571595826001&#8243; player_id=&#8221;default&#8221;]
<ul>
<li>Reporting by <a href="http://www.cnbc.com/kathryn-dill/" rel="author">Kathryn Dill</a> | <a href="http://twitter.com/@kathryndill">@kathryndill</a></li>
</ul>

These are the 25 most attractive employers on earth, according to LinkedIn

JOHANNESBURG (Reuters) &#8211; The steep decline in South Africa&#8217;s business confidence is a setback to economic growth recovery and will dampen investment, ratings agency Moody&#8217;s said on Monday.
&#8220;Reduced business confidence implies reduced investment, which would negatively affect growth in South Africa’s already-weak economy, and will ultimately make fiscal consolidation more challenging,&#8221; Moody&#8217;s senior analyst Zuzana Brixiova said in a research note.
(Reporting by Olivia Kumwenda-Mtambo; Editing by James Macharia)
&nbsp;

South Africa’s low business confidence setback to growth recovery: Moody’s

CAPE TOWN
South Africa mine&#8217;s minister on Sunday defended new regulations seeking to accelerate black ownership in the key industry as a &#8220;win-win&#8221; situation for all, despite objections from an industry body threatening court action to block the changes.
Minister Mosebenzi Zwane released the government&#8217;s revised Mining Charter on Thursday, raising the minimum threshold for black ownership of mining companies to 30 percent from 26 percent, and giving resource companies 12 months to meet the target among a raft of other regulations that hit mining stocks.
The Chamber of Mines, which represents mining firms, said it would challenge the new rules in court, arguing that there had been insufficient consultation in drawing up the charter &#8211; which is designed to widen ownership of Africa&#8217;s most industrialised economy.
&#8220;We have given due consideration to the submissions made and we will not be held ransom to those views that seek to derail transformation in the minerals sector,&#8221; Zwane said an an opinion piece in the Sunday Times newspaper.
Saying that it was impossible to please everybody, Zwane said a court review by aggrieved parties was expected.
&#8220;Should this happen, we are hopeful that the judiciary, recognising the separation of powers doctrine, does not usurp the role of the executive in exercising its power,&#8221; he said.
(Reporting by Wendell Roelf, editing by Louise Heavens)
&nbsp;

South Africa’s mines minister defends new mining charter

South Africa&#8217;s Chamber of Mines Vice President Steve Phiri has described the <a href="file:///C:/Users/moniquev/Downloads/finalspeech14062017.pdf">Revised Mining Charter </a>as the &#8220;last nail in the coffin&#8221; for the mining industry. The charter released on Thursday sent JSE listed mining stocks in a tailspin, see table. The Mining Index lost 2.55 per cent of its value and Gold Mining 5.27 per cent.
Due to the huge financial implications it could have for the mining industry and the rest of the country the chamber has decided to apply for an interdict to suspend the implementation of the Revised Mining Charter and take it on review. Its President: Mxolisi Mgojo says the chamber, which represents 90 per cent of the industry in the country, needs to &#8220;protect the mining industry and take all critical steps&#8221; to do so.
The chamber represents companies such as PPC, Shanduka, Glencore, Harmony, Kumba and Sibanye Gold.
The industry body says it hopes that by going to court it will bring the industry and the Department of Mineral Resources back to the negotiation table, says Mgojo.
The Mining Charter, which applies with immediate effect was released without consulting the industry body and many of its aspects have not been seen by the Chamber of Mines. It was only given a copy of the charter after it was released, says Roger Baxter, Chamber of Mines, CEO.
Baxter says it will not be signing the charter as &#8220;it is not their charter&#8221;.
Baxter warned that this is one charter that is going to scare investment. It will have a significant impact on the sector, he added.
The charter raised the minimum threshold for black ownership of mining companies to 30 per cent from 26 per cent but has not decided if firms must retain that structure permanently, Mines Minister Mosebenzi Zwane said.
<blockquote>The charter also requires mining companies to pay 1 per cent of turnover to their black empowerment partners. Mgojo says this aspect of the charter is the equivalent to &#8220;killing the goose that lays the golden egg&#8221;.</blockquote>
<blockquote class="twitter-tweet" data-lang="en">
2.) These are the highlights of the <a href="https://twitter.com/hashtag/SAminingCharter?src=hash">#SAminingCharter</a> presented by <a href="https://twitter.com/hashtag/MinZwane?src=hash">#MinZwane</a> <a href="https://t.co/5OwS6GGbSY">pic.twitter.com/5OwS6GGbSY</a>
&mdash; Dept Minerals RSA (@DMR_SA) <a href="https://twitter.com/DMR_SA/status/875988997344047105">June 17, 2017</a></blockquote>
<script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>
Zwane said companies had 12 months to meet the new 30 per cent target. The Mining Charter was introduced in 2002 to increase black ownership of the mining industry, which accounts for about 7 per cent of South Africa&#8217;s economic output.
<blockquote class="twitter-tweet" data-lang="en">
3.) These are the highlights of the <a href="https://twitter.com/hashtag/SAminingCharter?src=hash">#SAminingCharter</a> presented by <a href="https://twitter.com/hashtag/MinZwane?src=hash">#MinZwane</a> <a href="https://t.co/gXNCFmvsFL">pic.twitter.com/gXNCFmvsFL</a>
— Dept Minerals RSA (@DMR_SA) <a href="https://twitter.com/DMR_SA/status/875989055279902720">June 17, 2017</a></blockquote>
<script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>
The Chamber of Mines previously took  government to court over the interpretation of the ownership rules. A case it says it put on hold in good faith. The government has said companies must keep to black ownership targets even if black shareholders sell their stakes. The chamber will now again approach the courts to reopen the matter.
Baxter says that the chamber is not opposed to transformation when there are realistic and balanced stretched targets. Mgojo reiterated this saying that the chamber&#8217;s members on average have received transformation of over 38 per cent and the industry is one of the most transformed in the country.
<table width="90%">
<tbody>
<tr>
<td><a href="http://www.sharenet.co.za/v3/quickshare.php?scode=DRD">DRDGOLD</a></td>
<td>414</td>
<td>-24</td>
<td>  -5.48 %</td>
</tr>
<tr>
<td><a href="http://www.sharenet.co.za/v3/quickshare.php?scode=SGL">SIBANYE</a></td>
<td>1584</td>
<td>-90</td>
<td>  -5.38 %</td>
</tr>
<tr>
<td><a href="http://www.sharenet.co.za/v3/quickshare.php?scode=ANG">ANGGOLD</a></td>
<td>13952</td>
<td>-774</td>
<td>  -5.26 %</td>
</tr>
<tr>
<td><a href="http://www.sharenet.co.za/v3/quickshare.php?scode=AMS">ANGLOPLAT</a></td>
<td>28733</td>
<td>-1573</td>
<td>  -5.19 %</td>
</tr>
<tr>
<td>KUMBA</td>
<td>14794</td>
<td>-806</td>
<td>  -5.17 %</td>
</tr>
<tr>
<td><a href="http://www.sharenet.co.za/v3/quickshare.php?scode=MRF">MERAFE</a></td>
<td>116</td>
<td>-6</td>
<td>  -4.92 %</td>
</tr>
<tr>
<td><a href="http://www.sharenet.co.za/v3/quickshare.php?scode=GFI">GFIELDS</a></td>
<td>4465</td>
<td>-228</td>
<td>  -4.86 %</td>
</tr>
<tr>
<td><a href="http://www.sharenet.co.za/v3/quickshare.php?scode=EXX">EXXARO</a></td>
<td>9140</td>
<td>-460</td>
<td>  -4.79 %</td>
</tr>
<tr>
<td><a href="http://www.sharenet.co.za/v3/quickshare.php?scode=HAR">HARMONY</a></td>
<td>2264</td>
<td>-111</td>
<td>  -4.67 %</td>
</tr>
</tbody>
</table>
Source: Sharenet
(Additional Reporting by Tanisha Heiberg; writing by Ed Stoddard; editing by James Macharia and David Clarke)

SA’s Revised Mining Charter is “the last nail in the coffin”: Chamber of Mines VP Phiri

PRETORIA (Reuters) &#8211; South Africa has raised the minimum threshold for black ownership of mining companies to 30 percent from 26 percent but has not decided if firms must retain that structure permanently, Mines Minister Mosebenzi Zwane said on Thursday.
Mining companies in the world&#8217;s top platinum producer have complained about a lack of consultation over revisions to an industry charter which sets targets for black ownership and participation, and say onerous rules would hurt investment.
The rand fell 2 percent after Zwane unveiled details of the revisions while the Johannesburg bourse&#8217;s Mining Index extended its decline to more than 3 percent.
Zwane said companies had 12 months to meet the new 30 percent target. The Mining Charter was introduced in 2002 to increase black ownership of the mining industry, which accounts for about 7 percent of South Africa&#8217;s economic output.
The Chamber of Mines, an industry body, has taken the government to court over the interpretation of the ownership rules. The government has said companies must keep to black ownership targets even if black shareholders sell their stakes.
Uncertainty about the government policy remained, however, as Zwane said &#8220;we have not dealt with that&#8221; issue.
The Chamber of Mines, which represents companies such as Anglo American and Sibanye Gold, did not take part in the launch because of what it said was a lack of consultation in drawing up the charter.
(Reporting by Tanisha Heiberg; writing by Ed Stoddard; editing by James Macharia and David Clarke)
&nbsp;

South Africa raises mining sector black ownership requirement to 30 percent

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CAPE TOWN (Reuters) &#8211; South African President Jacob Zuma is consulting legal advisers about setting up a judicial inquiry into allegations of influence-peddling within his government, his deputy Cyril Ramaphosa told parliament on Wednesday.
New allegations in recent weeks of inappropriate collusion between state-owned companies and business interests close to Zuma have put more pressure on the scandal-plagued leader and ministers close to him.
(Reporting by Wendell Roelf; Editing by Hugh Lawson)
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S.Africa Zuma consulting advisers on setting up inquiry into graft allegations: Ramaphosa

South African business confidence fell deeper into negative territory in the second quarter, to a level not seen since the 2009 recession, a survey showed on Wednesday, as persistently weak business activity and concerns over politics weighed.
The Rand Merchant Bank (RMB) business confidence index compiled by the Bureau for Economic Research fell to 29 points in the second quarter from 40 points in the first quarter, remaining firmly below the 50-mark separating the net positive and negative territories.
South Africa sank into recession for the first time in eight years in the first quarter, hit by weakness in consumer sectors such as wholesale, retail and accommodation.
The latest survey results suggest seven out of every 10 respondents are downbeat about prevailing business conditions, suggesting year-on-year economic growth slowed even further in the second quarter, RMB said.
&#8220;In fact, given the severe strain many industry respondents (and consumers for that matter) are under, a contraction in GDP for the year as a whole is not inconceivable,&#8221; RMB said in a statement.
Unlike the 2009 recession, when authorities eased fiscal policy and aggressively cut rates to counter the decline in economic growth, RMB sees &#8220;no easy options&#8221; this time to restart economic growth.
&#8220;Given sovereign credit rating pressures, providing fiscal stimulus is not an option. And while it is not impossible for the Reserve Bank to lower rates, a deep-cutting cycle is most unlikely given the rand&#8217;s vulnerability to various global as well as domestic risks,&#8221; RMB added.
Ratings agency Moody&#8217;s downgraded South Africa&#8217;s credit rating but kept it at investment grade with a negative outlook, citing a recent abrupt cabinet reshuffle and reduced growth prospects for an economy mired in recession.
South Africa relies heavily on foreign money to cover its large budget and current account deficits but could struggle to attract investment if political tensions linger on and economic growth does not return.
(Reporting by Rahul B in Bengaluru; Editing by Hugh Lawson)
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South Africa’s Q2 business confidence plunges to 2009 lows

Ratings agency Moody&#8217;s Investors Service downgraded South Africa&#8217;s state-owned utility Eskom on Tuesday following the lowering of the country&#8217;s credit rating last week and said the outlook for the power company was negative.
Moody&#8217;s downgraded the long-term corporate family rating of Eskom and its zero coupon euro bonds to Ba2 from Ba1, leaving it two notches below investment grade. Eskom&#8217;s probability of default rating was also downgraded to Ba2-PD from Ba1-PD.
Moody&#8217;s downgraded South Africa&#8217;s credit rating on Friday but kept it at investment grade with a negative outlook, citing a recent cabinet reshuffle and reduced growth prospects for an economy mired in recession. [nL8N1J65Y7]
&#8220;Given Eskom&#8217;s strong linkage with the South African government and its high sensitivity to changes in the sovereign credit profile, the rating downgrades primarily reflect the one-notch downgrade of South Africa&#8217;s ratings to Baa3 negative,&#8221; Moody&#8217;s said in a statement.
&#8220;The negative outlook reflects the negative outlook on the government of South Africa,&#8221; it said.
(Reporting by Tanisha Heiberg; editing by David Clarke)
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Moody’s downgrades South Africa’s power utility Eskom

<div id="article-byline"> <a href="https://www.reuters.com/journalists/heather-somerville">Heather Somerville</a> and <a href="https://www.reuters.com/journalists/joseph-menn">Joseph Menn</a> | SAN FRANCISCO</div>
Uber Technologies Inc Chief Executive Officer Travis Kalanick told employees on Tuesday he will take time away from the company he helped to found, one of a series of measures the ride-hailing company is taking to claw its way out from under a mountain of controversies.
Kalanick&#8217;s move comes after a months-long investigation led former U.S. Attorney General Eric Holder, who was hired by Uber to look into its culture and workplace practices after a female former employee publicly accused the company of what she described as brazen sexual harassment.
Uber on Tuesday released the recommendations from that report, which include reducing Kalanick&#8217;s sweeping authority and instituting more controls over spending, human resources and the behavior of managers. (<a href="http://bit.ly/2rX2xA5">bit.ly/2rX2xA5</a>)
Kalanick&#8217;s departure, even if it is temporary, is a thunderclap for the Silicon Valley startup world, where company founders in recent years have enjoyed great autonomy and often become synonymous with their firms.
It also marks a pivotal moment for the world&#8217;s most valuable venture-backed private company, which has been largely defined by Kalanick&#8217;s brash approach.
Kalanick, 40, said he needed the time away to grieve for his recently deceased mother and to work on his leadership skills, according to a staff email seen by Reuters. He did not say how long he would be away.
&#8220;If we are going to work on Uber 2.0, I also need to work on Travis 2.0 to become the leader that this company needs and that you deserve,&#8221; Kalanick wrote in his email. &#8220;During this interim period, the leadership team, my directs, will be running the company.&#8221;
According to a source familiar with the matter, Kalanick can return to the company whenever he would like.
MORE OVERSIGHT NEEDED
The company on Tuesday shared with its staff 47 recommendations for management and policy changes that were unanimously adopted by the board on Sunday. Kalanick was not at the meeting, said a source who was present.
The meeting was marred by private equity executive David Bonderman making a sexist remark about women talking too much. He later resigned from the board of directors, calling his comment &#8220;careless, inappropriate, and inexcusable.&#8221;
The recommendations from Holder&#8217;s firm, Covington and Burling, include adding an independent director to the board and considering an independent chair; mandated manager training; and a bigger and more independent audit committee to oversee spending and management.
&#8220;I would now suggest to any startup, here are the Covington rules, and when you get passed 100 people, put these in place,&#8221; said Steve Blank, a startup founder and mentor and adjunct professor at Stanford University.
Other recommendations prohibit romances between bosses and their subordinates and create clearer guidelines on the use of drugs and alcohol.
<div id="attachment_91805" style="width: 650px" class="wp-caption alignnone"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-91805" class="wp-image-91805 size-large" src="http://cnbc.africa/wp-content/uploads/2017/03/Uber-Flickr-1024x576.jpg" alt="" width="640" height="360" />Photo: Flickr.</div>
&#8220;I think it paints a picture of a company pretty out of control with no oversight from the board or basic controls,&#8221; said Elizabeth Ames, senior vice president at the Anita Borg Institute, which advocates for women in technology.
At Tuesday&#8217;s employee meeting, human resources chief Liane Hornsey thanked the former employee who wrote about harassment, Susan Fowler, for being a catalyst for the changes. She received applause from employees, according to the source at the meeting.
Holder&#8217;s recommendations stressed the importance of a new chief operating officer. The company has been searching for a No.2 executive for more than three months and is also looking for a chief financial officer.
A number of senior Uber managers left in recent weeks as the Holder investigation and a parallel probe focused strictly on sexual harassment and other employee complaints, conducted by the law firm Perkins Coie, moved forward.
The most recent departing executives included Emil Michael, head of business and Kalanick&#8217;s closest confidant, and Eric Alexander, who ran the Asia Pacific region.
Uber said last week it had hired two women to fill top roles: Harvard Business School management professor Frances Frei will serve as an executive coach and Apple Inc marketing executive Bozoma Saint John was hired to mend Uber&#8217;s brand. Uber also added a second woman to its board, Wan Ling Martello, an executive vice president at Nestle, to serve as an independent director.
There are 14 people at Uber who report directly to Kalanick and who will likely take on more responsibility in his absence. They include Ryan Graves, head of operations and one-time chief executive at Uber.
FOUNDER POWER
Uber grew to a valuation of $68 billion in seven years amid non-stop controversy. It has upended the tightly regulated taxi industry in many countries and changed the transportation landscape, but has run into legal trouble with a rough-and-tumble approach to local regulations and the way it handles employees and drivers.
Uber has suffered a series of damaging setbacks in recent months, including a federal probe into the company&#8217;s use of technology to evade regulators in certain cities and a trade secrets lawsuit filed by Alphabet Inc&#8217;s self-driving unit, Waymo.
Some venture capitalists say Uber&#8217;s challenges should serve as a warning that the Silicon Valley ethos of leaving founders in control of companies, even after they grow into big corporations, can be a dangerous proposition.
&#8220;Inevitably, this will help drive the pendulum back toward better governance inside an organization,&#8221; said Robert Siegel, a lecturer at Stanford University and venture capitalist at XSeed Capital. &#8220;Sometimes we conflate great business leaders with strong personalities with great governance.&#8221;
(Reporting by Heather Somerville and Joseph Menn; Editing by Bill Rigby, Peter Henderson, Jonathan Weber and Lisa Shumaker)
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Uber CEO takes leave of absence amid sweeping changes after scandals

<div id="article-byline">
John Ndiso and Ben Makori | NAIROBI
Two children were pulled alive on Tuesday from the wreckage of a seven-storey building in a residential area of Nairobi, rescue services said, nearly 24 hours after the building collapsed.
The Kenya Red Cross said the two children were rescued from the rubble minutes apart. The body of a woman was also found. The children were rushed to hospital.
&#8220;We have pulled out three &#8230; Two children, a boy and a girl all are alive,&#8221; Barsdley Nyangi, a rescuer with the National Disaster Management Unit, told Reuters.
Earlier in the day, Nairobi Governor Evans Kidero, speaking at the scene of the collapse, said 30,000 to 40,000 buildings built without approval in Kenya&#8217;s capital were at risk.
Residents said tenants of the building, part of a low-income neighbourhood called Pipeline Estate in southern Nairobi, near the international airport, had noticed cracks in the walls a week earlier. The building owners plastered over them with cement.
The cracks re-emerged on Monday morning, prompting officials to ask the residents to leave the building. At least 128 did leave, saving them from being trapped when the building came down
DIGGING THROUGH RUBBLE
Rescuers drawn from various government departments dug through the rubble of the building with bare hands, pulling out broken beds, mattresses and television sets, after a specialist unit from the military cut through walls and floors at the top.
Distraught relatives stood nearby and watched. They included David Kisia, who said he got a call while at work on Monday night about the collapse. His wife and three children were still missing at lunchtime on Tuesday.
&#8220;I have told them that my family is to the back of the building, but they are insisting on finishing one side first,&#8221; Kisia said.
Kenya has seen similar tragedies in the past. Forty-nine people died last year when another building collapsed during a heavy nighttime downpour in a poor neighbourhood. The government ordered the demolition of many other buildings after that incident.
Risky buildings are usually in the poorer sections of the city. Attempts to deal with the problem in the past have been stymied by owners of the buildings, who rush to court to stop demolition or other actions.
Kidero asked magistrates and judges to consider the human cost of unsafe buildings before issuing court orders against demolition.
&#8220;They should not come in our way because the result is what we have seen here,&#8221; he said.
(Additional reporting by George Obulutsa and Humphrey Malalo; Writing by Duncan Miriri; Editing by Larry King)
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