ICYMI: MTN is said to be nearing Nigeria deal over $8.1 billion claim

The MTN Group is close to securing a deal with Nigeria’s central bank over an order to repay $8.1bn it is alleged to have illegally taken out of the country, according to a person familiar with the matter.

A settlement is expected by Monday and could come as early as Friday, said the person, who asked not to be identified because they’re not authorised to comment publicly.

The Central Bank of Nigeria will on Friday meet the four banks accused of facilitating the transfers - Standard Chartered, Citigroup, Stanbic IBTC and Diamond Bank - and that Lagos meeting could end the saga, the person said.

MTN, Citibank, Standard Chartered and Stanbic IBTC declined to comment. A spokesman for Nigeria’s central bank and representatives from Diamond Bank didn’t answer calls seeking confirmation after regular business hours.

These Chinese bondholders are being paid in ham instead of cash

A Chinese company has come up with an innovative way to placate creditors - as long as they like ham.

Chuying Agro-Pastoral said holders of 271 million yuan of its debt have agreed to take ham or pork gift packages instead of interest payments, according to a filing on the Shenzhen Stock Exchange on Thursday.

The Zhengzhou-based pork producer failed to repay 500 million yuan of local bonds due this week amid a cash crunch caused by the spread of African swine fever.

Oil teeters near record losing streak after entering bear market

Oil’s set for its longest stretch of declines on record after entering a bear market, with investors awaiting a weekend meeting of OPEC and its allies to discuss output strategy.

Futures in New York are slipping for a 10th day, extending a dramatic plunge that’s dragged prices down over 20% from a 2014-high just five weeks ago. The slump has rattled producers, and the Organization of Petroleum Exporting Countries has signaled it may cut output next year - an option that’ll be part of talks when the group meets with partners in Abu Dhabi on Sunday.Oil’s slump has been exacerbated by a US decision to allow eight countries to continue importing from Iran even after it hits the OPEC member with sanctions.

That revived concerns of a supply glut, in contrast to earlier fears over a crude crunch due to shrinking exports from the Persian Gulf state. Pledges by other producers such as Saudi Arabia to pump more and record American supply as well as rising stockpiles also weighed on prices.

Another hurdle cleared for Discovery Bank as group raises R1.85bn in share offering

Discovery raised R1.85bn in its accelerated bookbuild, as the health insurer and financial services provider cleared another hurdle for its banking business.

The bookbuild, announced on Thursday evening, is part of Discovery's plan to launch its own bank.

The group is intending to use the funds raised to buy out FirstRand Investment Holdings Limited's 25.01% interest in Discovery Bank, acquire the remaining 25.01% interest that FirstRand Bank owns in the Discovery card joint venture business, and acquire all rights to the Discovery card book and related assets.

The group's shares were trading 3.80% weaker at R163.60 by 10:05. 

Tongaat Hulett shares down more than 3% on trading update

Tongaat Hulett shares were down more than 3% on the back of its six-month trading statement which indicated that operating profit would be down 64% compared to the same period last year.

"Shareholders are advised that Tongaat Hulett’s operating profit is expected to be R530m, which is 64% below the R1.471bn recorded in the six months ended 30 September 2017," the board said in a notice to shareholders.

"The decline in operating profit is largely attributable to land transactions that were not concluded by 30 September 2018.

"Furthermore, local market conditions in the South African and Mozambique sugar operations negatively impacted on both revenue and cane valuations which reduced operating profit."

The board also expects a headline loss of R87m for the six months ended September 30, 2018. This is down from the headline earnings of R661m compared to the same period last year. 

As a result a headline loss per share of 74c is expected, compared to headline earnings of 574c reported for the same period last year.

"A loss per share of 94 cents is expected for the six months ended 30 September 2018, a reduction of 115% compared to earnings per share of 629 cents reported for the comparative period," the notice read.

The interim results are expected to be released later at 16:00.

The share price was trading 3.91% weaker at R62.73 by 10:30

Anglo American Platinum to host investor analyst visit to China

Anglo American Platinum is hosting an investor and analyst visit to China to showcase demand for platinum group metals, from November 12, 2018, the group said in a notice to shareholders.

"The visit will focus on the growth of fuel cell vehicle production in China and to understand the changing dynamics of the platinum jewellery market in China," the notice read.

Gold Fields cuts output forecast as SA mine struggles

Gold Fields has lowered 2018 output forecasts after workers at its South African mine embarked on a go-slow and a strike protesting the producer’s plans to cut jobs as part of a restructuring.

Production is now expected at 2 million ounces from an earlier forecast of as many as 2.08 million ounces to 2.10 million ounces, the Johannesburg-based company said in a statement on Friday.

Gold Fields’ plan to cut more than 1 500 jobs to restructure its struggling South Deep gold mine in South Africa met with opposition after workers embarked on a crippling strike on November 2.

Currency market focus on politics

This past week currency moves were dominated by the US mid-term elections, Bianca Botes, corporate treasury manager at Peregrine Treasury Solutions, said in a market update.

"The dollar slumped leading up to the election outcome, as investors steered away from the greenback, but the mighty dollar is once again on the rise as treasury yields tick up alongside the currency," she said.

"Locally we received confirmation that the national elections will be held during May 2019.

"While our political landscape remains largely unchanged, it is important to note that elections always contribute to market volatility and that the outcome of these elections will also drive certain economically positive or negative policy, depending on the winning party and their balance of power in Parliament."

The rand which dipped below the R14.$ mark during the week, on the back of the US mid-terms, lost most of its gains near the end of the week, Botes noted. "However it is still trading some 30c stringer against the greenback," she said.

"The rand is expected to continue its bumpy ride but, for now, the levels are great to get your hands on some foreign currency."

Botes said the local currency is expected to trade between a range of R14/$ and R14.27/$.

While analysts from NKC Economics expect it to trade between a range of R14/$ and R14.30/$.

Hype of US mid-terms dies down

"The rand has retreated to above the R14.00 level, as the mid-term knee-jerk seems to have run out of steam," Currency dealer at TreasuryONE Andre Botha said in a market update.

"Looking at the market reaction as a whole it mostly stuck to the script when investors predicted the outcome of the midterms and the possible market moves.

"We have seen EM's on the front foot with an initial reaction but the hype slowly died down," said Botha.

"Another event that stuck to the script was the US Fed that kept interest rates on hold as was widely expected.

"The language from the Fed also did not waiver from the previous meeting with a December rate hike looking on the cards with gradual rate hikes next year. This hardly registered in the market as the fade in euphoria from the mid-terms was the main story,"Botha explained.

Friday is expected to be a quiet day for the markets - no significant events or data will be released on Friday.

"The rand will stay in narrow trading ranges, and today could be a dull day as we head into that weekend," Botha said.

Rand opens at R14.13/$

The rand opened at R14.13/$ on Friday morning.

The US Federal Reserve Bank on Thursday kept interest rates unchanged at 2.25%, in line with market expectations.

The Fed is expected to hike at the December meeting, and then gradually in 2019, according to a market update from TreasuryONE.

US equities closed down and Asian equities is also in the red this morning. US 10Y treasury yields edged lower to trade closer to 3.20% again from 3.25%. Italian budget deficit is in the headlines again with the EU warning Italy that the EU’s limit of a 3% budget deficit is dangerously close.

Emerging markets has given up some of the gains this week with the ZAR almost back to where we started the week. 

The rand was trading at R14.19/$ at 09:15.