Rand puts gleam in eye but more may go to wall

SOUTH Africa’s business confidence index rose to 96 points in July from 95.1 in June, lifted by a firmer rand and improvements in export volumes and retail sales, a South African Chamber of Commerce and Industry survey showed. PETRA Diamonds said it had recovered a 138.57ct white diamond at the historic Cullinan mine. It was classified as type IIa, D colour, meaning it had high clarity, and would be offered for sale in Johannesburg this month. MANUFACTURING output rose 4.5% year on year in June — more than expected — after increasing by a revised 3.9% in May, data from Stats SA showed. On a month-on-month basis, factory production was up 0.7%. SOUTH African retailer Steinhoff raised its agreed offer for Poundland in the UK to £610-million (R10.5billion) and said the revised terms were final, challenging investor Elliott to back the deal or risk its collapse. SOUTH African businesses are more likely to fail this year amid low economic growth and tough operating conditions‚ a study suggests. The study, by Euler Hermes‚ forecasts that insolvencies will possibly increase about 10% year on year in 2016. MPACT posted a 6% fall in half-year profit, and the paper and plastic packaging firm warned on future earnings. Underlying operating profit fell to R322million from R342-million, it said. Headline earnings per share dropped 29.4% to 94.9c. THE ANC could lose control of more than R130-billion in city budgets as political parties negotiate coalitions to govern four of South Africa’s biggest municipalities, including Pretoria and Johannesburg. THE Reserve Bank was expected to raise interest rates in November in its fight to lower inflation, despite weaker economic growth, a Reuters poll found. It would be running against a global tide of central banks mostly easing policy.