Edcon gets boost, but S&P bleak on SA rating

CLOTHING retailer Edcon, saved by a bailout deal with creditors, plans to cut back on buying clothing from China and Bangladesh. The move, which will be welcomed by South Africa’s textile sector, is part of a revival plan by CEO Bernie Brookes.

MANUFACTURING output expanded 2.2% year on year in August, above expectations, after contracting a revised 0.3% in July, Stats SA data showed. On a month-onmonth basis, factory production was down 1%.

TRADE conditions were stable in September as higher sales volumes were offset by slightly weaker new orders. The SA Chamber of Commerce and Industry’s seasonally adjusted trade activity index was steady at 52.

THE Africa head of ratings agency S&P Global Ratings, Konrad Reuss, said the current situation in South Africa was “not business as usual”, citing “political turmoil and tension” as worrying signs ahead of a ratings decision on December 2.

SOUTH Africa had failed to protect residents affected by pollution from mine dumps and contaminated water during more than 130 years of gold mining near Johannesburg, an independent investigation by the Harvard Law School said.

PACKAGING and paper company Mondi said third-quarter underlying profit dropped 12% from the previous quarter due to lower selling prices. Underlying operating profit fell to à227-million (about R3.5-billion) from à259-million.