Johannesburg - The National Union of Mineworkers (NUM) is demanding a 15% wage increase for its members, firing the first salvo ahead of the start of two-year wage talks for the gold and coal sectors.
"NUM believes it is something the Chamber [of Mines] can afford with ease, given the huge infrastructure development in the country which led to huge demand for coal as well as the gold price and the commodity being a safe haven for investors," the trade union said in a statement released on Monday.
The talks to settle a fresh two-year wage agreement will be held against a backdrop of global economic turmoil and widescale job cuts in the South African mining industry, something the country's largest mineworkers' body has said it will take into account.
NUM submitted its demands to the Chamber of Mines (COM) on Monday morning, ahead of the formal start of wage talks in May.
Demands include that medical aid be given on an employer-employee basis of 70-30, a minimum basic rate for entry level underground workers of R5 000/month, a minimum living-out allowance of R1 500 per month and a home owners' allowance of R5 000 per month or 25% of the monthly repayment of the mortgage.
The gold industry had a tough 2008 and largely missed out on the benefits from a record high gold price of above $1 030 in March as it grappled with the effects of a week-long shut-down in January due to power shortages, and government demands for it to curtail energy usage by 10%. High input costs also ate heavily into margins.
Read more here
Monday, April 20, 2009
Thursday, April 16, 2009
S.Africa Telkom says in Africa partnership with AT&T
(Reuters) - South African fixed-line phone firm Telkom SA Ltd has agreed to work with AT&T to provide IT and telecom services in Africa in a bid to win business from foreign firms expanding on the continent.
Telkom's Chief Executive, Reuben September, told reporters the company had signed a memorandum of understanding with AT&T that would allow the U.S. firm's clients in Africa to use Telkom's Internet-based network on the continent.
Telkom's network -- built by acquiring companies such as Kenya's Africa Online and MWeb Africa -- would be linked to AT&T's global network, helping it win business from AT&T's customers.
Telkom shares traded 0.17 percent lower at 105.90 rand by 1304 GMT, outpacing the JSE Securities Exchange's blue-chip Top-40 index, which was 1.47 percent lower.
September said Telkom would also look at ways of collaborating with AT&T on mobile services in Nigeria and sub-Saharan African countries, where South Africa's MTN and Kuwait's Zain are strong.
Thami Msimango, head of Telkom's International business unit, said the deal would allow the company to get the most out of its African assets, after some investors questioned the logic of the purchases.
"Now we can serve more customers," he said. "We are sitting on a beast and we have to unleash it," he said, referring to the company's Africa network.
The agreement would also allow Telkom customers to access AT&T's global virtual private network. AT&T's only presence so far in Africa is in South Africa but it wants to invest further on the continent.
Read more here
Telkom's Chief Executive, Reuben September, told reporters the company had signed a memorandum of understanding with AT&T that would allow the U.S. firm's clients in Africa to use Telkom's Internet-based network on the continent.
Telkom's network -- built by acquiring companies such as Kenya's Africa Online and MWeb Africa -- would be linked to AT&T's global network, helping it win business from AT&T's customers.
Telkom shares traded 0.17 percent lower at 105.90 rand by 1304 GMT, outpacing the JSE Securities Exchange's blue-chip Top-40 index, which was 1.47 percent lower.
September said Telkom would also look at ways of collaborating with AT&T on mobile services in Nigeria and sub-Saharan African countries, where South Africa's MTN and Kuwait's Zain are strong.
Thami Msimango, head of Telkom's International business unit, said the deal would allow the company to get the most out of its African assets, after some investors questioned the logic of the purchases.
"Now we can serve more customers," he said. "We are sitting on a beast and we have to unleash it," he said, referring to the company's Africa network.
The agreement would also allow Telkom customers to access AT&T's global virtual private network. AT&T's only presence so far in Africa is in South Africa but it wants to invest further on the continent.
Read more here
Wednesday, April 15, 2009
Fitch puts big Japan banks on negative watch
(MarketWatch) -- Shares of Japanese banks managed gains early Thursday despite Fitch ratings' announcement earlier that it may cut its assessments of the country's three biggest banks due to concerns about their profitability.
The credit ratings agency said it placed Mizuho Financial Group, Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group and some of their subsidiaries on negative ratings watch, indicating it sees a greater potential for cutting their ratings.
"The rating actions reflect Fitch's concern about increasing downward pressure on the major bank groups' individual financial strengths as asset quality, capital quality, and core business profitability continue to be negatively impacted by the macroeconomic recession," Fitch said in a statement.
Despite the action, Mitsubishi UFJ was up 0.4%, Mizuho rose 1%, and Sumitomo Mitsui added 0.8% in the first hour of trading.
Read more at MarketWatch
The credit ratings agency said it placed Mizuho Financial Group, Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group and some of their subsidiaries on negative ratings watch, indicating it sees a greater potential for cutting their ratings.
"The rating actions reflect Fitch's concern about increasing downward pressure on the major bank groups' individual financial strengths as asset quality, capital quality, and core business profitability continue to be negatively impacted by the macroeconomic recession," Fitch said in a statement.
Despite the action, Mitsubishi UFJ was up 0.4%, Mizuho rose 1%, and Sumitomo Mitsui added 0.8% in the first hour of trading.
Read more at MarketWatch
India telecom shares lag strong subscriber growth
(MarketWatch) -- India may be the fastest growing market for mobile services in the world, but intense competition and the resulting fall in subscriber rates are slowing down providers' earnings growth and hurting their share performance.
Shares of India's largest mobile operator by subscribers, Bharti Airtel, are down nearly 5% so far in 2009, while those of the second-largest company, Reliance Communications , are about flat. By comparison, the 30-stock Sensex is up more than 16% during the same period.
The underperformance comes despite strong growth in subscriber additions in the world's second-most populous country, where only about a third of the people use a mobile phone.
Indian mobile operators offering services based on the "global system for mobile," or GSM technology, added a record 10.8 million subscribers in March, after bringing in 9.2 million subscribers in February and 9.3 million in January, according to figures released recently by an industry group.
"The trend supports our bullish stance on wireless subscriber growth in India. March subscriber net adds validates our view that Indian telecoms are highly resilient to the otherwise tough macro conditions," Macquarie Research wrote in a report.
Vodafone Essar led the March numbers, adding 2.85 million subscribers during the month. Bharti added 2.81 million, while state-owned Bharat Sanchar Nigam adding 2.5 million, and Idea Cellular grew by 1.42 million.
Reliance Communications, which has a much larger presence with phones using the competing standard CDMA, added 400,223 GSM subscribers during the month. India's CDMA subscriber figures for March have yet to be announced.
Telecom shares were trading higher in Wednesday afternoon trading in Mumbai, with Bharti Airtel stock rising 3%, and Reliance Communications gaining 4.9%, while Idea Cellular jumped 4.4%. The moves came as the overall market bounced off early lows, with the 30-stock Sensex rising 2.5% to 11,235.48.
India's Wednesday gains came in mixed regional market action, with Japan's Nikkei ending down 1.1%, Hong Kong's Hang Seng gaining 0.6%, China's Shanghai Composite advancing 0.4%, Australia's S&P/ASX 200 slipping 0.1% and Taiwan's Taiex sliding 0.3%.
Read more at MarketWatch
Shares of India's largest mobile operator by subscribers, Bharti Airtel, are down nearly 5% so far in 2009, while those of the second-largest company, Reliance Communications , are about flat. By comparison, the 30-stock Sensex is up more than 16% during the same period.
The underperformance comes despite strong growth in subscriber additions in the world's second-most populous country, where only about a third of the people use a mobile phone.
Indian mobile operators offering services based on the "global system for mobile," or GSM technology, added a record 10.8 million subscribers in March, after bringing in 9.2 million subscribers in February and 9.3 million in January, according to figures released recently by an industry group.
"The trend supports our bullish stance on wireless subscriber growth in India. March subscriber net adds validates our view that Indian telecoms are highly resilient to the otherwise tough macro conditions," Macquarie Research wrote in a report.
Vodafone Essar led the March numbers, adding 2.85 million subscribers during the month. Bharti added 2.81 million, while state-owned Bharat Sanchar Nigam adding 2.5 million, and Idea Cellular grew by 1.42 million.
Reliance Communications, which has a much larger presence with phones using the competing standard CDMA, added 400,223 GSM subscribers during the month. India's CDMA subscriber figures for March have yet to be announced.
Telecom shares were trading higher in Wednesday afternoon trading in Mumbai, with Bharti Airtel stock rising 3%, and Reliance Communications gaining 4.9%, while Idea Cellular jumped 4.4%. The moves came as the overall market bounced off early lows, with the 30-stock Sensex rising 2.5% to 11,235.48.
India's Wednesday gains came in mixed regional market action, with Japan's Nikkei ending down 1.1%, Hong Kong's Hang Seng gaining 0.6%, China's Shanghai Composite advancing 0.4%, Australia's S&P/ASX 200 slipping 0.1% and Taiwan's Taiex sliding 0.3%.
Read more at MarketWatch
Tuesday, April 14, 2009
Lehman Sits on Bomb of Uranium Cake as Prices Slump
(Bloomberg) -- Lehman Brothers Holdings Inc. is sitting on enough uranium cake to make a nuclear bomb as it waits for prices of the commodity to rebound, according to traders and nuclear experts.
The bankrupt bank, in the throes of paying off creditors, acquired uranium cake “under a matured commodities contract” and plans to sell it when the market improves “to realize the best prices,” Chief Executive Officer Bryan Marsal said.
Lehman, once the fourth-largest investment bank, has an estimated $200 billion in unsecured liabilities left to pay. The uranium, which may be as much as 500,000 pounds, might fetch $20 million at today’s prices of about $40.50 per pound, said traders who asked not to be named because of the confidential nature of the data. Marsal said the traders’ estimate of Lehman’s uranium holding is “reasonable,” while declining to be more specific.
Uranium has dropped for five straight months from $55 a pound on Dec. 1 on concerns that countries including China and India would delay nuclear power projects because of the global economic crisis, and because Lehman might dump its radioactive material on the market, the traders said.
More than 43 million pounds of uranium-oxide concentrate, or yellowcake equivalent sold on the spot market last year, more than doubling the 2007 trading volume, according to Roswell, Georgia-based Ux Consulting Co.
Illiquid Market
The oversupply in an illiquid market pushed prices down about 30 percent between September and November, spurring sales by speculative investors, such as hedge funds, said John Wong, a fund manager in London at CQS UK LLP, which has $6 billion under management including shares of funds that own uranium.
“What people found out is that this is not like playing copper where it’s a liquid and deep market,” Wong said. “A lot of the funds playing this market have blown up.”
Uranium typically trades through broker-dealers, including MF Global Ltd. and Tullett Prebon Plc, or in direct sales between mining companies and nuclear utilities. Utilities buy processed ore known as yellowcake, which is later converted, enriched and fabricated into fuel rods. The New York Stock Exchange also supports trading in futures contracts, which are not linked to physical delivery.
Read more at Bloomberg
The bankrupt bank, in the throes of paying off creditors, acquired uranium cake “under a matured commodities contract” and plans to sell it when the market improves “to realize the best prices,” Chief Executive Officer Bryan Marsal said.
Lehman, once the fourth-largest investment bank, has an estimated $200 billion in unsecured liabilities left to pay. The uranium, which may be as much as 500,000 pounds, might fetch $20 million at today’s prices of about $40.50 per pound, said traders who asked not to be named because of the confidential nature of the data. Marsal said the traders’ estimate of Lehman’s uranium holding is “reasonable,” while declining to be more specific.
Uranium has dropped for five straight months from $55 a pound on Dec. 1 on concerns that countries including China and India would delay nuclear power projects because of the global economic crisis, and because Lehman might dump its radioactive material on the market, the traders said.
More than 43 million pounds of uranium-oxide concentrate, or yellowcake equivalent sold on the spot market last year, more than doubling the 2007 trading volume, according to Roswell, Georgia-based Ux Consulting Co.
Illiquid Market
The oversupply in an illiquid market pushed prices down about 30 percent between September and November, spurring sales by speculative investors, such as hedge funds, said John Wong, a fund manager in London at CQS UK LLP, which has $6 billion under management including shares of funds that own uranium.
“What people found out is that this is not like playing copper where it’s a liquid and deep market,” Wong said. “A lot of the funds playing this market have blown up.”
Uranium typically trades through broker-dealers, including MF Global Ltd. and Tullett Prebon Plc, or in direct sales between mining companies and nuclear utilities. Utilities buy processed ore known as yellowcake, which is later converted, enriched and fabricated into fuel rods. The New York Stock Exchange also supports trading in futures contracts, which are not linked to physical delivery.
Read more at Bloomberg
Thursday, March 27, 2008
HSBC raises Israel Chemicals target
... at NIS 49.96 on the Tel Aviv Stock Exchange, up 2.15% so far this session. "India ... range of $500-600/tn and more importantly, pressures China in its ongoing negotiations with the same ...
Asian economic and business calendar -- to April 10
... COMTEX News Network) -- Thursday March 27 -Japan weekly capital inflows -Hong Kong Feb trade ... unemployment Friday March 28 -Japan Feb CPI, Tokyo March CPI -Japan Feb unemployment rate -Japan ... condition -Malaysia Feb industrial output -Malaysia end-March forex reserves -Czech Feb foreign trade -US Alcoa ...
Subscribe to:
Posts (Atom)
