The Foschini Group launched a mobile network. The mobile virtual network operator (MVNO), called TFG Connect, will piggyback on MTN’s network.
The South African Reserve Bank raised the repo rate by 0.75% back to pre-Covid levels and forecasts GDP growth in 2022 to be 1.9%.
In other news, Investec PLC released a trading statement for the half-year period that will be ending in September and expects earnings to nearly double.
Here is the biggest news of the day.
- The Foschini Group launches a mobile network. The mobile virtual network operator (MVNO), called TFG Connect, will piggyback on MTN’s network. TFG is the fourth retailer to enter this competitive space, following Mr Price, Pick n Pay and Shoprite k’nect. FNB and Standard Bank also operate MVNOs, with FNB believed to be the largest in the country.
- The South African Reserve Bank raised the repo rate by 0.75% back to pre-Covid levels. The repo rate now stands at 6.25%. 2 out of the 5 Monetary Policy Committee’s (MPC) members indicated a preference for a 1.00% increase. The SARB forecasts GDP growth in 2022 to be 1.9%, down 0.1% from the previous forecast. The forecast for 2023 is 1.4% and 1.7% in 2024. Inflation forecasts are 6.5% for 2022, 5.3% for 2023 and 4.6% for 2024.
- Investec PLC expects earnings to nearly double. The company released a trading statement for the half-year period that will be ending in September, expecting earnings per share (EPS) to grow around 94% to nearly 0.50 Pounds.
- Bank of England raised rates by 0.50% in the face of a weakening Pound and a 9.9% inflation reading in August. Their base interest rate is now 2.25%. The BoE expects inflation to peak at just under 11% in October. Many market participants expected a 0.75% rate hike. Still, the BoE said it believed the U.K. economy was already in a recession, forecasting GDP would contract by 0.1% for the second time in the third quarter.
- Swiss central bank raises rates by 0.75%, bringing them out of negative territory to a level of 0.50%. They were the last European country to end negative rates, following inflation of 3.5%, a 3-decade high for them.
- Turkey again cut interest rates by 1.00% despite the 80% inflation reading in August. Turkey already lowered interest rates by 5.00% in 2021. The country’s inflation continues to spiral for the 15th consecutive month and is at the highest level in 24 years. Their repo rate is now at 12%.
- Japan intervened in forex markets to buy the Yen, to prop up their weakening currency. This follows their central bank’s decision to keep rates at -0.1%, leading to a weakening of their currency. Japan remains the last central bank with negative interest rates.
- Texton REIT reports a massive decline in earnings. Group revenue for the year was down nearly 25% to R333 million, while earnings per share (EPS) dropped 80% to R0.11. A final dividend of R0.07 per share was declared, bringing the total dividend for the year to R0.17, less than half of the dividend in 2021.