Monday, June 1, 2009.
From Creamer Media in Johannesburg, I'm Shannon O'Donnell.
Making headlines today:
On Monday, Kagiso Securities head of fixed income and currency futures Andre Coetzee reported that the Purchasing Managers Index for May could offer a "glimmer of hope" as it improved to 37,3 index points on a seasonally adjusted basis. This was its first rise since January.
The PMI had increased from 35,6 points in April.
Coetzee noted that it seemed as if the PMI has made a turn, but said that one would have to look at the PMI for a sustainable upward trend in the coming months to determine if it had reached the bottom. The PMI is a key measure of manufacturing activity.
Standard Chartered Bank could underwrite up to 5-billion-dollars to back Bharti Airtel's 23-billion-dollar tie-up with South African telecom operator MTN Group.
Banking sources said StanChart was expecting to underwrite the full amount of the financing for the proposed deal, or as much as 5-billion-dollars. If the deal materialises, StanChart is expected to syndicate the loan.
StanChart, which is advising Bharti on the transaction, was previously reported to have agreed to underwrite 1-billion-dollars of the deal. But, on Monday, sources said the bank could back the entire offer.
Such a hefty financing offer from a single bank is extraordinary in the current climate, as tight credit markets have made acquisition financing scarce.
Also making headlines:
South Africa's World Wildlife Fund for Nature will assess South Africa's transition to a low-carbon economy.
South African Reserve Bank governor Tito Mboweni says the Rands strength may be unwelcome.
The global economic crisis forces African governments to turn to the International Monetary Fund.
And, a forestry firm completes a feasibility study for a 20-MW cogeneration plant.
That's a round up of news making headlines today. For more on these and other stories please visit engineeringnews.co.za.