Friday July 22, 2011

From Creamer Media in Johannesburg, I’m Brad Dubbelman

Making headlines:

South Africa's main fuel sector union and employees at State power utility Eskom say that they had rejected employers' latest wage offers, raising tensions in strikes threatening Africa's largest economy. Fuel sector employers offered an 8% rise, 3% above inflation, but the Chemical, Energy, Paper, Printing, Wood and Allied Workers' Union wants 13%.
Employers are willing to pay the above-inflation wage increases to secure labour peace, while shedding jobs over the past several years in order to save on costs.  The ruling ANC, is against putting pressure on workers, fearing it would antagonise its long-standing union allies who have supplied it with millions of votes.

At least 18 people have been killed in clashes between police and demonstrators during violent nationwide protests against President Bingu wa Mutharika, the Malawian Health Ministry said yesterday. Spokesperson Henry Chimbali confirmed 10 deaths in the northern cities of Karonga and Mzuzu, where protesters angry at chronic fuel shortages and Mutharika's perceived autocracy ransacked the offices of his Democratic Progressive Party on Wednesday. The others died in the capital, Lilongwe, and the southern commercial hub of Blantyre after police and troops fired teargas to disperse crowds demanding Mutharika quit as leader of the impoverished nation of 13-million.

South Africa's government is appealing a decision by its own regulators to allow Wal-Mart to buy control of local retailer Massmart, a move that could tarnish the nation's credentials as an investor-friendly emerging market.
The appeal was filed by three government departments that had opposed the deal: Economic Development, Trade and Industry and Forestry and Fisheries. Wal-mart finalised its $2.4-billion purchase of 51% of discount retailer Massmart on June 20, after winning approval with minimal conditions from South Africa's Competition Tribunal.

Also making headlines:
Hopes of rescuing a small trade deal from the ashes of the Doha round of global talks are likely to be dashed, several trade negotiators said.
Egypt's new Cabinet was sworn in yesterday as the ruling army council tries to placate protesters demanding faster reforms and a deeper purge of former President Hosni Mubarak's allies.

And, South Africa's Reserve Bank left the repo rate unchanged at 5.5% yesterday as expected, saying the inflation forecast of the Bank had shown a slight near-term deterioration.

That’s a roundup of news making headlines today.