| More jobs are on the line as companies adjust to a post-Covid-19 operating environment. On Friday, automotive group Motus said it was closing 20 of its Tempest and Europcar car rental branches and cutting staff by at least 50%. It may also rationalise its network of dealership in the country. It has already started a section 189 process under the Labour Relations Act. Merafe Resources said its ferrochrome joint venture with Glencore had embarked on the same process. Meanwhile Telkom's shares rallied ahead of results due out today. It has also been cutting jobs and this will reflect in its full-year numbers due to the restructuring costs it's incurred. I'm at a loss as to why its share price has been so strong over the past few months, but it has risen 85% from its March lows. Hulamin's shares also rose sharply on Friday despite the aluminium products manufacturer detailing the extent of the losses it expects to report for its 2019 financial year. Also today, Basil Read says its business rescue has been hampered by Covid-19 and the national lockdown but its business rescue practitioners say they are pushing ahead with the process. In The Week Ahead, Chris Gilmour looks back at some of the news that drove equity markets last week and lists some of the results you should watch out for in the days ahead, including Brait and Mr Price. I hope you have a good week. Stephen Gunnion Managing Editor, InceConnect
The latest from Ingham Analytics. The call on Sasol has played out, falling sharply but stabilising on Friday at around R145, assisted by firmer oil and a weaker rand. Brent is now above $42/bbl and WTI above $40/bbl. Ingham Analytics say that the latest put/call oil hedges Sasol has taken out don't look that attractive in this context. They also point out that Sasol's bankers have had little choice but to relax the debt covenant ratio - Sasol owes $10 billion. They also calculate that Sasol will now face a 13% higher annual interest bill. Their calls on iron ore miners BHP and Kumba have also played out (see "Iron ore and steel defies Covid-19 macro gloom" and "Kumba, qaphela!") but their latest Kumba note advised taking money off the table, for reasons explained in the note. They also issued a note on BHP on Friday entitled "New hands on the financial tiller". This is a key appointment at an uncertain time, including for shareholders. David Lamont is currently CFO of CSL, an Australian biotechnology group listed on the ASX. Ingham Analytics say that vaccines have little in common with mining but in a Covid-19 world this recent experience won't go to waste and a fresh perspective will be useful. BHP has a huge capex programme that they can't afford to let overrun on cost, and a big chunk goes to petroleum, not iron ore. | 