| Vodacom is benefitting from rising demand for data as the lockdown forces more South Africans to work and entertain themselves at home. With the lockdown now extended until the end of the month, it expects the trend to continue for the short term as customers use technology to remain connected, educated and entertained. However, it says the medium-term economic downturn that will result from the Covid-19 pandemic is not good for any business. It's been particularly bad for retailers, with local shops that sell non-essential items closed for business. While UK retailers can still sell online, that may not be enough for Office, the chain of shoe stores Truworths bought almost five years ago. Sky News reported this week that it now plans to sell the UK chain as quickly as possible. Meanwhile, Ascendis Health has found a buyer for Scitec, the European sports nutrition business it bought four years ago, as it accelerates the disposal of non-core and underperforming businesses to pay down debt. Yesterday, I highlighted some of the implications of the Reserve Bank's cut in interest rates for banks. In its latest report, "A negative endowment", Ingham Analytics explains why falling interest rates have a negative effect on banks' capital and funding and why this is another risk for investors. Access the report here. Ingham Analytics has recently issued two notes under the "The Market's Twin Towers" title. This is now followed up by "Earnings, Earnings, Earnings - What will you pay for them now?" The note examines the prospects for corporate earnings. How far will earnings fall because of COVID-19? What would the market be prepared to pay for those earnings? Extensive US data is examined too. Click here to read. Also today, Tiger Brands has closed its Durban bakery after some employees tested positive for Covid-19 and HomeChoice is postponing the payment of its final dividend for 2019 as it preserves cash due to the pandemic. Also, all the latest M&A news from DealMakers. I hope you have a good weekend and stay safe. Stephen Gunnion Managing Editor, InceConnect
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