| Retailers are busy marking down their goods in the hope of growing sales that have been devastated by the national lockdown and its impact on consumers and the economy. With big savings to be found everywhere, The Foschini Group is also offering a large discount in its upcoming rights issue. Participating shareholders can buy more shares at a 40% discount to the average price the stock traded at for the past month or so - and an even bigger discount to its current share price following a strong rise over the past week. Those not taking up their rights face dilution. Apart from funding growth, the retail group wants to strengthen its balance sheet due to the impact of Covid-19. It's not the only company doing so: Richemont recently trimmed its final dividend, while Hyprop has lowered its dividend payout ratio and Anglo American has taken measures to protect its balance sheet too. More on those stories to follow in today's newsletter, along with more tough measures by ArcelorMittal SA to make its business sustainable in an increasingly tough environment. All the latest DealMakers news too. The Foschini Group's planned acquisition of JET, Tsogo Sun Hotels' sale of its stake in a Seychelles beach resort and Quantum Foods newest shareholder all feature in Who's doing what this week in the South African M&A space? Finally, my apologies that you haven't received your newsletter for the past few of days - there was a gremlin in the system which we hope has been sorted out. I hope you have a good day. Stephen Gunnion Managing Editor, InceConnect
Latest from Ingham Analytics - "US data provides a chink of light in Covid-19 gloom" Savings rates in the United States have mushroomed, say Ingham Analytics (unlike in South Africa). Why should this be so? They point to a couple of dynamics at place, which may take you by surprise at a time of gloomy media headlines. Fascinating data is presented on durables sales but most surprising is data on personal consumer spending, disposable personal income and personal savings. With the US economy remaining the engine room of world consumption, there are interesting seeds in these numbers that have implications elsewhere. There is talk of a V, L, W and other alphabet soup style recovery. "US data provides a chink of light in Covid-19 gloom" gives food for thought. On Monday, Ingham Analytics released "(I)n (M)y (F)ace.....and yours", a pun in the title on the International Monetary Fund and what that institution could play - or not play - at a time when South Africa is perilously close to imminent bankruptcy - a debt trap - of its own making. Hardly surprising the country now has punishingly high nominal and real ten-year bond yields. As they have warned for months, the big four banks are likely to be worst affected under whatever scenario. Two notes last week are also worth a read in this context, "Fighting inflation" and "Rating retreat". | 
