Headlines

South Africa’s Competition Tribunal ordered antitrust investigators to clarify charges of currency manipulation against more than 20 banks, drawing out a four-year legal battle, Reuters reported. The Tribunal, which oversees antitrust cases, found deficiencies in referrals prepared by the Competition Commission and gave the body 40 days to redraft its accusations, according to a statement on Wednesday. However, it also rejected attempts by banks to dismiss the case.

The Dubai International Financial Centre (DIFC) has enacted a new insolvency law which it said meets international best practice guidelines, International Adviser reported. The new Insolvency Law and Regulations, which comes into effect on 13 June 2019, creates a new debtor in possession bankruptcy regime which it said will place the DIFC “at the forefront of complicated debt restructurings”. Essa Kazim, governor of DIFC, said: “Ensuring that businesses and investors can operate across the region with confidence is crucial to our role in connecting the economies of East and West.

New Reserve Bank of India norms on debt restructuring are likely to hit the profitability of already distressed non-banking financial companies (NBFCs), Livemint reported. The guidelines mandate lenders to keep additional provisioning of 20% if a resolution plan is not implemented within 210 days from the date of default and 35% if not implemented within 365 days of default. This move to include NBFCs along with banks in the circular comes at a time when these firms are reworking their growth strategy in the wake of a liquidity crisis.

Boris Johnson, the leading candidate to become the U.K.’s next prime minister, laid out his plan to take the country out of the European Union by Oct. 31, if necessary without a divorce deal to smooth Britain’s exit, The Wall Street Journal reported. During a speech Wednesday launching his campaign, the former foreign secretary said he would seek to renegotiate Britain’s exit deal with the EU. At the same time, he would launch preparations across the country to weather a “no-deal” exit that many businesses and economists say would severely damage the economy.

Auto sales in China declined for an 11th straight month in May, with the slump in demand showing no sign of easing and the country’s automotive industry bracing for losses tied to new emissions standards, The Wall Street Journal reported. Sales for the latest month fell 16% from a year earlier, to 1.91 million vehicles. New vehicle emission standards are set take effect July 1, and dealers are scrambling to sell their older vehicles before they are disallowed at the end of June, often by offering steep discounts.

Glencore has hoisted the “for sale” sign over the Chad-focused oil business it acquired five years ago as the miner and commodity trader looks to bolster a share buyback programme by selling non-core assets, The Irish Times reported. The London-listed group, run by Ivan Glasenberg, bought Caracal Energy for $1.6 billion (€1.4 billion) in 2014 as part of a plan to grow its African oil business and secure barrels for its muscular trading arm. However, the deal was completed just before oil prices peaked and Glencore was subsequently forced to take a series of impairment charges.

Italy aims to convince the EU to delay until the autumn a decision on whether to open a disciplinary procedure over its finances, which is expected to look healthier after tax revenue data in July, four coalition sources said, The Irish Times reported. The European Commission, whose term ends on October 31st, will also look more like a lame duck after the summer and Rome will have more time to argue its case for a reform of EU fiscal rules, two of the sources said.

Philip Green’s Arcadia fashion group has secured backing for a controversial restructuring plan after a meeting of creditors voted to approve it, The Irish Times reported. The owner of brands such as Topshop and Wallis needed three-quarters of its unsecured creditors to back the plan, known as a company voluntary arrangement. At a meeting in London, Arcadia received that – although the company did not immediately divulge by what margin. The move clears the way for 23 of its 566 stores across Ireland and UK to close outright, with rents reduced by up to 70 per cent on 194 more.

In China, debt takes many shapes – on the books, off the books, or buried deep within the financial system. Now, debt can even be considered equity, Reuters reported. In a bid to boost the economy, China this week announced it would allow local governments to borrow more to fund infrastructure investment. As part of this push, it will let municipalities use the proceeds of special-purpose bonds as equity in railroad, highway and other projects. 2 Previously, local governments weren't able to use such debt as seed capital. Using debt proceeds to fund equity is a dangerous proposition.

Embattled Indian tycoon Anil Ambani pledged to reduce debt at his infrastructure-to-finance conglomerate to a “bare” minimum, seeking to bolster investor confidence in an empire that’s grappling with high leverage and delayed asset sales, Bloomberg News reported. The Reliance Anil Dhirubhai Ambani Group has repaid 350 billion rupees ($5 billion) in the past 14 months, an amount entirely raised through disposal of assets, Ambani, 60, told reporters in a rare conference call Tuesday without elaborating.