Earlier this morning, reports surfaced that Toshiba Corp and Western Digital Corp have agreed to settle a dispute over Toshiba’s plans to sell its chip unit. A key obstacle to the $18bn sale of Toshiba Memory to a consortium led by Bain Capital has now been removed. Toshiba’s sale of Toshiba Memory was agreed in September and was forced upon the group as it attempts to cover billions of dollars in liabilities arising from its US nuclear power unit, Westinghouse. As it stands, Western Digital will now drop arbitration claims seeking to stop the sale of Toshiba Memory in exchange for Toshiba allowing Western Digital to invest in a new production line for advanced memory chips.
In currencies, after getting off to a strong start, the rand weakened yesterday afternoon, with investors turning their focus to upcoming events. These include the outcome of the US Federal Reserve’s latest policy meeting later today, as well as the ANC’s elective conference which is set to start on the 16th of December 2017. After a previous close of R13.607/$, the rand strengthened to a high of R13.58/$ at 10:40. However, by 17:00, the local currency had weakened to R13.653/$, before dropping to a low of R13.712/$ at 17:40. The rand erased some of those losses overnight to just above R13.67/$ this morning.
In Asia, markets are mostly lower, with the exception of the Hang Seng, as investors remained cautious ahead of the outcome of the US Federal Reserve’s latest policy meeting. The Japanese Nikkei led the losses, down 0.5%, with the index set to extend yesterday’s 0.32% decline and end lower for a second consecutive day. Meanwhile, the Shanghai Composite had fallen 0.12% by the break to 3,276.83 index points. The Australian ASX is flat down 0.07%. Lastly, the Hang Seng is set to end higher, up 0.17% and on track to resume its recent winning streak..
Don’t miss the action: Sign up today and receive FREE research, trade ideas, company insights, market views and exclusive seminar invites direct to your inbox.