If you're celebrating that we're almost through winter and had no load-shedding, I have some bad news for you.
You and I might have had an “uninterrupted” power supply this winter but it's going to cost our pockets, big time!
According to an article in the City Press newspaper this weekend, “The economy is set for a shock from the combined blows of Eskom's move to hike the cost of tw... ››› more
When the results of the Brexit referendum came on Friday 24 June 2016, the rand fell more than 8% against the dollar. This was the biggest fall against the American currency since 2008.
The international impact of Britain's decision to leave the European Union is making it difficult for investors to figure out what to invest in next. If you're feeling confused, there is one market that still o... ››› more
Last week, the Zimbabwean Government implemented a law causing major unrest in the border towns of Zimbabwe and South Africa.
The introduction of Statutory Instrument 64 of 2016 (SI64) restricts the import of certain goods from South Africa into Zimbabwe. This includes items like plastic pipes, doors, bottled water, window frames, baked beans, potato chips... Even peanut butter got the cut.
... ››› more
So unless you've been living under a rock for the last week you'll have noticed that the UK scored a massive own goal by voting to leave the European Union last Friday.
What a mess!
All those South African's now “safely” living in the UK and no doubt looking down their snooty noses at our own Nene-gate scandal (and the subsequent rand devaluation) are now facing the same sort of curren... ››› more
On 23 June 2016, I remember reading a Moneyweb article stating the “JSE, Rand shrug off Brexit fears”.
Another well-known market commentator said that “I think it is going to be a non-event, quite honestly, but if it so happens that they vote to leave, the markets are in for a massive shock. I think the markets are going to scramble.”
I even read a tweet from a trader stating that ... ››› more
When I heard the results of the Brexit vote last Friday, I was watching TV, clutching a cup of coffee and snuggling under a blanket with my sons in the diamond city, Kimberley.
As soon as the news bulletin ended, my phone started to buzz uncontrollably.
First, a message from my brother asking, “Did you see the Brexit result?” I ignored it. Then, a message from a colleague, “How could... ››› more
You already know that rumours of a recession are circulating around the investment markets.
2016 has been a tough year for the South African economy and the hard times don't look like they're going to stop any time soon.
Statistics South Africa shows that the economy is already down 1.2% for the year. We're in the middle of a drought and the price of food, electricity and water is steadily... ››› more
Anheuser-Busch InBev got conditional approval from the South African Competition Tribunal on Tuesday for its $100 billion acquisition of SABMIller (JSE:SAB) in South Africa.
The go-ahead didn't come without certain conditions though. The commission found that the deal raises several competition and public interest concerns and has moved to deal with these.
To ensure that South Africa doesn'... ››› more
Standard & Poor's and Fitch ratings agencies is expected to give their verdict on the country's rating by the end of this week.
The financial analysts at FSPInvest believe that a downgrade to junk status is inevitable. Even if this doesn't happen this month, it will happen before the end of 2016.
Here's what will happen to the economy and your investment portfolio if the downgrade does happ... ››› more
“The rand could hit R60 to the dollar by 2019: Chris Hart” - Business Tech
“Chris Hart: Nothing can prevent SA's slide to junk” - Fin24
I spoke to Chris about his recession and junk status predictions at the South African Investor member meeting on 24 May 2016. I asked him if he was misquoted in the media. However, he was adamant that he is right about these predictions.
One of the... ››› more
The situation is more serious than we thought...
As you'll see in a moment, it's become clear that South Africa is headed for a recession.
SA government economic policy has been doing very little to improve the state of our economy and now, the South African economy, consumers and investors are paying for the sins of our decision makers.
But all is not lost...
Due to the severity of... ››› more
Friday morning proved to be a good day on the JSE as it recovered from Thursday's sell-off which was triggered by news that US interest rates will increase sooner than expected. Global markets like the US and Asia are still struggling but the European markets joined the JSE in its recovery.
Considering that May is usually the worst month for the JSE, things are not looking as bad as investors... ››› more
Chris Hart, regular contributor to the South African Investor predicts that the rand will hit R60 to the dollar by 2019. He also believes that credit ratings agencies will soon declare South Africa's junk status before the end of this year. This is bad news for South African Investors. But just how worried should you be? And is there anything you can do to hedge your investments against this event... ››› more
The International Monetary Fund reports that South Africa is now Africa's third largest economy. Egypt has knocked us off our second place position.
South Africa's economy has been steadily declining since 2012. The South African currency weakened from an average of 8.20 rand to $1 in 2012, to 12.74 rand to $1 in 2015—a depreciation of more than 50%.
South Africa has barely managed to d... ››› more
1994, apartheid ended and democracy was born. It was the beginning of a bright future for South Africa.
Over two decades of freedom, South Africa worked hard to revitalise the declining economy left by apartheid.
Between 1994 and 2013, the South African economy experienced positive growth in every quarter except for 2 of the 78 quarters. In both instances where the South African economy expe... ››› more
Earlier today saw the release of the RMB/BER business confidence index. The data showed that business confidence is continuing to fall.
So what is putting pressure on business confidence?
Let's take a closer look…
The business confidence index falls to 36
Business confidence has hit 36 for the last quarter of the year, reports Fin24. This after the index fell “from 42 to... ››› more
Earlier today, Stats SA released its producer inflation data for October. The data showed that the rise was mostly due to climbing food prices.
This data could indicate that a jump higher in consumer inflation could be on the cards.
Let's take a closer look at what the data revealed…
Producer inflation rises to 4.2%
Producer inflation, as measured by the producer price ind... ››› more
There's no disputing that the rand is under severe pressure. The currency is feeling the strain yet again as the dollar continues on its path stronger.
The dollar is gaining on the prospect of an interest rate hike next month.
Let's take a closer look at what's going on…
The rand continues its slide against the dollar
The latest data out of the US gives more reason for the... ››› more
The rand has yet again struggled to hold under R14 to the dollar. The currency is under pressure as the market expects the US Federal Reserve to hike interest rates next month.
After the South African Reserve Bank raised interest rates last week, the local currency experienced a sharp rally, but most of these gains have disappeared.
Let's take a closer look at what's going on…
The ra... ››› more
Earlier today, Stats SA released its gross domestic product (GDP) data for the three months to the end of September.
This comes after two quarters of negative growth this year.
Let's take a closer look at what the data shows…
GDP rises 0.7% from July to September
GDP rose by 0.7% in the third quarter of the year in comparison to the second quarter when the economy contract... ››› more
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