Zuma Plot to oust Ramaphosa uncovered
Former president Jacob Zuma and several top ANC figures are plotting to remove President Cyril Ramaphosa, according to a report in the Sunday Times.
The Sunday Times stated that Zuma held a meeting with ANC secretary-general Ace Magashule, former North West premier Supra Mahumapelo, ANC Women’s League secretary-general Meokgo Matuba, and ANC Youth League KwaZulu-Natal secretary Thanduxolo Sabelo at the Maharani hotel in Durban on Thursday. “So secret was the Maharani meeting that those who were present denied having met Zuma, even though the Sunday Times is in possession of pictures of them together inside the hotel, and outside when they left,” stated the report.
The meeting was said to be about a strategy to “challenge the outcom…
Rand slightly recovered, outlook ambiguous
The Rand is currently slightly recovering, mainly in wake of positive outlooks within the emerging markets and despite a stronger Dollar in light of better employment figures showing a quarter of a million more jobs, a drop in long-term unemployment and a better than expected seasonal unemployment.
The Rand remains susceptible to the “trade-war” developments between the US and China / Turkey … most likely soon Africa as well as the pre-election campaigns and news pertaining to developments within parties, coalition prospects and cooperation failures.
The Rand will most likely hover at the current levels for a while, absorbing bad news from within South Africa through speculants, who did sell Rand positions empty and need to recov…
Rand in Free Fall as SA enters Recession
It was to be rather feared than expected, but watching clowns.com pretending to play “Government” had to prompt the bitter reality sooner or later. Well, “sooner” is now and South Africa is officially in a RECESSION!
After starting the week on the back foot, the rand continued to fall in early trade on Tuesday following the announcement by Stats SA that the country was in a technical recession. The local currency, which lost 1.5% against the dollar at the start of the week, fell below R15/$. At 10:15, it was changing hands at R15.06 to the greenback, down 1.3% on the day. It has fallen by over 2.5% against the dollar this week alone. At 11:30, Stats SA announced that the country’s real gross domestic product had contracted by 0.7% in…
Rand deteriorates further and Trade Deficit builds up
The Winter comes to an end, but the string of bad news on South African’s economy unfortunately not.
Last week was a bad one for the South African Rand. Amid a sharp emerging market sell-off sparked by volatility in the Turkish Lira and the Argentinian Peso, the Rand came under pressure in its own right. Although one of the worst performers of the Emerging Market Currency Basket, the reasons were not idiosyncratic to South Africa but rather a function of a broader rotation away from emerging markets that needed to be hedged. South Africa’s status as a sophisticated hedge against emerging market currency volatility means that it might ultimately be vulnerable to such sentiment and that was very clearly reflected last week. …
South Africa in State of Purgatory, while Ramaphosa idles in “Zuma-esque” Paralysis
It was with great relief when Zuma stepped down as president of the Republic and Hope re-appeared like a silver lining on the horizon as Cyril Ramaphosa took over the reins of an economically and socially battered country.
But this hope has faded, first slowly in disbelief, now much faster in light of clear facts. The former horror-cabinet based on nepotism and backdoor-deals is back with only a few incompetent faces being replaced. Crucial departments are run by the same clique, which already signed a note of intellectual bankruptcy in the past and created politically questionable precedents, ignoring any tact or reason. The Department of Home Affairs is the laughing stock of the migration experts on the continent, Human Settlements …
6 Reasons why the Rand is under severe Pressure
The weekend slide in the rand has caused many to panic, with some analysts attributing it to South African failures, presidential inefficiencies and other local elements. The truth, however, is far more complex. This is according to Bianca Botes, corporate treasury manager at Peregrine Treasury Solutions who said that the first key element to note is that this decline is not confined to South Africa. “Emerging markets as a whole have suffered severe blows due to the sell-off of riskier assets by investors, and there are many factors contributing to this sell-off,” she said.
In the following she outlined six of the biggest reasons for the rand’s decline:
Global Trade War
The trade war has played a key role in the global econo…
Rand Weakness excellerates in Light of Emerging Markets
The rand shot past R14 to the dollar on Friday afternoon, after emerging market currencies crashed and tensions in the global trade war heated up.
By 15h45 on Friday afternoon, the rand toppled almost 3% from its open at R13.74 to sit at R14.12, the weakest point since November 2017.
“The rand and other EM currencies on the back foot as sentiment sours,” Rand Merchant Bank analysts said in a note on Friday, adding that this was due to “geopolitical concerns and the negative impact of the U.S.-China trade spat on global growth.”
Notably, the weakening of the rand is in line with other emerging market currencies dropping, headlined by the Turkish lira, which saw a 12% crash that triggered a global wave of turbulence.
Load-Shedding Risk remains
Eskom said the high-risk period for loadshedding on 1 August has passed with a need for such blackouts. There is a risk of loadshedding starting at 5AM on 2 August, the company said, but “it will only be implemented if absolutely necessary.” Eskom said yesterday there is a “high risk” of Stage 2 loadshedding tonight between 17:00 and 21:00, peak usage time in South Africa.
This following two days of industrial action to impact operations at Eskom’s sites, the power utility said in a media statement.
Stage 2 calls for 2000MW to be rotationally load shed nationally at a given period. Eskom has sought the services of the Commission for Conciliation, Mediation and Arbitration (CCMA) to facilitate the engagement between the organisation…
Unemployment Rate increased to 27.2% !!
The unemployment rate in South Africa increased to 27.2 percent in the second quarter of 2018 from 26.7 percent in the previous period.
The number of unemployed rose by 103 thousand to 6.08 million while the number of employed fell by 90 thousand to 16.29 million.
Unemployment Rate in South Africa averaged 25.57 percent from 2000 until 2018, reaching an all time high of 31.20 percent in the first quarter of 2003 and a record low of 21.50 percent in the fourth quarter of 2008.
Rate Hike looms in light of Rand Weakness
The Rand’s plunge to the weakest in almost seven months against the dollar may push up South African inflation and necessitate interest-rate increases, SARB Deputy Governor Kuben Naidoo, currently in Portugal, said. While the SA Reserve Bank (SARB) doesn’t target a specific level of the rand, it responds to second-round effects on prices from currency weakness. “If we do think there is a risk of second-round effects, we will have to act,” he said. Inflation was 4.5% in April, in the middle of the central bank’s target range. “But if it rises and if it’s forecast for rise, we will have to act.”
The Reserve Bank held its key rate at 6.5% last month after cutting in July and March, citing the cost of oil and wage increases as risks to th…