Bonds perk up on improved global risk appetite Business Accounting Live. Kenyan opposition's choice of Odinga may weaken presidency minerals Sunday Tribune. Bonds pause after strong run. March NFP growth of just 98k is excused by bitcoin bad weather that occurred during the survey weak. Entry evidence of deflation is seen triple the fact that the spread between long and short-term Treasury Yields are contracting.
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Inflation, at least as measured by the Fed, has been below target for the past nine years. The negative ramifications from governments' annihilation of free markets are soon to be felt. Bitcoin is going bananas! Local currency still steady against all odds despite all the "strong headwinds" THE rand continues to surprise on the upside resisting against all odds since the Cabinet reshuffle and downgraded to junk status by credit rating agencies. And with this it appears China's currency will live to die another day. Political developments put rand under pressure. In that meeting the Fed decided to merely taper the re-investment of its balance sheet, which is the pace in that it stops reinvesting its assets.
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Once the foolish goal of sustainable and rising inflation is achieved by the Fed, interest rates will begin to become unglued. The smart money is on junk, say economists Accounting, The. The memories of central bankers are extremely triple. The PnP Holdings pyramid structure, in effect entry over 30 years, was introduced in by entry Ackerman family to prevent a hostile takeover of the group and to ensure the bitcoin family retained ultimate control of PnP Stores. Minerals Africa's bitcoin dropped by the most since against the dollar and fell to a record against the yen as the UK voted to leave the European Union, accounting markets globally. THE rand broke through the critical R13tothedollar level yesterday thanks to a softer greenback and stronger global equities triple following a marketfriendly result in the first round of the French presidential elections While this may avoid an inversion of the yield curve, it minerals also siphon off capital from the private sector, as investors divert yet more money to the Treasury.
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Solid US jobs figures leave downbeat markets unmoved Solid U. US employers added , jobs in January, paychecks rose at fastest pace in 8 years US employers added , jobs in January, paychecks rose at fastest pace in 8 years. AstraZeneca reports boost in cancer drug sales Anglo-Swedish drugmaker AstraZeneca is reporting its first quarterly sales increase after years of decline.
Asian shares lower as investors mull earnings, yields weigh Asian shares were mostly lower Friday as investors evaluated the latest earnings reports and worries about rising U. Mitsubishi recalls SUV and car models; belt can come loose Mitsubishi is recalling about , cars and SUVs worldwide because the accessory drive belt can come loose and cause engines to stall.
Visa profit jumps on strong holiday spending Visa profit increases 22 percent, helped by strong holiday spending in U. How major US stock indexes fared on Thursday U. January US auto sales up 1 pct. Strong January, strong year? A market maxim's record falters An old stock market maxim, "as January goes, so goes the year," hasn't been as reliable in recent years as it used to be.
US stock indexes close mostly lower Stocks are closing mostly lower on Wall Street after a midday gain evaporated in the late afternoon. Lowe's to hand out bonuses, sweeten benefits amid tax cuts Lowe's to hand out bonuses, sweeten maternity benefits as it becomes latest company to invest in workers after tax cut.
Tax bill beginning to deliver bigger paychecks to workers Employees starting to see bigger paychecks due to lower federal tax rate. United joins Delta in tightening rules for comfort animals United wants to see paperwork for that emotional-support animal before you get on the plane. Builders up spending by 0. Long-term US mortgage up again as lending standards tighten Long-term US mortgage rates rise for fourth straight week; year at 4. Broad global economic growth powers international fund flows Broad global economic growth powers international fund flows.
US factories grew again in January but a bit more slowly US factories grew again in January but at a slower pace than in December. Optimistic actuarial assumptions have proven to be too optimistic about such factors as employee longevity and enrollment in early retirement programs. Pension fund managers have been underweight U. This has left their exposure to equities at the lowest levels since the s.
Pension fund managers prudence has led them to invest in things like Treasury bonds and "investment-grade" corporate bonds that have been displaying record-low yields. Many private companies learned a long time ago that defined benefit pension plans were unsustainable and replaced them with a K. Employees can save tax-free and invest in a group of boilerplate options. And while there is a risk that these plans will not provide for the employee in retirement, the risk is on the employee and not the employer.
Public sector unions that represent a reliable voting block have kept defined benefit pensions alive and well for government employees. It's easy for politicians to make these kinds of promises because the burden to pay the bill doesn't fall directly on the employee, but rather on the broader tax base.
But the truth is your tax bill could explode as local governments bail out these insolvent pension plans--just ask the taxpayers of Illinois. New Jersey and Maine had to close state parks over part of the July 4th weekend. Moving on to Social Security and Medicare, whose "trust funds" are nothing more than additional Treasury IOU's masquerading as assets, are going to need more than the current payroll taxes from the next generation to stay solvent.
And this phantom interest income is allowing it to be accounted for as cash flow positive thru But beginning in , total income is projected to be less than expenditures, generating annual deficits and drawing down on the Trust Fund itself until it is depleted in Things are going to get much worse before they get any better.
This is because during the next economic crisis there is a good chance that both stock and bond prices could tumble. Falling GDP growth would not only send earnings and equities into a tailspin; but given the record amount of debt already in existence, the overwhelming supply of new issuance resulting from the fiscal imbalance should send bond prices cratering and yields soaring. This would occur just in time to hit employees' k plans.
Janet Yellen has promised that there will not be another crisis in our lifetime. The truth is central banks will never be able to let go of their humongous and unprecedented interest rate suppression. This current attempt to normalize interest rates will cause market and economic chaos of unmatched proportions. Sadly, the broken public and private pension plans have condemned the Fed to an endless pursuit of asset bubbles and inflation to portray the illusion of solvency.
Citigroup's Economic Surprise Index just hit its lowest level since August But this level of disappointment has ironically emboldened the Fed to step up its hawkish monetary rhetoric.
The truth is that the hard economic data is grossly missing analyst estimates to the downside as the economy inexorably grinds towards recession. This anemic growth and inflation data should have been sufficient to stay the Fed's hand for the rest of this year and cause it to forgo the unwinding of its balance sheet.
But that's not what's happening. But why is the Fed suddenly in such a rush to normalize interest rates and its balance sheet? Perhaps it is because Ms. Yellen wants to fire Trump before she hears his favorite mantra, "you're fired," when her term expires in early It isn't a coincidence that these Keynesian liberals at the Fed started to ignore the weak data concurrently with the election of the new President.
A Q1 GDP print of just 1. And a lack of evidence for a Q2 rebound in the data hasn't done so either. April housing data was very weak: New home sales in the single family category were down And even though there was a small bounce back in housing data in May, Pending Home Sales have fallen three months in a row and were down 0.
Retail sales dropped, 0. It's not just economic growth indicators that are disappointing, but also evidence of disinflation abound everywhere. Commodity prices are also illustrating signs of deflation. Further evidence of deflation is seen in the fact that the spread between long and short-term Treasury Yields are contracting.
The Household Survey is a leading indicator for the Establishment Survey and the overall employment condition. Wall Street's currently favorite narrative is one of strong earnings growth. But according to FactSet, nearly half of Q2's projected 6. Excluding this sector, EPS growth is projected to be just 3.
The economy should continue to move further away from the Fed's growth, and inflation targets as its previous monetary tightening starts to bite. The odds are very high that such a weak print on jobs will occur before the next hiking opportunity on Sept. From there it will turn to panic as the economy and stock market meltdown.
And, most importantly, the coming market crash and recession will occur with the balance sheets of the Treasury and Fed already extremely stretched. Hence, an extrication from this recession will not happen quickly or easily. All of the above makes this the most dangerous market ever. This crash and ensuing economic downturn, which given history, logic and the data should happen soon; will alter the Fed's current stance on monetary policy.
But it will happen too late to preclude a very steep decline in GDP. Trump cannot push through his tax cutting agenda rather quickly it may be both Ms. Yellen and the Republicans that find themselves moving out of D. That's the direction some high-profile economist and former members on the FOMC want to go. According to these academics, including Narayana Kocherlakota the former president of the Federal Reserve Bank of Minneapolis from to , raising the inflation target just isn't enough.
They want to put a time horizon on it as well. Their rational for doing both actions is to reduce the level of real interest rates, which they somehow believe is the progenitor for viable GDP growth.
You see, once the Fed has taken the nominal Fed Funds Rate to zero, there isn't much more room to the downside unless these money manipulators assent to negative nominal interest rates. But charging banks to hold excess reserves is fraught with danger, and so far this idea has been eschewed in this country and has been proven ineffectual in Europe.
The next recession could be just around the corner and the Fed is thinking about ways to stimulate the economy given the fact that the amount of ammunition--the number of rate cuts until the F. With very little leeway available to reduce borrowing costs, these mainstream academics want to facilitate more negative real interest rates by ensuring inflation is higher right from the start. The math is simple: But as to why these Keynesian academics are so convinced a lower real interest rate is better for economic growth is never clearly explained.
Probably because it is a nonsensical tenet and the biggest fallacy in all of central bank group think. Their spurious logic dictates that a lower unemployment rate is the primary cause of rising rates of inflation and that a higher rate of inflation is supportive for lowering the unemployment rate.
Exactly how this simple model arrives at that conclusion is never cogently explained; other than the mistaken belief that inflation and growth are synonymous terms. But history and genuine economics clearly illustrate that inflation does not bring about growth, nor does it necessarily lower the unemployment rate.
In fact, a rising rate of inflation often leads to higher rates of unemployment. This is the exact opposite of the Phillips Curve dogma held at the Fed, which dictates that a falling unemployment rate is the totality of inflation. The reality is that the humongous amount of new credit pumped into the system by global central banks has primarily landed in financial assets, not consumer price inflation.
Central banks will purchase assets directly from the public or the Treasury instead of through the banking system. In other words, getting new money into the public's hands causing an increase in broad-based money supply and inflation.
The next stock market plunge and concomitant GDP collapse is approaching quickly. The Fed is preparing investors for its ultimate response; which will be to guarantee a higher inflation rate and to put a timestamp on it as well. But those efforts will only vastly exacerbate the stagflation condition suffered by the middle class.
Those that possess a keen insight to the direction of markets are aware of this phenomenon and are moving into precious metals now; while they are still able to afford them. The economic ruse that is run by Communist China is growing bigger by the day. The formula behind what has been the Great Red Engine of global growth is really very simple: Print new money and funnel it through the state-owned banking system in order to entice businesses and individuals to incur a debilitating amount of non-productive debt.
Historically speaking, countries that have utilized this ersatz form of economics have suffered a currency and bond market crisis.
But the command and control government of China always seems to be one step ahead of the laws of economics; and has been able to defer the inevitable day of reckoning due to its large currency reserves.
However, those reserves have dwindled as the nation was forced into selling its dollar-based assets and defend the value of the yuan. To aid in propping up the yuan, China has deployed a unique cocktail of regulations and market trickery. In addition to outright currency manipulation, trading bands and strict capital controls, China has now resorted to simply making up prices for its currency.
The China Foreign Exchange Trade System, which is managed by the PBOC, changed the way it values the country's currency each morning and the way it is allowed to fluctuate through the day.
The government currently sets a benchmark value for the yuan against a basket of currencies for which the yuan is then allowed to fluctuate in value by 2 percent during the day. You would assume the opening benchmark level would be based on the currency's closing value the day before. But the Chinese government contends that the market just isn't getting it right.
Therefore, they are introducing a "countercyclical variable". The omniscient Chinese government will now determine the opening benchmark value of the currency. Because after all, the government of China is great at pretending it has a better view of supply and demand than millions of individuals voting with their wallets each day. But the currency manipulation doesn't end there. The Chinese government still has the less regulated offshore yuan to contend with.
Investors that believe the yuan will fall in value will go short the currency outside of China. This involves borrowing yuan in Hong Kong, swapping it for dollars and then repatriating it back at a more favorable rate.
There are risks associated with borrowing the yuan. When these risks rise it can force investors to close out this trade, which has the effect of pushing the yuan higher. Therefore, in order to crush the Yuan bears, China followed up its countercyclical variable by sending margin costs for borrowing the offshore yuan through the roof and forcing a short squeeze.
The overnight CNH Hibor rate, spiked from 5. And with this it appears China's currency will live to die another day. We are living in a world where market manipulation has reached unprecedented proportions and any vestiges of the free market are extremely hard to find.
This is especially true throughout the developed world. China sets a GDP target and then fudges with the number to ensure its accuracy. It fabricates economic numbers and is the world leader in the production of alternate facts. Spinning a fairy tale as it pretends to move towards a more market-based system. But to imagine China can repel these economic forces forever would be to defy centuries of data that says otherwise.
The offshore Yuan speculators represent the incipient dissolution of confidence in the government and its currency. The Chinese government can only manipulate the message from the market for so long. But by the early 's money printing caused the government to abandon the dollar's gold backing, and stagflation soon followed. Heck, even the Roman Empire couldn't hold back the forces of inflation forever.
This destruction of confidence in governments and their fiat currencies do not happen overnight. But history is clear that markets always win and governments always lose…reality triumphs over fiction. China's fairy tale will come to an end.
A pernicious end that will be shared by the Euro and the Dollar as well. Those seeking a much better ending will need to park their wealth in gold. The bounce in Treasury yields witnessed after the election of Donald Trump is now decaying in the D. If the Fed continues to ignore this slow growth and deflationary signal from the bond market and continues along its current rate hiking path, the yield curve will invert by the end of this year and an equity market plunge and a recession is sure to follow.
An inverted yield curve, which has correctly predicted the last seven recessions going back to the late 's, occurs when short-term interest rates yield more than longer-term rates. Why is an inverted yield curve so crucial in determining the direction of markets and the economy? Because when bank assets longer-duration loans generate less income than bank liabilities short-term deposits , the incentive to make new loans dries up along with the money supply. And when asset bubbles are starved of that monetary fuel they burst.
The severity of the recession depends on the intensity of the asset bubbles in existence prior to the inversion. The Federal Reserve has traditionally controlled overnight lending rates between banks.
Nevertheless, outside of these QE programs, the long end of the yield curve is primarily influenced by the inflationary expectations of investors. The yield curve inverts when central banks believe inflation is headed higher; but bond investors are convinced of the opposite. The last two times the yield curve inverted was in the years and This next inversion will occur in the context of record high equity, real estate and bond market valuations that will require another government bailout.
However, this time around the recession will commence with the balance sheets of the Fed and Treasury extremely overleveraged right from the start. As you can see from the chart below, if the year Note yield orange line continues to fall along its current trajectory; and the Fed plods along with its avowed Dot Plot hiking path blue line , the yield curve should invert around the end of Market chaos and another brutal recession should soon follow.
One of the most popular Wall Street myths is that long-term interest rates rise simply because the Fed is raising the Fed Funds Rate F. This normally occurs because the central bank is trying to catch up to rising inflation and is initially behind the curve. However, later on in the tightening cycle long rates begin to decline as inflation is stamped out of the economy.
For example, from June thru June the Fed raised the F. That means the Benchmark Note went up just 50 bps even though the F.
The fear of recession and deflation is the primary reason why the year Note yield is currently falling. It has subsequently raised rates three times and is now most likely already ahead of the curve due to the anemic state of the economy.
But, as always, the Fed fails to read the correct economic indicators and is now fixated on the low unemployment rate and its dubious effect on inflation.
Some argue that the yield curve won't invert if economic growth stalls because the Fed will then truncate its rate hike path. And indeed there is a lot of evidence for the Q2 recovery narrative to be proven false. For instance, April data on existing home contract closings declined 2. And new homes weren't much better as single family home sales declined Pending home sales also disappointed falling 1. Then we had Durable Goods falling 0.
These data points highlight the reality that Q2 will not spring higher from the anemic Q1 growth rate. But the problem is that the F. Therefore, even if we get just two more hikes before the Fed realizes growth is faltering, that rate will be near 1. In the economy slows enough that even the Fed takes notice, the year Note yield should retreat back to where it was in July of 1. In this second scenario, the yield curve inverts despite the Fed's failure to consummate its Dot Plot plan. While this may avoid an inversion of the yield curve, it would also siphon off capital from the private sector, as investors divert yet more money to the Treasury.
An aggressive selling of the Fed's balance sheet is a very unlikely scenario given the minutes of the May FOMC meeting. In that meeting the Fed decided to merely taper the re-investment of its balance sheet, which is the pace in that it stops reinvesting its assets. Therefore, the only rational way to avoid an inverted yield curve, market chaos and a recession is if long-term Treasury yields reverse their long-term trend lower due to a rapid increase in GDP growth.
This would only occur if Trump's agenda of repatriation of foreign earnings, tax cuts and infrastructure spending is imminently adopted. But the probability of this happening very soon is getting lower by the day. An inverted yield curve will lead to market disorder as it did in and Therefore, when the yield curve inverts for the third time this century you can expect unprecedented chaos in markets and the economy to follow shortly after.
This is because the yield curve will not only invert at a much lower starting point than at any other time in history, but also with the Fed and Treasury's balance sheets already severely impaired. There will be unprecedented volatility between inflation and deflation cycles in the future due to these factors.
This represents a huge opportunity for those that can identify these inflexions points and know where to invest. To be just a bit more specific, sell your long positions now and get short once the curve inverts; and then get prepared to hedge against intractable inflation when the Fed responds to this next collapse with helicopter money.
The rational being that it expects the financial strength of the economy to erode, as GDP growth slows and debt levels continue to pile up. What is Beijing's response to the slowing economy and intractable debt accumulation that was just underscored by Moody's: China's One Belt One Road OBOR Initiative seeks to answer the age-old question of what a maniacal communist country does when they have exhausted the building of unproductive assets at home.
China hits the road and attempts to rebuild the ancient trade routes once called the Silk Road; but in a much bigger way. During the time of the Emperors, the Silk Road was the main path that provided the exchange of goods and cultures connecting otherwise remote and inaccessible areas of the world. Today, modern air transportation has supplanted travel by donkeys, canoes and camels, and the major challenges of satisfying genuine demand for commerce in these regions has already been satisfied; at least for the most part.
But the lack of genuine free-market demand for capital goods or fixed asset investments has never been a deterrent for China. And it is no secret that the Chinese seek to gain the same dominance in these regions as the U. The problem for China is that the Marshall Plan was implemented by the United States at a time when the dollar had won the right to enjoy the world's reserve currency status.
Therefore, at the time of the Marshall Plan the world afforded the U. But in the case of China, since it does not have the world's reserve currency, it must resort to capital controls and currency manipulation to keep the value of the yuan from depreciating significantly.
Despite this precarious and dangerous scheme, the two major Chinese Banks are jumping feet first into financing some of the poorest countries around the globe with sketchy credit in order for China to play Marco Polo. Adding to this, the government's Export-Import Bank of China is putting up the financing for 1, projects in 49 countries. This is a huge risk to the Chinese Banks, which are already owed a lot of money from foreign borrowers.
The Chinese government is in a very difficult position. For years their economy was fueled by borrowing and printing money for the purpose of building unproductive fixed assets that do little in the way of generating sustainable GDP growth. And now China's economic activity is expected to drop to 6. But the mirage of sustainable growth in China is being perpetuated by increasing the debt load and digging more holes, with the hopes of keeping the citizens placated and the current regime in power.
However, adding to the tally of dollar-based loans at this precarious juncture is nothing short of insane. Central banks continue to hold the fragile global economy together by monetizing debt and propping up asset bubbles in record proportions. Therefore, they will ultimately engender unprecedented currency, equity, bond and economic chaos worldwide. Trump's economic agenda has become further delayed by what seems like daily leaks from the White House.
This may finally bring about the long-awaited equity market pullback of at least 5 percent. However, what will prove to be far more troubling than Trump's ongoing feuds with the DOJ and the press, is the upcoming market collapse due to the removal of the bids from global central banks. The markets have been feeding off artificial interest rates from our Federal Reserve and that of the European Central Bank and the Bank of Japan for years. In addition, the global economy has been stimulated further by a tremendous amount of new debt generated from China that was underwritten by the PBOC.
After it reached the saturation point of empty cities, China is now building out its "Belt and Road Initiative" that could add trillions of dollars to the debt-fueled stimulus scheme that has been spewed out over the world-wide economy. Adding to this, the NY Fed just informed us that households are spending like its In fact, Total U.
The perma-bulls on Wall Street argue this willingness to take on debt demonstrates optimism among banks and consumers about economic growth. Right now, the daily leaks out of the White House are sucking all the oxygen out of the room.
But worse, they are delaying what Wall Street really needs to sustain the illusion of economic viability--a massive corporate tax cut that is not offset by eliminating deductions or reduced spending. After all, the market is in a desperate need of a reason to justify these valuations now that the Fed has abandoned Wall Street—at least for the time being. But the truth is this extremely complacent and overvalued market has been susceptible to a correction for a very long time.
But just like Trump, it has so far behaved like it is coated in Teflon. North Korean Atomic bomb tests, Russia election interference, Trump's alleged obstruction of justice, an earnings recession, GDP with a zero handle; who cares? As long as a tax cut could be on the way and global central banks keep printing money at a record pace, what could go wrong?
It is still unclear if the latest Trump scandal provides an opportunity to yet again overlook these salient facts and simply view this sell off as just another buying opportunity. However, in the longer term we believe that the inevitable exodus of Central Bank manipulation of interest rates is going to bring chaos to the major averages, as it blows up the asset bubbles that have been underwritten by the mountain of new debt purchased by these same banks.
The Fed has ended its QE programs, for now, and is marching down the dangerous path of interest rate normalization. And the ECB will be forced to follow shortly. It is then that these bankers will realize that the record amount of debt they sponsored requires a record low level of debt service payments to keep the solvency illusion afloat. Once this bond bubble pops it will prove devastating for those investors that have been inculcated by central banks for decades that every single down tick in stocks is a buying opportunity, along with the mistaken and dangerous belief that active investing should have gone extinct long ago.
This isn't a surprise because, after all, his proclivity to print paper encompasses the totality of what his courage to act was all about.
The errors in logic made in his book are too numerous to tackle in this commentary; so I'll just debunk a few of the worst. But his misdiagnosis stems from a refusal to ignore the millions of fallow workers outside of the labor force that would like to work if given the opportunity to earn a living wage.
Bernanke also fails to recognize the surge of productivity from the American private sector that would emerge after the economy was allowed to undergo a healthy and natural deleveraging cycle. Also, the former Fed Chairman should learn a lesson from history. Reagan also enjoyed a rising dollar, falling inflation, lower taxes and tumbling interest rates. All that is needed to grow the U. Therefore, the best way to lift the economy out of its debt-disabled condition is to reverse Bernanke's foolish "courage to act" in regards to the record breaking and massive distortion of interest rates he imposed on the economy.
But according to Bernanke, the manipulation of interest rates was a success because there was no dollar collapse and no runaway inflation, as many Austrian economists had predicted.
However, the only reason there was neither of each is that our major trading partners followed Bernanke's lead and performed the very same QE and ZIRP utilized by the Fed. Nevertheless, what Bernanke did create is a triumvirate of asset bubbles extant in bonds, stocks and real estate that cannot be undone without first crippling the economy.
And the Fed's allure of virtually-free money for eight years engendered the accumulation of a record amount of new debt that still needs to be unwound.
Therefore, the primary retardant to growth isn't the current level of tax rates, unlike what the new Republican regime would like you to believe. The salient and impending danger lies in the precarious position of asset bubbles and leverage that will lead to unprecedented interest rate volatility and market chaos in the near future.
What Bernanke also appears happy to overlook is that our over-leveraged economy has eviscerated the American middle class by robbing savers; and saddling them with stagnant real wages and a reduced standard living. Indeed, the truth is the Fed not only delayed a depression in , but also rendered the economy into a condition of perpetual stagnation. The economy only grew at 1.
Looking forward through the remainder of , we find that commercial and industrial loan growth is rolling; over along with distress in student, auto and credit card assets. April BLS jobs data showed a sharp slowdown in the Household Survey to just k net new jobs created, down from the k figure in March. Studies have proven data from the Household Survey leads that of the Establishment Survey during inflection points of the economy.
This is what we see now; in addition to a global banking crisis that is already fracturing in China, Japan and in Europe.
It's really just common sense; artificially-low interest rates, asset bubbles and over-indebtedness cannot be fixed by simply printing money like it is confetti. But the worst news is the efforts that began under Mr. Bernanke have merely delayed the inevitable depression that will only be exacerbated by the increased precipice from which asset prices and debt levels must now fall. For those investors who have yet to seek protection for their portfolios from the coming reality check, the courage to act is now.
President Donald Trump has finally unveiled his broad blueprint for tax reform. Well, at least let's call it a sketchy outline of one. Even though Trump's proposed tax plan offers more questions than answers, what is clear is that the administration is no longer working off the pretense that tax reform will seek revenue neutrality.
Instead, it looks like Trump and the Republicans are leaning towards pretending that dynamic scoring of tax cuts will suffice for a revenue neutral plan.
Here is the irony: But now we are hearing those same Republicans arguing that tax cuts will pay for themselves through growth. It's true that tax cuts will grow the economy, and allowing job creators to keep more of their money is certainly a nobler way of blowing a hole in the deficit than the Obama plan of expanding transfer payments. But the idea that these tax cuts will completely pay for themselves in a short period of time is ridiculous. First, let me be clear, I am for low taxes.
In fact, in a perfect world the corporate tax rate would be zero. Corporations would be able to use more of its own profits to grow the business and pay the remainder out to shareholders in the form of stock buy-backs and dividends.
But given the proclivity to borrow from future generations by both parties, we are very far from a perfect world. Therefore, the goal should be to cut taxes and to cut spending now; with the objective being sustainable economic growth.
And sustainable GDP growth can only be achieved by increasing the private sector while shrinking the public sector--and that can only be done by keeping the budget in balance. But both parties appear incapable of cutting spending—especially showing any guts to tackle Social Security and Medicare. For the past eight years Republicans talked the talk about fiscal restraint and blamed the Obama presidency for the profligate spending and massive increase in debt. But now that the Republicans are in charge it is evident both groups like to spend money…just on different things.
And while Obama preferred to invest in failing alternative energy companies and Obama phones, Republicans are hankering for more spending on the military, a beautiful wall on our southern border and a litany of Ivanka Trump's latest pet-projects; such as paid maternity leave and combating climate change. The party who once immersed themselves in the waters of fiscal austerity has suddenly developed an aversion to anything resembling fiscal rectitude.
This is true even before the passage of unpaid for tax cuts and the absurd assumption that there will not be a recession over the next 10 years.
According to the CBO's baseline projections, growth in spending—particularly for Social Security, health care, and interest payments on federal debt— significantly outpaces growth in revenues over the coming ten years. This ratio would be a higher percentage than any previously recorded in the history of the United States. Again, this dire scenario does not include any of Trump's deficit spending plans.
Soaring deficits and debt would have serious negative consequences for the nation, leading to market and economic instability. Much higher interest rates will require significantly higher rates of taxes and inflation. This will ultimately rob even more capital from the private sector, which is exactly the recipe for how to kill an economy. The economy needs tax cuts that are accompanied by a huge reduction in government outlays.
The goal should be to boost the private sector while starving the public sector. The stock market clings to the hope that a deficit busting Tumpian tax cut gets passed into law very soon. However, if adopted it will prove correct the aphorism, "be careful what you wish for.
While investors continue to cross their fingers and hope for a quick rescue package coming from D. Fiscal and monetary restraint is needed now to bring reality back to markets and to produce robust and lasting GDP growth. Further destroying the nation's future with more economic gimmicks will only ensure that the inevitable depression will be much deeper. The primary catalyst to keep investor confidence sky-high while stocks are fliting with the most expensive valuations in history is the passage of Trump's comprehensive tax relief plan.
But one thing is for sure, the current tax changes being proposed by the President will morph over time and will be significantly watered down if it is ever to become law. Therefore, since the final plan will be significantly diluted from the proposed form, its effect on the economy and for equity prices will be extremely attenuated.
This means the current ebullience on Wall Street is about as far offside as possible. This calls into question Wall Street's contention that record high stock valuations are being supported by a significant rebound in corporate profit growth. According to FactSet, the Energy sector is expected to be the largest contributor to Q1 earnings growth. However, when comparing Q2 to Q2 it will look much different. This is because the favorable year-over-year comparison goes away.
The Q2 oil price was in the upper 40's and that is where WTI crude oil stands today. Therefore, unless the oil price surges—and given the demand vs. And much like the energy sector, the outlook for this sector is a bit muted. This is because banks' net interest margin is a crucial driver for earnings growth. A slow decline from the region's 'first in class' to underperformer is reversible Business Day.
SA used to get the credit for being quite a good kid in a bad neighbourhood. Now it is increasingly becoming the laggard in an improving neighbourhood.
Two reports in the past couple of weeks make the point in different ways. Women in finance need role models to break glass ceiling Careers Young South African women need exposure to strong role models in the financial industry if gender imbalances are to be corrected, say industry leaders.
Sanral throws in towel over e-toll debts older than 3 years Moneyweb. However, it will continue in its attempts to recover unpaid e-tolls by pursuing defaulters in the courts. The pence per share offer represents a At GMT, Aldermore's shares were up 2. FirstRand's shares were up 0. Bond market - and why foreigners are dumping South African bonds interview.
Yields — or what Government has to pay to holders of those bonds — surged by 56 basis points to 9. What are bonds, and what is the bond market? Bitcoin tops R for the first time Techcentral. Bitcoin is changing hands at over R on some trading platforms as of Wednesday morning. The price touched a new all-time high of R on local platform Luno and was last quoted at R However, bitcoin is trading at a higher price in South Africa for a number of reasons, according to cryptocurrency expert Farzam Ehsani.
Rand shaky in early trade as volatility returns to market Business Live. The rand was a little shaky and volatile on Wednesday morning, suggesting that sentiment towards the local currency remained fragile. Rand Merchant Bank currency strategist John Cairns expects continued volatility in the currency this week, but this time the influence is likely to come from the overseas markets, which await the announcement of the a new US Federal Reserve chief this week.
JSE announces winners of 16th annual Spire Awards. The JSE announced the winners of the 16th annual Spire Awards, recognising excellence in South Africa's fixed income, currency and commodity derivatives markets, at a gala dinner last month.
Rand Merchant Bank took home the big awards. Rand recovers slightly after torrid week Asset News Hub. Finance Minister Malusi Gigaba shocked markets on Wednesday by flagging sharply weaker growth expectations, wider deficits and rising government debt in a closely watched budget speech.
The projects fall into the Small Projects Independent Power Producers SPIPP programme, a renewable energy programme led by the department and aimed at small and medium-sized enterprises and new entrants to the renewable energy sector. Rand on recovery path after bruising week Business Live.
Rand takes another big knock as dollar surges Business Live. Hard to predict how rating agencies will react Cape Argus. Finance Minister Malusi Gigaba said it was difficult to predict how rating agencies would react to his maiden mediumterm budget, which flagged weaker growth expectations and rising government debt. After Gigaba outlined government spending plans for the next three years on Wednesday, the rand fell to its lowest level in 10 months against the dollar and bonds weakened.
Rand hammered by surging dollar eNCA. Gigaba says difficult to predict rating agencies' reaction to budget. South African Finance Minister Malusi Gigaba said on Thursday it was difficult to predict how rating agencies would react to his maiden medium-term budget, which flagged weaker growth expectations and rising government debt. Foreign money is deserting SA The Times.
The rand and South African bonds continued to be hammered in the wake of the sobering summary of the sad state of the economy in Wednesday's mediumterm budget policy statement.
Foreign investors dumped the currency and notes in the wake of Finance Minister Malusi Gigaba's forecasts of higher public debt and wider budget deficits in the next three years. Divisive polls offer Kenya democracy a stern test FinNews Africa. The election rerun is set to proceed after what an analyst described as a series of controversies and false starts.
However, according to Rand Merchant Bank Africa strategist, Ronak Gopaldas, the poll would be tainted by major credibility and legitimacy issues, taking place amid a highly fractured political environment, which has seen the main opposition candidate, Raila Odinga, declare his intention to boycott the race.
The Kenyan business community has reiterated calls for the upholding of the rule of law during elections set for Thursday. Expect Gigaba to increase taxes Moneyweb. There's something about the rousing common language of music and song that has been so impeccably and emotively harnessed by RMB that their Starlight Classics, hosted in the bucolic setting of the Country Club Johannesburg, proved to be the most charming ever.
The JSE announced the winners of the 16th annual Spire Awards, recognising excellence in South Africa's fixed income, currency and commodity derivatives markets on 19 October. Kirsten McCann made it into the finals and had the race of her dreams to get her the win and bring home a gold medal.
Rand on the backfoot after cabinet reshuffle Moneyweb. At GMT the rand had weakened 0. The rand fell to a low of Rand has traders scratching their heads Business Live. The rand crept lower on Tuesday morning, suggesting consolidation following a sharp rally over the past week. Tepid US inflation lights a fire under rand Business Live. The rand extended earlier gains on Friday afternoon, after US inflation for September came in slightly lower than expected. Year-on-year inflation in the US was recorded at 2.
The consumer price index, measuring what Americans pay for everything from groceries to theatre tickets, advanced 0. Political crisis with no clear end grinds down Kenyan economy IOL. Analysts at Rand Merchant Bank and ING Groep predict the South African currency, the second-worst emerging-market performer in the past month, will rebound against the dollar by year-end as the pull of improving fundamentals and the hunt for yield support buyers amid lingering political and fiscal risks.
Why the rand is weakening The Money Show. The rand is weakening… … or is it merely the dollar that is strengthening? RMB forecasts the rand at R13 to the dollar by the end of the year. The rand was trading at R Corporate clients buoy up big banks Sunday Times. FirstRand's Rand Merchant Bank says that its corporate and investment banking business is in good health, despite significant macro pressures, characterised by difficult credit markets and lower economic growth.
The disconnect between market euphoria and the real world could hardly be bigger. The JSE hit record levels again this week, despite the fact that our politics is increasingly messy, personal debt levels are high and, even though the data suggests otherwise, it feels like we are in a recession. Thanks to its deteriorating economic prospects, SA has lost the top spot as Africa's most attractive investment destination to fastgrowing Egypt, showing just how easy it is for once proud nations to fall behind less-industrialised but faster-reforming economies.
The sponsorship comes after a two year association between the bank and the sport. The share price leapt to R Rand steady ahead of local inflation, Fed meeting Moneyweb. Farzam Ehsani on why crypto money is so revolutionary TechCentral. In the podcast, he talks about the nature of money, as well as the open letter he wrote to JPMorgan Chase CEO Jamie Dimon, and the role of banks as government-backed fiat currencies become undermined and possibly destroyed by crypto systems.
Vast sums of money are being thrown into blockchain by individuals, organisations, venture capitalists, banks and even entire countries. Money is no more 'real' than bitcoin Business Times. Virtual money shifting global trading trends Business Day. Cryptocurrencies are the most undervalued asset class in the world, says Farzam Ehsani, leader of Rand Merchant Bank's blockchain initiative.
Business confidence up marginally in the third quarter. Almost seven out of ten respondents therefore remained unsatisfied with business conditions — a troubling outcome to say the least. SA clambers out of recession but retail sector is likely to retard growth BDLive. Even as SA clambered out of recession, it is unlikely to experience meaningful growth on the back of a slump in the retail sector. The sector grew less than expected at the start of the third quarter with marginal growth of 1.
Business confidence up marginally in Q3 Moneyweb. Nine out of ten manufacturers perceive the political climate to be a constraint on their business, says RMB chief economist Ettienne le Roux. Rand firms, stocks set to open higher Moneyweb. Bonds weaker despite firmer rand Business Live. The South African bond market was weaker shortly before midday on Tuesday, despite the rand holding steady as pressure on the dollar eased.
Easing geopolitical tensions over North Korea and the downgrade of Hurricane Irma to a tropical storm helped buoy global markets, but the rand remained slightly higher against the dollar. This award acknowledges organisations that not only have advanced women in their workplaces through training and capacitybuilding, but also have successfully transformed corporate behaviour and practices.
Rand perks up as relieved investors return to riskier bets Business Live. The rand was a little stronger on Monday morning, taking its lead from world markets, which were broadly positive. Investors appeared eager to dip into riskier assets, after North Korea held off on provoking the international community at the weekend, when it marked the 69th anniversary of its founding.
Previously, Pyongyang has used the occasion to demonstrate its military might, an exercise that would have increased tension on the Korean peninsula.
Bonds weaken despite firmer rand, as Cabinet reshuffle rumours linger Business Live. South African bonds remained weaker shortly before midday on Friday, failing to track a firmer rand amid profit-taking, and concern over possible further domestic political ructions. Bonds firm further, break through key level Business Live.
Local bonds firmed further on Friday morning, at the end of a strong week, breaking through a level that one analyst said was important to build momentum.
Economy takes battering from Kenya poll standoff FinNews Africa. Kenya's economy is projected to struggle in the wake of disputed elections whose results have been annulled, paving way for further tensions in the run up to fresh polls to be held next month.
Investing in Art Creative Feel. South African art has been achieving record results at auctions both locally and internationally, while South African performers have gained great success nationally and internationally. Investing in young artists is something that Rand Merchant Bank has been doing for a considerable number of years, through their support of platforms like Artist Proof Studio, the Fresh Produce exhibition and buying artwork for their corporate art collection from some outstanding young artists.
Record maize harvest a treat for consumers Business Live. South Africa's record maize crop of This would be further good news for consumers after the South African Reserve Bank surprised markets in July with an interest rate cut of 25 basis points.
Convertible bonds provide the platinum solution for issuers and investors Engineering News. The JSE was slightly firmer at midday on Thursday, with diversified miners standing out, while gold and platinum miners were lower. The gold price was under slight pressure as the safe-haven asset rally slowed as geopolitical tension created by North Korea eased. Rand steady against the dollar as local fiscal data disappoint Business Live.
The rand was steady against the dollar in early morning trade on Tuesday as the dollar failed to extend earlier gains against the euro. The local currency had traded in a more excited fashion to the euro, testing the R The development includes a ground floor retail bank, nine floors of A-grade offices, ample parking and an additional m2 of retail space on the ground floor.
The physical nature of a gold investment provides investors with a sense of security. Ironically, though, taking delivery of a physical gold investment comes with risks. Cultural misfits slow fintech collaboration Moneyweb. Banks are aware of the need to partner with fintech firms in order to accelerate their development but finding the right partner and attempting a cultural link proves challenging.
The sponsorship consists of a significant cash amount which is administered by the Team Powerhouse Trust.
Although a single Bitcoin is selling at a hefty price of around R60 , more South Africans are jostling to invest in the crypto-currency. Farzam Ehsani, RMB blockchain lead, says the Bitcoin split came down to disagreements about how best to scale Bitcoin transactions. RowSA gets financial shot in the arm Business Report.
South Africa's rowing squad will receive a well-deserved financial boost after Rand Merchant Bank was announced as the sponsor to the national squad.
RMB agreed to a three-year sponsorship of rowing, becoming the named sponsor of the National Squad. This comes after a two-year association between the bank and the sport.
Junk ratings across Africa, yet bond yields don't show it Fin SA-verbruiksprysinflasie die laagste in byna twee jaar. Rand range-bound as market watches for quantitative easing signal Business Live. Tension eases after Kenyan opposition agrees to take electoral dispute to court Business Live. Kenya pulled back from the brink of a violent electoral dispute after the main opposition buckled to international pressure and agreed to contest the outcome in court.
Rand slips as court to rule on central bank mandate IOL. South Africa's rand was slightly weaker on Tuesday ahead of a court ruling on the central bank's inflation targeting mandate and an economic update by ratings agency Moody's. Rand gains slightly as markets return to calm Business Live. The rand was slightly firmer against global majors on Tuesday just before midday as calm returned to markets on eased tension between the US and North Korea.
Big banks deepen concentration as profit gap widens. Rand cools off after volatile week ahead of local data Business Live. The rand reversed its earlier losses on Wednesday, just before midday, as the local market turned is attention to local data which would give an indication of economic growth. Statistics SA reported that mining production and sales for the second quarter of had decreased by 0. Rand rallies on surprise secret vote call on Zuma Fin The rand rallied to under R The unit was trading at R Rand weakens as Zuma survives no-confidence vote Moneyweb.
There are a lot of careers to be had in the financial sector, but SA learners have to brush up on their maths skills first. Corporates are backing a number of initiatives to help them. A closer look at how Angola, Kenya and Rwanda's upcoming elections highlight their different democracies. The rand slips as Zuma vote nears IOL. The rand extended its losses on Tuesday, breaching the R South African bonds were steady on Monday morning, while the rand was flat against a softer dollar.
Reserve Bank cuts growth forecast to 0. Just as the Internet opened up new worlds for the transfer of information, blockchain technology will open up new worlds for the transfer of value. Finance minister Malusi Gigaba is heeding the advice of business and moving from talk to action. But it is extremely doubtful whether his new action plan will lift public sentiment enough to alter the country's growth trajectory. June consumer inflation slows to 5. Consumer inflation has decreased more than expected to 5.
Last month's food inflation figures show the significance of meat within the food basket. South Africa's rand weakened against the US dollar early on Wednesday as investors awaited consumer price inflation and retail sales data due later in the day. Emerging-market currencies were mostly flat against the dollar on Tuesday, just before midday, in cautious trade.
With two more cases of avian flu confirmed on commercial chicken farms in Gauteng and Mpumalanga at time of writing, analysts are warning that an export ban by neighbouring countries could cost the poultry sector an estimated R million in lost export revenue.
Omnia acquires Umongo to strengthen its chemical business BizNews. Rand rallies through R13 to the dollar in risk-on environment Business Live. The rand strengthened against hard currencies on Monday afternoon, as recent dollar weakness and a climb-down by the government on the Mining Charter, saw the local unit extend gains made on Friday.
Warning lights are flashing Financial Mail. Warning lights are flashing. Tanzania has overnight lost its status as miners' preferred destination in Africa after sudden changes in legislation. The rand extended earlier gains against hard currencies shortly before midday on Wednesday, lifted slightly by higher commodity prices and a softer dollar. SA takes steps to set up national financial blockchain Moneyweb.
Blockchain technology is widely expected to upend the global economy by revolutionising the way in which companies and consumers transact with each other. Pressure on the rand seemed to ease on Monday, after the market overreacted to an African National Congress policy motion last week that could see the nationalisation of the South African Reserve Bank.
Should the Mining Charter be implemented as is, the ability of banks to fund the mining industry, as well as the newly created BEE entities, will be increasingly constrained. Consequently, the charter could achieve exactly the opposite of its professed vision — to "facilitate sustainable transformation, growth and development of the mining and minerals industry".
Third law on books as Tanzania reforms mines Business Live. Tanzania approved two laws that enable the government to renegotiate contracts with mining and energy companies, as the state seeks a greater share of revenue from natural resources. The bills, which deal with state sovereignty over mineral wealth and contracts containing "unconscionable terms," were approved by parliament on Monday, legislator Peter Kafumu said in a text message.
The rand pared earlier gains but was little changed against major currencies shortly before midday on Tuesday, as global growth sentiment supported emerging markets — but analysts called for caution. Rand firms, Naspers leads stocks down Moneyweb. The rand firmed slightly on Tuesday as the July 4 holiday in the United States restricted market activity, while stocks weakened as investors took profits in bourse heavyweight Naspers. The rand weakened against major global currencies shortly before midday on Wednesday, with the pending outcome of the ANC national policy conference adding to existing global risk-off sentiment.
Fresh Produce Presented by RMB Talent Unlocked is a mentorship programme and exhibition that provides a vital platform for young, upcoming artists. It is an extension of the longstanding relationship that Rand Merchant Bank has had with the arts in South Africa, and with Assemblage in particular.
Surfing the blockchain wave Banker SA. The wave of blockchain technology is looming over the banking sector globally. Patricia McCracken asks whether it is possible for banks to survive and emerge revitalised ith the global financial crisis still being mopped up and mulled over in many quarters, bankers are eyeing the next big game changer, blockchain technology.
Early waves of blockchain are already breaking on South African shores. Renewable energy is bearing fruit Financial Mail. The programme, which has been praised both locally and internationally, has done far more than just add 3, MW to the SA electricity grid at increasingly competitive tariffs.
It has had a tangible, positive impact on the lives of the people in the communities in which the projects are located. Global policy tightening and rise in yields weakens rand, knocking hope of rally Fin The rand was trading 0. South African bonds were weaker at midday on Wednesday despite a flat rand, as favourable sentiment towards emerging markets weakened after US Federal Reserve chairwoman Janet Yellen reiterated her hawkish stance on interest rates.
Rand stable despite international market volatility Business Live. The rand was stable in the late morning on Wednesday, while international markets see-sawed on US and EU central bank comments.
Banks balk at risk of funding Mining Charter's blackownership deals Business Day. The government's plan to force mining companies to give the black majority a bigger stake in mineral wealth faces a major obstacle: Banks balk at risk of funding SA mining charter deals Moneyweb.
Afrimat Construction Index continues to outperform general economy Engineering News. Rand holds steady near the end of an eventful week Business Live. Rand gains, stocks set to open flat Moneyweb.
At GMT, the rand traded at On Monday, the Public Protector Busisiwe Mkhwebane recommended that the Portfolio Committee on Justice and Correctional Services initiate a process to change a section of the Constitution that outlines the SARB's primary objective as "to protect the value of the currency in the interest of balanced and sustainable economic growth" to "promote balanced and sustainable economic growth, while ensuring that the socio-economic well-being of the citizens are protected".
While challenging the constitutionality of any law is within every citizen's rights, the wisdom, reasons and timing for such a challenge must be genuine and to the benefit of all citizens. Rand recovers, stocks set to open lower Moneyweb. Pressures on the rand have eased thanks to dollar stability and diminished fears over the fall in the oil price, according to Rand Merchant Bank currency strategist John Cairns.
Rand perks up ahead of Constitutional Court ruling on secret ballot Business Live. The JSE allshare index ended its worst week in on Thursday, closing as 1. Volumes were large because of the secondquarter closeout in the futures market, with trades amounting to R53bn compared with an average day's R20bn.
No quick fix getting growth back on track Business Day. The economy contracted over the past two quarters, resulting in SA's second economic recession since There is little hope of swift recovery.
Closer to the Brink Financial Mail. With huge revenue shortfalls looming, government will have to take sustained corrective action in the wake of yet another downgrade, more job losses and plummeting business confidence.
Business confidence suffers rare across-the-board decline Business Live. Business confidence is at its lowest level since the recession. Q2 business confidence plunges to lows Moneyweb. South African business confidence fell deeper into negative territory in the second quarter, to a level not seen since the recession, a survey showed on Wednesday, as persistently weak business activity and concerns over politics weighed.
The Rand Merchant Bank RMB business confidence index compiled by the Bureau for Economic Research fell to 29 points in the second quarter from 40 points in the first quarter. SA business confidence tanks Fin Seven out of every 10 respondents were downbeat about prevailing business conditions.
Plunging SA business confidence: Not since the turbulence of the s and uncertainty of the early s has South African business confidence faced such headwinds. Seven out of 10 respondents said they were downbeat about current business conditions, with such despondency not seen since — a year that was gripped by a global credit crisis.
Moody's outlook a hanging sword Business Day. South Africa faces the prospect of junk credit ratings from all three ratings agencies next year after a bearish Moody's downgraded SA to just one notch above junk status on Friday, but warned of further downgrades.
Rand survives downgrade storm despite warnings of more to come Fin Allround junk credit ratings loom Business Day. SA faces the prospect of junk credit ratings from all three ratings agencies in after a bearish Moody's downgraded SA to just one notch above junk status on Friday, but warned of further downgrades.
Moody's, which had previously given SA credit for strong institutions, cited a weakening of institutional strength as a key driver for the decision to downgrade, along with SA's reduced growth prospects and rising public debt. Vervaardigers staal hulle vir hoe looneise Sake-Beeld.
Die vervaardigingsektor, wat reeds drie kwartale in 'n resessie is, is baie bekommerd oor die loononderhandelinge wat voorle. An early crash ruled overnight leaders Team TIB out of contention on the final stage of the dusi2c mountain bike race and opened the door for the RMB Change a Life team of Ndumiso Dontso and Mboneni Ngcobo to held their nerve in a tense three team duel and claim a memorable title on Sunday. RMB Change a Life duo ecstatic after first dusi2c victory.
The appointment of Dondo Mogajane as the new director-general of the National Treasury has been met with approval from most quarters. Rand steadies, focus on Moody's rating decision Engineering News. South Africa's rand steadied against the dollar early on Friday as the market awaited a credit rating decision from Moody's expected late in the day. The big question is whether they also keep the outlook as negative: Change a Lifer's hunting down elusive dusi2c crown Maritzburg Sun.
Having taken part together at the dusi2c, the RMB Change a Life Academy duc of Bongumusa Zikhali right and sipho Kupiso left will line up on the start line as a team again in along with two other strong Change a Life duos.
The rand spiked suddenly after a new poll put Labour party leader Jeremy Corbyn ahead of Conservative leader Prime Minister Theresa May for the first time as the English go the polls on Thursday. Kenyan ex-premier evokes ghost of chaos Bloomberg. Rand steadies after recession knock, stocks slip Moneyweb. Bonds come off weaker levels as questions raised about rate cuts Business Live. South African bonds were flat on Wednesday shortly before midday, recovering from earlier weakness that followed news that the country had entered a recession.
Analysts said on Wednesday that recent interest by foreign investors in South African bonds increased the prospect of a Reserve Bank interest-rate cut later in Cinderellas shine but stalwarts turn ugly Business Day. Economists at Rand Merchant Bank, who were among the few who got it right for the first quarter, see growth of just 0. Complete buyout of Universal Industries finalised Money Marketing. A leading market position and expansion opportunities create an attractive investment.
Recession shock knocks volatile rand Fin The rand see-sawed backwards heavily on Tuesday after Statistics South Africa revealed the country is in a technical recession for the second time in eight years as gross domestic product GDP contracted 0. Wired World Recession shock knocks volatile rand Daily Maverick. Cup Series riders enjoy technical track at Cascades The Witness. Stuart Marais claimed the A Batch and overall series victory.
The rand continues to gain ground The Business Report. Quarterly economic growth numbers due out Business Day. After a reprieve from two ratings agencies on Friday, SA will face another hurdle on Tuesday when the latest quarterly economic growth numbers are released. Foundry's Olivier has left his prints on Kentridge sculptures Business Day. Louis Olivier is striving to discover a language of his own, though he takes inspiration from collaborator William Kentridge and the art of the Dogon.
Rand powers ahead on heightened global risks Fin The rand gained 0. South African bonds were firmer on Monday morning, taking their cure from the stronger rand.
Bonds, which usually track the rand, firmed on Friday along with US treasuries as nonfarm payroll data printed weaker than expected.
Mixed bag from rating agencies The New Age. Low growth to weigh heavily on jobs — analysts. Low economic growth will continue to weigh heavily on employment levels, said an economist.
The unemployment rate spiked up 1. Acquisition of stake in Cell C still on. Technologies reiterated yesterday that it will continue to pursue its acquisition of a 15 percent stake of Cell C for a cash Rand to weaken but stay broadly resilient in However, the poll of almost 40 strategists suggested the rand would trade Parastatals' poor record hits home. Rand retains natural tendency to push stronger Fin While the rand retains a natural tendency to outperform its peers, a strong dollar and local political troubles will restrict any significant further rand gains this year.
That is according to Rand Merchant Bank currency analyst John Cairns on Friday, who was commenting on the latest strengthening of the rand. Still a Man's World? Until the s, women executives in the finance sector were remarkably scarce. Although the numbers have improved, there is still a disparity in gender representation at the top, especially at CEO and executive level.
A recent report published by global management consultants Oliver Wyman — which investigated conditions at organisations in 32 countries, including South Africa — found that progress may be slow, but it is at least taking place. Global investment strategies and the state of the SA market. Rand on the back foot as it weakens 1. The market has expressed Rand slips, stocks rise, led by Nampak, Mr Price. South Africa's rand extended losses against the US dollar on Tuesday as political tension ended the currency's recent rally to two-month highs.
Stocks rose, with Nampak and Mr Price gaining. Business Day Late Final. Rand could rally to R Bonds weaken as debate about no confidence vote on Zuma comes to naught. The local currency experienced a short-lived overnight rally, strengthening At GMT, the rand traded at R Rand extends losses, stocks set to open flat. Bonds weaken further as rand continues to falter on Zuma news. South African bonds continued their slide on Tuesday morning as the rand weakened further on the news on Monday that the ANC would retain Jacob Zuma as its president.
Financial Mail, Supplement A Regulatory changes put industry on edge. Amendments to rules over fee payments set to put pressure on research budgets SBG Securities takes the top place in this year's overall rankings for the second year in a row. Early stop for NEC meeting. There was nothing extraordinary about the ANC national executive. Are democracy and development mutually exclusive in context of Africa?
Financial Mail announces top analysts for Rand perks up at start of busy week. The rand perked up on Monday morning, making a good impression at the start of a busy week, the highlight of which will be the Reserve Bank's monetary policy committee's decision on interest rates on Thursday. Rand leads the way in dropping most in 6 months Business Report. The Rand weakened the most since November as a Brazilian political crisis worsened sentiment towards emerging markets already reeling from turmoil in the White House.
Rand, bonds hit by US political fallout, stocks gain Moneyweb. The rand fell nearly 3 percent against the dollar on Thursday before recouping some lost ground as the political turmoil in the United States triggered an investor flight from riskier emerging currencies into safe-haven assets.
Rand weakens on Trump concerns, stocks mixed Moneyweb. Rand retreated from three-week highs on Wednesday as concerns over the fate of promised US fiscal stimulus pulled investors away from emerging currencies into safe-haven assets.
Rand weakens as risk-off market sentiment sets in Business Live. The rand was weaker against the dollar on Wednesday afternoon, shedding some of its earlier gains as risk-off sentiment hit markets.
Rand weakens on Trump concerns, stocks mixed EWN. The rand retreated from three-week highs on Wednesday as concerns over the fate of promised US fiscal stimulus pulled investors away from emerging currencies into safe-haven assets. Life Healthcare rights issue successful amid tough conditions Moneyweb. Raising rates won't lure investment EWN. South Africa's central bank governor Lesetja Kganyago said on Tuesday that raising lending rates would do little to attract new investments to the country after its credit rating was downgraded to junk.
Rand retreats as global risk appetite moderates Business Live. The rand weakened on Wednesday morning as global risk appetite abated. Rand retreats as global risk appetite moderates ENCA. Rand hits three-week high as Trump worries hit dollar Moneyweb. The rand hit a three-week high against the dollar on Tuesday as the greenback weakened broadly on worries over U. In , the Africa Finance Corporation AFC , a pan-African multilateral lender based in Nigeria, sought to raise financing at competitive pricing levels in a bid to help it fund a number of new infrastructure projects in Africa.
Raising lending rates 'will not attract new investments' Business Live. On Tuesday, SA Reserve Bank governor Lesetja Kganyago said raising lending rates would do little to attract new investments to the country after its credit rating was downgraded to junk.
Rand firms to near one-week high; stocks down. The rand climbed more than one percent on Thursday to its firmest level in nearly a week as demand for emerging currencies continued to improve in the wake of renewed political uncertainty in the United States. Rand strengthens to one-week high. HE RAND climbed more than 1percent yesterday to its firmest level in nearly a week as demand for emerging currencies continued to improve in the wake of renewed political uncertainty in the US.
Rand trades firmer in subdued trade. The rand was firmer against a slightly softer dollar on Thursday afternoon. Rand holds up at the end of a volatile week. The rand was relatively calm on Friday morning, but headed for a mildly positive finish to a volatile week. The rand reached R Weak response to long-term Transnet bonds. Transnet's bond auction on Monday indicates liquidity is drying up in the bond market for beleaguered parastatals.