WeBuyCars feels the pain, and government reveals how it wants to fund the NHI
The rand remained relatively unchanged on Tuesday as global traders anticipated a US interest rate decision and a potential trade agreement between the US and China, the world’s two largest economies.
The rand was trading at 17.21 against the dollar, nearly the same as Monday’s closing level of 17.2275.
Analysts observed that the Federal Reserve’s actions will likely influence inflation and interest rate expectations, which could significantly affect the value of the US dollar. Additionally, the US-China trade discussions may impact global risk appetite.
Traders focused on domestic factors will be paying attention to money supply and private sector credit data on Wednesday, budget balance and producer inflation figures on Thursday, and trade balance statistics on Friday.
These indicators will provide insights into the health of Africa’s largest economy and its implications for domestic monetary policy and the attractiveness of investing in the rand.
On Wednesday, 29 October, the rand was trading at R17.16 to the dollar, R22.74 to the pound and R19.97 to the euro. Oil was trading slightly lower at $64.31 a barrel.
5 important things happening in South Africa today
WeBuyCars feels the pain: WeBuyCars’ share price dropped about 14% on Tuesday afternoon after a trading statement revealed a forecasted increase of up to 17% in core headline earnings to R958 million for FY2025. However, core headline earnings per share (Cheps) are expected to rise only 0.8% to 6%, ranging from 219.2 cents to 230.1 cents, due to share dilution from capital raises. [Moneyweb]
The NHI funding plans: In a briefing to Parliament’s Standing Committee on Appropriations on Tuesday, Nicholas Crisp, the deputy director-general for health responsible for the NHI, presented the department’s funding plan for a phased transition to the NHI over 15 years. According to Crisp, the NHI will draw on existing funds in the budget, the scrapping of medical aid credits, and, eventually, tax increases. [News24]
SARS goes after former CEO for R630 million: The South African Revenue Service (SARS) is pursuing Niall Carroll, the former CEO of Royal Bafokeng Holdings (RBH), for R630 million that the group paid him over a decade ago. SARS claims that he did not fully account for this amount for tax purposes. [Business Day]
Gmail ‘security breach’ update: Google has denied recent reports that its Gmail service experienced a security breach affecting millions of users. The official News from Google account clarified that these claims are false, stating, “Gmail defences are strong, and users remain protected.” The company explained that the reports stem from misunderstandings of infostealer databases, which compile credential theft activities online and do not indicate a targeted attack on Gmail or its users. [MyBroadband]
New trade agreements: President Cyril Ramaphosa has arrived in Switzerland for a two-day state visit. Expert on international relations, Dr Oscar van Heerden, says this visit is important for South Africa to be able to expand its trade and to go to other parts of the world to look for markets and new agreements. [eNCA]
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