5 things in business you need to know today
·1 Jun 2016
Here’s what is happening in the markets:
- The SA government probe into state capture is dead in the water, as ANC secretary general says that only one person has come forward with information in writing. The party said the investigation has become a fruitless exercise, with political analysts saying the message is clear: Zuma has captured the entirety of the ANC, and is definitely not going anywhere.
- With ratings firm Standard & Poor’s set to make a decision about the country’s credit rating on Friday (3 June), the firm has warned the ANC of political instability that could push the country down to junk. The ratings firm was addressing the perceived internal instability of the party – especially in a crucial election year, and ahead of its elective conference in 2017.
- South Africa’s rand firmed on Tuesday helped by a recovery in commodity prices and as the dollar’s recent rally on expectations the US interest rates could rise next month took a breather. Stocks slipped, hit in part by technical factors after the 14-day RSI of the main indices. On Wednesday the rand was trading at R15.68 to the dollar, R22.73 to the pound and R17.45 to the euro.
- In global news, Asian stocks were on a weak footing on Wednesday as a slip in crude oil prices dampened investors’ appetite for riskier assets, while the recently bullish dollar stalled against the euro and yen following a mixed bag of US economic data. The S&P 500 wrapped up its third straight month of gains on a flat note on Tuesday as weaker energy shares countered a rise in safe-haven utilities.
- Oil prices fell early on Wednesday as production from the major Middle East exporters was expected to remain high or even increase just as concerns over the state of China’s economy weighed on its fuel demand outlook. International benchmark Brent crude oil futures were trading at $49.59 per barrel, while US West Texas Intermediate crude futures were at $48.87 a barrel.
In other news: Following the revelation the over 2,000 Capitec bank accounts associated with “Ponzi scheme” MMM were shut down by the bank, it has emerged that more domestic banks could be exposed to the scheme. The consumer commission has received complaints fro users from a other SA banks as well.
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