5 things in business you need to know today
·10 Jun 2016
Here’s what is happening in the markets:
- South Africa is in recession – and has been for the past 28 months, according at least one global investor. While two quarters of declining economic growth is a sign of a technical recession, the definition isn’t used in the real world of investment. South Africa’s -1.2% GDP growth was one of the six lowest quarters experienced in the country in the past 23 years.
- Every province in South Africa except Gauteng has been declared a disaster area due to the ongoing drought conditions in the country. The drought has been exacerbated by poor water infrastructure across the country, and has been a large contributing factor in pushing the country’s agricultural sector into recession.
- South Africa’s rand gave back some of the previous day’s gains against the dollar on Thursday, weighed down by data pointing to lethargic economic growth. Northam Platinum, which is grappling with violence and a stay away at its main mine, was among the decliners on the stock market. On Friday the rand was at R14.85 to the dollar, R21.49 to the pound and R16.79 to the euro.
- In global news: Asian shares pulled back on Friday as investors sought refuge in safe-haven assets amid festering concerns over the June 23 referendum that could see Britain exit the European Union. US stocks retreated on Thursday after three days of gains as oil prices fell and global growth worries drove investors to safer assets like bonds.
- Oil prices fell on Friday, as a stronger dollar pulled crude off the 2016 highs hit this week, although strong refinery demand and global supply disruptions lent some support. International Brent crude oil futures were trading at $51.59 per barrel, down 36 cents from their last settlement. US crude futures were down 38 cents at $50.18 a barrel.
In other news: The NPA and president Jacob Zuuma’s lawyers will today apply for leave to appeal a High Court ruling that the president should face 783 corruption charges. The NPA is expected to tell judges this morning that it’s the only institution that should be able to decide whether or not to withdraw charges against someone
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