5 things you need to know in South Africa today
·1 Jul 2016
Here’s what is happening in the country and the markets:
- President Jacob Zuma will likely stay to the end of his term, Cosatu says, because the last time the ANC fired a president early – Thabo Mbeki in 2008 – the party suffered. The workers union said that it supports the ANC’s campaign, but it said it wants the party to move more swiftly and decisively to stop things like violent protests from happening.
- The Strategic Fuel Fund, which last month sold off South Africa’s oil reserves without permission from Treasury, has now slipped past its own department – the department of energy – to acquire Chevron’s assets. According to the department, it was not consulted, making the bid illegal.
- South Africa’s rand reversed earlier losses against the dollar, gaining as much as 1 percent after trade data showed the widest trade surplus since 2010. Stocks ended a volatile quarter with modest gains. On Friday the rand was trading at R14.76 to the dollar, R19.63 to the pound and R16.37 to the euro.
- In global news: Asian stocks rose on Friday as risk appetite continued to recover from last week’s Brexit shock, but the pound came under renewed pressure after the Bank of England’s governor hinted at an interest rate cut ahead. Wall Street rolled to a third straight day of gains on Thursday as Britain’s central bank raised the prospect of stimulus.
- Oil prices rose early on Friday, with Brent jumping back above $50 per barrel, as investors positioned themselves for more price increases this year in expectation of a tighter market. International Brent crude oil futures were trading at $50.04 per barrel, up 33 cents, while U.S. West Texas Intermediate (WTI) crude was up 28 cents at $48.61 a barrel.
In other news: Motorists should prepare for a petrol price hike in July, with the latest CEF data showing that petrol should be increasing by 8-11 cents per litre, while the wholesale price of diesel should be going up by 42 cents.
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