5 things you need to know before the JSE opens today
·1 Feb 2016
Here is what’s happening in the markets:
- Following the Reserve Bank’s decision to hike rates, the rand has rallied to the strongest levels seen in the past few weeks. In overnight trade in New York on the weekend, the rand strengthened to R15.89 to the dollar. In early trade on Monday it was stable at R15.87. The rand is trading at R22.66 to the pound and R17.24 to the Euro.
- Government is taking action to ensure that South Africa’s credit rating does not get cut to junk. Finance Minister Pravin Gordhan has met with about 60 CEOs to discuss how the country can avoid the cut. Among the ideas discussed were getting private capital involved in infrastructure projects, and partially privatising energy assets like Medupi and Kusile.
- Experts are expecting turbulence in the labour sector in 2016, as a weak economy and a tough trading environment put pressure on workers. Adcorp CEO, Richard Pike expects workers to strike a hard bargain during wage negotiations – particularly in the motor industry, which sees its three-year wage agreement come to an end. Other industries to watch are the platinum and gold producers.
- While Eskom said the decision to appoint the Gupta-owned Optimum Coal as source for one of its power stations wasn’t anything new, the Guptas, their business interests and their links to President Zuma are causing some political troubles as Zuma’s allies reportedly grow more hostile toward the family.
- In global markets, after rallying above $30 a barrel, the oil price has taken another knock following weak economic data from China. Global oil prices have slipped as much as 56 US cents to around $35 a barrel, as China posted its weakest manufacturing data since 2010. China is the worl’d largest energy consumer.
In case you missed it: The department of energy announced that petrol prices will be increasing by 6 cents a litre from Wednesday – but good news for diesel owners as diesel prices will be dropping by 62 cents.
Loading ...