News Flash – Moody ’s Announcement, Corruption Commission, Eskom

News Flash - Moody ’s Announcement, Corruption Commission, Eskom

Moody ’s will be releasing a report on whether or not they have decided to downgrade South Africa’s credit rating later today. There is concern over the possibility of a downgrade especially considering the recent load shedding from Eskom. Dynasty expects, on the balance of probabilities, that there will be a downgrade in the outlook of the country but that the credit rating will remain unchanged.

Global News

Local News

  • The South African Reserve Bank left the repo rate unchanged yesterday, at 6.75%.
  • The rand was yesterday at its weakest levels against the US dollar since early January, with a slight recovery to R14.47 as at the time of writing. This was partly to do with the upcoming Moody ’s announcement and to a blow out in Emerging Markets triggered by Turkey.
  • Naspers shares jumped in value on the news that its international interest assets will be listed on the Amsterdam Stock Exchange. This decision was made to reduce exposure to the Johannesburg Stock Exchange, but in doing so boosted the JSE ALSI Index.
  • Jeff Radebe, SA’s Energy Minister, has said that he may use his legislative powers to facilitate the introduction of private electricity supply alternatives. This could potentially alleviate the additional burden on Eskom in the short to medium term.
  • President Ramaphosa has appointed Edward Kieswetter, a former SARS executive and former CEO of insurer Alexander Forbes, as the Commissioner for the South African Revenue Service (SARS). This will take effect from the 1 May 2019, for a term of five years.
  • “I’m not corrupt; I’m naïve,” says Andile Ramaphosa, Cyril Ramaphosa’s son. Revelations that Andile Ramaphosa has received payments from Bosasa are concerning, follow this link for more on this.

Source: Dynasty, Stanlib, Prescient, Daily Maverick, Moneyweb, Reuters, RMB, Aljazeera, and Bloomberg Markets, etc

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