As predicted at the beginning of July, former President Jacob Zuma’s incarceration has unleashed waves of violence that have contributed to government uncertainty and policy volatility. It is no exaggeration to describe all of this as an insurrection – an attempt to create chaos to achieve political purposes, namely the early release of Zuma and…
The biggest news of the week for our South African clients was undoubtedly the fact that the country’s former President, Jacob Zuma, handed himself over to police to begin his 15-month incarceration for contempt of court just before midnight on Wednesday, 7 July. Zuma, who was found guilty of contempt of court for refusing to…
Powered by consumers with extra savings, businesses eager to hire and enormous policy support, the United States’ current economic recovery is billed as being “unlike any in recent history”. According to the Wall Street Journal, businesses and workers are expected to emerge from the downturn with far less permanent damage than occurred after recent recessions,…
According to new research from Bloomberg Economics, a housing bubble is starting to form in many countries worldwide as they ease themselves out of the Covid-19 crisis. The research indicates that New Zealand, Canada and Sweden are the frothiest housing markets, with the UK and the US also ranking high in risk. Bloomberg Economics uses a…
In recent News Flash editions, we have written about the “K-shaped” economic recovery, while today we focus on the sustainability thereof, as well as how governments intend using taxes as an instrument to plug their deficits. New research from Stanlib highlights just how badly the pandemic battered the world economy in 2020, while offering hope…
Following the worldwide loss of 255 million full-time jobs in 2020 — four times more than during the global financial crisis — the International Labour Organization (ILO) warns that we could see a loss of a further 36 million to 130 million jobs worldwide this year. The ILO says that this pain will be unevenly…
Amazon this week announced plans to acquire MGM in a transaction worth $8.45 billion – a deal that encapsulates some of the biggest trends of our time, including the convergence of big tech and entertainment and the way in which the pandemic has accelerated digital adoption. The acquisition is Amazon’s second largest after its $13.7…
The International Energy Agency has signalled that for the world to limit global warming and get to net zero emissions by 2050, all new fossil fuel investments – oil, coal and gas – must come to an end. This news might add even more momentum to the trend we’re seeing of financial institutions backing away…
Despite growing worries about post-pandemic inflation and the danger of a bubble, stock markets appear impervious to warnings from the sceptics. Where it was the technology and home entertainment sectors that surged during last year’s lockdowns, investors are now betting on cyclicals, commodities and banking to boom in a turbo-charged economic recovery. Government and central…
