South Africans were cheered by the country’s emergence from a technical recession and a victory against Bell Pottinger, while Hurricane Irma and tensions between the US and North Korea dominated international headlines. Read on for more:
Global News
- North Korea fired a missile over Japan which set off alarms in the north of the country. US Ambassador to the United Nations, Nikki Haley, has stated that Kim Jong Un is, “begging for war,” after testing a massive hydrogen bomb over the weekend.
- Trump has repealed the Obama-era Dreamer (DACA) programme, which shielded migrants who entered America as children from deportation.
- Hurricane Irma, the strongest storm to form in the open Atlantic Ocean in recorded history, has hit the Caribbean. When it arrives on the US mainland, the destruction could rival Hurricane Katrina.
- In the aftermath of Hurricane Harvey, where the death toll has risen to 60 people, there is renewed pressure on Trump’s climate change policies.
- Harvey put one-fifth of US oil refineries offline, nudging Brent Crude Oil higher.
- Quarter-to-date, the pound has dropped 4.3% against the euro.
- Brexit talks stalled again last week as the UK and EU quibbled over the exit bill. Theresa May’s government is under pressure to seal a deal with the EU soon to avoid a chaotic exit from the union.
- The US surprised on the upside with 3% quarter-on-quarter GDP growth.
- Moody’s has adjusted its growth forecasts downward for the US, doubting President Trumps campaign promises of pro-growth and tax cuts to come to fruition.
- Moody’s growth forecasts for EU were revised upwards due to past growth and positive sentiment.
- Business Confidence in the EU was at its highest level in 10 years in August.
- Before Friday’s close, Bitcoin dropped 16%, largely in anticipation of China declaring initial coin offerings illegal effective last Monday.
Local News
- South Africa’s GDP grew 2.5% quarter-on-quarter and 1.1% year-on-year. Though the country has broken out of technical recession, the forecast for annual GDP grow remains at 0.7%.
- South Africa’s deficit for July was its largest since 2004 at R9.2 billion—largely because of a decline in revenue collection. This could motivate rating agencies to further downgrade South Africa’s sovereign credit rating in their year-end reviews.
- Bell Pottinger has been expelled from the UK’s PR trade body following allegations that it stoked racial hatred in South Africa in its campaign for the Gupta family. This is the most severe punishment the regulator prescribes. Additionally, the CEO has resigned and the company is considering a sale.
- Deputy President Cyril Ramaphosa is expected to address allegations that he had a string of affairs with young women as the ANC elective race gets ugly. has had, indicating the beginning of the ANC Leadership campaign.
- On Tuesday, the DA’s motion to dissolve parliament and hold early elections fell flat on its face.
Source: Dynasty, Stanlib, Efficient Select, Prescient, Moneyweb, and Bloomberg Markets etc
