President Donald Trump had a busy week of tweets and announcements. He cancelled a meeting with the Prime Minister of Denmark, Mette Frederiksen, because she said that he couldn’t buy Greenland; he said to reporters at the White House that “I’m the chosen one;” he said that Jewish people who vote for Democrats are disloyal, finally, President Trump joked with a group of veterans that he might give himself the Medal of Honour, which recognises the highest levels of military valour.
- It seems that a no-deal Brexit is the most likely outcome for Brexit as neither Prime Minister Johnson or the EU leaders are backing down in their negotiations.
- Fed news has dominated the news cycle over the week after releasing the minutes from the Federal Reserve’s latest policy meeting. The minutes show that officials cut rates as insurance against low inflation or a deeper decline in business investment driven by the trade war, but that the July cut was not part of an extended cycle. Focus will be on Fed Chair Jerome Powell at Jackson Hole today for signals of the path ahead.
- The US reported that they conducted a cruise missile test after pulling out of a missile ban treaty with Russia a few weeks prior. This signals a determination to develop immediate-range capabilities which were specifically banned by the treaty.
- McKinsey has warned that there is a substantial chance of a repeat of the late-90s Asian debt crisis. They highlighted concerns about increased indebtedness, stresses in repaying borrowing, lender vulnerabilities, and shadow banking practices, as some concerns in their August report.
- Traditional safe havens, such as the Japanese yen and U.S. Treasuries, have received a boost over the week as recession fears gained ground.
- Yesterday we sent out an important analysis that we conducted on the rand’s volatility and South Africa’s potential economic future. If you missed it, follow this link to the article.
- Gwede Mantashe, Minister of Mineral Resources, said that he believes the unions will stand behind Eskom’s rescue plan, saying, “We have a duty to do what is right for the country, more than what is just right for unions and workers, and we must do what can save the economy, what can save the country.”
- Eskom board member, Nelisiwe Magubane, said that economic growth could lead to load shedding as Eskom’s fragile generation system is unable to respond to increased demand for electricity.
- The South African Revenue Service (SARS) has placed Mmamathe Makhekhe-Mokhuane, head of digital information services and technology, on precautionary suspension pending the finalisation of a disciplinary process in connection with allegations of misconduct. This is along with five other executives.
- The North Gauteng High Court has found the Seriti Commission into 1999 Arms Deal a failure, saying that it is ‘inexplicable’ that the commission found no evidence of corruption, improper influence, or fraud in the arms deal, estimated to have cost up to R60-billion.
Source: Dynasty, Daily Maverick, Moneyweb, Reuters, RMB, Aljazeera, and Bloomberg Markets, etc