It has been a very volatile week but there are a few things that may encourage us to look at on the bright side. Trump and Xi Jinping are in negotiations to conclude the trade war; many indices have fluctuated this week but there was a strong recovery from the intra-day lows on Thursday; and the JSE ALSI, after a trying week, has gained a margin of positivity to end Friday in the green.
- After Trump and Xi Jinping’s meeting over the weekend, markets initially reacted positively but waned during the week as it was realised that the Trade War was not over but in negotiation. The two countries have however agreed to stop the escalation of the trade war and won’t impose new tariffs for 90 days.
- Canada arrested Huawei Chief Financial Officer Meng Wanzhou on the request of US authorities over potential violations by the company of US sanctions on Iran, which saw a massive global reaction. Prime Minister of Canada, Justin Trudeau, has insisted that politics did not play a role in the arrest.
- The Japanese Government is banning Huawei inventory for its government employees. The US has done the same in response to concerns that Huawei and ZTE products contain viruses capable of exposing devices to attack.
- You have to feel for Theresa May, she has had an incredibly trying reign as Prime Minister. May lost three key votes this week as she faces opposition to the Brexit deal from all sides. She is desperately trying to salvage a deal with Parliament ahead of the vote on the 11 December 2018. The EU has said that Britain can unilaterally withdraw from the Brexit process if it wants to.
- Italy’s populist government is looking for a route out of a fight with the European Union over its budget, as the financial fallout from the clash pushes the economy to the brink of recession.
- The Eifel Tower, the Louvre museum, and many other Parisian landmarks are set to close for the weekend as authorities have warned of violent protests by a group called the Yellow Vests. Follow the link for more information.
- South Africa has emerged from recession with its third-quarter returns up 2.2% quarter-on-quarter. Recoveries in agriculture and manufacturing contributed to the gains in economic growth. Follow this link for five reasons the South African economy is out of recession.
- Advocate Shamila Batohi, a respected International Criminal Court advisor, has been appointed the new National Director of Public Prosecutions. Follow the link for more information on her and the role she is going to fulfil.
- South Africa is facing load-shedding again. National Treasury has approved Eskom’s emergency procurement of diesel to power open-cycle turbines to limit the extent of load-shedding. If you don’t have one yet here is a link to the load shedding schedule.
- The National Council of Provinces voted in favour of adopting the report on the expropriation of land without compensation this week. The same decision was made by the National Assembly on Tuesday. Parliament will now have to appoint a separate committee to draft an amendment to Section 25 of the Constitution. The ANC has indicated that they would like this process finalised before next year’s national elections. The DA and Agri SA have indicated that they will take legal action to challenge the process that led to the adoption of the report.
Source: Dynasty, Stanlib, Prescient, Daily Maverick, Moneyweb, Reuters, RMB, Aljazeera, and Bloomberg Markets, etc