The Trump administration is threatening to release a memo implicating the FBI. It seems like a short-sighted move on the part of the presidency but looks like it will go ahead. In South Africa, Capitec had an encounter with Viceroy Research, ANN7 is no more, and Ramaphosa admitted that SA cannot afford nuclear power.
Global News
- A leaked report relieved that the UK would be worse off in every possible outcome of Brexit. If Britain reaches a free trade deal with the EU, growth will be 5% lower than current forecasts over 15 years. If there is no deal and Britain turns to the World Trade Organisation terms, the growth will fall by 8%. To read more on why this report is damaging, follow the link.
- Janet Yellen, received a warm send-off as Jerome Powell will take over the reins as Fed Chair on Monday.
- At their meeting, the European Central Bank (ECB) kept interest rates on hold as expected and indicated an end to asset buying as early as September this year. President of the ECB Mario Draghi went on to add that robust economic data signals strong economic growth and an uptick in inflation in the medium term.
- Treasury Secretary Steven Mnuchin said there would be more sanctions imposed against Russia – the Trump administration has been criticised for being too soft on Russia, regarding their involvement in the 2016 US Presidential Elections.
- Democrats have accused House Republicans of secretly altering a memo alleging the FBI and Justice Department overstepped their authority in opening the Russia probe. FBI Director Christopher Wray also entered the dispute, telling the White House the memo shouldn’t be publicly released because it contains inaccuracies and paints a false narrative. But the GOP lawmaker who co-wrote the document, Devin Nunes, is pushing ahead, arguing officials are stonewalling the House Intelligence Panel he chairs.
- Bitcoin has fallen below $8000, the first time since November 2017.
Local News
- The South African National Treasury has come out in support of Capitec Bank after Viceroy Research (the shortfall company that released the report exposing Steinhoff) published a report on Tuesday, stating that the Bank was essentially a loan shark. Treasury issued a statement saying they are “satisfied with the assurance from the South African Reserve Bank that Capitec is well capitalised‚ liquid and solvent‚ and meets all prudential requirements.” For more developments in this story, follow the link.
- Cyril Ramaphosa has acknowledged that the government cannot afford a nuclear program. This is good news for the 2018 South African Budget as well as the Moody’s rating review.
- The rating agency, Fitch, has downgraded Eskom on the back of weakening liquidity and uncertain capacity to fulfil its short-term financial commitments.
- 955 miners have been brought to the surface after being trapped in a gold mine since Wednesday evening.
- MultiChoice has decided not renew the contract of the Gupta owned channel ANN7. They will stop broadcasting in August of this year.
