SAnews.gov.za 23 May 2013 The Reserve Bank’s Monetary Policy Committee [MPC] has kept the repo rate unchanged as expected by the market. “The MPC has decided to leave the repurchase rate unchanged at 5 percent per annum. The MPC is ready to act appropriately in either direction in the event of material changes in the outlook,” Governor Gill Marcus said on Thursday. The MPC said it was increasingly concerned about the South African economy’s deteriorating outlook including … [Read more...]

Frank Nxumalo, SABC 22 May 2013 Economic data that has been published by Statistics South Africa on Wednesday shows that April Consumer Price (CPI) Inflation has remained unchanged from the March rate at 5.9% year-on-year. Economists believe that the figure is a bit of negative surprise as expectations were that lower year-on-year petrol price inflation could have contributed to a slightly lower value. Such an expectation was driven by the fact that the CPI’s transport sub-index saw … [Read more...]

A SIMPLE MODEL An asset with a cash flow of a million rand a year for the next ten years, assuming interest rates remain at 10% throughout the ten years, has a present value of around R6.1m. At an interest rate of 5% throughout the ten years the same asset has a present value of around R7.7m. The interest rate used is known as the discount rate and the model we’re using is known as the discounted cash flow model. The primary principal it illustrates is that as the discount rate falls; … [Read more...]

SABC 17 May 2013 10:15 South Africa's rand hit a four-year low in early Friday trade amid concerns about more labour unrest in the platinum mining sector and its potential to inflict wider damage on Africa's biggest economy. The rand fell to 9.403 to the dollar at 0614 GMT, extending its declines beyond the 9.3845 low hit in the previous session. The South African currency was last at these levels in April 2009. Workers at Anglo American Platinum's (Amplats) mines reported for duty … [Read more...]

SABC 16 May 2013 A European investigation into alleged price rigging by major oil companies has drawn attention to leading price agency Platts and the way it sets oil price benchmarks. Authorities on Tuesday carried out a surprise inspection at Platts' London bureau as well as the offices of Royal Dutch Shell, BP and Statoil. Officials were searching for evidence that the firms had distorted prices reported to Platts in an attempt to influence the cost of oil.  The move follows more … [Read more...]

SABC 15 May 2013 Revived labour unrest in South Africa's mining industry could impact export competitiveness and threaten the credit rating of Africa's top economy, analysts from Moody's said on Wednesday.  Labour strife in South Africa's platinum belt has resurfaced this week as a wildcat strike across Lonmin's shafts entered a second day, raising fresh concerns that strikes could cripple output again. Moody's, last year, cut South Africa's government bond rating by one notch to Baa1 … [Read more...]

SABC 14 May 2013 The Grant Thornton International Business Report (IBR) for the first quarter of 2013 released this week, has painted a grim picture of the South African economy.  The reports states that political instability, over regulation and the high crime rate continue to affect business growth and expansion in the country. It further adds that the country's privately held businesses are feeling the pressures of continued constraints, which is directly restricting expansion. 40% of … [Read more...]

SABC 9 May 2013 06:07 Oil was up in Asian trade Thursday as a surprise rise in German industrial production brightened the market's outlook for European and global growth, analysts said.  New York's main contract, light sweet crude for delivery in June added five cents to $96.67 a barrel and Brent North Sea crude for June delivery gained 18 cents to $104.52. "Dealers are cheering German industrial production figures that were significantly better than expected," Ric Spooner, chief … [Read more...]

Frank Xumalo, SABC 6 May 2013 Africa’s share of foreign direct investment (FDI) has risen to 5.6% in 2012 from 3.2% in 2007 indicating a growing interest on the continent by global investors according to Ernst and Young’s third Africa Attractiveness Survey published in Johannesburg on Monday.  The report aggregates an examination of global investments into Africa over the past five years with a survey of more 500 business executives on their views on Africa as investment … [Read more...]

SABC 6 May 2013 07:37 South Africa's rand holds steady to a three-week high against the dollar today. The rand closed on Friday at R8.91 versus the dollar by 1547 GMT compared with Thursday's last trade at R8.95.  The local unit reached a session high of 8.9011 earlier on Friday, its strongest since April 12. On Monday the rand is trading at R8.92 to the US dollar; at R13.90 to pound sterling; at R11.71 to the euro; and at 9.17 to the Australian dollar. The euro is at $1.31 and the … [Read more...]