Gold retreated from a bullish week on Fed Governor Waller hawkish comments on the need for faster tapering of the quantitative easing (QE) program. Subsequently markets have had an upshift in the expectation of the US interest rate path going into 2022. This expectation has also been reflected in the Treasury yields curve with a steepened front end with the belly and the long end of the curve flattened. Read more.
Breaking financial news from South Africa, Africa, and the world.
Ford Motor and Rivian no longer plan to jointly develop an electric vehicle, the companies confirmed Friday. The two companies had originally announced plans to develop a joint vehicle when the automaker invested $500 million in Rivian in 2019. Read more.
Listed consumer goods maker Tiger Brands will cut costs by R450 million in the 2022 financial year after the recall of about 20 million canned vegetables and the July riots cost the company R732 million before tax. Read more.
Such a movement would indicate that oil is getting cheaper and the Norwegian krone is strengthening. The decline in Brent quotes is caused by an increase in the number of new cases of Covid-19 in Europe and, in particular, in Germany, Britain and Austria. Read more.
Alibaba on Thursday missed revenue and profit expectations for the September quarter as slowing economic growth in China weighed on results, adding to regulatory headwinds. Read more.
The South African Reserve Bank (SARB) Governor Lesetja Kganyago yesterday announced that the Monetary Policy Committee (MPC) voted 3 – 2 to hike the repurchase interest rate (repo-rate) by 25bps setting the benchmark interest rate to 3.75% from 3.5%. Read more.
A couple of weeks ago, Investec "warned" shareholders that interim results for the six months to September 2021 would be much better than those for the troubled first half of the last financial year. Read more.
There are reports India may significantly reduce her cotton exports. Analysts are concerned adverse weather events and pest damage to India’s cotton plantations, particularly pink bollworm infestations, will result in considerably lower crop than previously expected. Read more.
The Turkish Lira has been sliding down this week and on Thursday morning it hit a new all-time low. USD/TRY was trading at 10.533 at the time of writing. The Central Bank will hold a meeting and they are expected to cut rates to 15%.. Read more.
Debt-ridden property developer China Evergrande is set to raise about $273 million from the sale of its remaining stake in film production and streaming company HengTen Networks. This is according to a statement released before the stock market opened on Thursday. Evergrande, the largest issuer of U.S. dollar debt among Chinese property developers, was on the verge of officially defaulting this year. The company has made eleventh-hour payments and resumed building apartments owed to buyers. But that's only a fraction of what the company owes. Read more.
Spar's share price fell more than 7% on Wednesday after the company reported weak financial results for the 2021 financial year ended September 30. While the group described its "robust performance" despite "numerous challenges" during the year, the market reacted to the fact that it could only report revenue growth of 2.9% (to R127.9 billion). "Mixed performance across the regions resulted in an operating profit of R3,4 billion, down 1,5% on the previous year," the group said in its Sens results statement. "At constant exchange rates, revenue increased 3.9%, highlighting the impact of the stronger rand on the