Bonds gain, rand firms against dollar
October 5, 2011-- - South African government bonds and the rand currency ended firmer on Wednesday, boosted after a minister said the government would keep a lid on spending and tracking gains elsewhere as global risk appetite picked up.
Deputy Finance Minister Nhlanhla Nene said Pretoria would let public debt rise to 40 percent of gross domestic product provided the spending was on investment, but would tighten the purse strings once debt reached those levels.
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Source: FIN24
SA to curb spending when debt at 40%/GDP
October 5, 2011-- South Africa would let debt rise to 40% of gross domestic product (GDP) if spending was on investment, but would then tighten the purse strings once debt reaches that level, Deputy Finance Minister Nhlanhla Nene said on Wednesday.
South Africa’s gross debt is expected to hit 43% in 2013/14 from around a third of GDP currently, but analysts are worried that large-scale unemployment may put pressure on the government to increase welfare spending.
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Source: FIN24
Mines grab will happen, Malema insists
October 5, 2011-- Embattled ANC Youth League president Julius Malema said nationalisation of the mines is a concluded matter and that the ruling party is studying the best model for it.
"Mines should be nationalised. Nationalisation is concluded. I don't understand the ANC process to be saying we are investigating nationalisation of mines. I understand the ANC process to be saying we are looking to get the best model for nationalisation," said Malema on Tuesday.
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Source: FIN24
JSE stays weaker, tracks global stocks
October 4, 2011--The JSE remained on the back foot at noon on Tuesday, reflecting the sentiment on global equity markets, as a potential Greek default on its loans worried investors.
By 12:02 local time, the JSE All Share [JSE:J203] index was down 1.62% to 29 393.65 points, with resources losing 1.84%, gold stocks weakening 1.67% and platinum miners slipping 1.29%. Banks edged down 0.12%, while industrials slid 1.80% and financials dipped 0.77%.
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Source: FIN24
Bonds mostly firmer on auction
October 4, 2011--South African bonds were mostly firmer in midday trade on Tuesday, on the back of a well-bid auction.
The National Treasury received bids totalling R2.94bn for R1.1bn worth of R204 bonds at a clearing yield of 8.040% and bids totalling R3.55bn for R1bn worth of R186 bonds at a clearing yield of 8.620%.
By 11:50, the benchmark R157 bond was trading at 6.980%, unchanged from its previous close. The R207 was bid at 8.245% and offered at 8.245% from a previous close of 8.260% and the R186 was at 8.630% from its close of 8.625%.
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Source: FIN24
Rand tracks stronger euro
October 4, 2011--The rand reversed earlier losses in late trade on Tuesday after the euro, which the local currency frequently tracks, staged a turnaround.
At 18:00 local time, the rand was trading at 8.3013 to the dollar from its previous close of 8.2837. It was trading at 11.0159 to the euro from 10.9271 before, and at 12.7623 against sterling from 12.7787 previously.
The euro was at US$1.3279 from US$1.3192 before.
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Source: FIN24
Economics of cocoa
October 4, 2011--To get an idea how emerging markets are reshaping global consumption patterns, look no further than the cocoa bean.
Hundreds of millions of new consumers in Asia and elsewhere are boosting demand for chocolate cakes, biscuits, drinks and ice cream. This is increasing demand for cocoa, but it is also changing the cocoa market.
When a cocoa bean is processed it makes roughly equal parts butter and powder. The butter goes into melt-in-your-mouth products, as well as soaps and cosmetics. The powder is used in cakes, biscuits and drinks
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Source: FIN24
JSE tracks world markets down
October 3, 2011-- The JSE was down over 1% in early trade in Monday, taking its cue from weak global markets as sentiment once again turned sour on continued concerns over the Greek debt crisis.
By 09:12 local time, the JSE All Share [JSE:J203] index had dropped 1.16%, with banks and industrials 1.48% lower. Financials lost 1.32%.
Platinum miners shipped 1.27%, with resources down 0.73%, but gold stocks improved 0.45%.
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Source: FIN 24
Bonds firm slightly in quiet trade
October 3, 2011--South African bonds were slightly firmer in midday trade compared with the morning, but data reports in the afternoon may have an effect.
By 12:19, the benchmark R157 bond was trading at 6.970% from its previous close of 6.985%. The R207 was bid at 8.250% and offered at 8.235% from a previous close of 8.260%. The R186 was at 8.610% from its close of 8.600%.
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Source: FIN24
Rand tracks euro weaker over European debt
October 3, 2011-- The rand tracked the euro weaker in midday trade on Monday as doubts over Greece's ability to manage its debt weighed.
A local currency trader said that "not much" was happening on the data front on Monday to drive forex markets, but that the European Central Bank statement later this week would be of interest. He said they were looking at a range of between R8.05 and R8.15 for the rand against the dollar.
At 11:48 local time, the rand was bid at 8.0799 to the dollar from its previous close of 8.1046. It was trading at 10.7984 to the euro from 10.8060 before, and at 12.5518 against sterling from 12.6048 previously.
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Source: AME Info