Moody's Rating

 

The past week saw significant local and international economic news that will lay the foundation for market movements and interest rates over the rest of the year. 

The past week saw significant local and international economic news that will lay the foundation for market movements and interest rates over the rest of the year. 

In a late-night statement on Monday, the Presidency announced that SA Revenue Service (SARS) commissioner Tom Moyane had been suspended with “immediate effect” pending the institution of disciplinary proceedings. Mark Kingon will head SARS in an acting capacity. Kingon has 34 year of tax experience and is well known in financial circles.

South Africa’s headline consumer price inflation (CPI) eased to 4.0% in February, down from 4.4% in January 2018, according to Statistics SA. The SA Reserve Bank announced that the current account deficit had widened to 2.9% of the gross domestic product (GDP) in the fourth quarter of 2017.

More major local news for the week was that Moody’s ratings agency made its announcement close to midnight on Friday night to keep South Africa’s investment rating one notch above junk and even upgraded the country’s outlook to stable.

Internationally, the news flow was equally busy. Federal Reserve officials met for the first time under Jerome Powell and raised the US lending rate by a quarter point. Indications are that the Fed is currently in a hiking cycle and that another two hikes could be expected this year.  

US president Donald Trump announced tariffs on approximately $60 billion worth of imports from China and subsequently imposed restrictions on technology transfers and acquisitions in response to unfair trade practices. China has threatened to retaliate against the levies by halting purchases of certain agricultural products.

European Union leaders met in Brussels to discuss, among other things, the transition deal that will govern the United Kingdom’s relationship with the European Union (EU) for some two years after Britain leaves the EU at the end of March 2019. This will pave the way for free trade talks. In the UK, the inflation rate fell more than expected in February. Consumer prices rose by 2.7% from the previous year, down from 3% in January.

South Africans will be watching the South African Reserve Bank closely on Wednesday for its decision on local interest rates. Consumers could be in for good news in the form of a quarter-point cut.

Enjoy the Easter break and be sure to travel safely!

Regards 

Johan Steyn

Regards,

SECURITAS – Wealth Management
























Market data provided by I-Net | News article provided by Securitas with 4D Wealth

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Johan Steyn, RFP®, Cell. 082 680 9510, johan@securitas.co.za
Fanie Wasserman, B. Com (Hons)(UJ), PDFP (UOVS), CFP®, 
fanie@securitas.co.za
Albert van der Linde, B. Com (US), B. Com (Hons)(UP), Cell. 076 087 3084, 
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Hannes Bresler, CFP®, B. Com (Hons)(UJ), Pr.Tech Eng, Cell. 082 823 7973, 
hannes@securitas.co.za
Henro Grové, B. Com (UP), B. Com (Hons)(UP), Cell. 083 945 3578, henro@securitas.co.za
Michelle Kleinhans, Cell. 082 850 3092, michelle.kleinhans@securitas.co.za