Credit Suisse is in the news again. For all the wrong reasons. From an internal spying scandal and the resignation of its chairman over flouting coronavirus rules to being a bank for dictators, drug lords and criminals. A massive data leak reported on by dozens of media outlets across five continents much like the Panama Papers-style investigations into the data, exposes the details of the accounts and hidden wealth totaling $100bn of more than 18,000 foreign clients. Among the exposed is the infamous Billy Rautenbach, a mining magnate who has openly boasted of his willingness to bribe his way to the top. According to leaks he opened high-value accounts at Credit Suisse even after he was sanctioned by the US and EU and the UN warned that he was allegedly overseeing corrupt mining deals in the Democratic Republic of Congo.
The huge trove of banking data was leaked by an anonymous whistleblower to the German newspaper Süddeutsche Zeitung. And as expected the bank “strongly rejects the allegations and insinuations” and says the information is “based on partial, inaccurate, or selective information taken out of context”.
While Credit Suisse is facing its own huge battle, the world is eying developments in Russia as the country’s troop buildup near Ukraine and efforts at diplomacy to bring both sides back from the brink of war is messing with markets.
The uncertainty over Russia’s next moves is keeping a lot of investors on the sidelines, with moves on markets being mainly headline-driven, comments TreasuryONE.
Over the weekend, US President Joe Biden has agreed in principle to a future meeting with Russia’s Vladimir Putin while Russia has extended its military exercises in Belarus.
“The Russia/Ukraine situation continues to drive global market moves, and with rising tensions over the weekend, we find risk sentiment still fairly negative this morning,” says TreasuryONE.
The rand remains resilient in the face of a retreating dollar, with the local unit last trading at R15.04/$. With today being a US holiday, TreasuryONE expects the local currency to hold in a R14.95/R15.20 range for now.
Here’s a roundup of the world’s top and most interesting headlines:
SA Business
What to expect from South Africa’s budget this week – including taxes – Business Tech
Average take-home pay in South Africa before and after lockdown – MyBroadband
Should’ve ‘left water gushing’: Pensioner slapped with R185 000 bill after fixing Joburg City pipe – News24
Global Business
Bernie Madoff: Sister of the man behind history’s largest Ponzi scheme found dead with her husband – Sky News
Warren Buffett dumps Visa and Mastercard stock, buys Nubank – Finextra
Controversial $5 billion Ethiopia dam begins producing power – Bloomberg/DM
Markets
Oil, gold cede gains on prospects for Biden-Putin Ukraine summit – Bloomberg
Asian markets pare losses, oil drops on Biden-Putin hope – AFP
China’s demand for metals has wavered as inventories pile up – Bloomberg
Opinion/In-depth
Breaking public goodwill: SARS chases the cents from ordinary taxpayers while high fliers remain footloose – Daily Maverick
From human rights to recycling bins: how can you define ‘ethical investing’? – The Guardian
Oceana: Who is steering the ship and why didn’t the board spot the iceberg? – Daily Maverick
Video
Cannabis Economy | Growing the economy one puff at a time – eNCA
Mask Pollution: A threat to the environment – EWN
WATCH | City of Cape Town vs Walking Bus moms: What we know so far – News24
