Old news, but South Africa woke up this morning to the reality of a record petrol price of over R18 a litre, 40% of which goes to the government in various forms of taxes. The latest 91c/l increase was due to a weaker rand, high oil prices and yet another levy.
Good news is that the rand broke below the technical support level of R14.30 to the greenback early this morning, sourcing support from stronger rand-linked commodities and a weaker US unit. The local currency last quoted 0.2% firmer from its overnight close in New York at R14.28/$, has staged a strong comeback from its looting-induced slide. Societe Generale is not ruling out a break to R14.00 against the US unit.
The focus is now on US manufacturing PMI due later today from both ISM and Markit and US non-farm payroll data due on Friday, an important parameter to determine the Federal Reserve’s future policy stance.
With a stronger rand and weaker oil prices, we may soon see some relief at the pump. Hope is alive!
Here’s a roundup of the world’s top and most interesting headlines:
SA Business
VBS Scandal: The matter of SARS v Kabelo Matsepe (feat. South African people’s Constitutional Rights) – Daily Maverick
Why tension over homeless people is reaching boiling point in Sea Point – News24
Higher fuel prices to impact households: economists – SABC News
Global Business
Alibaba’s first sales miss in two years shows crackdown toll – Bloomberg
The route less traveled: private aviation eyes limited direct flights to lure execs – Reuters
What more crypto oversight should look like – Bloomberg
Markets
China sports stocks rise as safe choice after videogame shock – Bloomberg
Could gold really double in price? This hedge fund says it’s more likely than ever – Yahoo Finance
US close: Stocks firmer after volatile session – ShareCast
In-depth
Gaming? China’s big crackdown is really on big capital – Bloomberg
R1m from Digital Vibes deal bankrolled hair salon, nail boutique for Minister Zweli Mkhize’s son, daughter-in-law – Daily Maverick
Your auditor is not your friend – Bloomberg
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