Cape Times 2023-07-17

Market feels that central bank is set to start tapering monetary policy Economists have remained divided on whether the South African Reserve Bank (SARB) will increase or leave unchanged its benchmark lending rate again on Thursday after 10 consecutive hikes since November 2021. The prevailing sentiment in the markets is that the SARB is set to start tapering its monetary policy as inflation has begun slowing towards the bank’s target range of 3% to 6%. Headline consumer inflation fell by more than market expectations to a one-year low of 6.3% in May, after easing only slightly to 6.8% in April from 7.1% in March. Inflation in the US has also cooled for the 12th consecutive month, moving to 3% in June from 4% in May, leading to the Federal…

ZAMBIA’S government has shortlisted companies that have submitted binding offers for Mopani Copper Mines and wants to select a new investor by July 31, its mines minister said on Friday. Sources told Reuters last month that China’s Zijin Mining and Norinco Group, South Africa’s Sibanye Stillwater and an investment vehicle owned by ex-Glencore officials had been shortlisted in the race to buy Mopani. Mines Minister Paul Kabuswe declined to give details at a press conference on which companies had made the shortlist.Switzerland-based commodities giant Glencore sold a 73% stake in Mopani to Zambian state firm ZCCM-IH in 2021 for $1.5 billion (R27.1bn) in a deal funded by debt, but it retained offtake rights of Mopani’s copper production until the debt was repaid. Kabuswe said the government was also finalising talks…

RUSSIAN President Vladimir Putin held a phone call with President Cyril Ramaphosa in which they discussed the Black Sea grain deal, due to expire on Monday, and a summit in South Africa next month, the Kremlin said on Saturday. Putin's possible attendance at the BRICS summit is delicate for both countries, because of an arrest warrant issued against him in March by the International Criminal Court (ICC), which accused him of the war crime of deporting Ukrainian children to Russia. The warrant means member states of the ICC – of which South Africa is one – are obliged to arrest him if he sets foot on their territory. Russia said at the time that the warrant was “outrageous” and legally void because Russia is not an ICC member. The Kremlin…

FINANCIAL services group PSG Konsult said on Friday it had received approval to change its name to PSG Financial Services. The change is aligned to the firm’s growth aspirations, it said in a statement. The firm has three divisions: PSG Wealth, PSG Insure and PSG Asset Management. CEO Francois Gouws said: “In the 25 years since being established, PSG has evolved as a business and now provides a comprehensive financial services offering. We want to ensure our brand remains well-positioned in an ever-evolving industry and that we continue to serve our growing client base optimally and in line with our high standards.” PSG’s annual results were released earlier this year in April, and the group realised a 5% increase in recurring headline earnings per share and a return on equity…

AMENDMENTS to Zimbabwe’s labour and criminal law codification to include what is popularly known as the Patriotic Act have been described as bad for business and workers’ rights to protest under President Emerson Mnangagwa who faces opposition leader Nelson Chamisa in next month’s key election. Zimbabwe has been on a drive to woo back international investment and to re-engage with the international community after the West imposed sanctions for alleged human rights abuses. Mnangagwa’s administration is now penalising Zimbabwean individuals and other entities that campaign for the imposition of sanctions. Economists say elections scheduled for next month will likely be decided on economic policy grounds amid a tight liquidity squeeze. Mnangagwa signed the Criminal Law Codification and Reform Act Amendment into law on Friday. It makes it illegal for any…

SENTIMENT within the private sector businesses in Durban is likely to remain severely depressed by the recent torching of trucks after confidence plunged for the second quarter in a row. This comes as the Durban Business Confidence Index declined to 37.28 index points in the second quarter of 2023, down from 43.27 points in the previous quarter. This was a second consecutive decline of the index following another dip in business confidence in KwaZulu-Natal’s only metro, from 44.04 points in the fourth quarter of 2022. The Index is compiled by the Macroeconomics Research Unit in the University of KwaZulu-Natal (UKZN) School of Accounting, Economics and Finance. It is a collaborative project with the Durban Chamber of Commerce and Industry and eThekwini Municipality. UKZN said the downward trend of…