NATIONAL BUSINESS NEWS - Here is what’s happening in the markets:
- Responding to critics of his state of the nation address this week, president Jacob Zuma has put the South African economy at the forefront of government focus. This, ahead of the budget speech set to take place in the coming week. The president said that no stone would be unturned in avoiding a credit rating downgrade, while calling for unity among politicians to fight for stability, and avoid politicking at the expense of the economy.
- South Africa has been ranked as one of the worst countries in the world for entrepreneurial activity, according to the latest Global Entrepreneurship Monitor report. While 73% of South African adults see entrepreneurship as a good career choice, only 9.2% go one to do so, blocked by red tape, lack of access to finance and the generally high cost of doing business in the country.
- South Africa’s rand firmed to a seven-week high against the dollar on Thursday supported by expectations of interest rate hikes, while Gold Fields fell sharply as the stock market ended a recent rally. The currency is trading stronger at R15.41 against the dollar, R22.09 against the pound and R17.14 to the euro.
- In global news, Asian shares slipped after hitting near three week highs on Friday as a rally in oil prices reversed and investors remained cautious about the outlook for the global economy. Wall Street closed lower, ending a three day winning streak, while European markets are expected to open lower again on Friday.
- Global oil prices fell on concerns about a global oversupply, reversing several days of gains – though it remains just above $30 a barrel. US crude slipped 34 US cents to $30.43 a barrel, while Brent crude slipped 38 US cents to $33.90. The South African Central Energy Fund showed an over-recovery of 60-63 cents for LRP fuel, pointing to a drop at the pumps in March. Diesel’s under-recover extended to 13 cents, pointing to a price hike.
