LOCKDOWN LEVEL 3  [Adjusted ver. 3] 

TOTAL DAYS 527 – 07 HOURS 30 MINUTES 

Vaccine rollout day 209
New cases  5372
New Deaths 282
Recovery Rate 92,3%

By the close of trade on Tuesday 7th September 2021, the South African rand weakened against the US dollar.

  • In South Africa, recovery from a coronavirus-induced contraction quickened in the second quarter as restrictions to contain the pandemic were eased. The country’s GDP expanded 1.2% in the three months through June from a revised 1.0% in the previous quarter. However, reported stated that the economy is likely to contract in the third quarter after deadly riots, looting and arson erupted in July and weighed on activity in the eastern KwaZulu-Natal province and the commercial hub of Gauteng, the two biggest provinces by contribution to GDP.
  • The rout of bonds and shares of China Evergrande Group deepened on Tuesday with one exchange-traded note tumbling more than 20%, as the company faced fresh downgrades over its ability to restructure its massive debts. Debts at Evergrande, the country’s No2 developer, have triggered warnings from regulators worried that its 1.97 trillion yuan ($305.02 billion) of liabilities could spark broader financial risks if not stabilised.
  • Iran’s judiciary announced in a September 5 press conference that eight men and women were sentenced to prison and lashes for “economic misconduct”. Judiciary Spokesperson Zabihullah Khodaeian said in comments carried by the state-run ISNA News Agency that eight directors in the case of the Petrochemical Trading Company were tried and sentenced to flogging, prison, and fines.
  • Eleven of the 12 regional Fed banks have published disclosures of their leaders’ 2020 financial profiles, sharing information that gives insight into the holdings of officials who help set the central bank’s monetary policy and thus directly affect all capital markets, especially stocks. What was notable is that while most regional Fed leaders reported modest financial holdings and smaller transactions, president of the Dallas Fed Robert Kaplan made “multiple million-dollar-plus stock trades in 2020” according to the WSJ.    According to the disclosure form provided by the Dallas Fed, Mr. Kaplan had a total of 27 individual stock, fund or alternative asset holdings each valued at over $1 million. Mr. Kaplan’s stockholdings included Apple Inc., Amazon.com Inc., Boeing Co., Alphabet Inc., Facebook Inc. and Marathon Petroleum Corp.
  • Uganda’s shilling, Africa’s third-best performing currency this year, gained for a fourth straight day on Tuesday, buoyed by dollar inflows from coffee exporters and foreign investors chasing yield.
  • Former Walmart executive and e-commerce billionaire Marc Lore wants to build the world’s first woke city from scratch, somewhere in the US. Lore last week unveiled plans for his utopia, called Telosa, derived from the ancient Greek word Telos, meaning “highest purpose.”
  • The yield on benchmark government bonds rose yesterday. The yield on 2026 bond rose to 7.36%. Further, the yield on 2023 bond advanced to 4.89%, while that for the longer-dated 2030 issue rose to 8.84%.

In early trade on Wednesday 8th September 2021, the US dollar is trading lower against the South African rand at R14.326, while the euro is trading marginally lower at R16.9472.    The British pound has declined against the South African rand to trade at R19.7238.

By the close of trade on Tuesday 7th September 2021, the euro advanced against most of the major currencies.

  • The Reserve Bank of New Zealand – Te Pūtea Matua has undertaken a thematic review of banks’ compliance with our liquidity policy, identifying a range of system, controls and risk management weaknesses as well as areas of good practice that the industry can learn from.
  • In the eurozone, economy expanded more than expected in 2Q21, with a rebound in the consumer spending after the pandemic hit.
  • In Germany, industrial output rose more than expected in July, indicating that factories are overcoming supply bottlenecks that put a pause on the rebound in economic activity. German investor sentiment faded for the fourth month in a row in September, as investors expect raw material insufficiency and chip shortages to slow the recovery.

In early trade on Wednesday, the euro marginally advanced against the US dollar to trade at $1.1862, while it has marginally gained against the British pound to trade at GBP0.8632.