LOCKDOWN LEVEL 2
TOTAL DAYS 550 – 07 HOURS 25 MINUTES
Vaccine rollout day 225
New cases 967
New Deaths 51
Recovery Rate 95,3%
Vaccines Administered 16,827,790
The run to the year end is now firmly upon us as we exit the Heritage day long weekend. The Rand to a beating initially on Friday breaking through the 15.00 to the USD mark. US and China news played a big part of the Rands demise.
- In South Africa, the South African Reserve Bank (SARB) kept its main lending rate unchanged at 3.5%, saying an economic bounce back from the COVID-19 pandemic was mostly in the past. Moreover, the Monetary Policy Committee (MPC) announced that inflation was expected to stay close to the midpoint of the bank’s 3.0% to 6.0% target range over its three-year forecast horizon. The bank now forecasts economic growth of 5.3% this year, from 4.2% at its July rate meeting, mainly due to a better than expected performance in the first half of the year when sectors like mining expanded strongly.
- In the US, single-family home sales increased for a second consecutive month in August, but demand for housing peaked after a COVID-19 pandemic-fueled buying frenzy.
- The yield on benchmark government bonds rose on Thursday. The yield on 2026 bond rose to 7.54%. Further, the yield on 2023 bond advanced to 5.05%, while that for the longer-dated 2030 issue rose to 9.12%.
In early trade on Monday 27th September 2021, the US dollar is trading lower against the South African rand at R14.9186, while the euro is trading lower at R17.4856. The British pound has declined against the South African rand to trade at R20.3862.
By the close of trade on Friday, the euro advanced against most of the major currencies.
- In Germany, Ifo business-climate index decreased in September, as problems in obtaining raw materials and intermediate products put a brake on the German economy. Germany’s centre-left Social Democrats took a razor-thin lead on Chancellor Angela Merkel’s conservatives in the vote to decide her successor, preliminary results showed, sparking immediate claims from both sides to form the country’s next government. The election ushers in the end of 16 years in power for Mrs. Merkel, and also thrusts Germany, a byword for stability, into a new period of political uncertainty.
- In the UK, consumer confidence dropped more than expected in September, amid growing worries over energy bills, food costs and tax hikes. BP Plc, the second-largest fuel retailer in the U.K., said it has run out of the main grades at almost a third of its stations in the country because of panic-buying. “Most of the 1,200 sites we supply across the U.K. remain supplied and open,” the London-based company said in a statement Sunday. The UK government has decided to temporarily suspend competition rules for the country’s downstream oil sector in an attempt to alleviate supply-chain issues at fuel service stations. The measure known as the Downstream Oil Protocol will exempt the industry from competition legislation so information can be shared and fuel supply optimised.
- Auckland’s latest lockdown has cost central city businesses $110 million in sales, according to Heart of the City. In a statement released on Sunday, the inner-city business group estimated customer-facing businesses in the city centre had lost an average of $85,000 in consumer spending since the beginning of lockdown on August 17. The cost of the current lockdown was comparable to level 4 in 2020 and brought the total loss for about 1300 businesses to nearly $800 million since January 2020, an average of almost $600,000 per business
In early trade on Monday, the euro has marginally slipped against the US dollar to trade at $1.1736, while it has gained against the British pound to trade at GBP0.8592.