LOCKDOWN LEVEL 1

TOTAL DAYS 599 – 07 HOURS 30 MINUTES 

Vaccine rollout day 248
New cases  262
New Deaths  8
Recovery Rate 96,4%
Vaccines Administered 23,402,284

By the close of trade on Friday, the South African rand weakened against the US dollar.  It’s definitely the age of the Space X rockets as Elon Musk’s company brings 4 astronauts back from the space station and the very next day fires off another rocket to deploy 53 starlink satelites.

  • In the US, consumer sentiment decreased in November to its lowest in a decade, following high inflation weighing on consumers attitudes despite ease in COVID-19 concerns.  The jump in US headline CPI above 6% crossed some Rubicon and injected dynamic into the process. The dollar rallied, and new highs for the year were recorded against the euro and sterling. The dovish tapering announcement by the Fed on November 3 was completely unwound as the December 2022 Fed funds futures returned to the high-yield mark of 66 bp ahead of the weekend. The two-year yield rose from about 39 bp at the start of the last week to almost 55 bp. The volatility of the bond market (the equivalent of the VIX for the S&P 500) surged back to the year’s high (above 78%).
  • New York Federal Reserve Bank (Fed) President, John Williams stated that higher inflation does not affect all households equally, with people with fixed incomes being less protected against higher inflation.   Federal Reserve Bank of Minneapolis President Neel Kashkari said the U.S. central bank shouldn’t overreact to elevated inflation even as it causes pain for Americans, because it is likely to prove temporary. “The high prices that families are paying, those are real and people are experiencing that pain right now,” Kashkari said Sunday on CBS’ “Face the Nation.” “We need to take it very seriously, but my view is we also need to not overreact to some of these temporary factors even though the pain is real,”.
  • President Biden faces a major decision on if he should renominate Federal Reserve Chairman Jerome Powell for another term. With inflation soaring and the administration working to bring the economy back from its coronavirus pandemic doldrums, Biden’s choice to lead the central bank could prove particularly consequential as Republicans go on the attack ahead of next year’s midterms. Fed-watchers consider Powell likely to win another term after his current one is up in February thanks to his broad support among both parties, the bank’s successful response to the pandemic-driven market meltdown.
  • China’s economy performed better than expected in October as retail sales and industrial output beat estimates, relieving concern a property slump was broadening. Industrial output rose 3.5% in October from a year earlier, according to the National Bureau of Statistics, faster than September’s reading and higher than economists’ expectations. Retail sales growth accelerated to 4.9%, above the 3.7% estimate in a Bloomberg survey of economists.
  • The yield on benchmark government bonds rose on Friday. The yield on 2026 bond rose to 8.01%. Further, the yield on 2023 bond advanced to 5.31%, while that for the longer-dated 2030 issue rose to 9.37%.

In early trade on Monday 15th November 2021, the US dollar is trading lower against the South African rand at R15.3172, while the euro is trading higher at R17.5562.  The British pound has declined against the South African rand to trade at R20.5686.

By the close of trade on Friday, the euro declined against most of the major currencies.

  • In Germany, the wholesale price index advanced more than expected in October. In the eurozone, industrial production dropped less than expected in September.
  • The European Central Bank’s (ECB) Chief Economist, Philip Lane alleged that the governments should be allowed to spend more when inflation is below its 2.0% inflation goal and vice versa.
  • The average price of a home coming to market dipped by more than £2,000 in November, according to a property website. Across Britain, the average price tag now stands at £342,401 – £2,044, or 0.6%, less than in October – as sellers seek to attract buyers’ attention ahead of the traditional pre-Christmas lull. The figures were released by Rightmove, which said this month’s price drop was the largest monthly fall since January, when there was a 0.9% decline. Rightmove said December is traditionally the quietest month for buyer activity, and interest from house-hunters tends to bounce back on Boxing Day.

In early trade on Monday 15th November 2021, the euro advanced against the US dollar to trade at $1.1462, while it has marginally gained against the British pound to trade at GBP0.8546.