LOCKDOWN LEVEL 1

TOTAL DAYS 607 – 07 HOURS 30 MINUTES 

Vaccine rollout day 255
New cases  868
New Deaths  51
Recovery Rate 96,3%
Vaccines Administered 24,874,528

By the close of trade on Tuesday 23rd November 2021, the South African rand strengthened against the US dollar.  In South Africa the country entered a new political era on Monday as the DA received the surprise support of the EFF and other opposition parties to topple the ANC in various metros.

The DA won the mayorships in Ekurhuleni and the City of Johannesburg and was on the brink of adding Tshwane and eThekwini to its list of metros.  The DA lost Nelson Mandela Bay by 1 vote and has a tight grip on the City Of Cape Town. With no coalition agreements in place, opposition parties opted to support the DA in a move squarely aimed at toppling the ANC.

  • In the US, business activity slowed moderately in November, amid labour shortages and raw material delays, which are likely to contribute to a surge in prices in 4Q21. Also, service activity dropped in the US in the same month. However, manufacturing activity in the central Atlantic region of the US grew in the month of November.
  • Linden B Johnson tried jawboning. Richard Nixon issued a presidential edict. The Ford administration printed buttons exhorting Americans to “Whip Inflation Now.” Over the years, American presidents have tried, and mostly floundered, in their efforts to quell the economic and political menace of consumer inflation. Now, President Joe Biden is giving it a shot. Confronting a spike in gasoline and other consumer prices that’s bedeviling American households, Biden on Tuesday ordered the release of 50 million barrels of oil from the U.S strategic petroleum reserve.
  • The yield on benchmark government bonds rose yesterday. The yield on 2026 bond rose to 8.10%. Further, the yield on 2023 bond advanced to 5.30%, while that for the longer-dated 2030 issue rose to 9.67%.

In early trade on Wednesday 24th November 2021, the US dollar is trading higher against the South African rand at R15.8672, while the euro is trading higher at R17.8262.   The British pound has gained against the South African rand to trade at R21.2146.

By the close of trade on Tuesday 23rd November 2021, the euro advanced against most of the major currencies.

  • Traders and economists are convinced that the Bank of England will increase interest rates in December for the first time since the pandemic began, but students of the central bank’s history may harbor more doubts. The BOE has only hiked rates once in December in the past 45 years, and it’s much less likely to move outside months when it also delivers forecasts and a press conference where it can explain the decision to the public. The next one of those is in February. Christmas is little more than a week away from the Dec. 16 rate decision.
  • In Germany, private sector activity accelerated in November, but persistent supply bottlenecks in manufacturing continued to impact factory output and pushed up inflationary pressures to unprecedented highs.  Service sector activity advanced more than expected in November.
  • In the eurozone, business activity surged in November, despite supply chain disruptions, higher prices, and a surge in COVID-19 cases. Factory activity accelerated more than expected in November.
  • The European Central Bank (ECB) Vice President, Luis de Guindos stated that the factors influencing inflation are becoming more structural and permanent, thus dampening economic growth. He also stated that the ease in inflation is not as projected by the ECB.
  • The Turkish lira plunged 15% on Tuesday on its second-worst day ever after President Tayyip Erdogan defended recent sharp rate cuts and vowed to win his “economic war of independence” despite widespread criticism and pleas to reverse course. The lira fell to a low of 13.45 for the dollar, a record 11th session in a row. It has lost 45% of its value this year, including a drop of nearly 26% since early last week. Erdogan has put pressure on the central bank to embark on an aggressive easing cycle that, he says, aims to boost exports, investment and jobs even as inflation climbs to nearly 20%.
  • New Zealand’s central bank lifted interest rates for the second time in as many months on Wednesday, driven by rising inflationary pressures and as an easing of coronavirus restrictions supported economic activity. The Reserve Bank of New Zealand (RBNZ) raised the official cash rate (OCR) by 25 basis points to 0.75% in the final policy meeting of the year, saying it was appropriate to continue reducing monetary stimulus to maintain price stability and support maximum sustainable employment.
  • When Japan’s Ministry of Trade, Economy, and Industry (METI) reported earlier in November that Japanese Industrial Production (IP) had plunged again during the month of September 2021, it was so easy to just dismiss the decline as a product of delta COVID. According to these figures, industrial output fell an unsightly 5.4%…from August 2021, meaning month-over-month not year-over-year. Altogether, IP in Japan is down just over 10% since June, nearly 11% since peaking all the way back in April (there’s that month again).

In early trade on Wednesday 24th November 2021, the euro slipped against the US dollar to trade at $1.1262, while it has weakened against the British pound to trade at GBP0.8426.