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PixabayThis report is brought to you by Sable InternationalThe news couldn’t have come at a worse time, as investor sentiment is at an all-time low. The Rand is trading above R19 against the Pound and an impending downgrade of the economic outlook for South Africa is knocking at the door.State-owned enterprises (SOEs) Eskom, South African Airways and Transnet continue to struggle. The only hope the economy has is the upcoming holiday season that sees on average of over R200 billion spent across the country. However, this is only a short-term moment of glee as the Rand could most likely stay around…
Canva.comIn spite of the two economic power-houses having showed glimpses of a consensus being reached, the month closed on a sour note after the US passed two bills antagonising China. Risk assets declined on worries over how the Chinese might react, suggesting that a trade consensus is far from being reached. In South Africa, the local bourse sold off over trade-war uncertainties, which were compounded by poor economic data and further outlook downgrades by ratings agencies S&P and Moody’s.South AfricaIn South Africa, the SARB kept the repo rate unchanged at 6.5% as expected, however, downgraded its GDP forecast for 2019…
Image via Adobe StockThis is according to long-established global workforce solutions company ManpowerGroup SA’s latest employment outlook survey which forecasts a national payroll expansion of just 2%.The research, was directed at gauging employers’ intentions of expanding their workforce in 2020, was carried out across a range of economic sectors, as well as large, small, medium and micro-businesses.According to ManpowerGroup SA managing director Lyndy van den Barselaar, while “10% of employers forecast an increase in payrolls, 8% anticipate a decrease and 81% expect to make no changes. Once the data is adjusted to allow for seasonal variation, the outlook stands at…
Image via Adobe StockNot only is it a great way to teach them about the value of money from an early age, it can also be a lot of fun and a great way to spend time together.Getting things startedWhile there are a number of ways to get the ball rolling, probably the best first step for you and your child is to visit the New to investing section of our website, which explains how investing works in a way that’s simple and easy-enough for just about anyone to understand.Once you have the basics figured out, the next step is…
South African Rand / Adobe StockAt the time of our last report, the Rand was in a weak position after Eskom implemented Stage 6 load shedding. In the UK, polls were coming in predicting the Conservatives would take a majority in the UK election, giving the Pound some solid strength as the idea of a hung parliament seemed less likely.As the week went on, we saw some astronomical volatility in the markets, with movements in excess of 2% in a day. While these movements are common with the Rand, when it happens with major currency pairs such as the GBP/USD…
Government has noted rating agency Fitch’s decision to affirm South Africa’s (SA) long-term foreign and local currency debt ratings at ‘BB+’ and maintain the negative outlook. The country’s foreign and local credit ratings by the agency, therefore, remain one notch below investment grade. [Read] Government notes #Fitch’s decision to affirm South Africa’s long-term foreign and local currency debt ratings at ‘BB+’ and maintain the negative outlook. The country’s foreign&local credit ratings by Fitch remain one notch below investment grade. https://t.co/Vv7ZiguNmy pic.twitter.com/W98pLIgwYN— SA Gov News (@SAgovnews) December 19, 2019 Fitch details reasons behind SA’s poor credit ratingAccording to Fitch, South Africa’s ratings are…
Image via Adobe StockKnowing where to start can be tricky, so to help you out we’ve put together a checklist of things you may want to consider when putting together your financial plan for 2020.Do you have a financial adviser?Research has shown that working with a financial adviser can significantly help you achieve your long-term investment goals. Not only are they able to help you with some of the more complex investment decisions – such as planning for your retirement – but they can also help you set realistic investment goals and ensure that you stay on track to reach…
QuestionBecause the performance of South African equities has been so poor in the past three years, I’ve been putting my savings into cash investments to avoid losses. Should I leave it there? I’m saving for longer-term goals like my children’s university costs and retirement. AnswerYou may be pleased with your decision to have built up your cash holdings, since cash investments have returned around 2.3% per annum more than the local equity market over the three years to 30 September 2019. Investors have generally not been rewarded for holding riskier assets like equities. Yet as a longer-term investor, you should be concerned…
Image via Adobe StockThese seven growth trends for 2020 will help you get ahead and make it a great year for your small business.Finesse your small business brandNo matter your area of operation, your business needs to have a strong and consistent brand to stand out. This helps customers identify your business, and helps you and your employees represent the business.Start with something as simple as your logo. Is it displayed correctly wherever it is used? Ensure you’ve got a high-quality logo that works online and in print.Check through things like email signatures, letterheads and social media pages. Everywhere a…
Image via Adobe StockThis report is brought to you by Sable InternationalThis volatility comes amid a background of geopolitical tensions between the US and Iran as well as slightly stronger emerging market currencies.The Rand’s movement was mainly influenced by external factors such as geopolitical risk and the overall trend in emerging market economies. This is highlighted in the fact that the ZAR moved in tandem with the Turkish Lira during the early parts of last week (up to New Year’s Eve). The two currencies diverged on Friday at the news of the US airstrike killing a prominent Iranian general.The ZAR lost…