SA Economic outlook: A view on the second half of 2017

We’re finally into the second half of 2017, however the first six months of the year have been a roller-coaster ride, marred by the following events:

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• South Africa was downgraded to sub-investment grade

Japanese shares continue to rise despite weak trade data

The country's exports fell by 8% in December from a year earlier, suggesting that China's slowdown continues to affect demand.

The Nikkei 225 index rose by 0.3% to 17,006.28 points, building on Friday's rally when it climbed almost 6%. 

Markets surged late last week on hints that central banks in Europe and Japan would continue monetary easing.

Clicks Group posts Solid Growth amid Cosmetics Glitter

 

STRONG trading by Clicks Group during the festive season and into the new year has signalled that even in tough times, beauty products remain an affordable luxury.

The retailer reported on Thursday a 12.2% growth in turnover to R9.2bn for the 20 weeks to January 17, largely driven by promotional activity.

South African retailers are increasingly relying on markdowns and specials to drive sales as escalating living costs, debt and a moderation in income growth curb household spending.

The Clicks chain reported comparable store sales growth of 10.6% and showed volume growth of 7.2%.

Selling price inflation was measured at 3.4%.

IMF gives China's currency prized reserve asset status

The International Monetary Fund admitted China's yuan into its benchmark currency basket on Monday, in a victory for Beijing's campaign for recognition as a global economic power.

 
The decision to add the yuan, also known as the renminbi, to the Special Drawing Rights (SDR) basket alongside the dollar,

JSE opens firmer as Gold and Platinum Stocks recover Prices.

THE Johannesburg Stock Exchange opened firmer in early morning trade on Monday as gold and platinum shares recovered on higher commodity prices.

The gold price gained 0.31% to $1,092.76/oz and platinum was up 0.45% at $939.30 after the opening.
The all share was sold off by more than 2% on Friday on the expectation of a US rate hike in December.
Asian markets were mixed on Monday, with the Shanghai Composite index up 1.59%, while the Hang Seng lost 0.24%. The Nikkei 225 climbed 1.96%.
US markets were generally stronger on Friday on the upbeat US data. The Dow closed 0.26% higher.
At 9.29am the all share was up 0.60% at 53,280.30 points and the blue-chip top 40 had added 0.63%. The gold index was up 3.83% and platinums gained 1.09%. Industrials added 0.68% and financials were up 0.49%.

German experience fall in exports in August

German exports fell in August by their largest amount since the height of the global financial crisis in 2009, and imports were also down sharply.

 

Data from the Federal Statistics Office showed seasonally-adjusted exports fell by 5.2% from July to €97.7bn (£71.8bn).

LafargeHolcim launch globally combined building materials

LafargeHolcim, the company formed by the recent merger between Holcim and Lafarge, on Wednesday officially launched their new combined building materials company and committed to delivering savings of 1.4 billion Euros ($1.54 billion) within three years.

 

The new company with a combined global capacity of 386 million tons per annum (mtpa) aims to shift focus to faster growing emerging markets in Africa and Asia where cement demand is booming.

“By the end of 2016 we will have completed the integration,” LafargeHolcim Chief Executive Eric Olsen said in a conference call in Zurich. “Within 1,000 days we will realise the full synergy potential.”

Nigerian Economic situation gets Messier as Crude Oil Prices decline further

The Nigeria’s financial situation may get messier if the prediction of the International Energy Agency (IEA) comes to pass.

According to the agency, oil prices may fall further this year because the world remains “massively oversupplied,” before markets tighten in 2016.

Nigeria economy is experiencing some difficulties because of the decline in the price of crude oil. The country depends on oil as it major source of foreign exchange earnings. It current daily production averaged 1.8 million barrel per day as against projected 2.3 million barrels per day in the 2015 budget of the government.

Crude oil theft coupled with constant pipeline vandalism by militants in the Niger Delta have combined to castrate the crude oil production growth in the country.

Nigeria Naira loses N1.26k to CBN’s policy on FX

The naira on Wednesday lost N1.26k or 0.64 percent against the US dollar at the inter-bank market following the Central Bank of Nigeria’s (CBN) policy restricting access to foreign exchange by importers of certain items.

 

Consequently, after trading on Wednesday, the local currency closed at N198.58k/$ compared with N197.32k/$ the previous day, according to data from Financial Markets Dealers Quotations (FMDQ).