Articles by 'Business Live'
Peregrine Seeks Targets with War Chest
Peregrine Holdings’ disposal of its structuring and broking businesses has left it with a war chest of nearly R1bn to fund its expansion, CEO Rob Katz said. The transaction became effective on October 1, leaving Peregrine with as much as R800m to deploy into its remaining businesses.Read More
The JSE opened weaker on Thursday as the market sought direction from a firmer rand, which in unusual trade gained on the dollar, despite the US Federal Reserve reaffirming a hawkish stance. The Fed hiked interest rates by an expected 25 basis points on Wednesday and pointed to a potential rise at its December meeting, with the likelihood of three increases in 2019.Read More
The rand extended losses at lunchtime on Tuesday, after the South African economy slipped into a technical recession, striking a severe blow to the "new dawn" narrative championed by President Cyril Ramaphosa. The rand fell as much as 2.5% to R15.26 to the dollar, its weakest level in about three weeks, making it the worst performer among emerging-market currencies on the day.Read More
After briefly hitting a two-year low of R15.02 to the dollar, the rand recovered on Friday afternoon but remained weaker than its overnight close. The rand came under renewed pressure after EFF leader Julius Malema introduced a bill in Parliament proposing that the state become the South African Reserve Bank’s sole shareholder.Read More
This is Why the Rand is Nose-Diving
The rand’s continuing plunge on Monday has been mostly due to emerging-market contagion based on events in Turkey, but other factors are conspiring to ensure the local currency is set for a turbulent few months. Global monetary policy tightening: the US Federal Reserve and European Central Bank are currently moving to unwind unprecedented levels of monetary policy stimulus put in place in the wake of the 2009 financial crisis. Emerging-market currencies and bonds have benefited from ultra-low interest rates in developed markets, as these have prompted investors to seek higher yield.Read More