Another rate cut? Really?:
Market optimistic, but economists are
sceptical. JOHANNESBURG – After a boring couple of months on the interest rate
front, market speculation has recently been rife that another cut might be on
the cards. The Monetary Policy Committee (MPC) is scheduled to announce its
interest rate decision next week and might feel some pressure to follow in the
footsteps of other central banks who have decided to loosen monetary policy.
While some have also flagged the recent contraction in manufacturing output as
sufficient reason for a cut, others have stressed that the negative growth was
largely the result of the holidays in March this year. However, economists are
sceptical about whether there is a real possibility of another rate cut and if a
breather in this regard will have the desired effect.
China and the middle-income
trap: How likely is a major slowdown in
China & what will it mean? Growth in China is slowing. Its industrial output
is falling, GDP
growth has been coming in below
expectations, and
things are generally cooling off in the once super-hot economy. Part of this is
cyclical – economies go through phases just like anything else – and of course,
China has been feeling the chill emanating from the recession-riddled Eurozone.
But observers fear that part of it may be secular, that China may be entering a
new phase marked by slowdown and stagnation; in short, that it may be falling
into the middle-income trap (MIT). The MIT occurs when a country’s growth slows
and plateaus as the country reaches middle-income status. The world is littered
with nations that enjoyed a period of rapid growth and saw per capita incomes
rise from subsistence levels to middling levels, only to see growth sputter and
incomes stagnate. Generally, countries get stuck on the technological ladder –
wages are too high to qualify them as a low-cost manufacturing destination, but
skills and innovation are not high enough to make the leap to a high-tech
economy.
Amplats says miners report
for morning shift: Despite earlier
calls for a strike by some union leaders. Miners at South Africa's Anglo
American Platinum(JSE:AMS) reported
for work on Friday, a company spokeswoman said, despite earlier calls for a
strike by some union leaders. Amplats spokeswoman Mpumi Sithole said all workers
had reported for the morning shift and there had been no
trouble.
Tongaat expects yearly
earnings to rise: By more than 14%,
JOHANNESBURG - South Africa's Tongaat Hulett said on Thursday it expected
headlines earnings per share for the year to rise more than 14%, lifted in part
by increased sugar production. The agri-processing company said in a trading
statement sugar production rose by 9% to 1.25 million tons with major increases
in Zimbabwe - the latest sign of an agricultural recovery in the
country.
Manufacturing not yet out of
the doldrums: Local consumption key to
growth – Manufacturing Circle. JOHANNESBURG - The basis for a sustainable
manufacturing industry depends on the local market and South African producers
source 80% of their input sources domestically. In addition, manufacturers
consider government’s local procurement programme as being important for
boosting the sector, but they say it seems little is being done by the state to
meet manufacturers halfway.
Richemont chairman Rupert to
take sabbatical: I just want to be the
master of my own time for a while - Rupert. Cie. Financiere Richemont SA
Chairman and controlling shareholder Johann Rupert will take a year off, leaving
management of the world’s second-biggest luxury-goods company to a team of
executives including Cartier’s former CEO.
Glencore Xstrata chairman
ousted in surprise coup: John Bond was
voted out at the group's first annual shareholders' meeting. Glencore Xstrata
Chairman John Bond surprised investors on Thursday by announcing he had been
voted out of the top job at the miner and trader at the group's first annual
shareholders' meeting. Bond gave no explanation, but as the meeting began in
Zug, Switzerland, he handed responsibility for chairing the gathering to former
BP boss Tony Hayward, the company's senior independent
director.
Bill Gates is richest man in
the world once again: First time the
former Microsoft boss has held the title since 2007. Microsoft co-founder Bill
Gates has regained the title of world's richest person with a fortune valued at
72.7 billion dollars on Bloomberg's billionaire index, Bloomberg news service
reported Thursday. It is the first time the former Microsoft chief executive has
held the title since 2007. He took the title away from Mexican
telecommunications billionaire Carlos Slim.
Source: 28E Capital (Pty) Ltd
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