Thursday, 19 July 2018

Inflation up but rate hike unlikely.

JOHANNESBURG - South Africa's consumer inflation accelerated slightly in June as the weaker rand continued to exert upward pressure on fuel prices, but remained within the mid-target range of the SA Reserve Bank (Sarb) – quelling fears of a possible rate hike. 

Data from Statistics South Africa (StatsSA) yesterday showed that inflation rose 0.2 percent to 4.6 percent last month from 4.4 percent in May, with low food prices offsetting the effects of the higher fuel price. 

Economists, however, said that the slight increase was unlikely to sway Sarb’s hand into undue hawkishness when its Monetary Policy Committee (MPC) delivers its interest rates decision this afternoon. 

Investec’s Lara Hodes said that the market expected no change in the repo rate as the outlook remained relatively flat in the immediate term. Hodes said that the MPC would be more concerned with oil prices and the rand’s exchange rate against the dollar. 

Full story at IOL.
By Siseko Njobeni.

Wednesday, 18 July 2018

UK wage growth slides to lowest rate in six months.

Morning commuters walk across London Bridge
with Tower Bridge in the background
Photograph: Daniel Sorabji/AFP/Getty Images
The rate of pay growth for British workers has fallen to the lowest level in six months, despite record numbers of people in work across the country, official figures show.

Heaping renewed pressure on the Bank of England to delay raising interest rates from as early as August, the latest snapshot for the British labour market showed workers are still unable to demand higher pay despite the lowest unemployment levels since the mid-1970s. High rates of employment and low levels of unemployment usually signal rising wages.

The Office for National Statistics said average weekly earnings rose by 2.5% on the year in the three months to May, slowing down from the previous three months when they grew by 2.6%. Pay growth excluding bonuses also slowed by a similar amount to 2.7%.

There have been signs of recovery in the British economy that could tempt the Bank to raise interest rates from as early as next month to counter persistently high levels of inflation since the EU referendum two years ago. Having shuddered to a standstill during the freezing weather earlier this year, the economy rebounded in May thanks to warmer weather and the royal wedding. The Bank has previously said it would raise rates should the economy continue to improve.

By Richard Partington.

Full story at Yahoo News.

Tuesday, 17 July 2018

Alarm for Netflix as shares plummet on worse-than-expected subscriber growth.

The Netflix office in Hollywood. In total, the company said it had added 670,000 streaming customers in the US, barely more than half its anticipated 1.2 million subscribers. Photograph: Lucy Nicholson/Reuters
Netflix, the streaming giant behind hits like The Crown and Stranger Things, missed its own forecasts by more than a million subscribers, sending its shares down sharply.

The company second-quarter results, announced on Monday, spooked investors and suggested the company’s explosive subscriber growth may now be slowing. Netflix shares fell 14% to $346.05 in after-hours trading in New York.

For the second quarter, Netflix reported a profit of $384.3m, or 85 cents a share, up from $65.6m, or 15 cents a share, a year earlier.

The company blamed the surprise subscriber target miss on faulty internal forecasting.

By Edward Helmore.

Full story at Yahoo News.

Monday, 16 July 2018

10 things you need to know in markets today.

Crains New York.

Good morning! Here's what you need to know in markets on Monday.

1. President Donald Trump called the European Union a "foe" of the United States in an interview that aired Sunday. "I think we have a lot of foes," Trump said. "I think the European Union is a foe, what they do to us in trade. Now, you wouldn't think of the European Union, but they're a foe."

2. Chinese economic growth slowed fractionally in the June quarter, as expected. According to China’s National Bureau of Statistics (NBS), GDP grew by 6.7% from a year earlier — in line with forecasts — maintaining the streak of either meeting or exceeding forecasts by 0.1 percentage points (ppts) in every quarter over the past three years.

3. President Donald Trump will head into his first summit with Vladimir Putin on Monday without a clear agenda and little preparation. The president will go into the summit followed by whispers about his ties to Moscow, questions that have grown only more urgent since the Justice Department last week indicted 12 Russian military intelligence officers accused of interfering in the 2016 election in an effort to help Trump.

By Will Martin.

Full story at Yahoo News.

Friday, 13 July 2018

Lagos-Ibadan light rail will not only boost economy, but create jobs for Nigerians- Ashafa.

Senator Gbenga Ashafa, representing Lagos East Senatorial District has expressed assurance that the on-going constructction of Lagos-Ibadan Light Rail project when completed will not only boost the economy of the country, but create thousands of jobs for Nigerians.Ashafa, however, commended the level of work and commitment of the Federal Ministry of Transport, Nigeria Railway Corporation, NRC, and construction firm handling the on-going constructction of Lagos- Ibadan Light Rail project. 

Ashafa the Chairman, Senate Committee on Land Transport made the remark, yesterday, during the Joint Senate and House of Representatives oversight visit to the Headquarters` of the Nigeria Rail Way Corporation in Lagos and inspection of the work being done at the Lagos-Ibadan segment of the rail revitalization project.

According to him, “I must commend them for their commitment towards the revitalization of Nigeria rail. 

“Let me commend the Ministry of Transport, the NRC and CCECC for the commitment they have displayed towards the actualization of the rail revitalization agenda of President Muhammadu Buhari.

Full story at The Nigerian Vanguard.

Thursday, 12 July 2018

Saving is only getting harder in SA – economist.

South Africa's current economic conditions mean it will only get harder to save for the future – but at the same time, South Africans need to save more than before.

This is according to Old Mutual Investment Group Economic Strategist Rian le Roux, who says the stagnant economy, with rising dependency ratios, means saving for the long term is becoming ever more challenging.

Speaking at the 2018 Old Mutual Savings and Investment Monitor Results Briefing on Wednesday, Le Roux said people often made their worst investment decisions when emotions were running high.

Full story at Fin24.

By Marelise van der Merwe.

Wednesday, 11 July 2018

Marks & Spencer chair to shareholders: 'We're on a burning platform'

The chair of M&S has warned of the existential
threat faced by the hight street giant.
Photograph: Jack Taylor/Getty Images
The chairman of Marks & Spencer has given his starkest warning yet about existential threat faced by the high street giant as he refused to rule out further store closures and job losses.

“This business is on a burning platform,” said Archie Norman, who took over as M&S’s chairman last year. “We don’t have a God-given right to exist and unless we change and develop this company the way we want to, in decades to come there will be no M&S.”

Norman’s language echoed that of Nokia chief executive Stephen Elop in 2011, when the mobile phone firm was facing annihilation by smartphones. He said the retailer is in the first phase of a five-year turnaround that involves first getting the company to acknowledge the serial management failings that have resulted in years of falling clothing sales and declining profits.

By Zoe Wood.

Full story at Yahoo News.

Tuesday, 10 July 2018

Festus Adebayo: Investing in housing will reduce unemployment rate by 50% - Expert.

Real Estate expert, Festus Adebayo, says Housing will reduce
Nigeria’s unemployment by 50% (Times Nigeria)
Housing expert, Festus Adebayo, believes that investing in the real estate sector would reduce Nigeria’s unemployment rate by 50%.

A real estate expert, Festus Adebayo, has advised the federal government to invest the unclaimed dividends in the Pension Fund in the housing sector.

Adebayo believes that investing in the real estate sector would reduce Nigeria’s unemployment rate by fifty percent.

Addressing journalists in Abuja, the legal practitioner and coordinator of the Abuja Housing Show noted that the real estate sector could improve Nigeria’s economic fortunes if given the needed attention.

“If government can focus on the housing sector, unemployment rate in Nigeria will go down by at least fifty per cent,” Adebayo announced.

Full story at Pulse NG.

By Goodness Adaoyiche.