Global Courant
Here’s what’s happening in and affecting South Africa today:
Bond crisis: The South African Reserve Bank (SARB) says local investors buying government bonds may not be able to fill the gap left by foreign investors. The SARB said South Africa’s greylisting and non-investment grade status could lead to bond sell-outs by international investors. However, with the arrival of local investors, there are concerns about the country’s financial stability regarding market liquidity, increased volatility and higher domestic government bond yields. (Business day) Chicken disease: At least 550,000 chickens have been culled in the Western Cape after an outbreak of highly pathogenic bird flu (HPAI). In late May, the Department of Agriculture said five HPAI outbreaks had been confirmed across the province and all affected farms had been quarantined. Izaak Breitenbach of the South African Poultry Association said none of the affected meat or eggs will make it to retail or wholesale, meaning consumers will not have direct contact with the products. (Money Web) Eskom issue: Ratings Africa says few municipalities defaulting on their Eskom bills will be able to meet the National Treasury’s strict municipal debt relief plan. Municipalities currently owe the energy company about R56 billion, but the plan’s strict terms could see it collapse altogether. For example, the 12-month compliance measurement period is a major problem, because municipalities have to start from scratch when one of the reception conditions is violated. (Money Web) Fort Hare University fire: Fort Hare University management says a group of students set fire to parts of the campus before the start of their mid-year exams. The embattled university said the foyer of its indoor sports complex was vandalized, while some of its computers were also vandalized. Students are said to be dissatisfied with their current exam schedule, but the university says students were consulted about the schedule changes weeks ago. (EWN) Markets: The South African rand was up about 1% on Friday as the US central bank is expected to pause on interest rates this month. Markets are now pricing in a 20% chance that the Fed will hike by 25 basis points compared to a 50% chance a week earlier, according to the CME FedWatch tool, prompting a return to riskier currencies. On Monday (June 5), the rand was trading at R19.55/$, R20.92/€ and R24.31/£. Brent oil is trading at $76.96 a barrel. (Nasdaq)
5 important things happening in South Africa today
Africa Region News ,Next Big Thing in Public Knowledg
