WATCH: November 2019 Economic Update

Moody’s downgraded SA’s outlook, putting the country a notch away from junk status.

Annual inflation fell to 3.7% in October which is the sixth consecutive month of decline.
The rand strengthened against the US dollar closing at R14.67 (30/11/2019) from R15.03(01/11/2019), due to continued progress in the US-China trade negotiations.
The Year to Date markets performance:
- The JSE Top 40 index: 5.12%
- Dow Jones: 20.25%
- NASDAQ: 30.60%
- S&P 500: 25.30%
Eskom appoints a new CEO: Andre de Ruyter’s main task at the power utility will be to implement reforms that will help the embattled state-owned enterprise ensure stability in the county’s power supply. He will also have to address financial management challenges among other issues that beset the power utility.
The Sarb maintained the repo rate at 6.5% and the mortgage rate at 10%.
Rating agencies namely S&P and Moody’s have simultaneously changed South Africa’s outlook on long term debt from stable to negative a notch away from junk status.
Trade tensions between the US and China continue to dominate international markets but have eased in November, which is good news for the global markets.
Following Britain’s failure to leave the EU bloc, Britain’s Prime Minister Boris Johnson has advised that there will be a general election on December 12 2019.
Donald Trump’s impeachment inquiry continues to take centre stage in global politics, with no impact on markets yet.

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