Star 2024-04-11

SOUTH Africa’s economy could be under the threat of catching flu as one of its biggest trading partners sneezes after Fitch Ratings downgraded China’s credit outlook. Fitch yesterday revised China’s sovereign credit outlook from stable to negative, while affirming its A+ rating amid mounting concerns regarding the nation’s public finance outlook. China’s wide fiscal deficits have been high since 2020, running roughly at twice the 3.1% of gross domestic product (GDP) 2015 to 2019 average, and the 2024 deficit is forecast to be the highest since the 8.6% of GDP deficit in 2020. Fitch’s primary rating analyst, Jere- my Zook, said China was contending with more uncertain economic prospects amid a transition away from property-reliant growth to what the government views as a more sustainable growth model. “We forecast the…

CORONATION Fund Managers has forecast that SA Inc will continue to struggle against constrained economic growth ahead of this year’s elections as the performance of locally focused South African stocks has been poor. South Africa is headed for a key election that could result in a shake-up of the governing ANC’s majority in Parliament, with many analysts and poll surveys predicting a coalition government post the elections. Coronation portfolio manager Charles de Kock yesterday emphasised that there would be no easy fixes for South Africa’s current infrastructure challenges. “While we don’t have the ability to forecast the outcome of the election more accurately than what the polls predict, our view is that the problems faced by the South African economy cannot be fixed quickly,” he said. “Even if the correct…

SIBANYE-Stillwater CEO Neal Froneman told the platinum group metals (PGMs) Industry Day conference in Johannesburg yesterday that mobility remained the biggest driver of PGM demand. Froneman also said that understanding how battery electric vehicles (BEV) would replace internal combustion engines (ICE) was key to understanding the dynamics of the industry. “Mobility plays a significant role in supply and demand. We need to focus on people and their preferences. New technologies, such as hydrogen-powered engines, are becoming more viable and are being developed by companies like Toyota,” Froneman said. “In addition, we must consider the impact of virtual work on mobility as there will be less demand for mobility going forward. In the first quarter Tesla reported a 9% year-on-year decline in sales, which was the first decline since 2012. “We…

Avian influenza, the H5N1 strain that has killed hundreds of millions of birds globally and millions of chickens in the past 18 months in South Africa, has now been detected in a Texas farmworker and dairy cows in six US states. Smalltalkdaily Research’s independent analyst Anthony Clark yesterday said that the disease had jumped the species barrier, and the US Centres for Disease Control and Prevention (CDC) was now monitoring the evolving situation. “Given my works in agriculture, food producers and soft commodities, it would be remiss of me not to highlight this developing story and make a comment in this note,” Clark said. “There is no cause for concern at this stage within South Africa as the disease in dairy cattle is only reported in the US.” Clark also…

THE JUST OVER a month-old National Financial Ombud Scheme (NFO) yesterday announced the appointment of its first Head Ombud, Reana Steyn. The NFO started operations on March 1 as an independent body that resolves complaints brought by consumers against South African financial institutions – for free. The one-stop, all-in-one dispute resolution service is made up of the four former services: Ombudsman for Banking Services; the Credit Ombud; the Ombudsman for Long-Term Insurance and the Ombudsman for Short-Term Insurance. NFO board chairperson Haroon Laher said Steyn’s extensive expertise and vast experience with the OBS, Credit Ombud and at one of the country’s leading insurers, her leadership positions, qualification as an attorney, coupled with her people management experience and training of staff of the previous schemes, provided her with a unique perspective…

WITH THE MINING Indaba set to take place later this month, Lesotho is well on its path to reviving its extractive industry. A first for the country having previously attended the Mining Indaba in Cape Town last year, the foresight of bringing it to Lesotho can only serve to further cement the country as a key player in the mining sector. Under the banner: “The future of mining in a global landscape” the indaba will not only showcase what the country has to offer in terms of mining, but will also provide a platform to discuss chronic challenges faced by the sector. It is only through tackling the problem head-on that Lesotho can continue to attract investors that will ultimately play a role in the growth of the sector. Despite…