The Markets Daily

As the early morning bell tolls, signalling the start of the trading day, dread descends upon dealing rooms. After the carnage that befell currency and bond markets yesterday, market participants are preparing for the worst as curves reprice meaningfully amid a rapid acceleration in US Treasury yields. Month end is notoriously challenging, but this week has proved particularly severe as the uptick in US real and nominal yields has deformed EM prices.

See omnystudio.com/listener for privacy information.

With no inspiration from the aloe ferox to draw on, Finance Minister Mboweni turned to faith, quoting Archbishop Desmond Tutu in the opening verses of his Budget sermon on Wednesday...

See omnystudio.com/listener for privacy information.

It truly is a busy week for policymakers around the world. Jerome Powell, chair of the Federal Open Market Committee, spoke to the Senate Banking Committee yesterday (he is expected to continue today). In his remarks he continued emphasise the Fed’s dovish position in particular highlighting that the FOMC are unlikely to start raising interest rates until the US economy reaches full employment (with current employment 10 million people lower than a year ago),

See omnystudio.com/listener for privacy information.

An end to lockdown is near – at least in England. Prime Minister Boris Johnson presented his roadmap for the England’s re-opening this year. Unsurprisingly, schools and colleges are slated to open on 8 March and and people will be allowed to meet a person from another household outdoors.

See omnystudio.com/listener for privacy information.

News headlines were dominated at the end of last week of the landing of the Mars Perseverance Rover and its helicopter Ingenuity. This is another step in humanity’s exploration of our solar system, and toward considering the feasibility of sending human’s to Mars – a significant achievement since the Space Age first began in 1957.

See omnystudio.com/listener for privacy information.

Our sporting pedigree is mixed but is a definitive example of South Africa’s exceptionalism, of which the president is a great advocate. In recent days he has preached about building scientific and engineering capacity to resolve the country’s most pressing healthcare and energy challenges.

See omnystudio.com/listener for privacy information.

In a world governed by social media and free speech, we’re accustomed to political flex. It’s rather bizarre when that’s accompanied by actual flex as a growing number of global officials expose their arms to receive Covid vaccines.

See omnystudio.com/listener for privacy information.

Following yesterday’s close of 14.44 against the US dollar, the rand is on the backfoot this morning, opening today’s trading session at 14.69. The snap this morning follows six consecutive days of the rand grinding stronger and is fuelled by fears that the stimulus-led recovery will lead to inflationary pressures.

See omnystudio.com/listener for privacy information.

S.O.S. South Africa has been in a national state of disaster since March last year – this related to drought and the covid-19 pandemic with the latter soon to have spanned a full 12 months. If that weren’t enough – a state of disaster relating to the impact of Tropical Storm Eloise has now been declared as residents of the north-eastern side of the country have been significantly affected, with 280 houses partially or totally

See omnystudio.com/listener for privacy information.

I have no doubt that there are many parents who are relieved today has arrived – “Back to School”. Actually, I wouldn’t be surprised if quite a few of SA’s learners will be happy to get back to learning and seeing friends.

See omnystudio.com/listener for privacy information.