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Daily Dose

5 February 2014

Ciao,

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On the wires

Bill gates steps down as Microsoft chairman…..UK shop first to use Bitcoin price tags…..Excess sugar doubles heart attack risks new study shows….KP will never play for England again….Spain nets a ton of cocaine in floating backpacks…Boy 10 pulled over for driving…..Toyota invests R1 Billion in SA for new Corolla…..

Currency Crack Down

Another volatile session on the currency markets again yesterday with the Rand in a 11.07-11.28 range to the USD in an almost mirror of Mondays range but just the other way round with the local unit retracing the previous day’s losses. The gains were on the back of poor data in the manufacturing sector in the US with the perception that this will slow the FED tapering down which in my humble opinion is highly unlikely. Emerging markets in general had a better day after Indonesia reported the largest trade surplus in 2 years and Australia signalled that their interest rates would only go up from here. The AMCU meeting yesterday with platinum bosses hasn’t yielded any noteworthy news yet but a press conference is scheduled in CT later today by the union boss Joseph Mathunjwa so keep an eye on developments there, an agreement with the striking workers will be positive for the currency. Equity markets have been under severe pressure in 2014 with the JSE also hard hit yesterday as it followed global markets lower by 1.2% but on the flip side the bonds had a better day with foreign buyers emerging from the woods. 11.07 to the USD for me is a level to break and psychologically the 11 handle will bring some support, past experience tells me that to bet on a stronger Rand may not be the wisest but I have a sneaky suspicion that we could see a move that will make the importers a little happier.

Two Cents Worth

So now it turns out that a “foreign donor” was responsible for the DA and Agang holding hands and kissing albeit for a brief three days before it all fell to pieces. Helen Zille on a radio station yesterday admitted that cash was the incentive for getting Mamphela Ramphele to the table. Now the ANC is all up in arms because they are worried about foreign donors creating leverage in the politacal landscape by throwing cash at the problems. Hahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahaha.
I nearly spat my morning coffee (still no sugar) on my screen when i read that, do they consider the Guptas local then and have they forgotten about the arms deals, oilgate and every other graft scandal out there. The Agang/DA thing was not a good poster for the opposition party and i am sure the ANC spin doctors will be all over it but pointing fingers at potential financial representations is not one of them.

Did you know?

About 80% of a child's intelligence is acquired from the mother.(This I do agree with as my kids definitely have my wife’s brains because I still have mine)

Have a wonderful day

Mac 

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