President Zuma Survives Calls to Quit With Backing From South Africa’s ANC

President Zuma Survives Calls to Quit With Backing From South Africa’s ANC

JOHANNESBURG (Capital Markets in Africa) – South African President Jacob Zuma survived calls to resign by winning the support of the ruling party following his decision to fire the finance minister and stack the cabinet with loyalists. The rand weakened. The African National Congress won’t vote against Zuma in a no-confidence motion in parliament that the main opposition parties have requested, Secretary-General Gwede Mantashe told a briefing Wednesday in Johannesburg after a meeting of the ANC’s National Working Committee….

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South Africa’s finmin Gigaba to take “tough, unpopular choices” to grow economy

South Africa’s finmin Gigaba to take “tough, unpopular choices” to grow economy

JOHANNESBURG (Capital Markets in Africa) – South Africa’s new Finance Minister Malusi Gigaba said on Monday he would pursue “tough and unpopular choices” to oversee economic growth and a redistribution of wealth to the country’s black majority and help grow a flagging economy. Africa’s most industrialised economy faces the risk of being downgraded to junk status owing to weak growth and the political upheavals after it got a reprieve last year. The economy grew by 0.3…

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South African markets fall sharply after S&P downgrade

South African markets fall sharply after S&P downgrade

JOHANNESBURG (Capital Markets in Africa): South Africa’s rand, bonds and banking shares tumbled sharply on Tuesday after S&P Global Ratings cut the country’s credit rating to junk in response to President Jacob Zuma’s move to sack its respected finance minister. Zuma’s cabinet reshuffle has triggered public criticism from within the ruling African National Congress (ANC) and pressure is likely to mount on the president after the credit agency handed South Africa its first downgrade since…

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Rand tumbles after S&P downgrades South Africa to “junk”

Rand tumbles after S&P downgrades South Africa to “junk”

JOHANNESBURG (Capital Markets in Africa) – South Africa’s rand fell more than 2 percent on Monday to its weakest in almost three months after S&P Global Ratings cut the country’s credit score to sub-investment grade with a negative outlook after last week’s dismissal of the South African finance minister. Stocks were higher on the day, led by gold shares, as demand for the safe-haven asset rose globally in response to worries U.S. President Donald Trump…

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South Africa’s credit rating downgraded to junk by S&P after finmin changed

South Africa’s credit rating downgraded to junk by S&P after finmin changed

JOHANNESBURG (Capital Markets in Africa) – S&P Global Ratings downgraded South Africa’s sovereign credit rating to BB+ from BBB- grade on Monday, saying the recent firing of its internationally respected finance minister posed a risk fiscal policy. The rand fell by as much 2 percent to the dollar in response to the news of the downgrade, while government bonds also weakened sharply. “The downgrade reflects our view that the divisions in the ANC-led government that…

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South African Assets Tumble as Gloom Pervades Fiscal Outlook

South African Assets Tumble as Gloom Pervades Fiscal Outlook

JOHANNESBURG (Capital Markets in Africa) – South African bank stocks tumbled and bonds plunged as the rand headed for its biggest weekly slide since 2015 after the firing of Finance Minister Pravin Gordhan raised concerns about the country’s fiscal path and its investment-grade credit rating. The rand dropped as much as 2.6 percent before paring the decline to trade 0.9 percent weaker at 13.3995 per dollar by 5:15 p.m. in Johannesburg, heading for a seven-week low. Benchmark…

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Opinions on Removal of South Africa’s Finance Minister Gordhan

Opinions on Removal of South Africa’s Finance Minister Gordhan

JOHANNESBURG (Capital Markets in Africa) – Financiers, economists, labor leaders, lawmakers and officials from the ruling African National Congress are all having their say on how the decision by South African President Jacob Zuma to fire Finance Minister Pravin Gordhan and other cabinet members will affect the economy, the country’s credit ratings, bonds and the local currency. Colin Coleman, head of sub-Saharan Africa at Goldman Sachs Group Inc, tells Bloomberg TV: The cabinet reshuffle “removes the belt and braces over…

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