Tag Archiveseconomic outlook


Advanced economies expected to drive 2014 growth

The IMF released their World Economic Outlook yesterday, below Stanlib chief economist Kevin Lings shares a brief summary: · Global growth has been revised down modestly to 2.9% in 2013 (down 0.3 percentage points relative to the July update) and to 3.6% in 2014 (down 0.2 percentage points relative to July update). These forecasts compare […]

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Decrease in corporate defaults globally

One corporate issuer defaulted this week, raising the 2011 global corporate default tally to 35, said an article published today by Standard & Poor’s Global Fixed Income Research, titled “Global Corporate Default Update (Oct. 13 – 19, 2011).”   The rating on U.S.-based Wastequip Inc. was revised to ‘SD’ from ‘CCC-‘ after the company provided […]

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Rates increase on the horizon?

Economic developments, particularly the potential second round inflation effects of the past year’s commodity and administered price shocks, would most likely prompt the SA Reserve Bank to hike interest rates towards the end of this year and will continue with hikes in 2012. This was the comment of private client wealth manager Citadel’s Chief Investment […]

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Kagiso PMI strengthens further

The seasonally adjusted Kagiso PMI put in a strong performance during March, rising to a 13-month high of 57.2 index points.   “Significantly, after rising to just above the key 50 point level in the first two months of 2011, the seasonally adjusted business activity index increased sharply from 51.6 to 59.7 points. This robust […]

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Upside risk to inflation but no change in interest rates

The latest Monetary Policy Committee (MPC) meeting ended today (24 March 2011) and in a statement this afternoon Governor of the South African Reserve Bank Gill Marcus said that “the MPC has decided to keep the repurchase rate unchanged at 5,5% per annum for the time being. Given the significant upside risks to the inflation […]

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The emperor has no clothes and other investment myths

Adrian Saville, CIO of Cannon Asset Managers, lifts the skirt on investment risks that abound and explores some of the opportunities that lie beneath the surface.     Since the onset of the global financial crisis, investors seem to have surged from risk loving to risk fearing and back to risk loving. Unlike the Emperor […]

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Business confidence increases sharply

The RMB/BER Business Confidence Index (BCI) jumped from 44 points in the fourth quarter of 2010 to 55 in the first quarter of 2011. An index number in net positive territory i.e. above the neutral level of 50 means there are now more companies that are optimistic than pessimistic about prevailing business conditions. The last […]

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Austerity has the world up in arms

By Andrea Muller   The year 2011 will be the year we see a significant worldwide increase in street rioting. This observation comes from Jeremy Gardiner, director, Investec Asset Management who was speaking at the quarterly media briefing about global prospects for the coming year. “If 2010 was a year characterised by confusion, this year […]

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