Economics | MoneyMarketing

26 Oct 2021

BlackRock's Weekly Market Commentary: A lopsided energy transition

Surging natural gas and coal prices amid a powerful economic restart have exposed a lopsided transition toward low-carbon power. We still see an orderly transition in the medium term – but with bumps on the way that could lead to growth and inflation volatility.

22 Oct 2021

Is a failure to implement reforms putting the economy at risk?

A failure on government’s part to exhibit any sense of urgency to make hard decisions regarding South Africa’s recovery process will exacerbate the country’s current economic challenges. A lack of economic growth over close to a decade – particularly compared to South Africa’s emerging market peers – has meant that the country’s income has not been able to accommodate either population growth or spending patterns.

20 Oct 2021

Why stagflation is a concern

Worldwide Google searches for the term stagflation are at the highest level in a decade. Bloomberg reported that its news service has published a record number of articles on the topic. There is clearly a worry that current elevated inflation will persist and coincide with global economic stagnation.

19 Oct 2021

BlackRock's Weekly Market Commentary: 1970s stagflation? It’s the opposite

Prices have climbed around the world, with commodities prices surging and U.S. inflation hitting a 13-year high. It’s the first time since the 1970s that a supply shock is the main culprit. This is where the comparison ends. There’s no risk of 1970s-style stagflation, in our view. Economic activity is increasing briskly and has room to run.

18 Oct 2021

Beyond GDP growth: why natural capital matters

As the climate crisis accelerates, financial markets are paying more attention to risks and opportunities stemming from the energy transition, taking into consideration the risks related to fossil fuel production and consumption.

12 Oct 2021

BlackRock's Weekly Market Commentary: Debt ceiling spat takes a breather

We still see a low risk of technical default by the U.S. and expect the debt ceiling debacle to ultimately resolve. The broadening economic restart keeps us tactically pro-risk, yet we see a narrowing path for risk assets to push higher and markets more prone to temporary pullbacks. Key events toward the year end, including the lapse of the temporary debt ceiling rise, could potentially trigger market volatility. We favor looking through market jitters against the backdrop of the restart.

11 Oct 2021

BCI declines in September: SACCI

In September 2021, the Business Confidence Index (BCI) declined to 91.0 after registering a highest level so far this year of 97.0 in May, the SA Chamber of Commerce and Industry (SACCI) said in a statement today.

05 Oct 2021

September storm: Inflation, Chinese property, and the US debt ceiling

Every once in a while, investors collectively decide that risks that were lurking in the background are now worth paying attention to. When that happens markets can endure serious wobbles. This is pretty much September’s story, when a perfect storm of three risks suddenly loomed larger than before: inflation (and interest rates), Chinese property, and the US debt ceiling.

30 Sep 2021

Repositioning for the reopening

The “social distancing winners” of 2020 were undoubtfully the largest beneficiaries of lockdown, while many cyclicals were left behind. Positive vaccine announcements in November, vaccination progress since and continued fiscal stimulus have paved the way for a post-COVID world.

27 Sep 2021

SA economy is Uno trying to be Ferrari – economist

South Africa is in urgent need of implementing the economic reform policies it has promised to do, but failed to deliver on, to turn the South African economy around. These were the words of warning by Dr Thabi Leoka, founder of economic consulting and advisory company Naha Investments, at the recently held Allan Gray Investment Summit, who painted a grim picture of the state of the SA economy.

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