MONEY LIVE | Rand jumps to strongest level in weeks as Powell soothes policy fears | Fin24

2022-01-12 09:30:00 AM

Breaking news in business and markets.

MONEY LIVE | Rand jumps to strongest level in weeks as Powell soothes policy fears.

Breaking news in business and markets.

In testimony at his renomination hearing on Tuesday, Powell said the US economy was ready for higher interest rates and a runoff of its asset holdings - dubbed quantitative tightening (QT) - to combat inflation."While Powell didn't really push back on market pricing around expected Fed rate hikes, we've certainly seen relief play out across markets" after he"tried to remove a belief that they are stuck on a set path," Chris Weston, head of research at brokerage Pepperstone, wrote in a note to clients."

Read more: Fin24 »

Eskom implements Stage 2 power cuts from 4pm to midnight

The utility stated there is a high probability of blackouts on Wednesday and Thursday evenings. Read more >>

MONEY LIVE | JSE starts new week with gains, Steinhoff rallies another 5% | Fin24MONEY LIVE | JSE starts new week with gains, Steinhoff rallies another 5%. Taking care of my debts and giving my family the best financially is what I have long waited for, TarellaCampbel thank you for helping me gain financial success.

Untimely roadblocks a complete waste of money – The CitizenThe Citizen provides easy to digest, up to date news and information to our online community. As a leading news publication in South Africa, we focus on bringing strong, easy to read news and information to our readers in a way that suits their busy lifestyles. The Citizen covers a large variety of reader interest subjects such as news, sport, business, politics, entertainment and leisure, motoring, health, analysis, auctions and horse racing just to name a few.

Caf increases Afcon 2021 prize money and will use VAR in all 52 matchesThe Confederation of African Football (Caf) have increased the prize money on the eve of the 2021 Africa Cup of Nations kickoff on Sunday, and said all 52 matches will use Video Assistant Referee (VAR). It shows our own is in charge. Improvements all the way You're indeed a great woman to the called, because of the good and excellent work you did for me, I'll be sharing the good news about you Robert_BAR1 And will that improve our National Team Bafana Bafana performance? asking for a friend.

MONEY LIVE | 'Value is not at all reflected in the stock.' CEO buys R155m in Prosus shares | Fin24MONEY LIVE | 'Value is not at all reflected in the stock.' CEO buys R155m in Prosus shares -

COVID-19 LIVE UPDATES | We are moving to a situation 'where we can live with Covid-19'Coronavirus live updates

WATCH LIVE | Motshekga briefs media on schools’ readiness for 2022Basic education minister Angie Motshekga is expected to brief the media on Tuesday on schools' readiness for the 2022 academic year. I know we all probably must have heard about Bitcoin but don't know how it works, I tried it in a week ago by a man who recommended me to Leticia_thomas3 on Twitter He guides me through and i made a return of R15500 after a week of trading, connect with him

59m ago Rand jumps to strongest level in weeks as Powell soothes policy fears The dollar slid to its weakest since mid-November against major peers on Wednesday, after Federal Reserve Chair Jerome Powell said it may take several months to make a decision on running down the central bank's $9 trillion balance sheet.07 January 19:09 Bitcoin lingers near September lows amid drop of 40% from record Bitcoin traded near the lowest levels since September after an earlier swoon extended its weeks-long decline from an all-time high to about 40%.The department of transport held a massive roadblock on the busiest road in the country on the day most people are back at work.A Caf executive committee meeting in Douala, Cameroon on Friday resolved to increase the prize money for the Covid-19-delayed Nations Cup by a total US$1.

The rand was trading a percent stronger at R15.50/$ in early trading on Tuesday, its best level since November last year.9% to $41 008 before stemming the decline during US trading hours. In testimony at his renomination hearing on Tuesday, Powell said the US economy was ready for higher interest rates and a runoff of its asset holdings - dubbed quantitative tightening (QT) - to combat inflation.za/Nigel Sibanda One of the most dysfunctional areas in South Africa is our transport sector. But he said policymakers were still debating approaches to reducing the Fed's balance sheet, and that it could sometimes take two, three or four meetings for them to make such decisions. Ether, the second-largest, dropped as much as 9% to its lowest level since Sept. Powell's comments were less hawkish than those of some of his colleagues, allaying market fears for a sudden withdrawal of monetary support. “The decision was taken at [Friday’s] executive committee meeting chaired by president Dr Patrice Motsepe in Douala, Cameroon.

Atlanta Fed President Raphael Bostic, for example, said on Monday that high inflation and a strong recovery warrant a rapid rundown of Fed asset holdings. Both of those tokens, as well as others including Binance Coin, Solana, Cardano and XRP are down more than 10% in the past seven days, according to CoinGecko. Our motorists get charged tolls to use highways already paid for by their taxes. "While Powell didn't really push back on market pricing around expected Fed rate hikes, we've certainly seen relief play out across markets" after he"tried to remove a belief that they are stuck on a set path," Chris Weston, head of research at brokerage Pepperstone, wrote in a note to clients." Risk is buoyant," weighing on both the dollar and the safe-haven yen, he said. “Investors are viewing Bitcoin as a play on the economic outlook, and right now that’s pretty murky. - Reuters with Fin24 1h ago MTN SA appoints new Chief Technology and Information Officer MTN SA has appointed Michele Gamberini as its new Chief Technology and Information Officer (CTIO) effective 1 February. The death toll on our roads – through incompetence, recklessness and lawlessness like drunken driving –. Gamberini is joining MTN from Telecom Italia, where he worked for 25 years, recently as its CTIO. “The Fed’s intention to reduce the balance sheet in Q1 2022 is the primary cause of this sell-off,” Fundstrat strategists said in a note Thursday.9m).

"As we work toward our Ambition2025 strategy which is anchored on building the largest and most valuable platform business, I believe that Gamberini’s wealth of experience will have a notable contribution towards enhancing our technology functions as well as providing a network that is second to none to all South Africans," said MTN SA’s CEO Charles Molapisi.  The telecoms giant also announced the appointment of Megan Nicholas as managing director for MTN Supersonic, the company's fibre and broadband internet service provider. ”Risk assets including U. One of the most dysfunctional areas in South Africa is our transport sector. Nicholas is currently the general manager for Residential at MTN SA.   "Residential broadband delivery is a critical strategic focus, as we work to bring our superior network and service into more of our customer’s homes. stocks fluctuated Friday in choppy trading while Treasuries fell as investors assessed hiring data showing a spike in wages paid that could force the Fed to accelerate its timeline for rate hikes. This battle for the home market needs a leader of Megan’s caliber, expertise and experience," says Molapisi 1h ago Capitec founder and CFO to retire  After 22 years with Capitec, its co-founder Andre du Plessis, who is the chief financial officer and financial director of the bank, will retire at the end of June. Our motorists get charged tolls to use highways already paid for by their taxes.175m (R18m), an increase of $175,000 (R2.

  Grant Hardy, head of group financial services, will succeed him. It’s struggled in recent weeks, though, amid a volatile period for financial markets. Hardy is a chartered accountant who completed his articles with Deloitte. He joined Capitec in 2015. “As the crypto market matures, we can see major crypto assets such as Bitcoin and Ethereum increasingly move in tandem with traditional markets including Treasury bonds,” said Ben Caselin, head of research and strategy at crypto exchange AAX. The death toll on our roads – through incompetence, recklessness and lawlessness like drunken driving – is not going down and is still one of the highest in the world, comparatively speaking. 11 January 19:41 Stocks mostly higher as Powell signals tough on inflation US stocks mostly rose Tuesday as US Federal Reserve chief Jerome Powell vowed to be tough on inflation on the eve of the latest US inflation data. The JSE's All Share Index was flat, although Kumba rocketed almost 10% and other mining shares were also stronger. The Bitcoin hash rate, a measure of the network’s computing power, dropped to 176 million terahashes on Thursday from a record of about 208 million on January 1, according to data from Blockchain.

The rand was almost unchanged at R15. Naturally, there was a massive tailback on the highway, resulting in delays for motorists of up to an hour.57/$. Still, there were signs of a potential recovery: Hayden Hughes, chief executive officer of Alpha Impact, a social-trading platform, said his client base was “accumulating heavily” in the Asia morning, though with a strong preference for Ether as opposed to Bitcoin. Europe's major equity markets rebounded from recent falls as investors fished for bargain shares. Asian stocks ended lower. But into the weekend, when liquidity can often be thin and exacerbate price movements, there’s a risk both up and down. Yet, it was an opportunity for one of our politicians – this time Deputy Transport Minister Sindisiwe Chikunga – to preen in front of the cameras in a pathetic attempt to prove she and her department are providing taxpayers with value for money. World oil prices recovered from Monday's drop, jumping more than 3 percent, but the dollar traded mixed.

Bitcoin meanwhile, the world's most popular cryptocurrency, rose above $42,000 just a day after having sunk below $40,000 on fears of reduced liquidity as a result of US monetary policy tightening. He added that Bitcoin endured a two-month period of consolidation in the $30,000 to $40,000 range from May to July last year, and “a repeat of history can’t be ruled out as Fed tightening remains the popular narrative. In remarks at his Senate confirmation hearing for a second term as Fed chairman, Powell indicated that if inflation refused to go down then the central bank would be ready to increase rates as needed. Read more on these topics. With inflation rising and employment recovering,"the economy no longer needs or wants the very highly accommodative policy" that has seen the Fed move rates to ultra-low levels and stimulate the economy with massive purchases of government and corporate bonds.1 points in December to 54. Returning to a normal monetary policy should not harm employment, he added. Investors have been watching anxiously as monetary policymakers react to inflation, which has taken off as the economies recover from the shutdowns and disruptions at the beginning of the pandemic. A score above 50 means that activity remains in expansionary territory.

Higher interest rates are usually a negative for stocks, but investors have at times seemed reassured that policymakers are intent on restraining inflation which, if it got out of hand, could have a devastating effect on the global economy. In late morning trading, the Dow was down less than 0.7 in December, with a large decline of more than 10 points in the export index.1 percent, while the S&P 500 was up 0.2 percent and the tech-heavy Nasdaq Composite showed a gain of 0. The purchasing price index rose to reach the highest level since early in 2016.9 percent.

Several global central banks have already started hiking borrowing costs, including the Bank of England.S. While the fast-spreading Omicron coronavirus variant plays on nerves, traders are now coming to terms with the imminent end to the pandemic era of ultra-cheap cash, which helped the economic recovery and fanned a global rally for nearly two years. A pick-up in consumer activity, surging wages, supply chain problems and rising energy costs are combining to push inflation in several countries to highs not seen for a generation. Treasuries steadied after declining all week. That is ramping up pressure on central bankers to act before it gets out of control. Markets are now awaiting the release of US inflation figures on Wednesday, which could play a major role in the Fed's timing. S&P 500 futures saw modest gains.

"I'm not sure the inflation data tomorrow is going to put investors' minds at ease, with CPI (consumer price index) seen hitting a multi-decade high above 7 percent," said market analyst Craig Erlam at Oanda. "A higher reading could spook investors once again just as equity markets appear to be stabilizing," he added.S. - AFP 11 January 19:08 Vodacom joins MTN, launches legal bid to block Telkom's attempt to halt auction Vodacom has launched legal action against Telkom's bid to block the Independent Communications Authority of South Africa from going ahead with the long-awaited auction of spectrum. MTN has also launched a legal bid against Telkom. Ten-year Treasury yields were steady around 1. The legal action by both mobile giants is likely to bolster the regulator's position to go ahead with the auction.

Vodacom spokesperson, Byron Kennedy, said the company had on Monday afternoon filed a notice to oppose Part A of Telkom's court application for an interdict to stop Icasa from processing any applications. The dollar edged lower, while oil climbed to a seven-week high on supply constraints. "We remain committed to an expedited and fair spectrum auction process.. Gold was little changed... An overtly hawkish stance from the Fed has roiled financial markets at the start of a new year, with investors reassessing how to price assets in an environment of rising interest rates.

we have provided guidance to Icasa in our written submissions to its 2021 Information Memorandum (IM) consultations, and continue to engage stakeholders as we work toward a successful auction," he said. 11 January 15:20  Altron CEO Mteto Nyati to step down in June Mteto Nyati, CEO of technology solutions provider Altron, will be stepping down from his position at the end of June following the end of his five-year term, the company announced on Tuesday. “We knew coming into 2022 that the Fed was going to be a creator of volatility within the market and we’re seeing that right out of the gate at the start of the year,” Lindsey Bell, chief markets and money strategist at Ally, said by phone. Nyati joined Altron in 2017 and the company hailed him for his"successful contribution to the increase of shareholder value by approximately six times during his tenure."Nyati was previously chief enterprise officer at MTN and MD of Microsoft's South African operations.”Comments by regional Fed presidents provided some additional insight Thursday as traders attempted to predict a possible schedule for tightening. Read more 11 January 14:36 While JSE is trading in record ground, only 7 companies in the Top40 are at or near all-time highs.

CFR BHP AGL MTN CPI GLN & CLS. Louis Fed President James Bullard, a more hawkish policymaker, said in a speech the central bank could raise its target interest rate as soon as March. The balance are well off the peaks, many of those reached years ago. The good news, though, is that technically most stocks are in a positive trend. Nicholas Colas, co-founder of DataTrek Research, urged investors to tread “very carefully” the next few days. — David Shapiro (@davidshapiro61) 11 January 13:43 'Value is not at all reflected in the stock.' CEO buys R155m in Prosus shares Prosus CEO Bob van Dijk has purchased about R155 million of the company's shares on the open market, the company has revealed. “We’re not predicting a meltdown, but we get why the market swooned.

According to Van Dijk"buying more Prosus shares reflects my personal conviction that our businesses have had exceptional momentum and that their value is not at all reflected in the stock. "Prosus, a Naspers spinoff, has invested in online classifieds, food delivery, payments and fintech, and education technology sectors in markets such as India, Russia, and Brazil. Friday’s monthly nonfarm payrolls report is forecast to show a gain of 447,000 jobs in December. Prosus has a primary listing on Euronext Amsterdam and a secondary listing on the JSE. Prosus's share price has lost more than a fifth of its value over the past year after the Chinese government cracked down on the country’s education tech sector and threatened further clampdowns. The JSE's All-Share index was down more than a percent, with mining shares worst hit. This triggered a sell-off in digital behemoth Tencent.

Prosus owns a 29% stake in Tencent. London stocks slid in midday deals, while Frankfurt and Paris fell heavily in early afternoon eurozone trade. Last year, Prosus unveiled a complex share swap with Naspers and a further $5 billion share buyback to narrow the valuation gap between itself and its stake in Tencent. Van Dijk earned total remuneration of almost €14.72.2 million (R251 million) in the past year. - SIBONGILE KHUMALO Fin24 is part of Media24, a subsidiary of Naspers. Minutes from the Fed's latest monetary policy meeting showed that officials were confident the world's top economy was in good shape and able to absorb high borrowing costs, despite concerns over the fast-spreading Omicron coronavirus variant.

11 January 10:31 Alphamin declares dividend thanks to record tin output, soaring prices Alphamin Resources, the owner of the world’s highest-grade tin mine, declared a dividend on the back of record production volumes in 2021. The company, which produces 4% of the world’s mined tin from its high-grade operation in the Democratic Republic of Congo, is listed on the Toronto Stock Exchanges’ Venture Exchange, with a secondary listing on the JSE’s AltX."Minutes. On Tuesday, the company declared a full-year dividend of 0.03 Canadian Dollars (37 South African cents) per share..Tin prices have had a phenomenal run, rising from about $15 000 a ton in April 2020 to an all-time high of more than $39 600 a ton currently.

At 3 114 tons, Alphamin's tin production was 10% higher in the fourth quarter of last year than in the previous quarter – and a record for the company."- 'Markets caught off guard' -The prospect of rising interest rates in the world's biggest economy tends to weigh on global share prices because it increases company borrowing costs and curbs consumer incomes. Sales were 13% higher to reach 3 056 tons. Product grade also benefited from improved underground mining practices.Tech firms led losses across most markets Thursday following a painful sell-off in New York. As a result of increased tin production and sales volumes, together with a higher average tin price achieved, Alphamin said its earnings before interest taxes depreciation and amortisation (Ebitda) guidance of $74 million for fourth quarter of 2021 is estimated to be 38% higher than the actual (Ebitda) for the previous quarter of $53.7 million. Traders had previously expected the bank to then start lifting rates.

The group net cash position as at 31 December 2021 increased by $67m compared with the prior quarter. The Mpama North operation in the eastern DRC has by far the world’s highest grade tine resources – about four times higher than most other operating tin mines."The move away from massive central bank support around the world has rattled markets in recent months -- having notched up a series of records or multi-year highs on the cheap cash. Alphamin is now developing Mpama South, where a mineral resource estimation exercise commenced in December 2021. Drilling activities continue with six rigs on-site and the next large batch of test results is expected this month. On Wall Street, the Nasdaq plunged more than three percent Wednesday, and the Dow and S&P 500 lost more than one percent after starting the week with records peaks. - LISA STEYN 11 January 10:21 MC Mining asks IDC for another extension on loan repayment MC Mining has again asked the Industrial Development Corporation for an extension for repayment of its R160 million loan, plus interest, as well an extension of the terminal drawdown date of a further, conditional, R245 million loan.

The company, which is developing a flagship Makhado coking coal mine, is yet to secure all the funding it needs in order to break ground on the project.2% for calendar 2021 (the index’s best annual performance since 2009). The IDC previously agreed to extend both the repayment and terminal drawdown date to 31 January 2022. MC Mining has asked that the deadline be extended to 31 March. If your fund manager didn't own any CFRs. The IDC is yet to respond to its request.  - 11 January 08:39 Miway appoints OUTsurance exec as new CEO Direct insurer MiWay has appointed Burton Naicker as CEO, to replace René Otto, who retired at the end of 2021..

Naicker was previously chief operating officer of OUTsurance. He was with OUTsurance for 18 years. Expensive software makers, biotechs and newly minted stocks have born the brunt of the damage, while Cathie Wood’s ARK Innovation exchange-traded fund, the poster-child of hyper-growth names, has tumbled 9%. He officially assumed his CEO duties with effect from 1 January 2022 and will also serve as a member of the Santam group executive team. Otto was a founding member of Santam-owned Miway, which was launched 14 years ago.3% drop on Thursday after the worst two-day rout since March.   Miway has some 347 000 clients, which paid almost R1.

6 billion in premiums during the six months to end-June last year, according to Santam's latest financial results.75%, the highest in about 10 months. The company offers car, household and business insurance. “René has played a critical role in successfully building a solid foundation for MiWay from inception. Higher rates reduce the present value of future earnings, weighing especially on shares of highly valued, fast-growing companies. He’s been instrumental in instilling a culture of innovation, transparency, and most importantly, putting clients first and steered MiWay into a successful business over the years," Naicker said in a statement. 11 January 08:34 Around 40% of Nasdaq listed stocks are at 52 week lows. Megacaps haven’t been spared either: the NYSE FANG+ Index has fallen 2.

Yet the overall index is only 7% off all time highs. The blue chips are standing strong while the high beta stocks have been crushed. and Microsoft Corp. School fees for the Robinhood heroes of 2021. — Byron Lotter (@Byron_vestact) 11 January 07:03 Asian markets drop as era of free cash draws to a close Asian markets retreated Tuesday as investors grew increasingly concerned about the Federal Reserve's plans to wind back its financial support measures and lift interest rates within months. Hedge funds, which spent December unloading high-growth, high-valuation stocks, began the new year by jettisoning software and chipmakers at a furious pace. While the fast-spreading Omicron coronavirus variant plays on nerves, traders are now coming to terms with the imminent end to the pandemic era of ultra-cheap cash, which helped the economic recovery and fanned a global rally for nearly two years.

A pick-up in consumer activity, surging wages, supply chain snarls and rising energy costs are combining to push inflation in several countries to highs not seen for a generation, ramping up pressure on central bankers to act before it gets out of control.’s prime broker. Several countries have already started hiking borrowing costs but all eyes are on the US Federal Reserve as it tees up its first move, with commentators predicting that to come in March, followed by two or three more by the end of the year. In remarks released ahead of his Senate confirmation hearing on Tuesday, boss Jerome Powell said the bank was ready to act. All share down 1%. "We will use our tools to support the economy and a strong labour market and to prevent higher inflation from becoming entrenched," his opening statement said. "We can begin to see that the post-pandemic economy is likely to be different in some respects. Naspers and prosus also down.

The pursuit of our goals will need to take these differences into account." Data on Friday showed fewer jobs than expected were created in December but there were plenty of openings and wages soared, suggesting further upward pressure on prices is likely.85 . Traders are now cautiously awaiting the release of US inflation figures on Wednesday, which could play a major role in the Fed's thinking. The prospect of higher rates has rattled US markets at the start of the year. The free lunch was a very abnormal combination of a low start valuation post GFC, a recovering economy but most importantly near zero short interest rates and multi decade low long rates with low inflation — Wayne McCurrie (@WayneMcCurrie) 06 January 07:43 Stocks slide as US Fed signals more aggressive interest-rate hikes Stocks in Asia and U. The Nasdaq is already down more than four percent as tech firms are more susceptible owing to their reliance on debt to drive growth.

While the tech-heavy index inched up slightly Monday, the S&P 500 and Dow closed in the red, though late dip-buying helped them recover from early steep losses. and European futures extended a global selloff Thursday as the rout in technology shares accelerated after the Federal Reserve signaled interest-rate hikes may be more aggressive than many had expected. Asia also suffered in early exchanges, with Tokyo returning from a long weekend break to end the morning lower, while Hong Kong, Shanghai, Sydney, Seoul, Wellington and Taipei also slipped. Singapore and Manila were flat, though Jakarta rose. An MSCI Inc."We think eventually this market will shift back toward growth, but we still got some wood to chop there; the valuations haven't corrected," Lori Calvasina of RBC Capital Markets told Bloomberg Television. "This is a repricing. The Nasdaq 100 tumbled the most since March Wednesday as rising Treasury yields added to concerns over growth and profitability.

It's painful, it has a little bit more ways to go." AFP 10 January 16:35 Bitcoin is off to its worst annual start since the dawn of crypto Bitcoin fell for the fifth time in six days, putting it on pace for its worst start to a year since the earliest days of the digital alternative to money.S.  The original cryptocurrency fell as much as 3.7% to $40,766 in New York trading, bringing its loss this year to about 12%. The yield on the U. The decline is the largest for a start of the year since at least 2012.

Ether edged lower, while the Bloomberg Galaxy Crypto Index dropped for a fourth day. 10-year note held at the highest since April. “Cryptocurrencies are likely to remain under pressure as the Fed reduces its liquidity injections,” said Jay Hatfield, chief executive of Infrastructure Capital Advisors. “Bitcoin could end 2022 below $20,000. The dollar was little changed, while the yen climbed. ”Bitcoin was created in the wake of the 2008 global financial crisis by an anonymous individual or group that went by Satoshi Nakamoto. It first began trading in 2009 and pricing information from during the early days is limited. The Hang Seng Tech Index fell for a fourth day.

 Bloomberg Intelligence’s Mike McGlone said $40,000 is an important technical support level for the digital token. Cryptocurrencies are a good barometer for the current reduction in risk appetite. Fed officials said a strengthening economy and higher inflation could lead to earlier and faster rate increases than expected, with some also favoring moves to shrink the balance sheet soon after. But he projects that Bitcoin will eventually come out ahead as the world increasingly goes digital and the coin becomes the benchmark collateral. The Covid-19 pandemic helped Bitcoin break further into the mainstream as institutions and retail investors got involved with the crypto market and its ancillary projects."You had another record double-digit year and yet investors’ mood is pretty dour. Now that the Federal Reserve has turned more hawkish, riskier assets like stocks and digital assets have suffered.

  - BLOOMBERG ." Meanwhile, restrictions are coming back in some places in the face of Omicron.