Week 22
Week 22
IN THE LOOP – WEEK 22
Property Industry:
August bond submissions declined by 10% vs 2020, however continues to be 70% above 2019
Bank conversions ratios was slightly under pressure in August as lending criteria tightens
Average home loans for August up by 5.91% vs 2020 and 9.27% overall for the year
Local and international markets:
- The rand is weaker this week at R14.53/$ after closing stronger (R14.50/$*).
- EM currencies were largely up this week; the COP (+1.2%), CLP (+1.0%) and TRY (+1.0%) were amongst the biggest gainers.
- Asian equity markets the Nikkei, Hang Seng and Shanghai Composite are up.
- China’s manufacturing activity contracted in August for the first time since April 2020.
- The Caixin manufacturing PMI fell to 49.2 pts in August from 50.3 pts in July.
- Caixin noted that Covid outbreaks and containment measures disrupted production.
- The decline was largely on the back of lower production, a deterioration in supplier performance, higher raw material prices and an increase in transportation costs.
- The data further suggests that the impact of the Delta variant outbreak has not just been limited to consumption.
- The data comes a day after the official manufacturing PMI also reflected a weakening in output in August, albeit remaining just above the 50-benchmark line.
- The BER’s manufacturing PMI for August is scheduled for release today and is expected to have increased to 48.0 pts from 43.5 pts in July.
- The August Naamsa vehicle sales is also due out this week and is likely to have increased by 12.6% y/y in August from 1.7% y/y in July.
- OPEC+ will meet to determine whether to continue its plan to increase supply by 400,000 barrels per day (bpd) each month through December 2021.
- Brent crude oil is down this week, and up by 39.2% year-to-date. Brent crude oil is currently at $72.10/bbl; ($72.99/bbl*).
- The gold price is up this week, and down by 4.4% year-to-date. Gold is at $1815/oz ($1814/oz*).
- SA CDS 186bps*, higher than Brazil 174bps* and lower than Turkey 366bps*.
- Yields: US 10yr at 1.30%*, German bund at -0.383%* and SA 10-year generic at 9.19%*, SA’s R186 at 7.29%*.
Covid-19 update:
- Covid-19 global update: cases have surpassed 218.55 million, while the death toll has surpassed 4.53 million; recoveries are at 195.39 million.
- The US has 40.11 million cases, accounting for 18% of global cases; the US death toll is 657,910.
- India has 32.81 million cases and 439,054 deaths; Brazil has 20.77 million cases and 580,525 deaths.
- The European Union has reached its goal of fully vaccinating 70% of its adult population.
- Australia’s Victoria state has set a 70% vaccine target for reopening and is expected to reach that around 23 September.
- Ireland is expected to drop most lockdown restrictions in the coming weeks, with almost 90% of the adult population vaccinated.
- Mauritius is relaxing isolation rules for visitors after it vaccinated more than 60% of its population faster than it had planned.
- Morocco has started administering vaccines to 12-17-year-olds.
- Wealthier nations have been urged by the former chairs of the WHO to share their vaccine supplies with poorer nations with increasing urgency.
- Globally, over 5.31 billion vaccines have been administered across 183 countries at a rate of 40.3 million doses a day.
- Africa’s Covid-19 cases are at 7.85 million; fatalities are at 196,691.
- Morocco has 860,948 reported cases, Nigeria 192,431, Ghana 119,436, Kenya 235,863.
- SA has the 17th highest caseload, at 2.777 million; 7,086 new cases were reported on Tuesday.
- Active cases are at 150,835; KwaZulu Natal leads the way with 64,969 active cases followed by the Western Cape with 25,824.
- Covid-19 deaths rose by 431 on Tuesday, to 82,261; 2.544 million people (or 91.6%) have recovered from the virus.
- 475 million tests have been conducted since 5 March 2020; 49,168 tests were conducted on Tuesday.
- The positivity rate is 14.4%.
- 568 million vaccines have been administered to date; 261,288 vaccines were administered on Tuesday.