Today's Big Stories

Rand hits all-time low and world markets fall on fears over Chinese economy

Monday's dramatic stock trading has set off alarm bells across the world and global investors are realising the major role that the Chinese economy has on market growth and low global inflation.

The fall-out on global stock markets and South Africa's current account deficit has been cited as driving factors behind a further plummet in the rand.

The local currency was hovering around the 20,85 mark against the British pound on Monday after reaching a record low earlier this month.

The rand now sits at R13,27 to the US dollar and R15,22 to the euro.

Chris Hart, Economist and Chief Strategist at Investment Solutions explains the impact of the market fall.

I'm in Switzerland at the moment. International travel really emphasises how weak our exchange rate is.

Chris Hart, Economist and Chief Strategist at Investment Solutions

The trade in the rand is still significantly weak. Investors do not like risk and they sell off emerging markets.

Chris Hart, Economist and Chief Strategist at Investment Solutions

Shares in South Africa and other stock markets were off-loaded.

Chris Hart, Economist and Chief Strategist at Investment Solutions

China's debt levels have exploded. The debt levels have now exploded, creating unsustainable asset prices.

Chris Hart, Economist and Chief Strategist at Investment Solutions

Central banks will likely hike interest rates in response to this crisis, but the trouble is that inflation has been creeping up because of the weak rand.

Chris Hart, Economist and Chief Strategist at Investment Solutions

Listen to the full conversation from CapeTalk's Breakfast with Kieno Kammies:


This article first appeared on 702 : Rand hits all-time low and world markets fall on fears over Chinese economy


Recommended

by NEWSROOM AI
Read More
Veterans and ANC not on same page about terms of consultative conference

Veterans and ANC not on same page about terms of consultative conference

ANC vets want civil society groups present at the consultative conference, which they want held separately from another meeting.

Top SABC journos applauded for brave testimony

Top SABC journos applauded for brave testimony

EWN's Gaye Davis summarises the evidence of the SABC journalists who appeared before the ad hoc committee in Parliament.

If you're gona be a hero (and smash a car window), make sure you can prove harm

If you're gona be a hero (and smash a car window), make sure you can prove harm

A criminal lawyer explains what leg citizens can stand on if they witness a child or pet locked in a vehicle in risky conditions.

SABC 'in contempt of court' if Motsoeneng reports for duty, says DA

SABC 'in contempt of court' if Motsoeneng reports for duty, says DA

The DA's James Selfe says it is not clear whether SABC's Hlaudi Motsoeneng will be either fired or suspended pending an inquiry.

Tweeps throw shade as court shows Motsoeneng the door

Tweeps throw shade as court shows Motsoeneng the door

A judge has ruled that Hlaudi Motsoeneng should not hold any position at the SABC and Twitter has wasted no time reacting.

How to protect your wealth when market news is bad

How to protect your wealth when market news is bad

There is so much bad news right now. Financial Advisor Warren Ingram on how it should affect your financial decisions…

Popular articles
Parents urged to help transgender kids flourish

Parents urged to help transgender kids flourish

Psychiatrist Dr Simon Pickstone-Taylor says roughly 50% of transgender teens who aren't supported, will attempt suicide in SA.

Not compulsory for WC parents to buy toilet paper on 2019 school stationery list

Not compulsory for WC parents to buy toilet paper on 2019 school stationery list

WCED spokesperson Bronagh Hammond says public schools receive funding towards maintaining 'the national norms and standards'.

'In a school over 50% black, teachers were still majority white'

'In a school over 50% black, teachers were still majority white'

Pundits on the Eusebius McKaiser Show discuss private schools and their reluctance to hire black teachers.

Jawitz Properties sues property owner R320 000 for breach of contract

Jawitz Properties sues property owner R320 000 for breach of contract

Property owner Lynne Zurnamer says she waited for almost 12 months for Jawitz to sell her property and decided to cut ties.

Controversy over who should lead UWC

Controversy over who should lead UWC

Law professor, Dr Danny Titus, explains why the extension of Professor Tyrone Pretorius's contract has enraged certain people.

Sassa beneficiaries to receive an early Christmas

Sassa beneficiaries to receive an early Christmas

Sassa beneficiaries will receive their grant money on 28th of November and they are advised to use it wisely this festive season.

How to protect your wealth in these trying economic times...

How to protect your wealth in these trying economic times...

Personal Financial Advisor Warren Ingram discusses a number of strategies for protecting your wealth in these trying times.

Water-waster receives police warning #WaterWatch

Water-waster receives police warning #WaterWatch

A Bloubergstrand guest house owner got a police warning after hosing down his walls and windows despite Level 3b restrictions

3 emergency numbers you should have on speed dial and how they work

3 emergency numbers you should have on speed dial and how they work

These are the emergency numbers you should have on your cellphone and this is what you must understand about how they work.