SOUTH AFRICA: April CPI Up Today, Gordhan Warns Of "Significant" Power Outages Through 2023
May-24 06:41
- Statistics SA will publish April CPI data at 09:00BST/10:00SAST and it will be one of the final data signals ahead of tomorrow's SARB monetary policy decision. According to a Bloomberg poll of economists, headline inflation is expected to have slowed to +7.0% Y/Y from +7.1% prior, while core inflation may have accelerated to +5.4% Y/Y from +5.2%. Breakeven rates have slipped this morning but remain in the vicinity of cyclical highs.
- Public Enterprises Minister Pravin Gordhan said that the process of appointing Andre de Ruyter's successor as Eskom CEO will be completed within a month or so. In contrast with recent comments from ANC Secretary General Fikle Mbalula, Gordhan added that South Africa must settle with "significant" load-shedding at least until the end of this year. He also confirmed that it remains Eskom's target to increase the energy availability factor to 70% by March 2024.
- Presidential spokesperson Vincent Magwenya said that President Cyril Ramaphosa has signed a proclamation defining the powers of Electricity Minister Kgosientsho Ramokgopa and his decision will be gazetted soon. The official refused to provide any details before the formal publication of the decision.
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Historical bullets
USD: In the green against G10s
Apr-24 06:32
The Dollar is mostly in the green against G10, besides the CHF, which sits 0.10% up versus the Greenback.
The EUR and the Pound are flat, while the Aussie is the worst performer.
Risk is tilted to the downside, as Asian tech Equities struggled overnight, providing some downside opening gap for Equity futures overnight.
Risk off and also Iron Ore down some 3.5% has weighted on the AUD, but support will be seen further out towards 0.6620, the April low, now trading at 0.6674.
EQUITIES: Notable Earnings
Apr-24 06:20
- US S&P, 45.5% of the index due to report this week.
- Today: Coca Cola (pre mkt), FRC (after market).
BUNDS: A busier week ahead
Apr-24 06:13
- Bund finds an underlying bid on the cash open, helping US Treasuries higher, albeit in low liquidity.
- A much busier week ahead, with more Earnings results, Month End, and more European CPIs going into Friday.
- Resistance in Bund is at 134.41, and support will be at 133.64, opening gap, ahead of Friday's low at 133.54.
- Today sees, {ge} German IFO, and nothing of real note out of the US.
- SUPPLY: Belgium 2028, 2033, 2054.
- SPEAKERS: ECB Vujcic (x2), Panetta (x2), Villeroy.
