SOUTH AFRICA: EFF Deputy Pres. Leaves To Join Zuma's MK
Floyd Shimbavu, who has served as deputy president of the far-left Economic Freedom Fighters (EFF) since its foundation in 2013, has left the party to join the UMkhonto weSizwe (MK Party) of former President Jacob Zuma. The defection comes as a major blow to the EFF and its leader Julius Malema. Shimbavu and Malema co-founded the EFF, making his departure a significant upset.
- So far no reason has been forthcoming about the defection, although speculation of Shimbavu being offered a deputy leadership role within the larger MK could have clinched the move. Both sides have sought to remain cordial, with Malema saying that Shimbavu is "not just a comrade but a brother and he will remain a brother, even when he pursues his political career differently."
- EFF National Assembly member Mzwanele Manyi joined Shimbavu in defecting to the MK Party.
- South Africa's Daily Maverick reports "The exodus from EFF comes just months after the EFF was dislodged as the third-largest party in the country. The MK party overtook the EFF and is also the official opposition in the National Assembly [...] Party insiders have long highlighted the friction between Malema and Shivambu."
- There will be a notable focus on the impact of the EFF. Malema said he is expecting further defections by those loyal to Shimbavu, but that it will not lead to the party's collapse. It remains to be seen whether South Africa can sustain two far-left anti gov't parties with platforms as similar as those of MK and EFF.
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US DATA: Another Single Regional Decline Weighs On NAHB Housing Index
- NAHB housing market index was close to expectations in July, falling just 1pt to 42 (cons 43) for technically its lowest since December.
- Declines in present sales (from 48 to 47) and prospective buyer traffic (from 28 to 27) were partly offset by a small uplift in future sales (from 47 to 48) after a particularly weak run.
- Present sales and prospective buyer traffic are both also at their weakest since Dec.
- The regional breakdown shows another large decline in a different area. Northeast housing sentiment fell a heavy 15pts to 47. It follows the midwest seeing a 10pt decline in May and the west seeing an 11pt decline in April, neither of which have seen any recovery.
- Once again, there is a sizeable discrepancy between relative S&P 500 homebuilder price to book ratios and the housing market, with the latter far less optimistic.
CORN TECHS: (Z4) Bear Trend Remains Intact
- RES 4: $519.75 - High Nov 15 ‘23
- RES 3: $510.25 - High Dec 26 ‘23
- RES 2: $478.00/496.75 - High Jun 14 / High May 15 and bull trigger
- RES 1: $428.25 - 20-day EMA
- PRICE: $406.34 @ 14:52 BST Jul 16
- SUP 1: $403.00 - Low Jul 12
- SUP 2: $400.00 - Psychological round number
- SUP 3: $387.00 - 2.618 proj of the May 28 - Jun 6 - 14 price swing
- SUP 4: $373.75 - 3.00 proj of the May 28 - Jun 6 - 14 price swing
Corn futures remain in a clear downtrend and last week’s move lower reinforces the current bearish theme. The contract traded to a fresh cycle low, confirming a resumption of the primary downtrend. Sights are on the $400.00 psychological handle next. Initial key resistance is at $428.25, the 20-day EMA. Short-term gains would be considered corrective. A recovery would allow an oversold condition to unwind.
MNI: US MAY BUSINESS INVENTORIES +0.5%; SALES +0.0%
- MNI: US MAY BUSINESS INVENTORIES +0.5%; SALES +0.0%
- US MAY RETAIL INVENTORIES +0.6%
