SOUTH AFRICA: Wealth Fund in Focus; Gov Inspecting Basel 3 Requirements

* The government appear to be taking steps to formally launch a South African sovereign wealth fund. The launch of the state-run South African National Property Company is set to manage the a property portfolio of ZAR 155bln, covering as many as 88,000 buildings and 5mln hectares of real estate. The minister for public works & infrastructure noted that the fund provides an opportunity for long-term value creation that will "almost become an anchor of a sovereign wealth fund over time", transforming the state assets to a "dividend-paying engine". * Business Day writes that South Africa are looking to review the state of Basel 3 requirements, with the government and the SARB working together to determine if they affect South Africa's ability to draw infrastructure investments. Authorities are looking to establish "strategic policy discussions" with the Basel Committee to explore options. * Accusations of corruption leveled against the government are likely to rise this week after the testimony of fraud examiner Sarah-Jane Trent in front of the Parliament's Ad Hoc Committee, in which she detailed the activities of state actors embedding themselves in criminal justice processes for private gain, raising speculation that the criminal justice system is being directed at the whim of politics. MKP spokesperson Ndhlela stated the connections cannot be ignored and detail a disturbing pattern in government. * Exports of fresh fruit are hitting roadblocks due to the instability in the middle-east. Exporters attempting to divert produce headed to the middle-east may face surcharges of as much as $4,000 as a result of phytosanitary rules.

EMERGING MARKETS: MNI CEEMEA Week Ahead – Hungary and Poland CPI, CBRT Decision

Click here: https://mni.marketnews.com/4bsbzuJ to see this week's key CEEMEA data releases and events, including notable option expiries and bond auctions, along with our latest macro insights. * A rate cut from the CBRT appears highly unlikely, while previous backdoor tightening steps also make a formal rate hike improbable. As such, no change to the 37.00% repo rate is expected at this month's meeting. * In Poland, the upcoming CPI release will provide more than just a reading of February CPI as Statistics Poland will base the print on a re-weighted CPI basked and adjust the January reading accordingly. Setting aside technical effects, at a fundamental level, the medium-term trajectory of domestic inflation remains benign. * Headline CPI is expected to moderate further in Hungary after January data showed a more benign inflation structure, with services inflation particularly subdued in last month's release.

POLAND: Rising Energy Price Already Being Felt; Gov Considering Options

The renewed rally in energy prices stemming from the Iran War is putting early pressure on PLN this week - EURPLN has rallied to touch 4.3051 overnight, well within reach of the cycle high print last week of 4.3102. Fuel prices are clearly a key driver of sentiment domestically, with the energy minister Motyka currently speaking on RMF FM to state the government may act if prices continue to rise and that ministers are in contact with utility providers, alongside which there are "a wide range of possibilities". Of note, the G7 finance ministers group are set to meet later today to discuss a potential joint release of energy reserves at 1230GMT/0830ET. * Defence spending remains a key issue among weekend papers. Rzeczpospolita write that while main defence contracts with the US seem not to be at risk despite the Iran War, there is a risk that ammunition provision for Poland's Patriot missile systems arrives later than scheduled. * Speaking on last week's proposals to use NBP profits to fund defence, Domanski said this weekend that any provision must be done responsibly, and in a manner that does not stimulate inflation, or lead to higher borrowing costs. The finance minister specifically pointed to the rise in Polish yields last week that followed last week's reports. * Feedthrough price rises from the rally in energy prices are already being felt, according to Puls Biznesu, who cite the chemicals industry as warning that fertilizer prices will "inevitably" rise following the outbreak of war in the Persian Gulf. The industry is doing what it can to calm the market. * PM Tusk is set to meeting his Dutch counterpart later today, holding a press conference afterwards at 1255 local time (1355GMT). Finance minister Domanski is also set to be speaking on housing strategy. * CPI data is due later this week, with Y/Y CPI expected to slow to 2.1% from 2.2%. The Ministry of Finance expect core CPI in January to be at the level seen in recent months, or slightly lower.

US: Clocks Adjusted Over Weekend

A reminder that the U.S. rolled their clocks forward by 1 hour over the weekend, adjust your schedules accordingly.