Quite an interesting week, from currency movements and American corporate earnings season to South African mid-term budgets. Apple, Twitter, Proctor & Gamble as well as Under Armour reporting decent earnings, with forward looking downward revision on earnings to be expected. The rand pulled back to levels as low as R16.68 against the British pound, R14.94 against the euro and R13.69 against the US dollar. South Africa’s mid-term ‘mini’ budget speech saw SA growth expectations being cut from 0.8% to 0.5% for the fiscal year, net GDP to debt ratio increasing to 47.9% from 46.2%, and the implementation of R28 billion additional taxes on SA citizens in 2017 (though increases in sugar tax, business taxes and income taxes). The rand jumped to R13.92.
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Fees must fall, but who will pay? | Cannon Asset Managers research