SA in last chance saloon - Moody's; debt soars; world funds Congo revival; Zim protests; US equities soar
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- South Africa is fighting to preserve its last remaining investment-grade credit rating and avert a forced selloff of billions of rand of its debt after Moody’s Investors Services gave it just over three months to get its finances in order, says Bloomberg.
When Nelson Mandela came to power in 1994, he faced the challenge of uniting a nation divided by apartheid and healing an economy shattered by sanctions and mismanagement. A quarter of a century later, his one-time protege Cyril Ramaphosa faces perhaps even bigger obstacles, including a dismally low economic growth rate of 2%, says Bloomberg.
“Zuma and his allies erased about 20 years of progress,” Claude Baissac, the head of Eunomix Business and Economics, which advises on political risk, is reported as saying.
The World Bank could provide as much as $5bn to Democratic Republic of Congo over the next five years if its new government commits to raising more revenue, fighting corruption and opening up its economy.
Zimbabwe police have given public sector workers permission to march for better pay on Wednesday in what is widely seen as a test of President Emmerson Mnangagwa’s willingness to tolerate dissent, reports Reuters.
US stocks climbed to records while Treasuries tumbled as trade optimism fuelled demand for risk assets, says Reuters. The Dow Jones Industrial Average jumped 140 points at the open on Monday to claim its first all-time high since July.