Rand Gets a Boost

In the early hours of trading on Monday, the rand was quoted stronger as the country clung to its last investment grade credit rating.

On Friday, it was announced that the Moody’s Investors Service would not downgrade the country’s credit score to junk, however, it did reduce the outlook to negative. This came after the release last week that the forecast for the country is rapidly deteriorating.

Moody held the readings for the nations foreign and local currency at Baa3, which is one step above speculative grade. S&P Global Ratings and Fitch Ratings already hold the nation below investment grade as they shifted the status to junk in 2017. 

According to the Bank of New York Mellon Corp, if Moody’s cuts the rating of South Africa then the country would lose its place in the FTSE World Government Bond Index. This could then mean that an investor sell off would spark up and outflows of almost R225 billion. This would come at a time where the country needs portfolio investment to finance its persistent current account deficit. On top of this, a downgrade would mean a rise in borrowing costs, which will then complicate the governments efforts to balance the budget. 

Bank of America believes that the Baa3 rating will be cut after a budget statement in February. 

Moody’s outlook reflects the material risk that government will not be able to stop the decline of its finances through an economic growth revival and fiscal consolidation measures according to the credit assessor. 

At the moment R138 billion is being spent by the country to bail out Eskom Holdings, which is seen as the biggest risk to the economy. 

South Africa has been afforded a small window with the rating affirmation to show faster and concrete implementation of reforms. The reforms will need to implemented without delay said South Africa’s National Treasury. 

Article Source: https://www.fin24.com/Markets/rand-perks-up-after-moodys-reprieve-20191104

Black Friday Is Coming, But Pick N Pay is Launching Deals Early

Black Friday is becoming increasingly popular in South Africa and it is a day where retailers offer huge savings on various goods from tech to food and more. This year, Black Friday will fall on November 29th, but some retailers like Pick N Pay are kicking things off early. 

Pick n Pay has launched exclusive teaser deals for Gauteng and Western Cape online customers in the lead up to Black Friday. 

These ‘Black November’ deals will go live on the Pick N Pays website every Monday at 7am and will be valid for seven days or whilst stocks last. 

Pick n Pay said that the deals will offer up to 50% off across various categories like appliances, groceries, wine, liquor, electronics, baby essentials and household items. 

John Bradshaw, retail executive for marketing at Pick N Pay said that a number of their customers signed up for the Black Friday emailer before hand, so that they would get notified immediately. Minutes before the deals went live, customers logged into the site. He also said that customers enjoyed being able to shop for different items throughout the month and not just on one day. 

Pick N Pay has also implemented extra measures this year to serve as many customers as possible and quickly. They have also stepped up their online delivery capacity to avoid delays. 

Also, from Saturday, the Black November Saver Delivery slots will be available. This is a discounted delivery rate and orders are delivered during the day on the date selected by the customer.

The Pick N Pay Black November online deals run each week from the 4thto 25thNovember 2019 and are exclusive to online customers in Gauteng and Western Cape in areas that are covered by the Pick N Pay’s online delivery network.