Legal battle ahead for National Treasury, and US markets bet on September rate hold

The rand ended Friday, 14 August, trading at R16.17 to the United States dollar, little changed from its previous close of R16.19 the day before.

This was mostly due to softer-than-expected United States inflation, which reduced expectations for the Federal Reserve to hike rates in September.

The Johannesburg Stock Exchange closed the day slightly in the red but mostly unchanged, with the All Share Index down 0.05% and the Top 40 down 0.02%.

South Africa’s benchmark 2035 government bond also weakened slightly, with the yield rising by 2 basis points up to 8.435%.

In commodity markets, the price of Brent crude oil was up at $88.59 per barrel, while the price of gold also rose to $4,375 per ounce.

Investors remain cautious on the risk of a prolonged Middle East conflict, which could disrupt global oil supply and hurt global growth.

Risk sentiment remained high after the United States announced on Thursday that it could place more economic pressure on Iran by extending its naval blockade indefinitely.

On Friday morning, the rand was trading at R16.20 to the US dollar, R18.75 against the euro, and R21.93 against the British pound.

Important finance and investing news

US markets bet on September rate hold: United States markets are expecting the Federal Reserve to hold rates at current levels in September. However, some have argued that the Fed may act a bit more hawkishly during what is seen to be one of the most decisive moments for the US economy in recent memory. [Yahoo Finance]

Legal battle ahead for National Treasury: The South African Revenue Service (SARS) and the National Treasury have asked the Constitutional Court to set aside a high court ruling which curtails the Finance Minister’s power to adjust the Value Added Tax rate without parliamentary approval. [BusinessDay]

Anthropic IPO depends on revenue forecast: Artificial intelligence research company Anthropic is preparing for what could be one of the largest initial public offerings on record, with the potential valuation from Wall Street being. based on the company’s projected $200 billion revenue forecast for 2028. [Reuters]

Joshua Kushner scores $12.5 billion Lakers deal: Thrive Capital, the venture firm founded by Joshua Kushner, is expanding beyond technology investments into the field of sports. Alongside Bob Iger, the firm has signed a deal to purchase the Los Angeles Lakers basketball team for a record $12.5 billion. [Wall Street Journal]

Shell dealt R1 billion exploration blow: The Constitutional Court has halted offshore gas and oil exploration by Shell and Impact Africa Limited along the Eastern Cape’s Wild Coast. The matter has been in the courts since 2021, with Shell having already soent more than R1 billion on the project. [BusinessDay]