The Week Ahead 2 September 2019

print

The Week Ahead 2 September 2019

Published Date: 2019-09-03 | Source: INCE|Community | Author: Roxanne Segers

The Week Ahead 2 September 2019

Uncertainty remains high on the global political front, with little or no clarity on US/China trade talks, Brexit or the ongoing effective insurrection in Hong Kong. Optimism that a US/China trade deal could be close helped fuel a recovery in the S&P 500, which finished 2.8% up for the week at 2 926. The Hong Kong situation is extremely worrying, with the increasing likelihood that the Beijing authorities may well soon initiate a violent crackdown on the widespread protests that have occurred in this international financial centre in recent weeks.

The Brexit saga in the UK experienced the heat being turned up many notches with the "prorogation" or suspension of the UK's parliament, from 9 Sep to 14 Oct. Although UK prime minister Boris Johnson and Leader of the House Jacob Rees-Mogg insist that this is a perfectly normal event, the timing and extent of the prorogation have led many observers to suggest that it is merely a ploy designed to limit debate on Brexit in the British parliament, especially with respect to the potential for passing legislation to prevent a no-deal Brexit. Already a legal objection has been lodged in Scotland's court of session, with judgement expected next week. Anti-Brexit campaigner Gina Miller has also laid a legal challenge in the English courts and former UK prime minister John Major has joined her in the campaign. It is doubtful that either legal challenge will succeed. This just leaves parliament with the almost impossible task of passing legislation to prevent a no-deal Brexit in approximately 5 working days. It has been speculated that prorogation of parliament is Johnson's trump card and that he may have played it too early. The British electorate is unlikely to be impressed with such a blatant attempt to hamstring parliament and the result at an early general election could be devastating for him and his Conservative Party. The next few weeks up until 31 Oct will be highly instructive as to the likely direction of Britain's tenure in the European Union.

South African Q2 GDP figures come out on 3 Sep. All other things being equal, a positive bounce from the negative print of Q1 can reasonably be expected, due entirely to there being a low base of comparison in Q1. However, retail sales figures coming out of JSE-listed retailers suggest a widespread slump in consumer spending in Q2, so investors should be aware of the possibility of a nasty surprise to the downside. The JSE All Share Index closed 2.3% up for the week at 55 260.

JSE listed company results out this week;

  • 2 September 2019
    • Bidvest, RCL, Tongaat
    • 3 September 2019
      • DRD Gold, Sun International
      • 4 September 2019
        • Discovery, Libstar, MMI
        • 5 September 2019
          • Assore, EPP, FirstRand, Implats, Sanlam
          • Economic data releases this week;

            • 2 September 2019
              • NAAMSA New Vehicle Sales, Absa Manufacturing PMI Aug
              • 3 September 2019


Similar Stories