South Africa Leaves Interest Rates at 8.25%, Rand Falls Rallies with Delayed Rate Cuts

The South African Reserve Bank (SARB) kept its benchmark repo interest rate at 8.25% at its January 25th, 2024, meting as widely anticipated. Rates remain at their highest since 2009. The bank highlighted the persistence of inflation risks while emphasizing a balanced evaluation of risks to medium-term growth. The SARB noted that the return of inflation to the target has been slow, despite the expected gradual moderation. Headline inflation fell for a second month to 5.1% in December from 5.5% … Continue reading “South Africa Leaves Interest Rates at 8.25%, Rand Falls Rallies with Delayed Rate Cuts”

Caterpillar Shares Soar to Record High as Earnings Crush Expectations

Irving, Texas-based Caterpillar, a Dow component and gauge for global economic health reported second quarter numbers that topped Wall Street expectations with a 75% rise in quarterly profit to $2.92 billion, or $5.67 a share, from $1.67 billion on Wednesday before the market open. Adjusted earnings of $5.55 a share beat the consensus estimate of $4.58 a share. Sales rose 22% to $17.32 billion, well over the consensus estimate $16.53 billion, for the quarter. Caterpillar saw a wide margin leap … Continue reading “Caterpillar Shares Soar to Record High as Earnings Crush Expectations”

BHP Record Full Year Iron Ore Output, Copper Production Up 9%

Australian mining giant BHP, said on Thursday quarterly iron output at 72.7 mln metric tons. This put annual iron ore output for FY23 at 285.3 mln metric tons, a record. Quarterly iron ore output rose, aided by a continued ramp-up at its South Flank project. South Flank is on track to hit full capacity by end 2024. BHP said unit costs at its Western Australia iron ore operations and Chilean copper mine Escondida are expected to be towards the upper … Continue reading “BHP Record Full Year Iron Ore Output, Copper Production Up 9%”

South Africa Leaves Interest Rates at 8.25% in Split Vote, Rand Falls

The South African Reserve Bank (SARB) kept its benchmark repo interest rate at 8.25% at its July 2023 meeting as markets had expected. The decision was split three members of the bank’s monetary policy committee voted for the pause, two advocated for a further increase of 0.25 percentage points. “Have interest rates peaked? The answer is a resounding no,” said Kganyago at a press conference. “Is this the end of the hiking cycle? No, it is not. It depends on … Continue reading “South Africa Leaves Interest Rates at 8.25% in Split Vote, Rand Falls”

South Africa Raises Interest Rates 50bps, Rand Falls to All Time Low

The South African Reserve Bank (SARB) increased its benchmark repo interest rate by another 50 bps to 7.25% at its May 2023 meeting. Markets had expected a smaller 25 bps increase. Policymakers cited concerns regarding the significant depreciation of the rand and the mounting pressures of inflation as key drivers behind the rate adjustment. The SARB also revised its inflation forecasts, with inflation for 2023 now projected to average 6.2%, up from the previous estimate of 6.0%. The move triggered … Continue reading “South Africa Raises Interest Rates 50bps, Rand Falls to All Time Low”

Caterpillar Record Profit Boosted by U.S. infrastructure Spending But Flat Order Backlog Overhangs

Irving, Texas-based Caterpillar, a Dow component and gauge for global economic health reported first quarter numbers that topped Wall Street expectations with a 31% rise in first quarter profit on Thursday before the market open. $CAT reported a record $4.91adjusted earnings per share, beating Refinitiv analysts’ consensus of $3.78 per share. The company saw strong demand for its construction and mining equipment and engines for transportation and energy generation despite higher prices.  The US administration’s infrastructure legislation encouraged spending in … Continue reading “Caterpillar Record Profit Boosted by U.S. infrastructure Spending But Flat Order Backlog Overhangs”

South Africa Raises Interest Rates 50bps, Revises Inflation Higher

The South African Reserve Bank (SARB) increased its benchmark repo interest rate by another 50 bps to 7.75% at its March 2023 meeting. Markets had expected a smaller 25 bps increase. The move triggered a surge in the rand , which extended earlier gains to rise nearly 2% against the dollar. It was the 9th consecutive rate hike since policy normalization started in November 2021, bringing borrowing costs to the highest since May 2009. Policymakers revised significantly upward headline inflation … Continue reading “South Africa Raises Interest Rates 50bps, Revises Inflation Higher”

Demand for Caterpillar Construction and Energy Equipment Boost Sales 20%

Irving, Texas-based Caterpillar, a Dow component and gauge for global economic health reported mixed fourth-quarter numbers on Tuesday before the market open. $CAT missed on earnings but beat on revenue. The company saw strong demand for its construction and mining equipment and engines for transportation and energy generation despite higher prices. Sales came to $16.60 billion for the quarter, topping Wall Street expectations. CAT was trading $249.62 -11.88 (p 4.54%) Pre-Market  Foreign-exchange headwinds however weighed on profit and its operating … Continue reading “Demand for Caterpillar Construction and Energy Equipment Boost Sales 20%”

South Africa Raises Interest Rates 75bps to Tame Inflation

The South African Reserve Bank (SARB) increased its benchmark repo interest rate by another 75 bps to 7% at its November 2022 meeting, as widely expected. Prime is now at 10.5%. This was the 7th consecutive rate hike as the SARB tries to tame inflation expectations more firmly around the mid-point of the target band and achieve the inflation target in 2024. South Africa’s inflation rate unexpectedly rose to 7.6% in October from 7.5% in September. The decision was not … Continue reading “South Africa Raises Interest Rates 75bps to Tame Inflation”

Steel Rebar Futures Lowest in Two Years Impacted by China’s Dynamic Zero-COVID Policy

Steel rebar futures fell to the lowest in two-years Monday at CNY 3,650 per tonne. Deepening recession fears and heavy losses in Chinese bonds and stocks following the reelection of President Xi. Steel rebar and Iron ore futures have been a clear leader from the early days of the raw materials rally. They are also the most volatile. Volatility is fed multiple things, the property sector, energy prices, interest rates, COVID policy and the ongoing trade war between the world’s biggest … Continue reading “Steel Rebar Futures Lowest in Two Years Impacted by China’s Dynamic Zero-COVID Policy”