Mission impossible. That is certainly the way most commentators would describe the daunting task of solving South Africa’s fiscal puzzle. Encouragingly, the National Treasury has become more explicit in its acknowledgement that we are on an unsustainable fiscal path and that time is of the essence.
We are of the view that South Africa is cyclically well-positioned for global recovery with a cheap currency, attractively priced bonds, undervalued equity market and the possibility for continued USD weakness.
Global tech companies shone brightly in the third quarter of 2020, with Apple becoming the first US company to surge past a market capitalisation of $2 trillion. Most businesses dimmed investor expectations, though, with plummeting profit levels and reduced or no dividend declarations. Sasol, for example, announced an impairment bigger than its market cap. What else happened during the quarter?