TAX FREEDOM DAY (TFD) – when is TFD 2018? Why TFD matters
Every earner is taxed. Through one kind of tax or another, government takes a bit out of everyone’s earnings. This means everyone is forced to spend some months working for government. Tax Freedom Day is the day on which average South African income-earners at last start working for themselves, the day on which they have finally paid their tax bill in full.
President Trumps decision to impose Tariffs on US imports of steel and aluminium came as a surprise to the markets, raising the fear of a trade war.
Under Trump’s plans the US will place an additional 25% global tariff on imported steel and a further 10% tariff on aluminium. Trump’s decision to apply a global tariff – as opposed to a targeted one – means the tariff will impact all exporters of aluminium and steel to the US equally. The White House has confirmed that it would grant a 30 day exemption to Canada and Mexico, which we interpret as an effort to gain leverage ahead of the forthcoming NAFTA talks.
I cannot recall a State of the Nation address that grasped my attention so much as President Ramaphosa’s maiden SONA address on 16 February 2018. Without underestimating the challenges lying ahead of us in any way, I felt exhilarated, eager to get to work and to play my part to make South Africa a better place for all who live in it.
The political landscape in South Africa is changing by the day. As I write this, the State of the Nation Address has been postponed for the first time in our young democracy, the ANC National Executive Council has set up, and then subsequently cancelled an emergency meeting, rumours abound that Zuma is on the verge of resigning and uncertainty is the order of the day. The stock market, South African bonds and the currency have been volatile and everyone appears to be waiting for what is coming next.
By Peter Leger "WE ARE GOING to die, and that makes us the lucky ones. Most people are never going to die because they are never going to be born. The potential people who could have been here in my place but who will in fact never see the light of day outnumber the sandgrains of Arabia."
STEINHOFF, THE GLOBAL discount retailer with more than 11000 stores in over 30 countries, suffered a spectacular share price collapse during December 2017. The company was one of the largest listed on the JSE. Our equity and multi-asset class funds were invested in Steinhoff equity to varying degrees, depending on the mandate of the fund.
Yesterday’s surprise news around financial accounting irregularities within Steinhoff has resulted in a 60% drop in the share price on the day, which makes the fall 82% off its highs in 2016. It is not yet clear what the real ramifications of this event will mean for the share, however with it being widely held across local managers we have assessed the impact across client portfolios given what has happened so far. Naspers has also come off around 15% from its highs over the past few days so this is also likely to have an impact on shorter term returns given the magnitude of its holding across funds, bearing in mind Naspers is still up 64% year to date.
Dr Frans Cronje, CEO of the Centre for Risk Analysis, revealed South Africa’s most likely roads to 2030* in his new book. What does the future look like?
Article by: Lynn Bolin, Head of Communications, Prudential Investment Managers
At Prudential’s recent showcase event “Face to Face”, guest speaker Frans Cronje examined the latest major trends that are likely to shape the future path of South Africa to 2030. As an expert scenario planner and CEO of the Centre for Risk Analysis (CRA) at the Institute for Race Relations (IRR), Cronje provided a timely update to his 2014 study, “A Time Traveller’s Guide to our Next Ten Years”. Drawing from a wealth of statistics from the IRR, Cronje pointed to three main factors currently influencing the country’s future path: 1) deteriorating economic conditions; 2) rising disenchantment with the ANC government; and 3) the split within the ANC into opposing factions.