He adds that he does view the threat to the rand as "a real risk".
"Despite being sheltered from the subprime crisis, growth in SA is suffering from an inflation-induced tightening of monetary policy," says Mercier.
Reuters reports that the rand weakened one percent against the dollar on Monday, tracking weaker global markets as investors fled risky assets.
Monday, January 7, 2008
Rand poses 'real risk'
(Fin24) - The deterioration in SA's growth/inflation trade-off should stay limited unless the rand weakens sharply, says chief economist for Citigroup in SA, Jean Mercier.
Electronics makers keep eye on U.S. economy
(Reuters) - Electronics makers considering the strain on the U.S. economy are hoping consumers will cut other expenses first, but many see some worrying signs ahead.
Gathered in Las Vegas this week for the Consumer Electronics Show, gadget, cell phone and television makers are placing their bets on whether U.S. economic troubles from rising unemployment to mortgage market problems will stop consumer spending.
"We need to watch just how cold sentiment is getting," Toshihiko Fujimoto, chief executive of Sharp Corp's (6753.T: Quote, Profile, Research) Sharp Electronics, said on Sunday. "We can't say business is especially good."
Sony Corp's (6758.T: Quote, Profile, Research) Sony Electronics President Stan Glasgow, who oversees the U.S. electronics business, told Reuters the company had strong sales in recent months, boosted by demand for its Bravia line of televisions.
Sallie Mae Names Terracciano Chairman; Lord Still CEO
(Bloomberg) -- SLM Corp., the biggest U.S. educational lender, named Anthony P. Terracciano chairman, succeeding Albert L. Lord.
Lord will be vice chairman of the board and remains chief executive officer, Reston, Virginia-based SLM, known as Sallie Mae, said today in a Business Wire statement. John F. Remondi was named vice chairman and chief financial officer.
Lord, 62, served as Sallie Mae's CEO from 1997 to 2005 and resumed the post on Dec. 14, after the collapse of a proposed $25.3 billion takeover by investors including J.C. Flowers & Co.
Sallie Mae has slumped 40 percent in New York Stock Exchange trading since Dec. 13, as Lord has completed a sale of $2.9 billion in shares to pay for stock buybacks and to help improve the company's credit rating.
U.S. Stocks Rise for First Time in 2008; JPMorgan, Celgene Gain
(Bloomberg) -- U.S. stocks advanced for the first time this year on speculation the Federal Reserve will cut interest rates to prevent the world's largest economy from sinking into recession.
Citigroup Inc., Bank of America Corp. and JPMorgan Chase & Co., the biggest U.S. banks, climbed. Celgene Corp., a maker of cancer treatments, rose after saying profit will jump 45 percent in 2008. Microsoft Corp. gained after Chairman Bill Gates said the world's biggest software maker shipped 100 million copies of its Windows Vista operating system.
The Standard & Poor's 500 Index advanced 5.35, or 0.4 percent, to 1,416.98 as of 9:36 a.m. in New York. The Dow Jones Industrial Average increased 45.11, or 0.4 percent, to 12,845.29. The Nasdaq Composite Index rose 5.01, or 0.2 percent, to 2,509.66.
Sunday, January 6, 2008
Ford Plans to Introduce More Fuel-Efficient Engine in 2009
(Bloomberg) -- Ford Motor Co., the second-largest U.S.-based automaker, plans to introduce a new, more fuel- efficient engine as the company tries to halt a sales slide in its home market.
Ford says the EcoBoost engine can improve mileage by as much as 20 percent. The new engine uses turbocharging, which forces air through it. The company says the EcoBoost engine can be smaller and lighter without sacrificing power.
``Customers do want better fuel economy,'' Derrick Kuzak, Ford's product-development chief, told reporters during a Dec. 11 briefing at a company facility in Dearborn, Michigan. ``We need to do it to gain share and volume.''
Ford, which is also based in Dearborn, was passed by Toyota Motor Corp. in 2007 for the No. 2 spot in U.S. sales. Ford had held the position since 1931 and hasn't been third or smaller in U.S. sales since 1905. The company has had 12 consecutive years of declining U.S. market share.
US STOCKS-Market sinks as jobs data stirs recession fears
(Reuters) - U.S. stocks tumbled on Friday, dragging the Dow to its worst three-day start to a year since the Great Depression, as a sharp rise in the unemployment rate heightened fears the economy is heading into a recession.
Technology shares were the worst performer in a broad-based decline after chip maker Intel Corp skidded 8.1 percent on concerns that businesses are unlikely to upgrade computer equipment in the face of a slowdown.
The Nasdaq fell 3.77 percent, bringing the index to its worst three-day kick-off to a new year since it was created in 1971.
The U.S. Labor Department reported job creation nearly ground to a halt in December and unemployment rose to a two-year high of 5 percent.
"The payroll numbers are showing that we don't have the jobs, and if you don't have job income you don't have consumers doing any spending," said Gary Shilling, president of A. Gary Shilling & Co. of Springfield, New Jersey. "I don't think there's much question we're in a recession now."
Friday, January 4, 2008
U.S. Stocks Fall After Job Growth Misses Forecast; Apple Drops
(Bloomberg) -- The U.S. stock market got off to its worst start since 2000 after government reports on jobs and manufacturing added to concern the economy will sink into recession.
Apple Inc., maker of the iPod music player, fell the most since April 2005 and was the biggest drag on the Standard & Poor's 500 Index. Apple declined after Intel Corp., the largest chipmaker, was downgraded by JPMorgan Chase & Co. Alcoa Inc., Home Depot Inc. and Hewlett-Packard Co. led the Dow Jones Industrial Average to its third retreat in four days.
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