Constitutional Court to Rule on R29bn  Wage Deal from 2018, Fuel Prices Surge

LOCAL NEWS

• Constitutional court set to rule on 2018 wage deal today with judgement handed down electronically and emailed to legal reps. If the apex court finds in favour of public sector unions, compensation costs could significantly increase (~R29bn).
  • The government’s debt redemptions over the next five years will average about R150 billion per year. Additional debt financing could increase refinancing risk and result in higher associated costs – BusinessTech
• Ramaphosa says 46% of South Africans are now on grants of some form, adding that it is important to restore public finances to a healthy state so they can perform effectively. Warns interest on debt is higher than SA’s growth rate and must continue to be trimmed going forward – BusinessTech
• Automobile Agency expects shar fuel price rises in the coming months owing to the Ukraine crisis and may have longer-term effects on inflation. Petrol prices will rise R1.40/L tomorrow and could hit R25/L. Diesel will increase between R1.44-1.48/L – SABC

Data:

• 1200GMT: Jan Trade Balance exp at R17.3bn vs 30.1bn prior
• 1200GMT: Jan Monthly budget balance exp at -62bn vs 41.9bn