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Government Push Back on Public Sector Wage Demands

SOUTH AFRICA
  • Moneyweb writes that the government remain of the view that the public wage increase that unions are demanding is simply unaffordable, making strikes across nursing, police and other public sector workers more likely. The government cited their public sector wage bill is already seen climbing to R702bln by 2025 from R665 billion today.
  • In his appearance in front of lawmakers yesterday, President Ramaphosa backed the finance ministry’s plans for Eskom and stressed Eskom’s presence in national power generation and energy distribution is here to stay.
  • ZAR is outperforming early Friday, higher against most others across emerging markets as well as the USD. ZAR receiving a decent tailwind from the recovery in gold prices off the Thursday low as well as a ripping session for China overnight, with Chinese/Hong Kong stocks looking to close higher by as much as 6%. A break below 18.2091 (yday’s low) for USD/ZAR opens 17.9852 and the 50-dma of 17.8329.

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