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OPTIONS

Expiries for Sep29 NY cut 1000ET (Source DTCC)

EGB OPTIONS

Bund Nov Put Condor Seller

EGB OPTIONS

Schatz Call Spread Vs Put

SHORT-STERLING OPTIONS

More SONIA Call Spread Buying

GILTS

Oct 5 Auction Sizes Announced

SOUTH AFRICA

SONA REVIEW

  • As expected, not a whole lot of market impact coming from the SONA with ZAR remaining mostly subdued around the meeting.
  • A few new features, such as the 3-month extension of social grants and TERS until march that should provide support to the tourism and hospitality industries and a brief outline of the vaccine rollout plan.
  • Opposition parties have criticised the meeting as lacking in credible reform progress, given plans have yet to reach Parliament - leading many to see the report as a reiteration of unfulfilled promises.
  • Local Political analyst says Ramaphosa's current position is fragile and permeable, given his inability to push the policies he would like to bring impact to his presidency.

    Key points
  • Vaccines: 9m doses secured of J&J, with arrival slated for next week.
  • Social grants of R350 extended three months, and TERS extension to 15 March. How this will be funded will be the key issue, but with tax collection looking better than expected for the budget, this may not be so difficult.
  • SOEs & energy: Eskom unbundling continues, with plans for a centralised model to be implemented this year to ensure better governance. Licensing changes for small power generators eased.
  • 4) Expansion of broadband spectrum could be slow, given recent legal issues but assured it was at an advanced stage
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com