Markets Overnight:
The risk trade was off over night as the ECB finance ministers stepped back from their planned “emergency” get together this Wednesday that was supposed to be the decision of whether Greece would get the €130billion bailout.
The reason for the delay? Though Greece passed their austerity bill Monday morning, the ECB still have requirements the Greece need to agree to, which is what they are fighting about, hence the lack of inaction on the equity markets. Again, we will have to agree – as if we have a choice – to the slow slumbering pace of indecision, on a positive note, let’s be happy the Greeks were able to decide on something! It’s not as if Greece could fall into a full-scale default with an impending 14.5billion payment due next month… oh wait, yes that is true, they just could!
On a positive note, the German finance minister is optimistic the Euro Zone is in a better position than two years ago to shoulder a Greek default, while China has mentioned their intention to help the bleeding Euro region.
Company News:
Murray and Roberts [MUR] has signed a contract for a R1.6billion Portside co-development in the central Cape Town business district, a good sign for a construction company that has seen the brunt of the economic environment.
Telkom [TKG] fell yesterday following an R3.5billion fine for excessive pricing going back as far as 2004.
Santam [SNT] released a trading statement yesterday reporting an expected drop in earnings for the year to December 2011 of between 15% and 25%.
Today:
Keep an eye out for Anglogold’s [ANG] fourth quarter results, alongside Distell’s first half results. Other local data is the Retail Sales expected to come in lower for the December month.
Abroad you should look for the Euro and German GDP numbers for growth prospects, while noting the Euro Trade Balance following the large decrease in the Chinese trade conditions earlier in the month.
The US MBA mortgage applications, Empire Manufacturing and Industrial Production are key points, with the FOMC minutes being released 21h00 our time.
