Today's Big Stories

What SA could learn from Brazil's downgrade to junk status

Minister of Finance, Pravin Gordhan is reportedly going abroad to strengthen investor ties. In light of talks of South Africa fighting to avoid a downgrade to junk status, Xolani Gwala explores the effects of a downgrade on Brazil and what possible lessons can be learnt from this.

Xolani Gwala spoke to Brazilian businessman, Mario Braga; as well as Director at the Centre for dynamic markets at GIBS, Dr Lyle White.

Effects of the downgrade to junk status in Brazil:

A sharp rise in cost of capital – private funding and risk investment. Banking costs have gone up sharply over the past 12-18 months.

Mario Braga, Brazilian businessman

Reduction on foreign investment in Brazil. Mainly institutions that are traded in the international finance markets. They are withdrawing their investment plans in Brazil.

Mario Braga, Brazilian businessman

In the past, unemployment rate was bordering on 4%, now the overall unemployment rate is about 7.5% and going up. 18 – 24 years group getting above 14-15% unemployment which is painful for Brazil.

Mario Braga, Brazilian businessman

Brazil as a comparison is one we should look at closely in SA. Remember that these ratings agencies do issue a warning and these things will be absorbed by the market.

Dr Lyle White, Director at the Centre for dynamic markets at GIBS

Listen to the conversation below:


Recommended

by NEWSROOM AI
Read More
Veterans and ANC not on same page about terms of consultative conference

Veterans and ANC not on same page about terms of consultative conference

ANC vets want civil society groups present at the consultative conference, which they want held separately from another meeting.

Top SABC journos applauded for brave testimony

Top SABC journos applauded for brave testimony

EWN's Gaye Davis summarises the evidence of the SABC journalists who appeared before the ad hoc committee in Parliament.

If you're gona be a hero (and smash a car window), make sure you can prove harm

If you're gona be a hero (and smash a car window), make sure you can prove harm

A criminal lawyer explains what leg citizens can stand on if they witness a child or pet locked in a vehicle in risky conditions.

SABC 'in contempt of court' if Motsoeneng reports for duty, says DA

SABC 'in contempt of court' if Motsoeneng reports for duty, says DA

The DA's James Selfe says it is not clear whether SABC's Hlaudi Motsoeneng will be either fired or suspended pending an inquiry.

What downgrade of SA economy means for fiscal policy

What downgrade of SA economy means for fiscal policy

Ratings agencies have downgraded South Africa's economy on the back of several changes in the finance cluster, which saw markets react negatively.

5 things Tito Mboweni says SA must get right to avoid junk status credit rating

5 things Tito Mboweni says SA must get right to avoid junk status credit rating

Former Reserve Bank governor, Tito Mboweni, says South Africa must implement a defence strategy to avoid a downgrade to junk status.

Popular articles
How to pay up to 45% less tax (and save the SA economy while you’re at it)

How to pay up to 45% less tax (and save the SA economy while you’re at it)

The Money Show’s Bruce Whitfield interviews Darryn Faulds, a fund manager at Grovest Group.

Calls for more women to come forward and testify at Timothy Omotoso's trial

Calls for more women to come forward and testify at Timothy Omotoso's trial

Thanduxolo Jindela explains why he is running a campaign to encourage more of Omotoso’s victims to come out and testify.

10-year-old maths whiz Sbahle Zwane gets a scholarship from Curro school

10-year-old maths whiz Sbahle Zwane gets a scholarship from Curro school

Azania Mosaka catches up with Sbahle Zwane's mother to hear about developments with his schooling.

Is the ANCYL still relevant and who is likely to take over the leadership reins?

Is the ANCYL still relevant and who is likely to take over the leadership reins?

Former ANCYL spokesperson and eNCA political reporter Samkele Maseko discuss who is up for the new ANCYL leadership.

'It's unacceptable that government officials pay R75 for luxury apartments'

'It's unacceptable that government officials pay R75 for luxury apartments'

IFP national spokesperson Mkhuleko Hlengwa says the party is calling for a review of these rates that are a cost to taxpayers.

[WATCH] Sars boss confusing, evasive testimony at Nugent Commission

[WATCH] Sars boss confusing, evasive testimony at Nugent Commission

Khabazela shares some of the most popular tweets, posts, and videos on 'What's gone viral'.

Getting drunk improves creative problem solving - Harvard Business School

Getting drunk improves creative problem solving - Harvard Business School

Bruce Whitfield asks branding and advertising expert Andy Rice about a peculiar study that has creatives reaching for the tequila.