News 16:00

BULLETIN 21 January 4 pm

Good afternoon. I am……..

In this bulletin:

# The governor of the Reserve Bank warns US policies could hinder disinflation efforts
# Cosatu calls on the Reserve Bank to intervene in the Ithala Bank crisis
# And tennis: Aryna Sabalenka’s good friend Paulo Badosa awaits her in the Australian Open semi

# South African Reserve Bank governor Lesetja Kganyago has cautioned that certain US policies could disrupt central banks’ efforts to cut interest rates by fueling inflation. Speaking at the World Economic Forum in Davos, he noted how these policies, such as tariffs, have the potential to slow disinflation and force monetary policy tightening. Central banks globally, including South Africa, began reducing rates last year as inflation eased. South Africa’s Reserve Bank cut rates to 7.75-percent in November, with another reduction expected on January 30.

Meanwhile, Cosatu is calling on the Reserve Bank, government and the National Treasury and all its divisions to take their regulatory role very seriously and intervene in the Ithala Bank crisis. Cosatu’s Edwin Mkhize says the central bank’s Prudential Authority has applied to the High Court in Pietermaritzburg, KwaZulu-Natal, for the provisional liquidation of Ithala, after the development finance agency was reported to be insolvent:

# Cape Town’s mayoral committee member for Safety and Security, JP Smith, has called on police to institute shutdowns of gang areas including the Cape Flats. Enforcement agencies recovered at least ten firearms in the past week, while five incidents happened in the space of 24-hours this past weekend. Smith is hopeful the shutdowns could make meaningful dents in the firearm and narcotics trades in the affected communities:

# The International Energy Agency’s latest Gas Market Report warns of tight global gas markets in 2025 as demand outpaces supply growth. In 2024, gas demand surged 2.8-percent, driven by Asian markets, but below-average liquified natural gas output and extreme weather limited supply. According to the report, geopolitical tensions, including halted Russian gas transit via Ukraine, add to risks. The IEA urges greater international cooperation to enhance gas security.

# Tennis: Two-time defending champion Aryna Sabalenka will face her close friend, Paulo Badosa of Spain, in the penultimate round of the Australian Open. The world number one from Belarus easily won the first set of her quarterfinal match against Anastasia Pavlyuchenkova before the Russian fought back to force a deciding set, which Sabalenka clinched 6-3. Eleventh-seeded Badosa earlier stunned world number three, Coco Gauff of America, to reach the penultimate round of a Grand Slam tournament for the very first time.

# And the financial indicators: The dollar trades at 18-rand-61-cents and the euro at 19-rand-26-cents. One British pound costs 22-rand-78-cents and Bitcoin trades at 104-thousand-327-dollars. Gold sells at two-thousand-723-dollars-94-cents a fine ounce and Brent crude oil is quoted at 78-dollars-20-cents a barrel.

Stay tuned for more news………….