Nomura concerned Zuma will use 'scorched earth' strategy

accreditation
Share your Subscriber Article
You have 5 articles to share every month. Send this story to a friend!
President Jacob Zuma with Finance Minister Pravin Gordhan in better times in 2009. (File, AFP)
President Jacob Zuma with Finance Minister Pravin Gordhan in better times in 2009. (File, AFP)

Cape Town – President Jacob Zuma is currently in a weakened state with only a “scorched earth” strategy remaining open to him, said economist Peter Attard Montalto of Nomura in a company note on Monday.

According to Montalto, the situation in South Africa is “ultimately unpredictable”, following events last week when Finance Minister Pravin Gordhan was charged with fraud and theft, the delayed release of the public protector's report on state capture, which is subject to an interdict process, as well as Gordhan's court motion on Friday, requesting the court to rule he is not obliged to intervene in the Gupta bank account issue.

Montalto said the unpredictable environment and the market’s concern are partly reflected in higher bond yields, although investors are largely steering clear of the rand at the moment “after being burned by volatility last week”.

Support independent journalism
Subscribe to News24 for just R75 per month to read all our investigative and in-depth journalism. You can cancel any time.
Subscribe
Already a subscriber? Sign in
Rand - Dollar
15.98
+0.6%
Rand - Pound
21.22
+0.2%
Rand - Euro
18.06
+0.6%
Rand - Aus dollar
11.24
+0.1%
Rand - Yen
0.14
+0.8%
Gold
1,778.52
-0.3%
Silver
22.33
-1.0%
Palladium
1,775.29
-2.2%
Platinum
937.82
+0.2%
Brent Crude
69.88
+0.3%
Top 40
64,721
+0.6%
All Share
71,158
+0.5%
Resource 10
67,673
+1.8%
Industrial 25
93,605
-0.2%
Financial 15
14,041
+0.4%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot