South Africa News Update: South Africa the next currency crisis?

  • |
  • 04 mins 18 secs
With emerging market crisis breaking out in Turkey and Argentina, could South Africa be the next currency crisis? This update looks at Investec’s fund management division’s bid to play in the super league of money managers and BEE.conomics survey uncovering black asset management firms underrepresented in the industry.

Channel

News
Asset TV
London • Harpenden
Tel: +44 (0)1582 764000

New York
Tel: +1 212 661 4111

If you have found this report informative and would like further information please email Asset TV at [email protected]
Jenny Ellice:

Hello and welcome to asset tv's news update to meet kenny ellis in this bulletin black asset management firm severely under represented in the industry and in south africa the next currency crisis


Jenny Ellice:

but first of the five trillion ran being run by private sector asset managers some ten percent four hundred ninety billion is run by majority black and farms on the equivalent figure for the eight point seven trillion round savings and investment market is just five percent these beggars come from the latest survey by the economics on the number of majority black own firms is now forty eight an increase of two hundred forty eight percent since the survey was first conducted in two thousand nine to quanta asset managers is responsible for thirty percent of the four hundred ninety billion rand


Jenny Ellice:

next anglo south african bank investor is to spin off its fund management division and list on the london stock exchange


Jenny Ellice:

to play in chief exact off the asset management business. Hendrick to twelve puts it the super league of money managers the plants of float the asset management business on the london stock exchange with a secondary listing in johannesburg follows similar moves by prudential or mutual and deutschebank as peaceful and costs rise investigate asset management will debut on the foot ct fifty within the next twelve months


Jenny Ellice:

and finally with emerging market crisis breaking out in turkey in argentina what might it mean for south africa? I spoke with cookie, cookie man portfolio manager for denker capital to discuss of the country it's the next currency crisis


Kokkie Kooyman:

i don't think so they figured the next currency crisis and the real reason is


Kokkie Kooyman:

that the numbers are not as dead as those with those countries where we have seen crises recently lock argentina and turkey in terms of the data jd piece of africa looks a lot better in brazil


Kokkie Kooyman:

turkey's in the budget balance that actually looks really good compared to brazil and turkey and even in terms ofthe its trade deficit it's not as bad as though and turkey award in peanuts


Kokkie Kooyman:

second the south africa has the deep financial markets and liquid financial markets of financial sector strong burst of banks and insurance and pension fund


Kokkie Kooyman:

so eighteen percent off of that decade finance internally but very liquid markets and finally there is


Kokkie Kooyman:

a very strong and independent reserve bank the central banks of the celestial thank you case off eh


Kokkie Kooyman:

parenti cross is


Kokkie Kooyman:

starting to develop would


Kokkie Kooyman:

hesitate to hike interest rate if i thought that was a necessary policy and you wouldn't be celestica sees the same political interference in turkey


Kokkie Kooyman:

however he said that that we won't see crisis was unlikely martin and c crisis we will see a computer degeneration so i don't see the rand getting stronger on this we certainly have a weak dollar which will cause all emerging market currencies so rarely but mar scenario is more for continuous weakening off the rent in fits and starts, but on average, eight percent of ten percent even per annum. And we've already tv seventeen percent this year.


Kokkie Kooyman:

So you've most resealed a lot of the decline, but that's more because the policies that are being followed our anti growth. In fact, they have political agendas on the russky that as an unemployment increases and the growth rate slows down, that we get increasingly more populist policies, which will scare away local and foreign capital as it is happening. At the moment. Somebody, i don't think currency crisis. But the policies that are being followed will not help that africa to increase growth rate and going to attract foreign capital.


Jenny Ellice:

Well, that's it for this news update. For more videos, please visit our website. Set tv tacos about saturday. Thanks. Searching. Buy finner!