Market Commentary | The week that was
The government indicates higher taxes to fund National Health Insurance: According to a government factsheet released by the Department of Health and the Presidency, funding for the National Health Insurance (NHI) will likely involve the implementation of increased payroll and income taxes.
The factsheet suggests that employers and employees will contribute to the NHI. The contributions will be like contributions made to the Unemployment Insurance Fund (UIF). While the factsheet does not specify the exact tax rates, these taxes might need to be significantly higher when considering the extensive coverage provided by the NHI.
BMW SA marks its 50th anniversary with investments and social responsibility: BMW South Africa announced a significant investment coinciding with its 50th anniversary in the country. Plant Rosslyn, the company's first plant outside Germany, has produced over 1.6 million vehicles and exported them to more than 40 countries, including 14 African nations. The BMW X3, a crucial volume model, has seen over 330,000 units produced in South Africa since 2018. In 2015, BMW pledged to invest over R6 billion in Plant Rosslyn, transitioning production from the 3 Series to the X3. Aside from cars, BMW South Africa demonstrated social responsibility by making a R30 million donation to support a United Nations Children's Fund (UNICEF) program, aiming to promote science, technology, engineering, arts, and mathematics education among thousands of South African learners.
Markets: On Monday, the rand was trading at R18.73/$, R20.39/€, and R23.72/£. Brent crude is trading at $75.11 a barrel. The JSE FTSE All Share index rose slightly to about 76,260 on July 1st, continuing the previous month's 1.3% increase, driven by gains in resource-linked sectors (+0.8%) and financials (+0.6%)
Looking ahead: The US to announce its unemployment rate on July 7th. It currently stands at 3.70%, and there are predictions that a 0.7% increase in unemployment may be necessary to lower inflation by 1%
