Morning Market Scoop 13 February 2019
In our morning market scoop:
- US Government Shutdown Round 2.
“The Wall ……Shut it Down….”
What’s the scoop? US-Mexico Border Security Deal
- The agreement, thou tentative was reached in the attempts to avoid yet another U.S Government Shutdown waiting in the wings. Around $1.5 Billion have been agreed upon for border security which is far less than the $5.6 Billion that President Trump
The big picture – The funding still needs to be approved by Congress and signed off by the President before construction of the 55-mile (89 km) border fencing can commence. This is a small part of the more than 2000 miles of border wall the President promised. The boarder wall will also not be a solid concrete structure like Trump wanted but instead have metal slates in the existing design. The recent Government Shutdown which is now the longest shutdown in U.S history, kicked off in December 2018 and ended 25 January 2019 totalling 35 days.
- The shutdown affected over 500 000 government employees and the impact on the U.S economy is estimated around $11Billion. The U.S economy might see a 0.5% growth decline due to the Shutdown if analysts are correct.
Notable companies reporting earnings are:
United States: AIG (AIG), Heineken NV (HEINY), MGM (MGM)
South Africa: Curro Holdings Ltd (COH), DRD Gold Ltd (DRD),
What does all this mean for me?
- At this stage of the race not much until we see the Gross Domestic Product (GDP) numbers from the United States to see how the Government Shutdown affected the economy.