GLOBAL MARKETS
TRUMP MAKES PROGRESS WITH TAX REFORM
This week, investors awaited the Kansas Fed’s annual economic symposium held at Wyoming, where central bankers met to discuss long-term policy issues of mutual concern. However, Friday’s speeches from Janet Yellen and Mario Draghi were a bit of an anti-climax, with Draghi apparently unconcerned about the recent appreciation in the Euro, and Yellen warning about dismantling some of the post-crisis financial regulation.
US: PROGRESS ON TRUMP’S TAX REFORM
President Trump seemed to make some progress on his tax reform agenda this week, with his team finding common ground on some of the ways to pay for personal and corporate tax cuts, such as capping mortgage interest deduction for home owners, scrapping state and local tax deductions, and eliminating businesses’ ability to deduct interest while allowing the phase-in of full expensing for small businesses. However, Trump managed to squash some of the optimism that resulted, after threatening to shut down government if Congress did not fund the border wall he promised voters while campaigning. In other news, the federal government has until sometime between late-September and mid-October to raise the debt ceiling or else face a technical default. Key officials appear confident that the debt ceiling will be raised without a hitch, as the US believes in paying its debts. August manufacturing PMI came in lower at 52.5 pts (vs. 53.5 pts expected), while the services PMI rose 2.2 pts to 56.9 pts (vs. 55.0 pts expected), the highest level since April 2015.
EUROPE: FLASH PMI REMAINS STABLE
The Euro-area flash PMI remained mostly unchanged as gains in manufacturing offset a small drop in services. The composite PMI edged up slightly to 55.8 pts, implying that the economy is growing at an annual rate of 2.5% YoY. Despite recent appreciation of the euro, input prices were higher and not falling as some have suggested.
GERMANY: ECONOMY SET TO CONTINUE ROBUST GROWTH
In Germany, the ZEW expectations index was lower than forecast at 10 pts vs. 15.0 pts, on worries that the strengthening euro will put the economy under added strain after the widening diesel car scandal. The manufacturing PMI returned to 59.4 pts (vs. 57.6 pts expected), while the services PMI recovered slightly to 53.4 pts (vs. 53.3 pts expected), bringing the composite PMI to 55.7 pts. The figures indicate that the German economy should continue to grow at a solid pace in the upcoming quarters, but at the same time reveal growing capacity pressures and increasing risk of overheating.
UK: AUGUST DATA SHOWS SALES DECLINE
The UK’s preliminary GDP data for the second quarter came in as expected, at 0.3% QoQ and 1.7% YoY. Private consumption rose 0.1% QoQ (vs. 0.3% expected), but capex rose more than forecast to 0.7% QoQ. On the consumer side, the UK’s CBI Distributive Trades Survey revealed a net 10% of respondents reporting a decline in YoY sales in August.
INDONESIA: UNEXPECTED RATE CUT
Indonesia’s central bank unexpectedly cut the reverse repo rate by 25 bps to 4.50% this week, to boost economic growth and the country’s banking sector. The move was motivated by the fact that inflation has fallen to its lowest level since the current measuring system was in place last month, which gave the bank more leeway to cut.
DOMESTIC MARKETS
JSE AND CURRENCY END WEEK IN POSITIVE TERRITORY
It was a very quiet week for local markets. By Friday, the JSE had risen 2.53%, with 2.95% gains in resource shares boosting the index. The rand had strengthened by 1.03% to the US dollar by the end of the week, closing at R13.04 to the greenback. The MSCI global index climbed 0.73%, while the MSCI EM index gained 2.44% for the week.
SARB’S LEADING INDICATOR LOWER FOR JUNE
The SARB’s leading indicator for June came in slightly lower than anticipated, at 95.7 pts (vs. 95.8 pts in the previous two months). The main positive contribution to the index was attributable to an increase in South Africa’s major trading partners and an increase in new orders by manufacturers. The main negative contributions came from a drop in the number of building plans passed and a decrease in job advertisement space.
CPI FOR JULY LOWEST SINCE SEPTEMBER 2015
Headline CPI for July came in at 4.6% YoY, its lowest since September 2015, and down from 5.1% YoY in June. This means that the chances of further interest rate cuts are likely, in an effort to boost flailing economic growth. On average, prices increased by 0.3% between June 2017 and July 2017.
ESKOM: HIGHER ELECTRICITY TARIFFS ARE ON THEIR WAY
After a Constitutional Court judgement, Eskom may now claw back additional costs from the previous four years in the form of higher tariffs – over and above a NERSA approved tariff. This is likely to have a serious impact on both consumers and producers. Electricity currently makes up 3.75% of the overall CPI basket, but if Eskom is granted the full 20% application and additional clawbacks for four years, electricity tariffs will push CPI higher in July next year.
Megan joined the Brenthurst Wealth team in March 2026 as an Administrative and Fiduciary Services Assistant at our Val de Vie Office in the Western Cape. Prior to joining Brenthurst, Megan gained three years of experience in the retail sector, where she developed management and client service skills.
I obtained my National Diploma in Financial Information Systems from the Cape Peninsula University of Technology in 1999 and have worked in the wealth management industry since January 2000. Over the years, I have gained extensive experience in various roles, including Portfolio Manager Assistant, Planner Assistant, and Paraplanner.
Esmarelda Isaacs-Andreas joined the Brenthurst Wealth Stellenbosch office in October 2025, taking on the dual role of Receptionist and Fiduciary Administrator.
I obtained my National Diploma in Financial Information Systems from the Cape Peninsula University of Technology in 1999 and have worked in the wealth management industry since January 2000. Over the years, I have gained extensive experience in various roles, including Portfolio Manager Assistant, Planner Assistant, and Paraplanner.
Ashley joined Brenthurst Wealth in January 2025 as Office Administrative Assistant and Receptionist for the Stellenbosch Office.
René Heystek joined Brenthurst Wealth in November 2023, as receptionist and administrative assistant in the newly established George/Garden Route office.
Michelle Heystek has built a career in the financial services over the last two decades, after obtaining her B.Com degree in Financial Management in 2005. Once she joined Brenthurst in 2006, she continued her academic journey, obtaining her Certificate in Wealth Management from INSETA in 2007, followed by a Postgraduate Diploma in Financial Planning from the University of the Free State. In 2008, she earned the Certified Financial Planner (CFP®) designation.
Anelle joined Brenthurst Wealth as a Receptionist and Administrative Assistant to Brian Butchart in the Cape Town office in December 2023. She has a wealth of knowledge from working as a liaison between Financial Advisers and clients at TMA and Absa Investment Management Services (Aims) since 1998. She obtained her B. com degree from the University of Port Elizabeth in 1997.
ADMITTED ATTORNEY | FINANCIAL PLANNER & HEAD OF BRENTHURST FOURWAYS
Sanet was appointed in April 2020, joining our Cape Town team as an Executive Administration Assistant to Renee Eagar. She has been in the financial services industry since 1990. Her previous experience includes positions at Sanlam, BJM and ABSA. She spent her last 12 years working at Alexander Forbes Private Client Wealth as a Senior Wealth Management Assistant. She has received numerous accolades over the years which include but not limited to, Alexander Forbes Client Service Excellence – Silver award in 2014,2015 and 2017. Sanet has also obtained her Certificate in Wealth Management (NQF 5) in 2012 and achieved “Best Student of the Year” from Moonstone.
Maria Smit is a Certified Financial Planner® with over 10 years of experience in the financial planning industry.
