Shaken, Not Stirred:
As November unfolds, the financial world finds itself in a plot worthy of 007 himself—complete with intrigue, high stakes, and unexpected twists. The return of Donald Trump to the White House has set the stage for a showdown that could rival Casino Royale. His pro-growth policies may sound like the shiny gadgets “Q” would present, but they come with explosive risks. A proposed 60% tariff on Chinese imports and a 10% levy on all others could hit consumers harder than a Golden Eye laser, inflating prices and slowing economic momentum. Investors are left wondering if Trump can pull off his fiscal manoeuvres or if the trade tension will send markets tumbling like a rogue Spectre. In the US, Federal Reserve Chair Jerome Powell played his role as the financial world’s “M,” announcing a 25bps cut to the federal funds rate, now at 4.50%-4.75%. Following September’s larger cut, this move signals a continued effort to steady the ship. Powell assured markets that the economy remains steady, with inflation moderating and employment strong. But even 007 would know to tread carefully—future rate cuts depend on data stability, and unexpected inflation from Trump’s policies could be the financial equivalent of a License to Kill. Meanwhile, South Africa’s economy delivered its own twist. Headline inflation dropped to 2.8% YoY in October—the lowest since 2020, thanks to plunging fuel and food prices. It’s a promising shift, like Bond finding a clean getaway, but danger still looms. Responding to the current situation, the South African Reserve Bank (SARB) took a cautious approach and cut rates by 25bps to 7.75%. But as every agent knows, appearances can be deceiving. With Eskom’s proposed 36.2% electricity hike and global tightening, inflationary pressures could return with a vengeance.
Looking ahead, the financial world is no stranger to high-stakes missions. The SARB’s projection of c. 2% GDP growth by 2027 is optimistic, but much like Bond’s nemeses, global challenges won’t go quietly. Geopolitical tensions, volatile energy markets, and persistent inflation risks mean investors must channel their inner 007 and be adaptable, vigilant, and ready for anything. So, as markets navigate this treacherous landscape, the motto remains clear: don’t be shaken by volatility and stirred into rash decisions. After all, fortune favours the bold—especially those who keep their wits about them, Bond-style.
Local – South Africa -All Share index for November -0.9%
Global – MSCI All Countries World Index 3.7%
Article by Corion Capital