Poor diesel car demand will plague platinum prices

Significance The mainstay of demand is for catalytic converters on diesel vehicles, which consumers are buying in lower numbers since the 2015 Volkswagen emissions scandal. Reduced supply from idled mines in main producer South Africa has helped the spot price recover somewhat. Impacts Prestige Bullion, a joint venture between the South African Mint and Rand Refinery is launching a ‘big five’ themed platinum coin. A tri-metal catalyst that substitutes some palladium with platinum has met emission rules and is awaiting adoption by European carmakers. Historically, the weakness of South African Rand leads to overproduction of platinum and this may occur again this year. Half of the fuel-cell technologies in electric cars require PGM, but work is underway to eliminate the need for the metal in fuel cells. Although substitution and thrifting from old catalysts contributes to supply, scrap contains relatively small quantities of platinum.

Eswatini (formerly Swaziland)

Eswatini, formally known as the Kingdom of Eswatini, is a landlocked country in Southern Africa and one of the smallest countries in Africa with a total area of 17,364 square kilometres (km) and a population of 1,367 (2017). It is bordered by Mozambique and South Africa. The capital and main business centre of Eswatini is Mbabane. The working week is from Monday to Friday from 0800 to 1300 and 1400 to 1700. The Swaziland Lilangeni (SZL/ E) is the official currency of Eswatini. The Lilangeni was introduced in 1974 to compete with the South African rand through the Common Monetary Area, to which it remains tied at a one-to-one exchange rate.

Lesotho

The Kingdom of Lesotho is a landlocked country within the borders of South Africa. Lesotho, previously known as Basutoland, was a British colony from 1959 until it gained its independence from Britain on 4 October 1966, after which it became formally known as The Kingdom of Lesotho. Lesotho covers an area of 30,355 square kilometres (km), with a total population of 2,285,604. The capital city is Maseru, which lies directly on the border with South Africa, with a population of 330,760. Maseru has a rapidly growing economy as a result of industrial trade, foreign and local investment in the city. Other main cities, although substantially smaller than Maseru include Teyateyaneng, Mafetang, and Hlotse. The working week is from Monday to Friday from 0900 to 1245 and from 1400 until 1630. The currency in Lesotho is the Maloti (M), which is used alongside the South African rand (ZAR), with the Maloti currently being at the same exchange rate to the South African rand.

Industrially Finished Calves: A Water Footprint-Profitability Paradox

The feed conversion rate is one of the most important determinants of the water footprint (WF) of beef and is known to vary between different cattle breeds. The objective of this study was to estimate the WF of industrially finished calves of seven different cattle breeds on two different feeding regimes: normal pre-determined feeding period (NPFP) and profit-maximising feeding period (PMFP). Data were collected by finishing 35 calves of each of the seven breeds in a feedlot. Green, blue and grey WFs were estimated for the different feeding regimes, and a feedlot simulation provided the effect of the different feeding regimes on the water footprint, financial margin and the water footprint per rand of margin. The results indicated that the water footprint differed notably between breeds on the same feeding regime, as well as between the feeding regimes. While the PMFP had a 1% higher water footprint per year in a typical feedlot than the NPFP, the financial margin was 33% more, resulting in a 24% decrease in the water footprint per South African rand of margin. The contributions of green, blue and grey water to the total WF were 91.5%, 2.5% and 6%, respectively, irrespective of breed or feeding regime.

Testing for explosive bubbles in the South African-US exchange rate using the sequential ADF procedures

This paper tests for the existence of speculative bubbles in the South African-US exchange rate using the sequential ADF procedures. In particular, the paper uses the SADF and GSADF right-tailed unit root tests to explore the existence of explosive bubbles in the South African-US exchange rate for the time period running from January1980 through July 2012. The results provide evidence in support of the existence of explosive bubbles in the nominal rand-dollar exchange rate, the real exchange rate of traded and non-traded goods. The explosive behavior exhibited by the South African rand-US dollar exchange rate can be interpreted as evidence of rational bubbles given that this behavior is driven by the fundamentals including relative prices of traded and non-traded goods.

Economic gloom portends instability in Zimbabwe

Significance Mawarire is the founder of the 'This Flag' movement, which has been a driving force behind a wave of demonstrations and strikes earlier this month against graft, unemployment and economic mismanagement by President Robert Mugabe's government. Impacts Import bans will adversely affect South African exporters, for whom Zimbabwe is a key regional market. Use of the South African rand in Zimbabwe will remain unpopular, due to concerns about its weakness against the dollar. The government will prioritise cash for paying the salaries of the security forces, since these underpin the regime's survival. Loans from the African Export-Import Bank will help Harare to begin paying the World Bank some of its arrears.