The economic extremes expected post cabinet reshuffle

The market reaction to last week’s events has, in some ways, been remarkably muted. This could be because the axing of Messrs Gordhan and Jonas was not entirely unexpected.  For many the question had been not so much whether they would be dismissed, but rather when – unlike the situation in December 2015 when Mr Nene was redeployed without any prior warning.  Consider also the fact that market players in the USA, the UK, and elsewhere in Western Europe are probably more pre-occupied with their own domestic concerns (Brexit, Trump, immigration).

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