South African Rand Soars 4%, Biggest Jump In 2 Years On Imminent Ramaphosa Victory

The South African currency and local equities soared on Monday amid investor hopes that pro-reform candidate Cyril Ramaphosa has won a victory in the ruling ANC’s leadership contest. With official results expected shortly, the rand is now over 4% higher on the day, rising as high as 12.56 against the dollar.

Military Personnel Fire At Man Trying To Ram Checkpoint At US Air Base In UK

US military personnel fired shots at a man who tried to force his way into a military base in central England used by the U.S. air force on Monday. The Mildenhall Royal Air Force base in Suffolk, eastern England said security staff locked down the base, used by the United States to refuel U.S. and NATO aircraft in Europe.

Goldman Finds Tax Reform Will Greatly Benefit The Big Banks

"Based on our preliminary analysis of the current tax bill under consideration by Congress, our EPS estimates for our coverage would increase by 13% on average if the US statutory rate were to be reduced to the proposed 21%, all else being equal."

Key Events In The Last Week Before Christmas

It might be the last full week before Christmas - with both newsflow and trading volumes set to slide substantially - but there’s still a few interesting events and data releases to look forward to next week.

Rising Interest Rates Starting To Bite

We have long held that interest rates have been so low (especially real rates) that it will take some time to reach a level for them to really matter and impact markets. The 2-year yield crossing over the S&P500 dividend yield this past week for the first time in the last ten years is unlikely to slow the momentum driving risk markets.

Frontrunning: December 18

  • Bitcoin Takes Bigger Wall Street Stage With Smooth CME Debut (BBG)
  • Trump targets China and Russia on national security (Reuters)
  • Panthers owner to sell team amid misconduct allegations (Reuters)
  • Prosecutors Treat Opioid Overdoses as Homicides, Snagging Friends, Relatives (WSJ)
  • U.S. taxpayers rush to claim deductions under threat from tax bill (Reuters)