Another positive week for the JSE, as investors turn positive on the news that quite a few countries are lifting lockdown restrictions. S&P ratings agency downgraded SA further into junk status, but the Rand is still holding below 19/US$. Edcon has filed for voluntary business rescue, as Comair find themselves in a “very difficult“ financial situation. The US Fed kept rates on hold, while another 3.8m Americans registered for unemployment. And Spotify claims that podcast listening has increased, as every day for users now looks like the weekend.
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Edcon has been teetering for a while, but the Covid-19 lockdown may very well be the coup de grace which deems the company defunct. Mr Price has delayed the release of its reports during the lockdown, and there are murmurs that bonuses and raises for their executive staff may be frozen until further notice. Moody's has finally dropped the hammer and South Africa is now officially at junk status. How will this affect South Africa, from the Reserve Bank to the citizen who is paying a bond and school fees? Will Covid-19 be harder to recover from than the market crash of 2008?
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