Afternoon,
If last week had one message, it was this: inflation risk is back in the room.
Oil is back above $100 a barrel, with renewed attacks around Saudi Arabia and the Strait of Hormuz putting supply fears firmly back on the table.
That matters because inflation was already proving stubborn.
Hotter US inflation data has shifted expectations around interest rates, with Goldman Sachs and JPMorgan now expecting the Fed to hike in September.
Markets felt it.
Bitcoin slipped below $79,000 as higher-rate expectations weighed on risk assets, while Wall Street managed a Friday bounce but still ended the week under pressure.
Back home, South Africa’s economy shrank 0.2% in Q2, dragged down by mining, manufacturing and weaker domestic demand.
And across the continent, Dangote launched what Reuters described as Africa’s biggest IPO, seeking up to $2.1 billion for its Nigerian refinery.
Different stories, same backdrop: energy is more expensive, money is more expensive and capital is becoming more selective about where it goes.
Stay sharp,
80eight Team
