Breaking and Important News

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Important Credit Industry News as it breaks !
JOHANNESBURG

Available economic activity data has shown that the economy ended last year on a weaker footing, with December retail sales figures being the latest to disappoint, declining for the first time in nearly two years. Statistics South Africa said yesterday that retail sales declined 1.4 percent on a yearly basis in December – the first decline in retail trade since February 2017. StatsSA said that on a monthly basis, retail sales slumped 4.8 percent, the most since May 2011. Lower sales were recorded for clothing, textiles, food, beverages and tobacco.

FNB economist Siphamandla Mkhwanazi said despite the weak December figure, he expected a moderate positive contribution to the fourth quarter gross domestic product. Looking ahead we expect the combination of a sharp decline in the December and January petrol price and the gradually increasing credit take-up by consumers (particularly unsecured credit) to support retail sales in the coming months.
GLOBAL

The value of the U.S. dollar remains strong against the Euro, the British pound, the Chinese Yuan, and the world. Over the past year, since the end of January 2018, the U.S. Dollar index (DXY) has risen from just over 89.00 to close at just over 97.00.

It now takes only $1.1278 to acquire one Euro where, last year, it took just over $1.2500 to buy one Euro. One British pound, last year, cost $1.4264 whereas yesterday one pound cost around $1.2850. Last year, it took a little less than 6.2700 Chinese Yuan to buy one U.S. dollar. Yesterday, it took close to 6.8000 Yuan to buy a dollar.

We could go further, but these data seem to tell a good part of the story…
BRISBAN

Banks may make it harder for consumers to get car loans, credit cards and personal loans under proposed rules from the corporate regulator. After the royal commission put bank lending practices under the microscope, adding to pressure from regulators, the Australian Securities and Investments Commission last week issued a consultation paper on responsible lending, which reiterated some of its concerns about how customers' living expenses were assessed by banks.

In response to the paper, which will be followed by consultation with banks over the coming months, some banking analysts predicted certain types of consumer credit could be tightened. At the same time, however, they said there could be benefits for the big banks, because the new rules are expected to force smaller non-bank lenders to tighten their processes, similar to what banks have already done over recent years.