The Gibbons Report: 12 June 2026

S.A. DELIVERS 2.4% CURRENT ACCOUNT SURPLUS South Africa has posted its largest current account surplus in four years. The first-quarter balance on the current account widened to a surplus of 2.4% of GDP, or R190.7 billion, from 0.6% at the end of Q4 last year. Driving the turnaround, the value of gold exports surged, and imports dropped. S.A.C.C.I. SLAMS S.A.R.B. RATE HIKE The South African Chamber of Commerce and Industry is asking why the Reserve Bank chose to raise interest rates at its last meeting, when economic growth is weak and business sentiment is fragile amid the war in Iran. The Chamber says the hike in the interest rate can barely be justified given the overall performance of South Africa’s economy. A statement says one could speculate that it may not have been necessary to raise interest rates, given that the rise in fuel prices may be temporary and short-lived. It’s certainly a point of view, but one that’s in sharp contrast to the majority of economists here who had been forecasting just such a rate hike by the Reserve Bank. NUMSA REJECTS 7% ESKOM PAY DEAL One of the three key unions at Eskom – NUMSA – has rejected a multi-term wage deal that the National Union of Mineworkers and Solidarity have accepted. Business Day reports that it’s a 7% deal for each of the three years, and it’s now headed for the CCMA. The NUM and Solidarity represent 75% of Eskom’s employees. Therefore, at least in theory, the wage agreement is binding on all employees, including those affiliated with NUMSA. However, NUMSA sees it differently and has declared a wage dispute. It’s demanding 8%. MUSK’S SPACEX BECOMES LARGEST I.P.O. IN HISTORY; MUSK BECOMES TRILLIONAIRE On the markets, today’s the day that Elon Musk’s SpaceX lists on the Nasdaq. At $75 billion, it’s the largest listing in history and, along with Tesla and his other properties, makes Musk the first-ever trillionaire. Meanwhile, the JSE closed last evening with both the All Share and Top 40 up around the 0.6% mark, London’s FTSE a tad less. In New York, the Dow ended up 1.9% - the S&P 500 up 1.8% and the Nasdaq up 2.5%. It looks like they’re buying Donald Trump’s statement that a deal to end the Iran war has been reached. Tehran says only that there is a possibility Iran would consider signing. Tokyo is up 3.3% this morning - Hong Kong is up 2% - Sydney is up 1.9%. The US dollar has eased to $1.16 against the euro – the rand has picked up – R16.30 to the dollar, R18.86 to the euro and R21.86 to sterling. Gold - $4,196 – Platinum $1,738 – Bitcoin – $63,400 and Brent Crude oil – back down to just on $89 per barrel for the first time since early March.