June 11th, 2008

ECB opposition to pushing low inflation and strong growth vs. ECB's mandate of only containing inflation



South Africa
Manufacturing output rose 9.8% (mktexp of 2.6%) vs. -1.1% in March
- because of increase in working days and weaker rand boosting exports (easter fell in March this year)
100bp hike would be biggest since Sept 2002
COSATU labor federation said it'd call a national strike to protest job losses linked to countrys power crisis
- in response to Eskom's layoffs from reduction in electricity supply + call to prevent any new construction initiatives
- begin on 02July provincially until massive 30July "national stayaway"
originally Eskom asked for a doubling in electricity tariffs but ANC backlash => hurt poor and stoke inflation
- now agreed to gradual increase over 5 years
- 8.0120 16Apr high; 8.0470 31Mar low, 8.1140 10Mar high