Business & Tech News
Tech Stocks Surprise: The Nasdaq scored a record closing high and the S&P 500 rose on Tuesday, while the Dow fell as investors digested a host of corporate earnings and awaited Google-parent Alphabet’s results that came after the market close. Alphabet, one of the seven megacap American technology stocks, reported its quarterly revenue that surpassed analysts’ estimates. This is the busiest week for S&P 500 earnings in the quarter, with eyes on five of the “Magnificent Seven Tech Stocks”, with Alphabet, Apple, Meta Platforms, Amazon, and Microsoft that are all reporting earnings this week. The group’s results will be crucial to determining whether Wall Street can sustain the optimism around technology and artificial intelligence that has lifted indexes to record highs this year. Tesla share prices alone pushed the index higher last week so all investor eyes will be on the week’s results.
South African Mid-Term Budget Tabled Today: The Minister of Finance, Mr Enoch Godongwana, will table the Medium-Term Budget Policy Statement (MTBPS) in Parliament on Wednesday, 30 October 2024 at 14h00. The MTBPS sets government policy goals and priorities, forecasts macroeconomy trajectory, and projects the fiscal framework over the next three years by outlining spending and revenue estimates, amongst others. Analysts have stated that they expect the budget deficit to shrink, with tax collections improving, while unions in South Africa have stated that they are anticipating a budget that will not address the growing social economic challenges the country is facing. South Africa has a burgeoning unemployment rate and while structural issues are being addressed, there is a sense that government is not cutting back enough on its own expenditure, with an ever growing government structure.
Telecoms Deal Halted: The South African Competition Tribunal has stopped a planned acquisition deal causing chaos in the industry after it announced on Tuesday that it was blocking Vodacom’s acquisition of a co-controlling stake in Vumatel’s parent company Maziv. The transaction was widely expected to get the green light from the tribunal after the merging parties agreed to a range of conditions they believed would expedite the decision. The decision would be a massive dissappointment for Maziv and its shareholders, which had planned to use the proceeds of the Vodacom investment to invest R10-billion into the roll-out of extensive fibre networks in underserviced parts of South Africa, including township areas. The company has commented that they will await the tribunals findings and then consider its options. The finding could also potentially effect the entire industry and prevent further consolidations that had expected to follow an approval of the transaction, including a rumoured deal between MTN South Africa and Telkom’s Openserve.
Market News
Markets: Indices in the US closed a mixed bag yesterday with the NASDAQ closing 0,83% up, the S&P 500 gained 0,16% and the Dow Jones closing -0.36% down. The Nikkei closed 0,97% up today at 39281, while the Hang Seng is up by 0,49% this morning at 20701 currently.
Currencies: The US Dollar has strengthened and is currently trading at 1.082 against the Euro, at 1,300 against the Pound, and at 153.29 against the Yen. The rand has traded slightly softer this morning and is currently trading at R17.70 to the US dollar.
Commodities:
- Gold prices have been gaining in trade this morning and is currently trading at $2,778
- Platinum prices are currently trading at $1048, with Palladium settling back today trading slightly down at $1203 currently
- Brent crude is currently trading at $71.51 with WTI trading at $67.65 currently.
- Cocoa prices have gained over 6% this morning and is currently trading at 5781 pounds,
(All prices quoted at 09H20 CAT)
Other News in Africa Today
Botswana Elections Today: Botswana citizens will be heading for the polls today (30 Oct), to determine to determine the composition of the 13th Parliament of Botswana as well as local councils across the country. Up for election are 61 seats of the National Assembly as well as 609 local council seats, with many looking for a change in direction for the Southern African country. The current ruling, Botswana Democratic Party (BDP) has been in power since their independence from the UK in on 30 September 1966.Analysts have commented that this general election’s outcome is hard to predict. With the current slump in prices of diamonds internationally, the key export product of the country, it faces economic stress. The opposition say the BDP has been in power too long and accuse it of economic mismanagement. Botswana is widely perceived as a country with low corruption and good governance, however there is a growing lack of confidence in the government.
Bolt Driver Bashed by Politician: A member of the House of Representatives, Alex Ikwechegh, was caught on camera, assaulting a Bolt driver who delivered a package to him at his home in Maitama, Abuja. The video shows Ikwechegh, the representative for Aba North and South Federal Constituency, repeatedly slapping and verbally attacking Bolt driver Stephen Abuwatseya, who had requested that Ikwechegh come outside to collect his delivery. In the video, that has gone viral on social media, a visibly upset Ikwechegh, criticizes the driver for his perceived disrespect, stating it was inappropriate for someone of his social standing. He is recorded making threatening remarks, including the statement that he could “make the driver disappear” without facing repercussions.
