Business & Tech News
Old Mutual Fined for Non-Compliance: In a statement released on Friday, the South African Reserve Bank (SARB) said it had imposed an administrative sanction on Old Mutual Life Assurance Company South Africa (OMLACSA) as a result of its non-compliance with the provisions of the Financial Intelligence Centre Act (FICA Act), following an inspection conducted in 2020. The SARB on Friday said the administrative sanctions imposed on OMLACSA were due to its failure to comply with certain provisions of the FICA Act and consists of four cautions and a financial penalty totalling R15.9 million.
US Blocks Ai Safety Bill: Controversial Californian Governor, Gavin Newsom has blocked a landmark artificial intelligence safety bill, which had faced strong opposition from major technology companies. The proposed legislation would have imposed the first regulations on AI in the US. While Governor Newsome claimed that the bill would stifle innovation and prompt AI developers to move out of the state, Senator Scott Wiener, the author of the bill, said the veto will allow Tech companies to continue developing an “extremely powerful technology” without any government oversight.
Congo Copper Mine Shut-down: Moneyweb reports that a Glencore Plc-owned copper mine in the Democratic Republic of Congo is in a conflict with tax authorities in Congo, regarding royalties they claim are due. This has led to operations at the mine coming to a halt. The government tax authority or DGRAD, claims that Kamoto Copper Co. owes the Congo $894 million in outstanding royalties. The mining operation had its bank accounts frozen earlier this year. Glencore owns a 75% stake in the massive copper producing mine that produced over 200 000 tons of copper and 16 000 tons of cobalt exports in their 2023 financial year.
South African Currency Boost: Various factors have driven the South African Rand (ZAR) to new best levels over the last week. One of the major factors is the newly announced Chinese economic stimulation packages announced by Beijing last week (China is SA’s largest trading partner), alongside the FED rate cuts and relative stability of the new Government of National Unity, formed after the general elections in May. The ZAR is currently at a 20-week high and is a major boost for business who have to import goods and equipment and for consumers as this directly impacts fuel prices. Analysts are now predicting the ZAR may strengthen further to around the 15 ZAR to the dollar from current levels of around 17 to the US dollar. Property markets are also anticipating better markets with the SA reserve bank also starting to cut rates and inflation back in the mid-range of inflation targeting.
Market News
Markets: US markets closed fairly flat on Friday with the Nasdaq closing -0,53% down, the S&P500 closed -0,13% down and the Dow Jones 0,33% up. in Asia markets this morning, the Nikkei dropped a dramatic -4,8%, losing all last week’s gains to close at 37919 while the Hang Seng has climbed 3,55% in early trade this morning, and is currently at 20362.
Currencies: The US Dollar is currently trading at 1.116 against the Euro, at 1,338 against the Pound, and at 142,05 against the Yen. The rand continues its form against the dollar and is currently trading at R17.05 and looks to be set to break below the R17 to the US dollar level.
Commodities: Gold has traded fairly flat today and is currently trading at $2,657, while Platinum has dropped back below the $1000 level and is currently trading at $997, and Palladium is currently trading a little softer at $1011. Brent crude prices are trending upwards this morning and is currently trading at $72.54 with WTI also trading upwards at $69.04 currently.
Other News in Africa Today
Eastern Cape Family Devastated by Mass Killings: The tiny rural village of Ngobozana, just outside Lusikisiki in the Eastern Cape, became the crime scene of a gruesome mass killing on Saturday (28 September) with 17 members of a single family gunned down. 17-members died on the scene while an 18th person died of their injuries on Sunday. The family had been preparing for a traditional ceremony that was to mark the end of the official mourning period of two other family members that had been shot and killed last year. Only six members of the family survived. According to Police Minister Senzo Mchunu, specialised investigators and forensic investigators had been deployed to the area to help assist local police in their investigations. No suspects have been determined yet.
Tunisia’s Parliament Kills Judicial Power: Nine days before the presidential election, a parliamentary sitting amended the Tunisian electoral law, removing the power to legally hold the local election authority to account from court jurisdiction. The courts will therefore no longer be able to make findings on the validity of decisions made by an embattled election authority whose members are appointed directly by President Kais Saied. The amendment has infuriated opposition parties and civil society groups who claim that the election authority has acted in concert with Saied to ensure he faces little competition in winning a second term. Demonstrators picketed in protest of the law outside of parliament, with the lead-up to this presidential election year’s vote tainted by what many believe to be election interference and with tensions high between the court and the Independent High Authority for Elections, or ISIE.