Business News
Volkwagen Ventures into Software Development: With the ever increasing technology utilised in Automotive developments and products, it is no surprise that the German Auto Giant has now invested in a new software development venture with EV motor group Rivian, to the tune of $5.8 billion. Volkswagen Group announced the finalisation of the multi-billion-dollar joint venture to develop software, focussing on expanding its EV startup’s technical capabilities. Volkswagen Group has already made an initial investment of $1 billion in the form of a convertible note. The new joint venture named Rivian and Volkswagen Group Technologies, will officially kick off on November 13 as an independent company. Should it be successful, it could be a big advantage for both companies. Rivian gets the needed injection of capital to expand plus the opportunity to diversify its business, while the VW Group gains a next-generation electrical architecture and software for EVs that will help it better compete globally.
South African Manufacturing Production Drops Jobs Grow: The latest Stats SA manufacturing numbers point to a grim picture of overall declining manufacturing production in one of Africa’s largest economies. Manufacturing production decreased by 0,8% in September 2024 compared with September 2023. This follows a 0,7% drop in August. The key manufacturing sector causing the drop was the Automotive industry and associated parts and accessories, where manufacturing production fell by -18,7% that is a key manufacturing industry for the country. While there was an increase in Petroleum, chemical and rubber products of 3,1%, food and beverages only increased by a marginal 1,2%. When looking at the seasonally adjusted manufacturing production for the third quarter of 2024 compared with the second quarter of 2024, the automotive sector including motor vehicles, parts and accessories and other transport equipment fell by -5,7%. Seasonally Adjusted sales for Q3 were down by -0,9%, with the Automotive and parts sector seeing a -13,3% drop in sales for the period compared with the previous quarter. On the up-side the latest Quarterly Labour Force Survey indicates that the official unemployment rate has decreased by 1,4 percentage points from 33,5% in the second quarter of 2024 to 32,1% in the third quarter of 2024.
Shell Oil Wins Key CO2 Court Case: Global oil company Shell, has won a key case in the Dutch courts, overturning an earlier ruling requiring it to cut its carbon emissions by 45%. The 2021 ruling marked the first time a court gave a ruling ordering a private company to align its workings with the Paris climate agreement, and as such indication that a private company was not only required to follow the law of a state but had to now also comply with a h global climate policy introduced by an unelected global entity as well. The Hague court of appeal said it could not establish that Shell had a “social standard of care” to reduce its emissions by 45% or any other amount, even though it agreed the company had an obligation to citizens to limit emissions. The Hague High Court, backed a case by Friends of the Earth and 17,000 Dutch citizens in 2021, that found that Shell would be required to reduce its CO2 emissions significantly, in line with the Paris climate accords.
Tech News
5G AI network now a reality: Leading chipmaker Nvidia and SoftBank Corp,the telecommunications arm of SoftBank Group have tested and deployed the first ever AI and 5G telecoms network successfully, according to a statement released by Nvidia today. The network is able to run AI and 5G workloads concurrently, with a process known as an artificial intelligence radio access network (AI-RAN). Applications for the network include autonomous vehicle remote support and robotics control. “Every other telco will have to follow this new wave,” according to SoftBank Group CEO Masayoshi Son, who commented at an AI event where he was speaking alongside Nvidia CEO Jensen Huang. Huang said SoftBank was the first to receive its new Blackwell chip designs, which it is incorporating into the AI supercomputer it is developing to create its own generative AI model.
Market News
Markets: Indices in the US indices, were all slightly off the week highs with the NASDAQ down -0,17%, the S&P 500 was down by -0,29% and the Dow Jones closing down by -0,86%. Asian markets this morning have been trending lower with the Nikkei down -1,51% and is at 38782 currently, while the Hang Seng has dived by -2,86% this morning and at 19846 currently.
Currencies: The US Dollar has strengthened and is currently trading at 1.0612 against the Euro, at 1,274 against the Pound, and at 154.84 against the Yen. The rand has lost further ground to a strengthening Dollar, dropping by over 5% since Monday, and is currently trading at R18.08 to the US dollar.
Commodities:
- Gold has maintained its price above the 2600 mark and is currently trading at $2,605.75 per ounce
- Platinum and Palladium have both strengthened slightly from yesterday’s close, with Platinum prices currently trading at $951, with Palladium prices currently at $952.50 after taking a big drop off yesterday
- Brent crude is currently trading higher today and is at $72.08 with WTI also trading upwards at $68.28 currently.
- Cocoa prices have jumped almost 5% higher today after yesterday’s gains, and hit a new high over 6200, and is currently trading at 6252 pounds per ton.
- Coffee prices are trading upwards, almost 3% up on the day and is at $2.64 currently
(All prices quoted at 09H00 – Central African Time)
Other News in Africa Today
Uganda Suppressing Government Criticism: Ugandan authorities are cracking down on any criticism of state officials and have detained two men who have been charged with “hate speech” for comments made on TikTok, that allegedly insulted Ugandan president Yoweri Museveni and his family. The accused, David Ssengozi, and Isaiah Ssekagiri, appeared in court yesterday and have been remanded in custody at the Kigo Prison until November 13 for an initial court hearing. Prosecutors claim the content they shared on TikTok was intended to “ridicule, degrade, demean, and promote hostility” toward the first family and others linked to the NRM. In September, a police spokesperson cautioned the public against “abusing” the president, calling it an offense. This follows another similar case in July, when a 24-year-old was sentenced to six years in prison for a TikTok video critical of the president and his family. Uganda’s approach to internet freedom and freedom of expression has been brought into question.
Jailed Journalist Honoured: Dawit Isaak, a journalist from Eritrea has been recognised with an award for his courage and his commitment to fight for freedom of expression. Isaak was detained in 2001 and has been held in an Eritrean prison without trial for a shocking 23 years. He has been awarded the Edelstam Prize, a Swedish human rights prize in recognition of the severe penalty and sacrifice he has made to protect civil freedoms in Eritrea. Dawit, who holds dual Eritrean-Swedish citizenship, was one of the founders of Setit, Eritrea’s first independent newspaper. He was detained in 2001 after his paper published letters demanding democratic reforms. The country has had a poor human rights record with the US State Department 2023 report on human rights indicating that there are significant human rights issues included credible reports of enforced disappearance, torture or cruel, inhuman, or degrading treatment or punishment by the government, arbitrary arrest or detention, as well as serious problems with the independence of the judiciary.