Business & Tech News
South African GDP Contracts:
The South African economy contracted by 0.3% in the third Quarter (Q3) 2024, following a revised 0.3% rise in Q2. Four out of ten industries measured registered declines. The primary source of the decline was in agriculture with lower than expected field crops (-28.8%, contributing -0.7 percentage points). Production output also declined in transport, storage & communication (-1.6%); trade, catering & accommodation (-0.4%) and government services (-0.1%). The finance industry was the largest positive contributor, increasing by 1.3% and contributing 0.3 percentage points (pps). On the demand side, changes in inventories negatively impacted 0.5 pps, while government spending contributed -0.1 pps. Meanwhile, household final consumption expenditure increased by 0.5%, and fixed investment grew by 0.3%. Net trade also had a positive contribution of 0.1 percentage point, following declines of -3.7% in exports and -3.9% in imports, respectively. On a yearly basis, the GDP rose by 0.3% in Q3, the same pace as in Q2 against market expectations of a 1.2% growth.
US Markets Hit Record High:
US stock futures have held steady in early trade this morning after the S&P 500 and Nasdaq Composite notched another record close yesterday (3 Dec). In after-hours trading, Salesforce jumped more than 10% after reporting higher-than-expected third quarter revenues. In regular trading on Tuesday, the S&P 500 and Nasdaq Composite rose 0.05% and 0.4%, respectively, while the Dow fell 0.17%. Investors digested stronger-than-expected October Job Openings and Labour Turnover Survey (JOLTS)data, with US job openings rising by 372,000 to 7.74 million, while the quits rate increased to 2.1%, signalling improved worker confidence. Investors will be watching the ADP private payrolls report data due out today and nonfarm payrolls figures due out on Friday for more insights on the labour market. Federal Reserve Chair, Jerome Powell, is also set to speak in New York later today.
Mozambique Production Decrease Concerns:
The Mozambique Producers Managers Index (PMI) fell to 48.4 in November 2024 from 50.2 in October, indicating the first contraction since March 2024. The decline was driven by reduced capacity and weaker demand due to protests and strikes following the general election. New business volumes fell across all sectors, ending a nine-month growth streak. Employment also dropped at the fastest rate since March 2021 as companies sought to control costs, and purchasing activity declined sharply, leading to reduced inventories. Supply chains faced significant disruptions, with delivery times at their longest on record, partly due to border closures with South Africa. Business confidence weakened to a four-year low amid concerns over prolonged political tensions, fiscal pressures, and foreign exchange imbalances.
Tiger Brands Increase in Profits:
The owner of Jungle Oats and Koo baked beans said its headline earnings per share, a key profit measure in South Africa, rose to 1,810 cents in the year ended Sept. 30, from 1,735 cents a year earlier. Tiger Brands, today, released its annual financial statement for the year ending 30 September 2024. The Group posted a 4% rise in annual earnings. as the country’s largest food producer increased prices to offset higher input costs, but they did not see volume growth amid tight consumer spending and inflationary increases in fuel and energy dampening sales. The Group declared a final dividend of 684 cents per share, up 1.9% from last year. Group revenue marginally increased by 1% to 37.7 billion rand ($2 billion), driven by price inflation of 7% and offset by volume declines of 6%, the company said.
Market News
Markets: Indices in the US, showed little momentum yesterday with the NASDAQ closing up by 0.31%, the S&P 500 was up marginally by 0,05% and the Dow Jones closing down marginally by -0,17%.
Asian markets this morning have been trending upwards with the Nikkei up by 0,17% and is at 3915 currently, while the Hang Seng is also up today by 1% and is at 19746.
Currencies: The US Dollar is currently trading at 1.051 against the Euro, at 1,269 against the Pound, and at 149.95 against the Yen. The Rand remains range bound between R18.10 and R18.18 to the dollar in trade this morning, and is currently trading at R18.10 to the US dollar.
Commodities:
- Gold is trading upwards this morning and is currently at $2,648.82 per ounce
- Platinum prices currently trading upwards at $953 and with Palladium prices also higher today and at $987.50 currently
- Brent crude is currently trading slightly higher today and is at $73.84 with WTI also trading lower at $70.18 currently.
- Cocoa prices have dropped by over 7% in early trade this morning and are at 7407 British pounds per ton and looks like it could breech the 8000 level today.
- Coffee prices have gained almost 2% and are trading at $3.03 currently
(All prices quoted at 08H30 – Central African Time)
Other News in Africa Today
Namibia Elects First Female President:
Netumbo Nandi-Ndaitwah of Namibia’s ruling SWAPO party has been elected president and will be the country’s first female leader, according to results released by the country’s electoral commission on Tuesday (3 Dec). The 72-year old, Nandi-Ndaitwah, has been the current vice president in Namibia since 2015. The victory will extend SWAPO’s 34 years in power since Namibian independence in 1990. Nandi-Ndaitwah received 57% of valid votes in the presidential race, with her closest competitor receiving 26%, according to a breakdown given by the Electoral Commission of Namibia. Namibians voted separately for the National Assembly where SWAPO has also won a majority, securing 51 of the 96 elected seats. The IPC won 20 seats and will be the official opposition.
African Artefacts Uncovered in Cambridge Museum:
An estimated 350,000 African artefacts and manuscripts, as well as human remains, photographs and natural history specimens, have been found in the Cambridge University’s historical collections. Dr Eva Namusoke spent 15 months liaising with University of Cambridge librarians, curators and archivists, as well as delving into their stores, to uncover the items. It “is fairly common” for large museums not to display most of their collections, but it was “still surprising to see this scale and diversity from the entire African continent and some there for decades and decades”, she said. The project is the latest in recent work at the university to tackle questions about its museums’ relationship with colonisation and enslavement and reveals the majority of artefacts were acquired during British colonisation.
