Business & Tech News
Gold Steady and Expected to grow – Awaits Fed Decision on Rate Cut:
Gold held steady at the $2650 range for most of yesterday with the American Fed decision on rate cut awaited today and expected to be a 0,25% reduction. Brian Moynihan, the Chair of the Central Bank of America, said yesterday that he believes a rate cut was still necessary and that the overall outlook was positive but that the National debt needed to be reined in soon. Gold has been on an upward trajectory with central banks increasing their holdings across the globe. UBS Group of Switzerland believes that gold prices are heading for the $2900 mark with key global geopolitical uncertainty driving greater demand for the metal.
Tyme for a New African Unicorn to Rise:
Tyme Group, a digital bank led by South African billionaire Patrice Motsepe, has raised $250 million in a new funding round making it one of Africa’s few investment unicorns. The fully digital bank is valued at $1.5 billion after the capital raise, which included a $150 million investment from Nu Holdings Ltd, South America’s highest valued financial company. Nu Holdings’s Nubank is the largest standalone digital bank globally, boasting over 110 million customers across South America. M&G’s Catalyst fund invested $50 million in the raise, with current shareholders investing a further $50 million, Tyme Group said. Its current backers include Tencent Holdings Ltd., Gokongwei Group, and Norrsken22.
Honda and Nissan Talk Partnerships:
Honda and Nissan are believed to have held exploratory discussions around efforts to combine their Electric Vehicle (EV) models that may lead to a potential merger to help them compete against global electric vehicle makers, particularly in China. In March this year, the two car manufacturers had already agreed to explore a strategic partnership for EVs. The companies released statements, which said: “As announced in March of this year, Honda and Nissan are exploring various possibilities for future collaboration, leveraging each other’s strengths.” Nissan has recently released poor trading results and they will be looking to consolidate their strength in the growing EV market.
Market News
Markets:
Indices in the US, all closed in negative territory for the second consecutive session yesterday with the NASDAQ closing down by –0,43%, the S&P 500 was down -0,39% and the Dow Jones closing down by -0,61%.Asian markets this morning have seen Nikkei close down by -0,38% and is at 39223 currently, while the Hang Seng is down by -0,48% and is at 19700 currently.
Currencies:
The US Dollar is currently trading fairly even this morning and is at 1.050 against the Euro, at 1,270 against the Pound, and at 153,44 against the Yen. The Rand value dropped yesterday, with the currency currently trading at R18,08 to the US dollar.
Commodities:
- Gold has remained fairly steady, with the price currently at $2,645.78 per ounce
- Platinum prices have this morning are currently trading at $941.30 and with Palladium prices down over 8% for the week and at $919.00 currently
- Brent crude is currently trading flat and at $73.30 with WTI trading at $70.22 currently.
- Cocoa has seen further gains this morning and is now up over 16% in price this last week and is currently selling at $11,932 per ton.
- Coffee prices are currently at $3.22.61 per pound currently.
Crypto Currencies
- Bitcoin has slipped by 2,43% this morning but is still up over 2% for the week, and is currently trading at $103,691
- Ether has lost some steam and trading at $3838.97 currently
(All prices quoted at approximately 08H20 – Central African Time)
Other News in Africa Today
Apple Accused of Using Illegal Minerals:
Apple, has been accused by the government of Democratic Republic of Congo (DRC), of illegally using what it described as “blood minerals” in its supply chain and has filed a criminal case against its subsidiaries in Belgium and France. The allegations against Apple allegedly include war crimes, laundering, forgery, and deception. Lawyers representing the Congolese government have stated that Apple has bought contraband supplies from the conflict-ravaged eastern DRC and Rwanda. Both areas have illegal mining activities where these minerals are mined, that has become a contentious issue in the region between the DRC and Rwanda in particular. The DRC government claims the minerals were integrated into global supply chains before ending up in the company’s devices. Kinshasa believes this makes Apple complicit in crimes taking place in the east of the country.
The tech giant has confirmed it does not source its primary materials directly, utilises a verification process to determine source. However, the DRC’s lawyers allege Apple units in the two countries deploy deceptive commercial practices to persuade consumers that its supply chains are above board. In a statement yesterday, Apple announced that it had told its suppliers their smelters and refiners must stop buying tin, tantalum, tungsten and gold from the two countries as conflict in the region has escalated.
Mozambican Deadly Storm:
Reports indicate that Cyclone Chido has wreaked havoc in it’s northern regions with a death-toll of at least 34 people and with over 34,000 people currently displaced by the storm. Chido was one of the most intense storms ever recorded in northern Mozambique, according to Mozambique’s National Institute of Risk and Disaster Management (INGD). Cyclone Chido made landfall in Mozambique on Sunday, after also impacting other Indian Ocean Islands. Hundreds are feared dead in Mayotte – a French overseas region where several people, including more than 200 Red Cross volunteers – are currently unaccounted for and appear to be missing. The cyclone had winds of around 260km/h that devastated health facilities, schools and homesas well as destroying local fishing boats. The INGD has called the situation in Mozambique “heart-breaking” and warned that the death toll is likely to rise.
