Business & Tech News
China’s Production Output Grows in December:
China’s NBS Composite PMI Output Index saw an increase of 1.4 points to 52.2 in December 2024 from 50.8 in the previous two months. This is the highest reading since March 2024. The latest result followed a slew of stimulus measures initiated by the Chinese government in September combined with recent interest-rate cuts by the PBoC. The national statistics agency has indicated that overall economic activity had accelerated in December, driven by the third straight month of growth in factory activity and the strongest expansion in nine months for the service sector. In early December, Chinese policymakers had focused efforts on boosting consumption and domestic demand and have set this as their key policy priority for 2025, marking only the second time in at least a decade they’ve taken this action.
Nigerian Oil Refinery Back Online:
Nigerian authorities announced yesterday that it had resumed some operations at its Warri oil refinery after close to a decade of being shut down. Warri oil refinery is one of several long-running failures that have crippled Africa’s largest crude exporter from using its own refined fuels locally leading to a necessity to import the bulk of its refined fuel. The government has made promises that it intends to revive its mothballed refineries which have been hit by years of neglect, damage and mismanagement. Mele Kyari, head of the Nigerian State owned oil company NNPC said at a site tour with journalists and local officials that “This plant is running, we have not completed 100%”.
The 125,000 barrel-per-day (bpd) Warri refinery was shut down in 2015, that was caused by poor maintenance and crude oil shortages, is now running at 60% of total capacity, according to a statement signed by presidential spokesperson Bayo Onanuga. Fuel prices have spiked in Nigeria recently despite the opening of the privately owned Dangote oil refinery earlier in 2024 due to insufficient production and continued reliance on refined fuel imports. The opening of Nigeria’s state owned refineries is seen as a step towards fuel independence.
Cocoa Crop at Risk:
The Ivory Coast, the top cocoa producing nations globally, has seen zero rainfall in the past week in their main cocoa growing regions, according to a statement from local farmers yesterday (30 Dec). They have indicated that the dry weather may damage bean quality and contract supply volumes as of February when the current crop is expected to be harvested. Farmers said there were enough pods on the trees still to be harvested in January, but from February the October-to-March main crop would start to tail off.
Nvidia Concludes Run:ai Buyout:
Chipmaker Nvidia, has announced yesterday that it had completed its full acquisition of Israeli AI firm Run:ai, following antitrust scrutiny over the buyout. The European Commission granted unconditional approval to Nvidia’s $700 million bid for Run:ai, which helps developers optimize infrastructure for AI, earlier in December after saying in October that the deal would require EU antitrust clearance. Run:ai plans to make its software open-source, according to its blog post. “While Run:ai currently supports only Nvidia GPUs, open sourcing the software will enable it to extend its availability to the entire AI ecosystem,” it said.
Market News
Markets:
Indices in the US, all closed in the red yesterday with the NASDAQ closing down -1,28% the S&P 500 down 1,08% and the Dow Jones closing -0,98%lower. Asian markets this morning have seen Nikkei close down on its final day of trading for 2024 at 39984, down -0,96%, while the Hang Seng closed yesterday on 20090, down -0,24%.
Currencies:
The US Dollar is currently trading flat at 1.040 against the Euro, at 1,255 against the Pound, and at 156,22 against the Yen. The Rand is currently trading lower against the US Dollar, with the currency currently trading at R18,79.
Commodities:
- Gold has dropped overnight but has continued holding above the $2600 mark, with the price currently at $2,605 per ounce.
- Platinum prices have been trending lower again this morning, dropping below the $900 mark, and is currently trading at $895.80 and over -9% down for the year, while Palladium prices have dropped further with a total price decrease of over -20% for 2024 and currently trading at $877.00
- Brent crude is currently trading upwards at $74.60 currently with WTI also trading upwards at $71.61 currently.
- Cocoa futures jumped back up over the $11000 mark, after price drops this week, driven by crop reduction forecasts due to lower rainfall, seeing prices currently at $11,240.45 per ton.
- Coffee prices have dropped overnight and is at $3.18.73 per pound currently.
Crypto Currencies
- Bitcoin has remained on a downwards trajectory this week, and is currently trading at $92465
- Ether prices have dropped slightly this morning and is trading at $3337.47 currently
(All prices quoted at approximately 08H00 – Central African Time)
Other News in Africa Today
Kenyans Protest Illegal Abductions of Activists:
Hundreds of angry Kenyan protesters took to the streets of Nairobi yesterday (30 Dec) in an effort to bring an end to multiple abductions that have targeted critics of President William Ruto’s government. Relatives of some of the abducted were in attendance as well as opposition politicians, including Senator Okiya Omtatah and several others who were arrested. Omtatah call for the government to adhere to the rule of law and said that they were there to “call the government to order”. The Kenyan National Commission on Human rights has voiced concerns over a growing number of government critics who are thought to have been abducted. According to the commission, 82 people have been abducted since demonstrations against the government in June.
Several social media activists have disappeared after sharing AI generated images of the president, viewed as offensive by supporters of the government. Rights groups have accused the Kenya’s police force of being responsible, however the police have denied the allegations, and claim to be looking into the disappearances.
Talk of Mozambican Mediation Halts Protests:
The key opposition leader and catalyst behind Mozambique’s months-long protest action, Venancio Mondlane , has announced a five-day suspension of protest action this week, purportedly to allow humanitarians and international bodies a chance to assess the state of human rights in the country. Mondlane announced that a group of former heads of state in southern Africa were apparently interested in mediating an end to the political impasse. Neighbouring South Africa, has had a direct impact from the unrest and had closed the border between the countries several times due to security issues and has investments in the mining, energy and construction sectors in the country.
Greetings From the Business Tech Africa Team:
The Business Tech News Team wishes to thank all our readers for their ongoing support throughout the year and look forward to serving you breaking news again in the new year. The team wishes you a happy, healthy and peaceful 2025.
If you would like to tell us about what news coverage you would like to see in our publication, or have any useful suggestions to make, please feel free to email the editor here: greg.stewart@businesstechafrica.co.za
