Business & Tech News
Open AI Advances:
Open AI’s latest AI LLM, version O3, is taking the possibilities of what artificial intelligence can achieve to a new level. The new AI system provides enhanced reasoning, problem-solving, and safety, taking a big step forward from its predecessor, O1, that was launched only three months ago. The AI incorporates new features such as deliberative alignment, so O3 ensures safer and more reliable outputs by reasoning explicitly before responding. The result is a smarter, faster, and more capable AI that’s likely to redefine industries and enhance Artificial intelligence processes. Key Highlights include: enhanced problem solving and advanced AI. IQ increases. Early Access is being provided for researchers, who can apply for early testing until January 10, 2025.
Morocco sees Positive Economic Growth:
Morocco’s GDP saw a significant growth of 4.3% year-on-year in Q3 2024, an increase from 2.4% expansion in Q2. This marks the strongest annual economic growth since Q4 2021, driven by an increase in domestic sales and comes against the backdrop of tightly controlled inflation. Household consumption grew by 3.9%, along with government spending expanding by +3.8%, and with fixed investment growing by +13.5%. Export of goods and services grew by +9.8%, however this was less than imports for the period that grew by +12.9% year-on-year. On the production side, output expanded for non-agricultural sectors by +5.1%, with the mining sector growing by an impressive +15.9%, followed by the manufacturing sector by+7.5%, and construction sector grew by +6.9%. Agricultural output shrank by -5.2%.
Oil sees Higher Demand and Prices:
WTI crude oil futures saw an upwards trend this morning, breeching the key $72 per barrel level in early trade on Thursday (2 Jan). This follows the release of an industry report indicating lower than expected US crude inventories. API data showed a 1.4-million-barrel decline in US crude stocks for the week ending December 27th, indicating higher demand. If confirmed by official data today, it would mark a third consecutive weekly drawdown on inventories. Investors are also eyeing a recovery in China’s economy that would be accompanied by higher fuel demand after President Xi Jinping’s pledge last Tuesday to implement more proactive policies to promote growth. This comes after an official survey suggested that policy stimulus is starting to improve some sectors in the world’s largest crude importer.
Gold Gains Traction:
Gold futures rose above $2,630 per ounce on Thursday, extending gains over last week, after seeing a 27% growth in price last year. 2024 was the yellow metal’s best performance since 2010. The surge has been fuelled by US monetary easing, ongoing geopolitical tensions, and recent, significant central bank purchases. Investors are now seeking fresh catalysts that could impact the Federal Reserve’s monetary policy this year, after Chair Jerome Powell recently expressed caution over further rate cuts due to renewed inflation concerns. This hawkish signal dampens the appeal of non-yielding gold to investors. Additionally, traders are weighing China’s push for economic recovery. Meanwhile, a World Gold Council survey suggests that major central banks are likely to purchase more gold in the next 12 months, which is likely to create further support demand.
Market News
Currencies:
The US Dollar is currently trading flat at 1.037,13 against the Euro, at 1.253,72 against the Pound, and at 157.04 against the Yen. The Rand is currently trading lower against the US Dollar, with the currency currently trading at R18.82.
Commodities:
- Gold has gained positive traction above the $2600 mark, with the price currently at $2,632 per ounce.
- Platinum prices have clawed back some ground and is above the $900 mark, and is currently trading at $900.10, while Palladium prices have also gained some strength and currently trading at $897.00
- Brent crude is currently trading upwards at $74.88 currently with WTI also trading upwards at $71.98 currently.
- Cocoa futures have continued to grow over the $11000 mark, with prices currently at $11 545.59 per ton.
- Coffee prices have stabilised and is at $3.20.83 per pound currently.
Crypto Currencies:
- Bitcoin has seen some upward direction in prices, and is currently trading at $94973
- Ether prices have dropped slightly this morning and is trading at $3382.60 currently
(All prices quoted at approximately 06H30 – Central African Time)
Other News in Africa Today
Kenyan President Comments on Illegal Capture of Critics:
President William Ruto has in his new-year’s address, for the first time publicly acknowledged the abuse of power by Kenya’s security forces, following a wave of controversial kidnappings that have sparked widespread protests in the country. Ruto admitted that there had been “instances of excessive and extrajudicial actions” taken by security personnel but did not provide any details. His comments come after youth-led demonstrations over alleged abductions by security forces, particularly after the violent repression of protests in June and July.
These protests, aimed at addressing growing concerns over disappearances, were met extreme force, including tear gas and mass detentions. “That said, it is crucial to remember that every freedom has its limits, and public safety and order must always supersede the desire for unchecked liberty,” Ruto stated. The latest disappearances predominantly involve young individuals critical of Ruto, including two who shared a controversial AI-generated image of the president lying in a coffin. In his address, Ruto linked these incidents to the rise in digital manipulation, including harmful social media activity. “These are clear signals that our moral fabric is at risk of decay,” Ruto remarked.
French Troops to be Removed from Ivory Coast:
In the latest indication of Africa removing Western Nation Military influence, Ivory Coast announced that French troops are to be withdrawn from the country after a decades of French military presence. Ivorian President Alassane Ouattara stated that the withdrawal would take effect starting this month. France has approximately 600 troops stationed in Ivory Coast. “We have decided on the concerted and organized withdrawal of French forces in Ivory Coast,” he said, adding that the military infantry battalion of Port Bouét that is run by the French army will be subsequently be handed over to Ivorian military control. The announcement follows that of other leaders across West Africa, where French military forces are being asked to leave. Analysts have described the requests for French troops to leave Africa as part of the wider structural transformation in the region’s engagement with Paris.
