Business & Tech News
Honda and Nissan Merger Announcement Delayed
Nissan Motor Corporation plans to formally announce the direction of its intended integration with Honda Motor by mid-February 2025, according to a company spokesperson’s statement issued this morning (30 Jan). The initial announcement was to have happened by today. Nissan and Honda, have recently announced joint developments in the EV market and have been in discussions regarding the potential merger of the two Automakers by 2026. This would see a major shift in the Japanese Auto Industry, with growing competition from China disrupting global Auto Manufacturers.
Other well established auto manufacturers are also looking for answers to the Chinese auto growth and pricing. “(The) two companies planned to decide on the direction of the management integration by the end of January, but Integration Preparatory Committee discussions are ongoing,” the spokesperson said. Renault who holds a 36% share in Nissan has stated that it is open to the merger. Nissan this week started cutting staff in a cost saving Exercise that will see thousands of workers globally being retrenched or working fewer shifts.
Chip Sales Down – Forecast:
Intel released its Q4 results yesterday, that showed better that expected numbers, pushing its share price up by 3,8%. However the Tech major’s forecast for the current-quarter revenue are below initial estimates, indicating a slow-down for demand for its data center chips. The new Chinese AI DeepSeek model, announced this week would also have had an impact with them indicating less computational power was required to produce equivalent results to OpenAI. Intel’s shares lost around 60% of its value as it battled to compete with Nvidia’s new gen processing units.
Additionally, Samsung Electronics this morning (30 Jan) cautioned that it was experiencing slow sales of its artificial intelligence chips in the current quarter due to U.S. export restrictions to China, and as it worked towards launching an improved version of its high-end chips. Advanced chips used for AI have been the big growth catalyst in the tech industry, however Samsung has struggled to meet Nvidia’s requirements compared to SK Hynix who are Nvidia’s main supplier of high-bandwidth memory chips.
Gold Glitters and Dollar Strengthens
Gold moved upwards in trade this morning hitting an all-time high and closing in on $2,800 per ounce, as investors looked for safe-haven security in the yellow metal. This was partly driven by US President Trump’s renewed warning of trade tariff implementation against various nations. There are also concerns for trade wars being implemented. Gold’s momentum was further supported by looser monetary policies from major central banks. The ECB cut rates as expected, leaving room for more reductions, while the BoC ended its quantitative tightening, and the Swedish Riksbank delivered rate cuts earlier in the week. The PBoC and RBI also signalled looser policies and higher liquidity.
Meanwhile, US rates remained steady, with no hints of future moves, maintaining expectations for two rate cuts this year causing the dollar to strengthen against several major currencies. The main currency losers in trade this morning are South Korean Won (-0.59%), Turkish Lira (-0.26%), Japanese Yen (-0.13%) and Euro (-0.02%).
Market News
Currencies:
The US Dollar is currently trading upwards at 1.03884 against the Euro, at 1.24196 against the Pound, and at 154.71 Yen to the dollar currently. The rand is currently trading level at R18.56 to the dollar.
Commodities:
- Gold prices have seen strong upward momentum this morning, with the price currently at $2,795 per ounce. Copper is trading level today and currently at 4.2839, while Silver is trading slightly higher from yesterday but is trending downwards this morning at 31.411
- Platinum prices have gained momentum this morning, breaking through the $1000 level and is currently trading at $1014.50, while Palladium prices have also gained upward momentum and currently at $1012.50
- Oil prices continue lower in trade this morning, with Brent oil currently trading at $76.29 currently with WTI also trading downwards at $73.32 currently.
- Cocoa futures have been trading lower this morning with prices currently at $11 088 per ton.
- Coffee prices continue their upwards trajectory, and at $376.28 currently.
Crypto Currencies:
- Bitcoin has maintained its ground above the $100 000 mark, and is currently trading at $104354, but 0,63% down today.
- Ether prices are currently trading at $3246.29 currently.
- $Trumpcoin is currently trading lower by around 2,4% from yesterday at $27.04
(All prices quoted at approximately 08H00 – Central African Time)
Other News in Africa Today
Rwanda and South Africa in Diplomatic Dispute Over DRC:
Previous spats between the African States have now escalated into a full blown diplomatic crises this week after South African after President Cyril Ramaphosa accused the Rwandan-backed M23 rebel group of killing 13 South African peacekeeping troops in eastern region of the Democratic Republic of Congo. South Africa gave a warning that further attacks on its troops would be considered a “declaration of war”. The response from Rwanda’s President Paul Kagame, was equally on the offensive, accusing South Africa of being part of a “belligerent force” involved in “offensive combat operations” to help the Congolese government “fight against its own people”.
South African soldiers were killed in the fighting with the M23 Rebels who had advanced on and seized the key city of Goma, near to the border with Rwanda. The leader of the M23 fighters, Corneille Nangaa has in the meantime, vowed to continue the offensive all the way to the capital, Kinshasa, saying that their ultimate aim was to topple President Félix Tshisekedi’s government.
Zuma in Court Over Terrorism Charges:
Duduzile Zuma-Sambudla, The daughter of former South African president Jacob Zuma, appeared in court yesterday on charges of terrorism, regarding her alleged involvement in the deadly riots that took place in South Africa in 2021 that left over 300 people dead. The riots were sparked after Jacob Zuma was jailed and after inflammatory and inciting social media posts were shared by Duduzile Zuma-Sambudla on social media. The arrests and court appearance has followed a long investigation that often seemed as if it was heading nowhere.
The violent riots were intense and severely disruptive, starting in the provincial capital of Durban and spread across most centres of South Africa, with numerous businesses destroyed and the sad loss of lives. Zuma-Sambudla handed herself in to Durban Central police station on Thursday morning to face charges under the Protection of Constitutional Democracy against Terrorist and Related Activities Act and incitement to commit violence, police said.National Prosecuting Authority (NPA) spokesperson Mthunzi Mhaga said the investigation had taken such a long time because the case was “complex” and “unique”.