Business & Tech News
Expropriation Bill Shuts Down US Funding to South Africa
The South African (SA) currency the Rand (ZAR) has fallen by around 2% to 19.01 per USD after US President Donald Trump announced that the US would halt all aid to the country. Trump has accused the SA government of unfair land confiscation and discriminatory policies that are targeting certain groups of citizens. In addition, the Trump administration imposed tariff hikes on several imports, stoking concerns over global trade tensions. These developments weighed on emerging market currencies, including the rand, as investors shifted toward safer assets amid heightened uncertainty.
SA benefits from the AGOA trade tariff arrangement with the US that allows for beneficial tariff reductions on certain imported goods from the country. America is also currently the country’s second largest trading partner. South Africa’s government has downplayed the impact of the aid cuts, reaffirming its commitment to land reforms while seeking to reassure investors about policy stability. Meanwhile, traders also monitored renewed power outages that took place again after months of improvements, a persistent challenge that has contributed to the country’s sluggish economic growth in recent years.
Apple AI Stall Costs Sales
Apple has released its iPhone sales for December indicating that they did not hit expectations. The iPhone sales were down around 1% for the last quarter of 2024 compared to that seen in December 2023. The drop, indicating a poorly timed AI upgrade by the Tech giant, that was only was released late in October in the US and still not available in other markets. This was an effort to catch up to the rest of Big Tech in the race to bring artificial intelligence to the masses. The countries still awaiting Apple’s AI suite include China, a key sales market where the company continued to lose ground to new AI driven models such as Huawei. Apple CEO Tim Cook told investors on a conference call that a software upgrade enabling the AI features in more European markets, as well as Japan and Korea will be rolling out in April.
Italian Ban on DeepSeek
Italy’s national data protection authority, has issued a ban and blocked access to the Chinese AI application DeepSeek, in what they say is a move to protect users’ data. The Authority, named Garante, also announced they would be launching an investigation into the companies behind the AI chatbot. Garante, has expressed dissatisfaction with DeepSeek’s response to its initial query about what personal data is collected, where it is stored and how users are notified. “Contrary to the authority’s findings, the companies involved with the AI development issued a statement saying that as they do not operate in Italy, the European legislation does not apply to them.
They also commented that the DeepSeek app had been downloaded by millions of people around the globe in just a few days. DeepSeek’s new chatbot has raised the stakes in the AI technology race, rattling markets and catching up with American generative AI leaders at a fraction of the cost. The launch initially, heavily hit AI chip maker Nvidia’s stock price that did recover somewhat but is still -13% down from its level a month ago.
Bitcoin Bubble Bursts
Bitcoin, the largest global crypto currency, has been bullishly trading at higher levels and had stabilized over the key $100,000 level last week, has fallen by as much as -6% in trade today and is moving closer to the $91,000 level this morning. The Crypto currency hit a three-week low sparked in part byas fresh US tariffs sparked fears of a global trade war, leading to a broad selloff in risk assets. Over the weekend, US President Donald Trump imposed 25% tariffs on goods from Mexico and Canada, along with a 10% levy on imports from China, triggering retaliatory measures from the affected countries.
Markets are now factoring in heightened risks of global trade disruptions, weaker economic growth, and resurgent inflation, alongside the possibility of fewer interest rate cuts by the US Federal Reserve. Bitcoin and other cryptocurrencies are particularly vulnerable given the high levels of leverage in the sector, which could amplify any selloff. Additionally, the Trump administration has yet to deliver on promises to implement concrete measures that would benefit the cryptocurrency industry, further adding to market uncertainty.
Market News
Currencies:
The US Dollar is currently trading upwards at 1.02495 against the Euro, at 1.22916 against the Pound, and at 155.41 Yen to the dollar currently. The rand is currently trading slightly up from its early trade today that saw the currency hit R19.01 and is currently at R18.96 to the dollar.
Commodities:
- Gold prices have maintained its upper levels and is slightly softer this morning, with the price currently at $2,784 per ounce. Copper is trading downwards and over -1,5% down today and currently trading at 4.1943, while Silver is trading -0,7% lower and trending downwards this morning at 31.061
- Platinum prices have maintained its level above the $1000 level but is over 1% down today and is currently trading at $1016.50, while Palladium prices have also gained upward momentum over the weekend above the $1000 level, but is slightly softer today and currently at $1054.50
- Oil prices are trading upwards this morning, with Brent oil currently trading at $76.42 currently with WTI also trading upwards at $73.95 currently.
- Cocoa futures have been trading lower this morning with prices currently at $10 990 per ton.
- Coffee prices continue their upwards trajectory, and at $377.85 currently.
Crypto Currencies:
- Bitcoin has dropped significantly below the $100 000 mark, and is currently trading at $94188, and over -3% down today.
- Ether prices are currently taking a pounding, down over -11% today and -20% for the week. The crypto is trading at $2518 currently.
- $Trumpcoin is currently trading lower by around -10% from yesterday at $20.91
(All prices quoted at approximately 09H00 – Central African Time)
Other News in Africa Today
Sudan Shelling Shocker Leaves Hundreds dead or Injured:
A busy Market in the heart of Sudan’s major city of Omdurman, was hit by an artillery bombardment on Saturdy leaving over 100 people dead and has filled a mortuary with bodies, according to the medical charity, Doctors Without Borders (MSF). They and local authorities claimed that paramilitary group, Rapid Support Forces (RSF), were responsible for Saturday’s attack. A claim since denied by the RSF. Many of the dead and injured were women and children, the Sudanese Doctors’ Union stated.
The RSF and Sudan’s army have been locked in a deadly civil war that, over the past two years, has seen tens of thousands killed and has also created what the UN describes as one of the world’s worst humanitarian disasters. Eyewitnesses told the AFP news agency that Saturday’s artillery shelling had come from western Omdurman, where the RSF remains in control. Chris Lockyear, general secretary of MSF said that the shelling caused “utter carnage” at the nearby Al Nao hospital, which was overwhelmed with injured patients.
DRC Assault Leaves Goma in Tatters
The attacks by the M23 Rebel group in eastern DRC last week, has left around 800 people dead. The Rwanda backed rebels captured the city, with 13 South African troops amongst the dead from the fighting. I what has been described as a major escalation of a decade-long conflict, indicated the weakened Congolese military capabilities, however the rebels’ advance into other areas was reportedly slowed by the DRC national military that recovered some villages from the rebel forces. Authorities confirmed that 773 bodies and 2,880 injured persons were admitted into Goma’s morgues and hospitals.
Congolese government spokesman Patrick Muyaya told a briefing in Kinshasa, that the death toll could be higher. “These figures remain provisional because the rebels asked the population to clean the streets of Goma. There should be mass graves and the Rwandans took care to evacuate theirs,” said Muyaya. Hundreds of Goma residents were returning to the city on Saturday after the rebels promised to restore basic services including water and power supply.