Business & Tech News
South African State of the Nation Address Concerns:
In his first State-of-the Nation, address after the formation of a government of national unity (GNU), South African President Cyril Ramaposa spoke about creating a government that woks for all and one that focusses on building unity and the economy. “All of these things that we speak of are possible, Ramaposa said, “As South Africans, we know the power of cooperation, of what is possible when people of different backgrounds, races, cultures, languages, ethnic groups and religions come together behind a shared objective”. There were many questions, posted on social media, about why there had been little progress in 30 years of ANC rule, towards economic gains in the country and the poor state of many municipalities and basic infrastructure.
Ramaposa also spoke again about the creation of a National Dialogue, saying: “I call on all South Africans, united in our diversity, to come together in the National Dialogue to define a vision for our country for the next 30 years. The National Dialogue must be a place where everyone has a voice. It must be a place to find solutions that make a real difference in people’s lives”. The South African economy has hardly shown any growth over the last two years and has a spiralling unemployment rate due to weak economic progress and high levels of corruption draining funds intended for development.
ArcelorMittal to Proceed with Job Cuts and Planned Closures:
ArcelorMittal CEO Kobus Verster has commented about the overall operating conditions in the South African market that is forcing them to shut their steel longs business. In a video conference announcing their financial results for last year Verster said that high electricity prices, high rail prices and the low level of protection in the market compared to other countries, are all environmental factors making it impossible to run a profitable stell making business. He also commented on the existing tariff discounts provided to scrap metal businesses that are creating an uncompetitive environment. When the company announced it would be closing the business units, there had been discussions with government about assisting them, however he stated that “there’s been no talk of a one-billion-rand government bailout” and he criticised what he called government’s “slow and insufficient response to the crisis in the steel sector”.
The company reported a R5.1-billion headline loss for the financial year ending in December last year, blaming global and local issues. The winding down of the company’s long-steel business has been temporarily delayed amid continuing discussions with government, while the company confirmed it would be going ahead with job cuts.
Positive Amazon Results Released – Forecast Disappoints:
The latest results from global giant Amazon were released yesterday and indicated better-than-expected revenue and profits for the last quarter of 2024, during the main festive season shopping period. However, this did not prevent its share price from dropping over-night on concerns for sales estimates for the first quarter of 2025. The e-commerce and technology company stated that its revenue for Q4 was $187.8 billion, an increase of 10% compared to Q$ 2023, and with a profit of $20 billion declared. Earnings per share were $1.86, up almost 25% on the expected share dividend. Forecast for the current quarter is expected to sit between $151 billion and 155.5 billion, lower than the $158.56 billion that had been forecast by analysts.
Market News
Currencies:
The US Dollar is currently trading slightly stronger at 1.03735 against the Euro, at 1.24207 against the Pound, and softer against the Yen at 151.72 Yen to the dollar currently. The rand has gained over 3% since it hit R19.04 earlier this week, and is currently at R18.46 to the dollar.
Commodities:
- Gold prices are maintaining their hold over the $2860 level, and while it has dropped from its record high this week it is trading steadily at $2,862 currently and up over 2% for the week. Copper is also trading close to highs today, and currently up over 5% for the week and trading at 4.4824 currently. Silver is trading fairly level with over 2% gain in prices this week, and at 32.167 currently.
- Platinum prices are holding above the $1000 level today, and currently trading at $1012, while Palladium prices have dropped below the $1000 mark and currently trading at $985
- Oil prices are trading slightly lower than yesterday and currently at $74.69 currently with WTI also trading lower than yesterday’s close at $70.90 currently.
- Cocoa futures have seen a drastic drop of over 10% with prices currently at $9922 per ton.
- Coffee prices are still moving upwards and have hit a new record high since the 1970’s, of over $400 and currently trading at $403.38 currently. The price increase is being largely driven by an anticipated -4,4% volume in coffee beans in this year’s Brazilian crop.
Crypto Currencies:
- Bitcoin has dropped slightly this morning, and is currently trading at $97247.
- Ether prices continue to make small gains from the losses incurred earlier this week, with the crypto trading at $2703 currently while still over -17% down for the week.
- $Trumpcoin has continued to show some upwards momentum after dropping below $17 and is currently trading at around 5% up for the day at $19.14
(All prices quoted at approximately 08H20 – Central African Time)
Other News in Africa Today
SADC Leaders to Meet This Weekend to Discuss DRC Conflict:
In a new attempt to broker a negotiated peace settlement in the Democratic Republic of Congo, leaders from the Southern African Development Community (SADC) are due to meet at a special joint summit in Tanzania this Saturday. The meeting has been coordinated in conjunction with Several East African heads of states to address the DR Congo conflict crisis.
The President of DR Congo President Félix Tshisekedi and Rwanda’s President Paul Kagame are both expected to attend. The Summit of leaders was hatched at the side of the energy summit held in Tanzania recently here several leaders discussed the possibility of a regional peace negotiation for a situation that has left the eastern region in the DRC devastated. Malawi has also decided to withdraw its peace keeping troops from DRC while Uganda has denied that it is sending additional troops to back the SADC backed peace keeping force. There have been multiple deaths of peace keepers in the DRC when they clashed with the Rwandan backed M23 Rebel forces as they invaded the city of Goma.Meanwhile, the Ugandan military has denied reports it has sent troops to eastern DR Congo because of the fighting in and around Goma.
Political “Lawfare” Rife in Tunisia:
Statements from opposition parties in Tunisa have condemned the ongoing persecution of opposition leaders and journalists who, they say are being silenced. In a judgement given on Wednesday, a judge in Tunisia handed down lengthy sentences to prominent politicians and at least one leading journalist. This type of “lawfare” has become more prevalent in Tunisia with several opposition leaders jailed before last years’ elections. This politically driven move has been criticized by a media union and leading opposition parties as the latest move targeting critics of President Kais Saied.
One of those sentenced, is the83-year-old Rached Ghannouchi, the country’s most prominent opposition leader, who has been in jail for almost two years. Ghannouchi, leader of the Islamist movement Ennahda and Tunisia’s former Assembly Speaker, was sentenced to an additional 22 years in prison for undermining state security. He refused to attend the court hearings. Ennahda has condemned the trial as politically motivated and said the prosecutions were “aimed at revenge, violating basic human rights and freedoms, undermining the rule of law and blatantly politicizing the judiciary.”
