Business & Tech News
Gold Hits Another New High:
Gold climbed above $3290 per ounce in trade this morning, setting a new all-time price record, with heightened uncertainty around US trade policy continuing to support gold’s safe-haven demand, alongside a weaker dollar position. Yesterday, US President Trump called for an investigation into potential tariffs on all critical mineral imports, giving a signal of a firmer stance on trade tariffs that may well influence relations with key suppliers, including China. This development partially dissipates the market stability brought by relief from the recent exclusion of certain tech products from reciprocal tariffs and the indication of possible exemptions for auto parts. Central bank gold buying has continued, adding momentum to the price of gold and future growth prospects. Particularly with continued inflows into gold-backed ETFs adding to the gold demand.
Chip Manufacturer Stock Slump on Regulation Announcement:
Shares in computer chip makers saw a drop-off in prices overnight and this morning in Asia after Nvidia said tighter U.S. government controls on exports of computer chips used for artificial intelligence will cost it an extra $5.5 billion. The company, which announced Monday that it will produce its artificial intelligence supercomputers in the United States for the first time, said the government told it that its H20 integrated circuits and others of the same bandwidth would be subject to the controls for the “indefinite future.”In a regulatory filing, it said the government said the controls addressed risks that the products “may be used in or diverted to, a supercomputer in China.”
Nvidia’s shares fell 6.3% in after-hours trading. Shares in rival chip maker AMD dropped 7.1% after markets closed. Asian technology giants also saw big declines. Testing equipment maker Advantest’s shares fell 6.7% in Tokyo, Disco Corp. lost 7.6% and Taiwan’s TSMC dropped 2.4%.
New Chinese Trade Negotiator Appointed:
China has today, appointed a new trade negotiator in the middle of the current trade war with the US. Beijing announced the appointment of Li Chenggang, who will replace the current head of negotiations, Wang Shouwen, who was involved in negotiating the 2020 trade deal between China and the U.S. There has been a barrage of tariff and counter tariff onslaughts between the two world heavyweight economies with China now facing a 145% tariff on all Chinese exports to the U.S.
Although there had been a general 90-day reprieve from tariffs by the US, China was excluded from this. While China has seen a sudden surge in exports in March above expectations, this is believed to have been driven by a pre-tariff buying spree. Imports of materials in March also saw a big decline indicating that future orders were on the decline, with forecasts indicating an expected slow-down in Chinese manufacturing levels in coming months, as tariffs on U.S. imports from China take effect.
Business News Shorts:
- Xiaomi will not be showcasing its would-be Tesla model Y challenger EV- the upcoming YU7 electric SUV at China’s largest auto show next week, according to Xiaomi’s Vice President Li Xiaoshuang
- According to testimony given by Meta CEO Mark Zuckerberg yesterday, he considered spinning off Instagram in 2018 over concerns about the growing risk of antitrust scrutiny, according to a document shown at the anti-trust trial in Washington Yesterday.
Markets by Numbers
Currencies:
Currency markets are indicating the US Dollar is trading lower against the Euro, currently at 1.1363, and trading lower against the Pound at 1.32810. The Yen is trading upwards and at 142.60 to the dollar currently. The rand has maintained its level below the R19.00 rand to the dollar mark and is trading at R18.87 to the US dollar currently.
Commodities:
- Gold futures prices have gained more than 1,5% this morning and currently heading to break through the $3300 level while currently trading at $3290.
- Copper prices are trending lower as trade concerns lift again and at 4.5732 currently.
- Silver futures prices are trading upwards by 1,43% and trading at 32.895 currently.
- Platinum is trading upwards today and at $956.70 currently, while Palladium prices gained ground yesterday and at $960 currently.
- Brent Crude Oil prices continue to trend upwards and at $65.02 currently, with WTI also trading upwards at $61.72 currently.
- Cocoa futures are currently trading softer today, and at $7991 per ton.
- Coffee futures prices are trending flat and is at $365.81 currently.
Crypto Currencies:
- Bitcoin prices have dropped this morning and currently trading at $83714
- Ether prices currently trading -0,7% lower this morning and at $1575 currently.
- $Trumpcoin is currently trading -1,42% lower this morning and at $7.92 currently
(All prices quoted at approximately 10H30 – Central African Time)
Other Breaking News in Africa Today
South African Reserve Bank Stops Sassa Card Issue
The South African Social Security Agency (SASSA) has confirmed that the South African Reserve Bank (SARB) has suspended the issue of the new social security cards (Black Cards) to pensioners and other grant recipients to Postbank to ensure that the old SASSA gold card remains active and that Postbank must honour all transactions on these cards. There has been an ongoing drama surrounding the new cards, with many people receiving grants still unable to access the new cards in time for the deadline this month. A new deadline for the termination of the SASSA gold card is expected to be issued by the SARB soon. While discussions are underway between SARB and Postbank, the issuance of black cards by Postbank at its sites across the country has been suspended indefinitely.
France in Retaliatory Diplomatic Expulsion of Algerian Diplomats:
France announced yesterday that it was expelling 12 Algerian diplomatic officials after Algeria announced on Monday that it was expelling the same number of French officials from Algeria. In an escalating war of tensions between the two countries, Algeria claimed that its expulsion of the French officials was over the arrest of an Algerian consular official by French authorities regarding a kidnapping case. However, diplomatic relations between the two nations have been in a steady decline for some time. One of the major sticking points was the French support for Morocco’s autonomy plan for Western Sahara — a disputed territory claimed by the pro-independence Polisario Front, which receives support from Algeria.
US Pastor Rescued in South Africa:
Josh Sulivan, a visiting pastor to South Africa, was rescued from his kidnappers late last night in the Eastern Cape region of the country after a shoot-out with security forces that left three people dead. Sullivan was found unharmed in a township in the port of Gqeberha on Tuesday evening – the area where the 45-year-old was kidnapped last week Thursday. According to police statistics, there has been a drastic increase in kidnappings in the country with high ransom demands and an escalation of kidnapping incidents of over 200% in the last decade.
