Business & Tech News
Defence Tech Start-up, Mach, in Massive Funding Raise:
Defence-tech Start-up, Mach Industries, is reported to be closing on a new $100 million financing deal that is being co-led by new investor Khosla and existing investor Bedrock Capital. The new funding round will set the tech group’s value at the $470 million mark. Mach Industries Founder, 21-year-old Ethan Thornton, dropped out of MIT to found the company while only a teenager. Mach is developing vertical liftoff vehicles and weapons that can work from the edge of space. It is further building smaller factory production units, which can be easily built and distributed when more production is needed. It also announced plans for its first factory, a 115,000-square-foot facility in Huntington Beach, California.
Gold Hits a Retreat Run
Gold traded around $3,250 per ounce on Friday, heading for its worst week in over two months, as signs of easing trade tensions dampened demand for safe-haven assets. China said it is considering the possibility of initiating trade talks with the US, raising hopes of a de-escalation between the two world powers. This followed President Trump’s remarks that trade deals could be made with India, Japan, and South Korea, adding that there’s a “very good chance” of a deal with China. Earlier in the week, Trump signed an executive order to ease some of his tariffs on automobiles and auto parts.
US Curbs De-minimis Parcel Loophole:
A decision by US President Donald Trump to close a tariff loophole for “de minimis” merchandise from mainland China and Hong Kong will kick in as of today. The term “de minimis” indicates “too small to matter” and refers to small packages that are shipped directly to consumers from abroad. Qualifying as de minimis has, until now, come with a huge perk: no customs declarations and no tariffs in many countries, including the US. While each de minimis package is small.
For years, they’ve been shipped in massive quantities to the US by online discount marketplaces such as Shein and Temu. De minimis packages from places other than mainland China and Hong Kong are poised to lose their tariff exemption too once a system to “expeditiously process and collect” the duties is in place, according to an executive order issued by Trump. Other countries such as South Africa already have an import tariff in place that is charged on these imports from China and elsewhere.
Business, Tech & Market News Shorts:
- Hong Kong Bourse, the HK50 increased to a 4-week high of 22270.00 Index Points. Over the past 4 weeks, the Hong Kong Stock Market Index (HK50) lost -2.69%, and in the last 12 months, it has seen growth of 20.34%.
- Brent crude oil futures extended their upward trend from yesterday, moving toward $63 per barrel in early trade today. This came after hitting a more than four-year low below $60 per barrel on April 30. Friday, supported by optimism over a possible easing of tensions between the US and China, the world’s two largest oil consumers.
- Amazon.com reported disappointing first-quarter cloud revenue growth yesterday, with a forecast for operating income below analyst estimates. The company’s cloud unit numbers indicated a growth of 16.9% in quarterly revenue, to $29.27 billion, missing expectations of 17.4% growth and $30.9 billion in sales. Amazon shares dived by as much as -5% in after-hours trading before recovering some losses to about -1%.
- Shell Oil released its adjusted Q1 earnings this morning, declaring a net profit of $5.58 billion, higher than the average forecast of $4.96 billion provided in an analyst poll. It announced that its share buy-back programme would continue at its current pace over the next three months, to the value of $3.5 billion.
Markets by Numbers
Currencies:
Currency markets indicate the US Dollar has levelled after a two-day rally. It is currently trading against the Euro, at 1.13213, and trading slightly lower against the Pound, at 1.33150. The Yen is currently trading weaker at 145.18 to the dollar. The rand has strengthened against the US dollar, and is trading at R18.42.
Commodities:
- Gold futures prices have dropped this morning to a month-low and are currently moving upwards and trading at $3247 per ounce.
- Copper prices are trending slightly upwards after dropping overnight and are currently at 4.6326.
- Silver futures prices also traded lower overnight but are currently trending upwards at 32.602.
- Platinum futures are flat today, and at $972.50 currently, while Palladium prices are trending upwards and at $944 currently.
- Brent crude oil prices, remaining at month low levels, are at $62.51, with WTI trading at $59.33.
- Cocoa futures have fallen by more than -2% this morning, and are at $8768 per ton.
- Coffee futures prices are trending upwards after an overnight fall and are at $399 currently.
Crypto Currencies:
- Bitcoin prices are trending upwards today and are currently trading at $96742
- Ether prices are trading softer today and at $1832.60 currently.
- $Trumpcoin has dropped by almost -5% today and is currently trading at $12.46
(All prices quoted at approximately 08H50 – Central African Time)
Other Breaking News in Africa Today
US-Sponsored Peace Deal Touted for Congo
According to a report from Reuters, the U.S. is pushing Congo and Rwanda to sign a peace accord at the White House in around two months’ time. The deal is to be aligned with bilateral mineral deals with each country, which is reportedly set to result in billions of dollars of Western investment to the region, President Donald Trump’s senior advisor said yesterday.
Tunisian Protests Flare:
Opposition parties and anti-administration groups took to the streets of Tunis yesterday to protest the growing authoritarian regime of Tunisian President Kais Saied. The groups have accused him of using the judiciary and police to suppress any critics or opposition voices. As a sign of a growing division in the country, Saied’s supporters held a counter-rally. The anti-Saied demonstration, the second such opposition action in a week, reflects growing concerns among human rights groups that the birthplace of the Arab Spring is sliding toward one-man rule, who is using the organs of state to crush any opposition.
