Business & Tech News
Samsung Profits Plunge in Q2:
South Korea’s tech giant, Samsung Electronics has given a trading warning earlier today, indicating that it expects a 56% plunge in its Q2 profit. The company accredits this to low AI chip sales, with investors now having concerns over the likelihood of the company being able to revive its struggling semiconductor business. Samsung blamed the profit miss on U.S. trade restrictions on advanced AI chips for China, but analysts said the decline was also due to delays in supplying high-bandwidth memory (HBM) chips to one of its largest customers- Nvidia. In March, Samsung announced that it had made good progress on the development of its latest HBM 3E 12-layer chip, and expected launch as early as June This year. This however has not been fulfilled and provided no further update on the progress since.
South African Rand Slumps on US Tariff Update:
The South African rand saw a drop of more than -1% against the US dollar, to trade around 17.85 ZAR, its weakest position since June 27. This followed a statement by the US President, threatening a 10% tariff on countries aligning themselves with the BRICS bloc and a confirmation that 30% tariff will be implemented on all goods exported to the US by South Africa. Trump also reiterated previous warnings of imposing tariffs of up to 100% on BRICS nations should they abandon the US dollar in bilateral trade, citing what he described as increasingly anti-American policies.
He further warned other countries against joining the alliance. South Africa was already hit with a 10% tariff and an additional 30% duty on certain imports before a temporary pause for negotiations, and has since requested more time to finalise a trade deal with the Trump administration ahead of the July 9 deadline. The rand has corrected marginally to R17.80. Year-to-date the currency has devalued by -5.5% against the dollar.
Japan Stock Rise Despite Tariff Announcement:
Japan’s Nikkei 225 index rose 0.3% to above 39,700 this morning, with the Topix Index adding 0.1% to 2,815 on. This was a rebound from losses seen yesterday, after US President Donald Trump announced that Japan will face a 25% tariff starting from 1Aug., allowing more time for negotiations. The tariff is lower than the previously threatened rate of up to 35%, easing some investor concerns. Meanwhile, Japanese Prime Minister Shigeru Ishiba signaled a firm stance, stating on Sunday that he will not “easily compromise” in talks with Washington. On the domestic front, data showed Japan’s current account surplus exceeded expectations in May, offering additional support to sentiment. Among the notable gainers were Fujikura (+4%), Furukawa Electric (+5.5%), Recruit Holdings (+2%), Advantest (+1.7%), and Tokyo Electron (+0.8%).
Business, Tech & Market News Shorts:
- Instagram Threads, the mobile app for iOS and Android has seen 127.8% growth of users in the past year with 115.1 million daily active users, according to new data released by Similarweb. This would bring the App user level in closer to the 132 million average daily users on social medial platform X.
- The International Monetary Fund (IMF) has approved a further $367 million credit facility for Ghana after a successful review completed the fourth review under its Extended Credit Facility arrangement with Ghana. This will be the fourth successive disbursement from the IMF. Ghana’s finance ministry posted on X that the country will receive the approved $370 million disbursement from the IMF.
- BP and Shell Oil have reached an agreement with Libya’s National Oil Corp (NOC) to proceed with exploration tests for the development of three potential Libyan oilfields. NOC said in a statement on Monday. Libya, the second-largest oil producer in Africa has had numerous disruptions of its oils supplies due to local military actions by rebel groups wishing to control the oil revenues.
- China has issued a warning to the US, against reigniting trade tensions by reinstating tariffs on Chinese goods next month and threatened retaliation against countries that align with the U.S. to exclude China from supply chains. While a trade framework was agreed to in June which brought an end to the tariff war escalation between the two global giants, much uncertainty still remains.
Markets by Numbers
Currencies:
Currency markets indicate the US Dollar is currently trading flat against the Euro at 1.17364 and against the Pound at 1.36290. The Yen is currently at 146.05 to the dollar, with the rand currently at R17.80 to the US dollar.
Commodities:
- Gold futures prices are trending marginally lower this morning, after gains overnight, and are currently at $3334 per ounce.
- Copper prices are trending slightly higher this morning, and are currently at $4.9799
- Silver futures prices are also trading upwards marginally this morning, and are currently at $36.793
- Platinum futures are trading upwards this morning, and are currently trading at $1369. Palladium prices are also trading higher this morning and currently at $1125,
- Brent crude oil prices are trending lower and currently at $69.27, with WTI trading at $67.26.
- Cocoa futures have gained more than 2,8% this morning and currently at $8179 per ton.
- Coffee futures have found some traction again and currently at $285.00
Crypto Currencies:
- Bitcoin prices are currently at $108091
- Ether prices are currently at $2546
- $Trumpcoin is trading at $8.51
(All prices quoted at approximately 07H20- Central African Time)
Other Breaking News in Africa Today
Growing Unrest in Kenya
There is mounting pressure on Kenyan President Ruto to resign, as his administration continues on a path of authoritarian rule. The human rights abuses by the administration have been highlighted with many political abductions and torture as well as deaths of activists and government critics who have been held in police custody. Yesterday protesters took to the streets once again in the capital Nairobi, in a demonstration of anti-government sentiment. Once again the authorities have responded with deadly force. according to reports, there were at least ten people killed and many injured by security forces who used live ammunition on the demonstrators during the protests.
There were also 567 people arrested, police have said. The state-run Kenya National Commission on Human Rights (KHRC) earlier said at least 10 people had been killed, and it accused police of using excessive force, as has frequently been the case during the current wave of protests. The KHRC also stated that it had evidence that at least two people had been abducted, as well as reporting 29 injuries and 37 arrests in towns across the country.
