Business News Today
Vodacom -Massiv Deal Finalised
Vodacom can finally move ahead with the acquisition of a 30% co-controlling stake in Maziv, the holding company that houses Vumatel and Dark Fibre Africa. This after the transaction now has received approval from communications regulator ICASA. For Vodacom, the transaction marks a key strategic move with the operator now sitting directly inside South Africa’s largest fibre network group. There are significant advantages for South Africa’s largest telco, with fibre is now the key market lead in the home broadband and business connectivity market. Maziv’s network reach gives Vodacom deeper integration opportunities. With Vodacom now entrenched in both mobile and fibre infrastructure, consolidation pressure on the rest of the sector is likely to intensify.
South Africa US Relationship Crumbles Further
In an announcement made yesterday US President Donald Trump said that he would not be inviting South Africa to participate in next year’s G-20 summit in Miami and that he planned to “stop all payments and subsidies” to the country, as relations between Washington and Pretoria reach an all-time-low. The US is South Africa’s second largest trading partner, however politically there has been a misalignment for some time. “South Africa will NOT be receiving an invitation to the 2026 G20, which will be hosted in the Great City of Miami, Florida next year,” Trump said. “South Africa has demonstrated to the World they are not a country worthy of Membership anywhere, and we are going to stop all payments and subsidies to them, effective immediately” Trump said.
The US boycotted the G-20 meeting over the weekend in South Africa and sent a diplomatic note warning Pretoria against adopting a leaders’ declaration. The South Africans also rejected a US request for Marc Dillard, the chargé d’affaires in South Africa, to attend the leaders’ summit and receive the ceremonial G-20 handover, saying Ramaphosa would not engage with a lower-ranking official.
Spar Impairments Grow While the Group Restructures
The ongoing concerns about one of Southern Africa’s major retail group continues with their latest trading updates providing a bleak picture. Impairments coming from the group’s withdrawal from Poland, Switzerland and now the UK as well as their SAP distribution nightmare in KZN have now hit an eye-watering R7.5 billion. The group CEO, Angelo Swartz has said the group would now focus primarily on their Southern African operations but would retain the operations in Ireland for now. The Share price has dropped by 28.81% so far this year and is down almost 45% in the last five years. With Walmart now entering the Southern African market, there will be testing times for the group ahead.
Breaking News Shorts:
- US Fed Rate cut next week seems likely with banking majorJPMorgan’s refreshed view on the potential for a FED rate cut now aligning with the market perspective of analysts and traders, who are currently pricing in an 80% chance that the Fed will ease policy by a quarter-point next week. This is up from less than 30% a week ago.
- Multiple London local councils are responding to an ongoing cyberattack, prompting officials to shut down their networks and phone lines and activate emergency plans.The local government authorities covering the towns of Kensington and Chelsea and Westminster, which have a shared IT system, said their focus was “on protecting systems and data, restoring systems, and maintaining critical services to the public.
- The International Monetary Fund and Sierra Leone have reached a staff-level agreement on the first and second reviews of the country’s Extended Credit Facility, unlocking approximately $78.8 million in financing, the IMF said yesterday.
- Ghana’s central bank cut its main interest rate by 350 basis points to 18.0% yesterday, based on an improved economic outlook and expectations for further declines in consumer inflation.Economists had forecast a 250 basis points cut after a record 350 basis point reduction to 21.5% at the previous monetary policy committee meeting
Markets by Numbers
Currency markets indicate the US dollar losing ground today, with the Euro trading against the US dollar at 1.16028 while the Pound is trading at 1.32595 to the US dollar. The Yen is currently trading at 155.92 to the dollar. The rand (ZAR) is currently at R17.12 to the US dollar.
Commodities:
- Gold futures have dropped by around -0.40% today, and are currently trading around $4146.22 per ounce.
- Copper prices are trending slightly lower today, with prices currently around $5.0949
- Silver futures prices are lower by -0.88% this morning, and currently trading around $5.2885
- Platinum futures have gained over 1.73% this morning, and currently trading at $1684.90, While Palladium prices are -0.25% lower this morning and are currently trading around $1420.50 per ounce.
- Brent crude oil prices are trending downwards today, and currently at $62.80 with WTI trading at $58.38
- Cocoa futures are back above the $5000 mark, up 1.5% this morning, and currently trading around $5068.32. per ton.
- Coffee futures have dipped by over 0.6% this morning, and are currently trading at around $4.1160 per pound
Crypto Currencies:
- Bitcoin prices are up over 1.5% today, and trading at around $90964 per coin currently
- Ether prices are trending slightly lower today, and are currently trading around $3023.37
- $Trumpcoin are trending lower today, and currently trading around $6.243
(All prices quoted at approximately 08H45 Central African Time)
Africa News Briefs:
- Guinea-Bissau has become the latest African state to be controlled by its Military forces with senior military officers claiming to have taken “total control” of Guinea-Bissau in a potential coup, as the country awaits the results of a disputed national election, where both contenders claim to have won.Incumbent president, Umaro Sissoco Embaló, has reportedly been taken into custody alongside the Armed Forces Chief of Staff, General Biague Na Ntan, and his deputy, General Mamadou Touré, as well as Interior Minister Botché Candé, who were arrested at the same time.The officers said they had suspended the electoral process and closed the borders, in a statement read at the headquarters of the army general staff and broadcast on state television. Earlier in the day, gunshots were heard near the presidential palace in Guinea-Bissau’s capital. Roads leading to the palace were closed off, with checkpoints manned by heavily armed and masked soldiers.
- Kenya says it will appeal against a regional court ruling that halted a trade deal with the European Union, Trade Minister Lee Kinyanjui said yesterday, adding the ruling imperils $1.56 billion worth of annual exports to the EU. The Tanzania-based East Africa Court of Justice suspended the implementation of the deal on Monday, Kinyanjui said, pending the outcome of a case brought by a non-governmental organisation challenging it.
