Elon Musk super-merger on the cards, and BEE’s missing billions

It is a busy week ahead for international and local markets, with several companies set to release results on the JSE, Wall Street, and in Europe. 

Leading the wave of releases globally is Meta, which is expected to deliver revenue of $63.3 billion on growth of 23.5% for the third quarter of 2026. 

Meta CEO Mark Zuckerberg and other executives will outline the company’s participation in the AI boom, providing a vital health check for investors. 

Zuckerberg is also likely to touch on the rapid growth of Meta’s viral Muse bot. 

Elon Musk will reveal Tesla’s third-quarter performance in the coming week, too, with analysts estimating revenue of $27.7 billion on flat growth. 

Adjusted earnings per share at the carmaker are expected to fall 15.1% as management prioritises long-term growth opportunities over short-term profitability. 

In Europe, food processing giant Nestle will release its third quarter results, with consensus estimates putting revenue at CHF22.4 billion, up 3.7% year-on-year. 

Nestle has come under pressure amid rising input costs thanks to major oil supply disruptions, but management remains confident about the underlying demand for its products, which include KitKat, Nespresso, and Milo. 

Locally, investors are in for a busy week led by production reports from top mining companies, including Anglo American, BHP, and Kumba Iron Ore. 

These are generally expected to be positive, with commodity prices remaining elevated compared to a year earlier. 

Clicks will lead local releases, with the retailer expecting a resilient performance for the 2026 financial year. 

Analyst consensus points to revenue of R51.4 billion, up 7.5% year-on-year, and adjusted earnings per share of R14.42, up 5.9%. 

Steers-owner Famous Brands will release its interim results for the first six months of its 2027 financial year. 

Elevated fuel costs, higher interest rates and an impairment from its Botswana business will impact results. Consensus is for revenue of R9.2 billion, up 5.2% year-on-year. 

Standard Bank will release its nine-month financial metrics, with the bank’s growth slowing from the beginning of the year amid geopolitical turmoil.

Its full-year guidance remains intact, with adjusted earnings per share of R17.82, up 15.4% year-on-year, expected. 

Important finance and investment news

Wall Street’s golden goose under threat: Until last month, the hot-running economy and AI financing boom were fueling ever-rising activity for both bond and stock traders. But weak bond markets are now undermining what was a major strength for big banks. [Wall Street Journal] 

Elon Musk super-merger on the cards: Rumours are growing that Tesla and SpaceX will merge to create one company with all of Elon Musk’s scattered business interests. This would tap into the vital scale needed to develop AI capabilities and make it easier for investors to back ‘Elon Inc.’. [Yahoo Finance] 

From R1 million to R200 billion: Shoprite is celebrating its 40th anniversary on the JSE, with the once-tiny retailer now being a blue-chip stock. The company is valued at R194 billion and is the largest private employer in South Africa, with 174,000 staff members. [BusinessDay]

BEE’s missing R742 billion: South African Black-owned businesses face a funding shortfall of $45 billion, a new report shows, despite three decades of BEE policy. The policy framework has come under increasing pressure as it becomes synonymous with corruption and cronyism. [Semafor]

Bad news for petrol and diesel prices: Brent touched $110 a barrel for the first time since May on Friday on worries that escalating ‌tensions in the Middle East could further tighten supplies, while investors assessed how much diesel Russia could supply to the global market. [Reuters]