Unused mobile data battle heads to court, and trouble for Nike
The rand was trading at R16.66 against the United States dollar on the morning of Saturday, 2 October, after weakening sharply earlier in the week as US bond yields climbed and the dollar strengthened.
The JSE also remained under pressure, with the All Share Index down 0.69% and the Top 40 falling 0.61% in the latest session.
The declines came as global markets adjusted to higher interest rates, rising oil prices and renewed concerns about inflation.
The US 10-year Treasury yield touched 5.34%, its highest level since April 2002, while the 30-year yield reached around 5.67%.
Higher US yields have increased the cost of capital across global markets and supported demand for the dollar.
On Wall Street, the S&P 500, Nasdaq Composite and Dow Jones all closed higher on Thursday, with the major indexes remaining close to record highs.
However, the strength was concentrated in technology and semiconductor shares, while smaller companies and more rate-sensitive sectors remained under pressure.
European markets were weaker, with the Euro Stoxx 50 falling around 0.80% and Germany’s DAX slipping 0.95%.
The FTSE 100 fell 1.54%, as higher UK bond yields, rising energy costs and broader risk aversion weighed on shares.
Asian markets remained mixed as investors continued to assess the impact of higher global borrowing costs.
South Korea’s KOSPI had one of its weakest quarters since the pandemic, falling almost 20% in the third quarter as semiconductor shares surrendered some of their earlier gains.
Turning to commodities, Brent crude returned above $100 per barrel after rising around 3%.
The increase followed China’s suspension of fuel exports in October, while ongoing uncertainty over Middle East tensions and shipping through the Strait of Hormuz added to concerns about supply.
Higher oil prices are increasing inflationary pressures and making it more difficult for central banks to consider lowering interest rates.
Gold was trading at around $4,189 per ounce, remaining under pressure from the stronger dollar and higher US bond yields.
The US Dollar Index was trading near 101.72, close to its 52-week high, as higher Treasury yields continued to attract capital towards the dollar. The euro was trading around $1.13, while sterling was around $1.33 against the dollar.
In South Africa, the 10-year government bond yield moved above 9%, due to both the global bond sell-off and domestic inflation concerns.
The South African Reserve Bank raised the repo rate by 25 basis points to 7.25% on 23 September, citing higher fuel prices, global rates and upside risks to inflation.
Important finance and investing news
Unused mobile data battle: South Africa’s battle over expensive mobile data is heading to court, with Vodacom and MTN challenging ICASA’s tightened regulations aimed at protecting consumers from losing unused data and unexpected out-of-bundle charges.
The regulator said the amendments could come into effect early next year, but the litigation has put the spotlight on the future of data affordability and consumer protection. [SABC]
Trouble for Nike: Nike is intensifying its restructuring efforts under CEO Elliott Hill as its struggles in China continue. The company announced a plan to cut more jobs and reorganise its global business divisions after projecting a surprisingly significant decline in full-year revenue. [Reuters]
Power outages continue: City Power has withdrawn its technical teams from Kliptown, Soweto, due to unsafe conditions from protests and intimidation. As a result, electricity restoration, including in Pimville Zone 9, will be delayed until it is safe for teams to return. [EWN]
The utility is now warning that electricity restoration will be delayed until its teams can safely return.
Pimville Zone 9 in Soweto is also one of the places that have been affected.
Elon Musk’s $61 billion payday: Elon Musk’s net worth rose by $61 billion on Friday, driven by a surge in SpaceX and Tesla shares. As of 2:15 p.m., his fortune was estimated at $979.7 billion, a 6.64% increase from Thursday, according to Forbes. [Yahoo Finance]
Disney cutting jobs: Walt Disney is set to cut hundreds of jobs as part of a restructuring of its television operations, continuing a trend of job cuts. [Bloomberg]
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