Tesla launches its robotaxi, and the ANC’s unemployment failure

The rand was trading at R15.98 against the US dollar on Friday morning, moving back below the R16/$ level.

The currency strengthened as global risk sentiment improved and investors scaled back expectations of another US Federal Reserve rate hike.

The JSE also rebounded strongly on Thursday, with the All Share Index rising 1.40% and the Top 40 gaining 1.44%.

The positive sentiment coincided with an improvement in South African economic activity. The S&P Global South Africa PMI rose to 50.5 in August, moving back above the 50-point level that separates expansion from contraction.

However, rising oil prices and drought concerns are creating additional inflation risks and increasing expectations of another 25-basis-point rate hike by the South African Reserve Bank.

Global markets also performed strongly. On Wall Street, the Nasdaq gained 1.40%, the Dow Jones rose 1.18%, and the S&P 500 increased 1.06%.

United States rate-hike expectations fell to 50.4%, from 63.2%, amid signs of easing inflation.

In Europe, Germany’s Ifo Institute raised its 2026 GDP growth forecast to 1.4%, from 0.8%, citing stronger fiscal spending and exports.

Asia provided a more mixed picture, with Japanese household spending falling 3.6% year-on-year in July.

This was worse than the 1.6% decline economists expected and marked the eighth consecutive month of contraction.

In commodities, oil remained above $95 per barrel amid escalating US-Iran tensions, heightening concerns about supply disruptions.

Gold was relatively stable, falling 0.11% to $4,467.48 per ounce, while platinum declined 0.99% to $1,809 per ounce.

Important finance and investing news

Tesla’s robotaxi disappoints: Tesla stock dropped 6% on Friday after the company’s launch event for its Cybercab robotaxi disappointed investors. Federal safety regulators have also begun an audit to determine whether the vehicle was properly certified for public roads. [Yahoo Finance]

The ANC’s employment fumble: Unemployment is a major concern for Thembisa residents, as noted during the ANC election campaign. ANC President Cyril Ramaphosa met with the community on Friday, where they voiced issues such as high electricity prices and increasing rates and taxes. [SABC]

OpenAI rolling out new version of ChatGPT: OpenAI announced it will begin rolling out its latest and most advanced ChatGPT model to select customers, stating that it has implemented safeguards to reduce security risks. [eNCA]

Anthropic going public: Anthropic plans to market its initial public offering by mid-October at the earliest, aiming to complete the listing just before the midterm elections in the United States in November, according to sources familiar with the matter. [Reuters]

Trump’s Venezuela deal: President Donald Trump has described his oil deal with Venezuela, which gives the U.S. control over much of the nation’s crude wealth, as possibly “the greatest deal ever made.” However, industry leaders are concerned that it disrupts ongoing negotiations and excludes them from potential opportunities in Venezuela’s oil sector. [Bloomberg]