The industry that built South Africa is shutting down, and US debt problem is worse than it seems

The rand was trading at R15.98 to the US dollar on the morning of Monday, 7 September 2026, largely unchanged from where it closed the week prior.

The JSE All Share Index ended Friday marginally higher by 0.03%, while the Top 40 Index ended slightly lower, declining by 0.01%.

The Development Bank of Southern Africa has begun feasibility studies into potential South African and Pan-African sovereign wealth funds.

These will explore potential funding sources, including mineral resources, public assets, and pension capital.

Wall Street equities weakened ahead of the weekend, with the Nasdaq down 0.29%, the S&P 500 down 0.38%, and the Dow Jones down 0.51%.

Payrolls increased by 162,000 during the month of August, far above the 50,000 forecast, with revisions adding a further 50,000 jobs in June and July.

Despite an increase in the labour force, US unemployment remained at 4.1%, prompting markets to raise the probability of a 25-basis-point September rate hike to 58.4%.

In Europe, the STOXX 600 ended 0.8% lower on Friday amidst Middle East tensions, higher oil prices and inflation concerns.

Volkswagen surged 5.9% on restructuring approvals, while German industrial orders rose 2.5% month-on-month in July.

Asian markets started Monday strong on resilient global demand, with the Nikkei 225 up 1.26% and the Hang Seng up 1.74%.

South Korean exports reached $709.4 billion, exceeding its 2025 annual record, while Beijing injected $54 billion into its state-owned banks and insurers.

In the commodities market, Brent Crude oil surged past $97 per barrel as tensions between the US and Iran over the Strait of Hormuz intensified.

Meanwhile, gold eased to $4,409.38 as stronger US employment data raised expectations for higher interest rates.

On Monday morning, the rand was trading at R15.98 to the US dollar, R18.55 to the euro, and R21.58 to the British pound.

Important finance and investing news

The industry that built South Africa is shutting down: South Africa’s diamond industry continues to struggle to survive after De Beers announced in July that it would cease production at its Venetia diamond mine near Musina, putting more than 1,200 jobs at risk. [Wall Street Journal]

US debt worse than it seems: US economist Robin Brooks has warned that rising US Treasury yields indicate debt conditions are more dire than they appear, saying US policy is now focused on preventing long-term borrowing costs from rising even further. [Yahoo Finance]

Economic decline on the cards for South Africa: Stats SA is set to release its second-quarter GDP data this week, with economists forecasting stagnation or contraction amid rising fuel costs. This comes after the country experienced growth of just 0.5% during the first three months of 2026. [BusinessDay]

Crusoe raises $3 billion: Cloud-computing provider and data centre developer Crusoe has raised over $3 billion in a funding round that valued the startup at over $30 billion. The company has close working relationships with OpenAI, Microsoft, and Meta. [Bloomberg]

R16 million corruption case in court: Eight municipal officials employed by the Emfuleni Local Municipality are expected to appear in court on Monday amid an investigation into a R16 million fleet tender, as part of a larger inquiry into corruption at the municipality. [eNCA]