Ellison walks back $7.5 billion plan, and Pretoria’s R4.5 billion revival

The rand experienced much turbulence over the past week, beginning on Monday at under R16 to the dollar and ending the week at R16.12/$.

Like other risk-sensitive currencies, the rand’s performance has been driven by global market sentiment alongside domestic developments.

Particularly, the ongoing US-Iran war has placed much pressure on the rand as energy prices rise and the dollar continues to strengthen.

In addition, data from Stats SA released on Tuesday showed South Africa’s economy contracted for the first time in nearly two years by 0.2%.

The country’s mining output declined by 7.5% year-on-year in July, far exceeding expectations of a 2.8% decrease.

Meanwhile, South Africa’s manufacturing output rose 1.1% against expectations of a 1.6% slip.

This was led mainly by increases in the food and beverages and the chemical products sectors.

Oil prices ended the week above $100 per barrel for the first time since mid-May as key shipping routes in the Middle East have come under increasing attack.

Global focus remains on the United States Federal Reserve, which is set to announce its interest rate decision on Wednesday, 16 September.

Expectations for a Fed rate hike have jumped to nearly 90% after US consumer price inflation rose by 3.4% in August.

Important finance and investing news

Ellison walks back $7.5 billion plan: Oracle co-founder Larry Ellison has cancelled a plan to unload 50 million of his shares in the company, which would have been valued at $7.5 billion. This comes a day after Oracle revealed Ellison’s trading plans. [Wall Street Journal]

Pretoria’s R4.5 billion revival: The Department of Public Works and Infrastructure is set to revitalise the Pretoria CBD through a R4.56 billion redevelopment plan that will create 12,700 construction jobs and cover the Telkom Towers as well as two other government buildings. [The Citizen]

Africa’s largest IPO: Dangote Petroleum Refinery is set to list on the Nigerian Stock Exchange in a listing that is expected to value the company at more than $40 billion, the largest IPO for an African company to date. The company plans to spend about $12 billion to double its daily refining capacity. [BusinessDay]

Farage scores second record donation: Nigel Farage’s Reform UK has scored its second £36 million donation in 48 hours as cryptocurrency billionaire Christopher Harborne pledged to match a donation from fellow crypto investor Ben Delo from a day earlier. [Reuters]

R230 million in political donations: The Electoral Commission (IEC) has released its latest political funding report, showing that South Africa’s political parties have declared just over R230 million in private donations for the 2024/25 financial year, with much of it coming from a small pool of wealthy donors. [EWN]