ChatGPT agents go rogue, and Tau’s China U-turn

The Reserve Bank’s decision to hike South Africa’s interest rates by 25 basis points was the biggest local market mover this week.

It saw the JSE sell-off continue, coinciding with persistent risk aversion towards emerging-market assets.

The biggest losers this week were mainly miners, notably Mantengu, Northam Platinum, and Shuka Minerals. Trade solutions provider Santova and Blu Label Unlimited also came under pressure.

There were some surprising winners this week, notably Finbond, City Lodge Hotels, and Mpact, which led the top-performing gainers on the JSE.

Given that the results season has died down, there was little major news on the JSE, aside from Balwin’s delisting following its acquisition by a consortium of investors.

Pick n Pay also announced that it has appointed a new CEO, Spencer Son, who will take over from the incumbent Sean Summers at the end of his contract in May 2028.

On Wall Street, investors experienced a volatile week driven by surging Treasury yields and fluctuating oil prices.

The benchmark 10-year US Treasury yield hit a multi-decade high this week, keeping pressure on borrowing costs.

Positively, the Brent crude oil price pulled back late in the week, dropping to $104.32 per barrel, as a potential peace deal over the war in Iran appears to be on the table again.

However, on Saturday, 26 September, it was reported that US President Donald Trump rejected an Iranian proposal to reopen the Strait of Hormuz, which could ruffle markets on Monday.

Asian stock markets also saw a mixed performance over the past week, as the rising US Treasury yields had a ripple effect.

Investors also closely monitored, then digested, the White House Summit between Trump and Chinese President Xi Jinping.

In response, Japan’s Nikkei saw occasional gains while other regional indexes, such as Hong Kong’s Hang Seng, pulled back. 

South Korean markets were also volatile in the face of major chip sector movements.

In the week ahead, South African investors can look forward to Capitec’s interim results, due to be released on Wednesday, 30 September.

Important finance and investing news

Blackstone’s exec exodus: Joseph Baratta, Blackstone’s top private equity executive, has become the latest in a series of senior executives to leave the private investment giant. [Wall Street Journal]

Apple hit with $5.7 billion judgment: A San Diego federal jury found that Apple owes Taction Technology, which sued the tech giant in 2021, $5.7 billion for infringing two of its patents. Apple has vowed to appeal the judgment. [CNBC]

ChatGPT agents go rogue: OpenAI said its agents leaked 53 images from ChatGPT users. The firm said it is working to understand the full scope of the rogue agent activity. [Reuters]

Tau’s last-minute backtrack: Trade Minister Parks Tau backtracked on his plan to enhance quality checks on unregulated Chinese imports. This comes after the plan faced backlash from China. [BusinessDay]

TikTok settles in first teen-harm lawsuit: TikTok-owner ByteDance reached a settlement with the US state of Alabama in a case concerning allegations that the firm designed the platform to addict children and misled consumers about TikTok’s safety. ByteDance is fighting similar claims across the US. [Reuters]