BHP’s $39 Billion Anglo bid excludes South African Assets, causes stir

BHP’s $39 billion bid to buy Anglo American, excluding its South African assets (Kumba Iron Ore and Anglo-American Platinum), was seen as a negative vote on South Africa, causing significant backlash. BHP clarified that the decision is based on portfolio and commodity considerations, not a negative view of South Africa as an investment destination. The bid was rejected by Anglo American’s board for being too low and faced opposition from South Africa’s Mineral Resources and Energy Minister, Gwede Mantashe. BHP maintains that its plan would keep Kumba and Anglo Platinum as independent entities listed on the Johannesburg Stock Exchange, benefiting local operations and communities.

The Johannesburg Stock Exchange and Saudi Tadawul Group collaborate on dual-listing initiatives

The Johannesburg Stock Exchange and Saudi Tadawul Group have signed a memorandum of understanding to create dual-listing opportunities, aimed at enhancing market access and broadening investment options. This partnership aligns with the Johannesburg Stock Exchange’s goal to diversify its investor base and includes initiatives like developing Shari’ah-compliant financial products and exploring shared interests in sectors such as renewable energy and health. The collaboration is set to benefit both South African and Saudi markets by increasing liquidity and facilitating economic ties.

Robusta coffee prices soar to 45-year high amid supply challenges

Robusta coffee prices have hit a 45-year high due to supply shortages, with the International Coffee Organization reporting a 17% increase in April, the highest since 1979. Vietnam, the top robusta producer, has faced poor harvests and challenging weather conditions that threaten future crops. Despite these issues, there’s potential for recovery and the availability of arabica beans may help stabilize prices.

Market moves

Gold prices edged higher amid mixed United States economic signals, recovering from early losses after a weaker-than-expected job report suggested a potential economic slowdown. This has eased fears of prolonged high inflation and sluggish growth, reducing the demand for gold as a safe-haven asset. However, gold has still gained about 12% this year, driven by strong central bank purchases and demand from Asian markets. Spot gold was up 0.3% to $2308.86 an ounce.

Week ahead

Throughout the week, key economic data releases are scheduled. On Tuesday, the Eurozone will reveal Retail Sales, and the United States will disclose Consumer Credit data. Wednesday brings South Africa’s Foreign Reserves report and the United States’ Crude Oil Inventories. Thursday features South Africa’s Manufacturing Production and the Bank of England’s Interest Rate Decision. Finally, Friday sees India’s Industrial Production data and China’s Producer Price Index (PPI) and Consumer Price Index (CPI) reports.