Star 2024-10-22

Fresh allegations and ongoing negotiations have thrust BHP into the spotlight once again as it grapples with a complex legal landscape stemming from the disastrous collapse of the Samarco dam in Brazil back in 2015. The dam, operated by Samarco, which is jointly owned by BHP and Vale SA, gave way, unleashing a wave of toxic sludge that claimed the lives of 19 people, displaced thousands, and wreaked havoc on the surrounding environment. In addition to demands for settlement in Brazil, BHP is facing litigation over the collapse of the dam in London, which is complicating its attempts to finalise these agreements. Lawyers representing the affected communities have accused BHP of attempting to avoid responsibility for the catastrophe. “There is a chasm between what BHP regards as acceptable and the…

Prosus CEO Fabricio Bloisi published an update to shareholders covering his first 100 days in his role, and he said there had been continued strong, profitable growth after AI usage was ramped up across the group internet businesses. The letter indicated that Naspers subsidiary, Prosus, was well on its way to its goal outlined in June 2022, to make its e-commerce investments reach profitability by the first half of the 2025 financial year. This is because at that time, investors only valued Prosus and Naspers on their investment in China’s internet giant Tencent, from where the group was deriving most of its income. Bloisi was appointed on May 17 this year and at the time market analysts said a key feature of his tenure was likely to be to bring…

Bank Of America predicts that yellow metal will reach $3000 an ounce by next year As global markets grapple with rising geopolitical tensions and fluctuating economic signals, gold has emerged as a beacon of stability, reaching unprecedented price levels on the back of rising demand. Bank of America predicts that the yellow metal could soar to $3 000 an ounce by next year, following a remarkable 40% increase over the past year, as it traded at just above $2 700 (R47 517) yesterday. However, while many gold miners on the JSE celebrated share price gains yesterday, the situation appears more complicated for South Africa’s miners. Once leaders in global gold output, South African mines have seen production dwindle dramatically over the decades – from 70% of global output in the…

International Monetary Fund (IMF) managing director, Kristalina Georgieva, has remained cautiously optimistic about global growth prospects, urging world economies to maintain the trajectory of easing interest rates yesterday. Speaking at the opening of the week-long 2024 Annual Meetings of the IMF and the World Bank Group in Washington DC yesterday, Georgieva said it was imperative to balance reflection with action. “Amid the difficult backdrop, there are flickers of good news. Global inflation, which surged to unprecedented heights, is now on the decline. This promising trend is largely attributed to decisive monetary policies, reduced supply chain disruptions, and stabilising food and energy prices,” Georgieva said. “Remarkably, this has been achieved without plunging the global economy into recession or massive job losses, a fate many feared during earlier inflation spikes. The labour…

South Africa is currently considering options to manage household energy demand that would penalise those who want to be part of the solution. All this while better, tried-and-tested alternatives are readily available. By now, South Africans are well accustomed to the most extreme form of demand management. Load shedding, which started the better part of two decades ago and was estimated by the CSIR to cost the economy more than R1 trillion in 2023 alone, has (until recently) been necessary to bring electricity demand back into line with available supply. With the veil of load shedding lifted, electricity demand is consistently higher, exposing our ageing and undersized distribution infrastructure. To prevent grid failures, municipalities and Eskom are reducing supply to homes in affected areas with rotational “load reduction” – effectively…

As the race for the White House continues – with the US presidential elections scheduled to take place in less than three weeks’ time – South African investors are reminded that the stakes extend far beyond political leadership, and the global economic ramifications are substantial and far reaching. With US vice president Kamala Harris leading former President Donald Trump in national polls – albeit with razor-thin margins – the potential policy shifts could significantly impact South African investors’ global investment strategies. Several of the latest national polls appear to favour Harris, but some are within the margin of error, reflecting an incredibly tight race. Ultimately, swing states are likely to decide the 2024 presidential election and resulting policy shifts. They outline six key areas for local investors to note as…