Latest news with #Investec
IOL News
19 hours ago
- Business
- IOL News
South Africa's mining production sees slight increase despite US tariffs on other goods
Manganese ore recorded the largest negative contribution to the overall performance, followed by coal. Copper also declined over the period and platinum group metals gained a marginal 2.1%. Image: Pixabay South Africa's mining production increased by a mere 0.2% in May year-on-year, according to Statistics South Africa's mining production and Sales report. Manganese ore recorded the largest negative contribution to the overall performance, followed by coal. Copper also declined over the period and platinum group metals gained a marginal 2.1%. Some commodities recorded increases. Gold output rose year-on-year, while iron ore and chromium ore also showed gains. These improvements were not sufficient to offset the declines in other key sectors. Earlier this month, US President Donald Trump slapped South Africa with 30% tariffs on goods exported to America, based on an alleged trade imbalance, excluding precious metals. Gold, silver, platinum, and palladium are used in high-technology and electronics manufacturing and are found in components such as processors, circuit boards, connectors, and memory systems. In the context of artificial intelligence (AI), demand for advanced computing hardware has increased, and these metals play a role in the performance and reliability of AI-related infrastructure. AI chips, servers, and related technologies often rely on materials that include these metals. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading Trump has expressed support for expanding the US's AI capabilities, including investment in domestic semiconductor production and research. He has also advocated limiting access by geopolitical rivals to advanced US-developed AI technology. Domestically, South Africa's mining sector continues to be affected by infrastructure and operational constraints. Investec economist Lara Hodes said that 'bulk mineral exports continue to be impacted by the country's logistical challenges, including port and rail inefficiencies, leading to billions of rands in lost revenue'. Creating a world-class logistics system to drive export growth remains a key priority of government, said Hodes. 'Dealing with the other challenges that impede the country's competitive position remains imperative,' she adds. The Minerals Council South Africa has stated that the mining industry continues to play a central role in job creation, foreign exchange earnings and industrial development. IOL
The Guardian
a day ago
- Business
- The Guardian
Official data expected to show UK inflation remained unchanged in June
Update: Date: 2025-07-16T05:53:38.000Z Title: Ellie Henderson Content: Investec's UK economist said: We expect inflation to have held steady at 3.4% in June, matching the Bank of England's forecast made at the time of the May Monetary Policy Report. We also predict the core measure to have remained unchanged at 3.5%. One part of inflation that has not trended lower as of late is food price inflation. The warmer weather has been blamed for rising food costs, with evidence such as from the BRC shop price inflation measure suggesting it will be an upward influence on the June numbers too. This is likely to spill over into restaurant prices too, and the rise in employers' national insurance contributions will not be helping limit price pressures in this sector, along with wider recreation, either. What has been welcomed however is the downtrend in rental inflation, a factor helping overall services inflation move lower. Looking forward, she said: Looking further ahead we expect more disinflationary pressure to present itself in the data over the remainder of the year. A continual loosening in labour market conditions amidst uninspiring economic growth should, by lowering wage pressures, weigh on services inflation, while our base case is that the recent spike in food price inflation is a temporary phenomenon. Update: Date: 2025-07-16T05:50:34.000Z Title: Introduction: Official data expected to show UK inflation remained stable in June Content: Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy. It's UK inflation day! Economists are expecting the headline annual rate to have stayed at 3.4% last month, as rising food prices counter the impact from slower price rises for services. Discounting for clothes could be another factor – especially if the summer sales started earlier than usual. Having spiked in April, inflation eased back in May, albeit only slightly, to 3.4% as measured by the annual change in the consumer prices index (CPI), which tracks the prices of a basket of goods and services each month. The Office for National Statistics releases the data for June at 7am BST. The core rate of inflation, which strips out food and energy (which tend to be volatile) and is closely watched by the Bank of England, is forecast to have stayed at 3.5%. Julien Lafargue, chief market strategist at Barclays Private Bank, said: The market expects UK inflation to have stayed relatively stable in June at 3.4% year-on-year. This would reflect a small uptick in food prices offset by a deceleration in services inflation and still declining energy costs. Given the weaker-than-expected GDP print in May, it would require a meaningful upside surprise in UK inflation for the Bank of England not to lower interest rates in August. Morgan Stanley's chief UK economist Bruna Skarica is also forecasting a 3.4% rate. She explains: Food inflation | An express train: UK food inflation seems to be accelerating. The rise in May was concentrated, and thus initially not that concerning to us. But the British Retail Consortium is now suggesting an express pass-through of the recent hot weather to fruit and vegetable prices. It is peculiar we are not yet seeing a similar dynamic in the euro area food prices, where perhaps margins, competition or volumes all result in a softer pass-through of wholesale costs to retail prices. Core goods | On sale….but when? Summer sales normally start towards the end of June, so an earlier index day might mean a bit firmer clothing prices. Still, we see anecdotal evidence of front-loaded sales, which intuitively makes sense to us, considering the likely front-loading in purchases of summer clothing on mild spring weather in April and May. By contrast, inflation in the United States shot up in June as the impact of Donald Trump's trade tariffs started to show in US prices. Annual inflation rose to 2.7% in June, up from 2.4% in May, data showed yesterday. Last night, Rachel Reeves claimed that rules and red tape are acting as a 'boot on the neck' of businesses and risk 'choking off' innovation across the UK without bold reforms. In a speech to City bosses attending the Mansion House dinner at London's Guildhall on Tuesday evening, the chancellor heaped further pressure on regulators to allow for more risk in order to boost economic growth. 'It is clear that we must do more,' Reeves said. 'In too many areas, regulation still acts as a boot on the neck of businesses, choking off the enterprise and innovation that is the lifeblood of growth. The Agenda 9.30am BST: UK House prices for June 10am BST: Eurozone trade for May 1.30pm BST: US Producer prices for June 2.15pm BST: US Industrial production for June
IOL News
2 days ago
- Business
- IOL News
Mining sector shows signs of recovery with significant rise in iron ore output
Data from Statistics South Africa (Stats SA) on Tuesday revealed that mining production rose by 0.2% year-on-year in May, rebounding slightly after a sharp 7.7% decline in April. Image: Supplied Mining activity in South Africa rebounded slightly in May and ended a six-month streak of contraction, buoyed by a double-digit production expansion of iron ore. Data from Statistics South Africa (Stats SA) on Tuesday revealed that mining production rose by 0.2% year-on-year in May, rebounding slightly after a sharp 7.7% decline in April. Stats SA's principal service statistician, Jean-Pierre Terblanche, said the rise was mainly driven by iron ore, which expanded by 12.5%, adding 1.7 percentage points to overall mining growth. The increase in platinum group metals (PGMs) output in May is more a base effect, following production disruptions in April. Moreover, gold, chromium ore, nickel and other metallic minerals added a further 0.8 of a percentage point (combined) to the headline number. 'Nickel, diamonds, chromium ore, cobalt, and gold also reported positive year-on-year growth rates in May. Several minerals were weaker, including manganese ore, coal and platinum group metals,' Terblanche said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading The positive overall mining growth performance in May augurs well for quarterly production of the mining sector. On a month-on-month basis, seasonally adjusted mining production increased by 3.7% in May compared with April, following a revised flat reading in the previous month. In the three months ended May, mining production increased by 2.6% compared with the previous three months. Investec economist Lara Hodes said manufacturing conditions globally picked up in June, according to the results of the JP Morgan Global Manufacturing PMI survey, which is supportive of industrial demand going forward. According to S&P Global, elevated uncertainty around the extent and effect of tariffs on global growth persists and remains a downside risk. 'Bulk mineral exports continue to be impacted by the country's logistical challenges, including port and rail inefficiencies, leading to billions of rands in lost revenue. Creating a world-class logistics system to drive export growth remains a key priority of the government,' Hodes said. 'Dealing with the other challenges that impede the country's competitive position remains imperative. Specifically, according to the President of the Minerals Council 'South Africa's mining industry remains a cornerstone of economic stability and progress' and it 'continues to play a pivotal role in job creation, foreign exchange earnings and industrial growth'. Meanwhile, minerals sales earnings measured in current prices soared by 18.8% in May compared to twelve months ago. Leading the surge was gold sales which increased by a mammoth 338.7%. This is explained by a 40% increase in the gold price when compared to a year ago The gold price has reached record levels this year as a safe haven investment amid a global environment faced with elevated geopolitical and trade tensions. Gold sales earnings increased by an eye-catching 338.7% (year-on-year), from R4.9 billion to R21.3bn. Minerals Council senior economist, Bongani Motsa, said continued volatility in global markets emanating from the US tariff regime continue to affect demand for minerals, impacting prices. 'In such an environment the gold price should remain well supported. Gold is viewed as a safe haven investment instrument. Most of South Africa's mineral exports to the US are currently exempt from the tariffs, except for diamonds and iron ore,' Motsa said. 'The tariffs are likely to increase auto prices in the US, resulting in risking lower total demand. If realised, the decline in demand for autos in the US will likely affect PGMs production in the short- to medium term via a reduced demand for autocatalytic converters.' BUSINESS REPORT
Bloomberg
2 days ago
- Business
- Bloomberg
Partners Group Is in Talks to Hand Smurf Toymaker to Creditors
By and Arno Schuetze Save Partners Group -owned Schleich is discussing a debt restructuring that could see the private equity firm hand over the keys of the German toy company to its creditors, people with knowledge of the matter said. The firm's lenders, including credit firms Investec and H.I.G., are offering to inject €5 million ($5.8 million) of fresh capital to address its immediate liquidity needs, they said. Blackstone Inc. is also involved in the talks as it's managing some loans for other institutions, some of the people said.
IOL News
2 days ago
- Business
- IOL News
Investec Sets Course for Next Growth Phase, says CEO Fani Titi
Investec is entering a new phase of its growth journey, driven by a focused set of priorities that build on its well-established strengths while opening pathways for sustainable expansion, CEO Fani Titi said in the company's annual report released on Monday. Over the past six years, the group has executed a comprehensive strategy to simplify and focus the business. "We have executed this strategy with discipline, taking bold - and at times difficult - decisions. The outcome is reflected in a re-rated market valuation and a streamlined, well-capitalised business poised for accelerated growth," said Titi. Reflecting on this period of transformation, Titi expressed pride in the progress made despite persistent global challenges. The company delivered a structural improvement of 200 basis points (bps) in group returns, laying a solid foundation for future growth. Looking ahead, Titi outlined a clear and executable plan to scale Investec's existing client franchises and invest in targeted growth initiatives that strengthen its specialist capabilities. "We expect these strategies to collectively add a further 200 bps to group returns over the next five years, bringing us to the upper end of our revised medium-term target range," he added. Strong Performance Amid Volatility In the year under review, Investec delivered robust performance in a volatile environment, achieving a Group Return on Equity (ROE) of 13.9%, in line with guidance issued in May 2024. "For the first time in our history, pre-provision adjusted operating profit surpassed £1 billion (R24bn), underscoring the strength of our differentiated client franchises and diversified business model," Titi noted. Despite persistent geopolitical and macroeconomic uncertainty, Investec maintained strong capital and liquidity positions. Titi described the current rebalancing of global trade relations as a historic shift that brings both risk and long-term opportunity. He said the group remains well-positioned to support clients through this complexity. Strategic Focus in Core Markets Investec is continuing to invest in platforms that strengthen its corporate mid-market proposition in its two core geographies: the UK and South Africa. In South Africa, the aim is to create an integrated platform enabling mid-sized corporates to manage all their banking needs. "Our ambition is to become the primary banking partner for these clients, combining high-touch lending with a modern, user-friendly transactional experience. Our brand, track record, and client-centric operating model position us uniquely to bring the Investec private client experience to businesses," Titi explained. In the South African private client segment, the group is accelerating its client acquisition strategy, particularly among high-income individuals. It will continue to invest in a global private client offering that integrates full-service banking with international wealth and investment management. Titi said Investec's well-established UK Corporate and Investment Banking franchise stands as the only integrated and diversified specialist bank catering to the UK corporate mid-market. Investec was now investing in transactional banking capabilities to deliver end-to end corporate banking to this large and growing segment. Its UK Private Client business is advancing its growth objectives by delivering a comprehensive banking proposition. Investec's investment in the private client transactional banking platform will facilitate the delivery of a full-suite product offering including multi-currency. Outlook and Financial Projections Group Finance Director Nishlan Samujh noted that while the global macroeconomic outlook remains uncertain, Investec is actively monitoring developments and remains confident in its ability to adapt. Looking ahead to 2026, Investec expects to sustain its revenue momentum, supported by continued book growth, increased client activity, and successful execution of its acquisition and retention strategies. Group ROE is forecast at 14%, within the target range. In South Africa, ROE is expected to reach 18.5%, while the UK and Other business segment is targeting a Return on Tangible Equity of 14.0%.
