Business news in brief
Stocks and dollar hold firm at start of action-packed weekGlobal shares traded steadily near record highs on Monday at the start of an action-packed week that looks certain to see the US Federal Reserve resume its easing cycle, potentially leaving the door wide open to a series of cuts.
The Bank of Canada is also expected to cut rates by a quarter point this week, while the Bank of Japan and the Bank of England are both expected to hold rates steady.
“We expect the statement to acknowledge the softening in the labour market but do not expect a change to the policy guidance or a nod to an October cut.”
US President Donald Trump continued his attacks on the central bank on Sunday, saying Powell was incompetent and hurting the housing market.
“Uncertainty surrounding the future path for Fed policy means that some traders are now bracing for volatility around Wednesday’s Fed decision, with options markets pricing in a 1% swing in either direction, which would be one of the biggest daily moves in weeks,” XTB research director Kathleen Brooks said.
Meanwhile, the euro offered little reaction to Fitch’s downgrade of France.
– Reuters
Liqui Fruit ordered to drop misleading sloganLiqui Fruit has been instructed to abandon its controversial slogan “Nothing But Fruit” after the Advertising Regulatory Board (ARB) appeals committee determined that the claim misled consumers regarding the contents of its juice products.
The ARB’s conclusion followed a consumer complaint alleging that the slogan was deceptive, given that Liqui Fruit juices contain not just pure fruit but also added ingredients such as flavourings and preservatives.
In its defence, Liqui Fruit maintained that “Nothing But Fruit™” was a long-standing brand trademark intended to convey a hyperbolic message rather than a literal representation of the product’s ingredients.
The company argued that a reasonable consumer would not interpret the expression in a stringent context, considering it pertains to long-life fruit juice.
The ARB responded by explaining:
“In relation to ‘Nothing But Fruit™’, the Advertiser explained that the term is a long-established brand trademark which is used in a hyperbolic sense. A reasonable consumer would not interpret this literally in the context of a long-life fruit juice.”
Furthermore, the ARB addressed additional claims related to local sourcing, refuting Liqui Fruit’s assertion that it did not use the phrase “Sourced From Local Farms.” Instead, the committee clarified that the evidence cited in this context pertained to another product from the same company, Ceres.
– IOL
Warning to SA’s R50 billion stokvel sectorWith the festive season around the corner, the South African Police Service (SAPS) has issued a warning to stokvels and savings clubs across the country to be vigilant and adopt stronger security measures to protect their cash contributions.
Stokvels are one of the most popular forms of informal savings and investment groups, with the industry playing a significant role in the country’s economy.
According to a 2024 Ipsos market study, the stokvel sector is valued at around R50 billion and comprises over 800 000 groups with 11 million members across the country.
“Traditionally the domain of older members, stokvels increasingly attract younger generations and individuals across higher income brackets. These members are drawn to the wisdom and experience offered by their older counterparts,” Ipsos client officer Busisiwe Mahlaba said.
However, while the industry has continued to grow, with many groups opting to save their money in banks, concerns remain about the safety of cash contributions during collections and payouts, particularly over the festive season when criminal activity tends to rise.
In a post on X, the SAPS urged stokvel members to take precautionary measures, including avoiding cash deposits on high-risk days and ensuring cash transactions are conducted in pairs.– IOL
AstraZeneca pauses £200m Cambridge investmentAstraZeneca has paused plans to invest £200m at a Cambridge research site in a fresh blow to the UK pharmaceutical industry.
The project, which was set to create 1 000 jobs, was announced in March 2024 by the previous government alongside another project in Liverpool, which was shelved in January.
The announcement came after US pharmaceutical giant Merck scrapped a £1bn UK expansion, blaming a lack of government investment, and as President Donald Trump pressures pharmaceutical firms to invest more in the US.
An AstraZeneca spokesperson said: “We constantly reassess the investment needs of our company and can confirm our expansion in Cambridge is paused.”
Over the last 10 years, UK spending on medicines has fallen from 15% of the NHS budget to 9%, while the rest of the developed world spends between 14% and 20%.
Meanwhile, pharmaceutical companies have been looking to invest in the US following Trump’s threats of sky-high tariffs on drug imports.
In July, AstraZeneca said it would invest US$50bn in the US on “medicines manufacturing and R&D [research and development]”.
Earlier last week, Merck, which had already begun construction on a site in London’s King’s Cross that was due to be completed by 2027, said it no longer planned to occupy it.– BBC
China, US begin economic, trade talks in MadridThe Chinese and US delegations convened on Sunday for talks on economic and trade issues in the Spanish capital, Madrid.
In the coming days, the two sides will discuss issues such as US unilateral tariff measures, the abuse of export controls, and TikTok, a spokesperson with China’s Ministry of Commerce said on Friday.
The Chinese delegation is headed by Vice Premier He Lifeng, also a member of the Political Bureau of the Communist Party of China Central Committee.
China’s position on the TikTok issue is clear and consistent, the spokesperson said. China is firmly committed to safeguarding the legitimate rights and interests of its enterprises and will handle the TikTok issue in accordance with relevant laws and regulations.
– Xinhua via CGTN
Preliminary probe shows Nvidia violated anti-monopoly lawChina’s market regulator on Monday said that a preliminary investigation had found that Nvidia had violated the country’s anti-monopoly law, marking the latest hit for the US chip giant.
The brief statement from the State Administration for Market Regulation did not elaborate on how the US company, known for its artificial intelligence and gaming chips, might have violated China’s anti-monopoly laws.
China in December launched an investigation into Nvidia over what it said were suspected violations of the country’s anti-monopoly law, a probe that was widely seen as a retaliatory shot against Washington’s curbs on the Chinese chip sector.
The Chinese regulator also said the US chipmaker was suspected of violating commitments it made during its acquisition of Israeli chip designer Mellanox Technologies, under terms outlined in its 2020 conditional approval of that deal.
The SAMR on Monday added that it would continue its investigations. Nvidia did not immediately respond to a request for comment.– Reuters