MERCEDES-BENZ SUSPENDS E.LONDON PRODUCTION
Mercedes-Benz has suspended vehicle manufacturing operations at its East London assembly plant. That’s until the end of July, according to Business Day.
It reports that while the company says planned operational shutdowns are not unusual, there is little doubt that the decision follows the imposition by the US of a 25% tariff on imported cars.
The US is an important customer for the C-Class cars made in East London.
Mercedes has confirmed that production was suspended early last week and is expected to resume on July 31st.
JSE’S EXCELLENT FIRST HALF
Turning to the markets, at five p.m. this afternoon, the JSE will close, and we’ll be halfway through 2025.
The JSE All Share closed on Friday evening up 0.1%—the Top 40 up a fifth of a per cent.
But that was enough to leave the All Share up 13.99% - call it 14%, year to date - the Top 40 was even better, up 17%.
That’s the best first half for the JSE in many years.
We’ll get the final figure later today, but those numbers look respectable to me.
WHY THE GAINS?
Key components?
Well, to put it simply, thanks, Donald Trump.
Fear about his policies has driven many people into gold, so DRDGold is up just over 40%, Gold Fields is +63.5%, and AngloGold Ashanti is up 85% year to date.
But we also have platinum sneaking up on the inside rail: Implats +77% and Northam up 97%
Other standouts so far: Naspers and Prosus both up 32%, BAT up 24% - Vodacom 35%
WEAKER US$ HELPS ZAR
Part of this has been the rand – as we speak this morning, up 5.5% against the dollar – trading at R17.81 to the US unit. Against the euro, we’re down nearly 7% - R20.86 this morning, and down 3.5% against sterling – R24.42. The dollar itself is down 13% against the euro – R1.17. So again, that’s down to Trump. And I should add no real change in the rand following the spat at the end of last week between the ANC and DA.
