Breaking News Today – Wednesday 5 November 2025

Business News Today

Wall Street Leaders Warn Of AI-Tech Bubble

Yesterday saw a chorus of warnings from Wall Street CEOs about frothy valuations in the tech and AI sectors—fuelled by comparisons to the dot-com bubble. These statements triggered a sharp selloff in US equities. This risk-off sentiment has rippled into Asian markets today, with indices like Japan’s Nikkei and Hong Kong’s Hang-Seng opening lower by 0.5-1% this morning, pressured by declines in tech-heavy components and cryptocurrencies. These financial leaders oversee massive investments in the sector and their comments directly targeted AI-driven overvaluations, amplifying investor caution amid strong but pricey earnings from firms like Palantir and AMD.

David Solomon, CEO of Goldman Sachs, highlighted bubble-like risks in AI stocks, stating, “It’s likely there’ll be a 10 to 20% drawdown in equity markets sometime in the next 12 to 24 months.” Mike Gitlin, CEO of Capital Group: Pointed to the core investor dilemma, remarking, “Corporate earnings are strong but what’s challenging are valuations.” This came amid a Hong Kong summit where AI spending projections (e.g., $2.8 trillion by 2029) were flagged as unsustainable without proportional returns. Nvidia’s stock opened down -1.2% in Hong Kong today.

USA Rare-Earth Investments Accelerate

The Trump administration and private investors have announced a partnership with two rare earth startups in a $1.4 billion deal, aimed at accelerating the US access to materials and technology that is crucial for producing an array of high-tech goods and military equipment. The investment in Vulcan Elements and ReElement Technologies is the latest stake taken by the U.S. in a handful of private companies — including the recently announced USA Rare Earth company, which plans to start making the rare-earth magnets that appear in many products by 2026. Since US President Donald Trump began his second term in January, The White House has made it a priority to bolster the nation’s supply chain in a market dominated by China. Vulcan Elements manufactures rare earth magnets, while ReElement processes rare earth mineral ores and recycles old batteries and other products made with rare earths.

China Projects 23.9 Billion GDP by 2030

At the China International Import Expo (CIIE) in Shanghai today, Chinese Premier Li Qiang indicated that China’s economy is projected to exceed USD 23.9 trillion within five years, highlighting the country as a growing market for global companies and signalling efforts to ease concerns over trade imbalances. Speaking at CIIE, Li described the anticipated GDP expansion as “new significant contributions to global growth” and pledged to further open China’s consumer market to international businesses, following a major trade deal with the U.S.

He emphasised Beijing’s commitment to supporting globalisation and strengthening economic ties with trading partners, noting: “At a time when the world economy is slowing down and international disputes are intensifying, we must all the more adhere to equal and mutually beneficial cooperation, embrace free markets and free trade, and resolve cross-border contradictions and problems through joint development.” Should China start embracing a free market philosophy this could see significant adjustments in global trade and the Chinese economy.

Breaking News Shorts: 

• The Shanghai Composite index fell 0.5% to around 3,940, while the Shenzhen Component lost 0.9% to 13,060 today, extending declines from the previous session and tracking a global stock selloff s worries over inflated AI valuations deepened. Tech and AI-related Chinese stocks led the retreat,
• Talks between Kenya and the IMF regarding a new lending program have stalled, according to Kenya’s finance minister. John Mbadi told a news briefing that the disagreement was over the classification of debt. 
• Chinese online retailer platforms; Shein, Temu, AliExpress and Wish are being investigated in France in relation to the offence of enabling minors to access pornographic content on their platforms, the Paris prosecutor said on yesterday. The investigation is over violent, pornographic or “undignified messages” that can be accessed by minors, according to French authorities.
• Optasia, the AI driven South African fintech, raised R6.5 billion, in its IPO on the JSE yesterday, this is the largest fintech IPO on the JSE, and the largest listing since 2018 according to Optasia. Investment bankers will receive a handsome, R322 to R416 million (ZAR), for facilitating the listing.
• Copper futures fell below $4.9 per pound yesterday, nearing one-month lows as a global risk-off wave disturbed financial markets. There are growing concerns over stretched valuations and uncertainty surrounding further Federal Reserve rate cuts. Weak manufacturing data from China further weighed on sentiment. Prices have gained some traction this morning above the $4.9 mark

Markets by Numbers 

Currency markets indicate the US dollar stronger today, with the Euro trading against the US dollar at 1.14934 while the Pound is trading at 1.30275 to the US dollar. The Yen is currently trading at 153.53 to the dollar. The rand (ZAR) is currently at R17.49 to the US dollar.

Commodities:  

• Gold futures have dropped below the $4000 mark yesterday but have gained some traction this morning, and are currently trading around $3966.65 per ounce.  
• Copper prices are clawing back losses seen yesterday, with prices currently around $4.9355
• Silver futures prices are trending over 1% higher today, and currently trading around $47.776
• Platinum futures are trending higher this morning after a dip yesterday, and currently trading at $1526.60, While Palladium prices are trending 0.75% higher today, and are currently trading around $1408.50 per ounce.
• Brent crude oil prices are currently at $64.59 with WTI trading lower at $60.65
• Cocoa futures are flat this morning, and currently trading around $6586.45 per ton. 
• Coffee futures are marginally softer today, and are currently trading at around $4.0565 per pound

Crypto Currencies: 

• Bitcoin prices are fairly flat this morning after a steep drop yesterday and currently trading at around $101791 per coin 
• Ether prices are trending over 1% higher today, and are currently trading around $3324.61
• $Trumpcoin is trending lower today, and currently trading around $7.040

(All prices quoted at approximately 08H25 Central African Time) 

Africa News Briefs:

• The Tanzania authoritarian government has gradually opened internet access to the public with a warning that people should not share photos and videos that may cause panic. Internet access was taken down in a six-day shutdown during deadly protests that began on election day. Mobile phone users received a text message on Monday night saying that sharing images that could cause panic or demean human life would lead to “treason charges.” A social media page that had been uploading videos and photos of purported election protest victims was pulled down on Monday evening, after attracting thousands of followers within a day. The government has yet to release an official death toll from the protests
• The Johannesburg High Court has ordered the South African national government to implement its National Action Plan to combat xenophobia, racism, and other forms of discrimination. This follows a case brought by civil groups, against Operation Dudula, whose recent actions at hospitals and schools, demanding identity documents, were declared unlawful. The court found that the government’s failure to implement the plan, adopted five years ago fully, constitutes an unconstitutional neglect of its duties.