Nvidia puts $2 billion into Synopsys to turbocharge AI design collaboration

South Africa

South African equities strengthened on Monday, with the Top 40 up 1.1 percent to end at 104,387.69 points and the All Share gaining 0.9 percent to close at 111,947.89 points. However, the Absa manufacturing PMI slumped to 42.0, its sharpest decline this year, although forward-looking sentiment improved marginally. NAAMSA reported 12.5% y/y growth in new vehicle sales, softer than expectations. Attention now turns to key macro releases: Q3 GDP later today, the current account on Thursday and foreign reserves on Friday. New data from Canal+ showed MultiChoice subscriber losses accelerated to 1.4 million between June 2024 and June 2025, underscoring persistent structural pressures.

Europe

European equities eased on Monday, with the STOXX 600 down 0.2% as industrials lagged following a 5.7% drop in Airbus after it flagged quality issues on certain A320-family aircraft. Most regional markets followed suit, reflecting caution after November’s gains. UK retail inflation slowed to 0.6% y/y, but the British Retail Consortium warned that rising 2026 costs could hinder further disinflation. Meanwhile, the Confederation of British Industry’s output expectations index fell to -27, the weakest since May, signalling a three-month contraction as subdued consumer demand and persistent cost pressures weigh on businesses.

United States

US markets closed slightly lower as higher Treasury yields and another weak ISM manufacturing print dampened sentiment. Manufacturing contracted for a ninth consecutive month in November as tariffs continued to weigh on orders and input costs. Markets still expect the Federal Reserve to cut rates on 10 December, with futures pricing an 85% likelihood of a 25 bps reduction. Investors are also awaiting the delayed September PCE inflation report due Friday. Speculation around potential leadership changes at the Fed and recent dovish signals from key policymakers have reinforced expectations for further policy easing.

Asia

Asian markets digested mixed macro data, led by South Korea’s CPI rising 2.4% y/y in November, driven by sharp increases in fresh produce and services costs, supporting expectations that rates will remain elevated for longer. Standard Chartered upgraded China’s 2026 GDP outlook to 4.6%, citing resilient exports, easing US–China tensions and improved productivity. In Japan, Finance Minister Satsuki Katayama said there is no divergence between the government and the Bank of Japan on the economic outlook, following Governor Ueda’s upbeat assessment that hinted at potential rate normalisation.

Commodities

Oil prices advanced for a second session as markets assessed supply risks from Ukrainian drone strikes on Russian infrastructure and escalating US–Venezuela tensions. The Caspian Pipeline Consortium resumed shipments from one Black Sea mooring point, though damage remains at another. Analysts noted that geopolitical risks could tighten diesel and gasoil markets. OPEC+ reaffirmed a modest output increase for December but paused hikes for early 2026 amid oversupply concerns. Gold climbed to a six-week high on rising expectations of US rate cuts, while silver rallied to a record level ahead of key inflation data.

Currencies

The rand firmed on Monday, supported by stronger precious-metal prices despite weak PMI data and below-forecast vehicle sales. The US dollar continued to soften, with the DXY slipping to 99.4 as softer manufacturing data increased pressure on the Federal Reserve to ease policy. The greenback has now declined for seven sessions. Sterling edged lower as investors locked in recent gains ahead of a widely expected Bank of England rate cut later this month. Last week’s budget-related relief rally helped the pound post its strongest weekly performance since early August.

Standard Bank Group Limited (SBK) -0.28%

Standard Bank Group delivered steady performance for the ten months to October 2025, with trends broadly consistent with 1H25 and guidance unchanged. Banking revenue rose by mid-to-high single digits, supported by stronger loan growth, robust non-interest revenue and solid trading income. Costs were well contained, rising slightly below revenue. The credit loss ratio tracked mid-range, with lower impairments in Personal, Private, Business and Commercial Banking. Insurance and Asset Management also reported firmer earnings. The group reiterated FY25 targets of mid-to-high-single-digit revenue growth, a flat-to-lower cost-to-income ratio and ROE within 17–20%, with FY25 results due on 12 March 2026.

Hyprop Investments Limited (HYP) -0.85%

Hyprop delivered a solid pre-close performance for the four months to October 2025, with both South African and Eastern European malls reporting robust turnover and trading-density growth, supported by higher collections and further vacancy reductions (SA retail vacancy 3.2%, EE 0%). Ongoing capex in flagship centres, tenant remixing and strong leasing outcomes are reinforcing dominance in key nodes. Balance sheet metrics remain sound, with LTV at 34.3%, good liquidity and 77% of interest exposure hedged, while ESG investments in solar, water efficiency and waste are progressing well. Management reiterates guidance for 10–12% distributable income per share growth to June 2026.

Tharisa plc (THA) +2.33%

Tharisa reported resilient FY2025 results in a weaker commodity-price environment, supported by higher reef mined (+17%) and firm cost discipline. PGM and chrome output declined modestly, driving a 16% drop in revenue, though EBITDA rose 6% to US$187.3 million and operating profit increased 5%, aided by a US$67.3 million mining royalty credit. Earnings were marginally lower, while ROIC softened to 9.7%. The balance sheet remains sound, and the Board has proposed a total dividend of 3.0 US cents per share. Progress on the Karo Platinum Project and downstream beneficiation initiatives reinforces Tharisa’s long-term growth and energy-transition positioning.

Fairvest Limited (FTA) 0.00%

Fairvest delivered strong FY2025 results, underscoring portfolio resilience and disciplined execution in a difficult operating environment. Revenue grew 7.1%, supported by a 5.8% increase in like-for-like net property income, reduced vacancies (4.1%) and positive rental reversions of 4.8%. Earnings and NAV increased across both share classes, with B-share distribution up 11.2% and A-share distribution rising 3.1%, maintaining a 100% pay-out ratio. Balance-sheet strength improved, with LTV reduced to 25.6%. Management expects a further 9–11% growth in B-share distributions for FY2026, backed by stable operating metrics and sustained demand across the portfolio.

Equites Property Fund Limited (EQU) -1.75%

Equites reported solid operational momentum, underpinned by strong development activity and disciplined capital allocation. Recent milestones include a ten-year, 90,000m² Tiger Brands facility in Riverfields at a 9% yield on a R1 billion development, a new 24,000m² logistics facility for a global operator, and a 7,000m² expansion of the Premier FMCG site at Lords View. The Group is also negotiating roughly 150,000m² of additional developments valued at around R2 billion. Equites remains committed to exiting its UK portfolio, with disposals progressing asset by asset. Management reiterated full-year DPS guidance of 140–143 cents, supported by a robust South African pipeline.

Nvidia Corporation (NVDA) +1.66% & Synopsys Inc. (SNPS) +4.85%

Nvidia has invested $2 billion in Synopsys as part of an expanded multi-year collaboration to accelerate AI-driven design across industries. The partnership aims to shift complex simulation workloads from traditional CPUs to Nvidia’s GPUs, which can reduce design cycles from weeks to hours. Both firms stressed the agreement is non-exclusive, with Synopsys retaining flexibility to support other chipmakers. The deal strengthens Nvidia’s broader strategy of investing across the AI ecosystem, while providing Synopsys with capital to enhance its software for GPU acceleration. Shares reacted positively, with Synopsys up nearly 5% and Nvidia modestly higher.

Tesla Inc. (TSLA) -0.01%

Tesla’s European registrations fell sharply in November, underscoring persistent market share losses despite the refreshed Model Y rollout. Sales declined across major markets, including France, Sweden, Denmark, the Netherlands and Portugal, although gains in Norway and Italy offered some relief. Tesla’s European share slipped to 1.6% year-to-date as competition from Chinese EV and hybrid manufacturers intensified and consumer sentiment cooled. Analysts noted that the brand’s ageing line-up and reduced novelty are weighing on demand. A limited release of lower-priced Model Y units provided little immediate support, with the model posting steep declines in several key countries.

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