Google fined €2.95bn by EU for adtech dominance abuse

South Africa

The Top 40 index added 1.28% on Friday to reach 94,165.6 points, while the All Share index gained 1.09% to close at 101,532.3 points. South Africa’s net foreign reserves rose to $65.9bn in August, surpassing forecasts of $65.2bn. Eskom has maintained grid stability, sustaining an energy availability factor above 65% for three consecutive weeks, while progressing on renewable integration. However, industrial headwinds persist, with Ford, Glencore and ArcelorMittal SA announcing job cuts amid elevated power costs, Asian competition and US tariffs. Structural weaknesses continue to weigh on growth, keeping unemployment politically sensitive. Meanwhile, the defence ministry has deferred joint naval exercises with Russia and China, prioritising preparations for the G20 summit in Johannesburg.

Europe

European equities retreated on Friday, with the STOXX 600 slipping 0.16% to 541.21 after soft US payrolls data dampened sentiment. Energy stocks fell 1.8% on weaker oil prices, while regional banks declined 1.3% on concerns that rate cuts could compress margins. Insurers and financials also lost ground, though real estate gained 1.6% as bond yields eased, partly cushioning losses. German 10-year yields declined to 2.66%, their lowest in three weeks. For the week, energy lagged with a 3.2% fall, while healthcare and media advanced, each gaining 1.2%.

United States

US equities closed slightly weaker on Friday as softer August jobs data reinforced expectations of imminent Federal Reserve rate cuts. Payroll growth slowed sharply, with just 22,000 jobs created against forecasts of 75,000, signalling a cooling labour market. Indices briefly reached record highs on bets of a 50bp September cut before reversing as banks dragged the S&P 500 lower. Broadcom provided a notable upside, rallying on upbeat guidance for AI-related revenues from 2026 onwards, underscoring sustained investor appetite for technology despite heightened macroeconomic uncertainty.

Asia

Asia-Pacific markets were mostly higher on Monday as investors weighed Japan Prime Minister Shigeru Ishiba’s resignation and monitored fresh economic data. China’s exports grew 4.4% year-on-year in August, below expectations of 5.0% and the slowest pace since February, reflecting weaker global demand and fading pre-tariff front-loading activity. Imports rose 1.3%, missing forecasts of 3.0%, extending a modest recovery trend but constrained by a sluggish property market and weak household confidence. Trade performance remains fragile, underscoring structural challenges even as Beijing continues to pursue stabilisation measures.

Commodities

Gold traded just under its record high on Monday, supported by softer US jobs data that bolstered expectations of Federal Reserve rate cuts. Bullion hovered within $10 of its $3,600 peak, extending a late Friday rally of 1.5%. Oil prices also advanced as traders assessed risks to Russian supply amid potential new US sanctions and Ukrainian drone strikes targeting infrastructure. Geopolitical tensions remain heightened, with Washington warning of harsher tariffs on India’s Russian oil imports and Moscow signalling concessions in ongoing settlement negotiations with Ukraine.

Currencies

The rand strengthened on Friday, buoyed by stronger-than-expected foreign reserves and a weaker dollar following soft US labour data. The US dollar fell broadly after payrolls rose by just 22,000 in August, well below the 75,000 expected, reinforcing concerns of a slowing economy and likely Fed rate cuts. The shift in interest rate expectations drove demand for emerging market assets, with the rand gaining alongside local risk assets as global investors repositioned portfolios on the back of a softer greenback.

African Rainbow Minerals Limited (ARI) -3.84%

African Rainbow Minerals reported FY2025 headline earnings down 47% to R2.7bn (R13.79 per share), despite a 1% revenue rise to R13bn. A final dividend of R6.00 brought the total payout to R10.50, with net cash at R6.6bn. Weaker coal and iron ore prices and a stronger rand outweighed modest gains in PGMs and manganese. Costs rose in line with inflation, while safety performance regressed with three fatalities. ARM advanced sustainability through completion of a solar plant for platinum operations and took strategic steps including suspending early Bokoni mining, closing Cato Ridge Works, and increasing its Surge Copper stake.

Bell Equipment Limited (BEL) +2.65%

Bell Equipment reported softer interim results for the six months to 30 June 2025, with revenue down 4% to R6.1bn as weaker market demand weighed on performance. Operating profit declined 43% to R302.8m, while net profit fell 30% to R227.9m, translating into a 30% drop in earnings per share to 225 cents. Headline earnings per share decreased 23% to 248 cents. Despite earnings pressure, net cash inflow surged to R487m from R113m in the prior period, reflecting improved working capital management. The Company declared no interim dividend, though net asset value per share strengthened 7% to 6,167 cents.

Putprop Limited (PPR) 0.00%

Putprop delivered solid FY2025 results, with EPS rising 30% to 119.31 cents and HEPS improving 31% to 60.86 cents, supported by stable rentals and recoveries of R140.4m. Operating profit held steady at R90.2m, maintaining a strong 64.2% margin, while the cost-to-income ratio edged up to 35.7%. Balance sheet resilience improved, with loan liabilities reduced to R411.4m and the LTV ratio strengthening to 29.6%. Net asset value grew 6.5% to 1,777 cents per share. Operational highlights included a 100% tenant retention rate on expiring leases, 73% A-grade tenant mix, and a final dividend of 15.5 cents per share.

Alphabet Inc. (GOOGL) +1.16%

Google has been fined €2.95bn ($3.45bn) by the European Commission for abusing its dominance in the advertising technology market, marking one of the largest penalties imposed by EU regulators. The Commission found that Google engaged in anti-competitive “self-preferencing” by favouring its own display adtech services over those of rivals, harming advertisers, publishers and consumers. The regulator has ordered Google to end these practices and resolve conflicts of interest across the adtech supply chain within 60 days. Google will appeal, arguing the ruling is unjustified and detrimental to European businesses, but expects to recognise the fine in Q3 results.

Kenvue Inc. (KVUE) -9.35%

Kenvue shares dropped over 10% after reports that U.S. Health and Human Services Secretary Robert F. Kennedy Jr. is preparing to link Tylenol use during pregnancy to autism in an upcoming federal report. The Wall Street Journal said the report may also suggest folate-derived medicine as a potential treatment. HHS stressed that no conclusions should be drawn until publication. Kenvue rejected any causal link, citing FDA and medical bodies that affirm acetaminophen’s safety in pregnancy when used as directed. The FDA has not found clear evidence of developmental risks, and prior lawsuits on the matter were dismissed for lack of proof.

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