Paramount Skydance launches a $108.4 billion hostile bid to outbid Netflix for Warner Bros Discovery

South Africa

The Top 40 fell 1.57% to 103,154.31 points, while the All Share declined 1.47% to 110,827.39 points as sentiment weakened across the local equity market. SPAR Group confirmed it is in negotiations to sell its UK Appleby Westward business, continuing its strategic withdrawal from non-core European operations following exits from Switzerland and Poland. Eskom announced an MoU with Samancor Chrome and the Glencore–Merafe Chrome Venture to explore measures supporting South Africa’s ferrochrome industry. Meanwhile, PetroSA has approved a deal granting Shell a 60% stake in Block 2C, expanding the oil major’s exposure to the highly prospective Orange Basin.

Europe

European equities were subdued on Monday, with the STOXX 600 edging 0.1% lower as rising global bond yields and cautious sentiment ahead of the U.S. Federal Reserve meeting dampened risk appetite. Real estate stocks led declines, falling 1.6% amid concerns over fiscal sustainability and higher long-dated yields. Better-than-expected German industrial production data and hawkish ECB commentary, hinting at a potential rate hike, added to the mixed tone. Consumer staples lagged, with Unilever down 2% following the listing of its spun-off Magnum Ice Cream Company. Political focus centred on renewed Franco-German-British support for Ukraine.

United States

Wall Street closed lower on Monday as Treasury yields firmed and investors adopted a cautious stance ahead of Wednesday’s Federal Reserve decision, with markets pricing an 89% probability of a 25bps cut. Despite last week’s encouraging consumer-spending data, uncertainty persists given what is expected to be the most divided Fed in years. Media stocks were in focus after Paramount Skydance’s $108.4 billion hostile bid for Warner Bros Discovery lifted both companies’ shares while weighing on Netflix, which dragged the Communication Services Index 1.8% lower. Attention now turns to tech valuations ahead of Broadcom and Oracle earnings later this week.

Asia

Asian equities weakened on Tuesday as investors turned cautious ahead of a widely expected U.S. rate cut and a series of global central bank meetings, including the RBA’s decision later in the day. The yen stabilised despite a strong earthquake in northeast Japan, with limited market impact. Nvidia gained in after-hours trade after President Trump confirmed the U.S. will permit exports of its H200 AI processors to China, subject to a 25% government fee, a move also set to apply to AMD and Intel. Market reaction remains tempered by uncertainty over Beijing’s restrictions on U.S. technology.

Commodities

Oil prices were steady on Tuesday after a 2% decline in the prior session, with markets monitoring Ukraine peace discussions and the upcoming U.S. rate decision. Supply pressures eased as Iraq restored output at Lukoil’s West Qurna 2 field, while G7 and EU policymakers are reportedly considering replacing the Russian oil price cap with a full maritime services ban to curb Moscow’s revenue. Gold traded flat as expectations for a Federal Reserve rate cut were largely priced in, with investors awaiting guidance on the likely pace of easing from the meeting beginning later today.

Currencies

The rand was little changed on Monday as markets digested Moody’s decision to affirm South Africa’s rating and outlook, with attention shifting to upcoming data releases that will offer early fourth-quarter demand and production signals. The yen also held steady despite a 7.5-magnitude earthquake in northeast Japan, adding to a cautious global tone ahead of multiple central bank meetings. The U.S. dollar firmed in volatile trade, supported by expectations of a Federal Reserve rate cut this week, though investors remain wary that the easing cycle may prove more gradual than initially forecast.

Capitec Bank Holdings Limited (CPI) -0.89%

Capitec has entered into a binding agreement to acquire 100% of Walletdoc, a South African fintech specialising in scalable payment-gateway solutions, including online payments, digital wallets, Instant EFT and real-time payouts. Established in 2015, Walletdoc aligns strongly with Capitec’s innovation-driven culture and strategic focus on lowering payment costs and expanding digital financial access. The transaction includes a R300 million cash payment and a performance-linked R100 million earn-out over three years, reinforcing Capitec’s ambition to build a more inclusive and competitive payments ecosystem in South Africa.

Nampak Limited (NPK) -3.61%

Nampak delivered a resilient performance despite challenging consumer conditions, with continuing-operations revenue up 8% and trading profit rising 26% on strong cost discipline and improved contributions from Beverage SA and Beverage Angola. Headline earnings surged to R872 million, supported by a 45% reduction in net finance costs and significant debt reduction following R1.5 billion in asset-disposal proceeds. EBITDA increased 26% to R1.9 billion, while free cash flow strengthened materially. The group remains focused on operational optimisation, market-share opportunities and disciplined capital allocation amid a competitive trading environment.

Absa Group Limited (ABG) +2.54%

Absa expects its 2025 performance to align with prior guidance, with mid-single digit revenue growth driven by stronger non-interest income and wholesale-lending momentum. Credit impairments should ease as the credit loss ratio trends toward the upper half of the 75–100bps target range. Operating-expense growth will remain mid-single digit, resulting in a slightly higher cost-to-income ratio, while RoE is guided to c.15% and HEPS to grow in low double digits. Looking ahead, Absa forecasts improving GDP conditions, firmer loan growth and further credit-ratio gains to support a circa 16% RoE in 2026.

SPAR Group Limited (SPP) +2.17%

SPAR delivered a more stable performance in 2025 as its European strategic review neared completion, simplifying the Group and improving earnings visibility. Net debt fell 40% to R5.4 billion, supported by stronger cash generation and disciplined capex, with leverage reduced to 1.74x. Group revenue grew 1.6% on a comparable basis, while gross profit rose 3.3% and margins widened to 10.8%. Southern Africa achieved a 6.8% increase in comparable operating profit, and BWG Ireland maintained margins above 3%. Management notes a clearer pathway to shareholder returns over the short to medium term.

Italtile Limited (ITE) 0.00%

Italtile reported mixed trading conditions for the July–November 2025 period, with persistent macro-economic pressures and aggressive low-priced imports weighing on Ceramic Industries and manufacturing volumes. Retail brands CTM, Italtile Retail and TopT delivered 1.2% turnover growth as market-share gains offset weaker pricing and margin pressure. Group manufacturing sales declined 6.2% and capacity utilisation eased slightly, although internal efficiencies improved. Management expects challenging conditions to persist due to excess supply and weak demand, but highlights Italtile’s strong brands, integrated supply chain and cost-efficient manufacturing model as key advantages ahead of any future recovery.

Paramount Skydance Corporation (PSKY) +9.02%

Paramount Skydance has launched a $108.4 billion hostile bid for Warner Bros Discovery, attempting to outmanoeuvre Netflix’s $72 billion offer and create one of the largest media mergers in history. The $30-per-share proposal, backed by the Ellison family, Affinity Partners and several Middle Eastern sovereign funds, offers $18 billion more in cash and promises faster regulatory clearance. However, the deal faces intense political and antitrust scrutiny given its scale and links to senior US political figures. Warner Bros will review the offer but has not shifted its recommendation in favour of Netflix.

BHP Group Limited (BHP) -0.83%

BHP has agreed to sell a 49% stake in its Western Australia Iron Ore inland power network to BlackRock-owned Global Infrastructure Partners for $2 billion, forming a new entity in which BHP will retain operational control and a 51% stake. The miner will pay a 25-year tariff tied to its share of inland power usage. Management emphasises the deal as a disciplined capital-allocation move that enhances balance-sheet flexibility and long-term value. The transaction aligns with a broader industry shift toward monetising non-core infrastructure, with no impact on existing WAIO joint-venture agreements.

International Business Machines Coporation (IBM) +0.40%

IBM will acquire real-time data infrastructure provider Confluent for $11 billion as it accelerates its cloud and AI strategy amid surging enterprise demand for generative and agentic AI. The $31-per-share offer represents a 34% premium and strengthens IBM’s position in high-margin software by adding Confluent’s streaming technology, which underpins large-scale AI workloads. CEO Arvind Krishna said the deal will create a purpose-built smart data platform for enterprise AI. Funded with cash on hand, the acquisition is set to close mid-2026 and is expected to lift adjusted earnings in year one and free cash flow in year two.

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