Amazon raises US$15 billion in bond debut to fuel massive AI infrastructure push

South Africa

The JSE closed firmer yesterday, with the Top 40 index rising 0.23% to 104,793.8 points and the All Share index gaining 0.30% to 112,314.2 points. Pick n Pay announced that the Ackerman family will sell down up to 8.5% of its stake to settle funding costs linked to the group’s restructuring. Markets now turn to a busy data week featuring CPI, retail sales and the SARB’s expected 25 bp rate cut. As Johannesburg hosts the G20 Summit, analysts see a potential lift for tourism and property demand.

Europe

European equities weakened as investors avoided large positions ahead of key U.S. labour data. The STOXX 600 fell 0.5%, while the DAX slipped 1.2%, weighed by losses in luxury names Burberry and LVMH. AXA Investment Managers halved exposure to UK gilts, though several major managers still view them favourably given prospects of further Bank of England rate cuts. The European Commission lifted its GDP forecasts, projecting eurozone growth of 1.3% and raising Spain’s outlook to 2.9%, citing resilient domestic demand and stronger-than-expected economic momentum.

United States

Wall Street retreated sharply on Monday, with all major indices closing below their 50-day moving averages as investors positioned cautiously ahead of earnings from key retailers and Nvidia, and the delayed September jobs report. Home Depot, Walmart and Target results will help round off the season. Nvidia fell 1.9%, weighing on the Nasdaq and S&P 500. Investors also assessed 2026 positioning, with Morgan Stanley favouring U.S. equities over bonds and credit. Markets now await labour data for signals on the economic trajectory after the government shutdown.

Asia

Asia-Pacific markets declined on Tuesday after a tech-led sell-off in the U.S. Chinese fiscal revenue grew 0.8% in the first ten months, while spending rose 2%. BOJ minutes showed Governor Ueda warning that policy kept too loose for too long risks undermining progress toward stable inflation. Tourism-linked Japanese stocks slumped after China issued a travel warning, with Isetan Mitsukoshi falling more than 10%. India exported its first-ever jet fuel cargo to the U.S. West Coast for Chevron amid supply disruptions following a refinery fire in California.

Currencies

The rand traded largely flat ahead of local inflation data and the SARB’s rate decision later this week. The yen weakened to 155.29 per dollar—its lowest level in more than nine months—as expectations faded for a near-term Fed rate cut. Japanese authorities expressed concern over rapid, one-sided FX moves, with Finance Minister Katayama warning of negative economic effects. Prime Minister Takaichi is set to meet BOJ Governor Ueda amid rising scrutiny of Japan’s ultra-loose policy stance, which continues to exert downward pressure on the currency.

Commodities

Gold extended its decline for a fourth session as a stronger dollar and fading expectations of an imminent U.S. rate cut weighed on sentiment. Oil eased as Russian exports from Novorossiysk resumed sooner than expected following drone-related disruptions, though traders continue assessing the longer-term impact of Western sanctions on Moscow’s supply. The U.S. Treasury said sanctions on Rosneft and Lukoil are already eroding Russian revenues. Goldman Sachs forecasts weaker oil prices into 2026 due to rising supply, but notes Brent could spike above US$70 if Russian output drops sharply.

Naspers Limited (NPN) -0.30%

Naspers expects a strong first-half performance for FY26, with core headline earnings per share from continuing operations rising 20.8%–27.8%, driven by robust revenue and profitability across its Ecommerce portfolio and equity-accounted assets, notably Tencent. Headline earnings per share will increase 5.6%–12.6%, while earnings per share are set to climb 30.2%–37.2%, supported by higher profitability and gains from Tencent share disposals linked to the buyback programme. The Group highlighted disciplined execution under The Prosus Way, continued ecosystem expansion to nearly 2 billion consumers, and sustained progress in building a long-term, profitable growth trajectory ahead of interim results due on 24 November.

Prosus N.V. (PRX) -1.31%

Prosus expects a strong first-half FY26 performance, with core headline earnings per ordinary share N from continuing operations rising 20.1%–28.5%, supported by robust revenue and profitability across its consolidated Ecommerce operations and equity-accounted investments, particularly Tencent. Headline earnings will increase 6.5%–15.9%, while earnings per share are set to climb 28.1%–37.0%, bolstered by higher profitability and gains from Tencent share disposals under the ongoing repurchase programme. Management highlighted disciplined execution under The Prosus Way and continued ecosystem expansion, now reaching roughly 2 billion consumers across nearly 100 businesses, reinforcing a long-term platform for profitable growth ahead of results on 24 November.

Astral Foods Limited (ARL) +6.35%

Astral Foods delivered a resilient FY25 performance, with revenue up 10% and profit before interest and tax rising 11%, supported by improved operational efficiencies and stable demand across its poultry and feed divisions. Earnings per share increased 16%, while headline earnings per share grew 14%, reflecting stronger profitability and disciplined cost control. Cash generated from operations rose 20%, further strengthening the balance sheet and enabling a sharply higher total dividend of 1 100 cents, including a 880-cent final payout. Management noted the business remains well-positioned, underpinned by robust cash generation and prudent capital allocation heading into FY26.

MTN Group Limited (MTN) -0.50%

MTN Group delivered a strong Q3 2025 performance, with group service revenue up 22.6% in constant currency, data revenue up 35.4% and fintech revenue up 23.1%, supporting a 6.7 percentage point expansion in EBITDA margin to 45.0%. Subscribers grew 5.8% to 301.3 million, with 165.8 million active data users and 64.3 million MoMo customers. Nigeria and Ghana led growth, while MTN SA remained resilient despite prepaid pressure. Net debt-to-EBITDA improved to 0.4x and liquidity headroom reached R36.9 billion. Management reaffirmed medium-term guidance, with capex of R33–38 billion planned and a strategic focus on scaling fintech and AI-enabled digital solutions.

WeBuyCars Holdings Limited (WBC) -0.81%

WeBuyCars delivered a strong FY25 performance, underpinned by higher trading volumes and robust earnings growth. Units bought and sold rose 7.7% and 8.4% respectively, driving a 13.1% increase in revenue to R26.4 billion. Core headline earnings grew 15% to R937.6 million, with core HEPS up 3.3% to 224.6 cents, reinforcing the quality of underlying operations. Basic earnings and headline earnings more than doubled year on year, reflecting a significant earnings recovery. The Board declared a 20% higher final cash dividend of 30 cents per share, signalling confidence in cash generation and the Group’s medium-term outlook.

Ninety One plc (N91) -1.76%

Ninety One delivered a solid first-half performance to 30 September 2025, marked by a 19% rise in assets under management to £152.1 billion and net inflows of £4.3 billion, boosted by the Sanlam UK take-on. Adjusted operating profit increased 12% to £98.8 million, with the margin improving to 32.1%, while adjusted EPS grew 15% to 8.4p. The interim dividend was raised 11% to 6.0p. Management highlighted competitive long-term investment performance, continued investment in growth opportunities and the strengthening strategic partnership with Sanlam, supported by increased staff shareholding of 32.7%.

XPeng Inc. (9868) -2.74%

XPeng issued a cautious fourth-quarter outlook, guiding revenue to 21.5–23 billion yuan, below consensus expectations amid an intense price war and rising competition in China’s EV market. Despite record October deliveries and a 149% year-on-year surge in Q3 volumes, profitability remains under pressure, with reduced investment in intelligent driving weakening brand appeal above the 200,000-yuan segment. Q3 revenue of 20.38 billion yuan met forecasts and net losses narrowed sharply to 380.9 million yuan. Expansion into mass-market models and longer-term projects—including flying-car concepts and robotics—may constrain near-term earnings while the market remains highly competitive.

Amazon.com Inc. (AMZN) -0.78%

Amazon will raise US$15 billion through its first U.S. dollar bond issue in three years, joining other major technology companies in tapping debt markets to finance rapid AI-infrastructure expansion. The six-part offering drew around US$80 billion in demand, with pricing on the 40-year tranche tightening to 85 basis points above Treasuries. Proceeds will support capex, acquisitions and share buybacks. The move comes as big tech is expected to invest roughly US$400 billion in AI infrastructure this year, with Amazon’s own capex set to reach about US$125 billion following its US$38 billion partnership with OpenAI to strengthen AWS competitiveness.

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