BN Daybreak Wed 21 Jan: Trump rattles markets, gold at $4 800; Mantashe sparks BEE row; How spite created Buffett empire

In today's BizNews Daybreak, Alec Hogg breaks down the context you need to win the day:Markets in Turmoil: US tech stocks take a hit with Nvidia and Tesla down 4%, while Gold roars to a fresh record of over $4,800/oz.Trump vs. The World: Investor sentiment sours as Donald Trump’s latest moves regarding Greenland and NATO spark fears of a trade war.Netflix Plunge: Shares drop another 5% as investors continue to reject the Warner Bros. Discovery acquisition plan.Prosus at Davos: CEO Fabricio Bloisi speaks from the World Economic Forum on the future of the tech giant.The BEE Debate: NEASA CEO Gerhard Papenfus issues a blistering response to Minister Gwede Mantashe’s claim that white South Africans hate BEE due to “white supremacy”.JSE Movers: Gold shares soar, Sasol breaks its slide, recovering to over R100/share, while Orion bounces back 7%.Business History: The fascinating story of how Warren Buffett bought Berkshire Hathaway not for love of the business, but out of pure spite over a 12-cent dispute..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here..Watch here.Listen here.Edited transcript of the interview:.Good morning. The markets are moving and so are you, from the BizNews studios. This is BizNews Daybreak for Wednesday, 21st of January, 2026. I’m Alec Hogg. Here is the context you need to win the day.Rand strength continued overnight, currently trading at 16.41 to the US dollar. The gold price kept roaring ahead, gaining almost 2% to a fresh record of over $4,800 an ounce. On the other hand, "digital gold" Bitcoin fell 3.5% and starts the day at $89,000. While we were sleeping, US stocks fell, with both the S&P and NASDAQ losing over 2%, while tech darlings took much of the hit. NVIDIA and Tesla lost 4%, with Apple and Amazon down more than 3%.Donald Trump's latest actions appear to finally be starting to affect investor sentiment on Wall Street. Here is the very latest from Doug Krizner at Bloomberg:"The 'sell America' trade was back in full force across US financial markets. President Trump's demand for US control over Greenland stoked anxieties about potential worst-case scenarios. That would include a rupture in the NATO alliance or perhaps a full-blown trade war between the US and Europe. It was over the weekend that Trump announced a new 10% levy on eight EU countries opposed to Trump's plans to seize Greenland."Today, Trump faced backlash from UK Prime Minister Keir Starmer and French President Emmanuel Macron, although Trump played down their criticism:"They always treat me well. They get a little bit rough when I'm not around, but when I'm around, they treat me very nicely. I like both of them. They're both liberal. They have two problems: immigration and energy."As a result of Trump's threats, the European Union has effectively suspended the ratification of the trade deal reached with the US last summer. Here is US Trade Representative Jameson Greer speaking on the sidelines of the World Economic Forum in Davos, Switzerland:"Europe has done nothing to implement the trade deal. Nothing. So it's actually for the EU to say they are suspending it—what are they suspending? Their continued negotiations with us. It hasn't been ratified. For example, when we made the trade deal with the Europeans, shortly thereafter, we modified our tariffs to be much lower. We cut them a deal on autos and other products that other people don't have. The Europeans have not lowered a single tariff for us."Corporate news: Netflix and Warner Brothers DiscoveryAfter the bell, Netflix delivered fourth-quarter results that largely beat Wall Street estimates; however, the company issued a cautious forecast for the months ahead. Netflix also said it is planning to increase spending on films and TV shows by 10% this year, while moving ahead with plans to buy the studio and streaming businesses of Warner Brothers Discovery.We got reaction from David Joyce, Senior Analyst at Seaport Research Partners: "They did beat on the December quarter, but it's always about 'what are you going to do for me next?' While the revenue guide was a little better than expected, the margin was a little lighter. I think people are concerned that the Warner Brothers Discovery deal has something to do with a long-term growth outlook that might not be as rosy as investors hoped."The Netflix share price dropped 5% in after-hours trading. It is now down by over 30% since the company announced its intent to buy Warner Brothers Discovery. Bloomberg's Chris Palmieri notes that investors are concerned: "They've spent $60 million already on pursuing Warner Brothers and anticipate another $275 million in costs. They even paused their $8 billion share buyback program to conserve cash."However, for patient investors, this might be an opportunity. Portfolio manager Eric Clark of RA AccuVest Global Advisors says: "Bigger picture, nothing has really changed with the business. People have left Netflix stock because of the time it takes to get a deal like this done. The stock is down 30% while the business is still doing really well. At this price, I don't even think it matters what the outcome of the deal is; you're getting the stock at a great price."South African markets and the BEE debateOn the JSE yesterday, the resources index was lifted by a strong session for gold shares, pushing the overall index slightly into the green. Sasol broke out of its recent slide, gaining 3% to move back above R100 a share, and the BizNews portfolio favourite, Orion, bounced back 7% to 30 cents.The debate around Black Economic Empowerment (BEE) in South Africa has flared up again after Mineral Resources Minister Gwede Mantashe claimed on public television that white South Africans "hate BEE" because they want to protect "white supremacy."Gerard Papenfus, Chief Executive of the National Employers Association of South Africa (NEASA), responded with a blistering open letter, arguing that opposition to BEE is about a system of coercion that benefits a political elite while damaging the economy. Speaking to me yesterday, Papenfuss said:"Mantashe said we don't want to see Black people prosper, which is simply wrong. It is not a question of white anger. Everybody—except those who really benefit from the scheme—dislikes it. We detest it because of what it is doing to the country. We see businesses struggling daily because this is no longer a normal economy. It’s an unnatural structure where preference is given based on political alliance and colour rather than merit."Insights from DavosThe CEO of South Africa’s most important listed company, Prosus/Naspers, made an appearance in the Bloomberg tent at Davos. Fabricio Bloisi shared the vision for 2028:"We are going to keep expanding our marketplaces for real-world services, e-commerce, and payments. We want customers to use a virtual assistant for everything from food delivery to financial services. We have a big AI lab in the Netherlands and are expanding in India and Latin America to ensure countries have local technological sovereignty."Regarding their massive stake in Tencent, Bloisi clarified: "We are big believers in Tencent. While we sold a little lately to finance buybacks, we are now financing those buybacks more from non-Tencent assets. Tencent is an amazing company with an incredible future in AI."The origins of Berkshire HathawayFinally, a treat for history buffs. We often think of Warren Buffett as the rational "Oracle of Omaha," but his empire actually began with a moment of spite. In a clip from the new Business History podcast, hosts Robert Smith and Jacob Goldstein reveal that Buffett didn't buy Berkshire Hathaway because he loved the textile business—he bought it because the CEO tried to "chisel" him out of 12 cents a share.In the 1960s, Berkshire was a failing textile mill in Massachusetts. Buffett was buying shares at $7.50, believing they were worth $19. The CEO, Seabury Stanton, asked what price Buffett would sell at. Buffett said $11.50. When the official offer letter arrived, Stanton offered $11.375 (11 and three-eighths)—just 12 cents less than promised.Buffett went ballistic. Instead of taking a 50% profit, he decided to buy the whole company just to fire Stanton. He later called it his biggest investment mistake, as he was stuck with a dying textile mill, but he kept the name as a reminder of the time he acted irrationally.I’m Alec Hogg. Thank you for starting your morning with us. Now, go and seize the day.

BN Daybreak Wed 21 Jan: Trump rattles markets, gold at $4 800; Mantashe sparks BEE row; How spite created Buffett empire

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