BN Daybreak Thurs 29 Jan: Meta, Tesla, ASML shine; Gold jumps another $300 to $5,500; Grantham’s Bubble Truth

On this morning’s BizNews Daybreak, Alec Hogg unpacks a massive overnight shift in global markets:The "Fear & Greed" Trade: Gold has surged $300 to a record $5,566/oz, pulling JSE miners like Harmony Gold (+10%) and Gold Fields (+8%) skyward. The FT’s Katie Martin and Rob Armstrong argue this isn't just a safety play—it’s a "heady cocktail" of fear, greed, and naked speculation.The "Permabear" Warning: Legendary investor Jeremy Grantham reveals a "dirty trick" he played at a 1990s conference, proving that 99% of Wall Street professionals knew the Dotcom crash was inevitable but refused to say so publicly due to career risk.Fed vs. Trump: The US Federal Reserve has held interest rates steady, with Chair Jay Powell firmly asserting the central bank's independence amid pressure from the Trump White House.Tech Earnings: Big beats from Tesla, Meta, and ASML have steadied Wall Street, with Elon Musk doubling down on investments in xAI despite scepticism.Currency Check: The Rand has strengthened significantly, starting today below R15.70/$ amidst the Dollar's continued wobble..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:.Gold fever and AI exuberance: A January to rememberThe global financial landscape is currently navigating a period of extraordinary volatility and transformation, as highlighted in the latest BizNews Daybreak broadcast for Thursday, 29 January 2026. With host Alec Hogg at the helm, the episode paints a picture of a market driven by a "heady cocktail of fear and greed," where traditional safe havens are being questioned and emerging technologies are attracting record-breaking investment.The meteoric rise of GoldPerhaps the most startling news is the explosive performance of gold. Overnight, the precious metal surged by $300 to reach a fresh peak of $5,566 per ounce—a 4% boom that has sent shockwaves through the markets. This surge has had a direct impact on the South African Rand, which strengthened to below R15.70 to the US Dollar.On the JSE, gold miners are reaping the rewards; Harmony saw a 10% jump, followed by Gold Fields at 8% and AngloGold Ashanti at 6.5%. Analysts are debating whether this is a genuine flight to safety amid global anxiety or a case of "naked speculation". While some argue that gold thrives when investors feel "miserable about the state of the world," others suggest it is filling the gap left by traditional havens like the Yen or a potentially weakening Dollar.The Fed stands firmAmidst this turbulence, the US Federal Reserve opted for stability, leaving interest rates unchanged despite significant pressure from the Trump administration. Chair Jay Powell emphasised the necessity of central bank independence, arguing that monetary policy must remain separate from elected officials to avoid being used for political gain during election cycles. While the US economy showed solid growth in 2025, the Fed is adopting a cautious stance due to "somewhat elevated" inflation and a stabilising job market.Tech giants: AI and autonomyThe technology sector continues to be a primary engine of market movement. Tesla reported Q4 profits that beat expectations, even as it announced the "honourable discharge" of its Model S and X programmes to pivot toward a future defined by autonomy and robotics. In a move that raised eyebrows among some investors, Tesla also announced a $2 billion investment into Elon Musk’s AI startup, xAI.Similarly, Meta Platforms (formerly Facebook) reported robust earnings, driven by a strong advertising business that is now funding AI investment at "record levels". However, the news was not universally positive across Big Tech; Microsoft saw its shares dip after cloud sales growth slowed more than anticipated, despite beating overall revenue estimates.Lessons from history: Is a bubble bursting?As the "AI trade" gains momentum, seasoned investors are waving red flags. The episode reflected on the wisdom of "perma-bear" Jeremy Grantham, who recalled the late 1990s tech bubble. Grantham noted that while "marketing bosses" often preach endless growth, the "engine room" of analysts often sees the impending collapse but feels unable to speak out due to career risk. With gold and AI reaching fever pitches, the broadcast suggests that when retail investors start clamouring for share tips, the run may be nearing its end.

BN Daybreak Thurs 29 Jan: Meta, Tesla, ASML shine; Gold jumps another $300 to $5,500; Grantham’s Bubble Truth

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