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Good morning Voornaam,

Fresh out the oven:

Ghost Bites: Pepkor is generating most of its growth from credit sales. African Media Entertainment shows that radio is still strong. Vukile walks away from Capital & Regional. Reinet's NAV is up. Check out AYO Technology and Spear REIT as well, all in Ghost Bites>>>
Ghost Wrap: Enjoy a brand new episode covering Balwin, Quantum Foods, De Beers, Tiger Brands and Bidcorp, brought to you by Mazars. Listen to it here>>>
Nvidia has been the headline-grabber of the year, so we dived into the recent earnings and relative share price performance vs. peers. Intuit is a software-as-a-service powerhouse that is well worth understanding, though the share price looks to be forming a dangerous double top. Episode 177 of Magic Markets (brought to you by Future Forex) delivers insights into both these great companies. You can listen to the show or read the full transcript at this link>>>

In case you missed it:

Dominique Olivier brings you five tales from the AI world that will educate, thrill and quite possibly shock you. From unethical labour practices through to ghostly appearances by Katy Perry at major events, the future is increasingly looking like an AI experiment. Read it here>>>
This is a massive election year, with over 60 nations going to the polls. On the latest Investec No Ordinary Wednesday podcast, Investec Wealth & Investment Chief Investment Strategist Chris Holdsworth shared his insights on the election outcomes that matter most to markets. Listen to the show here>>>
With elections around the corner, managing your behavioural bias is so important. In other words: don't panic! Kingsley Williams of Satrix elaborates in this article>>>
CA Sales Holdings recently presented on Unlock the Stock and engaged in a vibrant Q&A with attendees. This stock has been a top performer. To understand why, watch the event here.

Local company news:

Pepkor is starting to look more and more like the Lewis of clothing, with a strategy that is driving credit sales across the group. Of course, provided the credit risk is properly managed, this can be a lucrative way to drive sales in a tough economy - and at the expense of competitors who are trying to focus on cash sales.

At African Media Entertainment, it's clear that video streaming hasn't killed the radio star. HEPS moved solidly higher, which I personally think is great to see.

In property, Spear REIT has completed the disposal of the Liberty Life building and Vukile is walking away from the Capital & Regional opportunity.

Reinet has achieved decent growth in its NAV, thanks mainly to the stake in Pension Insurance Corporation.

Along with the latest from AYO Technology and a wide assortment of Little Bites, you can get all the details in Ghost Bites at this link>>>

Short stories v.01: the future is an AI experiment

Unethical labour practices. Hollywood stars who either appear magically or seem to have their voices copied. Oh, and how about your late grandmother selling you a premium subscription? Welcome to the chaos of AI, as told by Dominique Olivier in this piece>>>

Why are Silicon Valley valuations higher?

Everyone knows that Silicon Valley is the home of tech and therefore many tech start-ups. But what does this mean for their valuations? And what can we learn about how regions affect company values? I explored this topic in this article for bizval.

International business news:

American Airlines saw its shares nosedive yesterday after the company looks set to fail to capitalise on an exciting Northern Hemisphere summer. Revenue and profit forecasts have been cut and the sales strategy of bringing bookings in-house vs. using third-party sites and travel agencies has backfired horribly, leading to a change of management.

Over at McDonald's, a senior executive wrote an open letter in response to claims about price increases. The price of a Big Mac meal is up 27% since 2019. Look away now, potato enthusiasts - the price of medium chips is up 44%. This is in the US, of course.

Disney activist Nelson Peltz has sold his entire Disney stake after losing the proxy battle at Disney. Can't blame him, to be honest. I also sold after the rally this year.

We just covered tech group Intel in Magic Markets Premium. To get access to this research and the rest of the vast library, subscribe to the platform here.

Macroeconomic Update

The markets are waiting for the release of US PCE price index inflation tomorrow, with Fed officials still pushing the hawkish higher-for-longer line.

The rand is trading weaker at around R18.50 as the country awaits the results of the election. There's also a risk-off narrative across emerging market currencies that is contributing to this weakness.

Key indicators: USD/ZAR R18.47; US 10-year 4.41%; Gold $2,334; Platinum ZAR R19,061; Brent Crude $83.48

This macroeconomic update is based on TreasuryONE's morning update.