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Good morning Voornaam,

Apologies for being late this morning - I'm currently in Joburg and thoroughly enjoying the conversations and general catch-up on this side. Perhaps I'm imagining it, but things are looking up in Sandton / Rosebank and there's a positive energy here.

Fresh out the oven:

Ghost Bites: Nampak has taken a major step forward, with a deal to sell off the Nigerian business and unlock a chunk of capital. It was a day of mostly good news, with strong numbers from Afrimat and Southern Sun in particular, as well as Sanlam and Karooooo. Barloworld hasn't had it quite so easy, with a dip in earnings. Get it all in Ghost Bites>>>

Here's something to get you excited about lunch today: a new Magic Markets episode covering the exceptional share price performance at Chipotle Mexican Grill and Wingstop, brought to you by Future Forex and available here with a full transcript as well.
The latest DealMakers goodies are ready for you, with summaries on local M&A, local corporate finance and M&A deals in Africa. There's also a piece on renewed M&A activity in 2024.
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>>>
Calgro M3 is next up on Unlock the Stock. Scheduled for 23rd May, you can register for free here>>>
Curious about how platform businesses make a profit? How do startups suddenly start printing cash? In the next bizval webinar on Thursday 23rd May, you can find out. Register for free here>>>

In case you missed it:

Ghost Wrap: You need barely four minutes to get up to speed on KAL Group, AB InBev, Redefine, RFG Holdings and Calgro M3, brought to you by Mazars. Listen to it here>>>
Southern African bonds: In a new article, Siyabulela Nomoyi of Satrix comments on the Fed approach and what this means for Southern African bond opportunities. Read it here>>>

Chasing (returns from) the Sun: Grovest's Tivon Loubser joined me on a Ghost Stories podcast to talk about the 12BA allowances and how the government is giving returns from solar a serious boost for investors and you can listen to it here (full transcript included)>>>
Costa plenty - the hefty price of human error: This brand new piece by Dominique Olivier makes a strong case for self-driving vehicles, with practically every human flaw on full display in the Costa Concordia disaster. Read it here>>

LISTEN: Chasing Returns from the Sun

Not only can you invest in solar, but you can do it with the benefit of tax-enhanced returns thanks to current government policy. Tivon Loubser of Grovest joined me to discuss this. (full transcript included) Listen to the podcast here>>>

Local company news:

Nampak will need to get over a couple of regulatory hurdles in the process, but there's a deal on the table to sell the Nigerian business and shareholders couldn't be happier. This is a significant step towards solving the balance sheet issues.

If you need a lift in your mood today, then there's a positive overall flavour to the numbers that came out yesterday. Afrimat and Southern Sun are telling a great story right now, with Karooooo enjoying an acceleration in subscriber numbers as well. Sanlam achieved double-digit growth for the quarter, although they've cautioned that the rest of the year will likely be slower.

Barloworld has the unfortunate honour of being the only negative news on the day, with a dip in earnings from continuing operations. Even then, it's only a small drop.

Give yourself a dose of happiness in Ghost Bites at this link>>>

LISTEN: Investing in Private Credit
(Reginald Labuschagne, Sanlam Private Wealth |
Harris Gorre, Grovepoint Investment Management)

Get ready to learn - and in a big way. Reginald Labuschagne and Harris Gorre shared their extensive insights into how private credit can be used by investors for returns and diversification. Full transcript included. Listen to the podcast here>>>

READ AND LISTEN: The Global Accelerator

Applications for the Global Accelerator close on 21 May, so make time to research the product this week if you are interested in 100% capital protection in dollars at maturity after five years, while giving exposure to global equity indices. You can get the details if you listen to this podcast with Japie Lubbe of Investec Structured Products.

READ: Costa plenty - the hefty price of human error
(by Dominique Olivier)

The Costa Concordia disaster was a display of practically every human flaw you can think of. The captain of that ship is a very strong case for self-driving (or sailing) vehicles. Dominique Olivier unpacks it in this great article>>>

International business news:

Canada Goose shareholders enjoyed a 16% share price rally after the company reported strong sales numbers and a positive overall outlook in the Asia Pacific region. North America isn't doing too badly either, but isn't growing at the same rate as China and tourist hotspots like Hong Kong.

But it was Walmart that really thrilled the market, trading at all-time highs after telling the market that it could even beat the top end of guidance. Net sales growth guidance is only for 3% to 4%, mind you. It's very hard to grow something of that size.

As a further retail update, Under Armour is still in all kinds of trouble. With a leadership crisis having been in the headlines, founder Kevin Plank returned to the top job and needs to steady the ship he built. North American sales are down sharply and layoffs are the plan.

This week, we are covering a consumer favourite in Magic Markets Premium: Coca-Cola. If you're curious why this has been a staple of the Berkshire Hathaway portfolio, then subscribe to the platform here.

Macroeconomic Update

A hawkish narrative from Fed officials helped the dollar claw back some recent losses. Despite this sentiment in the US and disappointing Chinese retail sales and fixed asset investment numbers, the rand is holding steady.

S&P is expected to keep its sovereign credit rating for South Africa unchanged, with a stable outlook later today.

Gold slipped a bit based on Fed comments. Chinese demand concerns weighed on the palladium price in particular within the PGM basket.

Key indicators: USD/ZAR R18.22; US 10-year 4.37%; Gold $2,378; Platinum ZAR R19,303; Brent Crude $83.52

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