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Good Morning Voornaam,

Ghost Bites:

AB InBev proves that beer has proper pricing power, with revenue growth well ahead of volume growth
Afrimat does its best under the circumstances, as commodities have been under pressure
The Anglo group companies released their quarterly production reports
Astral Foods has given a rather depressing outlook
Tongaat Hulett is in business rescue, as the situation looks increasingly desperate

In addition to these stories, we saw news of a business disposal by Altron, interim financi al results from MiX Telematics, a trading statement from enX Group and other updates too. It was a busy day! Get up to speed with what you need to know by reading Ghost Bites>>>

Not for chickens

The Astral update is quite something. As one of my favourite mentors often says, you can't even make an honest mistake in the poultry industry. The margins are tight and the risks are significant.

In a perfect example of high operating leverage, the good times are immensely profitable and the bad times are terrible.

SAFEX maize prices. The impact of selling pric e inflation on volumes. Load shedding. The lack of anti-dumping duties. These are just the issues that Astral knows about.

To understand more about this industry and the headwinds that it faces, catch the full Astral update in Ghost Bites.

Hasbro or has-been?

In this week's edition of Ghost Global (which is late this week because I've been sick since Monday - my apologies), we covered three interesting and diverse companies.

Hasbro has caused many family fights around the world with its Monopoly board games. Goldman Sachs has caused many such fig hts because of crazy working hours. Volvo's SUVs are frequently the location of such fights on the move, as a favourite choice of soccer moms around the world. As an aside, you probably don't realise how important the trucks are to that business.

To get the latest news from each of these companies, read Ghost Global>>>

The ECB hikes by 75bps

As expected by TreasuryONE and most of the market, the European Central Bank increased interest rates by 75bps. Comments from Christine Lagarde that the Eurozone's economy will worsen have caused the market to sc ale back on more aggressive rate hikes from the ECB.

In the US, real GDP growth for Q3 was slightly above expectations at 2.6% vs. the expected print of 2.3%. The headline price index surprised to the downside, coming in at 4.4% vs. 5.3% expected. This is an indicator to measure goods and services produced in the US and could indicate that inflation is at its peak. Inherently, this poses the question of whether the Fed will back down on aggressive interest rate hikes.

The rand had a volatile day, making it back below R18 to the dollar amidst general risk-on sentiment. All eyes will remain firmly on next week's Fed meeting.

DealMakers

As you know by now, DealMakers gives us punchy summaries every Friday of the corporate activity of the week. There's a summary on local M&A, African M&A and local corporate finance activity. These summaries are a great way to make sure that you don't miss a thing!

Podcasts for the weekend

First, something unusual. As I look forward to picking up a rather special car tomorrow, it's a good time to share my recent appearance on Honest Money with Warren Ingram. He asked me to come and talk about the cost of car ownership and specifically how to own fun cars without breaking the bank.

If you are willing to drive something a bit older and you understand the total cost of ownership, you can drive proper machinery in a way that is (mostly) financially responsible. Find out how by listening to this great show>>>

Finally, there's a great new episode of Magic Markets for you to enjoy. The UK has been so topical lately, so we spoke to Richard Asherson from Westbrooke Alternative Asset Management to get the scoop on what is happening in private company deals in that market. If you want to learn about dealmaking and capital structuring, this podcast is for y ou>>>

With that, I wish you a lovely weekend as you lick your wounds from the pain in your US tech portfolio!

PS: to stand a chance to win a Takealot voucher, take note of the survey that you can complete below

Ghost Bites (AB InBev | Afrimat | Anglo - Amplats - Kumba | Astral Foods | Tongaat)

The market approved of AB InBev's earnings. Afrimat does its best under the circumstances. Anglo group companies release quarterly reports. Astral Foods gives a depressing outlook. Tongaat Hulett enters business rescue.

Ghost Global (Hasbro | Goldman Sachs | Volvo)

Hasbro's prospects are being carried by Magic: The Gathering. Goldman Sachs is at a painful point in the cycle. Volvo's sales are doing well but margins are lower.

Who's doing what this week in the South African M&A space?

Weekly summary of Merger & Acquisition activity by South African companies

Who's doing what in the African M&A space?

Weekly summary of all Merger & Acquisition activity from across Africa (excluding South Africa)

Weekly corporate finance activity by SA exchange-listed companies

Weekly summary of corporate finance activity by South African exchange listed companies

How to own a great car, cheaply

Does an older Porsche 911 make more financial sense than a flashy new GTI? You bet it does! As a hopeless petrolhead and a finance professional, I have unorthodox views on car ownership. Warren Ingram invited me to talk about them on Honest Money.

Magic Markets Ep99: What's happening in the UK?

The UK has been so topical lately. Thanks to Richard Asherson from Westbrooke, we can bring you insights from ground-level dealmaking in that market.

Listen Now

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