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Good morning Voornaam,

Last week was utter chaos. I don't know about you, but I could do with a social media detox. Hopefully, things get a bit better this week among South Africans. Keep your head down and follow through on whatever you're working on in this noisy environment!

That's certainly what they've been doing over at RCL Foods and Nampak, the two companies that released important updates on an otherwise quiet day of local news on Friday. RCL Foods has flagged a substantial jump in earnings and Nampak is about to get paid for the disposal of the I&CS business.

There were also some important nibbles, including sudden changes to succession plans at both Netcare and Gold Fields.

You'll only need a few minutes for Ghost Bites this morning and the underlying insights are definitely worth it. You'll find them all here>>>

The latest offering from Investec Structured Products is focused on the Chinese equity market. Many have been burnt by the market dragons on that side, which is exactly why downside protection is part of the structure. Although there are no free lunches and this means that some upside has to be given up, the geared nature of the returns creates an appealing risk-reward analysis. Curious? Find out more in this article and then listen to the podcast at the same link for more details.

With several weeks behind us in 2025, it's worth recapping the companies that have been researched in Magic Markets Premium. Subscribers have had access to detailed reports and podcasts on Nike, Walgreens, JPMorgan, Burberry and 3M - not to mention the library going back a few years now! If you're looking for global opportunities, then an investment of just R99/month for access to this research could be one of the best investments you ever make.

Finally, Spotify has one of the best conversion rates in the world when it comes to a freemium model. Dominique Olivier takes a tongue-in-cheek look at how subscribing for Spotify Premium can feel like paying protection money against ads! It clearly works as a strategy, but is aversion to ads the only reason why people pay? With Spotify's share price having been on a trip to the moon for the past year, this article is a fun and insightful read.

Have a great day.

INVESTEC: International Opportunities Limited - a Chinese equity structured product

China is a land that is fraught with risk and brimming with opportunity. With enhanced upside as well as downside protection, International Opportunities Limited is a structured product that seeks to balance the risks and rewards available in Chinese equity markets.

International Opportunities Limited offers 1.3x geared exposure to the CSI 300 Index, capped at 60% growth for a maximum return of 78% in USD. In addition, there is 100% capital protection at maturity in USD.

Japie Lubbe of Investec Structured Products joined me to discuss the structure in detail. Get it here>>>

SATRIX: 2025 kick-off and fresh views on rent vs. buy

Covering a range of personal finance topics and emerging trends in investing, your 2025 kick-off with Duma Mxenge from Satrix is here. And of course, we couldn't resist talking about property. This led to an in-depth discussion on how I'm approaching the rent vs. buy conundrum. Enjoy it here>>>

GHOST WRAP: Retailers on sale on the JSE - a review of the first few weeks of 2025

The retail sector got off to a very poor start in 2025. With practically the entire sector down, are there stocks that were punished more than they should've been? This podcast is a useful summary of recent retail updates across the clothing and grocery sectors, as well as other relevant areas. You can find the recording and the transcript (with charts) at this link>>>

GHOST STORIES: Sustainability, the Spar way

Kevin O’Brien is incredibly passionate about his work as the Group Sustainability Executive at Spar. Having stuck with the group through tumultuous recent times, Kevin is focused on Spar’s role as a corporate citizen in South Africa and the European markets in which it operates.

There’s an important difference between governing sustainably and the governance of sustainability. Kevin does a great job of explaining it in this podcast>>>

GHOST BITES - Making sense of SENS on the local market

RCL Foods has a delicious story to tell when it comes to recent HEPS growth. Nampak has taken another step forward in improving its balance sheet and simplifying its group. Get the details in Ghost Bites>>>

DOMINIQUE OLIVIER - Spotify: mafia tactics that work!

What does the world’s most popular music streaming service have in common with the mob? Aside from some playlists of Italian classics, only its (very effective) conversion strategy. Dominique Olivier explains why subscribing to Spotify Premium feels like paying protection money and why that works so well. Read it here>>>

MAGAnomics: Trump and the global economy

What impact will Trump’s presidency have on the global economy and emerging markets? Tune in to the latest episode of the No Ordinary Wednesday podcast for insights from Investec experts, Annabel Bishop (SA) and Ellie Henderson (UK).

International Business Snippet:

When it comes to social media stocks, Pinterest is one of the wildest rides that you'll find. Long-term investors need not apply here, as there's little or no indication that this share price is going to deliver decent returns. As for traders though, just take a look at this crazy 12-month chart:

The latest jump was thanks to the company beating expectations for the fourth quarter. Monthly active users increased by 11% and revenue was up 18%. Tempting as it might be to get excited here, the share price volatility tells you exactly how inconsistent the company has been over time.

Our latest research in Magic Markets Premium is on 3M as a company with a proud history of innovation in the industrials space. Having previously lost its way, a strong turnaround effort is taking place and is already showing strong results. Our subscribers can enjoy our detailed work on this company, complementing some of our other recent reports with similar turnaround opportunities.

Magic Markets: Tariff Tantrum

Magic Markets: Remember the "taper tantrum" that people used to talk about in the markets over 10 years ago? It was based on a major change to monetary policy and the market didn't like that. These days, the uncertainty seems to be related to Trump's tariff strategies and the related chaos. We discuss how each country has retaliated (and South Africa's relative strength or weakness in that regard) in this podcast>>>

Macroeconomic indicators

Asia’s Hang Seng and Shanghai Composite indices are rallying this morning, led by tech stocks exposed to AI. Gains within the region are also supported by a Chinese inflation report yesterday which has helped ease deflationary concerns.

US and European futures are attempting a rebound from Friday’s weakness in equity markets despite ongoing trade angst. The JSE All-Share Index is expected to open higher this morning as well, in line with its international peers.

The dollar and US Treasury Yields are tracking sideways in early trade. The rand is holding its ground, but could experience some volatility today following Trump’s signing of an executive order to cut financial assistance to South Africa on the grounds of “race-based discrimination”.

Oil prices have started to rebound from oversold territory, although there appears to be little in the way of new news to support the move.

Gold is once again testing all-time highs as US policy uncertainty meets safe haven appeal and hedging demand.

ECB President Christine Lagarde is set to speak in parliament today.

Key Indicators: USD/ZAR R18.50/$ | US 10yr 4.48% | Gold $2,882/oz | Platinum $981/oz | Brent Crude $74.90

As often as practically possible, insights from the IG Markets morning macro update by Shaun Murison will be featured here. Where this isn't possible, only indicators will be provided. If you want to learn more about trading, refer back to The Trader's Handbook, a podcast series that takes you through many of the important principles in trading.