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Good morning Voornaam,

Mr Price added its voice (and share price) to the clothing retailer celebration that was started by The Foschini Group.
Microsoft is laying off 1,900 people in its gaming business after acquiring Activision Blizzard.
TreasuryONE updates us on US GDP numbers.
Magic Markets brings you the latest on Crocs and Birkenstock in this podcast>>>

Local company news:

We've had a busy week of news in the retail sector. Mr Price has now added its voice, with the market celebrating numbers that seem to show decent year-on-year growth, a positive performance from recently acquired businesses and a recovery in gross margin.

Of course, we know that markets are incredibly good at overreacting. That may not be the case here (and only time will tell), but the year-on-year performance at Mr Price and its competitors has been helped by how bad load shedding was at the end of 2022. Mr Price was particularly poorly equipped for that load shedding, so they are reporting numbers against a very weak base for comparison.

Also in Ghost Bites this morning, you'll find some exceptional numbers from Harmony Gold. The share price is up more than 80% over 12 months and with good reason. I'm afraid that Sasol is a much less positive story, with a share price that has halved over the past year - also with good reason. The mining and energy sector is no joke.

And aside from the assortment of Little Bites, you'll also find the latest on Dis-Chem and PPC.

Get everything you need to know on these stories in Ghost Bites>>>

Also be sure to add the Ghost Wrap podcast to your weekly listening regime. This week, you need only five minutes to get the most important insights on Motus, Attacq, Clicks and Woolworths. This podcast is designed for busy people just like you, with thanks to Mazars. You'll find it here>>>

I also do a weekly radio segment in Namibia that you might enjoy. The latest one covered AVI, Karooooo, Cashbuild and Netflix. Find it here>>>

International company news:

Thanks to data and automation specialists B2IT, Magic Markets brings you the latest from the world of ugly shoes! This might upset a few people, but Birkenstock and Crocs felt to us like they could be grouped together. Admittedly, we don't know much about fashion. We know a little bit about the numbers and investing though, so get up to speed on both companies in this podcast>>>

In the US, they don't mess around when it comes to right-sizing companies and taking out layers of duplication. Large mergers inevitably lead to lay-offs, unlike in South Africa where competition authorities like to block this kind of thing. As difficult as it is to accept, an economy isn't helped by companies being forced into inefficiency.

CNBC has reported that Microsoft is laying off 1,900 people in its gaming business, or around 9% of headcount. One of the Blizzard co-founders will also be on his way.

It's not just Microsoft cutting jobs. There have been lay-offs at the likes of Riot Games (owned by Tencent), TikTok and other tech groups. Where Microsoft is doing this as a result of a merger, some of the other tech players are simply trimming a bloated workforce that was created organically. This is typical of US tech business culture.

Have a great day!

LISTEN: Magic Markets podcast

In Episode 159 of Magic Markets, we dug in the back of our cupboards for the shoes we are too embarrassed to wear. Perhaps we just aren’t fashionable enough, as there are many celebrities wearing Birkenstocks. As for Crocs, there are few who would put those on a pedestal for beautiful design!

Of the two ugly shoe contenders, which one is a buy? And what can we learn about IPOs from this?

Find out about the opportunities and risks in this podcast, brought to you by international data and automation specialists B2IT.

Listen to Magic Markets Episode 159 here (23 minutes long)

Currencies, commodities and rates: TreasuryONE Market Update

US Q4 GDP data surprised to the topside at 3.3% vs. 2.0% expected. This took total growth in 2023 to 2.5%, up from 1.9% in 2022. At the same time, US jobless claims came out higher than expected and durable goods were worse than expected. These were messy inputs for the dollar, putting it on the back foot. The market digested this information after the ECB left interest rates unchanged.

The overarching theme here is that the market is uncertain about interest rate projections this year. Next week will be the first FOMC meeting for the year, which will be heavily informed by the Core PCE data release due today.

Speaking of interest rates, the Turkish Central Bank has hiked rates yet again, with one-week borrowing rates reaching 45%! Inflation is running at nearly 65% in that country.

The rand traded at R18.84 yesterday evening. This took the platinum price down to R16,850! Brent Crude traded at around $81.50.

As a Ghost Mail reader, you have a wonderful early bird opportunity to register for the 2024 post-budget panel discussion hosted by TreasuryONE, Econometrix and ETM Analytics. I absolutely cannot recommend this enough and I will also be attending to learn from the panel. Get it in your diaries now already by registering at this link>>>

READ: UFC - The Business of Bliksem
(by Dominique Olivier)

With Dricus du Plessis' victory fresh in our minds, Dominique Olivier stepped into the octagon to figure out the history of the UFC. It's even more interesting than you might imagine!

Learn about the commercial history of the UFC in this article

LISTEN: What to do with those festive savings with Siyabulela Nomoyi of Satrix

Saving and investing over December - January isn't easy. To keep you inspired, Siya joined me to cover a wide range of ETF topics - along with some tips of how to keep those goals going over this period of endless spending!

Listen to the Ghost Stories podcast here (38 minutes long)

READ: Letter from the Editor - from Cape to Clarens

A roadtrip across South Africa is always a treat. Of course, it's also a way to see what is really going on out there. I wrote about my experience from Cape Town to Clarens (and back again!)

Read about my roadtrip and observations in this article

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