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Good morning Voornaam,

The rent vs. buy debate is always topical in South Africa. There's a lot to think about and property prices tend to do very different things across the regions, making the assessment tricky at the best of times. Duma Mxenge of Satrix joined me for a 2025 kick-off chat, in which we touched on a number of key personal finance and wealth creation concepts. The conversation then flowed into property, where I shared the approach I'm taking towards a "forever" home and the strategies I have in place along the way. There's a lot to learn and think about in this podcast>>>

In company news, it was a relatively quiet day on the local market after such a busy couple of weeks. Glencore released production numbers and gave an update on commodity prices, making it easier to see why the share price has been under pressure in the past year. Right at the other end of the mining spectrum, we find Kore Potash and the focus on raising funding for the Kola Project.

In property news, Sirius Real Estate gave us a good example of how property funds can manage their debt strategies and raise a mix of secured and unsecured debt.

Get all the important details with just one click in Ghost Bites>>>

It's great to have the Investec Structured Products team back with us so early in the year. The latest structure is called International Opportunities Limited and it seeks to address the capital risks of investing in Chinese equities, while giving geared upside as well. To explain the product and the thinking behind it, Japie Lubbe joined me on this podcast>>>

Today is the last day to apply for equity funding from MIC Khulisani Ventures if you are a qualifying Black-Owned business. After we released a podcast with full details at the end of 2024, the team has summarised the opportunity in a new article that includes a link to the podcast for those who missed it. Don't delay!

Finally, in the latest Magic Markets podcast, we touched on the chaos in the world of AI in the past week, as well as the (equally chaotic) behaviour of Trump around tariffs. We also took a look at the turnaround stories that we are tracking. Enjoy it here>>>

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 - five insights from December

Ghost Wrap: There were some great stories in December that are well worth keeping in mind in January. Italtile's share price needs a careful watch. Prosus is making major acquisitions again. Renergen is still dealing with teething issues - and a legal dispute as well. Metair is getting very little out of its Turkish business. Finally, will Bell Equipment shareholders kick themselves? I cover these topics in Ghost Wrap, brought to you by Forvis Mazars and available here>>>

MIC KHULISANI VENTURES - A game-changer for Black-Owned businesses in South Africa

MIC Khulisani Ventures is looking for Black-Owned business with high scalability and a commitment to growth. Equity funding is available and applications close at the end of January 2025. Get the details here>>>

GHOST BITES - Making sense of SENS on the local market

Glencore's production numbers for 2024 reveal some of the challenges faced by the industry. Kore Potash is fully focused on raising money for the Kola Project. Sirius shows the different debt strategies that property funds use. Get the details in Ghost Bites>>>

DOMINIQUE OLIVIER - Short Stories v.05: Ideas for good

In a profit-motivated world, there are companies that find ways to solve genuine social problems through their products. Savlon, Honda, Energizer, Phillips and Renault all caught the attention of Dominique Olivier with their initiatives. Get the story here>>>

Unlock the Stock - KAL Group

Unlock the Stock: KAL Group joined the platform for the first time to talk about the performance and strategic focus areas in the broader agriculture industry. Enjoy the presentation and Q&A 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:

Apple continues to show the market how an evolving margin mix plays out in practice. Even though growth in hardware sales is hard to come by, the services business is growing quickly and this only does good things for group gross margin. You see, the margin in the services business is way in excess of the products business, so Apple is growing in the right place from a profitability perspective.

Will this be enough to sustain the high share price in years to come? I still think that they need another breakthrough in hardware to avoid disappointment for shareholders over say the next five years. Right now, it's hard to see where that would come from.

In the luxury sector, our research in Magic Markets Premium this week is on Burberry as a genuinely interesting turnaround candidate for riskier equity portfolios in 2025. Our subscribers can enjoy our detailed work on this company, complementing some of our other recent reports with similar turnaround opportunities.

Magic Markets: Banking on banking

Magic Markets: Banking is a critical sector in the economy and can be a lucrative investment as well. But what are the key metrics to consider? And just how important are the macroeconomics? Get the podcast and transcript here>>>

Macroeconomic indicators

Nasdaq futures are extending gains in early trade, supported by a move in Apple Inc. after the company reported a positive outlook in its earnings release. The push higher in US markets comes despite weaker than expected GDP data out of the region and gains in safe haven assets such as the dollar and gold. Gold has now managed to forge well into new-high territory.

The European Central Bank (ECB) and South African Reserve Bank (SARB) have both cut lending rates by a further 25 basis points. European and South African equity markets were strong yesterday and are expected to open up in positive territory this morning as well.

The rand softened since the rate cut although still trades around its best levels of the week.

Oil prices have managed to rebound from oversold territory, finding some excuse for the move from Trump tariff threats against Mexico and Canada.

Traders will want to keep an eye out for US PCE inflation data out later this afternoon.

Key Indicators: USD/ZAR R18.54/$ | US 10yr 4.54% | Gold $2,799/oz | Platinum $965/oz | Brent Crude $77.04

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.