It's been a big week for Johann Rupert. Not only did Reinet sell its entire British American Tobacco stake, but then Richemont put out a blockbuster quarterly result that sent the share price roughly 15% higher. With Jewellery Maisons leading the way, this tells me that the luxury end of the market really isn't so bad outside of China. The diamond and emerald issues at De Beers and Gemfields respectively must therefore be a problem in the affluent market, which makes sense as affordability is a consideration. My views on lab grown diamonds as a powerful disruptor are well documented and have proven to be correct thus far.

This is the power of reading updates across various companies and trying to join the dots.

Here are some more dots for you: growth in the Western Cape. Local property funds are tilting their portfolios towards the region and now PPC has announced major investment in capacity in this neck of the woods. Considering that South Africa as a whole has an over-capacity problem in cement, this is a big step for PPC and it sends a strong message about where the growth is.

Other news yesterday included BHP Group closing its recent copper deal and Sirius Real Estate tapping the European debt market in a heavily oversubscribed bond issuance.

Get insights into these stories and the Nibbles in Ghost Bites>>>

In the latest Magic Markets episode, we talk about something in the markets that tends to capture the imagination of investors: retail turnarounds. Pick n Pay is just one example on the local market, with many more examples internationally (like Walgreens which we covered in Magic Markets Premium this week for our subscribers). In this show, we spoke through some of the key macroeconomic indicators that help in assessing the likelihood of success of turnarounds, before diving into the typical milestones of a turnaround and when the risk-reward balance seems to be at its most appealing. Enjoy it here>>>

And remember, for the qualifying entrepreneurs among you, MIC Khulisani Ventures is looking to provide capital to businesses that are ready to aggressively grow. Applications need to be in by the end of January, with capital expected to flow by March. To fully understand the opportunity, be sure to listen to this podcast>>>

Have a great day and we look forward to seeing you on Sunday for Ghost Mail Weekender!

Banking sector earnings continued, with Bank of America beating estimates and investment banking revenue once again playing a major role. Advisory and other investment banking fees are lumpy by nature, with growth coming in well ahead of the most recent guidance given by the bank's CEO. It's hard to predict exactly when deals will close and fees will flow.

Bank of America has more traditional banking operations than many of its rivals, so growth in net interest income of 3% was a key metric in this result.

Over at Morgan Stanley, we find yet another bank with earnings that beat expectations. The equities trading business did the heavy lifting here, with particular strength in the part of the business that services hedge funds.

Overall, this week has confirmed that banks in the US remain an excellent way to make money. They are my preferred banking exposure in my portfolio. We've discussed this before in Magic Markets Premium and I have no doubt we will cover the banks again soon for our subscribers. At R99/month, can you really afford to miss out on that?

Plus, you get our latest research on Walgreens, a US pharmacy retailer that finds itself at a very appealing point in its turnaround.

If you're ready to give your US market knowledge a proper boost, then subscribe today with no minimum monthly commitment. It's worth it.

US equity markets have traded in muted fashion post the rally we saw after better than expected core inflation data. European markets are mixed this morning, as are Asian benchmarks. Japan’s Nikkei is an underperforming index, with the export-driven economy being weighed down by renewed Yen strength. Chinese benchmarks are marginally firmer after better than expected GDP data out of the region.

On balance we are expecting a flat to marginally higher start for our local bourse the JSE All-Share Index.

The rand is trading a little firmer against a slightly softer dollar in early trade this morning.

Oil prices continue to hover around near term highs, buoyed by supply worries from US imposed sanctions on Russia, and an optimistic demand outlook from OPEC+.

Gold is also trading around near-term highs, supported by the softer dollar.

It is a relatively quiet day on the news front, with perhaps US housing data this afternoon as the most relevant data point for traders to look out for.

Key Indicators: USD/ZAR R18.78/$ | US 10yr 4.61% | Gold $2,710/oz | Platinum $937/oz | Brent Crude $80.80

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.