As we head into the mini-budget next week, what should you be looking out for from government? With the sun shining and the electricity on, will the positive vibes continue? To help set the scene, Investec's No Ordinary Wednesday podcast featured Annabel Bishop and Tertia Jacobs in conversation with Jeremy Maggs. It's a great show that you should make time for. Enjoy it here>>>
Continuing the emerging markets theme and the insights from Investec, make sure you've given some thought to the market in India and the latest structured product from Investec. In this article, they explain why India is interesting at the moment. The link includes my recent podcast with Brian McMillan that discusses the structured product in detail.
In company news, I've got to say that there are some positive signs in our economy that are starting to filter through into company results. The somewhat spectacular numbers from Clicks are certainly worth a read, but I'm not sure a direct line can be drawn from the GNU and improved sentiment. To see that line, you need to look at Cashbuild and Nu-World, a company that you won't often see in the headlines. Spear REIT also added to the positive narrative around South African business sentiment.
It can't all be good news, of course. Infrastructure challenges are still there, weighing down our mining industry. You can see the impact on a company like Afrimat, as well as the Anglo American group of numbers who released production and sales updates. This includes Anglo American Platinum and Kumba Iron Ore. If you're still in denial about lab-grown diamonds, I suggest you take note of the production decreases at De Beers in response to market conditions - a nice way of saying that lab-grown diamonds have taken a chunk of market share.
Datatec is also worth a read, with super strong numbers released into the market. You can get all these updates and a variety of Nibbles in Ghost Bites here>>>
It's a lighter week of updates from the team at DealMakers, focusing on deals in Africa in the M&A and debt financing space. You can find that here.
As you plan your diary next week, make time for my great friend and Magic Markets partner Mohammed Nalla and his webinar with IG Markets South Africa on Tuesday evening. He will be presenting on the US elections and how they might shape markets and South Africa. Take advantage of these insights by registering for free here>>>
And while we are at it, the latest Magic Markets episode is a look at market sector rotations and what we can learn from them. This taps into the work that Moe does for his institutional clients, so it's a great way to understand how sector trends drive portfolio positioning in the market. Brought to you by Investec, you'll find it here>>>
Have a great day - and we will see you on Sunday for Ghost Mail Weekender! |
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THE TRADER'S HANDBOOK: Insights and strategies for currency markets |
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| | In this episode of The Trader's Handbook, Shaun Murison from IG Markets South Africa joined me once more to explore the fascinating and often misunderstood world of forex trading.
We broke down the complexities of currency pairs, leverage, and volatility while dispelling common misconceptions about the risks involved.
The podcast and detailed transcript are available here>>> |
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INVESTEC: India a gateway to outsized emerging market opportunities |
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As the global economy shifts from a high inflation and high interest rate environment into the next interest rate cutting cycle, global investors are casting their net wider in their search for returns. India is an attractive opportunity. Investec explains why in this article>>> |
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FEDGROUP: Don't let the markets haunt you |
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| | In the month of Halloween, it's great to learn about how Fedgroup achieves solid returns with reduced levels of risk, making the whole experience far less frightening.
This is a topic close to my heart of course, with important topics like diversification and the use of alternative assets.
The podcast and detailed transcript are available here>>> |
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SATRIX: Does factor investing work? |
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Satrix: Factor investing takes ETFs to the next level. Instead of tracking a stock index (like the JSE Top 40), these ETFs have a set of rules based on investment fundamentals like valuation multiples or even levels of debt. The sky is the limit with the creativity that goes into these factors, but do they actually work?
To unpack these types of ETFs and the thinking behind them, Nico Katzke of Satrix joined me for an insightful discussion. Find it here>>> |
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Ghost Bites - local company news: |
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Ghost Bites: The latest on Afrimat, Anglo/Amplats/Kumba, Cashbuild, Clicks, Datatec, Mantengu Mining, Nu-World, Spear REIT and numerous Nibbles in Ghost Bites here>>> |
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Investec podcast: mini-budget preview |
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| | In the latest episode of the No Ordinary Wednesday podcast, Investec Chief Economist Annabel Bishop and Treasury Economist Tertia Jacobs discuss the Finance Minister's priorities ahead of the mini budget on 30 October. Enjoy it here>>> |
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International Business Snippet: |
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The proposed merger between Tapestry and Michael Kors is dead. The competition authorities had their way, with the judge ruling in favour of the FTC and blocking the merger. The deal would've combined America's two largest luxury houses, giving them a better chance of competing against European powerhouses. Capri's stock plummeted 50% after the news emerged and Tapestry was up 10%. I can only laugh at the FTC describing this as a win for the affordability of handbags for people in their daily lives. Apparently, in the US, access to luxury bags is practically a human right!
If only Mercedes-Benz could enjoy the same kind of demand, with operating profit down 64%. I'm sorry that I keep beating this drum, but you just cannot ignore what is happening in the car industry right now.
Our latest research in Magic Markets Premium is on Netflix. As the clear winner in the streaming wars, this has become a great business. Is it great enough to justify the valuation? You'll find out in the latest report for our subscribers this week. |
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Magic Markets: GNU follow-through - are businesses changing? |
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| | Magic Markets: GNU-phoria in South Africa is now a few months old. Loadshedding is becoming a distant memory. Sentiment has clearly turned positive, but is this making a difference in day-to-day business decisions around capital allocation decisions? Dino Zuccollo and Jonti Osher of Westbrooke joined us for this important discussion. Find it here>>> |
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IG Markets Morning Call: daily macroeconomic update |
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US equity markets traded mixed overnight, although we have seen yields moving lower along with the US dollar. Markets continue to asses possible outcomes of the upcoming US elections and pace of monetary easing this year.
European index futures are trading mixed this morning while Asian benchmarks are marginally higher.
The JSE All-Share Index is expected to open modestly lower this morning, and the rand has managed to claw back some of its losses against the dollar.
Industrial metals are mostly lower on demand side assumptions from China after recent stimulus efforts lose their lustre.
Gold is marginally lower although remains set for a weekly gain.
Oil prices fell yesterday ahead of new ceasefire talks in the Middle East.
Key Indicators: USD/ZAR R17.68/$ | US 10yr 4.18% | Gold $2,728/oz | Platinum $1,013/oz | Brent Crude $74.30
The macroeconomic update is based on the morning call update by IG Markets |
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