The "green finance" industry is a fascinating thing. This is a classic example of how the private sector responds to the opportunities created by government policies. Governments (especially in developed markets where they don't have to worry about things like solving poverty) love dreaming up ways to encourage investment in transition metals that we need for battery technologies.
They encourage this in a variety of ways, like tax breaks and regulations that either reward or force lenders to consider "green" metrics in their lending criteria. Spot the opportunity yet?
We need to know what those criteria are, which means we need researchers and then verification agents who can give a green rating, just like you would get a credit rating. Investment bankers are never far away from a great structuring opportunity, swapping suits for hiking boots and travelling to exotic places to cast their eye over the greenness of it all. From birdies on the golf course to birdies in nature, they will do whatever it takes to close the deal, including liberal use of hand sanitiser to wash away the dirty marks of that coal deal they did just three months ago for a different client.
And of course, let's not forget the consultants - all of them, everywhere.
This is why free markets work. Governments need to direct activity towards where it makes sense for it to go. Free markets will generally do the rest. A great example is Sibanye-Stillwater's debt raise for the lithium project in Finland. It was always begging for a green funding package and that's exactly what happened.
Along with those details, you can get the latest on Adcock Ingram, Cashbuild and Powerfleet this morning, along with an assortment of Little Bites. Read Ghost Bites here>>>
Aside from all the great stuff that you'll find below, remember that today is Friday and thus the DealMakers team is here with their excellent weekly summaries of local M&A activity, local corporate finance and African deals. They also have a piece on legal reforms in sub-Saharan Africa's energy industry.
See you on Sunday for Ghost Mail Weekender! |
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FEATURED: The Trader's Handbook Ep 4 |
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| | IG Markets Episode 4: The markets are as varied as they are beautiful, so it's no surprise that there are various different trading strategies available. Get an overview of the approaches taken by traders in the latest episode at this link>>> |
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FEATURED: Portfolio Construction with AnBro |
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Magic Markets: Picking stocks is great, but what about the portfolio that they belong in? How do you get the position sizing right, or create a coherent strategy? We explore this topic in the latest Magic Markets podcast and transcript. Find it here>>> |
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FEATURED: Unlocking the true value of TFSAs for South Africans |
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| | Satrix: In an article that I could not agree with more, Duma Mxenge talks about the importance of tax-free savings accounts and why they could be rebranded to make it clearer that this should be the cornerstone of an investment journey. Get his views in this excellent article>>> |
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FEATURED: The rise of self-directed investing |
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Investec Podcast: As part of the Investec No Ordinary Wednesday series, you can enjoy Jeremy Maggs in conversation with Tinus Rautenbach, head of Investec's online platform Clarity, as they discuss the rise of self-directed investing. Find it here>>> |
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Ghost Bites: The latest on Adcock Ingram, Cashbuild, Powerfleet and Sibanye, along with various Little Bites in Ghost Bites here>>> |
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| | Ghost Wrap: With thanks to Forvis Mazars, this podcast brings you the latest on Absa vs. Standard Bank, MTN and NEPI Rockcastle, all in just a few minutes in the Ghost Wrap podcast. |
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Unlock the Stock: In the latest session, Tharisa Plc returned to the platform for an update on the company performance and strategy going forward in PGMs and chrome. You can watch the recording here>>> |
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- Nico Katzke of Satrix: The GNU has driven significant optimism around the South African market. To help us understand where this is playing out and how the carry trade protects the rand, Nico Katzke joined me on Ghost Stories. Find it here>>>
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- Magic Markets: What is the right way to prepare for a major sell-down in the market, or even a crash? It's all about research and watchlists, as well as having money that is ready to go into those dips. We discuss these concepts in this podcast>>>
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International Business Snippet: |
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Every dog has its day, especially in the markets. Peloton is that dog, with the fitness company achieving a slight sales increase (0.2%) for the first time in nine quarters. That was enough for the share price to jump 35%, which tells you how bad the expectations were.
To be fair, the market wasn't just looking at revenue. The company cut costs everywhere and managed to reduce the quarterly loss from $241 million to $30.5 million. That was far better than expectations.
Peloton traded at over $160 in the pandemic when people lost their minds and assumed that the rest of our lives would be spent on Zoom calls while riding an exercise bicycle with a tablet attached to it. Today, Peloton trades at $4.55. In case you're wondering, Zoom's decline is from around $560 to just $68 today. Play silly games with valuations and you'll win silly prizes.
A particularly good way to avoid the silly prizes is by reading research by experienced market professionals, like you'll find in our work in Magic Markets Premium. For our subscribers, the investment of R99/month pays for itself. |
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IG Morning Call: daily macroeconomic update |
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US equity markets traded off short term highs last night, led by weakness in the tech sector. Manufacturing and services PMI data out of the region was more or less in line with consensus, drawing the suspicion that weakness last night could be due to profit taking, as well as caution ahead of Fed Chair Jerome Powells address at the Jackson Hole Symposium later today.
European and US index futures are however trading in positive territory this morning, while Asian markets are modestly lower, leading to expectations for a flat start for the JSE All-Share Index today.
The dollar strengthened yesterday while gold has started to correct from all-time high territory. The rand has moved back to test the R18/$ mark.
Oil prices have managed to produce a marginal rebound from oversold territory.
Key Indicators: USD/ZAR R17.98/$ | US 10yr 3.84% | Gold $2,492/oz | Platinum $956/oz | Brent Crude $76.70
The macroeconomic update is based on IG's morning call update |
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