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Good morning Voornaam,

The grocery retail industry has been a wonderful example of stock picking in the past year. Shoprite has led the way with an 18% increase over 12 months, with Spar just behind at 16% as that recovery has started to gain momentum. Pick n Pay has shed nearly 40% of its value, with that recovery barely in its infancy. As for Woolworths, it's been a slow and painful decline of 24%, with limited bullishness around the GNU finding its way into that share price.

The reason? The Woolworths businesses are struggling. Simple as that. Food is still doing alright at least, but the rest of them are taking significant strain and that includes the operations in Australia. If you thought getting rid of David Jones was the end of the thunder down under, you're mistaken. Along with the latest from AECI, Altron, MTN Nigeria and Shaftesbury, you'll find all the details on Woolworths in Ghost Bites at this link>>>

The retail industry really sits at the core of the South African economy. To help unpack the reasons for the GNU uptick in our market and where that positive sentiment might continue to land, Nico Katzke of Satrix joined me on a podcast. We also talk about how the carry trade protects the rand - a really important technical thing to understand about our market. Enjoy it here>>>

If you missed it yesterday, be sure to check out episode 3 of The Trader's Handbook with IG Markets South Africa. In the show, we review some of the trades in my demo account, including Mr Price, Richemont and Prosus. We also discussed how to go about choosing a brokerage account, along with many other elements of trading. Listen to it at this link>>>

And for enthusiasts of global opportunities (which quite frankly should be everyone, since you can give your money a passport and send it to explore new lands quite easily), the latest Magic Markets podcast answers the question: is the automotive sector a good investment? Using the examples of Ford, GM, Toyota and BMW, we make the answer quite clear at this link>>>

Enjoy learning more about the markets this morning!

FEATURED: The Trader's Handbook Ep 3 (NEW)

IG Markets Episode 3: For a review of the trades in my demo account and a discussion on how to choose the right brokerage, I was joined as usual by Shaun Murison of IG Markets South Africa. Learn about trading at this link>>>

FEATURED: Ghost Wrap

Ghost Wrap: Get the latest on Balwin, British American Tobacco, Mr Price and Vodacom, all in just a few minutes in the Ghost Wrap podcast.

FEATURED: Investec Structured Products new product applications close on 8 August

Investec Structured Products: Applications for the Nikkei 225 Autocall and Euro Stoxx 50 Autocall close on 8 August. Don't miss the opportunity to learn about these offshore investment opportunities.

FEATURED: Is the automotive sector a good investment?

Magic Markets: Just because there's a brand in your garage, should it be in your portfolio? If most people buy cars when they can afford them, does that make automotive companies a good investment? Find out in this podcast>>>

Local company news:

Ghost Bites: Get the latest on AECI, Altron, MTN, Shaftesbury and Woolworths, along with tons of Little Bites including various mining updates, in Ghost Bites here>>>

Unlock the Stock: Attacq and Capital Appreciation returned to Unlock the Stock to present the recent numbers and take questions from the attendees of the live event. Learn about both companies by watching the recording here>>>

Podcasts:

Magic Markets: Even down here in South Africa, we need to keep a close eye on US elections. In this podcast, Mohammed Nalla shared his views on Democrat vs. Republican policies and how they can impact us, along with how the Trump Trade works. Find it here.

Investec No Ordinary Wednesday podcast: The market may be unpredictable, but your investment strategy doesn’t have to be. Investec Investment Management experts share their insights on what approaches are winning, common mistakes investors make, and why staying the course is important. Enjoy it here>>>

International Business Snippet:

Meta released results yesterday and traded 7% higher in after hours trade, so that already gives you a flavour. Both earnings and revenue came in ahead of estimates, with second quarter revenue growth of 22%. The benefits of cost cutting continue to come through, with operating income up 58% and operating margin expanding from 29% to 38%. When these tech giants choose to make profits instead of throwing everything at new projects, they truly make a fortune.

And that's not to say that the company has walked away from new projects. No, they are just taking a more measured approach. For many, Meta is building out one of the best AI strategies in the game, with Zuckerberg saying that Meta AI is on track to be the most used AI assistant in the world. Considering how easy it is to ask Meta AI something by mistake in WhatsApp, I treat that claim with some skepticism.

Our latest Magic Markets Premium report covers Take-Two Interactive, the gaming group that has grown substantially in the past couple of decades. To get access to this research and the rest of the vast library, subscribe to the platform here.

IG Morning Call: daily macroeconomic update

A surge in US chipmakers and further suggestion that the Federal Reserve will ease rates in September is helping fuel gains in global markets. Positive market sentiment is further supported by the expectation that Chinese policymakers will soon look to provide more stimulus to the region.

The dollar has softened along with US Treasury Yields.

The rand has firmed, supported by the weaker dollar and gains in key export commodity prices.

The JSE All-Share Index is expected to open firmer in lieu of improved short term risk appetite.

Oil prices have rebounded considerably on escalating tensions in the Middle East.

Gold has moved closed to all-time highs supported by a weaker dollar.

The Bank of England concludes its Monetary Policy Committee (MPC) meeting today and is expected to lower benchmark lending rates.

Key Indicators: USD/ZAR R18.23/$ | US 10yr 4.05% | Gold $2,444/oz | Platinum $976/oz | Brent Crude $81.45

The macroeconomic update is based on IG's morning call update