Boxer lives up to expectations

Good morning Voornaam,

Happy Wednesday! I feel like we can measure this week in dog years, honestly.
It feels odd quoting a Russian politician in the context of American politics, but here goes: "There are decades where nothing happens; and there are weeks where decades happen." - Vladimir Ilyich Lenin.
At least there was some interesting company news yesterday to distract us. On the retail side, Boxer came through with solid numbers that have met market expectations. That's exactly the right start to its life as a listed company. Over at Pick n Pay, things are improving in like-for-like sales as the core metric. Although total sales will be impacted by store closures, they are at least making progress.
Canal+ really does want to get this MultiChoice deal done despite the recent financial performance of that group. They've jumped through hoops to design a suitable structure for the South African subsidiary that will meet the various regulatory and legal requirements. Now it comes down to whether the Competition Commission gives it the green light, along with numerous other regulators across various countries.
In other news, Bowler Metcalf's numbers were decent but not as exciting as they initially appeared to be. In property, Sirius Real Estate has acquired a business park in Germany.
Get all the important details with just one click in Ghost Bites>>>
With all the focus on retail recently, it was obvious to me where I needed to focus in the latest Ghost Wrap podcast. Featuring a summary of all the retail results released in January and at the start of February, this is a great way to catch up on all the action in that sector. Ghost Wrap is made possible by Forvis Mazars in South Africa and you can enjoy the podcast (and transcript with charts) at this link>>>
Speaking of retailers, this sector really sits at the forefront of sustainability concepts. From food safety through to packaging and supply chain strategies, there's so much to consider in that space. Instead of a tick-box exercise, Kevin O'Brien (Group Sustainability Executive at Spar) treats it as an opportunity to embed the right practices throughout the group. He shares his views and approach with us in this great discussion>>>
Have a lovely day!

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GHOST STORIES: Sustainability, the Spar way

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MAGAnomics: Trump and the global economy

International Business Snippet:

Alphabet shareholders are licking their wounds today, with the share price down 7.6% in after-hours trade. The fourth quarter results missed revenue expectations and narrowly beat earnings expectations. Although YouTube remains a strong point, Google Cloud revenue seems to have disappointed the market. Of course, the company needs to invest a fortune in capex in the AI space, so the slower growth comes at a time when a ton of cash is going back into the business rather than to shareholders. Of all the Big Tech players, Alphabet is the least appealing to me.
Over at Spotify, the market celebrated the company's first profitable year by sending the share price 13% higher. This takes the 12-month return to a spectacular 179%! There was a time when the model faltered, particularly with huge investment in podcasts and an associated issue in margins. Those days are behind us now, with Spotify winning in music streaming in the same way that Netflix has emerged as the video streaming champion.
This week, our research in Magic Markets Premium is on 3M as a company with a proud history of innovation in the industrials space. Having previously lost its way, a strong turnaround effort is taking place and is already showing strong results. Our subscribers can enjoy our detailed work on this company, complementing some of our other recent reports with similar turnaround opportunities.

Magic Markets: AI, Trump and turnarounds

Macroeconomic indicators

Earnings from tech giant Alphabet after the bell missed consensus and weighed on Nasdaq100 and S&P500 futures. European and Asian benchmarks are mostly lower this morning as well, taking their lead from the US.
Markets are seeing China’s retaliatory response to Trump tariffs as conservative for now. The world’s second largest economy announced new levies on the US which amount to roughly $14bn.
Trade angst does however still persist in the marketplace. Markets are also perplexed at Trumps recent comments that the US would like to take over the Gaza Strip to develop the region’s economy.
The dollar has softened overnight along with US Treasury Yields.
The rand remains firm, although we are expecting a modestly softer start for the JSE All-Share index today, taking its cue from global benchmarks.
Gold has surged to new highs once again in lieu of the softer greenback and trade uncertainty still prevalent.
Oil prices have stabilised from their recent decline as markets balance higher US inventory of the commodity against a push from the US president to further interrupt Iranian supply to the market.
Traders will want to keep an eye out for ADP Non-Farm Employment Change as well as ISM Service PMI data as potential high impact catalysts for markets today.
Key Indicators: USD/ZAR R18.68/$ | US 10yr 4.51% | Gold $2,858/oz | Platinum $975/oz | Brent Crude $75.90
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.