| Consumer confidence crashed to its lowest in 35 years in second quarter of the year as Covid-19 and the national lockdown exacerbated an already tough situation for South Africans. The survey, conducted by the Bureau for Economic Research for FNB, slumped from an already depressed level of minus 9 to minus 33 in the three months to June. Most households interviewed in the survey expect their finances to continue to deteriorate over the next year - and they won't be spending money on durable goods. That's bad news for the likes of Massmart, which owns a number of discount retail and wholesale chains including Game and Makro. It said yesterday that it had commenced section 189 consultations with unions and stakeholders that could result in as many as 1,800 job cuts at Game. With the tourism and hospitality sectors in particular affected by the lockdown, some businesses are hoping for insurance payouts. However, Santam is standing firm and says that policies covering infectious and contagious diseases don't include business interruption losses that have resulted from government restrictions. Another insurer has lost a similar case in court but Santam still plans to defend its position. Meanwhile, chemicals and fertiliser group Omnia says its restructuring last year has placed it in a stronger position to endure the current crisis. And RDI REIT, the UK and JSE-listed property group, says it is encouraged by the recovery in activity as trading restrictions in Europe are eased. More on all those stories in your newsletter today, as well as a trading statement from gases and welding products group Afrox and intrigue at Quantum Foods after a number of unknown third parties started taking big bets on the poultry group. I hope you have a good day. Stephen Gunnion Managing Editor, InceConnect
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The latest from Ingham Analytics In "Fighting inflation" a purchasing power alternative to equity is examined - the SA equivalent of a Treasury Inflation-Protected Security bond in the US, designed to offset the effects of rising prices by adjusting its principal value as inflation rises. Locally, the Satrix ILBI ETF is worth a look at. This note is designed to accomplish two related objectives - describe how the daily value of the security is determined and illustrate how the incorporation of this asset may prove to be a valuable addition to a portfolio. There is an explanatory addendum on the website for further background detail. Staying with money, "Is the Reserve Bank Father Christmas?" examines the latest Reserve Bank balance sheet - not as chunky or as positioned to muscle in on Covid-19 induced crisis as some of our politicians imagine. The share price of Anglo American has been quite perky this past week so if you haven't seen the note check out "Cold on coal". On the internet front "iQIYI - a s(c) or (t)reaming deal for Tencent?" remains a popular download. | 