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Good morning Voornaam,

Good morning from a rainy Cape Town! I've started writing a book and I'm looking forward to hiding away for a few hours today in my favourite local coffee shop while I make progress on it.

Speaking of progress, Prosus (and thus Naspers) has launched the all-cash offer for Just Eat Takeaway.com. There are already minority shareholders bleeting about the price, which is a reminder that the winds of change have blown at Prosus. Instead of deploying capital at the top of the cycle, they are looking for opportunistic acquisitions. I like it.

What I don't like is Vodacom's use of the term "normalised" in its reporting. I'm all for distinguishing between constant currency and reported numbers, but our continent would look very different if the currency issues were abnormal. This is very cheeky corporate reporting in my books.

On a busy day of earnings updates, we also saw numbers come in from Adcorp, Astral Foods, Famous Brands, Netcare, Renergen, Tharisa and WeBuyCars. That's a lovely mix to get stuck into this morning.

These details and the Nibbles are available in Ghost Bites at this link>>>

For those interested in Calgro M3, they are back on Unlock the Stock this Thursday at 12pm. With a new CEO in the hot seat, I'm looking forward to unpacking the tricky recent results and the outlook for the company. As ever, attendance is free, but you must register here to be on the webinar and to pose your questions.

Investec is celebrating 100 episodes of their excellent No Ordinary Wednesday podcast, hosted by Jeremy Maggs. This episode looks back on four years that have been anything but dull, while considering the regional trends that will shape the years to come. I always enjoy these episodes and I highly recommend making time for them. Find it here>>>

As a break from listed company and macroeconomic news, you can enjoy Dominique Olivier's latest piece on the IP web related to Spider-Man. Sony and Marvel (part of Disney) have been at the negotiating table several times, showing just how much value is attached to iconic characters and the related opportunity to make money off them. Enjoy it here>>>

Have a great day!

SATRIX: A Day in the Life of a Portfolio Manager at Satrix

Ever wondered how the nuts and bolts of ETFs work? What goes into index tracking and making sure that it is achieved at the lowest possible cost? And are all indices created equal from a complexity perspective? Lauren Jacobs (Senior Portfolio Manager at Satrix) shows you what a day in the life of a portfolio manager looks like. Get ready to learn and be inspired at this link>>>

GHOST WRAP: April's droppers and whoppers

There may have been many public holidays in April, but that didn't stop the market from reacting to the broader geopolitical turmoil. With recession concerns as a key theme, which stocks did well and which ones delivered a nasty drop? This podcast is an overview of recent big share price moves among larger local companies on the JSE, revealing some interesting trends. Ghost Wrap is brought to you by Forvis Mazars. You can find the recording and the transcript at this link>>>

GHOST BITES - Making sense of SENS on the local market

An interesting day of news saw numbers come in from Adcorp, Astral Foods, Famous Brands, Netcare, Renergen, Tharisa and Vodacom. Prosus has moved ahead with the all-cash offer for Just Eat Takeaway.com. Get the details in Ghost Bites>>>

Unlock the Stock - ASP Isotopes

In the 52nd edition of Unlock the Stock, ASP Isotopes joined the platform for the first time to give investors insight into the company before it lists on the JSE later this year. The recording of the management presentation and interactive Q&A is available at this link>>>

DOMINIQUE OLIVIER - Sony's stuck in a Spider-Man spiral

Sony, once a post-war electronics wunderkind best known for pioneering devices like the Walkman and the Trinitron TV, now finds itself tangled in a web of its own making – one spun not from copper wire or silicon wafers, but from red spandex and Hollywood contracts. Dominique Olivier explains why the IP around Spider-Man is so complex in this entertaining piece>>>

INVESTEC PODCAST: Episode 100 - a world in flux

From a global pandemic to fractured supply chains, energy shocks, inflation spirals, rate hikes, AI disruption, war, and geopolitical realignment - the last four years have been anything but dull. The 100th episode of No Ordinary Wednesday is a discussion on regional trends that will shape the years to come. Get the insights in this podcast>>>

International Business Snippet:

At the JPMorgan annual investor day in New York, Jamie Dimon gave his views on what's going on out there. He referred to central banks as being "complacent" at a time of huge deficits. He also described the entire market as having an "extraordinary amount of complacency" based on the rebound in stock prices despite the tariffs. You can spot what his current favourite word is.

It's important to remember that these comments come at a time when Moody's has downgraded US credit, with Dimon believing that earnings estimates for S&P 500 companies will fall further.

So, not exactly a bullish view then. He brought up the word "stagflation" - a concept understood by South Africans, as it means a recession combined with inflation. The current crop of US investors barely even have recession in their vocabulary. That's exactly the problem, as markets are being driven by an overwhelming belief that the good times will continue forever. History has taught us otherwise, which is why caution is so important.

This week in Magic Markets Premium, we've covered Novo Nordisk. Straight after we released our report, the news broke of a chance in CEO at the company, so that gives you a great indication of how this has lost its shine. Does that mean that it is finally a buy? As our subscribers will find out in the research, the US pharma sector is treacherous, but is certainly filled with opportunity.

Magic Markets: Mesh.Trade - Unlocking Private Markets

Magic Markets: As the recent trend in IPOs and delistings on public markets tells us, an increasing number of companies are looking to private markets for their capital raising needs. This means that retail investors are being shut out of these opportunities, which is particularly problematic as these early-stage opportunities usually offer the highest potential returns.

Mesh.Trade is committed to increasing access for investors, which is why the platform is designed to enable issuers to raise debt and/or equity funding.
Connie Bloem joined us to talk about why access to good quality private assets is so important in the South African market. To learn more, listen to this podcast>>>

Macroeconomic indicators and IG Markets macro update

US index futures point to a subdued opening today following yesterday's gains, while European futures signal a robust start after closing flat in the previous session. With minimal economic data releases today, market participants will focus primarily on developments regarding trade agreements.

In Asia, China made headlines by reducing key benchmark lending rates for the first time since October. Major state-owned banks also decreased deposit rates as authorities implement monetary easing measures to support the economy.

The dollar experienced broad selling on Monday following Moody's downgrade of the US sovereign rating last week due to deficit concerns. Attention now shifts to a pivotal vote in Washington regarding President Trump's comprehensive tax reduction plan.

The dollar is now trading within a narrow range today, constrained by the Federal Reserve's economic caution and as US lawmakers move closer to passing legislation expected to increase the national fiscal deficit.

The South African rand continues to move sideways, with the JSE All-Share Index expected to open quietly after significant gains yesterday.

President Trump announced that following his conversation with Russian President Vladimir Putin on Monday, Russia and Ukraine will begin immediate ceasefire negotiations. However, the Kremlin indicated this process would require time, and Trump suggested he wasn't prepared to join European partners in imposing additional sanctions on Moscow.

China's Russian crude oil imports decreased by 12.9% in April compared to the previous year, although oil prices remain stable today.

Gold prices declined slightly on Tuesday, as a marginally stronger dollar and positive sentiment regarding a potential Russia-Ukraine ceasefire reduced demand for safe-haven assets.

Key Indicators: USD/ZAR R18.10/$ | US 10yr 4.45% | Gold $3,211/oz | Platinum $1,007/oz | Brent Crude $65.56

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.