Jsedirect With Simon Brown

Offshore / US jobs data slows. Likely means tapering not just yet even as ECB starts talking tapering. / New China restriction, kids gaming limited to one hour a day on Friday, weekend days and public holidays / Pfizer has recognized over $10 billion in profits from the COVID-19 vaccine alone, making it the best drug introduction in history. / After hurricane Ida oil recovery begins with ports and refineries restarting but most production in the Gulf of Mexico is still shut. / Chip shortage holds back German car sales in August Local / SA trade surplus at R37bn July vs R55bn June. YTD R290bn. / Mediclinic plans to go green in R2.2bn renewable energy deal / Results; Murray & Roberts / Results; Discovery / Results; Implats / Results; Aspen

Simon Shares Jackson Hole Bonang Mohale and his Serialong trust converts a Purple Group* (JSE code: PPE) loan into 11.46% shares in the group ADvTECH* (JSE code: ADH) Stadio (JSE code: SDO) Cashbuild (JSE code: CSB) Sun International (JSE code: SUI) MAS Real Estate (JSE code: MSP) Motus (JSE code: MTH) Woolies* (JSE code: WHL) Is this Woolworths’ attempt at Athleisure ? Yikes! 😬 Crop Top : R249.99 Leggings : R299.99 I am flattered they think I,their customer, is a 20 year old Instagram Fitness star 🤣🤣 pic.twitter.com/B4xsTJ36ho — Moms 💖 investing (@mommy_moneyza) September 1, 2021   * I hold ungeared positions. Upcoming events; 02 September ~ JSE Power Hour: Picking the next winning stock 14 October ~ Investment Fundamentals with Keith McLachlan

Offshore / Jackson Hole. Powell says nothing new. / TSMC, the world's largest maker of semiconductor chips, says it's raising its prices by about 20% / Hurricane Ida heading for the Gulf of Mexico, shutting down oil production. / China reportedly weighs ban on U.S. IPOs from domestic tech companies with sensitive data Local / Bonang Mohale and his Serialong trust converts a Purple Group loan into 11.46% shares in the group / Unemployment 34.4% / South African GDP rebased. The economy is 11% larger than previously measured. It is still the second-largest economy in Africa, after Nigeria. / National treasury says KZN July violence will take 0.7%-0.9% off 2021 GDP. / Sibanye Stillwater results / Woolies results

Simon Shares Jackson Hole South African GDP rebased. The economy is 11% larger than previously measured. It is still the second-largest economy in Africa, after Nigeria. South Africa unemployment 34.4%. National treasury says KZN July violence will take 0.7%-0.9% off 2021 GDP. New oil & copper ETNs Upcoming events; 02 September ~ JSE Power Hour: Picking the next winning stock 14 October ~ Investment Fundamentals with Keith McLachlan

Offshore / New Zealand going into lockdown, the world is getting vaccinated but the pandemic is far from over. / Pfizer expected to get full FDA approval for its covid vaccine this week. A whole new business (covid jabs & mRNA possibilities). / Tesla wants to build an AI robot / Jackson Hole this week / China securities regulator signals willingness to work with the US on audits Local / South Africa inflation lower at 4.6% in July 2021. / Sasol results / Shoprite / Massmart deal / ARB Holdings results / Metair results

Simon Shares JSE is broken. 100 MW gazetted. Renergen* (JSE code: REN) update. South Africa inflation lower at 4.6% in July 2021. Tencent (Hong Kong code: 700) results. Resource stocks ex-div. But still lots of pain. Super BHP Group* (JSE code: BHP) results. New Clean energy and water ETNs listed. * I hold ungeared positions. Upcoming events; 19 August ~ JSE Power Hour: BEE shares and the JSE 02 September ~ JSE Power Hour: Picking the next winning stock 14 October ~ Investment Fundamentals with Keith McLachlan  

Offshore / US inflation comes in as expected / Britain's GDP grew by 4.8% in the second quarter of this year, leaving the economy just 2.2% below its pre-pandemic level / Google employees who work from home could lose money / US infrastructure bill moving forward / India to unveil US$1.35trillion infrastructure bill Local / 100mw power generation laws gazetted / Naspers / Prosus swap is unconditional / Strong Merafe results / MTN results and Sanlam tie up / Nedbank results / Exxaro and Thungela results

Offshore / US GDP 6.5% , below expectations but the economy now larger than pre-pandemic / US moving forward with an infrastructure bill / The U.S. debt ceiling officially became operative again on Sunday after a two-year suspension / Amazon results see stock down 7% / Alphabet results & $50bn buyback / Microsoft results, LinkedIn does +$10bn Local / Tencent woes hit JSE (but all-time closing high on Thursday) / Results; Anglo Platinum, Kumba Iron Ore and Anglo American / Liberty2Degrees results / ArcelorMittal South Africa results / Treasury considering access to retirement savings

Simon Shares Wild week for Naspers (JSE code: NPN), Prosus (JSE code: PRX) as Tencent (Hong Kong code: 700) got slapped down by the Chinese government. We're back at level 3, adjusted. Alcohol sales are allowed and Distell (JSE code: DGH) put out another great trading update. No doubt better if no alcohol bans, but the argument that your industry is under threat wears thin after such an update. President Ramaphosa also announced the return of the pandemic grant to the unemployed at R350 a month until March 2022. This pays to some 9.5million South African and means just over R3billion a month into the economy. How do we pay for it? Dividend tax on these super dividends. Apple $21.7billion in profits, almost doubling the previous year. Alphabet nearly tripled its profits to $18.5billion as advertising revenue grew 69%. Microsoft profits hit $19.1B, up 42% from the previous year. The market capitalization of Amazon, Apple, Facebook, Alphabet, and Microsoft is now over 30% of the entire S&P 500 index and over

Offshore / New closing highs for S&P500 & Nasdaq. But Russel2000 is lagging. / Apple delays back to the office to October / Twitter and Snap - good results / China regulator bars Tencent from exclusive rights in online music / Big results due this week; Apple & Amazon. So far reported results have been very strong. Local / Rioting impact, retail about 8% of store space impacted. REITs bigger concern. / Local inflation drops / Anglo Americana and BHP production updates / City lodge sells East African assets / Cashbuild update / Distell update

Simon Shares We now have updates from listed retailers as to the damage caused by last weeks rioting. Chantal Marx ran the data and says we saw almost 1,700 stores looted or closed due to the rioting and this is about 8% of the retailers' local footprint and some 5% of global footprint. This is a significant number, but considering many are open for trade again, with many opening last weekend already. The impact on earnings is likely to be very modest, if at all. PwC expects last weeks riots to take about 0.4% off local GDP for 2021. They already had a low expectation of under 3%, but that drop of 0.4% does illustrate how listed retailers may be okay, the real pain is in the unlisted and especially the small one-off store. Local CPI dropped a little in June to 4.9% (5.2% in May). The population of South Africa was estimated to be 60.14million at mid-year 2021, an increase of about 604,281 (1.01%) since mid-year 2020. Stellar production updates from Anglo American (JSE code: AGL) and BHP* (JSE code: BHP). The

Offshore / US inflation, again above expectations / Delta airline results show travel returning / US bank earnings as previsions put back into the income statement / Netflix looking into gaming / QoQ China's GDP increased 1.3% in Q2, 7.9% YoY Local / Rioting impacts as listed companies report details / South African Special Risks Insurance Association (Sasria) will cover claims / Standard Bank taking out Liberty Holdings / Very strong Richemont update / Tongaat results / Steinhoff increases settlement offer

Simon Shares I'm recording Wednesday afternoon and the violence of the past week seems to be abating, certainly in Gauteng. It has been a horror week for our country and most importantly; look after yourself if you can somebody else as well and above all else, be kind. US CPI YoY 5.4%. Core YoY 4.5%. Both ahead of expectations. A very strong production update from Pan African (JSE code: PAN) and their 15ha blueberry farm. OPEC+ seems to have reached a compromise between Saudi Arabia and UAE that should see an OPEC+ deal possible. US earnings season has kicked off and is expected to be the best ever - and it needs to be with S&P500 and Nasdaq100 at all-time highs. Gold US$1,825. Lost in all the rioting is another two weeks of level 4 adjusted lockdown, albeit restaurants can seat customers. Upcoming events; 22 July ~ JSE Power Hour: Power of savings We're starting to see SENS announcements about the impact of the rioting. The worst-hit so far seems to be Cashbuild (JSE code: CSB), they have 36 stores dir

Offshore / US ten year back at 1.36% after peaking at +1.72% in March / Jeff Bezos has stepped down as Amazon CEO / OPEC+ couldn’t reach an agreement / Fed minutes tell us nothing new, except inflation is higher/faster than they expected / US extends the economic blacklist of Chinese companies / China wants pre-IPO review of all new listings that have large user data Local / Imperial delisting offer at 6600c / Sibanye Stillwater bearish on palladium, bullish on platinum & rhodium / MultiChoice hit with R63billion tax bill in Nigeria / Nedbank WFH policy, 60% in office ie: 2 days WFH each week / Prosus shareholders approve share swap

Markets are as quiet as the street of Jozi, so this week a list of my favourite podcasts, the focus is offshore. I'll return and look at local in a few weeks. Upcoming events; 13 July ~ How to use ThinkMarkets Tools 22 July ~ JSE Power Hour: Power of savings Favourite podcasts; Planet Money Motley Fool Money Disciplined Investor Odd Lots Freakonomics Radio Michael Covel’s Trend Following Radio

Offshore / US The unemployment rate edged up to 5.9% in June / US home prices rose by 14.6% in April, the largest gain in 30 year / S&P 500 closes green 7 days in a row, record is 8 days (US markets closed Monday) / RobinHood proposed listing ~ $40bn valuation / Didi Chuxing lists on NYSE, market cap $69bn & Chinese regulator blocks new accounts Local / Modest Q2 for JSE, TOP0 -1.2% (+11% YTD), Fini15 +6.8% in Q2 / SARB turned 100 last Wednesday / May saw another +R50billion trade surplus tax receipts / Invicta results / AdaptIT shareholders vote for 700c Volaris delisting offer / Etion results. The story is they selling LAWTrust business for R245million when the market cap of the entire company is R22million. CEO says plans to return value and delist

Simon Shares Level 4 lockdown. Remember the podcast of last week when I delved into the various leisure socks. Argent (JSE code: ART) results. Long a stock not worth covering or owning, but they've changed things up the last few years. Invicta (JSE code: IVT) another successful turnaround and really good results. JSE (JSE code: JSE) trading update, no surprise earnings under pressure. Nike (NYSE code: NKE) results absolutely crushed it last week. Revenue +96%. Anchor Capital published a note showing that the US had increased the number of US$ in circulation (M3) has gone up 33% over the course of the pandemic. Absa’s Q2 2021 manufacturing survey shows very positive manufacturer confidence. EOH (JSE code: EOH) new board suing founder Asher Bohbot for R1.6billion. A US judge kicks out the Federal Trade Commission's (FTC) antitrust case against Facebook. It was requesting that Facebook sell their Whatsapp and Instagram businesses. They can bring the case back again, but the bigger issue is antitrust cases again

Offshore / Gold a flat week after the previous weeks sell-off / S&P500 and Nasdaq back at all-time highs after the previous week's aggressive sell-off / Global shipping remains under severe pressure as Chinese port shut after a covid-19 outbreak / US gets an infrastructure bill, but maybe not. It’s messy Local / Omnia results paid special dividend and SARS dispute / Growthpoint trading update / Old Mutual to spin off third of their Nedbank holding / May CPI 5.2% with core inflation at 3.1% / +50s can register for vaccines from Thursday / Absa’s Q2 2021 Manufacturing Survey shows rising manufacturer confidence

Simon Shares The announcement by the president that business will be able to build up to 100 megawatts of power without constraints is huge. Aside from the fact that the current limit is 1 megawatt, it will have three direct impacts; Estimates are that at least 4,000 megawatts can be built in 18-24 months. That is level 4 load shedding. So bye-bye load shedding. Tens of billions in spend aiding the construction and allied industries. Savings when using your own power. Goldfields (JSE Code: GFI) is building a 40 megawatt supply for South Deep that they estimate will save them R120million a year. Annual consumer price inflation hit a 30-month high in May, rising to 5.2% from 4.4% in April. Core inflation 3.1% and at the bottom end of the range. Renergen* (JSE code: REN) has spooked the market as they announce a capital raise "raising the proceeds for the completion of the Phase 2 studies of the Virginia Gas Project". Details by the end of the week, but this isn't a massive surprise. Startup miners always ne

Offshore / Markets spooked by FOMC statement / Gold under pressure / Brent crude slips but holding above $70 / TikTok owner ByteDance reports $2.1bn loss / Krispy Kreme returning to market with IPO / Adobe results Local / Rand under pressure / Capitec expects half-year earnings to rise 292% / Sephaku update and PPC results / Mediclinic to produce own power / Alexander Forbes results, retrenchments almost back to ‘normal’ levels / Stricter lockdown