Naspers Stock Split | UK Yields at Worst Levels this Century

📌 Key Themes This Week 📊 Naspers share split – AGM approves a 5-for-1 split to make shares more affordable for smaller investors. 💬 Jackson Hole update – Jerome Powell's last appearance as Fed Chair, shifting focus from inflation to jobs. Markets pricing in September & December rate cuts with high certainty. 💸 Trump & the Fed – Trump fires Fed Governor Lisa Cook ❌ and pushes to pack the Fed with rate-cut friendly members. 🇺🇸 Intel stake – Trump administration takes a 10% stake in Intel via the Chips Act, raising questions about "state capitalism." 📉 Dollar weakness – Dollar index slides, Rand strengthens to R17.44, risk-on sentiment in global markets. 💷 UK debt crisis – 30-year gilt yields at levels last seen in 1998 (5.6%). Mounting debt costs threaten stability. 📈 Company Results & Market Moves 🏫 ADvTech* Strong results: 5-year CAGR → Dividends +24%, Revenue +13%, EPS doubled. Enrolments still growing vs. competitor Curro shrinking. Expanding into tertiary education in Ghana 🇬🇭. Solid valuation: PE ~15, dividend yield ~3%. 🚢 Grindrod Decent numbers, disposing businesses to strengthen balance sheet. Awarded 3rd-party rail access via Transnet 🚂. Cheap valuation: PE ~8, Price/Book ~1. 🛢️ Sasol Results stronger than expected: Free cash flow R12bn (up from R7bn). Stock rallied past R120, eyeing R140. Needs stronger chemical markets, higher oil & weaker Rand for tailwinds. ⚙️ Nvidia (results pending) Market eagerly awaiting numbers. Results due Wednesday aftermarket. 🪖 Rheinmetall German defence stock up +160% YTD on European defence demand. Valuations stretched (PE 89 vs. mean 23). Possible overheated trade. 🌐 Macro Watch 📉 US inflation & rate cuts – Markets expect two cuts in 2024, possibly November too. Powell less worried about inflation at 2.5–3%. 🏦 Tariffs & inflation – Spread over time, reducing immediate shock but sustaining price pressure. 💵 Debt & inflation – Inflation helps deflate $30T US debt mountain faster. 💷 UK bonds – Debt costs rising sharply, pushing the UK into deeper fiscal stress. 📌 Quick Hits 📉 S&P 500 at 23x earnings – Historically, this leads to flat 10-year returns (±2%). 💱 Dollar trend – Weakening outlook continues, aligning with Trump's economic policy. 🇩🇪 Rheinmetall boom – Defence spending pushes stock sky-high, but risks of overheating. 📚 ETF database update – Now includes active ETFs 👉 justonelap.com/ETFdatabase. 🎥 Power Hour – Live session Tuesday 17:30 SA time, replay available later. 🎙️ Host: Simon Brown 📅 Recorded: Tuesday 27 August 2024 💡 Powered by Standard Bank & Shyft app 👉 Markets are on a risk-on rally 🚀, but with high valuations, debt risks, and political interference at central banks, caution remains the watchword. Simon Brown * I hold ungeared positions. All charts by KoyFin | Get 10% off your order