Trump Trade Tariffs & Global Market Impact:
- Initial tariffs of 10% (China) and 25% (Canada, Mexico) announced but later revised.
- U.S.-Canada relations strained, with Warren Buffett warning of reputational damage.
- Global negotiation shifts—China, Russia, and Europe eye opportunities.
- Continued U.S.-China trade tensions, including semiconductor restrictions and rare earth tariffs.
- Market volatility expected; long-term investment strategies recommended.
Investment Strategies Amid Uncertainty:
- Volatility is high—avoid panic selling.
- Keep cash reserves for opportunities (buy the dip cautiously).
- Long-term focus: presidential terms are temporary, investments span decades.
Interest Rate Decisions & Market Reactions:
- Bank of England expected to cut rates.
- U.S. Fed Chair Jerome Powell pauses rate hikes due to inflation concerns.
- South Africa’s MPC cuts rates, prime now at 11%.
- Analysts predict one to two more rate cuts in 2024.
Gold Market Strength & Outlook:
- Gold price hovering near $2,900, with potential to break $3,000.
- Supply constraints—minimal new gold mining projects.
- Strong central bank purchases—1,000+ tons bought in 2023.
- Retail ETF inflows return after three years of outflows.
- Gold miners like Harmony, AngloGold*, and Pan African positioned well.
Gold weekly | 06 February 2025
Retail Sector & Consumer Spending:
- Mixed trading updates: Pick n Pay and Boxer show early turnaround signs.
- Modest growth in TFG, Mr. Price*, and Clicks; Shoprite* remains strong.
- Cautious consumer spending patterns persist.
Two-Pot Retirement System:
- Initial withdrawals lower than expected—around R50 billion.
- Future ongoing withdrawals expected as a structural component in SA’s economy.
Vehicle Sales Trends:
- January sales at 46,400—stronger than expected.
- Used car market expanding, Chinese brands gaining traction.
- Auto sector investment options: CMH*, Motus, and Zeda.
Such African monthly vehicle sales
Sasol’s Ongoing Struggles:
- Six-month trading update—earnings per share around R14.
- Continual asset write-downs and operational challenges.
- PE ratio suggests market pricing for bankruptcy, but survival likely.
- No clear turnaround signals yet—investors should wait for stronger confirmation.
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00:00 Market Overview and Podcast Introduction
01:10 Trump Tariffs and Global Trade Dynamics
06:25 Interest Rates and Economic Implications
10:02 Gold Market Trends and Predictions
12:51 Retail Sector Performance and Consumer Behavior
14:17 Vehicle Sales Insights and Market Trends
16:40 Sasol’s Financial Challenges and Future Outlook
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JSE Direct is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.
Wednesdays are all about hard-core investing and trading with Simon Brown’s famous JSE Direct podcast. JSE Direct started life on ClassicFM in July 2008 and became a podcast in 2011. Every week Simon shares his views on the state of global economies, individual shares and events moving markets.
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JSE – The JSE is a registered trademark of the JSE Limited.
JSE Direct is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.
