🎯 Tariff Talks: Where Are We Now?
Simon Brown recaps the evolution of Trump-era tariffs, with recent developments around:
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US-China deal: effective 54% tariff on Chinese goods, 10% on US goods
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UK, Mexico, Canada, Vietnam likely settling around 10%
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Expectations for other regions like EU, Saudi Arabia, South Africa
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Conclusion: tariff escalation seems contained, reducing recession risks
Key Insight: Markets are stabilising as the worst-case tariff scenario is dialed back.
💊 Trump vs. Big Pharma
Trump targets high drug prices in the US, pushing for:
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30-day deadline for pharmaceutical companies to lower prices
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Unclear legal basis; possible price controls debated
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Pharma stocks bounce back slightly after initial drop
Simon’s Take: Healthcare is risky for investors due to constant regulatory pressure — he stays away.
💡 Lewis Group: Surprise Trading Update
Lewis expects a 55–65% EPS increase, sparking:
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A ~16% stock price surge
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Ongoing share buybacks and high dividends (7.8% yield)
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Strategy: loan book expansion, carefully managing bad debts
Verdict: Strong fundamentals, still looks cheap. Simon and analysts are bullish. 📈
🛒 Boxer’s Debut Results
First results since Boxer listed:
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Modest headline earnings (new shares diluted results)
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25 new superstores & 35 liquor stores planned annually
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Operating margins on par with Shoprite* (~5.5%)
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Stock trading at fair valuation (R64.77), analysts’ target: R76.66
Insight: Promising growth but priced in. Shoprite still Simon’s preferred pick. 🏪
🏅 AngloGold Ashanti*: Cash Flow Soars
Highlights from AngloGold’s trading update:
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7x increase in free cash flow
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New dividend policy: $0.125 quarterly minimum + 50% of FCF
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26% production increase (aided by Egypt acquisition)
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Concerns: strong rand + weak gold price pressure the stock
Simon’s Position: Holds the stock, likes the dividends — cautious on expansion. 🪙
🏘️ Calgro M3 vs. Balwin
Property sector comparison:
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Calgro M3*: Sub-R1m homes, shifting from gov’t subsidies to open market
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Balwin: Mid-to-high-end units (R1.1m–R3m+), annuity income from parks & amenities
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Both cautious due to election risks and past invasions
Bottom Line: Simon owns Calgro, likes both for their contributions to housing. 🏡
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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.
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.
