The Money Shot

The Business Confidence Index came in at the lowest level since the 2nd Quarter of 2017 when Zuma fired Gordhan and we were downgraded to junk status. Consumer confidence was no better. Anthea discusses this, as well as gives a look at company results, a petrol price update and lastly the announcement of an exciting new #INVEST Easy Equities competition.

Henry Biddlecombe stands in for Anthea Gardner this morning as he takes a look at US Earnings season review for Q318, questions why the market is not responding well to what seems to be very positive earnings growth, as well as explaining what peak earnings are all about. Henry wraps up with the interesting results of Amazon, Microsoft and Activision Blizzard.

The SA Reserve Bank surprised us by raising interest rates by 0.25%, the first hike since early 2016 - bringing the repo rate to 6.75% and the prime lending rate to 10.25%. SARB argued that it was a risk mitigation strategy, clearly trying to avoid stagflation (which is high inflation, low economic growth and high unemployment), and is difficult to manage. The Rand strengthened dramatically from 13.95 against the USD to 13.73, MPC growth predictions for the year was lowered to 0.6% (prev 0.7%) and kept the same for 2019: 1.9% and 2020: 2%. Anthea threatened to put Gareth’s name forward to SARB as they are looking for another external MPC member.

Anthea kicks off this week's business and financial segment of The Money Shot by responding to a listener's email. Not a great start to the week on company news, Vodacom (-8%), BTI (-11%), Rebosis (-21%) and Tsogo Sun (-3%). On the bright side, Discovery Bank launches, while Tencent reports results, and some good news on Torre.

According to Anthea, it really wasn't a bad week on the JSE as the week started with trying to recover some of October’s losses. She updates on the Rand trading with a mind of its own, SAA being the talk of the markets as they hint at selling shares in the business and MTN looking set to settle with the Nigerian Central Bank. Discovery raised R1.85bn overnight by issuing 11.4mn new shares @ R162/sh - Anthea also comments on this, as well as all that's happening in the banking sector as Tyme launched last week and Standard Bank plans a secondary listing. She concludes with a retail sector update: Foschini and Richemont releasing results and Alibaba having their 10th Singles Day yesterday, netting $10bn in the first hour of trading.

The month of October brought about the most volatile market we've seen in a while, and down the most since 2009. On company news, Famous Brands and Raubex reported interim results, Impala Platinum released a solid quarterly production report with MTN releasing their solid update. I&J and Karan beef have been implicated in collusion, while Sanlam released plans of their new BEE deal. SA unemployment was up again last quarter to 27.5%, but on a positive note, a 30c decrease in petrol price this month is something to look forward to.

The JSE was down for a fourth consecutive week but does this present a buying opportunity for us? Anthea looks at that, along with the main focus of this week: The medium-term budget speech. In executive moves Anthea looks at Stuart Bird's resignation from Mr Price, Kevin Hedderwick joining Kauai, Famous Brands' 6-month trading statement, Brait's announcement, Dis-chem and Consolidated Motor Holdings' results and Mediclinic's trading update. She concludes with news from across the pond as Netflix reports.

Anthea Gardner returns from Half Ironman to tackle the burning issues in the business and finance world. Our 5th finance minister in 3 years, the Rand has been volatile but strengthened as Moody's did not downgrade us. Trump criticises the US FED. Naspers' shares take a pounding and Sanlam has finally been approved to buy Moroccan Saham.

Brent crude oil price hit a 4-year high since 2014 at $86/bbl and has stayed near those heights at $85/bbl. Seleho Tsatsi discusses with the team exactly what this means for both consumers and investors. More around the Pioneer Food Group trading statement, EOH results, plus Tesla and Elon Musk.