BizNews Radio

News headlines:

*President Ramaphosa has said that the biggest risk facing South Africa right now is that the country relies on Eskom as the sole generator of electricity.

*Coalition talks among South Africa’s political parties are heating up, with the ANC now hitting back at the opposition parties who say they will not work with them.

*Mineral Resources and Energy Minister Gwede Mantashe has called on African nations to urgently form a united front to resist global pressure to rapidly abandon fossil fuels.

In this episode of the BizNews Power Hour, Steven Nathan applies his mind to contested takeover bids and shareholder activism; Dr Piet Croukamp explains most why opposition parties are rejecting the ANC - they don't want to risk making the ruling party "look good" ahead of the critical 2024 Election; Peter Major sifts through the noise around the BP takeover offers; and Future Forex CEO Harry Scherzer unpacks the low-risk opportunity offered offshore-to-onshore crypto arbitrage.

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TreasuryOne's currency expert Andre Cilliers outlines the reasons for the Rand's big swings over the past fortnight.

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As is customary for a Monday, Sasfin Securities David Shapiro gives us his insight on the latest developments taking place across local and international markets. The conversation starts by focusing on the price action in New York, where Moderna and Peloton have nosedived, as the world returns to normality. Shapiro notes the tailwinds that both companies had as a result of the pandemic and demand is unlikely to be sustainable as Covid-19 eases. Harry Smit, the representative of the Ascendis Activist Investors, was recently added to the board as a non-executive director. A big win for activism in South Africa and hopefully, the precedent has been set. Speculation surrounding MTN’s rumoured buyout of Telkom was also discussed, with Shapiro outlining it is unlikely the Competition Commission would allow this on anti-competitive grounds. The infrastructure drive implemented by the government seems to be well underway; construction group Raubex has posted good numbers. Lastly, small-cap retail investor favourites Renergen and the Purple Group are discussed.  

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In this episode of the BizNews Power Hour, Cape Independence activist Phil Craig explains how the Local Election results are a major boost for the Cape Independence lobby; SA's favourite stockbroker David Shapiro gets excited about the Purple Group's trading update and assesses the plunging prices of Moderna and Peloton Interactive; Township shopping centre owner Exemplar is coming back stronger after losing 5 of its 23 centres says CEO Jason McCormick; and TreasuryONE's Andre Cilliers explains why he expects to see the Rand strengthening to R14.50 against the US Dollar (now R15).

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News headlines:

*Political parties may be looking to play a longer game – opting to build relationships and partnerships to take power in the 2024 national election, rather than enter into destructive coalitions to gain the upper hand in municipalities now.

*South Africa’s load shedding crisis could escalate as Eskom’s relationship with service providers has reportedly soured to the point that critical work at the Kusile power stations has stopped.

*South African consumers will have to dig deeper in their pockets at the tills this festive season, with food prices set to rise on the back of rising petrol prices, feed, and input costs.

CEO of Future Forex Harry Scherzer unpacks a unique cryptocurrency arbitrage opportunity that he and his team use to produce investment returns no matter the movement and volatility of the underlying cryptocurrency.

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Jason McCormick has been a regular BizNews contributor following the July riots. The McCormick family has billions of rand in exposure to rural property developments all across the country. A large portion of their property portfolio is held through listed real estate business Exemplar, which recently announced upbeat financial results. Exemplar was one of the most adversely affected businesses during the civil unrest, with five retail malls looted and vandalised. Despite the chaos that unravelled, McCormick confirmed trading conditions have surpassed expectations and the fundamentals of the business are intact. He believes that if these black swan events can be avoided, the business will continue to flourish. He also provides an update on Exemplar’s latest development in Mamelodi, which is expected to complete by 2022.    

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Dirk Van Vlaanderen of Kagiso Asset Management shares his thoughts on Brait. Their house view is that Brait's intrinsic value is around R7 a share.

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Counterpoint Value Fund manager Piet Viljoen makes his second appearance for the week on BizNews, days after going head to head with Magnus Heystek in a R500,000 investment challenge. Putting his money where his mouth is, Piet has allocated the full initial investment into the Counterpoint Value Fund. A few of the top holdings in the fund are deliberated, on a day where MTN released an upbeat quarterly update, with the share at levels last seen in 2015. Anglo American, another large holding in the fund, is discussed following the retirement of decorated mining executive Mark Cutifani. Lastly, we touch on South African bonds, with Piet outlining the attractive real yield they offer relative to global counterparts

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