The big story of the week was mining company results that saw record dividends of over R100 billion being declared collectively by Anglo American, Kumba Iron Ore and Anglo Platinum. I spoke with Bruce Williamson, CIO at Integral Asset Management, on his view on the platinum group metals market. He is very bullish, saying the disconnect between the ratio mined and auto catalyst demand is likely to keep prices elevated for some time.
We also dug into the July riots again and their economic impact with Carmen Nel of Matrix Fund Managers. They expect GDP to suffer a 0.5% to 1% hit in 2021, but also caution about inflation in the near term and our sovereign credit rating in the longer term.
Liberty Two Degrees (L2D) owns a number of top quality super regional malls and its results showed retail vacancies at just above 96% but rental rates dropping. CEO Amelia Beattie made the point that having full centres is more important for the shopping experience than rental rates and that if L2D held out for a higher rate, there would be a cost that would offset the higher rate.
The US Federal Reserve kept rates unchanged as expected and earlier in the week I spoke with Anchor Capital fund manager Peter Little about decade-high US inflation. He pointed out that much of the evidence is that it is transitory, but it still needs a close eye from the Fed so as not to become structural.
Also this week:
Deryk Janse van Rensburg from Anchor Capital suggests using the somewhat negative Naspers/Prosus sentiment as an opportunity to gradually top up over the next couple of days.