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Simon Shares
- FedEx (NYSE code: FDX) spooks the market by withdrawing guidance and saying demand is collapsing.
- Thungela Resources (JSE code TGA) went ex-dividend to 6000c.
- Wilson Bayly (JSE code: WBO) is letting their Australian operations go bust, not giving any more financial assistance.
Has inflation peaked?
- Local inflation was down at 7.6% for August from 7.8%.
- US August inflation at 8.3% from 8.5%.
- UK August 9.9% from 10.1%.
- EU 10.1% up from 9.8%.
Risks?
- Europe and UK still have a winter of the energy crisis to contend with.
- US and local look to have topped, but energy/petrol still needs watching.
- Food inflation remains high and remains a risk.
- A recession will dampen demand and help inflation lower.
- Transport costs are down.
BUT, what of interest rates?
The problem is getting back to target.
Rate increases still coming, likely into the new year before pausing.
Then the long wait for inflation to get to target (or near) before rates start coming down. In the US this is at best 2024 but probably 2025. Locally rates may start moving lower in early 2024.
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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.
JSE Direct Podcast
Thursdays are all about hard-core investing 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 chats to industry experts, answers listener question (contact him here to send your Q’s) and gives his views on the state of markets and individual shares.
Reach Simon by email at simon@justonelap.com,
or Twitter @SimonPB
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Image and article originally from justonelap.com. Read the original article here.