Market scorecard
A choppy week on Wall Street ended on a cautious note, with major US indices barely budging as traders digested rising oil prices, geopolitical tensions, and trade headlines. The Nasdaq edged up 0.2% and the S&P 500 slipped 0.2% for the week. Energy stocks stood out, gaining 1.1%, as oil continued to rise. All in all, it was a jittery stretch with more noise than direction.
In company news, Meta was apparently interested in acquiring AI search startup Perplexity AI before ultimately opting for a multibillion-dollar investment in Scale AI, signalling its continued push to secure a lead in the AI arms race. Elsewhere, Tesla is preparing to open its first showrooms in India this July, marking the EV giant's formal entry into the world's third-largest car market. With sales slowing in Europe and China, Elon Musk is now turning to India for the next wave of growth.
On Friday, the JSE All-share closed down 0.22%, the S&P 500 fell 0.22%, and the Nasdaq was 0.51% lower.
Our 10c worth
One thing, from Paul
Well, I did not expect the US to drop a dozen bunker-busters on Iran's nuclear sites from B-2 Stealth bombers over the weekend, but here we are.
What happens next?
Neither of Iran's traditional allies, China and Russia, seem inclined to get involved in this conflict, so that's good.
A few observers are suggesting that "regime change" strategies for Iran are a good idea, but they are not. A new regime in Iran would probably be worse than the current one.
Global stock markets will probably be unaffected. Think about it, will people's decisions to upgrade to the next model of iPhone be influenced by this crisis? Will they use their Visa card less often? Will they avoid deploying AI in their workflow? Not likely.
Iran appears to be closing the Straits of Hormuz, which will restrict oil exports from the Gulf region. Crude prices will rise. Maybe it's time to add more solar panels to your roof, and buy an electric car? I love mine, they are much nicer to drive.
Byron's beats
We mentioned in linkfest last week that in 2024, 1000 new millionaires were minted a day in the US. That is just phenomenal. According to the UBS Global Wealth Report there are now 52 million people around the world who have assets worth between $1m and $5m, accounting for $107 trillion in total wealth. Much of this has to do with the great returns of the US stock market.
There has been an ongoing political debate between Democrats and Republicans about the shrinking middle class. All the evidence I have seen suggests that the middle class is shrinking because they are getting richer, not the other way around. This is a good problem to have.
Wealthy people spend more money, pay more taxes, educate their kids, donate to charity and have the cushion to take risks and start businesses. In general, they are positive for society.
Michael's musings
Last week, Netflix announced that it is teaming up with traditional broadcast company TF1 in France. Netflix will stream all of TF1's free-to-air channels and to give Netflix subscribers access to TF1's content library.
Netflix and TF1 have worked together in the past, co-creating some French-speaking content. Going forward, Netflix will air the co-created content a week earlier than on the free-to-air TF1 channel.
TF1 currently reaches 58 million viewers with its broadcast channels and serves 35 million users on its streaming channel. I suspect many of those users already have Netflix accounts, but this will help Netflix to be more relevant in France. The partnership is one way for legacy TV networks to stay competitive in the age of streaming - if you can't beat them, join them.
Bright's banter
In 2017, three friends with $900, a fryer, and a tent started selling fiery chicken in an LA parking lot - their first night of business brought in just $40. Fast forward to 2025, and Dave's Hot Chicken just got scooped up in a $1 billion private equity deal.
They grew from hot sauce and hustle, giving samples outside burlesque clubs, studying YouTube tutorials, and building a franchise-ready brand from day one. Today, 315 stores and counting, with $600 million in sales and plans for 1 000+ more globally.
Roark Capital (the firm behind Dunkin', Subway, and Buffalo Wild Wings) had been circling them since store number 15 and finally pounced. Dave's isn't just riding the chicken wave; they've helped define it, with a no-frills menu, a crazy-spicy Reaper level, and a mascot that looks like a rubber chicken on acid.
Even with big money backing, the founders haven't sold their soul. The graffiti vibes, chef-driven roots, and "Est. 2017" on every door is still there.
Linkfest, lap it up
Britain is welcoming nuclear energy. The nation will invest GBP14.2 billion in a new nuclear power station - The evolving energy mix.
People working in the Pentagon love pizza. Since the 90s, pizza stores near the Pentagon knew when something big was about to happen - Pentagon pizza monitor predicted 'busy night' ahead of Israel's attack on Iran.
Signing off
In Asia, shipping stocks climbed on speculation that tanker freight rates could rise in the wake of the US airstrikes, so too did Asian defence stocks. On the flip side, airline shares slipped, pressured by rising oil prices. Elsewhere, Taiwan Semiconductor pulled back after a Wall Street Journal report said the US Commerce Department may revoke waivers allowing chipmakers to supply technology to China. Samsung Electronics also declined on the news
In local company news, DisChem founder Ivan Saltzman is passing the baton, handing over the bulk of his stake in the company to his sons, Dan and Mark, as he winds down his storied career. The group announced on Friday that Saltzman had transferred around 217 million shares, valued at R6.8 billion, to his sons via the family's investment vehicle, Ivlyn Local Investment Holdings. Following the move, Ivlyn's stake drops from 29.31% to just 4.06%, paving the way for the next generation to take on a bigger role as key shareholders in the business.
US equity futures are slightly lower pre-market. The Rand is trading at around R18.06 to the US Dollar.
Have a good week, it will be an interesting one, as always.