Market scorecard
US markets gave up their weekly gains on Friday, with the S&P 500 down almost 1%. Trump rattled on about tariffs, and jobs data showed a steady but cooling labour market. Wages jumped, bonds dipped, megacaps slid. It was just one of those days.
In company news, Amazon ended down 4% after warning of a slowdown in its cloud business, but they are still up 33% in the last 12 months. Elsewhere, Apple is revamping its iPhone SE, the cheaper smartphone it uses to lure users away from other brands. Finally, network management services company Cloudflare had a standout day, jumping 17.8% after smashing fourth-quarter expectations.
In summary, the JSE All-share was up 0.32%, the S&P 500 fell 0.95%, and the Nasdaq was 1.36% lower.
Our 10c worth
One thing, from Paul
Mondays are for reflections on the asset management business, and on Vestact's operations in particular.
I'm sometimes asked if it's stressful, being responsible for such a large amount of other people's money? We have R13 billion under our administration, 94% of which is in US Dollars in New York.
Our 1 277 clients are from all walks of life, some are young and saving actively, others are older, and drawing down on their saved capital. For some, the money that they have with us is a small part of their overall assets, but for many others it's their entire life savings. We are well aware of the responsibility that we bear.
I sleep easily, because of the high-quality shares we all own, the secure custodial set-up we have with Fidelity, and the good reporting systems we have built.
The movements of the market are endlessly interesting. Our portfolio management service is very transparent. Clients can see which stocks are working for them, and which are not.
We enjoy being trusted, and being trustworthy.
Byron's beats
As previously noted in this newsletter, Apple and Starlink are teaming up. This is a very exciting development.
The newest iPhone software includes support for the Starlink network. The two companies have been testing iPhones using Starlink services at the Starlink headquarters. T-Mobile is also on board, providing support and trialling the product with their clients.
If you travel regularly to places that are off the grid, having reliable satellite phone services is very valuable. According to Elon Musk, the tie-up means that images, music, and podcasts can also be supported. Good stuff.
Michael's musings
Last week, Business Day highlighted the latest Household Affordability Index report from the Pietermaritzburg Economic Justice and Dignity (PMBEJD). It makes for some grim reading. Electricity and transport take nearly 60% of average worker's salary, not leaving much money left over for anything else.
The implication is that many families can't afford the required nutrition for healthy living. Research shows that wealthier people have longer life expectancies, but I don't think the impact on children is spoken about enough. Under-nourished children have stunted mental and physical development, widening the gap between the haves and the have-nots. Poverty is terrible.
Depending on which side of the political spectrum you fall, you either think that the government needs to do more or less to rectify the situation. Just about every entity controlled by the South African government is on its knees and ineffective, so a clear case can be made that the government should get out the way, allowing more private sector investment and faster economic growth, to lift people out of poverty.
Bright's banter
Spotify, the world's leading audio streaming platform, just delivered another impressive quarter, posting better-than-expected subscriber growth and its first-ever annual profit. The company now has 675 million monthly active users and 263 million paying subscribers, which is up 11%, both ahead of estimates. It continues to dominate music streaming while expanding into podcasts, audiobooks, and now video.
Spotify isn't just growing its user base, it's also boosting artist earnings in a big way. Back in 2014, about 10 000 artists made at least $10 000 a year on the platform. Fast forward to today, and well over 10 000 artists are earning more than $100 000 annually from Spotify alone.
CEO Daniel Ek credits this success to a combination of strategic expansion and cost-cutting, calling 2025 "the year of accelerated execution." The company expects continued revenue growth, with first-quarter sales forecast at EUR4.2 billion and gross margin reaching 31.5%.
Shares jumped 13.2% on the day to an all-time high, up 178.5% in the past year. While Spotify's long-term growth story remains compelling, the stock looks expensive at these levels.
Linkfest, lap it up
The Sims was a landmark video game. Many people became architects because they loved its design features - 25th year celebration.
Where do you fall on the political spectrum? Are you a Trump lover or a hater? - The political compass test.
Signing off
Japanese markets have been on a rollercoaster ride this morning. There was relief after Prime Minister Ishiba met President Trump, but a sell off ensued when 25% steel and aluminium tariffs were suggested. Nippon Steel fell 0.8%, the US is still blocking its $14.1 billion bid for US Steel.
In local company news, Gold Fields expects a big earnings boost from record gold prices and improved operations. Headline earnings will be up to 47% higher than last year.
US equity futures are in the green pre-market, but it's still early and it's a Monday. The Rand is trading at around R18.52 to the US Dollar.
Have a good week.