| The Reserve Bank is taking steps to support the economy, following up on last month's interest rate cut with another 100 basis point reduction in its repo rate as it brought its May meeting forward by a month. That takes the repo to 4.25% from 5.25%, reducing the prime lending rate to 7.75%. Although the rate cut will result in the so-called endowment effect for SA's banks, reducing their net interest income, their shares were mostly higher yesterday - perhaps due to the relief it will provide to their customers. Capitec pulled back slightly though after it decided not to pay a final dividend after the SARB's Prudential Authority advised against it in a guidance note last week. Meanwhile, RBH Holdings and Remgro are pushing ahead with a series of transactions that will ultimately result in shareholders of both companies holding direct stakes in FirstRand rather than through the two investment holding companies. In his latest report "Earnings, Earnings, Earnings - What will you pay for them now?", top trader Andrew Kinsey examines the prospects for corporate earnings and the potential impact of Covid-19 on corporate profits. You can access the report by following this link. With the current turmoil on global markets, Ingham Analytics notes that low volatility stocks haven't been spared from the massive sell-off in equity markets. "The volatility of low volatility" is another valuable analysis by Ingham Analytics to help traders and investors navigate this unprecedented turbulence and you can find it here. Finally, if you missed it last week, I've included our exclusive interview with award-winning financial journalist Bruce Whitfield on his new book The Upside of Down: How Chaos and Uncertainty Breed Opportunity in South Africa. Follow this link to watch. Stay safe. Stephen Gunnion Managing Editor, InceConnect
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