| The worst may be behind us in terms of the immediate impact of Covid-19 but it's going to be a long, hard slog to get back to where we were at the beginning of the year - and even that wasn't a great position due to the stagnating economy. That's the message coming through from listed companies as the current reporting period draws to a close. While future earnings will show an improvement from the lower base that's been set in the period up to June, many don't expect to return to 2019 levels until next year at the earliest. Maybe even longer for some. Like other banks, FirstRand has had to make large upfront provisions for customers who may default on their loans over the next year to 18 months. It says its results reflect the depth of the crisis but activity is likely to remain muted, with no material improvement to its credit performance in the short term. Sanlam expects new business growth to peter out due to the tough environment for consumers after coming through what it describes as one of the most challenging environments it has ever faced. Despite the gloomy outlook from companies, stock markets across the globe are back at pre-Covid-19 levels. Until last week's pullback, Nasdaq and the S&P 500 in the US were reaching record levels. Rand Swiss wealth manager Viv Govender delves into the role Japanese investment holding company Softbank may have played in the recent rise in markets. It's in today's newsletter and you can also read about it here. Viv's article follows on from a note by Ingham Analytics yesterday, also warning about Softbank, which you can find down below. It's Friday, so we wrap up the week with all the latest merger and acquisitions news from DealMakers. I hope you have a great weekend. Stephen Gunnion Managing Editor, InceConnect
The latest from Ingham Analytics The tech market rally after the sharp sell-off last week is no reason to be complacent that we're again on an upward path say Ingham Analytics. If Softbank is making a lot of money on seeming market manipulation there could be losses yet to be revealed elsewhere. Valuation multiples remain unconscionable. The 'positive feedback loop' Andrew refers to inevitably becomes a vicious downward spiral. But the complex mechanics of what is believed to be a fractured market are elegantly explained in "The devil incarnate, Softbank?" which is a must read if your invested in the Tesla's of this world. Meantime Capitec has been flying and you can read more in Ingham Analytics latest analysis entitled "Looking for dips". But Ingham Analytics caution against ebullience in any of the banks, coming off relatively deflated levels, and that profit taking should be considered now. | 