Global Market Themes: Developed market equities underperform Emerging Market (EM) Chinese equities lead EM higher as China set to record positive economic growth in 2020 US GDP growth recovery threatened by a lack of agreement on renewed fiscal stimulus Tech earnings slump as executives are grilled by US Commerce Committee Lockdown 2.0 threatens Europe’s nascent economic recovery Oil prices slump on COVID-19 demand and election speculation SA Market Themes: Local equity markets struggle, led lower by diversified miners MTBPS signals political commitment to structural reform despite concerns around SAA bail-out Expropriation Bill signals certainty around Expropriation without Compensation Post-COVID-19 Recovery Plan outlines five pillars to boost GDP growth

Global Market Themes: Technology stocks’ rally interrupted as Softbank emerges as NASDAQ “whale” Heated first round of US presidential debates leaves investors fretting Uncertainty about further US fiscal stimulus European recovery tentative amidst second round of coronavirus-related lockdowns SA Market Themes: South African recession worsens as second quarter GDP contracts sharply Broad-based increase in unemployment, despite misleading official unemployment rate number South African Reserve Bank sticks to its inflation-targeting mandate in the face of growing fiscal unsustainability

Global Market Themes: Lack of agreement over new round of US fiscal stimulus US equities reach new all-time-highs, US dollar declines US Federal Reserve Bank adjusts inflation targeting framework Additional stimuli, economic support from France, Germany SA Market Themes: South African businesses warn of more retrenchments on the way A bumpy and likely long road to recovery Sasol’s woes continue President Cyril Ramaphosa sends a strong message to corrupt officials

Global Market Themes: Data points to continued recovery in China, it leads Emerging Markets higher. Resurgence of US-China tensions: Embassies close, Hong Kong special trading rights revoked, US considers travel bans and national security risks of TikTok and Wechat. US GDP growth plunges and the US Congress fails to agree on extension of enhanced unemployment benefits. European leaders agree on historic Euro 750 billion recovery fund. SA Market Themes: IMF grants South Africa a $4.3 billion loan. Inflation remains low and the SARB implements a further rate cut. Loadshedding hits struggling economy again.

Global Market Themes: The US Fed and other central banks pump liquidity An uneven and unpredictable road to recovery Global bodies predict record contractions in GDP for 2020 Economic indicators show a few encouraging signs Markets swing between exuberance and caution amidst second wave of Coronavirus infection fears SA Market Themes: SA remains in recession as Q1 2020 GDP contracts by 2% Emergency budget paints a gloomy picture Risk-on appetite and commodities rally spur JSE higher Easing of severity of Level 3 lockdown, even as warnings come of a new hard lockdown

Global Market Themes: United States unemployment soars to record highs US futures pricing in negative federal funds rate in 2021 UK short-term rates go negative UK faces no-trade deal Europe and Japan stimulus measures Sino-US tensions escalate – Phase One deal in jeopardy Hong Kong adds fuel to the fire – new Chinese national security law puts special status at risk SA Market Themes: SA Reserve Bank cuts a further 50 bps Lockdown moves to Level 3 from 1 June Tax revenue collection under pressure Rand recovery to be gradual yet volatile

Here are this month’s highlights: April was a month of record lows all-round with the global economy forecasted to see its steepest decline since the Great Depression of the 1930s. The South African Reserve Bank reduced the repo rate by a further 100 basis points; South Africa exited the FTSE World Government Bond Index (WGBI) on 30 April; local equity indices rebounded strongly following global peers higher; SA listed property recovered in April in line with equities and bonds; new economy companies such as Amazon, Netflix and Microsoft were net beneficiaries as the world further embraces e-commerce, media streaming and online gaming; and currency performance was mixed.

Here are this month’s highlights: The world economy continues to feel the impact of the COVID-19 outbreak and subsequent spread. The South African Reserve Bank cut its repo rate by 100 basis points. Inflation-linked bonds experienced its worst month on record. Local equity indices experienced its most severe declines since the Global Financial Crisis. Declines in Property effectively halved the value of the SA Property Index in just three months. Globally, there was a large-scale scramble for safe-haven assets and there is a general consensus among major global banks of a global recession in 2020.