CNBC Africa

2024-11-13 17:04:12

13 Nov 2024 @ 17h00 - Emira Property


Broadcast Type: Interview; Emira Property Fund, along with Dipula Property Fund, reported financial results today, indicating signs of consistency and potential recovery in the office property sector.

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we are now below nine thirty-nine silver tagging stronger a little bit today not point five percent terence is here about to talk these markets and the margin focus tenants the has got to be that us inflation print i'm saying stable broadly what are you seeing our own market and global markets good afternoon godfrey quite a good print in terms i guess of what the markets were expecting so so so the us inflation data out you know came in line with expectations with market which it's fantastic with regards to fight against inflation the the us fed's inflation fight against and but there's a lot more dynamics new as you're alluding to with new the president with elect donald trump coming into office now why is that an interesting dynamic can see we you know how turned the markets have very bullish with regards to the outlook the us fed has cycle been in a cutting we've got one more us fed meeting in december but this is now totally different market movements compared to what was expected or what was under the democratic administration so now with trump what seems to be the sweep red is they are calling it having of the charge office at the moment and close on on the house so that means legislative the part of you know the promises he made that on the campaign very vinpro will be easy to implement seen and that will be or that is being business seen as pro so that could be inflationary so these with u s inflation figures then that we have the expectation is that possibly another twenty-five basis points in december but the us fed is likely not going to be continually cutting that much if that outlook is that business friendly possibly inflationary going into the future ja so i actually wanted guys to know if you had had to scale back your in terms expectations of the depth of that cutting cycle i've heard figures suggesting that perhaps may only we see another seventy-five basis points so in terms of cuts or where are you guys sitting it ja i think if look at that we twenty-five basis points in and december possibly a whole from their i think definitely more data will be needed because we recall if last year the us very fed was optimistic in them having won against the fight inflation that's you know going end of towards the twenty twenty three we're twenty twenty four expecting seventy-five basis fed points from the us then inflation pushed higher so very careful they'll be not to repeat that that move so same so i think they need more tools will still to combat inflation so cut an old going into 2025 full possibly you be know the the the the ideal path because one thing that people are talking about not really is the previous us nonfarm data which payroll came out at twelve thousand new jobs added which is you know very low with very god's to what expecting the market was so the labour market could start suffering or they said there was no with floods other issues and the protests that on so that were going secured the figures see if that'll so we'll be revised higher next at the us n f p us but again the fed always talks about supporting the labour market so they don't want to cut much that too inflation runs away and at same time the they do not want not cut so to that you know the labour is not supported market so i think twenty five for for for december we'll be likely and then holding going into 2025 pending new data that comes in particularly the inflation data as today such ja and another dynamics that of course we know that property mogul trump likes lower interest rates and interesting its rates it'll be to see the fed keeping to path and independence its and trump saying hello coming in and hang on i am the president a little bit about trump still let's about we have seen talk r some being prominent names named in his cabinet chief of course among them is the world's wealthiest men musk's elon coming through are department in charge of the of government efficiency just your thoughts terms of the cabinet in the likely that's shaping up in impact that will have on markets and policy going forward ja i think impact the on markets we've we've already started that seeing i think the market was reacting resounding to to that trump charge it was getting you know as closer to that two and seventy hundred electoral college vote and winning that electoral college vote and then we saw that with regards to as i mentioned senate in the that read charge again in the house of representatives as well so definitely we already seeing glimpse of you know what perhaps let's call it the future would look like under the trump under administration and one particular interesting instrument you know that is definitely definitely benefiting are from this as as we've is seen is crypto crypto currencies and you know to the point of how the trump administration looks like i think what's been said is that for sure trump is is rewarding loyalty so this time around there's a lot more of what happens aware in in washington so probably you'll want a lot more loyal you know individuals around him office bearers around him you'll so see people that were very instrumental his during campaign play your being rewarded with acquisitions in the office and i think deregulation is one of the big is things which is what we're seeing now at this historic off high bitcoin i think at one point hit about it ninety two thousand and it's on its way to two hundred thousand certainties so and i think that's what we are beginning to see with regards to you know the the long term outlook for the trump administration a lot of deregulation that's pro business going to be you know bank stocks were rallying on on on that trump vote as well so so i think that's you know outlook the we'll be seeing and we're expecting for for for for the trump administration going forward the challenge of course is that know we don't what people are pricing in in bitcoin because who knows really what the fundamental of the thing value is because people it go into five speak about hundred thousand dollars you're thinking but and thousand if it's worth five hundred dollars what is it anyway based on but conversation for another day and talk about let's come back the really economy two companies property are coming through and reporting on results today emira property fund e o i've got the c very shortly chatting to me so i'd like a question from much you sir very thank you indeed we did have ceo of dipula the coming to studio to us and chatting about there results as well thing one that i picked up through results the two appears to be that consistency of our property in terms turning the corner in particular office your thoughts from what you saw of those two reports yeah i think corporate properties indicate of you know expectation business expectation sentiment so to speak in terms of outlook the future for the country so if we find you know companies such as hippo and increasing in value and and having good strong growth and good figures as they have shown is that very positive for the future as outlook because we know property is a long term game for for for investors so if is where that capital is starting is to flow that very positive for south africa so is a positive that indicate that with regards to the future outlook i think what interesting would be to hear is on that one point one billion sell off of the taking property the properties in the western cape from from memory in terms of you know the around that move singh evaluation you know being the very at top end of the market know for for you them to cash and possibly out now the economy is going to turn later is there a similar move the market has to what been questioning around example save for london buffalo ensuring up cash to prepare you know maybe for a possible so market shock i think it'll be interesting to hear what that move is is is motivated on absolutely and before you go i get your thoughts on need to trump not trump apologies elon musk's and the potential impact that he's likely to have on the us government ja i think ellen has has long been underrated and underestimated you know with regards to his own journey with you know the different companies that have formed the amount of success he has had that and we've seen how instrumental he was during the campaign trail you especially from know a startling perspective so i we are think expecting a lot from more off from the us government with regards to innovation and especially policies that are going to support innovation around this tax sector and in race that they continue the to have with the space in occupying space with different technologies so i think so that's likely you know elon mask the you know charged with regards you know what we to expect from elon but it's definitely musk's a sharp guy lot and a sharper than people care to to know i think to it sounds to me like you are suggesting that we should also ask him to come and clean up house here when we did see him with our president you know having a warm conversation so that is definitely so positive and we forward are looking to we know what those conversations mean positively for us here in south africa dodge department of government efficiency terence thank your you for time terence hore his senior market strategist at access with his thoughts on what potentially ellen moss could interesting do i think it's an thought actually maybe challenges with the kind of that we have all our it in terms of governments across the african continent bureaucracy or as some call it the deep and state the need to clean house maybe maybe tenants and people like him see something elon musk's that in potentially we could use the continent let's on take a break on the other side i'm going to be seeking thoughts the of the c e o emira of our property fund