Well, it finally happened. In a speech at Jackson Hole on Friday, Fed Chair Jerome Powell gave us the all-clear. Here are the key lines from his talk, in a consolidated quote:

"The upside risks to inflation have diminished, and the downside risks to employment have increased. We do not seek or welcome further cooling in labour market conditions. The time has come for policy to adjust, the direction of travel is clear."

So now we know, the US central bank's first rate cut will come at its September 17-18 Federal Open Market Committee meeting. It may be even more than the usual 25 basis point rate cut; it could be 50 bps.

It feels like we have been writing about this issue for so long. The inflation spike that was caused by Covid, and the steps taken to stimulate the global economy to overcome it, has finally abated. Now things are back to normal.

I hope to never write about Jackson Hole again.

I really enjoyed this tweet from Morgan Housel. It is funny how many people think that things are getting worse despite endless proof that the opposite is true. Older generations tend to moan the most.

Maybe it is in our DNA to believe that things are getting worse and that makes us strive to improve? I don't know the answer, but I get the sense that this general mindset will never change.

As I get older I have already found myself griping about the antics of the younger generations. Regardless of useless politicians or generational cultures that are different from mine, I remain optimistic about the future.

Last week, the Wall Street Journal ran an article about the growing number of younger people having joint replacement surgeries. New knees and hips in their 40s. As a Stryker shareholder, this is an important topic.

For patients aged 45 to 64, there was a 211% increase in hip replacements and a 240% increase in knee replacements between 2000 and 2017. There has been a move to more active lifestyles, which wears out your joints faster. People want to stay active, so they opt to get the surgery instead of giving up and retiring to their armchairs, and watching TV.

The surgeries are also less invasive than they used to be, which means much quicker recovery times and less scarring. The metal joints implanted today can last for 30 years, as opposed to older joints that were lucky to make it past a decade.

Another major driver is soaring levels of obesity. Heavier people wear out their joints quicker. Does that mean Stryker is vulnerable to GLP-1 weight-loss drugs? We think that the mix of patients will change. In the long run, Stryker will sell fewer new knees to obese people, but the formerly obese people will start doing more exercise, and need new knees anyway.

As people live longer and joint replacement technology improves, doctors will do more of these surgeries.

MB&F, known for its avant-garde approach to independent watchmaking, has entered into a notable partnership with Chanel. Chanel has acquired a 25% stake in MB&F. This partnership allows MB&F to continue its innovative journey, supported by the stability and resources of a like-minded partner.

Max Busser founded MB&F in 2005, an independent watch brand known for its innovative and fine timepieces. With a master's degree in micro-technology engineering, Busser began his career at Jaeger-LeCoultre before becoming CEO of Harry Winston Rare Timepieces, where he launched the renowned Opus collection.

In 2022, MB&F introduced the LM Sequential EVO (pictured below), its first chronograph, which won the prestigious Aiguille d'Or at the Grand Prix d'Horlogerie de Genève.

Busser, who retains 60% ownership of MB&F, views this partnership as a natural progression as the company nears its 20th anniversary. He highlighted the importance of ensuring the brand's long-term future in a supportive business environment and noted that Chanel's involvement enables MB&F to maintain its independence without the pressure to focus solely on growth.

Chanel has a history of fostering horological collaborations, with investments and partnerships in brands like Romain Gauthier, F.P. Journe, and Tudor (through Kenissi). As MB&F looks forward to its 20th anniversary, the alliance with Chanel represents a new chapter for Busser and his team.

You need to be picky about the news you read. Drama sells, so the media is full of negative stories - Where to find good news online.

America has a hot-steel problem. Heat makes steel expand, moving molecules further apart, this affects rail lines - Rising temperatures are putting infrastructure at risk.

Asian markets are mostly in the green this morning. Equity benchmarks started the week strong in Hong Kong, India, mainland China, South Korea, and Taiwan.

In local company news, Grindrod reported a 7% decline in interim earnings, attributed to weak commodity prices. However, the company remains resilient, announcing plans to invest approximately R2 billion in its terminals and rail business.

It is a huge earnings week ahead with Nvidia and CrowdStrike reporting. Expect large share price moves from both companies, depending on how the numbers look.

US equity futures are unchanged pre-market, but that's not unusual early on a Monday morning. The Rand is trading at around R17.74 to the US Dollar.

It's the last week of August. Make it count.