Financial Mail articles from April 2009

Financial Mail archives from April 2009

Ask the guru.
April 17, 2009... If, in the national election, I only get to vote for a political party, how is the president elected? SA's electoral system is a party list proportional representation system. This means that prior to elections each political party makes...

Defer the dream.
April 17, 2009... Byline: PRINCE MASHELE Defer the dream In his magisterial book, Power, philosopher Bertrand Russell warns us: In daydreams, there is no limit to imagined triumphs, and if they are regarded as possible, efforts will be made to achieve...

ISSUE. Make your mark.
April 17, 2009... Byline: Natasha Joseph ISSUE Make your mark The future belongs to young South Africans who exercise their right to vote More than 23m South Africans are registered to vote in this year's national and provincial elections on April 22....

Editor's note.
April 17, 2009... Byline: Shirley de Villiers With so much going on in the headlines the rise of the Congress of the People; the DA warning that an ANC two-thirds majority will spell a failed state; South Africans abroad being given the vote; the National...

This week on the web.
April 17, 2009... Win with FM Campus! Not yet put pen to paper for our Big Question competition? To stand a chance of winning music vouchers worth R300 from Grant Thornton, all you have to do is e-mail your 150-word answer to last week's question Should...

Pointer: OUTPUT.
April 17, 2009... Pointer OUTPUT: The quantity of a good that is produced usually within a given period of time.

Pointer: LEFTIST.
April 17, 2009... Pointer LEFTIST: A radical or liberal position or doctrine, especially in politics.

Pointer: EXCHANGE RATE.
April 17, 2009... Pointer EXCHANGE RATE: The amount of one currency that a person or institution defines as equivalent to another currency.

Pointer: REAL INTEREST RATE.
April 17, 2009... Pointer REAL INTEREST RATE: The interest rate adjusted to account for inflation's effect on purchasing power; the actual interest rate minus the inflation rate.

Pointer: ENACT.
April 17, 2009... Pointer ENACT: To establish legislation; to pass a parliamentary bill into law.

PRIVATE EQUITY. Room for more pie?
April 17, 2009... PRIVATE EQUITY. Room for more pie? Small pie company beats the odds despite grim market conditions They don't necessarily have all the vital nutrients and vitamins we need and they're often the butt of fatty jokes in the food industry...

POLITICS. Gearing up for the hot seat.
April 17, 2009... POLITICS Gearing up for the hot seat Zuma gathers his allies ahead of elections They say politics and business are intimately connected. This may not always be true, as the two are separate disciplines altogether. Though every business has...

AGRICULTURE. Back on the horse.
April 17, 2009... AGRICULTURE Back on the horse SA's agriculture industry ploughs its way back from a negative trade balance As a nation there are certain goods we would like to consume and certain services we would like to make use of, but don't have the...

GLOBAL ECONOMY. Recession timebomb ticks on.
April 17, 2009... GLOBAL ECONOMY Recession timebomb ticks on Systemic failures may have caused the global crisis By the time you graduate, with any luck, the global financial crisis will be over. That's the word from Reserve Bank governor Tito Mboweni, who...

CRIME. Tough on criminals and privacy.
April 17, 2009... CRIME Tough on criminals and privacy New legislation pits human rights against crime fighting One of the challenges of government is balancing competing interests and demands. In some cases, finding this balance involves trading rights and...

TIPS FROM THE TOP. Electing for law.
April 17, 2009... Byline: Robert Quarshie TIPS FROM THE TOP. Electing for law Chief electoral officer Pansy Tlakula thinks South Africans should grab international legal opportunities on offer and exercise their right to vote! The E word is on...

What should the new government'seconomic policy imperative be?
April 17, 2009... Byline: Mduduzi Biyase Economics lecturer, UJ SA's economic performance has steadily improved over the past few years, yet the benefits have not translated into improved service delivery: 15% of households do not have access to potable...

What should the new government'seconomic policy imperative be?
April 17, 2009... Byline: Eusebius McKaiser What should the new government's economic policy imperative be? Eusebius McKaiser Analyst, Centre for the Study of Democracy The major focus should be a boring one: ensuring responsible, efficient allocation of...

TALK ABOUT IT; Private equity.
April 17, 2009... TALK ABOUT IT 1)What is the difference between normal and economic profit? Which is better to have? 2)Why is the marginal revenue curve horizontal for a commodity in a perfectly competitive industry? 3)How can a company minimise its overhead...

TALK ABOUT IT: Politics.
April 17, 2009... TALK ABOUT IT 1)How does the economic policy stance of the state affect a country's GDP, as well as its international relations? 2)How does the SA president appoint his/her cabinet ministers? Is it a fair process? 3)What are the pros and cons...

TALK ABOUT IT: Agriculture.
April 17, 2009... TALK ABOUT IT 1)How does the export industry contribute, both directly and indirectly, to the gross domestic product of an economy? 2)Is a negative balance of trade necessarily a bad thing? 3)What other components contribute to an economy's...

TALK ABOUT IT: Recession.
April 17, 2009... TALK ABOUT IT 1)Why is an L-shaped recession more likely now than a year ago? 2)What will an L-shaped recession mean for the economies of developing countries such as SA? 3)What are the best prospects for global economic recovery? What can...

TALK ABOUT IT: Crime.
April 17, 2009... TALK ABOUT IT 1)What is the process by which legislation is enacted in SA? 2)Is crime prevention more important than the right to privacy? 3)What are the conditions, if any, that have to be met for a government policy to override human rights?

ANALYST. Politically correct.
April 17, 2009... Byline: Garreth Bloor ANALYST. Politically correct With elections just days away, it's time to put political theory in practice Temperatures are up people are campaigning vigorously and that is what is expected in an election where...

A WORD ON SA POLITICS.
April 17, 2009... A WORD ON SA POLITICS The ANC as a government is quite comfortable working within the terrain of the current policies. Therefore, I do not see massive changes on the cards for SA. They simply would not be able to adopt a new terrain perhaps a...

AGRICULTURAL SECTOR. In a purple patch.
April 17, 2009... Byline: Shannon Sherry AGRICULTURAL SECTOR In a purple patch It was just nine months ago that Free State-based agricultural economist Johan Willemse issued a bracing challenge to farmers and farming businesses: If you can't make money in...

Did you hear.
April 17, 2009... A third of British drivers have ended up in a field by following GPS directions, a poll reveals. Others have taken wrong turns into farmyards and had their licences endorsed for breaking road laws. One delivery driver took a jumping...

Populist antidote.
April 17, 2009... Byline: NAZMEERA MOOLA Populist antidote It's wonderful when a friend who lives half way across the world is unexpectedly in town. Having him and another couple round for Saturday brunch is a treat. Having him also bring the 23 children...

Quotas not a fit policy for growth.
April 17, 2009... Quotas not a fit policy for growth Seardel's decision to close down Frame Textiles, leading to 1400 workers losing their jobs, will encourage the incoming administration to toy with the idea of protecting local firms from increased...

Ads no tribute to the department.
April 17, 2009... Ads no tribute to the department An extraordinary woman, unassuming, determined and unrelenting on matters of principle these were among the words used by President Kgalema Motlanthe in his dignified eulogy to Ivy Matsepe-Casaburri, who died...

Not a neat solution.
April 17, 2009... Byline: BARNEY MTHOMBOTHI Not a neat solution There was, of course, never any doubt that Jacob Zuma, despite his legal woes, would become president of the country. Of concern to him though was that the charges would have been like a...

RUGBY. Ping pong not the answer.
April 17, 2009... Byline: David Williams RUGBY Ping pong not the answer The experimental laws are rewarding sides that aim to score their points through pressuring the opposition into making mistakes. That's why the Sharks and Bulls are filling two of the...

SIMON CONSTANCE.
April 17, 2009... Byline: Lay-offs in a crunch Millions of jobs have been lost worldwide and millions more are likely to go. In SA, thousands of miners and other workers face retrenchment as the recession slashes corporate profits. Much is made of the...

Another Week.
April 17, 2009... Another Week AT HOME SA's largest clothing and textile company, Seardel, is to close Frame Textiles, affecting 1400 workers. SA manufacturing output fell 15% year-on-year in February, says Stats SA, which analysts say strongly points to a...

Fees not exploitative.
April 17, 2009... Byline: Biren Valodia Fees not exploitative Zokufa should be aware of studies by reputable organisations that found private hospital pricing in SA is not exploitative Your article on the proposed National Health Insurance (NHI) scheme...

Life after Poison Ivy.
April 17, 2009... Byline: Duncan McLeod Life after Poison Ivy SA's likely next president, Jacob Zuma, will soon have the difficult task of appointing a cabinet. It is crucial that he installs a competent communications minister to run what has become one...

COMINGS & GOINGS.
April 17, 2009... COMINGS & GOINGS Piet van Zyl. York Timber has named Van Zyl new CEO to steer it through a changing economic environment. A previous Hans Merensky Timber MD, he replaces Lance Cooper, who becomes York's marketing GM. Malcolm Lobban....

Constitutionality questioned.
April 17, 2009... Byline: Nandi Mokoena Constitutionality questioned Your article on the Competition Amendment Bill (Features April 3), misrepresented the statements I made in a media briefing. The competition commission's comments on earlier versions of...

WHERE BUSINESS STANDS. An ear to the ground.
April 17, 2009... Byline: Carol Paton and Thebe Mabanga WHERE BUSINESS STANDS An ear to the ground As a new political elite takes shape around Zuma, who in business will have the presidential ear? Like his predecessor, Thabo Mbeki, Zuma has a coterie of...

BUSINESS VS POLITICS. Recipe for self-service.
April 17, 2009... Byline: Prakash Naidoo BUSINESS VS POLITICS Recipe for self-service Politics and money, and by extension business, have always been an entangled and toxic web. But when businesspeople who still control companies which generate...

Party funding: The bankrollers.
April 17, 2009... Byline: Thebe Mabanga Party funding: The bankrollers The ANC's election war chest has benefited from a corporate funding formula that invariably favours the majority party; but many SA companies are tightfisted when it comes to politics....

ZUMA: THE ROAD TO THE PRESIDENCY. Accidental hero.
April 17, 2009... Byline: Barney Mthombothi ZUMA: THE ROAD TO THE PRESIDENCY Accidental hero Jacob Zuma couldn't have plotted his meteoric ascendency any better if he had done it himself. As SA enters the final days before the elections, deconstructs the...

THE ZUMA ESTABLISHMENT. Power players.
April 17, 2009... Byline: Carol Paton THE ZUMA ESTABLISHMENT Power players When Jacob Zuma takes office as president, a new elite will gather around him. looks at who will be in and who will be out of the Zuma establishment. Who will he take advice from,...

Did you hear. Prizewinners.
April 17, 2009... YOU COULD WIN a prize or cash by sending news snippets, wit and gossip to Did You Hear? Published entries win R200. Please include your name, address and telephone number. Last week's Vergelegen wine prize winners are: Gerhard Schroder,...

Economic Indicators.
April 17, 2009... -15 percent y/y Manufacturing output plunged in February, suggesting GDP may contract further in the first quarter. The worst affected was the motor vehicle and parts category which fell by 37% y/y. 78,9 points The SA Chamber of Commerce &...

Forex reserves.
April 17, 2009... Byline: Razina Munshi Forex reserves Foreign exchange reserves strengthened by 1,5% to US$30,4bn in March, suggesting the Reserve Bank may have used the opportunity presented by the stronger rand to boost its reserves. The rand...

ADVERTISING. Maverick moves.
April 17, 2009... Byline: Matebello Motloung ADVERTISING Maverick moves Big or small, fake or real, breasts bare ones have been a winning ingredient in advertising since the industry began. From jeans and perfumes to online services and cellphones, brands...

AGRICULTURE. Balanced change.
April 17, 2009... Byline: Shannon Sherry AGRICULTURE Balanced change SA regained its position as a net exporter of agricultural products last year, a turnaround from 2007 when the negative balance of trade in farm goods caused some consternation. ...

CRIME. DNA database bill delayed.
April 17, 2009... Byline: Thebe Mabanga CRIME DNA database bill delayed The struggle for a balance between close monitoring of individuals for the purposes of preventing crime on the one hand, and human rights and personal freedom on the other, is brought...

JUDICIARY. The law's delay.
April 17, 2009... Byline: Prakash Naidoo JUDICIARY The law's delay The barely disguised contempt that Cape judge president John Hlophe has shown for the Judicial Services Commission (JSC) has left its members privately seething. Hlophe has several...

HOUSE PRICES. Eye of the storm.
April 17, 2009... Byline: Ian Fife HOUSE PRICES Eye of the storm The property roller-coaster is now at the steep and scary part. Absa economists project a 4% annual decline in house prices by mid-June, after they fell 0,4% in the year to March. ...

GENERAL MOTORS SA. Future imperfect.
April 17, 2009... Byline: David Furlonger GENERAL MOTORS SA Future imperfect Ask any sports coach: is there anything more unnerving than an unsolicited vote of confidence from the boardroom? The main reason for it is usually to cover the sound of knives...

PRIVATE EQUITY. Bigger slice of the pie.
April 17, 2009... Byline: Sasha Planting PRIVATE EQUITY Bigger slice of the pie Consumers may be pulling in their belts when it comes to discretionary spending on items like furniture and luxury clothing. But not so when it comes to food, and pies in...

RALLY TO READ. See a positive side of SA.
April 17, 2009... Byline: David Furlonger RALLY TO READ See a positive side of SA It's never too late to do the right thing. If you can leave behind the cares of the world while doing it, so much the better. The first Rally To Read 2009 convoys will...

10. Intercepting communications.
April 17, 2009... Byline: Prakash Naidoo What is the SA law on intercepting communication? Only the National Intelligence Agency (NIA), SA Secret Service and the police may intercept communications. But the intercept warrant has to be authorised by a...

ENTREPRENEUR. Widening his horizon.
April 17, 2009... Byline: Duncan McLeod ENTREPRENEUR Widening his horizon South African IT entrepreneur Richard Dewing has attracted the attention of a venture capital fund created by SAP cofounder Hasso Plattner, one of the world's best-known technology...

GIMME. Teeny, tiny music player.
April 17, 2009... Byline: Duncan McLeod GIMME Teeny, tiny music player Apple's newest iPod Shuffle is impossibly small. The 4GB digital music player, which stores about 1000 average-length songs, is half the size of the previous-generation Shuffle and at...

Licensed to drive.
April 17, 2009... Byline: David Furlonger Licensed to drive South Africans whose driving licences expire while they are overseas have a second chance to drive legally. Several countries allow SA citizens living or working there to convert SA licences...

PROFILE. High fidelity.
April 17, 2009... Byline: David Furlonger PROFILE High fidelity He jokingly calls himself Rapid Response Richard, after taking nearly nine years to marry his long-time girlfriend in 2008. In fact, it's an apt moniker for Richard Myerscough. The new boss...

WORLD ECONOMY. Moral failure.
April 17, 2009... Byline: Clairae Bisseker WORLD ECONOMY Moral failure What caused the global crisis and what will the recovery look like? WHAT IT MEANS. Quick recovery is unlikely. New world order required I am confident that the global economic...

ELECTION T-SHIRTS. Good for large and small.
April 17, 2009... Byline: Matthew Hill ELECTION T-SHIRTS Good for large and small While the global crisis leaves scores of companies threadbare, the local T-shirt printing industry is being stretched to capacity. Election campaigning and the accompanying...

TELECOMMUNICATIONS. Didata's big gamble.
April 17, 2009... Byline: Duncan McLeod TELECOMMUNICATIONS Didata's big gamble WHAT IT MEANS. Didata's IS to invest hundreds of millions. Top 220 clients to benefit from fibre project We sold more data centre capacity last year than in the...

MEDICINE PRICES. Dispensing expenses.
April 17, 2009... Byline: Shoks Mzolo MEDICINE PRICES Dispensing expenses South Africans face a jump in medical bills next year thanks in part to increases in the drug-dispensing fees for doctors and the single-exit price (SEP). Fees by dispensing...

QUOTE OF THE WEEK.
April 17, 2009... Byline: JESSIE DUARTE QUOTE OF THE WEEK It is true [that food parcels are being provided by the ANC government]... The fact of the matter is that the ANC-led government will continue to provide social assistance ANC SPOKESMAN...

WAGE BARGAINING. Strike season ahead.
April 17, 2009... Byline: Razina Munshi WAGE BARGAINING Strike season ahead Striking truck drivers demanding higher wages this month are just the beginning of what 2009 holds on the labour front. Fuel supplies at 300 petrol stations across the country...

Judiciary has lost credibility.
April 17, 2009... Byline: Pat Rogers Judiciary has lost credibility Last year Barney Mthombothi (Editor's Note June 27) wrote that the seriousness of the problems engulfing the judiciary could not be underestimated. We should deal with it now, he warned,...

CINEMA. Hitler's children.
April 17, 2009... Byline: Peter Wilhelm CINEMA Hitler's children A German film about the youthful gang that assaulted and killed the privileged The Baader-Meinhof Complex. Directed by Uli Edel Lead roles: Martina Gedeck; Moritz Bleibtrau; Johanna...

CONFERENCES. Glamorous yet functional.
April 17, 2009... Byline: Linda Stafford CONFERENCES Glamorous yet functional TOWNHOUSE HOTEL & CONFERENCE CENTRE. Address: 60 Corporation Street, Cape Town. Tel: (021) 465-7050 www.townhouse.co.za Conference centres especially in hotels used to...

FOOD FOR THOUGHT. Out with the in crowd.
April 17, 2009... Byline: JUSTICE MALALA FOOD FOR THOUGHT Out with the in crowd **** Doppio Zero (Newtown), 15 Miriam Makeba Street, Newtown. Tel: (011) 492-0377. ***** Obama!; **** Excellent; *** Good; ** Mugabe; * Pallo Jordan We all know about...

PROPERTY MELROSE ARCH PIAZZA. The way we'll live.
April 17, 2009... Byline: Ian Fife PROPERTY MELROSE ARCH PIAZZA The way we'll live Is Jo'burg's new street life choice more Dubai than Europe? ponders the question HOT SHOPS. @ Home Livingspace: No need for people in the Old North to trek to the New...

A PLATEFUL IN A PIAZZA.
April 17, 2009... Byline: Linda Stafford A PLATEFUL IN A PIAZZA Melrose Archers have never gone hungry. And now there's even more on their collective plate at the new Piazza. Not all were open two weeks after its launch, but already the adventurous...

AT BREAKFAST WITH THE FM. An eye on the prize.
April 17, 2009... Byline: Matebello Motloung AT BREAKFAST WITH THE FM An eye on the prize with Draftfcb Johannesburg MD Jerry Mpufane at Bella, Sandton HOW HE CHILLS. Enjoys weekend getaways, long dinners with friends, reading and comedy shows Jerry...

EATING OUT GAUTENG. Long walk to feed 'em.
April 17, 2009... Byline: Anna Trapido EATING OUT GAUTENG Long walk to feed 'em ABYSINIA. Address: Corner Queen and Langerman streets, Kensington, Johannesburg. Tel: 072-918-8824. ZEMARA. Address: 933 Schoeman Street, Arcadia, Pretoria....

ADCOCK INGRAM/CIPLA MEDPRO. It's up to the Indians.
April 17, 2009... Byline: Shoks Mzolo ADCOCK INGRAM/CIPLA MEDPRO It's up to the Indians SA has officially caught pharmaceutical mergers & acquisition fever with Adcock Ingram's firm intention to buy Cipla Medpro, a smaller rival, for R2,125bn. But,...

Crisis watch.
April 17, 2009... Byline: Larry Claasen Crisis watch Marketing types are fond of going on about how some products and luxury brands tend to do well in an economic slowdown. This view is backed up by Leonard Lauder, the chairman of cosmetics group...

MICROLENDING/BANKS. Sticking to fundamentals.
April 17, 2009... Byline: Rob Rose MICROLENDING/BANKS Sticking to fundamentals A bulldog-like adherence to the tried and tested is quintessential Capitec. The bank is myopic to a fault, aggressively eschewing anything fancy in favour of giving unsecured...

Diamond: Phumelela. Dog: Sun International.
April 17, 2009... Byline: Jamie Carr DIAMONDS & DOGS 's picks of the week Diamond Phumelela Think back a year, to a world where a company declaring earnings marginally down would be looking for a new CEO rather than suggesting it wasn't a bad performance...

JASCO. Yet to perform.
April 17, 2009... Byline: Larry Claasen JASCO Yet to perform If Jasco were a professional rugby team, chances are it would be the Johannesburg-based Lions. Like the Lions, the electronics group looks good on paper but has not lived up to that billing on...

MEDIA. Breaking the stranglehold.
April 17, 2009... Byline: Matebello Motloung MEDIA Breaking the stranglehold First it was pay-TV, now it's the commercial radio industry's turn to have its dominance by a handful of players ended. The Independent Communications Authority of SA (Icasa)...

MINING. In for a hiding.
April 17, 2009... Byline: Matthew Hill MINING In for a hiding Investors have started to dip their feet into mining equities again. But they may get burnt WHAT IT MEANS. Gold will outshine general mining. Mining companies in for earnings hiding...

NASPERS. Not looking at its navel.
April 17, 2009... Byline: Matebello Motloung NASPERS Not looking at its navel In true maverick style, listed media giant Naspers, whose value (R70bn) has improved slightly in the past year, is refusing to let the financial crisis put the brakes on its...

MIRANDA MINERAL HOLDINGS. Coal.
April 17, 2009... Byline: Rob Rose MIRANDA MINERAL HOLDINGS COAL Price: 69c 6m Feb T/O (R000) EBT (Rm) EPS (c) DPS (c) Mkt cap: R170,7m 2009 (10,3) (4,4) PE: 2008 263 (3,5) (1,8) Sector: 20 t s -100% -194% -144% If you believe in coal, and a net asset...

PHUMELELA GAMING. Gambling.
April 17, 2009... Byline: Rob Rose PHUMELELA GAMING GAMBLING Price: R9,44 6m Jan T/O (Rbn) EBT (Rm) EPS (c) DPS (c) Mkt cap: R727,5m 2008 1,4 56,8 49,7 25 PE: 8,3 2007 1,3 91,9 85,2 25 Sector: 10,1 t s +7% -38% -42% Mixed results from the company that...

TELEMASTERS. Pretorius still the boss.
April 17, 2009... Byline: Larry Claasen TELEMASTERS Pretorius still the boss Mario Pretorius's claim that he is giving up control of the company he founded is an exaggeration. Yes, he is giving up the job of executive chairman of telecom company...