Financial Mail articles from February 2009

Financial Mail archives from February 2009

Ask the guru.
February 27, 2009... It's only a few weeks into term, but I already feel behind academically. What can I do? Your first port of call for academic assistance should always be your university's academic development or student counselling centre. These centres are...

Out of Africa.
February 27, 2009... Byline: ARNOLD WENTZEL Out of Africa Every year, I meet one or two really good university students, and more often than not these students are from another African country. I have found that students from other African countries tend to...

Studies. Class of 2008.
February 27, 2009... Byline: Natasha Joseph STUDIES Universities are accepting the first wave of outcomes-based education matriculants. But has the curriculum equipped them for higher learning? There is a huge body of literature that argues that schools do...

Editor's note.
February 27, 2009... Byline: Shirley de Villiers Many SA universities were thrown into disarray earlier this year due to an unexpectedly large first-year intake. Though the country's general 2008 matric pass rate was down 2,5% from last year's 65%, about...

MONEY. Bank on cheap.
February 27, 2009... Byline: Robert Quarshie MONEY Bank on cheap Banking your money can be bewildering, and expensive. We take a look at the options available It is well-known that banks make the bulk of their profit from bank charges. These fees add up if...

ENTERTAINMENT INDUSTRY. All hands on deck.
February 27, 2009... Byline: Jonathan du Preez ENTERTAINMENT INDUSTRY All hands on deck Paul Esterhuizen has found the perfect work-study mix Between his full-time studies, the three days a week he plays cricket and his DJ residency at Billy the B.u.m.s. in...

ESSENTIAL QUESTIONS.
February 27, 2009... Byline: Jonathan du Preez ESSENTIAL QUESTIONS What is your annual turnover? It varies, as my studies dictate how much work I can take on. During university holidays it becomes more of a full-time job, and the pay is well worth the...

Campus News.
February 27, 2009... TV personality Hlomla Dandala, son of Congress of the People (Cope) presidential candidate Mvume Dandala, escaped injury last week when ANC and Sasco supporters allegedly stormed a Cope meeting on Walter Sisulu University's Butterworth...

This week on the web.
February 27, 2009... FM Campus online exclusive! Author and entrepreneur Timothy Ferriss quit his day job and went from earning US$40000 a year working 80-hour weeks, to earning $40000 a month on a four-hour week. That's a lot of dosh for less time than you spend...

Pointer. SUBSTITUTION EFFECT.
February 27, 2009... Pointer SUBSTITUTION EFFECT: When a good's price changes, a consumer will buy more of a lower-priced good and less of the higher-priced one.

Pointer. DOWNTURN.
February 27, 2009... Pointer DOWNTURN: A downward trend and worsening of business, stock market or economic activity.

Pointer. CORPORATE GOVERNANCE.
February 27, 2009... Pointer CORPORATE GOVERNANCE: Processes, policies and laws affecting how a corporation is directed.

Pointer. LAND REFORM.
February 27, 2009... Pointer LAND REFORM: Government programme to ensure the equitable distribution of productive land.

Pointer. PROTECTIONISM.
February 27, 2009... Pointer PROTECTIONISM: Government policy to protect local industry by limiting imports through restrictive tariffs and quotas.

DIAMOND INDUSTRY. Yesterday's frivolous luxuries.
February 27, 2009... DIAMOND INDUSTRY Yesterday's frivolous luxuries The sparkle wears off diamond stocks as disposable income dwindles, but China still loves its bling Your iPod, computer, tertiary education... even the chocolate bar you're about to eat, all...

ECONOMIC CRISIS. Headed for a recession?
February 27, 2009... ECONOMIC CRISIS Headed for a recession? Some optimistic that SA will not go into a deep recession The Great Depression earned its name from the terrible spill-over effects of the economic downturn in the US in the early 1930s. With a lack of...

CORPORATE GOVERNANCE.
February 27, 2009... CORPORATE GOVERNANCE Hail the new King Companies will soon have to toe the governance line Well-run companies can generate large amounts of revenue. But this wealth whether through the direct handiwork of owners, shareholders or directors,...

RURAL DEVELOPMENT. BEE, rural poor are election hot buttons.
February 27, 2009... RURAL DEVELOPMENT BEE, rural poor are election hot buttons Parties pull heartstrings to win votes as election nears In a democracy, voters elect their government based on the policies parties advocate: the party with the policies that appeal...

GLOBAL ECONOMY. Protectionism on the increase.
February 27, 2009... GLOBAL ECONOMY Protectionism on the increase Credit crunch spurs economic nationalism In the global economic system, countries, to a greater or lesser extent, use tariffs, subsidies and quotas to protect their home markets from international...

What really drives the oil price?
February 27, 2009... Byline: Ronak Gopaldas, Jean Temkin Ronak Gopaldas BComHons student, UCT There is a host of factors behind the oil price's volatility. However, the fluctuation is best explained by supply and demand. Oil production rests in the hands of...

What really drives the oil price?
February 27, 2009... Byline: Riaan Rossouw What really drives the oil price? Economics lecturer, North West University Oil prices are not only determined by supply, demand and market sentiment toward the physical product, but also by supply, demand and...

TALK ABOUT IT. Diamond Industry.
February 27, 2009... TALK ABOUT IT 1)How does the preference for a good or service affect its price in a competitive market? 2)What is the difference between a normal and a luxury good? 3)How can diamond producers avoid insolvency in turbulent financial times?

TALK ABOUT IT. Recession.
February 27, 2009... TALK ABOUT IT 1)When does a recession become a full-blown depression? What are the tell-tale signs? 2)What are the spillover effects of a crumbling SA manufacturing industry and what influence do they have on GDP? 3)Why could it have taken...

TALK ABOUT IT. Corporate Governance.
February 27, 2009... TALK ABOUT IT 1)What is the significance of the King Commission and why is it important to monitor companies? 2)Where does the King 3 code fall short in executing its purpose? 3)What kinds of behaviour constitute bad corporate governance? Are...

TALK ABOUT IT. Rural Development.
February 27, 2009... TALK ABOUT IT 1)In what ways are rural development and BEE different sides of the same coin? 2)How will increasing the pace of land reform lead to poverty alleviation in rural SA? 3)In addition to land reform, what does government have to do...

TALK ABOUT IT. Protectionism.
February 27, 2009... TALK ABOUT IT 1)How could protectionism push the world into another Great Depression? 2)What measures can states use to shift demand to domestic goods? Is this a good idea? 3)Would protectionism be most detrimental to the poor? Why?

ACCOUNTANT. She'sgoing places.
February 27, 2009... Byline: Robert Quarshie ACCOUNTANT She's going places Claire Ellison may have started out small, but she's planning on taking her auditing skills to a global stage when she finishes her training contract The modern day accountant has...

Fast Facts. Accountant.
February 27, 2009... Byline: Robert Quarshie In the morning, I get up at 6am, but that depends on where my clients are based. I dislike filling out time sheets. I most admire my dad; he has given me all the support and encouragement I've needed to...

SASOL. Carbon credit contention.
February 27, 2009... Byline: Prakash Naidoo SASOL Carbon credit contention Sasol's application to the UN to produce and sell carbon credits through its coal-to-liquids plant which could earn the company an estimated R1,1bn annually has been dismissed by...

TRUSTCO. First on board.
February 27, 2009... Byline: Larry Claasen TRUSTCO First on board The JSE dreams of becoming a home to companies from across the continent through its recently launched Africa Board. Trustco, a 17-year-old Namibian financial services company, last week...

Did you hear. Prizewinners.
February 27, 2009... YOU COULD WIN by sending news snippets, wit and gossip to Did You Hear? Published entries win R200. Please include your name, address and telephone number or you will not be eligible for any prizes. Send entries to: fmdidu@fm.co.za * BDFM...

Did you hear.
February 27, 2009... Some questions just don't have any suitable answer. Like this one: In whose shoes would you rather be? (a) Carl Niehaus (b) Joost van der Westhuizen (c) George W Bush. An anxious husband calls the hospital to ask about his pregnant wife....

Cash preservation.
February 27, 2009... Byline: NAZMEERA MOOLA Cash preservation Trying to live through current market conditions is a bit like being in a bad love affair, a girlfriend of mine points out. One day the refrain is, He called today, he must care about me. The next...

Criminal disregard for SA's interests.
February 27, 2009... Criminal disregard for SA's interests Seductive talk of Zimbabwe adopting the rand as its official currency makes good headlines and even better politics. If Zimbabwe were allowed either to peg its currency to the rand (as in the monetary...

No longer the darling of investors.
February 27, 2009... No longer the darling of investors Were analysts and investors being unreasonable when they bristled at Anglo American's decision to scrap its dividend for the first time in 70 years? One way of answering the question is that markets simply...

Priests and pugilists.
February 27, 2009... Byline: BARNEY MTHOMBOTHI Priests and pugilists It's too early to judge whether by opting for a man of the cloth, the Congress of the People, the new pretenders to the throne, are to use a cricketing metaphor on to a winning wicket. Like...

Tell us something useful.
February 27, 2009... Byline: SC Weiss Tell us something useful At last! Someone in the media (Editor's Note February 20) has said it. ANC Youth League president Julius Malema says nothing of value other than for satirists and cartoonists. Yet the media keeps...

Help in the long term.
February 27, 2009... Byline: G Jaumain Help in the long term American author Ed Middleswart makes one of the clearest statements I have heard about how to help the poor: To create effective long-term assistance for the poor worldwide, you must first target...

Don't look to US.
February 27, 2009... Byline: IRAJ ABEDIAN Don't look to US President Barack Obama's much-awaited stimulus package was signed into law on February 17 under the American Recovery & Reinvestment Act 2009. Its total value, spread over two years, is US$787bn. The...

Lords of Absa remain.
February 27, 2009... Byline: Joe Briggs Lords of Absa remain I read the article about Absa CEO Steve Booysen (Cover Story February 20) and was well rewarded with a good laugh. As an example of the changes that Steve has made (in the process of allegedly...

Draw the line with lobola.
February 27, 2009... Byline: Siyabonga Mhlongo Draw the line with lobola I have been moved by the article Marrying modernity and tradition (Fox February 13) to write this letter. I am utterly disappointed at the ideology underpinning the article. I have...

Another Week.
February 27, 2009... Another Week AT HOME Real GDP fell by an annualised 1,8% in Q4 of 2008 (compared with a gain of 0,2% in Q3) the first such economic contraction since 1998 and the worst since 1992, says Statistics SA. Investec says it has settled a pensions...

Cell C's sea of debt.
February 27, 2009... Byline: Duncan McLeod Cell C's sea of debt Jeffrey Hedberg has done a great job of turning mobile operator Cell C around. But the company is drowning in a sea of debt not of his making. Hedberg thinks Telkom should buy the company....

JOBS. Stress is showing.
February 27, 2009... Byline: Carol Paton JOBS Stress is showing The worst ravages of the global economic crisis may still be ahead for SA, but job shedding has begun WHAT IT MEANS: Thousands out of work. Some sectors to get relief. More...

GLOBAL ECONOMIC CRISIS: CAN SA ESCAPE THE WORST OF IT: How low can we go?
February 27, 2009... Byline: David Williams GLOBAL ECONOMIC CRISIS: CAN SA ESCAPE THE WORST OF IT How low can we go? Our banks, mercifully, were quarantined, but there's no question SA will take pain from the global economic crisis. How bad will it get? We...

DATES TO REMEMBER.
February 27, 2009... DATES TO REMEMBER Last day to trade cum dividend Company Date Dividend ArcelorMittal Mar 6 365c Assore Mar 6 1000c Distell Mar 6 124c Emira Prop Fund Mar 6 48,79c Growthpoint Mar 6 56,3c Hospitality-A Mar 6 54,72cs Hospitality-B Mar 6 92,04cs...

DISTELL. Just the spirit.
February 27, 2009... Byline: Andrew McNulty DISTELL Just the spirit Proponents of investments in consumer brands say they can provide superior long-term growth, higher margins and resilience in difficult conditions. Richemont, British American Tobacco...

Retails sales.
February 27, 2009... Byline: Razina Munshi Retail sales Sales in the retail sector fell by just 0,1% year on year in December following a series of sharp drops in the previous seven months. Sales improved in volume terms during December, which is usually a...

ECONOMIC INDICATORS.
February 27, 2009... -1,8% GDP growth Economic growth shrunk during the fourth quarter of 2008 as the effects of the global economic crisis set in. It is the first quarterly fall in a decade. GDP grew by 3,1% during 2008. GDP growth in 2007 was 5,1%. 39% of...

DIAMONDS. Chinese will be a factor.
February 27, 2009... Byline: Matthew Hill DIAMONDS Chinese will be a factor Down and out US consumers can barely make payments on their cars and houses. Getting them to buy diamonds must be like trying to flog a Ferrari to a Hillbrow beggar. While demand...

RURAL DEVELOPMENT.The poor cousin.
February 27, 2009... Byline: Sibonelo Radebe RURAL DEVELOPMENT. The poor cousin Rural development is becoming the new buzzword, and threatens to overtake BEE WHAT IT MEANS: Gap widening between urban and rural poor. ANC, Cope promise to relieve...

PROPERTY : Predators smell V&A blood.
February 27, 2009... Byline: Ian Fife PROPERTY: Predators smell V& A blood SA's property icon could be headed for the cliff if it can't refund next month WHAT IT MEANS: Refunding of the icon property not certain. Predators hover. Few have a big enough...

101: What is an ETF?
February 27, 2009... Byline: Matthew Hill What is an ETF? Exchange-traded funds are investment products that track stock markets, sectors or commodities. They are traded on the market like a share. What types do you get? SA's biggest ETF is NewGold,...

ENTREPRENEUR. Ceiling the real deal.
February 27, 2009... Byline: Larry Claasen ENTREPRENEUR Ceiling the real deal Brett Downey is one of only a handful of building contractors who can repair, refurbish and make pressed ceilings. Decorative pressed-tin ceilings were in vogue until about the...

AGRICULTURE. Pay to be probed.
February 27, 2009... Byline: Shannon Sherry AGRICULTURE Pay to be probed A challenge by the Transvaal Agricultural Union (TAU) to fertiliser manufacturers to contribute to a fund to probe alleged price collusion in their industry is being met. TAU deputy...

GIMME. Swiss army phone.
February 27, 2009... Byline: Larry Claasen GIMME Swiss army phone The Nokia N79 is not for those who want a mobile phone simply to make and receive calls. It's a sophisticate's machine packed with so many features and gizmos that it has been called the Swiss...

THE ENVIRONMENT. Cellular clean-up.
February 27, 2009... Byline: Duncan McLeod THE ENVIRONMENT Cellular clean-up The world has 4bn cellphone users, according to the latest industry figures. That could mean that thousands of tons of electronic gadgets, many of them containing toxic chemicals,...

THE PLACE TO BE OR NOT TO BE. A welcome brake - COLESBERG.
February 27, 2009... Byline: David Furlonger THE PLACE TO BE OR NOT TO BE A welcome brake COLESBERG. How far: Cape Town 858km, Durban 706km, Johannesburg 685km, Port Elizabeth 433km For most motorists travelling between Gauteng and the Cape coast, the...

WHERE ARE THEY NOW? Work in progress - Fattis & Monis.
February 27, 2009... Byline: Sasha Planting WHERE ARE THEY NOW? Work in progress The seven-month strike against Fattis & Monis in 1979 was as much a landmark in union rights as a triumph in community solidarity. It coincided with the Wiehahn [labour] reforms...

Generous spender halted.
February 27, 2009... Byline: Ian Fife Generous spender halted When Dubai World won a slice of Cape Town's V& A Waterfront, it launched into an African spending spree that may not be equalled for decades. But its fortunes are turning and FM sources say the...

ECONOMY: PROTECTIONISM. World trade crisis alert.
February 27, 2009... Byline: Claire Bisseker ECONOMY: PROTECTIONISM World trade crisis alert Protectionism is on the rise globally and, by inviting retaliation, it risks the spread of beggar-thy-neighbour policies WHAT IT MEANS: Trade protectionism on the...

GENETICALLY MODIFIED CROPS. More food for thought.
February 27, 2009... Byline: Shannon Sherry GENETICALLY MODIFIED CROPS More food for thought The world is looking to genetically modified (GM) crops to solve the twin problems of hunger and scarce food. Though food prices have fallen from the highs of...

CORPORATE GOVERNANCE. In defence of shareholders.
February 27, 2009... Byline: Rob Rose CORPORATE GOVERNANCE. In defence of shareholders King 3 might force some companies to ditch shoddy practices WHAT IT MEANS: New rules on directors' pay. No limits on directors' tenure on boards. There were many...

MUNICIPALITIES. Too dependent on state.
February 27, 2009... Byline: Prakash Naidoo MUNICIPALITIES Too dependent on state Central government funding of SA's 283 municipalities has so far outpaced their own ability to generate revenue, and national treasury now fears the situation will be...

INDUSTRIAL ESPIONAGE. No help from the courts.
February 27, 2009... Byline: Rob Rose INDUSTRIAL ESPIONAGE No help from the courts WHAT IT MEANS: BJM settles out of court for about R1,8m. Long delay in court case is a worry. Our actions were vindicated by the amount we received from BJM...

OIL MARKET. Slip sliding away.
February 27, 2009... Byline: Andrew McNulty OIL MARKET Slip sliding away Few commodities epitomise the collapse in market conditions as dramatically as oil. Last June, the price of crude oil was above US$145/barrel and some producers and investors were...

QUESTIONS & ANSWERS. IDC loan sharing - CEO Geoff Qhena.
February 27, 2009... Byline: Paton QUESTIONS & ANSWERS IDC loan sharing The Industrial Development Corp (IDC) is trying to help save companies affected by the global downturn. Carol asks CEO Geoff Qhena how What is the IDC's role? To promote industrial and...

SA AIRWAYS. Many unhappy returns.
February 27, 2009... Byline: Thebe Mabanga and David Furlonger SA AIRWAYS Many unhappy returns SA Airways (SAA) is celebrating its 75th anniversary in 2009 with the promise that this will be a memorable year. It's already that, but not in the way the airline...

TELECOMMUNICATIONS. Better to be mobile.
February 27, 2009... Byline: Duncan McLeod TELECOMMUNICATIONS Better to be mobile Mobile operators are better placed than their fixed-line counterparts to weather the economic storm that is engulfing the planet. This is because they have greater flexibility...

PUBLIC-PRIVATE PARTNERSHIPS. Time to stop dragging feet.
February 27, 2009... Byline: Matthew Hill PUBLIC-PRIVATE PARTNERSHIPS Time to stop dragging feet Railways linking coal and iron ore mines to export harbours have lacked capacity or have just been inefficient, which is why the miners failed to take full...

PROFILE. Where the heart is - Martine Schaffer.
February 27, 2009... Byline: Prakash Naidoo PROFILE Where the heart is It took 14 years of living abroad for Durban-born Martine Schaffer to realise that SA was where she really wanted to be all along. The journey home has been an incredible growing...

ART A big man and his befuddlement.
February 27, 2009... Byline: Sean O'Toole ART A big man and his befuddlement Brett Kebble's art collection is due to go under the hammer in May, writes Sean O'Toole It is the start of autumn in an anniversary year: April 2004. A reporter sits facing his...

MUST SEE: STRAUSS & CO AUCTION.
February 27, 2009... MUST SEE: STRAUSS & CO AUCTION WHERE: Johannesburg Country Club1 Napier Road, Auckland Park Tel: (011) 728-8246 Stephan Welz is a tall, avuncular figure. When he steps onto the podium with his gavel on March 9 at the Johannesburg Country...

RESTAURANT CAPE. Big on enjoyment.
February 27, 2009... Byline: Jane Broughton RESTAURANT CAPE Big on enjoyment GENOT RESTAURANT. Address: Klein Genot Wine & Country Estate, Green Valley Road, Franschhoek. Tel: (021) 876-2738. Go to: www.kleingenot.com Restaurants amid the...

CINEMA. Deep in the freak show.
February 27, 2009... Byline: Peter Wilhelm CINEMA Deep in the freak show A brutal account of what happens to ageing professional wrestlers The Wrestler Directed by Darren Aronofsky Lead roles: Mickey Rourke Marisa Tomei Evan Rachel Wood One has to begin...

SCARRED POTS.
February 27, 2009... SCARRED POTS It's a big leap from Gugulethu where Andile Dyalvane first found his design feet at what was then Sivuyile Technical College to the galleries and trade shows of Europe, the US and Canada. Yet that's where this constantly...

DESIGN. Eyes on the world.
February 27, 2009... Byline: Hilary Prendini Toffoli DESIGN Eyes on the world Overseas buyers and the cream of SA's design talent will be at the Design Indaba Expo this weekend following the conference in the Cape Town International Convention Centre. talks...

FOOD FOR THOUGHT. Meat and greet - Mashika Butchery.
February 27, 2009... Byline: Justice Malala FOOD FOR THOUGHT Meat and greet JUSTICE MALALA ***Mashika Butchery 8493 Block T, Nkwane Street, Mamelodi West. Tel: (012) 805-4107. *****Obama! ****Excellent ***Good **Julius Malema *Carl Niehaus There is...

DRINKS WITH THE FM. Hands-on man.
February 27, 2009... Byline: Linda Stafford DRINKS WITH THE FM Hands-on man with One& Only Resorts president Paul Jones at the Michelangelo Towers, Nelson Mandela Square, Sandton HOW HE CHILLS: Strives for balance through exercise, particularly Bikram yoga...

RUGBY. Know when to intercept.
February 27, 2009... Byline: David Williams RUGBY Know when to intercept The interception as a deliberate tactic has been mastered by Stormers and Springbok centre Jean de Villiers. It is best attempted after a long spell of broken play, when an opposition...

In the dog box.
February 27, 2009... Byline: Matthew Hill In the dog box You could almost smell the burning rubber as Anglo American's profit streak screeched to a halt. The company responded quickly. It's cutting 19 000 jobs, more than half its planned 2009 capital, and...

SUPER GROUP. Banks in it too.
February 27, 2009... Byline: Rob Rose SUPER GROUP Banks in it too As heavy rain pelts down on Super Group, some banks who lent it an umbrella during the sunny times are mulling over whether to ask for it back. Rumours of the transport company's imminent...

MINING INVESTMENT. Rio in a petri dish.
February 27, 2009... Byline: Matthew Hill MINING INVESTMENT Rio in a petri dish As low commodity prices suffocate cash flows, miners are desperate for a lifeline. China is keen to throw one, but this comes at a cost WHAT IT MEANS: China is buying up...

Crisis watch.
February 27, 2009... Byline: Duncan McLeod Crisis watch MTN has become the latest company to fall victim to the deteriorating economy. The firm, which has operations in 21 countries, has had to postpone indefinitely plans to forge a giant new empowerment...