Financial Mail articles from January 2009

Financial Mail archives from January 2009

We have not been here before.
January 30, 2009... We have not been here before If one strips the rhetoric from the three main parties, it is clear they are all aiming at the same target Election manifestos make for interesting reading. Not because they give us any sense of what our lives...

Banking in numbers.
January 30, 2009... Byline: Razina Munshi Banking in numbers 10m is the record number of customers of an SA bank, achieved by Absa this month. SA's adult population (over 16) is about 31m. 1900 people log into Absa's Internet service every minute....

Conflicting views.
January 30, 2009... Byline: Rob Rose LAW SOCIETY PROBE Conflicting views Law firm Cliffe Dekker Hofmeyr (CLH) is the subject of a complaint to the SA Law Society over its alleged failure to reveal it was acting for both sides in a dispute. This forms...

Comings & goings.
January 30, 2009... COMINGS & GOINGS Richard Parsons: Replaces Sir Win Bischoff (who is retiring) as chairman of Citi next month. Citi, which is to split into two units, has had five quarters of losses and has received US$45bn in government support. Rob...

Gold.
January 30, 2009... Last week, the price of gold increased considerably, jumping above the US$900/oz level for the first time in three months, as tumbling equity markets, declining risk aversion and renewed concern about the outlook for the global economy...

Platinum spot price.
January 30, 2009... Platinum for immediate delivery fluctuated wildly last week, falling significantly at the start only to reverse most of its losses a few days later. Platinum, used in pollution-control devices for car and truck exhausts, fell sharply last...

Brent crude.
January 30, 2009... The price of Brent crude oil increased more than 6% last week as slumping equity markets boosted demand for commodities as an alternative asset while supply-related concerns seemingly outweighed slowing demand factors. Oil prices jumped last...

Supertanker ahead.
January 30, 2009... Byline: Stephen Cranston REFORM: HOW IT AFFECTS YOU Supertanker ahead There may soon be just 200 funds alongside the new megafund, and years before universal cover is realised It's quite hard to convince people now that being forced to...

A Chile reception.
January 30, 2009... A Chile reception The ideological fault line between the private sector and government, particularly social development, is demonstrated by the difference in their attitudes to Chile. The Chilean pension model, which SA is trying to emulate,...

No obvious investment pic(k)s.
January 30, 2009... No obvious investment pic(k)s Because it's the state's in-house asset manager, you might expect the Public Investment Corp (PIC) to be best-placed to run investments for the new national security fund. But the PIC already manages R350bn...

Savings nest.
January 30, 2009... Byline: Carol Paton THE GREAT PENSION FUND REFORM Savings nest Fifty years after the original Pension Funds Act, government wants a radical overhaul a compulsory retirement scheme worth up to 60% of GDP. What will this mean for...

Taking care of everyone.
January 30, 2009... Byline: Carol Paton NATIONAL HEALTH INSURANCE Taking care of everyone The idea of a National Health Insurance (NHI) scheme has been kicked around in policy circles for years. But now it's becoming a reality: the ANC has included it in...

Not quite so providential.
January 30, 2009... Not quite so providential The provident fund is a legacy of the colonial period in Africa and South Asia. Civil servants usually enjoyed a monthly pension cheque, but the masses would be given a lump sum on retirement, accumulated through a...

Did You Hear competition.
January 30, 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 prizes. Send entries to: fmdidu@fm.co.za * BDFM...

Retail Sales.
January 30, 2009... Byline: Razina Munshi Retail sales dipped by 4% y/y in November, pushing sales down by 2,4% for the year to November. This is compared with an increase of 6% during the same period in 2007. The last quarter of 2008 will record weak sales...

Strong, but still hurting.
January 30, 2009... Byline: Rob Rose BANKING Strong, but still hurting Listening to Citi's new boss for SA, Naveed Riaz, discussing how his bank is fundamentally strong must be a lot like hearing a Roman commander reassuring the troops as the Ottoman Turks...

Unscrambling the message.
January 30, 2009... Byline: Carol Paton ELECTIONS Unscrambling the message Not much that is new in theory that's the manifesto of the Congress of the People (Cope), launched last week. Besides Cope's position on the electoral system that public...

Sickening disparities.
January 30, 2009... Byline: Shoks Mzolo MEDICINE PRICING Sickening disparities Health minister averts a showdown by raising mark-up cap on drugs WHAT IT MEANS Dispensing doctors were losing out. Pharmacists gained due to legal vacuum. Change is always...

Mpumalanga out of step.
January 30, 2009... Byline: Razina Munshi MAPUTO DEVELOPMENT CORRIDOR Mpumalanga out of step Ten years after the Maputo development corridor was first mooted, Mpumalanga is beginning the second phase of the project to drive investment. Work will begin in...

Planning for changed times.
January 30, 2009... Byline: Claire Bisseker BUDGET 2009/2010 Planning for changed times The challenge is to balance falling revenue and rising expenditure without allowing the fiscal deficit to balloon WHAT IT MEANS Revenue will be down and spending up....

Under starter's orders.
January 30, 2009... Byline: David Furlonger RALLY TO READ Under starter's orders It can cost more than R120000 to send your child to one of SA's top private schools for one year. Even parents who opt for state schools can spend about R40000 on tuition and...

An adequate device.
January 30, 2009... Byline: Larry Claasen GIMME An adequate device At first glance I was not that impressed with HP's Compaq 6735s Notebook. At about 2,7kg, it is not an excessively big device, but it goes against the current trend of making laptops slimmer...

Jolly disappointed, again.
January 30, 2009... Byline: Matthew Hill GIANT GEMS Jolly disappointed, again Giant gemstones seem to follow Brett Jolly around. Problem is, they are about as real as Bafana Bafana's chances of winning the soccer World Cup next year. Readers might recall...

When the roads and railways go.
January 30, 2009... Byline: Shannon Sherry QUESTIONS AND ANSWERS When the roads and railways go Amid reports that food security in SA could be in danger, speaks to Chamber of Milling executive director Jannie de Villiers about transport problems, wheat...

SA jobs in peril.
January 30, 2009... Byline: Matebello Motloung ADVERTISING SA jobs in peril Advertising agencies in SA are expecting to retrench staff this year because of the global economic slowdown. Internationally, ad agencies particularly those handling automobile...

A varied selection.
January 30, 2009... Byline: Thebe Mabanga DA PARTY LIST A varied selection The Democratic Alliance's provisional list of parliamentary candidates represents a number of small coups in key sectors of the community, especially in the Western Cape. The party's...

Knives out for Letlape.
January 30, 2009... Byline: Shoks Mzolo SA MEDICAL ASSOCIATION Knives out for Letlape WHAT IT MEANS Sama board unhappy with chairman's style. Some oppose his progressive stance. Out of respect for my colleagues, procedure and Dr Letlape, we can't...

Investment of the week.
January 30, 2009... Byline: Stephen Cranston Investment of the week Who it's for: Investors looking for a low-cost entry (R500/month) into the Orbis Global Equity Fund as it's a feeder fund with no other assets. Investors looking to gain exposure to markets...

When small is a hit.
January 30, 2009... Byline: David Williams RUGBY When small is a hit When the Beatles were formed in the early 1960s, Wits University was one of the stronger clubs in the Transvaal Pirates Grand Challenge. Why this connection between rugby and pop...

A splendid pageant.
January 30, 2009... Byline: Sean O'Toole ART A splendid pageant India is one of the hot properties of the contemporary art scene, writes Sean O'Toole The Johannesburg Art Gallery was merely a teething biscuit for him. After serving his apprenticeship in SA,...

MUST SEE: PIETER HUGO.
January 30, 2009... MUST SEE: PIETER HUGO WHERE At Michael Stevenson, 160 Sir Lowry Road, Woodstock, Cape Town, until February 21 Tel: (021) 462-1500 Johannesburg audiences will have seen an abbreviated version of Hugo's fantasy images of Nigerian actors...

The war for history.
January 30, 2009... Byline: Richard Steyn BOOKS The war for history ON THE BORDER The White South African Military Experience 1965-1990 By David Williams. 151 pages. Tafelberg. R150 This will evoke mixed feelings among the more than 600000 civilian...

The silence of the suburbs.
January 30, 2009... Byline: Peter Wilhelm CINEMA The silence of the suburbs The lead players turn in authentic and moving performances in this tale of suburban angst Revolutionary Road Directed by Sam Mendes Lead roles: Kate Winslet, Leonardo DiCaprio,...

Our national joke.
January 30, 2009... Byline: Justice Malala FOOD FOR THOUGHT Our national joke JUSTICE MALALA ***1/2 La Cabane des Praz 23 Route du Golf, Chamonix, Mont Blanc, France +33 450 53 23 27 ***** Obama! **** Excellent *** Good ** Poor * Malema! The young man...

A grande entrance.
January 30, 2009... Byline: David Furlonger MOTORING A grande entrance WHAT THEY COST Grande Punto: R118000-R191900. Scudo: R363100 Do South Africans care about the green credentials of the car they drive? Some, maybe, but I suspect most couldn't give a fig...

Up for the count.
January 30, 2009... Byline: Shoks Mzolo BREAKFAST WITH THE FM Up for the count with new Telkom chief financial officer Peter Nelson at JB Rivers in Hyde Park, Sandton HOW HE CHILLS Enjoys travelling, wildlife, the beach and playing golf with his sons. Reads...

Colossi of chenin.
January 30, 2009... Byline: Neil Pendock WINE Colossi of chenin The Surepure Chenin Challenge awards lunch at Catharina's on Steenberg was a big, boisterous, bibulous indulgence from the mythical land of Brobdignag. Sponsor Guy Kebble, his PR consultant...

Birds home to roost.
January 30, 2009... Byline: Rob Rose CRISIS WATCH Birds home to roost Due to jobs being shed in the UK as rapidly as scruples at an office party, the sappy Homecoming Revolution will soon be thinking it's Christmas all over again. The real prospect...

Diamonds & Dogs.
January 30, 2009... Byline: Jamie Carr Diamonds & Dogs Diamond: Woolworths Woolworths was the largest department store chain in the world on its 100th anniversary in 1979. Thirty years on, its core US business has morphed into takkie retailer Foot Locker,...

In limbo.
January 30, 2009... Byline: Matebello Motloung ELEMENT ONE In limbo With two months to go before a JSE deadline to comply with listings requirements, all signs are that Element One will delist. The shell company, which emerged in March last year after media...

Where did the cash go?
January 30, 2009... Byline: Larry Claasen ELLIES Where did the cash go? Ellies has managed to push up profit and revenue by healthy margins, but its bank overdraft has ballooned to R65m from R1,1m for the half-year to end October. The growing overdraft is...

A vulnerable shield.
January 30, 2009... Byline: Andrew McNulty GOLD A vulnerable shield The gold price and gold miners' shares ended last year at a sprint. A surge in these prices in the closing weeks of the year helped buttress the metal's reputation as a store of value and a...

Plans and postponements.
January 30, 2009... Byline: Matthew Hill INVESTEC Plans and postponements Investec is building up significant stakes in JCI and Randgold & Exploration. Is it doing so for strategic purposes? WHAT IT MEANS Investec is soaking up R& E and JCI shares....

Time to sober up.
January 30, 2009... Byline: Larry Claasen JSE Time to sober up It was a staggering rise followed by an epic collapse. The JSE's all share index (Alsi) has fallen below the magic number of 20000 points and looks set to remain around this number for some...

Tale of two economies.
January 30, 2009... Byline: Sasha Planting RETAIL SALES Tale of two economies One could be forgiven for wondering if there were two different retail sectors operating in SA right now. Retail figures released by Stats SA last week painted a bleak picture of...

Bumbling along.
January 30, 2009... Byline: Rob Rose SUPER GROUP Bumbling along Despite looking increasingly frail, Super Group is still paying out big bonuses WHAT IT MEANS Bosses get windfall while stock stutters. Debts now at highest-ever levels. Watching management...

Educational mystery ride.
January 30, 2009... Byline: Robert Gentle Educational mystery ride Maybe I'm just stupid, but after reading yet another article on outcomes-based education (OBE) (Features January 23), I still don't understand what's wrong with schooling. When my generation...

Spiritual and moral morass.
January 30, 2009... Byline: Rasimeni Manjezi Spiritual and moral morass A literal reading of religious texts, conflating a spiritual and mythical entity with a temporal entity, and the use of violence to achieve one's objectives are all essential in the...

The secret garden.
January 30, 2009... Byline: Dynette du Preez THE PLACE TO BE OR NOT TO BE The secret garden SASOL SENSORY TRAIL Where: Delta Park, Victory Park, Johannesburg Delta Park is known for its bird sanctuary and the wide spaces it offers cyclists and people who...

Quote of the week. Those are not just numbers but more working men and women whose families have been disrupted and whose dreams have been put on hold BARACK OBAMA US PRESIDENT.
January 30, 2009... QUOTE OF THE WEEK Those are not just numbers but more working men and women whose families have been disrupted and whose dreams have been put on hold BARACK OBAMA US PRESIDENT citing the lay-off this week of 72500 employees by various major...

Sorry showcase.
January 30, 2009... Byline: Thebe Mabanga ROBBEN ISLAND Sorry showcase The Robben Island Museum continued to lose money last year as it ignored recommendations by the auditor-general and parliament's standing committee on public accounts. The tourist magnet...

101.
January 30, 2009... Byline: Thebe Mabanga Weren't the Scorpions, which are still in the news, disbanded last year? Not quite. Parliament did pass the National Prosecutions Authority Amendment Bill and the SA Police Service Amendment Bill disbanding the unit...

Working-class hero.
January 30, 2009... Byline: Thebe Mabanga PROFILE Working-class hero Tony Ehrenreich is a working-class hero caught up in a storm he admits is partly of his own making. The influential Western Cape regional secretary of the Congress of SA Trade Unions...

Yesterday's football fever.
January 30, 2009... Byline: Thebe Mabanga WHERE ARE THEY NOW? Yesterday's football fever If there is one person who could be trusted with exciting the SA public about this week's celebrations marking 500 days (last Monday) to the 2010 Soccer World Cup, it...

Winners & losers.
January 30, 2009... WINNERS & LOSERS WINNER: John Varley - Barclays' new CE bucked the trend by stating this week that not only would the British bank not go under, but its profits would exceed an estimated GBP5,3bn when its financial results are announced next...

CORRECTION.
January 30, 2009... CORRECTION In the FM of January 23 (Features) a quote was incorrectly attributed to Andrew Marshall, who is due to start as CEO of Nampak in March. The comment was made by Nampak Wiegand Glass MD Stoney Steenkamp.

On edge.
January 30, 2009... Byline: Yvonne Fontyn On edge With an increase in stress levels, more people may be susceptible to sleep deprivation WHAT IT MEANS Chronic sleep deprivation can lead to other problems. It's essential to identify the triggers. Many...

Volatility continues.
January 30, 2009... Byline: Razina Munshi BOND YIELDS Volatility continues The six-month bull run in the bond market may be over. Despite the six consecutive interest rate cuts expected this year, analysts believe bond market yields will not drop more than...

Did You Hear.
January 30, 2009... A florist goes to a barbershop for a haircut. After the barber is finished, the florist takes out his wallet and asks how much the haircut costs. The barber replies: I cannot accept money from you. I'm doing community service this week. The...

Absence of faith.
January 30, 2009... Byline: BARNEY MTHOMBOTHI Absence of faith We're being invited to take solace from sonorous assurances that in this blizzard of bad news, we may, by some stroke of good fortune, be able to avoid a recession. Let's not quibble with words...

Good times are so last year.
January 30, 2009... Byline: Matebello Motloung FASHION Good times are so last year After years of soaring sales and packed fashion shows, the economic slump is wiping the glitz off catwalks across the globe. From Paris to Milan, New York to Johannesburg,...

Another week. At home. Abroad. Sport.
January 30, 2009... Another Week AT HOME Finance minister Trevor Manuel says SA can avoid a recession this year, and that the economy is likely to grow despite unstable world markets. The Reserve Bank's key economic growth indicator fell a record 13,9% in...

Arrogant banks, don't ask.
January 30, 2009... Byline: Tony Ball Arrogant banks, don't ask The response of the banks to the commission of inquiry on bank charges was predictable (Money & Investing January 16). The less we know about their excessive fees the better, but we are...

RMB/BER business confidence.
January 30, 2009... Byline: Razina Munshi Business confidence remained steady at 33 during the final quarter of the year, compared with 34 previously. This is according to the RMB/BER business confidence index released this week. The last time the index was...

US ICE cotton futures.
January 30, 2009... Last week, cotton futures on the US ICE futures exchange jumped to the highest level in three months on signs of rising demand. The US department of agriculture indicated US export sales of cotton almost quadrupled in the week ended January...

Still keen on green.
January 30, 2009... Byline: Shannon Sherry CLIMATE CHANGE Still keen on green Consumers' concern over climate change remains strong despite the distractions of a global economic crisis, a new survey by consulting group Accenture has found. Accenture...

FOOD FOR THOUGHT. Alpine refuge.
January 23, 2009... Byline: Justice Malala FOOD FOR THOUGHT Alpine refuge JUSTICE MALALA ****Rifugio Maison Vieille di Calosi Giacomo Col Checrouit, 11013 Courmayeur, Italy. Tel: +39 (337) 230979 *****Obama! ****Excellent ***Good **Zuma *Berlusconi Fat...

Still mindless on Gaza.
January 16, 2009... Still mindless on Gaza The Schleswig-Holstein question is so complicated, said the 19th century British statesman Lord Palmerston, that only three men in Europe have ever understood it. One was Prince Albert, who is dead. The second was a...

Deep in the mulch of folly.
January 16, 2009... Byline: Peter Wilhelm CINEMA Deep in the mulch of folly The thousands of pieces of puzzle actually come together yet theysignify nothing Burn After Reading Written and directed by Joel & Ethan Coen Lead roles: George Clooney, Frances...

Wasteful expenditure.
January 16, 2009... Byline: Justice Malala FOOD FOR THOUGHT Wasteful expenditure JUSTICE MALALA **1/2 Villa del Palazzo Palace of the Lost City, Sun City, North West, Tel: (014) 557-4301 ***** Obama! **** Excellent *** Good ** Credit crunch * No good...

Banking on silence.
January 16, 2009... Byline: Rob Rose BANK FEES Banking on silence The competition commission has allowed banks to spin the report of its inquiry into charges WHAT IT MEANS Banks censored report for PR reasons. Wikileaks will lay charges if the source is...

Obligations of an occupier.
January 16, 2009... Byline: Anver Suliman Obligations of an occupier Let us be objective. The root problem in Palestine is its occupation by Israel. Hamas resists this occupation. Furthermore Hamas refuses to recognise Israel as a Zionist state exclusively...

Gold.
January 16, 2009... The price of gold traded sideways last week, falling more than 2%, as it took direction from fluctuations in the dollar and on renewed fears that the recession in the global economy may deepen in 2009. Gold fell to a two-week low last...

Platinum spot price.
January 16, 2009... Platinum has had an impressive start to the new year with spot prices rising to a three-month high while the metal for delivery in April rose more than 6% last week. The rally came amid specu-lation that demand from China may rebound this...

Brent crude.
January 16, 2009... Crude oil rallied to a five-week high at the start of last week only to erase most of its gains later in the week. Brent crude oil was pushed over the US$50/bbl level last Tuesday on concern that tensions in the Middle East might result in...

Still committed to charter.
January 16, 2009... Byline: Rob Rose Still committed to charter When asked if the reluctance of banks to lend will endanger the banks' own financial sector charter targets, Absa CEO Steve Booysen doesn't mince his words. Of course it will. But you've got to...

The big squeeze.
January 16, 2009... Byline: Rob Rose THE ECONOMY: LENDING PRACTICES The big squeeze As the global recession spreads, banks are running scared and have turned off the taps on funding. The FM looks at how nervous SA bankers are constricting wealth creation...

The big bust.
January 16, 2009... Byline: Ian Fife PROPERTY MARKET The big bust Lenders make sure that it will be the worst real estate market in memory WHAT IT MEANS An 85% bond if you're lucky. More likely 70%. That eliminates 81% of boom-time buyers. If anything...

Bargains, more to come.
January 16, 2009... Byline: Ian Fife PROPERTY INVESTMENT Bargains, more to come If cash is king, he has a growing army of subjects prowling the property market looking to extend his empire. There are already bargains aplenty in the house market, but no...

Demand is set to rise.
January 16, 2009... Byline: Ian Fife RENTAL MARKET Demand is set to rise Tens of thousands of households in SA can no longer buy homes because they don't have savings. That means the rental market is about to come of age. Banks have abandoned...

Did you hear.
January 16, 2009... The room was full of pregnant women with their partners. The class was in full swing. The instructor was teaching the women how to breathe properly, and telling the men how to provide the necessary support. She said: Ladies, remember,...

US ICE coffee futures.
January 16, 2009... Coffee futures on the US ICE Futures Exchange last week rose to their highest level in over three months despite a sharp fall in prices at the start of the week. Coffee futures tumbled on Monday after the strengthening dollar made...

Consumers feel the bite.
January 16, 2009... Byline: Matthew Hill CHOCOLATE PRICES Consumers feel the bite WHAT IT MEANS Price has risen by 30%-40% over two years Sales not expected to decline Sweet-toothed consumers have been left with a bitter taste in their mouths as the price...

Comings & Goings. Dick Evans. John Attah Mills. Roland Burris. Nosipho Molope. Joan Joffe.
January 16, 2009... COMINGS & GOINGS Dick Evans: Rio Tinto Alcan's CE is to retire and step down from the boards of Rio Tinto in April. Jacynthe C'te, current president and CE of Primary Metal, Rio Tinto Alcan, will take over from Evans next month. John Attah...