Financial Mail articles from January 2011

Financial Mail archives from January 2011

Starting to pump.
January 28, 2011... Byline: Nazmeera Moola Starting to pump The central theory in monetary economics, I remember learning a long time ago, was that central banks' printing money faster than real GDP growth would result in inflation. The idea was that the supply...

YOU COULD WIN - FM DID YOU HEAR?
January 28, 2011... 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. Send entries to:fmdidu@fm.co.za * BDFM employees are not...

By the horns.
January 28, 2011... Byline: DUNCAN McLEOD By the horns News that SA is getting another mobile virtual network operator, the second after Virgin Mobile, might seem like a bit of a yawn at first. But given Red Bull's powerful marketing and youthful brand image, it...

LAND BANK. Growing confidence.
January 28, 2011... Byline: Shannon Sherry LAND BANK Growing confidence Phakamani Hadebe got the shock of his life when, on July 21 2008, he took up his position as CEO of the ailing Land Bank. He had been appointed at the behest of then finance minister Trevor...

ROAD CONSTRUCTION. Out of the hole.
January 28, 2011... Byline: Razina Munshi ROAD CONSTRUCTION Out of the hole Claims worth a staggering R68,5m for pothole damage in just two years were finally enough for the Free State provincial government. It had to act. And turning conventional models...

Transfer pricing in numbers.
January 28, 2011... Byline: Ruan Jooste Transfer pricing in numbers 30% of multinational companies globally identify transfer pricing (TP) as an important tax challenge facing their group. TP refers to over- or underpricing of goods and services between...

WHERE ARE THEY NOW? Loan ranger.
January 28, 2011... Byline: Maarten Mittner WHERE ARE THEY NOW? Loan ranger As the microlending sector shows renewed hope for a repeat of the heady growth of a few years ago, Bert Griesel remembers the difficult days in 2001 when he was the Absa executive...

HUMAN RIGHTS. Diamonds before people.
January 28, 2011... Byline: Charlotte Mathews HUMAN RIGHTS Diamonds before people Strangely, Gem Diamonds was given the go-ahead for its controversial Gope Diamond Mine in the Central Kalahari Game Reserve last week even while the Bushmen remained excluded for...

FOREIGN INVESTORS. Blue sky and status.
January 28, 2011... Byline: Charlotte Mathews FOREIGN INVESTORS Blue sky and status While most attention has focused on China's scramble for resources in Africa, Russia and other former Soviet states have less conspicuously grown their minerals investments...

FOREIGN BANKS. Muscling in.
January 28, 2011... Byline: Maarten Mittner FOREIGN BANKS Muscling in Local banks have been caught napping in the lending arena as foreign banks with offices in SA grew their advances by an impressive 15,5% in November, lifting the year's growth to a strong...

ENTREPRENEUR. Give that man a Raiz.
January 28, 2011... Byline: Lise Pretorius ENTREPRENEUR Give that man a Raiz Allon Raiz was offered backing for his own entrepreneurial endeavour by a prominent businessman impressed by a promotion he organised. His first solo attempt New York Sausage company...

GIMME. Beauty and Dogma.
January 28, 2011... Byline: Max Gerbhardt GIMME Beauty and Dogma The first question everyone wants to know after oohing and aahing about the sheer beauty of the Pinarello Dogma 60.1 bicycle is: does it make you go faster? You certainly feel faster as the bike...

BRIC. SA joins the club.
January 28, 2011... Byline: Sharda Naidoo BRIC SA joins the club WHAT IT MEANS: Indian minister says it'll be Bricsa in April. Unclear what SA has to offer grouping SA will be the only new member of Bric (Brazil, Russia, India, China). Once Bricsa emerges at...

QUOTE OF THE WEEK - MILDRED OLIPHANT, Labour minister.(Quotation)
January 28, 2011... QUOTE OF THE WEEK Some may want to argue that our priority should be decent work .. . Decent employment can only be successful when all stakeholders keep in mind the context of the SA and global economies and social realities, such as poverty,...

Interview - Qwan Ho, Bongani Mtlhavani, Rivashnee Singh: Co-op for small business owners . REAL PEOPLE DOING UNREAL THINGS. Strength in numbers.
January 28, 2011... Byline: Yvonne Fontyn REAL PEOPLE DOING UNREAL THINGS. Strength in numbers Qwan Ho, Bongani Mtlhavani, Rivashnee Singh: Co-op for small business owners THE UNREALITY CHECK: Started a co-operative for entrepreneurs and SMEs; Have expertise...

ROAD DETERIORATION. There's a hole in my budget.
January 28, 2011... Byline: Stafford Thomas ROAD DETERIORATION There's a hole in my budget If your car has just been on the receiving end of one of those all-too common features of SA's motoring scene, the pothole, you're not alone. Claims for damage resulting...

SMALL BUSINESS. It's tough out there.
January 28, 2011... Byline: Razina Munshi SMALL BUSINESS It's tough out there The increase in the cost of running a small business has by far outstripped its growth in profits, according to a new survey of the sector by accounting software firm Softline Pastel....

THE GRAND DESIGN. BOOK OF THE WEEK. Multiverse babble.
January 28, 2011... Byline: Peter Wilhelm BOOK OF THE WEEK Multiverse babble THE GRAND DESIGN: New Answers to the Ultimate Questions of Life By Stephen Hawking & Leonard Mlodinow 199 pages Bantam Press R235 The greatest physicists of the past century or so...

CINEMA. Country of the blues.
January 28, 2011... Byline: Peter Wilhelm CINEMA Country of the blues An intense study of drug trade-damaged family relationships in redneck territory Winter's Bone Directed by Debra Granik Lead roles: Jennifer Lawrence John Hawkes Isaiah Stone Ashlee Thompson...

WINELANDS RETREATS. Tongues let loose.
January 28, 2011... Byline: Hilary Prendini Toffoli WINELANDS RETREATS. Tongues let loose spends a night under the winelands' Tower of Babel MORE INFO: Babylonstoren is on the Klapmuts/Simondium Road in the Drakenstein Valley Tel: (021) 863-3852 Go to:...

SIMPLE STYLE AT BABEL'S TABLE.
January 28, 2011... Byline: Hilary Prendini Toffoli SIMPLE STYLE AT BABEL'S TABLE Nothing could convey the spirit of Babel restaurant more succinctly than the flamboyant beetroot plant in the cut glass vase on our table. This all-white, glass-enclosed eatery was...

HEALTH. Sensible slimming.
January 28, 2011... Byline: Yvonne Fontyn HEALTH Sensible slimming Keen to kick-start your 2011 weight loss? Jenny Meyer, a registered dietician with Anne Till & Associates in Johannesburg, provides these six tips: Eat regular meals, starting with breakfast....

Silent K for your knees.
January 28, 2011... Silent K for your knees If you're feeling a bit creaky in the knees, it may be because you aren't eating your veggies. Life Extension Daily News (lef.org) reports that the Multi-Center Osteoarthritis Study in the US revealed that vitamin K plays...

BUILDING MATERIAL STOCKS. Down in the dumps.
January 28, 2011... Byline: Razina Munshi BUILDING MATERIAL STOCKS Down in the dumps The slump in the construction sector is crippling the profits of building material suppliers. With little indication of when demand will recover, companies are bracing for yet...

CORRECTION.(Correction notice)
January 28, 2011... CORRECTION In the January 21 edition the FM referred to Mustek as an AltX-listed company. It is in fact listed on the main board. The FM regrets the error.

DIRECTORS' DEALINGS. Things to come?
January 28, 2011... Byline: Maarten Mittner DIRECTORS' DEALINGS Things to come? When a share price reacts strongly to share transactions by its directors, one can obtain valuable information on possible future moves. Capitec and Naspers N shares were both...

Diamond - Kumba. Dog - Micromega.
January 28, 2011... Byline: Jamie Carr DIAMONDS & DOGS 's picks of the week Diamond Kumba The back end of nowhere in the Northern Cape may not be the most obvious place to go looking for one of the world's most efficient money-producing machines, but that is...

Crisis watch.
January 28, 2011... Byline: Andrew McNulty Crisis watch The global growth outlook is improving, at least for this year. That's the positive message in the IMF's latest update of its World Economic Outlook. It has raised its forecast for growth in world output...

RESOURCES. Pedal to the metal.
January 28, 2011... Byline: Charlotte Mathews RESOURCES Pedal to the metal Minerals like platinum, copper, coal and uranium are performing more or less in line with forecasts of industrial growth. But gold, which is driven by more speculative factors, tends to...

FUND MANAGEMENT. The herd begins to scatter.
January 28, 2011... Byline: Stephen Cranston FUND MANAGEMENT The herd begins to scatter Fund managers scared of local equities have paid the price WHAT IT MEANS: Foreign equities better value than local shares; Consumer shares push Stanlib to top of the tables...

TECHNICAL ANALYSIS. Wait for correction.
January 28, 2011... Byline: Garth Mackenzie TECHNICAL ANALYSIS Wait for correction The sharp rally we've seen on the JSE all share index recently has taken the market to the record level it reached in May 2008. This level is likely to provide a certain amount of...

MEDICINE PRICES. Good news for ill people.
January 28, 2011... Byline: Jacqui Pile MEDICINE PRICES Good news for ill people SA consumers could pay between 20% and 30% less for medicines after the department of health introduces regulations to prevent drug companies from charging more for their drugs than...

SOUTHERN SUN. Setting an example.
January 28, 2011... Byline: Julie Bain SOUTHERN SUN Setting an example SA has become a popular global destination. Each month, the country attracts about 860 000 visitors, of which about 210 000 arrive from overseas. The rising number of tourists is positive for...

NETCARE. Revised care plan.
January 28, 2011... Byline: Julie Bain NETCARE Revised care plan Hospitals, given the fact that they are plugged in 24 hours a day, 365 days a year, are arguably not withstanding the energy-intensive industries such as mining and steel making among the biggest...

PICK N PAY. Lighting the way.
January 28, 2011... Byline: Julie Bain PICK N PAY Lighting the way Pick n Pay is one of SA's biggest retailers and as a result is a major consumer of electricity. In response to the country's energy shortfall, the escalating price of power and the global shift...

ESKOM MEGAWATT PARK. Leading by example.
January 28, 2011... Byline: Julie Bain ESKOM MEGAWATT PARK Leading by example Putting theory into practice, Eskom energy saving initiatives could achieve a reduction in electricity demand of up to 18% at its head office. With a nationwide focus on improving and...

GOLD FIELDS. In support of operations.
January 28, 2011... Byline: Julie Bain GOLD FIELDS In support of operations Mines are reliant on electrically powered fans and pumps for their effective operation, all of which use a great deal of power. This is why Eskom's Integrated Demand Management (IDM)...

TOWN LODGE. Behavioural change.
January 28, 2011... Byline: Julie Bain TOWN LODGE Behavioural change Various businesses have worked independently to find ways to reduce the demand they put on the national grid for power. At the Sandton-based Town Lodge hotel, employee support and...

FM DID YOU HEAR?
January 28, 2011... Water, water, everywhere, but don't forget my drink! Some people say there is no difference between complete and finished. We beg to disagree; when you marry the right one you are complete, and when you marry the wrong one, you are finished. And...

REINET/BAT. Thank you for smoking.
January 28, 2011... Byline: Andrew McNulty REINET/BAT Thank you for smoking Why hold Reinet when you can own a direct stake in British American Tobacco (BAT)? That seems a relevant question for potential investors, considering that the tobacco group is still...

Capital inflows key to inflation.
January 28, 2011... Capital inflows key to inflation Inflation is again an increasing concern in many countries, particularly the fast-growing emerging economies in Asia. China has announced a package of measures to moderate growth and curb price increases. Since...

Degrees of desperation.
January 28, 2011... Degrees of desperation The moratorium on prosecutions of clothing factories that were noncompliant with minimum wages has come to an end. The consequent mandatory higher wage structure, which was no doubt set with good intentions, will cause a...

Of trust and faith.
January 28, 2011... Byline: PATRICK BRACHER Of trust and faith There are many people who administer property on behalf of others and the law imposes on them a fiduciary duty to act with the utmost good faith and to exercise proper care and diligence in...

What is extradition? 101.
January 28, 2011... Byline: Advocate Anton Katz SC What is extradition? It is the surrender by one state of a person sought for prosecution or the serving of a sentence by the requesting state. How does it work? The process is governed by the rules of public...

Open your wallet.
January 28, 2011... Byline: Tony Ball Open your wallet On one hand government trumpets the need for jobs yet it continues to place obstacle after obstacle in the path of a would-be entrepreneur. Now the spotlight is on SMEs with a turnover up to R35m/year...

BOOKS. On a wing and a prayer.
January 28, 2011... Byline: Richard Steyn BOOKS On a wing and a prayer BIRTH: The Conspiracy to Stop the 1994 Election By Peter Harris 288 pages Pantheon R200 Truth is sometimes stranger than fiction, but often far more exciting. This behind-the-scenes account...

World Cup squad selections.
January 28, 2011... Byline: Phillip Ronbeck World Cup squad selections Hats off to Andrew Hudson and his fellow selectors for choosing a well balanced 15-man squad to represent SA in the cricket World Cup. The long overdue inclusion of Faf du Plessis in the...

HOSPITAL FEES. Do or die.
January 28, 2011... Byline: Claire Bisseker HOSPITAL FEES Do or die Making private health care more affordable is a seemingly unattainable goal. There has never been a legislated attempt to curtail price increases across the system as a whole until now WHAT IT...

HOSPITALS. The business of beds.
January 28, 2011... Byline: Jacqui Pile HOSPITALS The business of beds Hospital groups would have to motivate in a public forum ALEX VAN DEN HEEVER The perception that private hospitals are making super profits has placed them at the centre of government's...

MEDICAL AIDS. Maxing out the minimum.
January 28, 2011... Byline: Xolile Bhengu MEDICAL AIDS Maxing out the minimum The continuing battle between medical schemes and the industry regulator over the affordability of a prescribed set of minimum benefits will finally go to the high court in April. ...

ECONOMIC INDICATORS.
January 28, 2011... -14,9 percent y/y Liquidations in December declined by 14,9% y/y, from a 29,4% drop previously. There were 325 liquidations during the month, 291 of them voluntary. The number of individuals and partnerships declared insolvent fell by 28,7%. ...

Leading indicator.
January 28, 2011... Byline: Razina Munshi Leading indicator The Reserve Bank's leading indicator of business activity remained virtually unchanged in November 2010, largely in line with expectations. The seasonally adjusted indicator provides a guideline for...

ADVERTISING. Onslaught of challenges.
January 28, 2011... Byline: Zweli Mokgata ADVERTISING Onslaught of challenges Traditional advertising will be fighting to stay relevant this year as technology and sceptical advertisers put pressure on the industry. Advertising executives are predicting...

MICROBREWING. Going for gold.
January 28, 2011... Byline: David Furlonger MICROBREWING Going for gold There was a shop assistant who learnt her brewing skills over the Internet. Then there was the businessman who believed a couple of courses in Pretoria made him an expert. A series of...

RALLY TO READ. A change of fortune.
January 28, 2011... Byline: David Furlonger RALLY TO READ A change of fortune In the Eastern Cape last week, the provincial education department admitted it was not ready for the start of the new school year. On the day that children began to troop into...

DOWNSTREAM OIL. Too many cooks.
January 28, 2011... Byline: Lise Pretorius DOWNSTREAM OIL Too many cooks SA's oil industry is preparing for major investments in view of the pending Clean Fuels 2 requirements, a gradual increase in demand, and minimising reliance on imports of refined products....

EDUCATION. Good money, bad system.
January 28, 2011... Byline: Carol Paton EDUCATION. Good money, bad system Directing more funding for student bursaries may be a short-term panacea for some but will not solve the problems in higher education WHAT IT MEANS: R6bn more for bursaries; But no...

CONSUMER PROTECTION GM labels get sticky.
January 28, 2011... Byline: Shannon Sherry CONSUMER PROTECTION GM labels get sticky The trade & industry department's draft regulations on the labelling of genetically modified (GM) food in terms of the Consumer Protection Act have come under fire. Anti-GM...

SUMMER SUNSET CONCERTS. THE PLACE TO BE OR NOT TO BE. In tune with nature.
January 28, 2011... Byline: Larry Claasen THE PLACE TO BE OR NOT TO BE In tune with nature SUMMER SUNSET CONCERTS Where:: Kirstenbosch National Botanical Garden Mood: Magical There are few better ways to start an evening in Cape Town than with a picnic and live...

Interview - Selwyn Jehoma - social development deputy director-general . QUESTIONS & ANSWERS. The fallback system.
January 28, 2011... Byline: Razina Munshi QUESTIONS & ANSWERS The fallback system After the appeal for public donations to help flood victims, speaks to social development deputy director-general Selwyn Jehoma about the response What does government's...

INTERNET SECURITY. Who's the one swiping?
January 28, 2011... Byline: Stafford Thomas INTERNET SECURITY Who's the one swiping? Is your personal data and that of your company 100% secure? If you think it is, there is a better than even chance that you're wrong. SA was a leader in data security 20...

MICROMEGA. Back in the driver's seat.
January 28, 2011... Byline: Larry Claasen MICROMEGA Back in the driver's seat Dave King's return to Micromega is a homecoming. The financial wheeler-dealer, who has had running battles with the taxman and the SA Reserve Bank for the better part of decade,...

THE UGLY DUCKLING - LEWIS GROUP.
January 28, 2011... Byline: Larry Claasen THE UGLY DUCKLING LEWIS GROUP 1. Cash positive - 2. Revenue up + 3. Tradability + 4. Dividend paid + 5. Profitable + It looks like the furniture retailer is set to put out respectable numbers for the festive season. It...

POWDERED POWER.
January 28, 2011... POWDERED POWER Body builders and athletes have long known the benefits of whey protein for muscle-building and strength, and to speed up recovery. A by-product of cheese-making, whey available in powder form from health stores is a rich source...

FOOD FOR THOUGHT. Pata Pata of tardy feet.
January 28, 2011... Byline: Justice Malala FOOD FOR THOUGHT Pata Pata of tardy feet JUSTICE MALALA **Pata Pata Main Street Life, 286 Fox Street, Johannesburg *****Madiba! ****Excellent ***Good **Try, please *Terrible Suddenly, the waitress was back. Sorry, it's...

Interview - Warren Moolan, head of Absa Wealth International. 9 QUESTIONS FOR ...
January 28, 2011... Byline: Stafford Thomas Warren Moolan, head of Absa Wealth International What role does Barclays play in Absa's international investment and banking product offerings? In terms of the range of global investment and banking products, Barclays'...

CAPITAL AND LIQUIDITY REQUIREMENTS. Banks in for a tough time.
January 28, 2011... Byline: Maarten Mittner CAPITAL AND LIQUIDITY REQUIREMENTS Banks in for a tough time Local banks are awaiting the release of a discussion document next month in which national treasury is expected to provide guidance on the stringent Basel 3...

CLICKS. A buying opportunity.
January 28, 2011... Byline: Sasha Planting CLICKS A buying opportunity Clicks management remains cautiously optimistic about a recovery in consumer spending. Investment in long-term growth will continue, and R250m in capital expenditure has been committed for...

COCOA. Hot chocolate.
January 28, 2011... COCOA Hot chocolate Cocoa futures on the US ICE futures exchange jumped the most in 15 months at the start of this week after the president-elect of C'te d'Ivoire, the world's largest producer, banned exports for a month. The chocolate...

OIL. Strong demand.
January 28, 2011... OIL Strong demand The price of Brent crude has been trading around US$97/bbl as a weaker dollar and the improving economic outlook in the US (the world's largest oil-consuming nation) boosted demand for oil. China's oil demand is also set to...

ALTERNATIVE INVESTMENTS. Choose your risk.
January 28, 2011... Byline: Stafford Thomas ALTERNATIVE INVESTMENTS Choose your risk Of late there has been a notable swing from investing in single-stock futures (SSFs) to warrants. We now have more clients trading warrants than SSFs, says Standard Bank's head...

Investor's Notebook.
January 28, 2011... Byline: Stephen Cranston Investor's Notebook Jardine Matheson has come a long way from its days as an opium trader in the 1840s. It is now a substantial Hong Kong-based multinational, best known internationally as the owner of Mandarin...

TECHNOLOGY. Techies spread the Net.
January 28, 2011... Byline: Larry Claasen TECHNOLOGY Techies spread the Net The technology sector is always hyping up the next big thing. Whether it's a newfangled cellphone or a fancy Internet service, there is always something on the horizon that's going to...

The latest empowermentNowhere is the dysfunctionality of the.
January 28, 2011... Byline: Gavin Lewis State's job destruction role The latest empowerment moves suggested by Sandile Zungu, Aiming higher (Features January 21) fly in the face of government's stated priority: job creation. We have all been reassured by the...

MINING. Industrial savings.
January 28, 2011... Byline: Julie Bain MINING Industrial savings The industrial and mining sector accounts for about 60% of energy demand during national peak periods. And Eskom's Integrated Demand Management (IDM) division has identified air compressors as...

WOOLWORTHS. Environmentally friendly.
January 28, 2011... Byline: Julie Bain WOOLWORTHS Environmentally friendly In 2006, Woolworths embarked on what it called its Good Business Journey. This was a multifaceted plan centred on four key priorities: transformation acceleration, social development,...

On the right path.
January 28, 2011... Byline: Julie Bain On the right path Putting the right structures in place to meet SA's demands for electricity WHAT IT MEANS: Consolidation of demand. management Elimination of duplication Integrated Demand Management (IDM) is a new division...

Powered.
January 28, 2011... Byline: Julie Bain Powered Energy efficiency is vital if SA is going to be able to support its economic growth WHAT IT MEANS: By saving electricity, consumers can reduce costs and decrease their carbon footprint Over the past decade SA has...

BRIKOR. BUILDING MATERIALS & FIXTURES.
January 21, 2011... Byline: Larry Claasen BRIKOR BUILDING MATERIALS & FIXTURES Price: 10c 6m Aug T/O (Rm) EBT (Rm) EPS (c) DPS (c) Mkt cap: R64,1m 2010 147,6 -14,4 -1,7 PE: -1,37 2009 155,4 -3,3 0,1 Sector: -5,76 t s -5% n/a n/a This brick maker's numbers...

RACEC. HEAVY CONSTRUCTION.
January 21, 2011... Byline: Larry Claasen RACEC HEAVY CONSTRUCTION Price: 56c Yr Sept T/O (Rm) EBT (Rm) EPS (c) DPS (c) Mkt cap: R98m 2010 394,1 21,4 12,4 PE: 5,96 2009 344,6 -15,4 -12,6 Sector: -5,76 t s +14% n/a n/a There has been a solid turnaround at the...

Did you hear?
January 21, 2011... South Africans are always eager to complain about the hours local banks are open for business, but consider yourself lucky you don't have to deal with Swiss banks. Before travelling to Switzerland you might find out on a Swiss website that banks...

My crystal ball.
January 21, 2011... Byline: NAZMEERA MOOLA My crystal ball I had an e-mail exchange this week with someone who said he always keeps the year-ahead documents that investment banks put out. Come the end of the year, he looks back to see how many predictions were...

Sorting the Brics from the brac.
January 21, 2011... Sorting the Brics from the brac When investment bank Goldman Sachs coined the term Bric, an acronym referring to Brazil, Russia, India and China, back in 2003, it produced a research report titled Dreaming with Brics: the Path to 2050. The...

Playing the numbers game.
January 21, 2011... Playing the numbers game What's the difference between a school teacher and a sumo wrestler? is one of the questions posed by the authors of Freakonomics in their first book, which takes an entertaining look at how incentives work to distort...