Financial Mail articles from September 2008

Financial Mail archives from September 2008

What is a Black Swan?
September 19, 2008... Byline: Claire Bisseker What is a Black Swan? It's an exceptional, unpredictable event that causes a huge impact for example, 9/11, SA's successful political transition, the Internet. Who coined the term? Nassim Taleb, an applied...

ECONOMICS. Surviving the slowdown.
September 19, 2008... Byline: Yvonne Fonteyn ECONOMICS Surviving the slowdown SA Tourism (SAT) is at present researching the extent to which tourism affects other sectors of the economy and is endeavouring to determine the so-called spill-over or indirect...

FINANCIAL MANAGEMENT. The triple bottom line.
September 19, 2008... Byline: Yvonne Fonteyn FINANCIAL MANAGEMENT The triple bottom line Proper corporate governance is important at SA Tourism (SAT) because the public entity works with taxpayers' money, says chief financial officer Johan van der Walt. ...

MARKETING. Building SA's brand abroad.
September 19, 2008... Byline: Yvonne Fonteyn MARKETING Building SA's brand abroad As part of its global marketing strategy to grow awareness about SA and boost visitor numbers from key markets over the next two to three years, SA Tourism (SAT) has launched a...

OPERATIONS. Keeping focus.
September 19, 2008... Byline: Yvonne Fonteyn OPERATIONS Keeping focus Chief operations officer Didi Moyle led the team that developed the Tourism Growth Strategy in 2001. The success SA Tourism (SAT) has had over the past five years is because we made...

The other 3bn.
September 19, 2008... Byline: DUNCAN McLEOD The other 3bn A bold new satellite venture backed by Google and other investors has been created with the aim of bringing cheap Internet access to the developing world. It's welcome news for a bandwidth-starved...

ENTREPRENEUR. Thinking in the box.
September 19, 2008... Byline: Carol Paton ENTREPRENEUR Thinking in the box Cape Town doctor David Green's frustration with patients who failed to take their medication led him to invent the world's first intelligent pill box: it reminds people if they forget...

Back to the basics of risk.
September 19, 2008... Back to the basics of risk In extreme cases, mark-to-model degenerates into what I would call mark-to-myth WARREN BUFFETT In the old days, sighed a suburban Gauteng bank manager at the height of SA's housing loan boom in May 2007, the...

Another Week.
September 19, 2008... Another Week AT HOME FirstRand reports a 13% fall in headline earnings to R8,8bn for the year to end June, with retail banking bad debts at R4,7bn (R2,6bn). The rand briefly sinks to R8,35/US$, its lowest level in five years, claws back...

Targeting the traceables.
September 19, 2008... Byline: Tony Ball Targeting the traceables I note with concern the increasing trend for government organisations to dispense with normal printed documentation and blithely fob off any requests with the standard go online or to our...

Class coach or coach class?
September 19, 2008... Byline: Matthew Bull Class coach or coach class? Oh the joys of being the coach of Bafana. Ten times the salary of the Springbok rugby coach; you don't have to win against anyone, not even Swaziland; your team doesn't need to be...

Gold.
September 19, 2008... Last week the price of gold fluctuated considerably amid weakening oil prices and gyrations in the US dollar. The dollar rose to a one-year high against the euro last Thursday, making dollar-denominated commodities more expensive. The price...

COMINGS & GOINGS.
September 19, 2008... COMINGS & GOINGS David Petraeus. Credited with reducing violence in Iraq, the general in charge of 146000 US troops there hands over to Lt-Gen Raymond Odierno after 19 months. He'll now head a vast command from Kenya to Kazakhstan. ...

LME platinum price.
September 19, 2008... The price of platinum for immediate delivery (used in pollution-control devices for car and truck engines) fell to an 18-month low last week on concern that demand for cars in the US, Europe and China is slowing. Last week, China's...

Brent crude.
September 19, 2008... The price of crude fell more than 7% last week, extending its three-week decline, as weakening demand conditions and a strengthening dollar continued dragging prices lower. Brent crude oil fell below the US$100/barrel level last week for the...

OLD MUTUAL. Fallen anchors.
September 19, 2008... Byline: Stephen Cranston and Rob Rose OLD MUTUAL Fallen anchors The collapse of venerable institutions like Lehman Brothers and Merrill Lynch this week sent global stock markets into a nosedive. SA companies have generally been spared in...

Julian Roberts: is he the turnaround agent?
September 19, 2008... Byline: SAtephen Cranston Julian Roberts: is he the turnaround agent? If the Old Mutual board had been looking for a radical change in direction for the group, they would not have chosen Julian Roberts as CEO. As the now-outgoing CEO...

MARKET MELTDOWN. The second wave.
September 19, 2008... Byline: Andrew McNulty and Rob Rose MARKET MELTDOWN The second wave SA banks 'quite isolated'from latest US trauma but sentiment will take a knock WHAT IT MEANS. Global economic growth set to slow. Dampener for rand and asset...

The cost of poor performance.
September 19, 2008... Byline: Rob Rose The cost of poor performance Money isn't everything, said British industrialist John Paul Getty, but it sure keeps you in touch with your children. Outgoing Old Mutual CEO Jim Sutcliffe will do well to be philosophical...

FALLOUT FROM THE US BUSINESS. No more chasing rainbows.
September 19, 2008... Byline: Rob Rose FALLOUT FROM THE US BUSINESS No more chasing rainbows If investors had a buck for every time an SA firm left for America with grand promises and slunk back a few miserable years later with its tail between its legs,...

Did you hear.
September 19, 2008... Not so long ago you'd have gone to see your bank manager with some trepidation. Now, it would appear, the boot's on the other foot. At least that's according to a standard e-mail footer from Nedbank Private Bankers. It assures us that any...

Did you hear. Prize winners.
September 19, 2008... YOU COULD WIN a prize or cash by sending news snippets, wit and gossip to Did You Hear? The best two entries each week will win a Protea Hotel weekend in SA for two. Other published entries win R200. Please include your name, address and...

CBOT wheat futures.
September 19, 2008... Wheat futures on the Chicago Board of Trade fell to a 10-month low last week after the US department of agriculture (USDA) made no change to its estimate of inventories for next year. The USDA expects about 574m bushels to be in storage for...

A game changer.
September 19, 2008... Byline: BARNEY MTHOMBOTHI A game changer The judgment in Pietermaritzburg last Friday by Judge Chris Nicholson is a game changer in every sense. It turns everything on its head perceptions, predictions and even our reality. A week later...

DARK FIBRE AFRICA. Streets are humming.
September 19, 2008... Byline: Duncan McLeod DARK FIBRE AFRICA Streets are humming Next time you're cursing the trenches and gaping holes in SA's roads being dug by telecommunications companies to pull new ducting for fibre-optic cables consider this: all the...

GIMME. Fastlink hotspot.
September 19, 2008... Byline: Duncan McLeod GIMME Fastlink hotspot MTN SA is making a more aggressive play for the broadband market with a new wireless router and high-speed modem capable of downloads of up to 7,2Mbit/s. The device is not only a salvo against...

METRORAIL. Tickets for Tshwane managers.
September 19, 2008... Byline: Matebello Motloung METRORAIL Tickets for Tshwane managers The entire executive management team of the Metrorail Tshwane region faces demotion after being found guilty of incompetence and gross negligence by an independent...

NATIONAL EMPOWERMENT FUND. In the black.
September 19, 2008... Byline: Thebe Mabanga NATIONAL EMPOWERMENT FUND In the black WHAT IT MEANS. R699m disbursed over the past three years. Asonge share scheme successfully launched The process of fixing the National Empowerment Fund (NEF) is on...

Bank bailouts in numbers.
September 19, 2008... Byline: Razina Munshi Bank bailouts in numbers 3 of the top-five US investment banks Merrill Lynch, Lehman Brothers and Bear Stearns have choked on the subprime crisis in the past six months. 117 banks are on the US Fed's watch list...

CONSPIRACY THEORY. Truth or speculation?
September 19, 2008... Byline: Prakash Naidoo CONSPIRACY THEORY Truth or speculation? Does the latest ruling on Jacob Zuma confirm a conspiracy as he claims? Though Judge Christopher Nicholson stressed that his judgment was not a finding on Zuma's guilt or...

FINANCIAL SYSTEMS. Index's ironic indications.
September 19, 2008... Byline: Claire Bisseker FINANCIAL SYSTEMS Index's ironic indications SA's financial system has been ranked as fairly sound 25th out of 52 of the world's best in the first financial development index, a World Economic Forum initiative to...

ACCOUNTING STANDARDS. JSE tightens regulation.
September 19, 2008... Byline: Jacqui Pile ACCOUNTING STANDARDS JSE tightens regulation A battle is brewing between the Independent Regulatory Board for Auditors (IRBA) and the JSE over new listing requirements that will shake up the regulation of auditors....

NATIONAL PROSECUTING AUTHORITY. Conduct unbecoming.
September 19, 2008... Byline: Prakash Naidoo NATIONAL PROSECUTING AUTHORITY Conduct unbecoming The court's verdict may be a blessing but also puts the NPA in a quandary WHAT IT MEANS. Legal independence of the NPA protected. NPA buffered from...

BUY-TO-LET PROPERTY MARKET. Masters of their destiny.
September 19, 2008... Byline: Ian Fife BUY-TO-LET PROPERTY MARKET Masters of their destiny Property investor clubs are burgeoning in SA, with hundreds of people queuing to satisfy their appetite for the market. Anyone who believes the property slump is...

TAX INCENTIVES. Making R&D pay.
September 19, 2008... Byline: Razina Munshi TAX INCENTIVES Making R& D pay For years research & development (R& D) has taken a back seat. Now government is giving private companies an incentive. It is offering a 150% tax deduction on companies' R& D...

AVIATION INDUSTRY. SAA deal up in the air.
September 19, 2008... Byline: David Furlonger AVIATION INDUSTRY SAA deal up in the air With nearly 3500 back orders guaranteeing full production for at least seven years, European aircraft manufacturer Airbus could easily reallocate the 15 A320 jets over...

PUBLIC-SERVICE RESTRUCTURING. Morale gets a kicking.
September 19, 2008... Byline: Prakash Naidoo PUBLIC-SERVICE RESTRUCTURING Morale gets a kicking The SA Police Service is pushing ahead with its restructuring despite warnings from commentators that it could compromise the stability of the force. The...

DEVELOPMENT. Shedding the silo system.
September 19, 2008... Byline: Razina Munshi DEVELOPMENT Shedding the silo system What can government learn from car manufacturers? Quite a lot, argues Rogier van den Brink, the World Bank's chief economist for SA. Van den Brink has crafted a model for...

Toyota's car-making model.
September 19, 2008... Toyota's car-making model Car production line brings to mind Ford's innovative manufacturing, which broke the process of production into a sequence of assembly activities. The goal: maximising output. Ford operated by replacing faulty parts...

ZIMBABWE. The devil's in the detail.
September 19, 2008... Byline: Tony Hawkins ZIMBABWE The devil's in the detail While Zimbabwe's unity government deal represents a major advance, it is also littered with unanswered questions. President Robert Mugabe himself admitted that the negotiators could...

WHERE TO FOR ZUMA? Plain sailing.
September 19, 2008... Byline: Carol Paton WHERE TO FOR ZUMA? Plain sailing Zuma's road to the SA presidency is now unlikely to be impeded by legal action WHAT IT MEANS. Zuma no longer has a case to defend. The NPA could still charge Zuma As soon as it...

Move against Mbeki unlikely.
September 19, 2008... Byline: Thebe Mabanga Move against Mbeki unlikely After a weekend of heated tempers and passionate calls for the recall of President Thabo Mbeki, the ANC was poised to hold a crucial national executive committee meeting this week. And...

WHERE ARE THEY NOW? Graphic messages.
September 19, 2008... Byline: Amarnath Singh WHERE ARE THEY NOW? Graphic messages Leaving aside the incendiary Danish cartoons of the prophet Mohammed two years ago, the last time a political cartoon provoked as much anger and controversy as Zapiro's...

Medical matters.
September 19, 2008... Byline: Abdullah Gaffoor Medical matters I write to you regarding the article written by Shoks Mzolo entitled Regulator cracks whip (Features September 5). The article mentions that Clicks Medical Scheme has been liquidated due to...

Let the gougee beware.
September 19, 2008... Byline: Name withheld Let the gougee beware The article Hoodwinked (Cover Story September 12) contained an excerpt of a credit sale agreement for a R1639 dinner set from Lewis. The insurance on this transaction, at R50/month for 24...

ART. The lamp bearers.
September 19, 2008... Byline: Sean O'Toole ART The lamp bearers Joachim Schonfeldt and Mikhael Subotzky offer two contrasting shows exploring SA's heart of darkness, writes Sean O'Toole In periods of darkness it is the artist who keeps the small lamps of...

MUST SEE: LUCIAN FREUD.
September 19, 2008... MUST SEE: LUCIAN FREUD WHERE On from Thursday at Everard Read Gallery, 6 Jellicoe Avenue, Rosebank, until October 12 Lucian Freud, the figurative British painter whose stock has been chased up by Russian business tycoon Roman Abramovich after...

EATING OUT CAPE. Meat expectations.
September 19, 2008... Byline: Linda Stafford EATING OUT CAPE Meat expectations NELSON'S EYE. Address: 9 Hof Street, Gardens, Cape Town. Tel: (021) 423-2601. Open Tuesday-Friday, lunch; Monday-Sunday, dinner. BALTHAZAR. Address: Shop 153,...

CINEMA. Vile bodies.
September 19, 2008... Byline: Peter Wilhelm CINEMA Vile bodies An almost non-judgmental study of the corrupt, interlocked system of favelas (shacklands) that define Rio Elite Squad (Tropa de Elite) Directed by Jose Padhila; primary screenplay: Braulio...

Hottype.
September 19, 2008... Byline: Richard Steyn In this international edition of Nicolas Sarkozy's recent writings, Testimony: France, Europe and the World in the Twenty-First Century (HarperCollins, R159,95) the hyperactive new president sets out his vision of a...

GIVEAWAY. Eliane Elias's Bossa Nova Stories.
September 19, 2008... GIVEAWAY The FM and Blue Note are giving away five copies of Eliane Elias's Bossa Nova Stories. E-mail fmcompetition@ fm.co.za before September 26 to enter the draw. Please put CD giveaway in the e-mail subject line and provide a physical...

JAZZ CD REVIEW. Brazil's super nova.
September 19, 2008... Byline: Don Albert JAZZ CD REVIEW Brazil's super nova Saxophonist Bud Shank recorded some Brazilian sambas with guitarist Laurindo Almeida in 1958, but they passed almost unnoticed. Then in 1963 Stan Getz, with Charlie Byrd, cut an LP...

FOOD FOR THOUGHT. Zoot suits suit Zuma.
September 19, 2008... Byline: Justice Malala FOOD FOR THOUGHT Zoot suits suit Zuma JUSTICE MALALA ** 1/2CoFi Hatfield 1066 Burnett Street, Hatfield, Tshwane. Tel: (012) 342-1726. ***** Michelin; **** Fabulous; ** Good; **Zuma; *Mbeki With Jacob...

AT LUNCH WITH THE FM. Art transplant.
September 19, 2008... Byline: Hilary Prendini Toffoli AT LUNCH WITH THE FM Art transplant with new Goodman Gallery CEO Liza Essers at Geisha Wok & Noodle Bar, Cape Town HOW SHE CHILLS. Taking time out behind a camera, and shooting a couple of rolls of...

SOCCER. Just one thing missing.
September 19, 2008... Byline: Mark Gleeson SOCCER Just one thing missing After another two disappointing defeats for Bafana Bafana, the howling of the wolves at the door is becoming deafening. Commentators have over the past fortnight persistently been...

TRAVEL. Weaving magic in France.
September 19, 2008... Byline: Hilary Prendini Toffoli TRAVEL Weaving magic in France A spunky South African has turned a neglected chateau into what promises to become one of the most sought-after country hotels in central France. reports HOTEL CHATEAU...

COUNTRY FOODS. A bad taste in the mouth.
September 19, 2008... Byline: Larry Claasen COUNTRY FOODS A bad taste in the mouth It was not supposed to be this way. When mushroom producer and fruit juice company Country Foods listed a year ago, it seemed to be the beginning of new stage of strong growth....

AQUARIUS PLATINUM. Scramble for reserves.
September 19, 2008... Byline: Matthew Hill AQUARIUS PLATINUM Scramble for reserves The pressure is now on Aquarius Platinum CEO Stuart Murray, after rival Impala Platinum (Implats) beat him to the punch in initiating talks with Northam Platinum and...

Diamond: Aveng. Dog: Samroc.
September 19, 2008... Byline: Jamie Carr Diamonds & Dogs Diamond Aveng Giving awards to construction companies is getting about as monotonous as dishing out the sash and the sparkly crown to the Venezuelan girl. Most other sectors are gloomier than a bunch of...

DIS-CHEM. A model for pharmacists.
September 19, 2008... Byline: Sasha Planting DIS-CHEM A model for pharmacists Dis-Chem is one of SA's largest unlisted retailers and it's expanding aggressively by franchising its model. In the process, the drugs & beauty business could eat into the market...

TELKOM. More than just fixed lines.
September 19, 2008... Byline: Duncan McLeod TELKOM More than just fixed lines Telkom is expected to announce details of its strategy to become a significant player in wireless telecommunications in the next few weeks, as it gears up to compete more...

HEDGE FUNDS. May Day in July.
September 19, 2008... Byline: Stephen Cranston HEDGE FUNDS May Day in July When a hedge fund calls itself Mayflower, you'd expect it to survive the storms which buffeted that little ship when it crossed the Atlantic. The BlueAlpha Mayflower fund was...

BEST-PERFORMING STOCKS. Picking winners is tricky.
September 19, 2008... Byline: Andrew McNulty BEST-PERFORMING STOCKS Picking winners is tricky Historical patterns can provide pointers for investors with private share portfolios WHAT IT MEANS. Ratings and returns can change radically. It is...

PLATINUM. Into the fray.
September 19, 2008... Byline: Matthew Hill PLATINUM Into the fray Emerging precious metals junior Platfields is putting on a brave face ahead of its planned JSE listing. It insists that now is the right time. The company hopes to raise R200m to fund...

PPC. Cementing a deal.
September 19, 2008... Byline: Sibonelo Radebe PPC Cementing a deal There was relief among all concerned stakeholders when cement manufacturing giant PPC concluded its R2,7bn black economic empowerment (BEE) deal two weeks ago. Twenty months had passed...

REAL PEOPLE. Real stab at microlending.
September 19, 2008... Byline: Sasha Planting REAL PEOPLE Real stab at microlending Like its peers, microlender Real People is eyeing the market in sub-Saharan Africa with the speculative intent of a hungry lioness. It has operations in Lesotho, Malawi,...

PROPERTY FUNDS. Residential could be attractive.
September 19, 2008... Byline: Sibonelo Radebe PROPERTY FUNDS Residential could be attractive How long can the listed property sector of the JSE continue to shun the residential property market? In contradiction to international experience, JSE-listed property...

DIAMONDS. Northern Cape coup.
September 19, 2008... Byline: Matthew Hill DIAMONDS Northern Cape coup A storm is brewing along the ancient banks of the Orange River in the Northern Cape, as Pala Investment Holdings backed by Russian money makes a hostile move on John Bristow's Rockwell...

Fairer than foul.
September 19, 2008... Byline: NAZMEERA MOOLA Fairer than foul After years during which I pulled my bags past what seemed like a largely unchanging hole in the ground, construction at OR Tambo International Airport accelerated sharply late last year. Progress...

PROFILE. Grounded in principle.
September 19, 2008... Byline: Prakash Naidoo PROFILE Grounded in principle Legal professionals say there are few judges capable of delivering a judgment of the calibre of Judge Christopher Nicholson's ruling in the Jacob Zuma application in Pietermaritzburg...

Baseless thesis.
September 19, 2008... Byline: David Nurek Baseless thesis I make no apology for my attempts, while chairman of the two companies, to advance a sensible and commercial settlement I refer to the article by Rob Rose headed Bankers in the mix (Money & Investing...

Apathy or anarchy.
September 19, 2008... Byline: FREDERIK VAN ZYL SLABBERT Apathy or anarchy Though we have a democratic electoral system, it is one of the worst instances of unaccountable politics as far as the average voter is concerned. The current system, which is a closed...

THE PLACE TO BE OR NOT TO BE. Ancient tonic.
September 19, 2008... Byline: Zohra Mohamed THE PLACE TO BE OR NOT TO BE Ancient tonic San Aquam spa. Where: Kensington Boulevard, Durban North. Mood: Soothing There was a time when paying for a massage was a pleasure one could not indulge in without...

QUOTE OF THE WEEK.
September 19, 2008... Byline: JOHN McCAIN QUOTE OF THE WEEK We're going to reform the way Wall Street does business and put an end to the greed that has driven our markets into chaos... an end to running Wall Street like a casino REPUBLICAN presidential...

DIAMONDS. Ready to settle the Hole dispute.
September 19, 2008... Byline: Matthew Hill DIAMONDS Ready to settle the Hole dispute A dispute between De Beers and mining junior Tawana Resources over drilling for gems on the diamond giant's land that surrounds the Kimberley Big Hole could be settled by the...

WINNERS & LOSERS.
September 19, 2008... WINNERS & LOSERS LOSER. Richard Fuld. Lehman Brothers' CEO and chairman will go down in history as the banker who presided over losses that forced the demise of the 150-year-old Wall Street institution and triggered world market jitters....

Tip of the abuseberg.
September 19, 2008... Byline: David Wolpert Tip of the abuseberg I refer to your report about the furniture retail fiasco (Cover Story September 12). I spent over 30 years in the retail furniture industry and I can honestly say in retrospect that the best...

RMB/BER business confidence.
September 19, 2008... Byline: Razina Munshi Business confidence declined further to just 34 points in the third quarter the lowest level in seven years. The Rand Merchant Bank & Bureau for Economic Research business confidence index dived by 11 points,...

Manufacturing production.
September 19, 2008... Byline: Razina Munshi SA's manufacturing growth slowed to 3,3% y/y in July from a downwardly revised 5,7% in June, reflecting the pattern of the domestic economic slowdown. Production in the first seven months increased 3,4% y/y. While...

REAL PEOPLE DOING UNREAL THINGS. Branching out.
September 19, 2008... Byline: Larry Claasen REAL PEOPLE DOING UNREAL THINGS Branching out Luther Williamson. MD Johannesburg City Parks THE UNREALITY CHECK. Started out as an elevator technician. Had more than 90000 trees planted in townships. ...

AFFINITY. A way to add extra value.
September 19, 2008... Byline: Matebello Motloung AFFINITY A way to add extra value If you were ever in doubt about how trends-orientated the insurance industry is, then look no further than the number of companies that have taken to offering value added...

CELL CAPTIVES. Benefits offset negatives.
September 19, 2008... Byline: Matebello Motloung CELL CAPTIVES Benefits offset negatives Like most mass market inclined sectors, the insurance industry has been through a buoyant period of strong economic growth. This, naturally, has attracted an increasing...

Insured.
September 19, 2008... Byline: Matebello Motloung Insured This new kid on the block is making its presence felt WHAT IT MEANS. Clientele consists of top JSE-listed firms. Business has doubled in past three years Risk specialist insurer Centriq is...

In the big league.
September 19, 2008... Byline: Matebello Motloung In the big league An emphasis on excellence, creativity and strong partnerships is paying off WHAT IT MEANS. Has grown revenue to almost R2bn. Offers customised solutions Since breaking into the...