Financial Mail articles from September 2009

Financial Mail archives from September 2009

FINANCE. Faith-based lending.
September 25, 2009... Byline: Bilal Randeree FINANCE Faith-based lending A guide to the growing Islamic finance industry Islamic financial institutions are those that comply with Sharia, a set of laws from the Islamic faith. Conventional financial products that...

Which industry is best placed to.
September 25, 2009... Byline: Nomava Zanazo Which industry is best placed to boost SA's economy right now? Economic analyst, Pan-African Capital Holdings Upgrading the country's transport infrastructure will contribute to efficiency levels and also create...

Talking 'bout a revolution.
September 25, 2009... Byline: ARNOLD WENTZEL Talking 'bout a revolution Arnold Wentzel asks a question that will have educators quaking in their boots: What are we really learning in formal education institutions? Learning is a creative process of generating new...

Editor's note.
September 25, 2009... Byline: Kate Thompson Money may not buy you happiness, but it certainly makes misery more bearable. There are very few people who'd say they would be happier with less money. And even those who don't consider themselves well-off need only...

CAPITEC BANK STUDY. Young money.
September 25, 2009... Byline: Robert Quarshie CAPITEC BANK STUDY Young money How's your financial literacy? The results paint a positive picture of the optimism of South Africans that the country will provide prosperity Capitec Bank recently conducted a survey to...

INFORMATION TECHNOLOGY. Full service.
September 25, 2009... Byline: Garreth Bloor INFORMATION TECHNOLOGY Full service Entrepreneur Warwick Chapman is driven to deliver Warwick Chapman is an innovative entrepreneur. At age 27 he oversees 30 employees in an IT firm that has seen its numbers up in the...

How do I go about buying my first car?
September 25, 2009... How do I go about buying my first car? So you've done your homework and thoroughly checked out the cars on the market, and you've found the car that's just the right mix of reliability and style for you! Well done, but now what? Make sure you've...

Campus News.
September 25, 2009... Protesting Wits' students interrupted class on September 13 to protest against proposed fee increases for 2010. Police were called in to monitor the protest, which was suspended on September 17, with students agreeing to make representations to...

This week on the web.
September 25, 2009... Win music vouchers You can win R300 worth of music vouchers every week courtesy of Grant Thornton. Simply send us your answer to our latest Big Question (see page 11) by e-mailing campus@fm.co.za. blogs.fmcampus.co.za/question/ Ask the Guru...

NICHE MARKETS. A head for business.
September 25, 2009... NICHE MARKETS A head for business Naspers's Koos Bekker has no plans to tackle the US market When South African Koos Bekker wanted to grow Naspers, he looked to the developing world. Naspers is now Africa's largest media group with a market...

Pointers. CONGLOMERATE.
September 25, 2009... Pointers CONGLOMERATE: A group of diverse companies under common ownership and run as a single organisation

TALK ABOUT IT. NICHE MARKETS. A head for business.
September 25, 2009... TALK ABOUT IT 1)How does media help shape the image and perception of a nation? 2)Why is it not always a good thing for a company to diversify its product offerings? What are the possible consequences of doing so? 3)What factors need to be...

TEXTILE INDUSTRY. Garment workers up in arms.
September 25, 2009... TEXTILE INDUSTRY Garment workers up in arms Players aren't budging over new work conditions SA's textile industry has not fared well in the recession. To add to its already considerable woes, the industry's absenteeism rate has increased and...

Pointers. ABSENTEEISM.
September 25, 2009... Pointers ABSENTEEISM: The frequent absence from work or other duty without good reason.

TALK ABOUT IT. TEXTILE INDUSTRY Garment workers up in arms.
September 25, 2009... TALK ABOUT IT 1)Why is the Chinese textile industry more efficient than SA's? 2)How does the textile industry (other than employment creation) contribute to the country's growth levels? 3)What are the common grounds for demanding a wage increase...

PROVINCIAL SPENDING. Breaking the bank.
September 25, 2009... PROVINCIAL SPENDING Breaking the bank Municipality overspending is leaving provinces cash-strapped Rising personnel costs in health and education are compromising payment for vital goods and services, such as medicines, blood, laboratory...

Pointers. INCREMENT.
September 25, 2009... Pointers INCREMENT: A fixed or variable increase of some amount; usually refers to small or gradual increases.

. PROVINCIAL SPENDING. Breaking the bank.
September 25, 2009... TALK ABOUT IT 1)Who is responsible for determining municipal and provincial budgets? 2)Why is government experiencing major personnel issues, and what measures can be taken to address them? 3)What are the implications of over-inflation pay rises...

KING 3. No free board anymore.
September 25, 2009... KING 3 No free board anymore King 3 nips corporate greed in the bud With the launch of the King 3 governance codes, and the shake-up that governance practice continues to receive after the financial crisis, directors will need to play more...

Pointers. GOVERNANCE.
September 25, 2009... Pointers GOVERNANCE: A method or system of government or management or (in this case) corporate oversight.

TALK ABOUT IT. KING 3. No free board anymore.
September 25, 2009... TALK ABOUT IT 1)What corporate behaviours led to the sub-prime crisis? 2)How will ensuring board members are in tune with company goals reduce the potential for corporate misgovernance? 3)Should corporate governance include placing a cap on...

CARTELS. Corporate collusion on the rise.
September 25, 2009... CARTELS Corporate collusion on the rise Fines don't seem to deter price-fixing cartels Price-fixing is frowned upon, not only because only stymies creativity and quality provision and consumers are forced to accept high prices, but because it is...

Pointers. CARTEL.
September 25, 2009... Pointers CARTEL: A consortium of independent organisations formed to limit competition by controlling the production and distribution of a product.

TALK ABOUT IT. CA RTELS. Corporate collusion on the rise.
September 25, 2009... TALK ABOUT IT 1)What is the difference between a cartel and a monopoly? 2)Why is it illegal to collude and fix prices in a competitive market environment? 3)How can authorities deter firms from participating in anti-competitive behaviours other...

Which industry is best placed to boost SA's economy right now?
September 25, 2009... Byline: Abdul Milazi Journalist, The Times The manufacturing sector is arguably the economy's main growth engine, strengthened by skills, technology and capital-intensive industries. The manufacturing sector feeds into the services sector,...

Dunisani Mabunda.
September 25, 2009... Byline: Dunisani Mabunda Editor, Student Economic Journal I think SA's tourism industry has the potential to make a significant contribution to the overall growth of our economy. Since 1994, the number of annual foreign visitors has more than...

GAP YEAR. Cultural divide.
September 25, 2009... Byline: Simon Hartley GAP YEAR Cultural divide These adventurers swapped the typical "nine-to-five" for a gap year or three in Taiwan Many of us are heading towards a static existence, without any experience of the world outside our cubicle...

Diamond: Pallinghurst. Dog: Super Group.
September 25, 2009... Byline: Jamie Carr DIAMONDS & DOGS 's picks of the week Diamond Pallinghurst These are still early days for the proto-conglomerate that boasts Brian Gilbertson as its eminence grise, but it is assembling a range of businesses that have...

FOOD FOR THOUGHT. Shaken, and stirred - Baobab Cafe & Grill.
September 25, 2009... Byline: Justice Malala FOOD FOR THOUGHT Shaken, and stirred JUSTICE MALALA ****Baobab Cafe & Grill Shop 53 Upper Floor, Menlyn Park Shopping Centre, Menlyn. Tel: (012) 368- 1003. *****Obama! ****Excellent ***Good **John Hlophe *Leonard...

DID YOUHEAR?
September 25, 2009... A husband and wife are sitting at a table at her high school reunion. She keeps staring at a drunken man swigging whisky at a nearby table. Do you know him? the man asks his wife. Yes, she sighs, he's my old boyfriend. I understand he took to...

Enemy of the press?
September 25, 2009... Byline: Duncan McLeod Enemy of the press? Is Google a friend of the media, or a foe that will undermine journalism? It's a debate that's been raging in media circles. But no-one has been able to agree: is Google bad news for the news...

Capitalist concern.
September 25, 2009... Byline: NAZMEERA MOOLA Capitalist concern One of the side-effects of writing a weekly column is you open yourself up to criticism. Sometimes it's warranted as when I labelled the national road through Somerset West the N1 instead of the N2....

MTN decision calls for serious thought.
September 25, 2009... MTN decision calls for serious thought On the limited information available, there is nothing yet to show that telecom company MTN's proposed deal with India's Bharti Airtel should not be allowed to proceed. But government and other...

Easy rewards with little risk.
September 25, 2009... Easy rewards with little risk The trouble with inflation is that it is always teetering on the edge of a dangerous spiral. Once it starts rising, it produces expectations of higher inflation, which then push up wage demands. Thus we have been...

On a collision course.
September 25, 2009... Byline: BARNEY MTHOMBOTHI On a collision course A year after the coup d'etat which toppled Thabo Mbeki, the comrades, it seems, are still at each others' throats with even more relish this time. Those hoping for peace and harmony in the ANC...

Cure and cause.
September 25, 2009... Byline: ANNABEL BISHOP Cure and cause With a sound financial system and significant foreign exchange controls still in place, the international credit crisis did not spread directly to SA, but the resulting global recession has. The credit...

THE UGLY DUCKLING. AFROCENTRIC INVESTMENT CORP.
September 25, 2009... Byline: Larry Claasen THE UGLY DUCKLING AFROCENTRIC INVESTMENT CORP 1. Cash positive + 2. Revenue up + 3. Share ignored - 4. Dividend paid - 5. Profitable + AfroCentric is a difficult company to follow. The empowerment investment holding...

Another Week.
September 25, 2009... Another Week AT HOME President Jacob Zuma distances himself from the ANC's support for suspended Transnet Freight chief Siyabonga Gama's bid to become Transnet CEO. Armscor CEO Sipho Thomo received a salary increase of 19% to R1,45m and a...

COMMODITIES. Sugar slides.
September 25, 2009... COMMODITIES Sugar slides Last week, sugar prices on the US ICE Futures Exchange fell after a slight uptick in the dollar reduced the appeal of commodities as an inflation hedge. Moreover, India, the world's largest consumer, curbed imports of...

CAPACITY & SKILLS. Not enough grey beards.
September 25, 2009... Byline: Sasha Planting CAPACITY & SKILLS Not enough grey beards Competition commissioner Shan Ramburuth laughs at the suggestion that the antitrust body lacks the human resources to tackle the complexity and sheer volume of the cases it...

CASE STUDIES. Dealings uncovered.
September 25, 2009... CASE STUDIES Dealings uncovered From hospital groups and car manufacturers to bread cartels and milk producers, companies are under attack from the competition authorities. These are some of the biggest and most controversial cases so far...

A plan for the World Cup.
September 25, 2009... Byline: Matthew Hill A plan for the World Cup There's a danger that SA will run on fumes during next year's soccer World Cup a consequence of the competition authorities cracking down on cartels and collusive behaviour. The fuel industry says...

COMPETITION CRACKDOWN. Closing in on cartels.
September 25, 2009... Byline: Matthew Hill, Sasha Planting and Sharda Naidoo COMPETITION CRACKDOWN Closing in on cartels Companies be warned. The proverbial smoke-filled meetings between SA's cartels are in for a clean-out. The raids have already begun, and...

CONSTITUTIONALITY OF THE NEW LAW. A matter of judgment.
September 25, 2009... Byline: Thebe Mabanga and Matthew Hill CONSTITUTIONALITY OF THE NEW LAW A matter of judgment It could be a long battle between government and business on the new competition law. It will become a costly standoff WHAT IT MEANS: The new law...

Not quite time to celebrate.
September 25, 2009... Byline: Matthew Hill Not quite time to celebrate Africa's biggest steelmaker, ArcelorMittal SA, firmly believes it is off the hook for excessive pricing of its flat steel products. It could be wrong. And it could be facing further legal...

YOU COULD WIN.
September 25, 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...

ECONOMIC INDICATORS.
September 25, 2009... 2,6 percent m/m US retail sales rose in August, after falling by 0,2% in July. The Cash for Clunkers programme, where consumers were given rebates to trade old vehicles for new ones drove the gains. 10 percent Ten key industrial companies...

Tumbling down.
September 25, 2009... Byline: Razina Munshi Tumbling down The value of building plans passed in July fell by 43,2% y/y, from June's decline of 26,3%. Residential building plans continue to be the major contributor to the contraction. Despite interest rate cuts of...

ADVERTISING New look, new ways.
September 25, 2009... Byline: Matebello Motloung ADVERTISING New look, new ways Communication group Leo Burnett is working on a comeback. The FM reported in May that the firm, then as now owned by group CEO Groovin Nchabeleng, was in financial trouble. This...

CORPORATE GOVERNANCE. Focus on the board's role.
September 25, 2009... Byline: Razina Munshi CORPORATE GOVERNANCE Focus on the board's role Gone are the days, in theory anyway, when directors would arrive at board meetings without the requisite knowledge and experience. With the launch of the King 3...

HOUSING. Hurdles remain.
September 25, 2009... Byline: Razina Munshi HOUSING Hurdles remain Finance is the major obstacle to providing housing for low-income earners. That's the (hardly surprising) conclusion from a forum that has brought together people responsible for end-user finance,...

BROADCASTING. A business in trouble.
September 25, 2009... Byline: Carol Paton BROADCASTING A business in trouble The SABC will soon have a new board, but will it be able to steer the corporation out of trouble? There are some inspired choices: Ben Ngubane, the former IFP premier of KwaZulu Natal and...

PROVINCIAL SPENDING. Misery ahead.
September 25, 2009... Byline: Carol Paton PROVINCIAL SPENDING Misery ahead Rising personnel costs in health and education are compromising payment for vital goods and services, such as medicines, blood, laboratory services and facilities, and school textbooks. ...

TELECOMMUNICATIONS. MPs bay for fee cut.
September 25, 2009... Byline: Larry Claasen TELECOMMUNICATIONS MPs bay for fee cut Politicians may be giving themselves a pat on the back for getting telecommunication companies to cut some costs, but their work is far from done when it comes to easing prices and...

TEXTILE INDUSTRY. No cutting of cloth.
September 25, 2009... Byline: Claire Bisseker TEXTILE INDUSTRY. No cutting of cloth The strike piles more pressure on an industry already fighting for survival WHAT IT MEANS: Union rejects 8% wage package; Employers say strike will cost jobs Ultimately it means...

THE JUDICIARY. Blind justice indeed.
September 25, 2009... Byline: Prakash Naidoo THE JUDICIARY Blind justice indeed Watching the Judicial Service Commission (JSC) interview candidates for the constitutional court was an experience that veered from the edifying to the exasperating within minutes. ...

RESERVE BANK. Not for profit.
September 25, 2009... RESERVE BANK Not for profit Barefoot and clad in lederhosen and a traditional Bavarian shirt, SA Reserve Bank shareholder Michael Duerr raised the ire of governor Tito Mboweni at the Bank's AGM last week. Duerr, a German national, has become the...

101.
September 25, 2009... Byline: Claire Bisseker What does it mean when the SA Reserve Bank sterilises purchases of foreign exchange? When the Bank buys dollars, it injects liquidity into the local market, which could be inflationary as it implies an increase in the...

LABOUR. Behind Cosatu's figures.
September 25, 2009... Byline: Prakash Naidoo LABOUR Behind Cosatu's figures Trade union federation Cosatu began its 10th national congress in Midrand this week boasting a much more robust membership tally than expected. Since the last congress three years ago,...

ENTREPRENEUR. Making green diesel.
September 25, 2009... Byline: Matebello Motloung ENTREPRENEUR Making green diesel While governments debate issues around alternative energy production, brother and sister duo Abel and Violet Manganyi are getting on with it. They own Humelani Trading &...

GIMME Portable, wireless printer.
September 25, 2009... Byline: Robert Quarshie GIMME Portable, wireless printer If you're looking for a printer that's fully portable, looks good, prints great photographs and documents and you are not feeling the financial crunch then the HP Officejet H470 mobile...

BLACK MANAGEMENT FORUM. Manyi wants two hats.
September 25, 2009... Byline: Thebe Mabanga BLACK MANAGEMENT FORUM Manyi wants two hats WHAT IT MEANS: Manyi's candidacy will raise questions. Mohale will prove a formidable opponent We have to influence government policy, not oppose it Jimmy Manyi The Black...

ADVERTISING. Sneaky withdrawal.
September 25, 2009... Byline: Matebello Motloung ADVERTISING Sneaky withdrawal Wondering what happened to the edgy OUTsurance advertising campaign that showed three burly men discussing how to best exploit an unsuspecting insurance claimant and laughing about it?...

THE PLACE TO BE OR NOT TO BE. Proud past chronicled.
September 25, 2009... Byline: Carol Paton THE PLACE TO BE OR NOT TO BE Proud past chronicled ALBERT LUTHULI MUSEUM. Where: Groutville, KwaZulu Natal North coast. Mood: Uplifting. Forget the unpleasant realities of politics today and relive the glory days...

PROFILE. Push for union power.
September 25, 2009... Byline: Thebe Mabanga PROFILE Push for union power Cosatu president Sdumo Dlamini embodies the labour federation's desire to consolidate the gains of Polokwane by crushing what they see as remnants of the 1996 class project. This is a move by...

QUESTIONS & ANSWERS. Rights in Gaza.
September 25, 2009... Byline: Zohra Mohamed QUESTIONS & ANSWERS Rights in Gaza SA judge Richard Goldstone speaks to about his inquest for the UN into the Israeli offensive in Gaza in early 2009, which is more critical of Israel than Hamas What do you feel...

QUOTE OF THE WEEK.
September 25, 2009... Byline: GERT OOSTHUIZEN QUOTE OF THE WEEK We now request the membership of Athletics SA to not only take disciplinary action against Mr Chuene but to fire him from his post as the president of ASA. If they fail to do so, they will be running...

REAL PEOPLE DOING UNREAL THINGS. No food for lazy man.
September 25, 2009... Byline: Matthew Hill REAL PEOPLE DOING UNREAL THINGS No food for lazy man RIAAN MANSER. Adventurer. THEUNREALITYCHECK: First person to circumnavigate Africa on a bicycle; Kayaked around Madagascar's coastline; Working on another book;...

WHERE ARE THEY NOW? Milestone of support.
September 25, 2009... Byline: Prakash Naidoo WHERE ARE THEY NOW? Milestone of support During the darkest days of apartheid and at the height of repression in the 1980s, more than 30 000 people were detained by the police. Many were held in solitary confinement...

GOLD. Gaining ground.
September 25, 2009... GOLD Gaining ground Last week, the gold price jumped to an 18-month high, influenced by a number of factors including the weaker dollar, inflation concerns and increasing speculative demand for the metal. In recent weeks, hedge-fund managers and...

Political will needed.
September 25, 2009... Byline: Dion George Political will needed When finance minister Pravin Gordhan tables the medium-term budget policy statement next month, he will set the tone for government spending over the next three years. Government's ability to manage...

ELECTRONICS. A better connection.
September 25, 2009... Byline: Larry Claasen ELECTRONICS A better connection It's been a tough time for smaller cabling and electronics companies. The global recession has taken its toll and a number of the large industrial and infrastructure projects were put on...

CINEMA. The Holocaust in Toronto.
September 25, 2009... Byline: Peter Wilhelm CINEMA The Holocaust in Toronto An alienated Canadian schoolboy tries to interpret his past Adoration: Directed by Atom Egoyan. Lead roles: Devon Bostick, Noam Jenkins, Rachel Blanchard, Arsinee Khanjian, Scott...

BREAKFAST WITH THE FM. Back on target.
September 25, 2009... Byline: Matebello Motloung BREAKFAST WITH THE FM Back on target with TBWA\Hunt\ Lascaris cofounder Reg Lascaris at Thrupps in Johannesburg HOW HE CHILLS: Loves music, be it jazz or rock. Enjoys the outdoors and travelling One of the...

RUGBY. Perils of being versatile.
September 25, 2009... Byline: David Williams RUGBY Perils of being versatile Ruan Pienaar must feel like a baritone who keeps being asked to sing bass or tenor. It's not impossible for a singer to move between the voices. The great Australian Peter Dawson...

SERVICE. Their aim is to please.
September 25, 2009... Byline: Anna Trapido SERVICE Their aim is to please picks out some super-service stars on the hotel and restaurant circuit DIAL 'EM UP. La Madeleine: (012) 361-3667; Linger Longer: (011) 884-0465; Monarch: (011) 341-2000; Nobu: (021)...

TRAVEL. The party goes on.
September 25, 2009... Byline: Linda Stafford TRAVEL The party goes on LE TOUESSROK. Go to: www.sunresortshotels.com Booking info: World Leisure Holidays on tel: 0860-954-954; or: www.wlh.co.za Despite its manifest positives, this account of a brief...

Crisis watch.
September 25, 2009... Byline: Andrew McNulty Crisis watch Where are the earnings? Considering that we are in the worst recession in decades, the pattern of earnings reported by JSE companies has not so far been as bad as may be expected. But there is certainly...

METCASH. Returning to the JSE?
September 25, 2009... Byline: Sasha Planting METCASH Returning to the JSE? There is a drive under way to rebuild Metcash, the privately held wholesaler and retailer which once nurtured dreams of becoming a global retail player. In its heyday it operated close to...

MOMENTUM. The forgotten insurer.
September 25, 2009... Byline: Stephen Cranston MOMENTUM The forgotten insurer FirstRand has little incentive to unbundle Momentum right now. Even though the life assurer's earnings fall back in weak equity markets, this has not devastated its results as...

NASPERS. Out of Africa.
September 25, 2009... Byline: Matebello Motloung NASPERS Out of Africa When Australian-born media mogul Rupert Murdoch looked into expanding his media empire, his target initially was to grow the company in developed economies, mainly the US. When South African...

INVESTING OFFSHORE. Diversification benefits.
September 25, 2009... Byline: Andrew McNulty INVESTING OFFSHORE Diversification benefits The concept of rand hedge stocks is outdated other factors now come into play WHAT IT MEANS: Many international stocks are on the JSE. Quality and location of offshore...

OLIVEWOOD. One way to skin the taxman.
September 25, 2009... Byline: Matthew Hill OLIVEWOOD One way to skin the taxman The difference between a taxidermist and a tax collector, Mark Twain wrote, is that the taxidermist takes only your skin. Now, though, investors will be able to get significant amounts...

RMB HOLDINGS - BANKS.
September 25, 2009... Byline: Stephen Cranston RMB HOLDINGS BANKS Price: R27,50 Yr Jun Inc (Rbn) EBT (Rbn) EPS (c) DPS (c) Mkt cap: R33,2bn 2009 7,12 2,93 207,1 99,0 PE: 12,5 2008 9,68 4,64 345,9 141,5 Sector: 11,6 t s -27% -37% -40% -30% This used to be not much...