Rational Perspective

JOHANNESBURG — Soweto's Vilakazi Street is a hive of activity these days, with the street dotted with several restaurants and hugely important historical sites that include the home of former President Nelson Mandela. However, it was only 18 years in 2001 that the first restaurant, Sakhumzi Restaurant, opened in the famous street. In this interview, the restaurant's owner, Sakhumzi Maqubela, gives us the backstory to how his establishment set a trend and now employs over 100 people. In total, the 10 restaurants in the street today employ over 800 people. It's an inspiring story and one that shows the true entrepreneurial spirit and potential that South Africa has. - Gareth van Zyl See omnystudio.com/listener for privacy information.

South African gold and platinum producer Sibanye has announced that it had raised R1.8bn ($130m) in cash through selling the equivalent of 5% of its equity at R16.50 a share. The Johannesburg Stock Exchange has urgently requested that the external auditors of Ayo Technology Solutions investigate the company’s reported financials for the six months to end February 2018 and February 2019 . On the day when Israel is set to celebrate becoming only the fourth country to land a spacecraft on the moon, the nation also digests its collective decision to elect a political leader facing corruption charges. A South African currency strengthening to better than R14 to the US dollar sparked another big day for retailing shares on the JSE, led by a 7.4% surge for discounter Mr Price whose stock has risen 17% in a fortnight.  See omnystudio.com/listener for privacy information.

LONDON — The online video-streaming service Netflix, which many or should I say most of us access for a binge watch of a favourite series or movie has had little competition over the last years. It has been the reigning media stock in the S&P 500 Index for six of the last eleven years and its gain so far in 2019 is 37%. But serious competition is coming with the announcement that Walt Disney, Apple and AT&T, which now owns WarnerMedia will begin to roll out their own Netflix-like products. And just to give you an idea of what that means; in the case of AT&T, it now has HBO in its stable which is a major draw card for viewers of “Game of Thrones”. When Apple announced its streaming service, it brought in Steven Spielberg and Oprah Winfrey for the launch. Some may say Netflix is so far ahead, it is like Usain Bolt at his best smiling for the cameras as he breaks another world record. But Laura Martin, a senior entertainment analyst at Neeham & co told Bloomberg’s Lisa Abramowicz and Paul Sweeney that Netflix co

The International Monetary Fund yesterday cut its forecast for South Africa’s economic growth in 2019 to a pedestrian 1.2% and a modest 1.5% in 2020, both down 0.2% from projections made six months ago. Debenhams, the 241 year old British retailer whose initial boost came from dominating the sale of family mourning clothes during the strict Victorian era, yesterday attended to its own funeral. One of the world’s big three rating agencies S&P yesterday left South Africa’s credit score unchanged at two levels below investment grade. South African share prices lost a little ground yesterday with the JSE’s overall index closing a quarter percent lower. It was dragged down by a 4% drop in the price of heavyweight Richemont after analysts at Credit Suisse downgraded the stock to “underperform”. See omnystudio.com/listener for privacy information.

The former Chief Investment Officer of JSE-listed Ayo Technology Solutions yesterday told the commission of inquiry into the PIC that the company manufactured financial statements to secure a R4.3bn investment from South Africa’s State pensioners. The $2bn Tuna Bond scandal which involves state officials and Credit Suisse bankers, took an interesting turn yesterday when the Kempton Park magistrate’s court ruled against former Mozambiquan finance minister Manual Chang’s attempt to resist extradition. Leading South African retailing group Pick n Pay yesterday gave notice that it will be delivering good news when publishing financial results for the year to end February. On the JSE yesterday, precious metals stocks rose strongly with Royal Bafokeng Platinum jumping 9%; Harmony 7.5%; Sibanye 5.5%, Anglo Platinum up 5%; Goldfields 4% and Anglogold 3.5%. See omnystudio.com/listener for privacy information.

Pressure mounted over the weekend on the man who oversees day-to-day running of South Africa’s ruling political party. Another round of trade talks between the US and China wrapped up in Washington over the weekend with both sides happy with the progress. South Africa’s leading food group Tiger Brands is to unbundle to shareholders its remaining 49m shares in South Africa’s biggest fishing group, Oceana. Steinhoff announced late on Friday that its auditors Deloitte have pushed out the projected date for publication of the financial results for 2017 and 2018. See omnystudio.com/listener for privacy information.

As the UK lurches ever-closer to a no-deal Brexit, the view from the ground in the UK is depressing. Business investment has slowed as companies consider their long-term future. Many are setting up shop offshore in Europe to avoid potential disruptions and maintain their European market share. Many others are simply adopting a wait-and-see policy, holding off on acquisitions, new hires, and investment. And many of the foreigners who live and work in the UK have decided to abandon ship. Many Leavers will be glad to hear that foreigners are leaving – anti-immigrant sentiment was a big part of the Leave campaign. But in the years to come, the UK may miss the skills those foreigners brought to British shores. If the UK achieves an orderly Brexit – a big if at this point – the economy won’t collapse. But Brexit will act as a slow puncture, gradually letting air out of the British economy. The UK may survive (assuming Scotland and Northern Ireland don’t opt for their own Exits), but it will be diminished in many im

CAPE TOWN — When vested-interests close ranks and reassure the public that all is well, that’s often exactly the signal for just how wrong things may have gone. A case in point is Boeing admitting that a software fault was responsible for both 737 Max crashes that took 346 lives - after the entire US aviation industry closed ranks to say it was safe to fly the plane. The US was the last nation to ground the 737 Max as most other countries opted for this guaranteed, no-risk approach - long before the Ethiopian black box revealed its feared confirmation. The Federal Aviation Administration, FAA, hardly covered itself in glory. The cause of the Lion Air tragedy five months earlier, was (also) the Manoeuvring Characteristics Augmentation System, known as MCAS, “activating in response to erroneous angle of attack information.” Boeing techno-speak for the pilot, despite following override protocols, being unable to pull out of a fatal nose dive automatically induced by the software mis-diagnosing the plane as stall

JOHANNESBURG - On a recent trip to South Africa, Professor Ilian Mihov, the Dean of renowned global business school INSEAD, took the time to chat to us at BizNews. In this wide-ranging interview, Mihov explains why business can be and, in many ways, already is a major force for good in the world. He also explains how he thinks South Africa has tremendous potential and why it too can benefit dramatically from just getting on the path of becoming a more business-friendly destination. He also explains the value of an MBA in today's world and why INSEAD wants to see more students from Africa joining its ranks and alumni. It's fascinating to hear an outsider's perspective on the challenges and opportunities that South Africa and Africa face. Take a listen. - Gareth van Zyl See omnystudio.com/listener for privacy information.

In today's business headlines: BP has been found guilty in the Pretoria High Court of environmental crimes in a private prosecution. Ethiopia concluded that their pilots repeatedly followed procedures recommended by Boeing. Tesla Inc. shares fell by 11% as a record decline in deliveries during the first quarter stoked concern.  United Kingdom has lost £6.6bn in economic activity every quarter since it voted to leave the European Union. Countries with the lowest levels of corruption collected nearly 5% of GDP more than those low on the list, The ANC's Ace Magashule says he is not a crook. See omnystudio.com/listener for privacy information.

LONDON — The professional services consultancy, McKinsey is often mentioned in the story of graft and the erosion of Eskom in South Africa. With Trillian, the Gupta-owned company they managed to siphon off R1.6bn from the power utility. McKinsey has repaid the money and has apologised to South Africa. However, this is not the end of the company’s name being associated with scandal. Earlier this year it appeared again in the headlines in the US where McKinsey is accused of benefiting from measures to help companies that are in trouble. And now former McKinsey CEO and Goldman Sachs director, Rajat Gupta has just surfaced after spending time in prison after he was found guilty of insider trading and released his memoir “Mind without Fear”. In an interview with Bloomberg’s Lisa Abramowicz and Paul Sweeney he says he is innocent, while the big villains of the financial crisis managed to get away. - Linda van Tilburg See omnystudio.com/listener for privacy information.

In today's business headlines: Public Enterprises Minister Pravin Gordhan told a media briefing on Eskom that there will be little or at worst only Stage 1 load shedding in the winter. Foreign investors have bought a net R6.8bn of government bonds since Friday after outflows of R81m in March. UK Prime Minister Theresa May held two hours of "constructive" talks with opposition leader Jeremy Corbyn on Brexit. The Ethiopian airline pilots involved in the crash near Addis Ababa did follow the Boeing emergency procedures. The FDA is investigating a link between e-cigarettes and seizures among young vapers. And the ANC's Integrity Committee will not investigate Ace Magashule. See omnystudio.com/listener for privacy information.

British Prime Minister Theresa May is going to ask the European Union for another Brexit delay and will reach to her opposition leader, Jeremy Corbyn to find an end to the logjam. British MPs wants to break up the Big Four auditing companies, PWC, KPMG, EY and Deloitte. The software upgrade for the Boeing 737 Max is not ready. Lyft saw shares slump to below its IPO of $72. Penguin Random House says they will not withdraw Pieter-Louis Myburgh’s book on ANC Secretary-General Ace Magashule. See omnystudio.com/listener for privacy information.

LONDON — Many of our readers sat upright when we published an article in which financial planner, Alec Riddle told us that people who retire earlier, can expect to live longer. Just spending more time in your own garden and local haunts with more frequent travel may be a good retirement prospect for some; for the more adventurous a retirement overseas may be more alluring. But it is not always easy to choose a destination. Sitting in a café in Paris, munching a croissant and looking at the stylish Parisians, may sound like a good idea, until you try chatting with the locals and you discover that they frown upon or are plain ‘bleddie ongeskik’ to anyone not speaking their language. Or maybe they just don't like the English. You get more done trying Afrikaans or Zulu first. And even if you do have a smatter of French, they tend to answer you in English. So, all those lessons count for nothing. But don’t despair you do not only have to consider the obvious destinations like the United Kingdom and the places wher

Saudi Arabia’s once secretive national oil company Aramco, lifted the veil on its financials yesterday to expose that it is by some distance the biggest profit generating company on earth. Two former employees of Barclays Bank were sentenced to jail for their roles in rigging of a European benchmark interest rate. The South African rand rallied strongly yesterday after Friday’s non-statement from Moody’s, which simply stated that the rating was not adjusted with the next review on November 1. It’s now four winning sessions in a row for South African shares as the JSE picked up 1.1% yesterday led higher by financial and industrial shares.  See omnystudio.com/listener for privacy information.

LONDON — In a world where salaried executives and their spin doctors boast when they post growth in single digits, it's refreshing to find those for whom those numbers don't cut it. So after another strong year, this time of 43% growth, I tapped insurance company BrightRock's CEO Schalk Malan for an update. We've been privileged to have BrightRock as a partner virtually since the creation of Biznews, so not surprisingly have followed their progress more closely than most. The tall, strapping and super-bright Malan reminds me both physically and intellectually of the late Simon Marais, whom I also watched closely over the years as he built Allan Gray into South Africa's leading money manager. Might we be witnessing something similar with BrightRock? - Alec Hogg See omnystudio.com/listener for privacy information.

JOHANNESBURG — Sustainable, or ESG, investing is becoming a more prominent form of growing your wealth in many parts of the world. While South Africa's JSE is internationally respected as among the world's top bourses with good liquidity, the very nature of the companies on it (especially the big presence of mining giants) means that it isn't a great fit for ESG investing. This is according to London-based Mike Abbott who works with Sable International's Wealth Team. In this interview, Abbott tells us more about the growing momentum behind ESG investing and why you need to look offshore to get involved. - Gareth van Zyl See omnystudio.com/listener for privacy information.

Global stocks markets ended the first three months of 2019 in great shape with another winning session on Friday taking US shares to their best quarterly result in almost a decade. China’s Purchasing Manager’s Index, the official gauge of activity in the country’s manufacturing sector of the world’s second biggest economy, rebounded strongly in March. Facebook founder Mark Zuckerberg has called on global lawmakers to introduce more regulation on his own and other internet companies across areas including user privacy. South African shares closed the week with three successive winning sessions with the JSE’s All Share Index rising three quarters of a percent on Friday. See omnystudio.com/listener for privacy information.

The UK Parliament may see another vote on Prime Minister Theresa May's deal today after late night negotiations with Belfast and she offered to resign to save the deal. A second Barclays ex-trader has been convicted for Euribor rigging. Another US state is suing Purdue Pharma and the Sackler family for the opioid crisis after an Oklahoma settlement. The Reserve Bank held the repo rate at 6.75% and the growth forecast has been lowered from 1.7% to 1.3%. President Cyril Ramaphosa's son Andile's deal with Bosasa may have legal implications. See omnystudio.com/listener for privacy information.

LONDON — Bitcoin once flew high and peaked at around $20,000. Compare that to the recent price of a mere $4,000. The vision of a token-driven decentralised economy and off course untold wealth for people has imploded and it is now almost a dirty word as it struggles for legitimacy. And many wondered if it is over for blockchain as well. But to use a good old saying, ‘Don’t throw the baby out with the bath water’ as blockchain has many other uses. If you have been pouring over blockchain for dummies trying to understand the technology behind it, Stephen P. Williams, the author of “Blockchain, the next everything”, explains to Bloomberg’s Carol Massar and Jason Kelley that you need not understand the science behind it to use it. - Linda van Tilburg See omnystudio.com/listener for privacy information.