Rational Perspective

JOHANNESBURG — The recent passing away of John Bogle, the low-cost investing pioneer and founder of Vanguard, put into sharp focus the continuing downward pressure on fees in the investment industry. It's a trend that - along with the increasing adoption of technology - will gather pace in 2019, according to Wealthport CEO Eugene Maree. In this interview, Maree gives an insider's insight into the forces that will shape the investment landscape in 2019. - Gareth van Zyl See omnystudio.com/listener for privacy information.

In today’s global business headlines…… Further evidence of the rapidly changing political world this morning comes from El Salvador where a 37 year old former advertising executive swept to the victory in the first round of the presidential election.  Momentum continues to grow for ESG factors to receive more attention from public companies. In South African related news, a consortium led by Israeli group Central Bottling Company has made a R4.8bn offer to acquire control of South Africa’s dominant dairy business Clover. Also from South Africa, one time JSE heavyweight Impala Platinum is clawing its way back to health with news this morning that it has rebounded back into profit.  See omnystudio.com/listener for privacy information.

Probably because of the premium it puts on curiosity, my trade seems to attract the most interesting people. But even by our high standards, there are few like Neil Jacobsohn, who moved on from newsrooms to boardrooms and thence out of the media industry completely to indulge his passion for learning at FutureWorld International. We have to thank Neil for introducing the fascinating Dr Vivienne Ming to South Africa. California born and bred Dr Ming is a cognitive neuroscientist, entrepreneur and member of the faculty at the pioneering Singularity University. She is also one of the world’s leading experts in artificial intelligence, with a story that is as extraordinary as her insights. We caught up after she had blown away an appreciative audience at PWC’s new Waterfall City headquarters near Johannesburg… See omnystudio.com/listener for privacy information.

In his brilliant book, The End of Power, author Moises Naim wrote that the likes of innovative startups, loosely organised activists, upstart citizen media and charismatic individuals who come from nowhere are shaking up the old order. “These are the micropowers,” he wrote, “small, unknown or once negligible actors that have found ways to undermine, fence-in or thwart the megaplayers……” Naim’s treatise is hugely respected. In 2015, The End Of Power was Facebook founder Mark Zuckerberg’s inaugural pick in his “Year of Books challenge” where he challenged his community to join him in reading one book every two weeks for an entire year. It was also listed as a Financial Times Book of the Year in 2013. The powerful messages embedded in the book are being felt around the world, including in South Africa where mobile phone giant continues to battle against a now 42 year old former employee over his idea that the company applied 18 years ago. Kenneth Nkosana Makate fits the bill of the unknown activist who perf

In today’s global business news headlines: Zimbabwe’s travails are back in the headlights this morning with the Financial Times of London declaring the country is heading for a Venezuela style meltdown. After Amazon’s share price rose strongly ahead of the release of its December quarter’s results, the stock fell in after-hours trading to $1 635 a share, slightly slightly down on Thursday’s close. US president Donald Trump has called for another summit with “my friend”, his Chinese counterpart Xi Jinping, to put the seal on a reworked trade arrangement between the countries. In South African related news, a fresh challenge is looming for its mining companies after the Church of England Investment body was joined by other fund managers in calling for a thorough review of all slimes dams worldwide. See omnystudio.com/listener for privacy information.

In today’s global business news headlines… Stock markets are cheering after yesterday’s unexpected reversal of US Fed interest rate policy. Share prices were also buoyed by better than anticipated quarterly results from internet giants Facebook and AliBaba.  There was more bad news for Tesla from Europe yesterday as the world’s largest car maker, Volkswagen, unveiled an electric car chassis which by 2022 will be the building block for 50 different models.  The Trump Administration yesterday announced changes designed to increase by around five and a half thousand a year, the H-1B visas issued to highly skilled foreigners. See omnystudio.com/listener for privacy information.

JOHANNESBURG — There's surging demand from South Africans for the United States' EB-5 immigrant investor programme. This is according to Stuart Ferguson who is the CEO of American Dream - a business that helps secure US visas for families from countries such as South Africa and even the United Arab Emirates. It's no surprise that many South Africans are looking for a plan B. Daily revelations of corruption and concerns over the South African economy have generally sparked an exodus among many locals. In this interview then, Ferguson explains the ins and outs of the EB-5 immigrant investor programme. - Gareth van Zyl See omnystudio.com/listener for privacy information.

After the markets closed last night, Apple Inc confirmed its widely telegraphed reverse during the three months to end December - and the share price jumped 6%. The UK’s Brexit drama took a new twist yesterday when British Parliamentarians voted to send prime minister Theresa May back to Brussels to try negotiate a new divorce settlement.  Brazilian iron ore miner Vale has promised to dismantle 10 lookalike slimes dams as the fallout from the Friday’s disaster continues. In South African related news, the gold price rose to its highest in eight months overnight, touching $1 315 an ounce ahead of today’s US Federal Reserve news conference.  See omnystudio.com/listener for privacy information.

JOHANNESBURG — It's well known that Africa has serious challenges when it comes to sufficient infrastructure. In fact, it presents both a challenge to the continent's growing economies as well as an opportunity to leapfrog the rest of the world. To date, African nations have relied overwhelmingly on public funding to build their current infrastructure layer. But if Africa ever hopes to bridge its massive infrastructure gap, it needs to let in more private investment. This is the view of RMB Africa Analyst Celeste Fauconnier in this interview on RMB's latest 'Where to invest in Africa' report. - Gareth van Zyl See omnystudio.com/listener for privacy information.

In today's global headlines.... US prosecutors have filed a raft of charges against China’s tech equipment giant and national champion Huawei.  The end game is fast approaching for Venezuela’s embattled leader Nicolas Maduro with the US imposing sanctions on his last source of income.  Saudi Arabia’s sovereign wealth fund is distancing itself from the electric car company. In South African related news, Absa chief executive Maria Ramos this morning announced she will retire next month.  See omnystudio.com/listener for privacy information.

In global news headlines..... Turnover in the London housing market has fallen to its lowest level since the Global Financial Crisis ten years ago and those who do sell have accepted 11% less than their asking prices. The world’s largest iron ore producer, Brazilian group Vale, is in the global headlines today after the biggest mining disaster in more than 50 years.  California’s Stanford’s Graduate School of Business has topped the world’s best MBA list for the second successive year, shading its east coast rival Harvard. In South African related news, the Naspers share price opened fractionally lower this morning after Friday evening’s announcement it had paid more than a billion dollars to buy the 27% it did not already own in Russian company Avito.  See omnystudio.com/listener for privacy information.

We never chatted about it in this interview, but Absa CEO Maria Ramos is sure to allow herself a wry smile when reflecting on the latest rockets to hit her former bosses at Barclays. Because while Ramos was making a massive statement in Davos with the newly independent Absa, her previous bosses, including ex-Barclays CEO John Varley, were in a London court charged with fraud and corruption involving their direct involvement bribes paid to the facilitator of a $3bn Qatari investment. By contrast, Ramos has an unblemished reputation in decades of running SA's Treasury and Transnet en route to her directing of Africa's largest retail bank. She is also a long-time Davos attendee, including having co-chaired the World Economic Forum's annual meeting. But this year was surely the highlight of her decades long participation as Absa became the first African business to take a major presence on the Davos high street (the Promenade) to celebrate its arrival as a major continental force. As Ramos explains in this interv

After I switched off my recorder, Koos Bekker suggested there was enough in our half hour chat in Davos this morning for me to edit it down to something usable. He was wrong. Despite strictly applying the old maxim of “when in doubt, leave out” it was impossible for me to edit out parts without short changing the Biznews community. For instance, how can one cut the Naspers chair's insights on soon to be unbundled Multichoice? Or when the 15 year veteran shares how Davos really works? Or his thoughts on Facebook and the privacy debate? And, besides, millions of South Africans have a direct interest in what he is thinking. Because a full one fifth of SA equity investments are riding on the astonishingly successful business he transformed from a sleepy newspaper and book publisher into one of the world’s major internet players. Bekker is disarmingly humble. His wisdom is best consumed at the leisurely pace at which he delivers it. So go grab a cuppa (or your glass of red wine) and settle back for a treat. – Alec

JOHANNESBURG — President Cyril Ramaphosa is set to have a state visit to India on 25-26 January. The visit will present another opportunity for Ramaphosa to drum up further investment for South Africa, following a major summit that he held late last year. India is increasingly becoming a key nation in global politics and business with the country set to become the fifth largest economy this year. Ramaphosa's visit to the country, therefore, will be among his most important to date. One major South African company that already has strong ties to India is interestingly that of Rand Merchant Bank (RMB). And in this interview, RMB CEO James Formby explains why SA businesses have to start taking a closer look at the Indian market. - Gareth van Zyl See omnystudio.com/listener for privacy information.

In Davos yesterday, Finland’s former prime minister and EU presidential hopeful Alexander Stubb warned that more money laundering scandals are likely to be uncovered in the wake of the Danske Bank and Deutsche Bank investigations. Also in Davos, IMF chief executive Christine Lagarde identified the trade war between the US and China as the biggest threat to economic growth in the world. Last night 88 year old billionaire philanthropist George Soros used his annual dinner for journalists in Davos to launch a broadside at Chinese president Xi Jinping, calling him the most dangerous opponent of those who believe in open societies. In South African relates news, it has emerged in private conversations here in Davos that a radical plan is being hatched to address the terminal state of the country’s electricity provider Eskom. See omnystudio.com/listener for privacy information.

The subject of this episode had two bits of good fortune. First, to have parents who were mad about the bush. Second, to find his passion – wildlife photography – outrageously early, in his case even before he started attending school. Those twin pieces of fortune brought 16 year old Skye to the 2019 World Economic Forum annual meeting, via the unlikely route as the under 18 winner of the 45,000 entrant World Wildlife photographer competition. After placing some years ago, he has a dry run until the 2018 competition where his patiently acquired pic of a leopard he had followed for eight years scooped the top prize for this young Durbanite. The WEF invited him to Davos and his engagement alongside iconic Jane Goodall made him the youngest speaker at this year’s event. At around the same age as Grade 11 learner Skye Meaker is now, I had a life transforming experience sparked by an overseas trip. So was keen to discover whether the exposure to something as overwhelming as Davos would change him…we kick off th

JOHANNESBURG — There's some good news and bad news for Saffers when it comes to the latest Global Talent Competitiveness Index released at Davos this week. For starters, South Africa as a country has been slipping dramatically in recent years when it comes to attracting and creating competitive human resources. (SA this year ranks 71, sliding from its position in the 50s in years gone by.) But there are some rays of hope including local companies ranking high in terms of upskilling staff as well as Joburg and Cape Town making the top global 114 cities when it comes to talent competitiveness. The only problem here is that both cities rank on the lower end of this particular table - Joburg (107), Cape Town (112). And as the co-author of the index Bruno Lanvin explains in this interview, SA as a whole can rank much better if it undergoes serious labour reforms. - Gareth van Zyl See omnystudio.com/listener for privacy information.

Two and a half years ago when the Sasol directorate appointed joint chief executives, there was a fair amount of discomfort among investment analysts. Having two captains has proven challenging for many similarly sized businesses. But Bongani Nqwababa and Steve Cornell have proved to be sparkling exceptions to that apparent rule. How so? I’ve watched them here in Davos. They are genuinely good friends, which surely helps. But it looks to me that the true catalyst is their humility. They seem to have conquered the ego expansion which too often accompanies those promoted to elevated positions. Click on the link to the audio to hear the conversation. See omnystudio.com/listener for privacy information.

In this wide ranging interview from the deeply thoughtful Investec co-founder Stephen Koseff, he covers Brexit, geopolitics, the purpose of Davos, South Africa's promised rebound and his onw involvement in the recovery process. Koseff puts the overall cost of the nine years of Jacob Zuma's misrule at a staggering trillion rand - a direct loss to the fiscus of almost R300bn. Always a fascinating conversation, Koseff says it has been tougher than anticipated to "get the flywheel turning" but it is starting to move. The key ingredient, he says, is hope. A must listen. See omnystudio.com/listener for privacy information.

An oft heard refrain from those cynics of South Africa's clean-up is that nobody has been brought to account. That might be a consequence of the sheer scale of the corruption that took place in the past nine years - and the near daily uncovering of additional malfeasance. But even these pessimists will pause after listening to Transnet's corruption-fighting chairman Popo Molefe. A shining example of public service, Molefe has been brought back into the headlines in recent years after standing firm in fighting deep corruption in the country's rail and ports parastatal. He is resolute. The process of excising the cancer of corruption has begun. And even though it will take time, he and the new Transnet board and management are resolute. As Molefe reminds us, SA now has an extradition treaty with the UAE so even the Guptas aren't safe. See omnystudio.com/listener for privacy information.