Rational Perspective

JOHANNESBURG — Local baby carrier business Ubuntu Baba has been in the headlines the last few days after Woolworths was exposed for copying its products. It all started with a blog post that Ubuntu Baba founder, Shannon McLaughlin, wrote on 7 January in which she explained, in-depth, as to how Woolworths had started stocking products strikingly similar in design and concept to hers. That post struck a nerve on social media amid Woolworths having been previously exposed for displaying similar copycat behaviour in the past with the likes of Frankies as well as another hummingbird design fiasco. Despite the challenging situation that McLaughlin has faced in the last few weeks, Woolworths has been forced to back down and engage in discussions with her. In this interview, McLaughlin gives us the latest update as well as the backstory to what happened. - Gareth van Zyl See omnystudio.com/listener for privacy information.

IN TODAY'S GLOBAL HEADLINES In the wake of the fastest growth in earnings in eight years, America’s biggest public companies are set to report significantly slower growth for the December quarter. Also in the US, after sending mixed messages ahead of and since his 2016 election victory, president Donald Trump has joined the global search for skilled workers. SADC, the 16 nation bloc led by South Africa, and the 12 countries of International Conference of the Great Lakes have called for a recount of votes cast in last month’s DRC presidential election. In other South African-related news, president Cyril Ramaphosa is today making an unscheduled working visit to Maputo to meet Mozambiquan counterpart Filipe Nyusi.  See omnystudio.com/listener for privacy information.

The world’s fourth largest motor manufacturer certainly bucked an otherwise gloomy trend on Friday, giving investors news that sent its share price soaring. By close of trade the GM stock had gained 7% to over $37, taking it back to the where it traded before September’s market meltdown. Of the 24 Wall Street firms that cover GM, 13 now rate the stock a buy and two have it overweight in their portfolios. There is only a single firm which recommends selling. Their average target for the stock 12 months hence is $44.14 – an uplift of around 19% on the current price. If Ms Barra keeps delivering messages like Friday’s, that may even prove conservative. I’ve been getting a good feeling about the investability of GM stock, despite the obvious headwinds of the move to electric cars kills off the internal combustion engine and enormous efficiencies on the horizon as self-driving vehicles threaten to cut the car fleet. But if there is one major manufacturer which could buck the depressing trend, it’s Mary Barra’s o

DUBLIN – As the US government shutdown drags on to its 22nd day, making it the country’s longest ever, US President Donald Trump is focusing on issues at home. His decision to skip this year’s World Economic Forum meeting in Davos underscores the challenges he faces as the new Democratic-led House of Representatives flexes its muscles. Trump’s domestic problems have serious implications for the rest of the world as the impact of his trade war with China grows. With Trump focused on home, the prospects for a resolution to the trade war will diminish, hurting China and other emerging markets. In this episode, Felicity Duncan and Alec Hogg discuss Davos, Trump, the shutdown, and the global economy. See omnystudio.com/listener for privacy information.

IN TODAY’S GLOBAL HEADLINES… Ford EMEA is to overhaul its operations with actions including retrenchments, plant closures and stopping the production of low profit models. US president Donald Trump won’t be going to Davos after all as pressure rises against him on numerous fronts. Australian house prices fell just over 6% in 2018, the worst result in 35 years and threatening the country's 27 year recession-free record. In South African-related news, the share price of global luxury goods group Richemont rose more than 2% this morning on the release of strong results for the December quarter. See omnystudio.com/listener for privacy information.

IN TODAY’S GLOBAL HEADLINES… Venezuelan president Nicolas Maduro is to be sworn in for a fresh six year term this morning following his victory in an election last May.  Amazon’s founder and CEO Jeff Bezos, is to divorce after 25 years of marriage casting a shadow over the ownership structure of the world’s most valuable company. German digital bank N26, brainchild of 33 year old Valentin Stalf, is now officially Europe’s most valuable fintech startup. In South African-related news, the country’s positioning as a responsible actor in its region is in the global spotlight over posponed release of the DRC election results. See omnystudio.com/listener for privacy information.

IN TODAY’S GLOBAL HEADLINES… US president Donald Trump held his first oval office television broadcast in almost two years last night in an attempt to gather popular support for a proposed $5bn wall along the country’s southern border.  Trump’s personality is also a major influence on critical trade talks in Beijing which have just ended after an unscheduled third day of meetings between US and Chinese officials. Computer hardware and services company IBM yesterday unveiled the world’s first commercially produced Quantum Computer at the Consumer Electronic Show in Las Vegas. In South African-related news, one of the central figures in Mozambique’s imaginatively named and rapidly developing Tuna Bond scandal was yesterday denied bail by the Kempton Park magistrates court. See omnystudio.com/listener for privacy information.

Eurasia Group’s founder and chief executive Ian Bremmer tends to leave an impression. And owning his own powerful business gives him the rare luxury of being paid to tell uber truths that most other pundits steer away from.   I met him at an RMB conference in Cape Town two years ago, when he explained how his interactions with confidants of then newly elected US President Donald Trump left no doubt that a trade war was coming, it was only a matter of when.  In Trump’s mind, he said, China had to be stopped before it took America’s crown. And best to do it sooner than later. That was an extreme view back then. Trump was seen as all bluster and no follow through. But as we well know, Bremmer was right on the money. Such is his reputation that Bloomberg’s senior commentator Tom Keene has made it something of a tradition to kick off his own year by interviewing Bremmer on what he sees for the year ahead. He did so again this week and later caught up with Bremmer's colleague, research strategy head Meredith Sum

IN TODAY’S GLOBAL HEADLINES… Apple’s global smartphone rival Samsung came up even shorter in the three months to end December, indicating this morning its revenues fell 11% and operating income was down by a quarter. Japanese New Economy venture capital group Softbank has cancelled a proposed $16bn deal with shared office space provider WeWork. A recent rebound in the share price of online retailing giant Amazon has made it the most valuable listed company on earth. In South African-related news, Xstrata founder Mick Davis, who has been occupying himself of late as the CEO of Britain’s ruling Conservative Party, is quietly expanding his interest in mining. See omnystudio.com/listener for privacy information.

Bestselling author Simon Sinek's 18 minute presentation on how great leaders inspire action has been watched by more than 42m people. That makes it one of the three most popular Ted Talks of all time. The author of two highly acclaimed books has an army of social media followers. In this fascinating interview from 2016 we discover how Sinek spent his first five years in South Africa and still has family in the country - so not surprisingly closely followed Nelson Mandela whom he rates one of the most inspirational leaders of all time. - Alec Hogg  See omnystudio.com/listener for privacy information.

IN TODAY’S GLOBAL HEADLINES… Trade officials from the US are meeting their Chinese counterparts in Beijing today in an attempt to hammer out an agreement that will reverse escalating trade war tensions. A report today from Canada’s Scotiabank says gold exchange traded funds increased their holdings of the metal by 2.25m ounces during December, an increase of around 5%.  It’s been a rough start to the year for three African dictators. A lengthy article in today’s Financial Times of London says the economic boom in Ireland has resulted in the country looking to SA to meet a growing skills shortage.  See omnystudio.com/listener for privacy information.

Global markets had a volatile week, plunging to the depths on the back of bad news from Apple before rebounding on the Fed's reassurances. It looks like market uncertainty is back and bigger than ever, which is a scary prospect for investors used to relative calm. In this episode, Alec Hogg and Felicity Duncan dig into the Apple story and look at the reality behind the numbers. They explore why markets reacted so badly to the news and discuss what investors should do to manage anxiety in a choppy market environment. They also look ahead at what the new year holds for the JSE, asking if the pundits are right in saying that investors should stay away and look offshore. See omnystudio.com/listener for privacy information.

The fallout from yesterday’s sales shortfall announcement by Apple Inc shook US markets last night. Anglo American subsidiary De Beers has moved aggressively into synthetic diamonds, dropping prices of the laboratory-made products in a bet that consumers will be prepared to pay premiums for the mined natural stones. The chances of a no deal Brexit continue to escalate with over half Conservative Party MPs saying they prefer crashing out of the EU to Mrs May's plan. In South African related news, Mozambique’s fundraising scandal where an alleged $200m in kickbacks were paid on a $2bn loan, continues to grow.  See omnystudio.com/listener for privacy information.

Kicking off the new year with a fresh approach to political punditry with our London-based columnist Simon Lincoln Reader, an obsessive follower of politics in South Africa, the UK and the USA. In this episode, Simon explains how Trump's Wall was a Democratic idea; unpacks who really runs Corbyn's Labour Party; and tells us why turbulence will grow ahead of South Africa's general election        See omnystudio.com/listener for privacy information.

In today’s global business headlines…. Computer and smartphone giant Apple Inc’s share price dropped 7% in post market trade after it disclosed iPhone sales for the December quarter will be significantly below its official forecast of just two months ago. The share price of another US market darling, electric car maker Tesla, also dropped sharply after news that disappointed investors.  The UK is also reaping the benefit of incentivising lower carbon emissions and a longstanding campaign to reduce energy wastage. In South African related news, Maritzburg university graduate Mark Bristow features prominently in global media this morning.  See omnystudio.com/listener for privacy information.

In global business headlines: The gold price had a great finish to 2018 with bullion extending its winning streak to five days, edging towards $1 300, highest in six months. Brazil’s first right wing president in a generation, Jair Bolsonaro, promised to attack corruption and urged for unity in his inaugural speech yesterday. South African stocks ended 2018 down 11%, their worst performance in a decade. In other South African related news, leading entrepreneur Ronnie Lubner has passed away. He was 84 and succumbed last week after a short illness. See omnystudio.com/listener for privacy information.

In today’s global business headlines…. Analysis by automotive sector intelligence group Jato Dynamics shows the internal combustion engine is running out of steam much faster than expected. In related news, the world’s leading electric car maker Tesla landed a massive coup with Friday’s appointment of Oracle Group co-founder and executive chairman Larry Ellison to its board of directors. Another leading American entrepreneur, Michael Dell, is back in the news as the computer company that carries his name relisted on the New York Stock Exchange. In South African related news, the share price of Chinese internet giant Tencent Holdings continues to improve this morning, taking its two month recovery to 25% on more good news. See omnystudio.com/listener for privacy information.

In today’s global headlines…. Extreme recent volatility on Wall Street continued last night with share prices falling sharply before a powerful rally lifted them to the best close in a turbulent week.  While Brexit has frightened off some investors, French infrastructure operator Vinci regards it differently, describing today’s acquisition of just over 50% of London’s Gatwick airport as a unique opportunity.  The global swing away from left wing political parties has now hit Spain with the Spanish Socialist Worker’s Party, getting a drubbing in the key regional elections.  South African-born Elon Musk is back in the headlines after being sued for defamation by the British cave diver whose efforts rescued 12 Thai boys earlier this year.  See omnystudio.com/listener for privacy information.

In today’s global headlines…. After a bruising month, US stocks posted their best day in a decade yesterday as the three major indices rose over 5% with the Dow up more than 1 000 points for the first time in history.  Total UK retail footfall was down 3% year-on-year yesterday, traditionally the busiest shopping day of the British year, but retail tourists arrived in their planeloads.  Private investors lost more than $8bn through their purchase of new secondary crypto currencies last year. In South African-related news, the 14-month old challenger stock exchange A2X moves up a level today with the debut of Naspers shares See omnystudio.com/listener for privacy information.

In this interview, BizNews editor and publisher Alec Hogg asks the Head of EMEA Credit Research at Debtwire, Nicholas Smith-Saville, about the company's perspective on Eskom's debt woes. Debtwire is well-known for its analysis of debt markets worldwide and in-depth credit analysis. As a result, Smith-Saville provides a much needed global perspective on Eskom's financial conundrum. Interestingly, Smith-Saville says it's not all bad news for as long as Eskom can start to get itself on the right trajectory and avoid becoming a target for political exploitation. - Gareth van Zyl See omnystudio.com/listener for privacy information.