The financial and commodity markets seem to have decided that the great successes achieved by the world’s policemen in foiling what would have been an appalling act of terror is a good thing. Perhaps only the travel business will see any drop in turnover. Since your laptop may now not accompany you to the executive lounge and will likely end up making a different journey than your own, business trips become even more unappealing. Moreover, spending much of your beach holiday on the shores of the airport terminal will discourage the other kind of travellers as well. Petrol at north of seven rand per litre has one reaching for the bicycle pump. But then, I suppose, someone will want to test you for steroids. Oh dear. Best stay at home and look for shares to buy and sell.
In the last few days, central bankers in England and South Africa have raised interest rates while in the US they decided that the price of money was just right and did nothing. Even if these remote decisions are an important factor in driving share prices, turnover on the JSE has reflected a four-day week and the start of some school holidays. Excitement and involvement levels are modest as the market extends the current spell of low volatility.
Despite the attraction of keynote speaker Minister Stofile at the Esselen Park Conference Centre next week, I am afraid I shall not be applying to the National Heritage Council for my opportunity “to contribute to the heritage plan of football in preparation for the 2010 World cup Soccer legacy”. Whatever this nonsense might mean; it is another clear example of plans to board the gravy train. However, I have now at last seen a credible way in which the ordinary citizens of South Africa are likely to benefit from the boondoggle that the 2010 FIFA world cup is threatening to become. In recognition of the fact that seat prices at the event in Germany this year were way out of the price range of the average local football fan, a plan is being hatched. Very cheap or even free tickets will be offered here on the southern tip to “the poor” in four years time. What fantastic news. Without even needing the example set by the Namibian sports executive who sold his own free tickets this year at a very satisfactory mark-up, “the poor” will doubtless immediately spot the possibilities offered by this plan. Once again, the market mechanism will triumph and money will flow in the proper direction.
Similar trust in the efficacy of markets is not, however, evident in the creation of the Jali Inquiry. These worthies have the task of seeing how and why the banks make money and then presumably suggesting ways in which they could stop doing so. Before starting work, every member of the inquiry board should be required to use their own money to buy a portfolio of listed banking shares. Then they should offer the portfolio as collateral to raise a bank loan, the proceeds of which must be placed in a fixed deposit at another smaller bank. I can think of no better or faster way to learn about the banking business.
Do we really need to suffer the sight of the legendary seamer Shaun Pollock bowling off-breaks? Please let him go home to spend quality time with his new family. Thanks for all the pleasure you have given us in the past Polly.
James Greener
11th August 2006
