By this time next week the State Budget will have been presented. It is very worrying that someone has shown the politicians what comes after billion. This week’s headline reported that they are now going to spend a trillion. Rands I think it is. But it is all just waffle in lieu of actually doing anything and spending a hundred to repair a school desk or a hospital bed or something else that they have promised.
Another number this week was 33335. This is the new all time high for the All Share index set on Monday. Once achieved, however, everyone lost heart and the rest of the week has been spent in retreat.
Also retreating appear to be some of the world’s rulers for life who are eyeing the hordes that have pitched up to demand a change of regime. Again I am delighted to see that the new age of instantaneous and mobile communication is causing the elected to fear their electors. It is increasingly difficult to lie about what is happening when people can contradict you with a picture emailed to a website in a heartbeat. It is telling that a spokesman for the ruling party here at home angrily denied any similarity between what is happening up north and some very violent demonstrations about the government’s broken promises of a better life for all. The pictures suggest he is mistaken.
An excellent leader in Business Day asked what it is that the government expects of business. Indeed the haranguing of businesses and the people who run them is almost a national disease. Every government department – and many related organisations - have no hesitation in demanding something. Whether it is money or information or a job for their clueless nephew, the most annoying claim is on time. Even the JSE got into the act by warning listed companies that they need to adopt yet another accounting standard or else. I doubt the Budget will reduce any burdens on the nation’s desperately few and dwindling wealth creators.
The African Exploration Mining and Finance Corporation will be launching its first mine within a month. Leaving aside the question of how one actually launches a hole in the ground, it is sad to see that this state-owned company has already adopted a typical government secrecy attitude. They have declined to say what or where they will be mining. If, as they say, they already have the mining rights to the deposit, what possible “strategic” reason could there be for not telling us what it is. It will be interesting to see if they ever transform from tax eater to tax payer. Anyway rest assured, much of the work in the forthcoming month will go into planning the launch party.
A desperate pensioner (not a client) has called to complain that Anglo’s dividend announced today is derisory. Their decision to pay just 40 US cents out of earnings of 413 US cents makes one wonder which of these numbers tells the real story. Adding further to her woes is that like all these London listed shares, payment date is way in the future on only 28th April. Perhaps by then the rand will be a bit weaker, but still an annual dividend of about 470 SA cents on a price of 37650 cps is just 1.2%pa yield. Not generous. This may be a symptom of the often headlined “regulatory uncertainty” of mining in SA that is perhaps prompting management to keep a lot aside for a rainy day – preferably in another country and currency.
Unless the weather changes it will be brutal playing rugby at Kings Park tomorrow. February in Durban is too early for our winter sport. I have adjusted the TV so as to be able to watch from the pool. I trust the sight of Captain Smith being ferried around the Dhaka stadium is not an omen for SA once again getting carried out at the semis.
James Greener
18th Februray 2011
