The folk at Wallmart must be astonished by the extreme diligence of the competition authorities who appear to be moving into areas way outside their usual remit in order to decide whether or not the world’s largest retailer should be allowed to sell cheap stuff to South Africans. Obviously many people are fearful of the retailer’s reputation. One of the existing local store chains has just with much fanfare launched a loyalty card. Excellent.
I am frequently embarrassed to find out just how many silly people there are making a living in my industry. It was reported that a piece of research revealed that the South African Volatility index increased by more than 50% during the second quarter of last year. Almost no one understands what this index measures and exactly no one knows what it implies for the future. Nevertheless, this (rather tardy) research by the so-called “Annuity Actuary” at a very large investment house, stated that: “… pensioners should hedge themselves against high inflation and volatile markets by using specialised investment tools to protect their retirement savings.” I do hope that he has been misquoted or at least his grandparents give him a good thrashing for trying to scare us old folk into spending money on stuff we don’t need. Naturally the “tools” he mentioned are designed and sold by his company. By the way, even cash investments provided positive returns after inflation last year.
Did you know that there are plans for countries from the southern tip to the Congo River to adopt a single currency by 2018? News of this horrifying idea surfaced recently when the SA contingent at least, made back-pedalling noises “in the light of sovereign debt crises in the European Monetary Union”. This is hardly even the best or biggest excuse for delaying such an exercise but anything that does so is to be supported and welcomed. It is well known that the Europeans have been obliged to turn a blind eye to egregious non-compliance with the membership standards of the euro for even some of their largest members, let alone the rats and mice now scuttling aboard. About the only financial standard that most countries at this end of the continent could all easily meet is that their leaderships can recognise money especially when it is in a private Swiss bank account.
The violent unravelling of power bases in many countries up north is very worrying and so far showing no signs of reaching a swift or peaceful conclusion. This will not be good for investment markets although the extent and duration of the bear’s reign is unknowable. Some small amusement can, however, be found in watching diplomats and bureaucrats – our own included – utterly failing to explain to a camera why they have agreed to try and depose and even harm someone who up until a few weeks ago was just about their best friend ever and a really decent and lovely chap who ran a model regime with contented citizens. The Chinese of course never bother to answer those kinds of questions and presumably feel that their arrival this week in Harare with a plane-load of dollars is all about their need for minerals and nothing to do with anyone else.
A three hour total power failure here at Ocean Towers today not only shut down the internet link threatening the timely publication of Tidemarks but also blanked the TV screen with the cricket in Dhaka. As you can see, normal service has been resumed and unless the Proteas provide another masterful display of snatching defeat from the jaws of victory all seems set for a good weekend. The Boat Race and at last some Formula 1 will be good and my doubt about the Twickenham venue for the Sharks match was totally misplaced. The ex-pats of both nations in London are delighted.
James Greener
25th March 2011
