At one point it looked as if we were going to suffer a worse than 3% decline for the All Share index in May. But now the JSE has just been invaded by bulls. Buyers are chasing after shares apparently confident that the economy is improving and order books are filling up. The index is back over 32 000 and running. But there are a few days of the month left and we all know that anything can happen.
It is noticeable that the Swiss Franc strengthened all week and the gold price continues to perform well. These are “safe haven” assets, so clearly I am not alone in being unconvinced that everything is OK. The US’s second bout of so-called quantitative easing has ended with not much to boast about in terms of recovery. Will they try it again? Are we witnessing the beginning of the end of the universal power of the US dollar?
Nothing much has changed in Europe. This was the place causing us so much concern just a week ago. Except now Greece’s likely default on its debt will be called a “soft” restructure. At home, the election is over and every politician is claiming some sort of victory. The really good local news is the cabinet’s decision not to pursue a bid to host the Olympic Games down here on the southern tip. For possibly the first time in my life I find myself in agreement with a government decision. Mind you, after this week’s cold snap and snowfalls, some bright spark will probably start waffling about having a go for the winter Olympics.
The commission who have to find a solution to the problem of why the nation’s motorists are very unhappy with new toll roads in Gauteng have asked for more time to complete their task. They will have noted the poor timing of this week’s announcement that a compulsory third-party vehicle insurance scheme seems like a good idea. One concern about the scheme is how it will be funded. No prizes there. It will paid for by be the same vehicle owners whose rightful objections about the costs of travel have delayed the implementation of the tolls.
A rather interesting side to this topic lies in how the post office is going to handle the tens of thousands of toll invoices that will apparently need to be mailed to motorists, many of whom have no credible address. In the meantime the folk who put up the cash for building and upgrading these highways must be wondering if and when they will get their money back.
For many who once upon a time rode the rails with SAR & H, the name Cookhouse will conjure up memories of a long platform, a dusty dorp and an occasional supply of warm home brewed ginger beer and very little else. Apparently it is a rather breezy place (what happened to the Windy City – Port Elizabeth?) and has been selected as the site for a large farm of wind turbines. The nation is looking to this corner of the Eastern Cape to keep our kettles boiling and TVs running once the coal runs out. I am bursting with pride. And then just a few miles down the railway line there is an even smaller junction hamlet called Alicedale where brave and ambitious entrepreneurs have created a property boom. Astonishing.
I am not embarrassed to report that while thousands of people will be wondering why on earth they thought it would be a good idea to run uphill from here to Pietermaritzburg in the Comrades Marathon, I shall be on the couch supervising the Monaco GP. If it’s running you like, then the Sevens from Edinburgh should provide lots of that. And if I get desperate for even more exercise there’s the Man U versus Barca clash on Saturday night. I shall be worn out by Monday.
James Greener
27th May 2011
