The JSE All
Share index is heading for its greatest monthly loss in two years. All of this
weakness, however, happened in the first week of June and since then despite a
steady stream of events which in normal circumstances should see sellers
outnumber buyers the index has held up. As ever, the story is much more
complicated with only a few sectors and indeed shares with special situations being
responsible for almost all of the upside. By and large SA business is not in a
happy place as shown by General Retail sector being down nearly 10% in 2017 so
far.
Recently
Argentina manged to borrow USD 2.75 billion on which it will pay lenders 7.125%
pa interest. The catch is that the capital will be repaid only in 100 years’
time. Famously Argentina has a long history of forgetting to repay creditors.
But who is going to be around in 2117 to ask for their money back?
Today is the first
ever Asteroid Day which wants to raise our awareness about protecting Earth
from an asteroid impact. Just what we could all do to prevent a chunk of rock crashing
into our planet and changing our lifestyles is not explained. Probably not very
much. Similarly, we all seem powerless to save our beloved country which has already
been hit by an object which is indifferent to its citizen’s fears and needs. Almost
every day another jaw-dropping expose of theft and corruption is revealed and neither
we, nor the institutions we expect to protect us, do anything.
This week the
OUTA lobbying outfit published a lengthy evidence list for crimes perpetrated
by the leadership. They too hope that there is something someone can do to get
Number One to relinquish the presidency. Frankly, it’s doubtful that JZ will go
anywhere until he wants to and more importantly until he has arranged a succession
plan that will keep state money flowing in the right direction. Which is
towards him, his family and of course his chums. JZ has several times agreed
that he will fix any corruption or mismanagement problem if he would be presented
with evidence of his wrongdoing. This is a breathtakingly insouciant statement
which illustrates his utter contempt and dismissive attitude not only towards
the ever-growing investigation industry but also to the few brave officials
inside his own administration and judiciary. Even the Constitutional Court
appears to be sliding into irrelevancy. The Big Man of the nation is answerable
to no one.
Today the
ruling party will be holding a Policy Conference. The organisers have
instructed that "Delegates must refrain from any behaviour which would
bring the ANC or conference into disrepute. This includes singing of derogatory
songs against a comrade‚ leader and alliance partners or guests. No one should
distribute‚ wear or display any material that is deemed to be divisive".
Interestingly there is no prohibition of bad behaviour towards other citizens
who don’t support that party. In the meantime, it will be interesting if any
delegate raises the question of how the National Health Insurance scheme will be
funded. The R256 billion per annum cost projection is based on 3.5% economic growth
and doesn’t appear to include anything for the thieving vultures who will
quickly collect when sums like that are mentioned. Just don’t get sick anyone.
Please.
Durban is not
a city for the lazy. There’s always packs of folk running, cycling, swimming or
paddling to, from and through it. This weekend it will be horses doing the work;
but to judge from reports of the preparations for the “July”, racegoers are going
to be sluicing and browsing at championship standards too. Perhaps the very
satisfactory series win by the ‘bokke will get fans back to the interminable
and baffling Super rugby tournament which begins its second session this weekend.
For many though, it has become a boring event devoid of much local interest. The
Tour de France and Wimbledon however will keep the TV on for weeks to come with
the odd peek over at the cricket tests to see if the Proteas have found the
plot they keep on losing.
In the
meantime, please keep watching the sky for incoming rocks.
James
Greener
Friday 30th
June 2017
