Once again the markets were supposed to be poised for a speech by
President Obama in which he would reveal solutions to problems. This time it
was a lack of jobs and even in the unlikely event that any bureaucracy can
create jobs by other than standing back and letting private individuals start
businesses, the speech had no lasting or visible impact on markets. The 10th
anniversary of that terrible atrocity in the USA may be having a greater effect
as folk are nervous that there are many crazies out there who would like to
seek infamy by doing something stupid today.
It was another week where many companies revealed and promised good
and even excellent earnings growth numbers. FirstRand, the JSE’s second largest
bank indicated that its earnings should be more than double last year’s. The
nation and the Reserve Bank’s bank supervisory department can be rightly proud
that the sector survived the global crisis so well and appears to be ready and
able to survive the next one which seems imminent.
Down here in our particular kingdom the cost of berthing a
containership in the harbour is causing alarm. Sea traffic is allegedly looking
for alternative ports because the harbour costs here are claimed to be among
the highest in the world. Now instead of getting the harbourmaster to make a
few calls and assemble some facts and come to a decision, the dread hand of
delegation has appeared with the call for tenders to “[develop] a pricing
strategy and determine charges to be implemented for services and facilities
offered by … Ports Authority.” I detect
a hugely expensive contract involving international travel over 3 months and a
report which says nothing unwanted. After all there are more than 20 ships
sitting out in the roadstead right now waiting for a berth.
There has been a conference this week where one of the topics was
about broad-band access to the internet. It was saddening that many voices were
raised in favour of improving things in a slow and controlled (i.e. regulated)
manner allegedly so as to ensure that all sorts of spurious goals will be met.
Like ensuring that people who live in the sticks get exactly the same service
as those who live in a city. The communications industry is moving and changing
so fast that a near-monopoly part state-owned business like Telkom will never
be able to catch up. And of course it does not want to. The response of the
puzzled and frightened executives and politicians to demands that we join the
21st century will to appoint commissions and avoid letting the
market work.
A long defunct and derelict US satellite is falling back to
earth. As much as 500kg of this thing might survive the re-entry into the
atmosphere but NASA has stated that the chance of being hit by a piece of this
space junk is extremely small. Nevertheless the quoted odds of 1 in 3200 are
either hopelessly wrong or worth a bet. Winning the lottery is 5000 times less
likely. I must look out my hard hat.
The Rugby World Cup is going to do terrible things for productivity.
The car park at the local Mall was almost deserted during the opening ceremony
this morning. Beer and boerie roll suppliers are going to be about the only
beneficiaries of the excitement of the next few weeks. The trade unions did
manage to get a bit of publicity from the news that not every replica ‘bok
rugby jersey had been made in SA and wanted to pick a fight over the matter. No
one was much interested as pretty much every consumer item that we buy today regrettably
is made in China.
On Sunday we will be having leeks on toast for brunch. Go ‘bokke.
James Greener
9th September 2011
