Rational Radio

Flash Briefing: Richemont jumps on results; Aussies move Right; Personal Finance hits the Ivy League;

After being behind in the polls for two years, Australia’s conservative government won a surprise victory in Saturday’s elections, taken over the line voters in resource-rich districts. The share price of JSE heavyweight Richemont rose almost 5% after Friday morning’s release of its financial results to end March. Personal finance…

19 May 2019 4 min

The Editor’s Desk: Times are tough, but Ramaphosa is ready

Cyril Ramaphosa is in the driver’s seat, but the course he has to navigate is full of challenges. From Eskom to Makhanda, Ramaphosa faces a landscape marred by corruption, mismanagement, incompetence, and failure. How he and his team rise to these challenges will determine whether South Africa Inc sinks or…

18 May 2019 16 min

Flash Briefing: Eskom weighs down Moody's; SA bonds sidestep EM jinx; Cosatu wants cabinet cut; Anglo

In today's business headlines:  Moody’s outlook on South Africa more gloomy as it includes Eskom in its calculations. South Africa dodges the emerging market bond jinx. Investors are hoping for a streamlined Ramaphosa cabinet with Mboweni in charge of Finance. Cosatu wants Ramaphosa to cut the size of the Cabinet…

16 May 2019 4 min

Flash Briefing: Discovery #2 insurance brand globally; Capitec business banking green light; BAT's Twisp deal challenged; MSM, Netcare still falling

Innovative South African group Discovery has been rated as the world’s second strongest insurance brand. South African banking’s great disruptor, Capitec, was yesterday given the green light to acquire a ready-made vehicle to enter the business banking market. More action will play out at the Competition Tribunal today where two…

15 May 2019 4 min

Flash Briefing: Bitcoin jumps 33% in week; WhatsApp hacked; $2bn Roundup award; Discovery, Shoprite, Vodacom, Kumba, Pepkor.

One and a half billion people worldwide who use WhatsApp to make free phone calls are discovering it does come at a price. The share price of German chemicals group Bayer took another hit yesterday after a California court awarded $2bn in punitive damages to a couple claiming weed killer…

14 May 2019 4 min

Flash Briefing: Investors cheer SA election; Total bets $8.8bn more on Africa; Uber; Net1

Despite the South African ruling political party’s worst showing in a national election since 1994, global investors celebrated the ANC’s 57.5% victory as an improvement on the 54.5% it polled in the municipal elections three years ago. French oil major Total is doubling down on its African bet. It has…

12 May 2019 4 min

The Editor's Desk: Our big, fat election wrap-up

The election is over and the results are in. In this week's episode, Alec Hogg and Felicity Duncan discuss those results in detail. They look at the percentages and vote tallies, breaking down just what it all means for the DA, the ANC, and the EFF. They consider the market…

12 May 2019 19 min

Flash Briefing: Anglo selling last SA gold mine; RCL gains 18% in fortnight; Markets hit by US aggression.

Investors around the world took fright yesterday when the US seized a North Korean ship alleging it had been illegally transporting coal from president Kim Jong Un’s ostracised country in violation of US sanctions. South Africa’s national and provincial election dominated the local news yesterday with investors a little concerned…

9 May 2019 4 min

Flash Briefing: A nightmare trifecta for Steinhoff, Jooste; Massmart's price drop continues.

 Long delayed financial results for the year to end September 2017, released late on Tuesday, revealed that former Steinhoff CEO Markus Jooste voted himself R30m in bonuses which he banked just months before the group’s December 2017 meltdown.  Steinhoff’s restated financial results were dire, with a R65bn net loss causing…

8 May 2019 4 min

Flash Briefing: Massmart CEO leaving; Naspers drags JSE lower; Trump hits shares; Group 5 asset sales

Shares worldwide took a hit yesterday after an unexpected intensification in trade tensions between the US and China. The global softening of share prices had an impact in South Africa where dominant stock Naspers lost 3.5%, mirroring a 3% drop in the price of its major asset, Hong Kong-listed Tencent…

6 May 2019 4 min

The Editor’s Desk: A last look at what may happen this election

As Wednesday’s election draws near, everyone is talking about what the final tally will look like. In this week’s episode, Alec Hogg shares what he thinks the results may look like and what he’s been watching this election cycle. He shares his optimism about the DA’s on-the-ground campaign and the…

6 May 2019 16 min

Flash Briefing: Changes coming to Berkyville; New SAA flights to China; How word sees SA election; Majority support Trumponomics

There was another record turnout at Saturday’s Berkshire Hathaway AGM where chairman Warren Buffett (88) and his deputy Charlie Munger (95) answered five hours of questions from shareholders. Still in the US, president Donald Trump’s prospects for re-election in 2020 could be higher than most pundits are predicting. The South…

5 May 2019 3 min

BRK 2019 AGM Highlight: Why retirement funds should stay away from private equity

The Berkshire duo warm into this question from this shareholder, who is a manager at a Canadian public sector pension fund. He asked for their view on private equity investments - particularly for retirement funds like the one where he works. The Buffett and Munger response won't thrill the army…

5 May 2019 8 min

BRK 2019 AGM Highlight: Munger on Amazon purchase - we're trying to atone

Warren Buffett's favourite broadcaster, CNBC's Becky Quick, poses a question many shareholders are mulling - does Berkshire's purchase of Amazon.com shares signal a radical change in direction? Charlie Munger is at his caustic, self-deprecating best in his response. *This is one of the highlights from the five hours of Q&A…

5 May 2019 6 min

BRK 2019 AGM Highlight: Buffett addresses debate on Capitalism v Socialism

Warren Buffett describes himself as "a card carrying capitalist" primarily because of a belief the system which underpins its economy is responsible for the abundance of his homeland, the United States. In this highlight, he is quizzed about his other very public loyalty, as a supporter of the Democratic Party,…

5 May 2019 6 min

BRK 2019 AGM Highlight: Buffett's most fun investment

Some of the most interesting questions at the Berkshire AGM come from unusual quarters like 10 year old Brook who asked what was the most interesting or fun investment Warren and Charlie ever made. The responses are fascinating - and guaranteed to ensure you never again look at a game…

5 May 2019 3 min

Flash Briefing: Fossil jaw found in Tibet; Cyril's clean up claims 2 more; Tesla raise sparks shares

The best-read story on The Wall Street Journal sets out new clues on human evolution. A fossil jaw found in the Himalayan Highlands of Tibet has got scientists excited. South African President Cyril Ramaphosa’s anti-corruption drive has claimed another two scalps - National Laboratory Service Chief Executive Officer Joyce Mogale and…

2 May 2019 3 min

Flash Briefing: Caster loses legal battle; Malema wants your business; Apple drives Wall Street

South African Olympic champion Caster Semenya has lost a legal battle against rules to force her to take medicine to compete internationally. Julius Malema, leader of the Economic Freedom Fighters party has called for workers to be given shares in all strategic sectors within the economy, including the financial sector…

1 May 2019 2 min

Flash Briefing: JSE food producers perk up, mining stocks take a hit; Boeing drifts on safety deactivation

RCL and Pioneer Foods were among biggest gainers on the JSE on Monday. Mining stocks took a knock with Amplats dropping by nearly 6% with Implats not far behind. Mining analysts are concerned that a move by the government to deregister trade union AMCU could create chaos in the mining…

29 Apr 2019 2 min

Flash Briefing: SARS eyes Bosasa beneficiaries; AMCU fights back; Boeing turned safety features off; expats vote

ANC-leaders facing tax claims of income earned from Bosasa. This comes after the firing of two senior prosecutors implicated in bribes. AMCU is meeting the Labour Minister to discuss the government's threat to deregister the group. It has come to light that certain safety features on Boeing 737 Max jets…

28 Apr 2019 3 min