Rational Radio

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

The Editor’s Desk: SA is finally cleaning up its NPA mess

After years of waiting, South Africa is finally seeing real action on the corruption clean-up front, starting with big news out of the NPA. Two top dogs at the National Prosecuting Authority have been given their walking papers after they were found unfit for office. Cleaning up the NPA is…

28 Apr 2019 16 min

Tshepo Mahloele: The great paradox of the PIC Commission

In June last year, feisty politician Bantu Holomisa launched a raft of sensational allegations against a trio of leading businessmen which were immediately lapped up by the media. As a result, Holomisa finds himself on the wrong end of a libel suit. But the UDM political party president’s colourful language…

27 Apr 2019 15 min

Flash Briefing: GEPF 'financially' sound; PP 'helping' Gordhan; AMCU on watch; Zuckerberg fortune rises

In today's business headlines:  The head of the Government Employees Pension Fund says the fund is financially sound and there is no need for an increase in contributions by employers. Public protector Busisiwe Mkhwebane says she is investigating Public Enterprises Minister Pravin Gordham to help him. The labour department is…

25 Apr 2019 3 min

Flash Briefing: Bidding war for Moz gas giant; PSG at 20% discount; Rand falls sharply; Life Healthcare slumps

Energy group Anadarko Petroleum, which owns huge tracts of gas reserves in Mozambique, has become the subject of a massive bidding war. The Jannie Mouton created investment company PSG announced solid financial results for the year to end February, disclosing recurring earnings per share up 9% and a 10% increase…

24 Apr 2019 4 min

Flash Briefing: US shares new high; Eskom OK - Gordhan; Son loses $130m on Bitcoin; Omnia rebounds

America’s S&P 500 and Nasdaq Composite indexes reached new all-time highs yesterday. South Africa’s state-owned power utility Eskom “isn’t on the brink of financial collapse” and the government has the problem “well under control,” according to Public Enterprises Minister Pravin Gordhan. The founder of Japan’s massive new-age focused venture capital…

23 Apr 2019 4 min

Flash Briefing: Tributes for Buzan; ZACP wants to gift SOEs; 3G ejects Kraft boss; US blocks Iranian oil

The United States yesterday ratcheted up its fight against Iran.  Tributes continue pouring in for the 76 year old inventor of mind mapping, Tony Buzan, who passed away earlier this month after heart attack. The Capitalist Party of South Africa, ZACP, last night tabled a plan to hand over direct…

22 Apr 2019 4 min

Flash Briefing: Eskom sheds growth forecast; Sibanye strike over; 5G Apple; Juventus, NPN, TKG, CPI

In today's business headlines: The South African Reserve Bank says the damage done by state capture is worse than previously understood. South Africa’s Association of Mineworkers and Construction Union has agreed to end a five-month strike at Sibanye's gold mines. Apple could have a 5G iPhone ready to bring to…

17 Apr 2019 3 min

Flash Briefing: SARB independence "insurance"; Markets will "melt-up"; EOH, MTN, TKG, DSY, INT

In Washington yesterday, South African Reserve Bank governor Lesetja Kganyago re-iterated the argument for an independent central bank, describing it as a shield against bad political leadership. The chief executive of the world’s biggest asset manager predicts global stock markets are poised for what he calls a “melt-up” as signs…

16 Apr 2019 4 min