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Finweek - English

Finweek - English 5/7/2020

Finweek is South Africa’s leading financial weekly magazine focusing on investment. With its brisk, creative and authoritative analysis of business and investment issues, it’s an essential business tool in the daily battle for competitive advantage. Today's business decision-makers have to cope with increased pressure on their time and are expected, more than ever before, to succeed in the face of stiffer competition. Finweek provides relevant information in quick bytes, along with award-winning investment advice.

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South Africa
Kieli:
English
Julkaisija:
Media 24 Ltd
Jakeluväli:
Biweekly
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25 Numerot

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2 min
from the editor

while South Africa is now officially in its sixth week of lockdown, it’s been nearly six months since the coronavirus that has swept across the globe first made headlines. As the world confronts the reality of this virus, a parlance has emerged to describe the events that are unfolding. Particularly when it comes to making sense of this pandemic and the world it will leave us with. Unprecedented times: Often coupled with references to the 1918 Spanish flu and the Great Depression at the start of the 1930s. Uncertainty: A world in lockdown, with no clear roadmap as to when it will end. “In the midst of crisis there is opportunity”: Liberally paraphrased quote often attributed to Albert Einstein, which will hopefully help lead us to a new normal (the other much-used…

5 min
investment for the long run

keynes’ famous quip that “in the long run, we’re all dead” has been misunderstood for almost a century. Many have interpreted it to mean that he cared little about the future. But that would be a mistake. He used it to explain how the quantity theory of money was subject to what we today call the Lucas critique: Printing more money would also affect money demand. The point being that whatever we do today with monetary policy – like expanding the money supply – might not have the desired consequences, due to how consumers respond. This holds true when thinking about the economic response to the current pandemic. Print more money, and banks may be less willing to grant loans for fear of future inflation. Borrow more to cover a fiscal…

4 min
the urgency of land reform finalisation

south Africa’s land reform policy debate is so chaotic even experts on the topic appear to be confused, unsure where this merry-go-round circus is going. The Covid-19 pandemic has given us a small reprieve, but the show will no doubt continue in the not too distant future. Seasoned investors use the word “uncertainty” to describe chaos and confusion that threaten market stability. In this case, large-scale, capital-intensive agriculture could be in the firing line if a drawn-out land debate leads to persistent uncertainty as investors struggle to decipher the future. Uncertainty is dangerous because it kills investor confidence and eventually the economy. During chaotic times, the wise thing to do is to defer to history as the best teacher. After placing its faith in the “willing buyer, willing seller” (WBWS) land reform policy…

5 min
in brief

“AND THEN I SEE THE DISINFECTANT WHERE IT KNOCKS IT OUT IN A MINUTE. ONE MINUTE. AND IS THERE A WAY WE CAN DO SOMETHING LIKE THAT, BY INJECTION INSIDE OR ALMOST A CLEANING?” – US President Donald Trump has been criticised by the medical community after saying US government research indicated the coronavirus might be treated by injecting disinfectant into the body. Pulmonologist Dr Vin Gupta told NBC News that “this notion of injecting or ingesting any type of cleansing product into the body is irresponsible and it’s dangerous”, and that “it’s a common method that people utilise when they want to kill themselves”. The US Centers for Disease Control and Prevention’s weekly morbidity and mortality report stated that “calls to poison centres increased sharply at the beginning of March…

4 min
social initiative with economic spin-off

after getting fed up with the poor state of the Black River, which flows past Observatory and parts of the Cape Flats on the Cape Peninsula, Georgia McTaggart in 2018 launched Help Up – an initiative aimed at cleaning river pathways while creating jobs for the unemployed. McTaggart, who is an efficiencies consultant, started by self-funding the initiative and now relies on crowdfunding to finance clean-up operations across the peninsula. “People pledge R150 and more on the BackaBuddy platform and we then use the funds to pay unemployed people, who help with the clean-up,” she says. In November last year, after seeing the initiative’s potential to change lives, she registered Help Up as a non-profit company (NPC) to increase the organisation’s ability to draw funding from corporates and thus offering them tax…

4 min
a gem that remains hidden

it is not often that retail investors speak out at the presentations of companies in which they are shareholders. But that is what happened in April to Gemfields, the Johannesburg- and London-listed coloured gemstone mining and marketing firm. “You look after us and we’ll look after the share price,” an investor instructed management during question time after having absorbed the disappointing news that Gemfields’ 2019 financial year would not conclude with a dividend. Gemfields CEO Sean Gilbertson and his right-hand executive, David Lovett, chief financial officer, had earlier in the presentation mused in disbelieving tones at the poor performance of the firm’s share over the last 12 months. Better than the firm’s rivals in the diamond space, and other gemstone miners, but far below what they expected. (The share was once at…