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Finweek - English

Finweek - English 11/26/2020

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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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Country:
South Africa
Language:
English
Publisher:
Media 24 Ltd
Frequency:
Biweekly
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25 Issues

in this issue

2 min.
from the editor

my husband and I are currently in the process of moving to a new house. Like many people who’ve been lucky enough to work from home during this pandemic, we have spent most of our time tucked away and have also had many hours to assess our finances and needs. Being able to own one’s own property is a privilege that I don’t want to diminish. But there are a lot of factors that – with the gift of hindsight – one really needs to consider before taking the leap. And, I will admit, there are frustrations that we have experienced that have, at times, made us regret taking on the responsibility of homeowners. In any event, we are downscaling considerably. And so, I have spent nights and weekends packing. As is…

5 min.
risk and our consumption choices

by the end of October, South Africa’s Covid-19 case fatality rate – confirmed deaths divided by the number of confirmed cases – was 2.7%. This rate, of course, masks large differences by age. Globally, the case fatality rate of those younger than 10 is 0%; for those above 80, it is above 10%. Put differently: compared to someone in their 20s, babies are 9 times less likely to die; a 75- to 84-year old is, however, 8 times more likely to end up in hospital and 220 times more likely to die. These large differences in mortality risk allow economists to investigate a central question to discipline: to what extent does risk affect our behaviour? The homo economicus of first-year textbooks, in which consumers rationally maximise utility, has over the last…

2 min.
in brief

“I WILL ONLY STEP ASIDE IF I AM ASKED BY THE BRANCHES WHO VOTED [FOR] ME.” − Following his first court appearance for 21 charges of alleged corruption and fraud, ANC secretary-general Ace Magashule addressed a crowd of supporters, saying he will not be stepping down from the position because he was elected by the party’s branches at a conference. Magashule launched a defence, citing a political witch hunt against him. He also made threats to his detractors that he knew people’s corrupt secrets and would not reveal them until the opportune moment. Magashule was released on bail of R200 000. “We respect the choice of the American people.” – Chinese foreign ministry spokesman Wang Wenbin congratulated US president-elect Joe Biden and vice president-elect Kamala Harris, making the country one of the last…

2 min.
double take

THE GOOD The Covid-19 vaccine being developed by Pfizer and BioNTech prevented more than 90% of infections in a study of tens of thousands of volunteers, sparking new hope that vaccinations will provide a way out of the coronavirus pandemic. “The good message for mankind is that we now understand that Covid-19 can be prevented by a vaccine,” Uğur Şahin, BioNTech’s CEO, said after the announcement. The companies are the first drug makers to show successful data from a large-scale clinical trial of a coronavirus vaccine. The companies said they have so far found no serious safety concerns. Pfizer said it expects to produce up to 1.3bn doses of the vaccine in 2021 (also see p.22). THE BAD After a surprise decrease in the second quarter, the official unemployment rate rose in the…

5 min.
app unlocks investments for everyone

after landing his first corporate job in the research and development team of Discovery in 2015, Dr Thomas Brennan became increasingly aware of the barriers preventing South Africans from investing their money to build wealth, rather than leaving it in the bank where it doesn’t grow as quickly, due to inflation. He saw numerous financial advisers, but none lived up to his expectations. “Being a programmer specialising in machine learning, I would use the data they gave me to develop simulations of how their suggested investments would perform, including the ongoing fees. Most did not even bother to respond when I sent these simulations to them via email,” Brennan says. He was also disillusioned by the high fee structures, minimum investment requirements and the cumbersome application process, requiring the signing and filling…

5 min.
sibanye-stillwater’s masterstroke

the rehabilitation of the mining sector since the dark days of 2017 – when the industry had racked up a fifteenth straight year of underperformance – has been remarkable. It’s a recovery from overspend and subsequent chronic indebtedness no more clearly demonstrated than in gold. Gold mining firms falling under the radar of Canadian bank Scotiabank posted dividend increases averaging 70% since September. The average dividend yield for multi-asset senior and intermediate gold producers is now 2%, exceeding the S&P 500’s yield of 1.6%. The bank thinks that, at that yield, the gold producers would start to attract more generalist and income-focused investors. “In our view, the significant increases demonstrate to investors that gold producers have learned from mistakes of the past and are resolved to maintain capital discipline,” said Scotiabank. “They also…