Wednesday, 16 November 2011
JSE lifted by sentiment on Europe
JSE lifted by sentiment on Europe: The JSE reversed its morning losses by noon on Wednesday as sentiment surrounding the eurozone, and Italy in particular, improved.
OBAMA : No quick fix for Europe Troubles
PER FIN 24.COM
"Canberra - US President Barack Obama on Wednesday said he was deeply concerned about the eurozone crisis and market turmoil would continue until Europe has a concrete plan to deal with its sovereign debt woes.
Obama's comments added to a chorus of non-European policymakers urging greater action to deal with the two-year-old crisis, and came as equity markets fell in response to a sell-off in eurozone bond markets.
"Until we put in place a concrete plan and structure that sends a clear signal to the markets that Europe is standing behind the euro and will do what it takes, we are going to continue to see the kinds of market turmoil we saw," Obama told a news conference in the Australian capital of Canberra.
Asian shares fell on Wednesday and the euro slipped to its lowest levels in a month against the dollar and the yen.
Investors have been spooked by signs the crisis is spreading from heavily indebted Greece and Italy to the region's core nations, with yield spreads on Austrian, Belgian and French 10-year bonds over Germany Bunds hitting euro-era highs on Tuesday.
Obama said that whilst there had been progress in putting together unity governments in Italy and Greece, Europe still faced a "problem of political will" rather than a technical problem.
"We're going to continue to advise European leaders on what options we think would meet the threshold where markets would settle down. It is going to require some tough decisions on their part," he said.
"Ultimately, what they are going to need is a firewall that sends a clear signal - we stand behind the European project, we stand behind the euro."
Canada's Finance Minister Jim Flaherty, speaking earlier on Wednesday in Japan, urged European leaders to put "meat on the bones" of plans to stem the contagion.
"Until European countries build firewalls for their financial system, I think we will continue to see market volatility," he said. "Some of us are frustrated by the failure of clear and decisive action in Europe."
China's central bank also voiced its concern, saying in its quarterly monetary policy report posted on its website that the European debt crisis was a prime risk to the global economy.
"The sovereign debt problem in the eurozone will cause continuous turbulence in financial markets, and, if the crisis spreads to core member countries, it may cause global systematic risks," the report said.
Bank of Japan Governor Masaaki Shirakawa told a news conference there were signs the European crisis was starting to affect emerging economies through trade and other channels.
"Dollar funding at European banks has also worsened and there are signs of dollar assets being squeezed, or so-called deleveraging," he said "
"Canberra - US President Barack Obama on Wednesday said he was deeply concerned about the eurozone crisis and market turmoil would continue until Europe has a concrete plan to deal with its sovereign debt woes.
Obama's comments added to a chorus of non-European policymakers urging greater action to deal with the two-year-old crisis, and came as equity markets fell in response to a sell-off in eurozone bond markets.
"Until we put in place a concrete plan and structure that sends a clear signal to the markets that Europe is standing behind the euro and will do what it takes, we are going to continue to see the kinds of market turmoil we saw," Obama told a news conference in the Australian capital of Canberra.
Asian shares fell on Wednesday and the euro slipped to its lowest levels in a month against the dollar and the yen.
Investors have been spooked by signs the crisis is spreading from heavily indebted Greece and Italy to the region's core nations, with yield spreads on Austrian, Belgian and French 10-year bonds over Germany Bunds hitting euro-era highs on Tuesday.
Obama said that whilst there had been progress in putting together unity governments in Italy and Greece, Europe still faced a "problem of political will" rather than a technical problem.
"We're going to continue to advise European leaders on what options we think would meet the threshold where markets would settle down. It is going to require some tough decisions on their part," he said.
"Ultimately, what they are going to need is a firewall that sends a clear signal - we stand behind the European project, we stand behind the euro."
Canada's Finance Minister Jim Flaherty, speaking earlier on Wednesday in Japan, urged European leaders to put "meat on the bones" of plans to stem the contagion.
"Until European countries build firewalls for their financial system, I think we will continue to see market volatility," he said. "Some of us are frustrated by the failure of clear and decisive action in Europe."
China's central bank also voiced its concern, saying in its quarterly monetary policy report posted on its website that the European debt crisis was a prime risk to the global economy.
"The sovereign debt problem in the eurozone will cause continuous turbulence in financial markets, and, if the crisis spreads to core member countries, it may cause global systematic risks," the report said.
Bank of Japan Governor Masaaki Shirakawa told a news conference there were signs the European crisis was starting to affect emerging economies through trade and other channels.
"Dollar funding at European banks has also worsened and there are signs of dollar assets being squeezed, or so-called deleveraging," he said "
Tuesday, 15 November 2011
Rand weakens on eurozone concerns
Per : @fin24
"Johannesburg - The rand weakened in midday trade, off 1%, and in line with the single currency as fears over the state of the eurozone continued to drive sentiment.
At 11:52 local time, the rand was bid at 8.0859 to the dollar from its previous close of 7.9998. It was bid at 10.9455 to the euro from 10.9031 before, and at 12.8201 against sterling from 12.7169 previously.
The euro was at $1.3541 from $1.3623 previously.
A local dealer said: "We are seeing a similar play to yesterday with renewed concerns over the eurozone. We all know that this is not going to blow away any time soon so expect the rand to fluctuate accordingly."
He put resistance against the dollar at 8.12-8.13.
Standard Bank analysts said in a morning note that the rand had fallen victim to the eurozone crisis.
"The rand weakened sharply yesterday as risk aversion returned. The yield demanded on Italian bonds rose to a eurozone high at an auction yesterday."
Clearly, investors remained concerned about Italy's ability to get its debt under control despite the recent change in this country's leadership.
"Earlier in the day, the rand had firmed after Japan's encouraging GDP data; this economy has returned to growth for the first time in four quarters. However, this rally was short-lived."
Standard Bank said while the rand might enjoy further bouts of strength into year-end, events in Europe were still calling the shots.
"We therefore believe that the rand will weaken to our year-end target of R8.20/USD."
Meanwhile Dow Jones Newswires noted scepticism from Commerzbank. "There is some GDP data as well as the ZEW economic expectations data due for publication in Europe today. Disappointing results might make it more difficult to contain the debt crisis and as a result might put further strain on the markets while positive surprises are unlikely to change the picture."
Germany's ZEW was expected to show that investors and analysts became less optimistic in November, with the current conditions index seen falling to 32.0 from October's 38.4. While this was significantly off the recent peak of 91.5 in May, it was still in positive territory, said Rabobank.
In the US, retail sales, producer price index and Empire State manufacturing were expected at 13:30 GMT, while business inventories were due out at 15:00 GMT. German GDP rose 0.5% in the third quarter, compared with the second quarter, in line with estimates. Meanwhile, French GDP expanded 0.4% from the second quarter, also as expected. "
STEVEN:
If one looks at above it is good as it shielded our market against the negative Europe Markets most down 1.5% and shaky.
The rand's fairer value in my understanding should be at about 8.15 to the $.
It seem to flitz back and forward between 7.88 & 8.15 in a two week bracket.
Until the euro crisis is sorted we in for the sideways movement !!
Hold on, it has to settle soon. The indicators are very Bullish which is good.
"Johannesburg - The rand weakened in midday trade, off 1%, and in line with the single currency as fears over the state of the eurozone continued to drive sentiment.
At 11:52 local time, the rand was bid at 8.0859 to the dollar from its previous close of 7.9998. It was bid at 10.9455 to the euro from 10.9031 before, and at 12.8201 against sterling from 12.7169 previously.
The euro was at $1.3541 from $1.3623 previously.
A local dealer said: "We are seeing a similar play to yesterday with renewed concerns over the eurozone. We all know that this is not going to blow away any time soon so expect the rand to fluctuate accordingly."
He put resistance against the dollar at 8.12-8.13.
Standard Bank analysts said in a morning note that the rand had fallen victim to the eurozone crisis.
"The rand weakened sharply yesterday as risk aversion returned. The yield demanded on Italian bonds rose to a eurozone high at an auction yesterday."
Clearly, investors remained concerned about Italy's ability to get its debt under control despite the recent change in this country's leadership.
"Earlier in the day, the rand had firmed after Japan's encouraging GDP data; this economy has returned to growth for the first time in four quarters. However, this rally was short-lived."
Standard Bank said while the rand might enjoy further bouts of strength into year-end, events in Europe were still calling the shots.
"We therefore believe that the rand will weaken to our year-end target of R8.20/USD."
Meanwhile Dow Jones Newswires noted scepticism from Commerzbank. "There is some GDP data as well as the ZEW economic expectations data due for publication in Europe today. Disappointing results might make it more difficult to contain the debt crisis and as a result might put further strain on the markets while positive surprises are unlikely to change the picture."
Germany's ZEW was expected to show that investors and analysts became less optimistic in November, with the current conditions index seen falling to 32.0 from October's 38.4. While this was significantly off the recent peak of 91.5 in May, it was still in positive territory, said Rabobank.
In the US, retail sales, producer price index and Empire State manufacturing were expected at 13:30 GMT, while business inventories were due out at 15:00 GMT. German GDP rose 0.5% in the third quarter, compared with the second quarter, in line with estimates. Meanwhile, French GDP expanded 0.4% from the second quarter, also as expected. "
STEVEN:
If one looks at above it is good as it shielded our market against the negative Europe Markets most down 1.5% and shaky.
The rand's fairer value in my understanding should be at about 8.15 to the $.
It seem to flitz back and forward between 7.88 & 8.15 in a two week bracket.
Until the euro crisis is sorted we in for the sideways movement !!
Hold on, it has to settle soon. The indicators are very Bullish which is good.
Monday, 14 November 2011
Eskom Secures more green energy funding
Per FIN 24.com :
"Power utility Eskom signed a loan for about R1.9bn that will finance the building of South Africa’s largest solar energy and wind power generation projects.
Signing the guarantee, Finance Minister Pravin Gordhan said South Africa had “a huge comparative advantage” when it came to solar power generation.
Public Enterprises Minister Malusi Gigaba said the loan was an indication that there was “great investor confidence in South Africa".
The 40-year loan, signed in Pretoria, will help finance the building of a 100 megawatt solar power plant near Upington and the 100 MW Sere wind farm near Vredendal in the Western Cape.
The 200 MW capacity of the two power plants could generate enough electricity to power 200 000 homes.
Eskom chief executive Brian Dames said the wind farm would be completed by 2013 and the the solar farm a year later in 2014.
Repayments on the loan will start in 10 years. It is expected to be paid off over the following 30 years at an interest rate of 0.25 (CORR) percent annually on the amounts dispersed.
The loan was approved by the World Bank on October 27 and comes from its clean technology fund.
Eskom has already received more than R700m from the African Development Bank for the two projects, which will be the largest in South Africa.
The loans are being guaranteed by the South African government.
It is hoped that each project will reduce South Africa’s carbon emissions by five million tonnes a year. "
A good read, seems like going greener is the way to look at things good start !!
"Power utility Eskom signed a loan for about R1.9bn that will finance the building of South Africa’s largest solar energy and wind power generation projects.
Signing the guarantee, Finance Minister Pravin Gordhan said South Africa had “a huge comparative advantage” when it came to solar power generation.
Public Enterprises Minister Malusi Gigaba said the loan was an indication that there was “great investor confidence in South Africa".
The 40-year loan, signed in Pretoria, will help finance the building of a 100 megawatt solar power plant near Upington and the 100 MW Sere wind farm near Vredendal in the Western Cape.
The 200 MW capacity of the two power plants could generate enough electricity to power 200 000 homes.
Eskom chief executive Brian Dames said the wind farm would be completed by 2013 and the the solar farm a year later in 2014.
Repayments on the loan will start in 10 years. It is expected to be paid off over the following 30 years at an interest rate of 0.25 (CORR) percent annually on the amounts dispersed.
The loan was approved by the World Bank on October 27 and comes from its clean technology fund.
Eskom has already received more than R700m from the African Development Bank for the two projects, which will be the largest in South Africa.
The loans are being guaranteed by the South African government.
It is hoped that each project will reduce South Africa’s carbon emissions by five million tonnes a year. "
A good read, seems like going greener is the way to look at things good start !!
Taking the Eish out of doing a VAT Application with SARS.
All business's who provide a Vatable Service of over R1 000 000 per Anum need to register for VAT.
Also importers who import goods into SA and want to claim back the VAT on the goods imported need to apply to be a VAT vendor to claim the input VAT.
Remember VAT on imports is not only charged at 14% input & can be greater depending on the goods imported.
So to benefit from that one should register.
The application process is quite involved and one should get a person who deals with this to handle it for you. SARS have made the process very transparent and involved to ensure not fraud & corruption.
It will be Money well spent to get it done correctly.
Before doing the application the entity must be registered for Income Tax.
Below find a list of what is required for the various entities :
The important issue is :
Registration for VAT is area restricted and therefore you will be required to present yourself in person to the Branch office where the business is situated for validation of information. Only applications which is presented in person by the individual / legal representative vendor / authorised
registered tax practitioner will be accepted. All other applications will be rejected.
Please note all the above or one will have problems with the registration.
One will then have problems as the documents will be out of date and one will have to start the process again from scratch.
Need help contact me :
Steven Morris Chartered Accountant (SA)
3 Bickley Road
Sea Point
Cape Town
8005
E-mail : steven@global.co.za
Also importers who import goods into SA and want to claim back the VAT on the goods imported need to apply to be a VAT vendor to claim the input VAT.
Remember VAT on imports is not only charged at 14% input & can be greater depending on the goods imported.
So to benefit from that one should register.
The application process is quite involved and one should get a person who deals with this to handle it for you. SARS have made the process very transparent and involved to ensure not fraud & corruption.
It will be Money well spent to get it done correctly.
Before doing the application the entity must be registered for Income Tax.
Below find a list of what is required for the various entities :
- Individual Copy of the identity document of the individual
- Copy of the identity documents of the 2 most senior members / directors / shareholders / trustees
- Partnership Copy of the identity documents of the 2 most senior partners of the partnership
- Close Corporation / Company / Trust : Copy of certificate of incorporation
- Association not for Gain / Welfare Copy of constitution / Organisation / Club : Copy of Constitution
- Letter of Authority : If Application is presented by registered Tax Practioner
- Copies of bank statements for the past three months but not older than one month from application
- Copy of financial information listed as source in part four to determine value of tax able supplies (no cashflow projections will be accepted)
- Recent copy of the Business Municipal account
- Recent copy of the Residential Municipal account of individual, partner or representative vendor
- Company / Trust fund VAT 12 1( Application for category E) if tax period is selected to be category E due to the main activity
- Cancelled Cheque of original letter from Banker
- Copy of ID or passport of Rep Taxpayer
- Business Municipal Account or Residential Municipal Account of Rep Tax payer for other entities.
- Copies of the bank statement not older then 3 months
- Copy of Financial info to show vatable supplies.
The important issue is :
Registration for VAT is area restricted and therefore you will be required to present yourself in person to the Branch office where the business is situated for validation of information. Only applications which is presented in person by the individual / legal representative vendor / authorised
registered tax practitioner will be accepted. All other applications will be rejected.
Please note all the above or one will have problems with the registration.
One will then have problems as the documents will be out of date and one will have to start the process again from scratch.
Need help contact me :
Steven Morris Chartered Accountant (SA)
3 Bickley Road
Sea Point
Cape Town
8005
Mobile :+27 83 943 1858
Facsimile : 0866 712 498E-mail : steven@global.co.za
Friday, 11 November 2011
Further to my story on Oppenheimers I read this !!
I came across this article on fin 24.com
A good read from a knowledgeable South African.
I can't dismiss this, unlikely but far from Impossible !!
"A senior South African business figure totally dismissed concerns about the nationalisation of mines in South Africa on Thursday, soon after the ANC suspended a key proponent of the idea.
Well-known mining executive Boddy Godsell said the odds of the mines being nationalised were as remote as those of the Tea Party in the United States being able to abolish the US Federal Reserve.
"The youth league of the ANC has developed some unrealistic and unimplementable answers to some absolutely vital questions," said Godsell, the former chief executive of AngloGold Ashanti and a key member of South Africa's National Planning Commission.
The ANC on Thursday suspended youth wing leader JU JU, one of the leading proponents of the mine nationalisation idea, for five years, accusing him of causing a rift within the party.
"The centre of gravity in the ANC is not there... To do it with compensation, you'd be talking about trillions of dollars, which the South African government doesn't have," said Godsell.
"And to do it without compensation, you need to amend our Bill of Rights, for which you need a 75% majority in the South African parliament, and I can see absolutely no chance of that majority being achieved."
South Africa is one of the world's top platinum and gold producers and Malema's calls for nationalisation of the mines to reduce poverty and inequality have rattled investors both within and outside Africa's largest economy.
Godsell said the extent of poverty, unemployment and inequality in South Africa is unconscionable, but the answers being put forward by Malema and his supporters are untenable.
"It is not possible to build a properly cohesive society with these levels of economic exclusion, so that something needs to be done, to me, is absolutely clear," said Godsell, who nonetheless remains optimistic about the growth prospects of both South Africa and the whole continent.
Godsell noted that for the last decade-and-a-half Africa has recorded the highest continental growth rate in the world, admittedly from a low base. This should only improve, helped by mining, infrastructure spending and investment in a still small energy sector.
"In the next decade, I'd imagine that African growth rates as a whole are going to be 2 percentage points higher than developed country growth rates. And in the better countries in Africa... growth rates will be as much as 4 percentage points above average growth rates in America, Europe or Japan," he said.
"The burgeoning middle class in Africa is also going to be an important driver of demand. Investment follows demand - it seldom anticipates it."
Highlighting details from a report to be released by South Africa's planning commission on Friday, Godsell said the country is taking the necessary action to curb rampant unemployment.
REF : FIN 24
"In the long term, what South Africa needs over the next 20 years is growth at about 5%, and it could then reduce its unemployment rate from about 25% now to 6% by 2030," he said.
A good read from a knowledgeable South African.
I can't dismiss this, unlikely but far from Impossible !!
"A senior South African business figure totally dismissed concerns about the nationalisation of mines in South Africa on Thursday, soon after the ANC suspended a key proponent of the idea.
Well-known mining executive Boddy Godsell said the odds of the mines being nationalised were as remote as those of the Tea Party in the United States being able to abolish the US Federal Reserve.
"The youth league of the ANC has developed some unrealistic and unimplementable answers to some absolutely vital questions," said Godsell, the former chief executive of AngloGold Ashanti and a key member of South Africa's National Planning Commission.
The ANC on Thursday suspended youth wing leader JU JU, one of the leading proponents of the mine nationalisation idea, for five years, accusing him of causing a rift within the party.
"The centre of gravity in the ANC is not there... To do it with compensation, you'd be talking about trillions of dollars, which the South African government doesn't have," said Godsell.
"And to do it without compensation, you need to amend our Bill of Rights, for which you need a 75% majority in the South African parliament, and I can see absolutely no chance of that majority being achieved."
South Africa is one of the world's top platinum and gold producers and Malema's calls for nationalisation of the mines to reduce poverty and inequality have rattled investors both within and outside Africa's largest economy.
Godsell said the extent of poverty, unemployment and inequality in South Africa is unconscionable, but the answers being put forward by Malema and his supporters are untenable.
"It is not possible to build a properly cohesive society with these levels of economic exclusion, so that something needs to be done, to me, is absolutely clear," said Godsell, who nonetheless remains optimistic about the growth prospects of both South Africa and the whole continent.
Godsell noted that for the last decade-and-a-half Africa has recorded the highest continental growth rate in the world, admittedly from a low base. This should only improve, helped by mining, infrastructure spending and investment in a still small energy sector.
"In the next decade, I'd imagine that African growth rates as a whole are going to be 2 percentage points higher than developed country growth rates. And in the better countries in Africa... growth rates will be as much as 4 percentage points above average growth rates in America, Europe or Japan," he said.
"The burgeoning middle class in Africa is also going to be an important driver of demand. Investment follows demand - it seldom anticipates it."
Highlighting details from a report to be released by South Africa's planning commission on Friday, Godsell said the country is taking the necessary action to curb rampant unemployment.
REF : FIN 24
"In the long term, what South Africa needs over the next 20 years is growth at about 5%, and it could then reduce its unemployment rate from about 25% now to 6% by 2030," he said.
Thursday, 10 November 2011
SA stocks, rand cheer Malema suspension
SA stocks, rand cheer Malema suspension: The JSE extended gains and the rand rose after news of the suspension of youth league leader Julius Malema, who has unnerved investors with his drive to nationalise mines.
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