Accounting and Financial Updates

AFRICAN BANK INVESTMENTS LTD - GROUP IS EXPECTED TO SHOW A BASIC LOSS OF ATLEAST R7.6 BLN AND HEADLINE LOSS OF AT LEAST R6.4 BLN FOR FULL YEAR

2014-08-06T10:36:00.002+02:00

Alerts History
• 06-Aug-2014 08:40 - AFRICAN BANK INVESTMENTS LTD ABLJ.J - QUARTERLY OPERATIONAL UPDATE FOR QUARTER ENDED 30 JUNE 2014, CHANGES TO BOARD, TRADING STATEMENT AND CAUTIONARY
• 06-Aug-2014 08:40 - AFRICAN BANK INVESTMENTS LTD ABLJ.J - DISBURSEMENTS FOR NINE MONTHS ENDED JUNE 2014 DECLINED TO R14.1 BLN, 20% LOWER THAN DISBURSEMENTS OF R17,7 BLN FOR COMPARABLE PERIOD
• 06-Aug-2014 08:41 - AFRICAN BANK INVESTMENTS LTD ABLJ.J - AVERAGE NET LOAN SIZE DECREASED TO R13 331 IN THIS QUARTER COMPARED WITH R13 868 FOR FIRST HALF OF 2014.
• 06-Aug-2014 08:41 - AFRICAN BANK INVESTMENTS LTD ABLJ.J - GROSS ADVANCES EXPERIENCED MUTED GROWTH OF 2% TO R60.1 BLN OVER NINE MONTHS SINCE SEPTEMBER 2013 WHILE PERFORMING LOANS HAVE DECREASED BY 3% TO R41.1 BLN OVER SAME PERIOD
• 06-Aug-2014 08:41 - AFRICAN BANK INVESTMENTS LTD ABLJ.J - OVERALL COLLECTIONS RUN RATE IN BANKING UNIT IS AT ABOUT R7 BLN PER QUARTER AT AN AVERAGE OF 65% OF INSTALMENTS RAISED ON ALL PERFORMING AND NPLS
• 06-Aug-2014 08:42 - AFRICAN BANK INVESTMENTS LTD ABLJ.J - LEON KIRKINIS, GROUP CHIEF EXECUTIVE OFFICER, MANAGING DIRECTOR OF AFRICAN BANK AND ONE OF FOUNDERS OF ABIL HAS RESIGNED WITH IMMEDIATE EFFECT
• 06-Aug-2014 08:42 - AFRICAN BANK INVESTMENTS LTD ABLJ.J - HAS APPOINTED PWCAS AN ADVISOR TO BOARD TO ASSIST IN RESTRUCTURING OF GROUP
• 06-Aug-2014 08:42 - AFRICAN BANK INVESTMENTS LTD ABLJ.J - OARD HAS APPOINTED NITHIA NALLIAH ( GROUP CHIEF FINANCIAL OFFICER) TO POSITION OF ACTING CHIEF EXECUTIVE OF ABIL AND MANAGING DIRECTOR OF AFRICAN BANK WITH IMMEDIATE EFFECT
• 06-Aug-2014 08:43 - AFRICAN BANK INVESTMENTS LTD ABLJ.J - EXPLORING OPTIONS TO ISOLATE AFRICAN BANK FROM IMPACT OF "BAD" BOOK WHICH IS ALSO EXPECTED TO HAVE DIRECT POSITIVE IMPACT ON MOODY'S RATING OF AFRICAN BANK
• 06-Aug-2014 08:43 - AFRICAN BANK INVESTMENTS LTD ABLJ.J - ABIL IS ALSO ACTIVELY EXPLORING OTHER ALTERNATIVES THAT WOULD REMOVE ANY FUTURE EXPOSURE OF ABIL TO ELLERINES.
• 06-Aug-2014 08:43 - AFRICAN BANK INVESTMENTS LTD ABLJ.J - BANKING UNIT IS EXPECTED TO SHOW A BASIC LOSS AND HEADLINE LOSS FOR SECOND HALF OF FINANCIAL YEAR 2014
• 06-Aug-2014 08:44 - AFRICAN BANK INVESTMENTS LTD ABLJ.J - GROUP IS EXPECTED TO SHOW A BASIC LOSS OF ATLEAST R7.6 BLN AND HEADLINE LOSS OF AT LEAST R6.4 BLN FOR FULL YEAR

REF : Thomson's Reuters

Kind Regards
Steven

Steven Morris CA (SA)

Mobile: 083 943 1858
Fax: 086 671 2498
E-Mail: steven@global.co.za
Website: www.stevenmorris.co.za

Investing off-shore: is it too late?

2014-01-17T10:51:00.001+02:00

Maybe not, but tread with caution ?

CAPE TOWN - In one of my last columns of 2013 I suggested the idea of buying gifts of unit trusts or ETFs for your children, grand-children or god-children instead of ‘wêreld-se-goed’ which are probably discarded in a corner by now. I must confess my children were not all that impressed with the idea, but one day they will see the light. Celma, one of our Moneyweb readers wondered whether it wouldn’t be a good idea to invest in an offshore unit trust or ETF, of which there are several. On the face of it, this suggestion makes eminent sense.

As reported elsewhere on Moneyweb by Patrick Cairns, eight of the top ten performing unit trusts in 2013 were off-shore focused. And the returns were nothing short of astonishing, as this article shows. But as we well know, past performance is no indication of future performance and there are many factors that investors need to bear in mind before they venture off-shore. The most obvious of these says Terence Craig, CIO at Element Investment Managers, is the double whammy gained from the surge in global equity markets coupled with the rand’s loss in value.

Global markets rose by 30% while the rand fell 22% in a year, enhancing the returns, as is evidenced by the charts below.

USD ZAR
MSCI NA 30.38% 61.80%
MSCI World 27.48% 58.19%
MSCI Europe 26.08% 56.47%
MSCI Japan 26.84% 56.20%
MSCI Asia x J 3.15% 28.00%
Source: Sanlam International Investments

01-Jan-13 01-Jan-14 Rand depreciation
Rand dollar 8.47 10.35 22.2%
Rand pound 13.73 17.38 26.6%
Rand euro 11.15 14.43 29.4%
Rand yen 0.0974 0.0997 2.4% S
ource: Sanlam International Investments

Only those who believe in the Easter Bunny will expect a repeat of these returns this year. But does this mean that those who have not invested offshore have missed the boat?

To make an assessment of whether now is still a good time to invest offshore one has to consider the fundamentals of the SA currency, global equity fundamentals and global economic fundamentals, says Thomas Schlebusch, CIO at Sanlam International Investments.

Although the rand is now undervalued, further weakening will depend on both internal and external factors. Internally much depends on how Finance Minister Pravin Gordhan addresses SA’s twin deficits and economic weakness. Politics will also influence volatility. South Africa is one of the five emerging market countries that Deutsche Bank says “could be a political landmine.” Thus the rand could be affected by volatility and populist rhetoric ahead of the coming election.

He adds that externally, further recovery in developed markets as well as tapering and concerns around growth and governance issues in emerging markets, could see emerging market currencies weaken further, albeit at a slower pace.

Global equity markets are just seven weeks away from the fifth anniversary of the bull market, a fact that is making investors cautious. Bull markets don’t usually last more than four years, says Paul Hansen who runs the Stanlib Global Equity Feeder Fund. But the conditions that often precede a bear market - excess demand, booming house prices and rising inflation triggering successive interest rate hikes – are also not in place, he says.

In fact, despite the surge in global equity markets, valuation multiples in developed markets are still below their long term averages. On a PE basis some regions are starting to look a bit stretched, says Schlebusch. This could be justified should higher earnings growth and dividends come through – particularly in the US. Europe could still see some positive surprise on the back of credit growth, while “Abenomics” could fuel further growth in Japan, he says.

Of course South Africa is not the only country where elections and short term politics feed into market volatility. So watch out for the US fiscal debt ceiling in February as well as mid-term elections. In Europe the reform momentum could be limited by parliamentary elections in May that could strengthen the position of populist fringe parties. In Scotland the independence election could create some volatility, while in the UK manoeuvring is likely to begin in advance of the 2015 general election.

To go offshore or not?

If you are cautious and have a three- to five-year investment horizon then it’s not too late to invest. Current market fundamentals suggest that equities will continue to outperform bonds and cash, while developed markets are favoured over emerging markets, says Schlebusch.

Also sounding a cautionary note was Element Investments’ Craig, who says that if you do invest offshore don’t switch out of another unit trust investment to do so. Investors who chop and change generally lose.

In this environment of rand weakness Hansen advises making monthly investments over a lump sum investment. If there is a sharp recovery in the rand or a pull back in offshore markets, then add to the investment.

As for which fund to choose, well that’s up to you. Old Mutual’s Global FTSE All World Index Feeder Fund is a good low cost option. Another is Satrix’s MSCI World Equity Feeder Fund – though that doesn’t have a track record yet. Deutche Bank’s offshore ETFs allow you to target specific parts of the world, if you prefer.

On the other hand with some areas of the market looking more expensive than others, the actively managed unit trusts are able to be more selective in their search for value. For instance Allan Gray’s Global Equity Fund has investments in Korea and in companies that will fall outside the radar of the big index trackers.

REF : Money Web - Author: Sasha Planting

Goldman's comment on emerging markets

2014-01-07T09:37:00.000+02:00

RPT-ANALYSIS-Fed's bitter medicine may help heal emerging markets - RTRS

2014-01-06T12:08:00.001+02:00

REF : By Sujata Rao "LONDON, Jan 3(Reuters) - If the medicine tastes bad, it's probably doing you good. Emerging economies might console themselves with that thought when they're suffering market cramps and haemorrhaging capital as the U.S. ends its monetary stimulus. The Federal Reserve will begin winding down, or tapering, its $85 billion-a-month money-printing programme this month, and emerging markets are seeing foreign investment pull back as a result. Last year, around $30 billion fled emerging equity and bond funds tracked by EPFR Global, provisional data shows. That is a blow, particularly for so-called deficit countries such as India or Turkey, which rely on foreign inflows to plug balance-of-payment gaps. The hope is the volatility induced by tapering will prod governments into reforms that ultimately reduce their sensitivity to shifts in global capital. "Policymakers are under pressure to implement reforms that were put on the back burner. Tapering is at least getting that narrative going," said Manik Narain, a strategist at UBS. "It's too early to position for it, but if we do get reform it could be the start of the rebirth of emerging markets." The Fed's $3.7 trillion expansion of its balance sheet was a mixed blessing for developing countries. Economic growth was pumped up by record-low borrowing costs and hundreds of billions of dollars in stock and bond market investments. But with so much easy money coming in, most governments got away with very little labour reform, privatisation, productivity gains or improvements to power and transport infrastructure. Progress in those areas will be key to attracting longer-term investment in manufacturing or services. WHAT REFORM? Past emerging-market crises - India in 1991, Mexico in 1994, Russia in 1998 and Turkey in 2001 - led to reforms that transformed those economies. Mexico and India are ahead of the game this time. Punished by investors for messy politics and current account deficits, India has begun to shrink budget deficits, cut some subsidies and raise energy tariffs. Expectations of reform after the Indian elections due in mid-2014 have helped the rupee INR= rise 11 percent from record lows in mid-2013. Energy-sector reform kept the Mexican peso's 2013 loss versus the dollar to 1.6 percent MXN=, compared with 10 percent-plus falls elsewhere in Latin America. But analysts say elections in a range of countries this year will discourage unpopular reforms for now. Any proposed changes in Russia or South Africa could be hampered by healthy prices for their oil and metals exports. "(The volatility) has spurred reform in some countries, but it's not EM-wide, that's for sure," said Christian Keller, head of EEMEA research at Barclays in London. Capital Economics told clients that policymakers had an opportunity to undertake supply-side reform, but it feared that "incumbent governments may try to boost re-election prospects by pushing ahead with populist spending plans, causing current account deficits to widen further." 'LET'S GET ON WITH IT' Considering all that possibility and taking a longer-term view, a quick end to money printing is probably not a bad thing Brazilian central bank governor Alexandre Tombini may have spoken for many emerging-market policymakers when he recently called U.S. policy "normalisation" a "net positive". The sooner the Fed withdrew its stimulus, the better, he said. That is unsurprising. The Fed's money printing gave central bankers headaches, by fuelling explosive spending and debt, property bubbles, price and currency inflation. As domestic interest rates were cut to levels well below what was justified by fundamentals, current account gaps blew out. Brazil's deficit, for instance, is running at 3.5 percent of annual economic output, up from 1 percent in September 2009. "Policymakers are focusing on short-term volatility, which means they are too busy to focus on longer-term issues. The later the tapering the bigger the imbalances," said David Hauner, head of EEMEA fixed income strategy and economics at Bank of America Merrill Lynch. As tapering progresses, markets will be able to better reward reformers and punish the laggards, by focusing more on country-specific factors, Hauner said, adding: "The best for emerging markets will be: 'let's get this done, have the U.S. Treasury yields repriced to 3.50 percent or so and let's move on'."

Asia Coal-Prices drop toward $85/T in holiday-thinned trade - RTRS

2014-01-03T14:19:00.003+02:00

China, Japan demand underpin coal prices But China's import demand may weaken in coming weeks Coal stocks at China's Qinhuangdao port rise By Fayen Wong SHANGHAI, Jan 3 (Reuters) - Australian thermal coal prices fell slightly in the past week as enquiries thinned over the holiday season, although demand from China and Japan helped keep prices above $85 a tonne. Australia's Newcastle weekly spot index fell to $85.63 per tonne on Friday from $86.30 on Dec. 28, data from the online trading platform globalCOAL showed. "The market was quieter last week because of holidays but demand in North Asia is pretty strong. The Chinese are buying and the Japanese are also in the market because their nuclear plants are down for maintenance," said a Singapore-based trader. In a sign of robust demand, shipments from Australia's Gladstone coal rose to a record 6.37 million tonnes in December, of which 2.08 million tonnes was shipped to China - up 16.6 percent from November. Thermal coal shipments from Newcastle port rose 11.6 percent to 3.85 million tonnes in the week to Dec. 23. However, import demand from China - the world's top coal consumer - may be hit in the coming weeks as rising stockpiles at ports and power plants, as well as shorter ship queues, suggest that a three-month long rally in domestic coal prices may start to weaken soon. Domestic coal prices at the top Qinhuangdao coal port in China rose to about 650-660 yuan ($110) per tonne on Dec. 30, from 635-645 yuan on Dec. 23, according to data by industry portal SXCOAL. "Stocks are building up at the power plants and Chinese miners are beginning to cut prices, so domestic prices might start to fall soon," said a Shanghai-based trader. Coal stocks at Qinhuangdao port rose to 5.407 million tonnes on Thursday, up from 4.63 million tonnes on Dec. 27, while ship queues waiting at the northern ports have also dropped, trade sources said. ($1 = 6.0506 Chinese yuan) ref: SPI www.spi.sanlam.co.za

ON THE RAND: 2014

2014-01-03T13:23:00.001+02:00

Sovereign rating downgrade for SA forecast in year ahead SOUTH Africa’s sovereign rating is likely to be downgraded one notch after the 2014 election, probably in the second half of the year, financial research provider Nomura said in a report released on Thursday on the country’s prospects this year. Rating agencies Standard & Poor’s and then Moody’s were the most likely to act in this regard, it said. Nomura emerging-markets analyst Peter Attard Montalto said in the report that South Africa would face the same vulnerabilities this year that in the past had placed it on watch. These included rising debt levels, a current account that was poorly funded and "sticky" around 5%-7% of gross domestic product (GDP), and the prospects of further labour market strife, in particular violent unrest. "We see government debt levels rising to 49% by 2016 as a result of only a slow decline of the fiscal deficit from 4.4% of GDP in 2013 to 4% in 2014 and then only to 3.8% in 2015," he said. "Lower growth assumptions are also in play. As such we expect further (although smaller than previously) shifts up in the government’s debt profile at the budget in February. "On fiscal policy, we think about 80% of the tax hikes that we expect after the election will be spent plugging the gap of yet larger public sector wage increases, as well as boosting the social wage in response to poor vote-take in the election. A decision not to pay down the deficit would be an alarm signal to the agencies." On the current account, Nomura forecast the full-year deficit to remain at about 5.8% of GDP, but as this would occur alongside equity outflows by foreigners and a stalling of bond inflows, it would worsen the funding of the balance of payments. This would be of concern to the credit rating agencies. But Mr Attard Montalto said a downgrade was widely expected by the market and might therefore only have a short-lived effect. He said he thought 2014 would be a volatile year for South African assets, though it was not likely to bring major upsets. Economic growth was expected to recover slowly and — based purely on domestic considerations — the risk of the rand reaching R11/$ or improving beyond R9/$ was low, he said. While labour risk was likely to be higher, the defining issue would be political risk, Mr Attard Montalto said. This did not refer to the upcoming general election, which could be a fairly normal event, he said, but to the possibility of the National Union of Metalworkers of South Africa breaking away from the Congress of South African Trade Unions, and a break-up of the ruling tripartite alliance later. Nevertheless, Mr Attard Montalto said the relative stability of South Africa’s vulnerabilities, risk and macro economy should stand it in good stead in the year ahead. This was an important consideration when looking at South African credit compared with Turkey, which had a less stable risk profile. "With the exception of load-shedding risk and May rate hikes, we think the market is still broadly pricing in the (South African) risk outlook for 2014 and beyond on domestic idiosyncrasies," he said. Nomura has forecast growth of 2.5% for this year compared with the consensus of about 2.8%, after growth of 1.8% in 2013. Consumption expenditure is likely to stall as interest rate hikes begin and credit growth to households continues to slow. Growth in consumption of only 3.5% is forecast for the year, after 2.8% in 2013, while public sector investment growth is expected to grind to a halt as capacity constraints are reached. Private sector investment should recover to about 5.6%, from 2.8%. Nomura has forecast a hike in interest rates in May as the beginning of a two percentage point cycle over 18 months as consumer price inflation rises on a weak rand. On the labour front, it believed that "one of the biggest events of the year" would be a co-ordinated strike by the Association of Mineworkers and Construction Union in the Rustenburg platinum sector. Industry was likely to continue to face electricity shortages, especially in the first quarter, while the recovery of the economy was likely to increase pressure throughout the year. The biggest downside risk to growth was an earlier than expected hard landing of the Chinese economy, and "a faster crunch in consumption due to rate hikes and banking credit extension slowdowns". However, the risk of a hard landing in China was much lower than perceptions of it last year. China could grow at a slightly stronger rate of 7.4%, compared with forecasts of 6.9% through much of 2013, Nomura said. REF : SPI DAILY E-MAIL www.spi.co.za

Glencore Xstrata Plays The Africa Card As It Size Up Anglo American

2013-11-22T11:17:00.002+02:00

Hi All Just read a great story !! href="http://www.forbes.com/sites/timtreadgold/2013/11/21/glencore-xstrata-plays-the-africa-card-as-it-size-up-anglo-american/">erican/ Enjoy Kind Regards Steven Steven Morris CA (SA) Mobile: 083 943 1858 Fax: 086 671 2498 E-Mail: steven@global.co.za Website: www.stevenmorris.co.za

Cypriots scramble to get money off island

2013-03-31T20:36:00.000+02:00

REF FT/com The hunt is on for many Cypriots to find ways to circumnavigate the new Draconian capital controls and get their money off the island. At least three people have attempted to flee the island in recent weeks with more than €200,000 in cash on their person, according to official sources. Kind Regards Steven Steven Morris CA (SA) Mobile: 083 943 1858 Fax: 086 671 2498 E-Mail: steven@global.co.za Website: www.stevenmorris.co.za

Calculator: How to spare Cyprus's small savers | Calculator | Breakingviews

2013-03-18T12:54:00.001+02:00

Calculator: How to spare Cyprus's small savers | Calculator | Breakingviews

Hugo Dixon: Cyprus deposit grab sets bad precedent | Columns | Breakingviews

2013-03-18T12:51:00.001+02:00

Hugo Dixon: Cyprus deposit grab sets bad precedent | Columns | Breakingviews

ScentAir South Africa- BDM / Sales & Marketing Mgr

2013-03-06T10:07:00.001+02:00

Allsense Southern Africa Trading (Pty) Ltd

A client of mine is expanding business nationally in South Africa
(I get not commision or fee for this)

They are hiring a new BDM / Sales and Marketing Manager for our South African biz.
Either full time or a consultant on a project / part time basis.
Based in Gauteng South Africa.

Do you know anyone with sales/client management experience ideally with contacts in retail, hospitality,
agency looking for their next big opportunity?

If so pls drop me their details and I will fwd on.

More info on the company on the website – www.scentair.co.za / www.scentair.com

Best Regards

Steven

Steven Morris CA (SA)

Mobile: 083 943 1858

Fax: 086 671 2498

E-Mail: steven@global.co.za

Website: www.stevenmorris.co.za

South African National Budget Alert:

2013-02-27T16:17:00.002+02:00

Sanlam National Budget Alert:
New income tax calculator is now available -

http://m.sanlam.co.za/tax-calculator?name=steve&number=%2B27839431858

BRIEF SA BUDGET SUMMARY

2013-02-27T14:39:00.002+02:00

BRIEF BUDGET SUMMARY

REF : SPI

"The budget and your wallet:

· Personal income tax relief of R7 billion. The marginal tax rate remains 40% and is applicable to an taxable income of more than R638 000 per annum.

· Sin taxes: A packet of 20 cigarettes will cost 60c more, a 750 ml bottle of liquor (spirits) R3.60 more, a 340 ml can of beer 7.5c more and a 340 ml can of cider will cost 7.3c more. A 750 ml bottle of wine will cost 15c more.

· The national fuel levy to increase by 22.5c/l and the Road Accident Fund Levy by 8c/l . The tax on fuel will therefore increase by 30.5c/l.

· Tax treatment of contributions to pension, retirement annuity and provident funds to be harmonised.

· Phased implementation of carbon tax proposed. It will be implemented from 1 January 2015 and amount to R120 per ton of CO2

· New PAYE proposals for individuals with more than one source of income.

· No increase in VAT

The budget and your business

· Reform of taxation on trusts to curtail its use to avoid tax. This includes aspects of local and offshore trusts, as well sa the use of trusts to avoid estate duty.

· Restricting debt to prevent the erosion of the tax base.

· A new Procurement Office has been established within National Treasury to restructure the government procurement system.

· New treatment for real estate investment funds.

· Hedge funds to fall under collective investment scheme legislation

· No details about the proposed mining tax

Budget facts and economic outlook:

· Total tax revenue for 2012/13 expected to be R16.3bn below estimate.

· Spending cuts of R10.4 bn over the next 3 years in response to tight fiscal conditions

· Budget deficit of 5.2% in 2012/13, 4.6% in 2013/14, 3.9% in 2014/15 and 3.1% in 2015/16.

· Total revenue: R887.8 bn in 2012/13, R985bn in 2013/14, R1091bn in 2014/15 and R1199bn in 2015/16.

· Total expenditure: R1055bn in 2012/13, R1149bn in 2013/14, R1244bn in 2014/15 and R1334bn in 2015/16

· The national treasury expects economic growth of 2.7% in 2013, 3.5% in 2014 and 3.8% in 2015.

· The national treasury expects CPI to remain within 3% and 6% over the next three years

Retirement and financial services reform announced in budget.

PRETORIA - If you save more, you will get more tax benefits. This is the message from the proposed retirement reform proposals by National Treasury contained in Wednesday’s Budget Review.

Times are tough. The economy is not growing as fast as some of the leading regions in the world and thus government revenue is under pressure with tax revenue for 2012/13 expected to be R16.3bn below the 2012 Budget estimate. In these tight circumstances finance minister Pravin Gordhan is urging South Africans to save more. South Africa is notorious for its low savings levels, which also makes investment difficult as foreign finances then need to be used as the local savings pool is not sufficient. And now the minister is trying to make it easier for South Africans to save.

A year after he indicated this need for South African households to save more, he today announced proposals for financial services and retirement reform in the 2013 Budget. These are still up for consultation as legislation will only be introduced later this year.

Although the implementation date for retirement savings reforms is not yet clear, the proposals include tax deductions for provident funds employee contributions and a uniform percentage of 27.5% of remuneration of taxable income (whichever one is greatest) for pension and provident fund contributions as well as retirement annuity contributions.

Previously employee contributions to pension funds and retirement annuities were tax deductible (7.5% of pensionable salary and 15% of non-pensionable salary respectively), while employer contributions to provident funds and pension funds were also tax deductible (depending on the contribution – a minimum of 10% up to 20%).

This was quite a complicated system with different allowed percentages and provident fund members who could not get a tax deduction on their own contribution. In his 2013 Budget Speech finance minister Pravin Gordhan announced that the tax treatment of all these funds will now be simplified and harmonized.

Detailed proposals for these changes is contained in a discussion document and after comments were received National Treasury highlights some of the changes that can come into existence on an implementation date in the future.

All employer contributions will now be seen as taxable fringe benefits in the hands of the individual, pushing up his or her remuneration or taxable income.

If you have a retirement annuity the current tax regime allows a tax deduction of up to 15% of your remuneration or taxable income. After the changes, this will be pushed up to 27.5% allowing you a quite sizeable tax deduction if you choose to contribute the maximum amount.

With the tax deduction benefit for provident fund members comes a change in the options available to you upon retirement. Previously provident fund members could take their whole benefit in a cash lump sum. Under the new proposals, if you are above 55 at the time of implementation, you will benefit from the tax deductions and will also be able to take the total benefit in a lump sum. If you are below 55, the amount you have in the fund at the date of implementation and that growth can be taken as a lump sum. You will get tax deductions on new contributions, but that amount and growth will now be dealt with the same as for pension funds or retirement annuities upon retirement where only a third can be taken as a lump sum and the rest has to be annuitized. To qualify for this benefit you have to stay in the provident fund that you were in at the time of implementation.

The mooted tax-preferred savings and investment accounts will be introduced in April 2015. All returns accrued within these accounts and any withdrawals will be exempt from tax. Previously there was a fear that with the advent of these accounts, Treasury would do away with tax-free interest-income annual thresholds. This is not going to happen, with these thresholds increasing one more time on 1 March 2013 from R33 000 to R34 500 for individuals over 65 and from R22 800 to R23 800 for those below 65. The thresholds will, however, not be adjusted for inflation in future years as the new tax-preferred savings and investment accounts will now be introduced. “The account would have an initial annual contribution limit of R30 000 and a lifetime limit of R500 000, to be increased regularly in line with inflation,” the 2013 Budget Review reads. Treasury is still in consultation with the financial services industry on how to implement the system and thus it is not clear whether existing savings and investment products would be able to be reclassified as tax-preferred. This could mean that there might be transfer costs involved if an individual wants to move his or her savings or investment over to these new vehicles.

In his speech Gordhan also addressed issues around the governance of retirement funds, announcing that governance reforms for these funds will be implemented, with measures in place to ensure trustees are trained once they have been appointed. “I intend to call up a conference of all trustees this year to take this process forward,” he said. “More competition will be promoted by allowing providers other than life offices to sell living annuities,” he added. "

German and French economies contract sharply

2013-02-14T10:22:00.002+02:00

"BERLIN/PARIS – Europe’s two largest economies, Germany and France, both shrank markedly in the last three months of 2012, suggesting the eurozone has slipped deeper into recession and throwing a first quarter recovery for the bloc into doubt.

The German economy contracted by 0.6 per cent on the quarter, official data showed on Thursday, its worst performance since the global financial crisis was raging in 2009. France’s 0.3 per cent fall was also slightly worse than expectations.

Worryingly for Berlin, it was export performance – the motor of its economy – that did most of the damage.

“In the final quarter of 2012 exports of goods declined significantly more than imports of goods,” the German statistics office said in a statement.

Back revisions to the French figures showed its output fell by 0.1 per cent in each of the first and second quarters of 2012, meaning the country has already experienced one bout of recession in the past 12 months" REF : FT.com Best Regards

Steven

Steven Morris CA (SA)

Mobile: 083 943 1858

Fax: 086 671 2498

E-Mail: steven@global.co.za

Website: www.stevenmorris.co.za

SARS : Provisional tax: Claim your medical tax credit

2013-02-13T15:22:00.000+02:00

Author: Steven Jones, editor of Moneyweb’s Tax Breaks

13 February 2013 06:59 Provisional tax: Claim your medical tax credit

"How to ensure that your medical tax credit is taken into account when completing your provisional tax return.

QUESTION:

Being a provisional taxpayer and with the 28/02 deadline approaching, I am not sure whether or not to include the credit in my estimate for taxable income, or ignore it, i.e. should I deduct the amount I arrive at from taxable income or not ? SARS of course auto completes the line for rebates in efiling, so unless they make provision in their efiling IRP6 form for a new line specifically for medical credits claimed, I assume that my taxable income estimate should take account of the medical credit calculated as per those over 65 years ?

ANSWER:

The new IPR6 form on e-filing incorporates a provision for the medical tax credit. Once you have entered your estimated taxable income, the system calculates the tax liability as well as the primary / secondary / tertiary rebates based on your age as at the end of February 2013.

In the next line immediately below the rebates is a space for you to enter the tax credit. This you need to calculate manually as follows:

R230 per month for the taxpayer

R230 per month for the first dependent

R154 for each additional dependent

In the example below, the taxpayer is a single member with no dependents, therefore the medical tax credit is R2 760 (R230 x 12).

Finally, as was the case in previous years, enter any employees' tax deducted and provisional tax paid, and the system then calculates what you owe SARS. If your employees' / provisional tax exceeds the tax liability, the amount payable will be nil. In terms of the new SARS rules, if there is no liability you are not required to submit an IRP6, but seeing as you have got this far, it makes no difference if you click "file" other than the fact that having filed the return may give you peace of mind.

Don't forget to keep a copy of your workings, in case you need to prove to SARS that your estimate was reasonable and within the parameters stipulated."

If you have any queries please contact me.

Best Regards

Steven

Steven Morris CA (SA)

Mobie : 083 943 1858

Fax: 086 671 2498

E-Mail: steven@global.co.za

Website: www.stevenmorris.co.za

Pope Benedict to step down, state news agency reports

2013-02-11T13:09:00.004+02:00

Pope Benedict XVI will “leave the pontificate” at the end of February, the Italian state news agency Ansa reported on Monday

Best Regards

Steven

Steven Morris CA (SA)

Mobile: 083 943 1858

Fax: 086 671 2498

E-Mail: steven@global.co.za

Website: www.stevenmorris.co.za

UPDATE 1-Iron ore at 2-week low as China demand slips, swaps down - RTRS

2012-11-20T11:55:00.001+02:00

REF : Thomsons Reuters
"20-Nov-2012 09:11

Miners offering 600,000 T at spot tenders on Tuesday

China Nov 1-10 daily steel output up 1.6 pct

(Updates rebar price)

By Manolo Serapio Jr

SINGAPORE, Nov 20 (Reuters) - Iron ore swaps dropped on Tuesday after spot prices hit two-week lows with demand from top buyer China losing steam after weeks of restocking, prompting miners to unload more cargoes onto the spot market before prices fall further.

Top miners Vale VALE5.SA, Rio Tinto RIO.AX RIO.L and BHP Billiton BHP.AX BLT.L are together offering around 600,000 tonnes of iron ore at spot tenders closing today, traders said, far more than usual volumes.

The December swap contract SGXIOSZ2 cleared by the Singapore Exchange edged down to $115.50 per tonne in early deals after falling more than a dollar to $115.72 on Monday, brokers said, reflecting market expectations spot prices will slip further.

Iron ore with 62 percent iron content IODBZ00-PLT fell 1.2 percent to $122.25 a tonne on Monday, its lowest since Nov. 6, according to data provider Platts.

Chinese steel mills had stocked up on iron ore over the past four weeks on hopes of positive policy signals from China's 18th party congress. The meeting, however, ended last week without any indications of economic stimulus, said a physical iron ore trader in Singapore.

"And all this time, steel consumption has remained fundamentally weak, so now that mills are well stocked with iron ore, there's no incentive to procure more spot cargoes," the trader said.

"I believe sentiment will start to weaken from this point onwards," he said, adding he expects the benchmark iron ore price to drop to $115 in the near term.

MEASURED RESTOCKING

Before prices fall further, miners are unloading cargoes in the spot market at separate tenders on Tuesday, which traders expect to be sold at less than previous deals.

Vale is offering 155,000 tonnes of 60.74-percent grade iron ore and another 90,000 tonnes of 63.63-percent grade material, traders said.

BHP Billiton is selling 100,000 tonnes of 63-percent Newman iron ore fines and 110,000 tonnes of 58-percent Yandi fines, while Rio Tinto's tender for 165,000 tonnes of 61-percent Pilbara fines is also closing today, traders said.

"I guess no one wants to miss the boat so everyone will try and sell a lot today," said Jamie Pearce, head of iron ore broking at SSY Futures.

Iron ore has rebounded from three-year lows below $87 in early September, but price gains have since been capped at just above $120, with any recovery in Chinese steel demand remaining fragile.

Shanghai rebar futures SRBcv1 closed up 0.2 percent at 3,552 yuan ($570) a tonne, after briefly hitting a fresh seven-week low of 3,539 yuan. It fell nearly 3 percent on Monday.

But after heavy destocking in recent months that had cut steel inventories at both traders and mills to 2-1/2-year lows, there is a potential for a restocking cycle in China's steel sector, Commonwealth Bank of Australia said in a note.

"Any restocking in the steel sector is likely to be measured, though, thanks to Chinese banks rationing credit in the steel and iron ore sector," the bank said.

China's average daily crude steel output rose 1.6 percent to 1.957 million tonnes for the first 10 days of November from the preceding period, industry data showed on Tuesday, as large mills lifted output on a recent rally in steel prices from September lows. (Full Story)

Shanghai rebar futures and iron ore indexes at 0704 GMT

Contract Last Change Pct Change

SHFE REBAR MAY3 3552 +8.00 +0.23

PLATTS 62 PCT INDEX 122.25 -1.50 -1.21

THE STEEL INDEX 62 PCT INDEX 122.8 +0.00 +0.00

METAL BULLETIN INDEX 121.8 -1.15 -0.94

Rebar in yuan/tonne

Index in dollars/tonne, show close for the previous trading day"

($1 = 6.2345 Chinese yuan)

(Editing by Miral Fahmy)

((manolo.serapio@thomsonreuters.com)(+65 6870 3884)(Reuters Messaging: manolo.serapio.reuters.com@reuters.net))

Eurozone falls back into recession

2012-11-15T12:32:00.001+02:00

Breaking News

FT on Line :

BREAKING NEWS

"The eurozone fell back into recession in the third quarter after the combined economy of the 17-member bloc contracted for the second consecutive month, dragged down by the Netherlands and peripheral nations.

Eurostat, the EU’s statistics office said the region’s economy contracted by 0.1 per cent in June to September, compared with the previous three months. This follows from a 0.2 per cnet decline in the second quarter.

The wider EU avoided recession after recording growth of 0.1 per cent in the third quarter, largely thanks to an Olympics-related boost in the UK.

Germany and France expanded in the third quarter, but the outlook remained bleak as the crisis engulfing the eurozone takes its toll on the region’s largest economies "

Tencent in rare profit miss, new forays shrink margins 0700.HK NPNJn.J - RTRS

2012-11-15T09:53:00.003+02:00

14-Nov-2012 13:53

Ref: Thomsons Reuters !!

"Q3 net profit up 32 pct on strength in online games

But falls short of market estimates as costs soar

Tencent shares up 72 pct this year as new forays welcomed

(Adds analyst quote)

By Melanie Lee

SHANGHAI, Nov 14 (Reuters) - Tencent Holdings 0700.HK, China's biggest online gaming and social networking company, surprised with a rare earnings miss, as efforts to expand into new businesses hit margins and the number of fee-paying users for its Internet services fell.

Searching for fresh revenue streams, Tencent has steadily expanded into e-commerce and online video but the highly competitive and cost-heavy nature of both these industries has meant that Tencent has had to spend in order to boost sales growth.

"The bottom line was a bit of a miss compared to our numbers and the Street and it's largely due to Tencent's margins," said Hong Kong-based Nomura analyst Jin Yoon.

"Margins will have to continue to go down if this company continues to invest in these negative margin businesses," Yoon said.

Net profit for the third quarter climbed 32 percent to 3.2 billion yuan ($514 million) from a year earlier, helped by strength in its core online gaming business.

But it fell short of an average estimate of 3.5 billion yuan in a Reuters poll of nine analysts as cost of sales soared 80 percent. Tencent's e-commerce business had the lowest margins, as costs were equivalent to 96 percent of that segment's sales, followed by online advertising, where costs were equivalent to 50 percent of that segment's revenue.

Its e-commerce revenue rose 32 percent from the previous quarter to 1.1 billion yuan.

Tencent, which is more than 30 percent owned by South African media group Naspers Ltd NPNJn.J, is a relatively new player in China's e-commerce industry which was worth $45 billion in the second quarter. In the second quarter, Tencent had 4.5 percent of the market, behind 360buy and Alibaba Group's ALIAB.UL Taobao platforms. (Full Story)

The forays into new businesses have, however, found favour with investors this year, driving its shares 72 percent higher, compared with a 16 percent climb for the Hang Seng Index .HSI.

MOBILE PAIN

Tencent said the number of fee-paying subscribers for value-added Internet services fell 4.8 percent in the quarter after it initiated a drive to improve its subscriber base by cutting out user accounts where fee-collection was unlikely.

The company also said the consumer shift to mobile devices was bringing some pain and might pose a risk to its traditional business model -- where users buy virtual currency and virtual items to personalise their accounts. Tencent's value-added Internet service business contributes more than 72 percent to its total revenue.

Tencent also noted that a slower Chinese economy may have hurt its online advertising business, which online video is a part of.

Online gaming continued to drive much of quarterly profit growth, with Tencent's new game "League of Legends" gaining traction in the market to join stalwarts "Cross Fire" and "Dungeon & Fighter" as China's most-searched-for games.

Overall third-quarter revenue jumped 54 percent from a year earlier to 11.6 billion yuan, matching analysts' estimates, with online gaming revenue climbing 44 percent to 6 billion yuan.

Tencent said that Weixin or WeChat, its highly popular mobile chatting app that has been a particular focus for investors, had taken good steps forward and had more than 200 million users as of end-September.

"Several of our investment initiatives, such as open platform, Weixin and online video, made progress in driving user engagement or monetisation," Tencent's Chief Executive Pony Ma said in a statement.

"Our focus remains on building our user base and enhancing our user experience, particularly during this period of rapid mobile Internet growth," Ma said.

Shares of Tencent ended 0.9 percent lower on Wednesday before its results were announced, versus a 1 percent rise for the Hang Seng. "

($1 = 6.2265 Chinese yuan)

Steven

WHY DOES RICHEMONT STAY SO STRONG?

2012-11-14T17:16:00.003+02:00

An interesting perspective from HSBC :

Enjoy a great piece of Analysis :

"It was the Diwali holiday yesterday and I left you all with a quiz on Monday so I will start there.

The quiz was: In many countries, gift giving often means money in a brown

envelop. Why is it that in China people give expensive watches instead? The

answer was actually told to me by a watch retailer who shall remain nameless.

In Singapore, the largest currency denomination is $10,000 but you can

actually find the $1,000 (~US$820) quite easily. In HK, the largest

denomination is HK$1,000 (~$128). In China, the largest denomination is

RMB100 (~US$16) so if you want to put a reasonable amount in a brown

envelop, it has to be a pretty big one. Simple practical reason explaining

why about 1 in 3 watches are bought for gift giving purposes. I will make a

case for China related to gift giving. Most China bulls have been smacked

into submission including my own China strategist Steven Sun (though my

Asian strategist Herald van der Linde is overweight on China). I was in a

discussion with Nouriel Roubini during the Salt conference in Singapore and

he was adamant that China will hard-land within the next 2 years. Why then

am I more sanguine on China despite my caution on other equity markets? I

think that the consensus opinion has missed out on just how important gift

giving is in China. There is even a term for it: 关系。The leadership

transition currently underway in China does not just involve the top

leadership. It also involves all the provincial and state governments. In

China, there is an idiom that says that a new Emperor brings a new court of

Ministers (一潮君子，一潮臣). It's no wonder then that gift giving has

slowed massively (if not stopped entirely) as no one is sure if the person

at the other side of the table will be there in a couple of months. As the

situation settles and as the new powers ascend, there will be a pent up

demand of people trying to ingratiate themselves with the new

powers-that-be. This will in fact result in a spike in conspicuous

consumption which will then filter through the system through the multiplier

effect (the Rolex salesperson will get his commission again with which he

can now buy something else and so on). My guess is that sales of luxury

products will be much higher than expected in Q1 next year and this will

once again cause analysts to once again extrapolate too much on the upside.

Am happy to be bullish on China here. "

Take it easy

Steven

Steven Morris Chartered Accountant (SA)

3 Bickley Road

Sea Point

Cape Town

8005

Mobile :+27 83 943 1858

Facsimile : 0866 712 498

E-mail : steven@global.co.za

Website : www.stevenmorris.co.za

The Downgrade of the Sovereign

2012-11-05T09:57:00.002+02:00

A good Article from Alastair Sellick from PSG Asset Management.

Enjoy reading !!

"After the close of the local bond market on Friday the 12th October, bond market participants received the unwelcome news that S&P had cut South Africa’s foreign currency credit rating to “BBB“ from “BBB+” and the local currency credit rating to “A-“ from “A”. Importantly, the ratings outlook was maintained at negative. This was the most concerning aspect of the downgrade, as a negative outlook means that there is a material chance that the credit rating could be subject to further downgrades later.

The move by S&P wasn’t unexpected - on Thursday the 27th September, Moody’s had downgraded South Africa’s foreign currency credit rating to “Baa1” from “A3”, the equivalent of S&P’s “BBB+”. At the time, this brought Moody’s in line with S&P and Fitch. However, S&P’s timing certainly was a surprise. The common wisdom of the market had been that they would give the sovereign the benefit of the doubt and wait until the Medium Term Budget Policy Statement had been delivered by Finance Minister Pravin Gordhan. That the ongoing developments had, in their view, deteriorated so rapidly, is quite telling, and serves to underscore the severity of the implications of the maintained negative outlook.

S&P list the following factors that could lead to further ratings downgrades:

If the South African business and investment climate weakens more than they expect

If the diverging factions within the ANC impede the formulation of a policy framework that is conducive to growth and job creation

If the Mangaung congress sets a policy framework that deviates from the path of fiscal consolidation

Factors that could lead to a downgrade of more than one notch include:

If the government’s fiscal flexibility decreases potentially due to public sector wages or debt service costs increasing more than currently expected.

In order for the rating to be affirmed at current levels, and a revision of the outlook to stable, S&P require that:

The expected increase in public sector debt must be offset by an improvement in investment and economic growth prospects, and

Fiscal consolidation must continue

Ordinarily, it is counter-productive for the downgraded entity to respond to a ratings agency. It is far more telling to react to the reasons that have been cited for the rating action. However, National Treasury’s response to S&P is measured and it emphasizes the positive long term consequences of the infrastructure spending programme. The financial markets certainly took the ratings actions in their stride – bond yields sold off around 15 bp and have since recovered. The Rand had weakened significantly around the strike actions which happened the week or two before, so is broadly stronger than it was at the time of S&P’s announcement.

These ratings downgrades were not a fait accompli. They represent the consequences of allowing an inefficient labour market to impact on the productive capacity of the South African economy over a long period of time. It is no surprise that South Africa features so poorly in the labour categories of the Global Competitiveness Report of the World Economic Forum. As an increasingly emboldened and more powerful member of the tripartite alliance, labour has been flexing its muscles – the annual strike season refers. When strikers are so emboldened that the rule of labour law is no longer respected, the consequences can be disastrous. Labour would be well advised to take note that much of the gain, in terms of being able to increase social spending and develop the country’s infrastructure has depended on positive foreign investor perceptions about South Africa.

Fitch has given the Finance Minister the benefit of the doubt, and has indicated that a pronouncement on the South African sovereign rating will occur early in 2013. However, the manner in which the wildcat strikes expanded, as well as the lost output in various mines and support industries suggests that there could be a reduction in the country’s Q3 / Q4 growth rate, and this has implications for the fiscus. We thus continue with the Sword of Damocles hanging over the bond market.

In the current global environment, there is such a heightened focus on government deficits, austerity and fiscal consolidation. It is important that governments keep their house in order, and fly below the radar. While South Africa initially did so well at the start of the financial crisis, primarily through the sound policies of the South African Reserve Bank and the rigorous regulation of our banks, we have lost the advantage we once had. South Africa has also benefitted from the dual windfalls of global quantitative easing, which has sent large amounts of cheap foreign capital out hunting for yield in the well run, investment grade bond markets, and our inclusion in the Citi World Global Bond Index (the WGBI) on the 1st October 2012. We should be doing our utmost to show the world that South Africa is a capital friendly investment destination, and in the context of the global financial crisis, we should be putting our best face forward. We should be marketing our country as the ideal destination for capital that can be deployed towards the economic development of the African Continent. We need to now convert the hot-money of global bond inflows into long term Foreign Direct Investment (FDI) otherwise we will pay the price if that capital leaves at the speed with which it arrived.

Ratings agencies and the bond markets play an important role in regulating the behaviour of governments. If governments play by the rules and adopt sensible, responsible policies, they will be rewarded by good credit ratings and access to foreign capital. If not, it is the duty of the ratings agencies to point this out to bond investors. In turn, it is the obligation of bond investors to price adequately for the investment risk they are taking. Now that foreign investors hold close to 40% of our nominal local government debt, we are even more vulnerable to the marginal ratings change by ratings agencies.

There is no doubt that the required risk premium for investing in South African government bonds has risen, even though our bond yields have fallen. The question is: will the government be able to deliver on the required improvement in investment, economic growth and social prospects that are now demanded of this country?"

"The PSG Angle is an electronic newsletter of PSG Asset Management"

Kind Regards

Steven

Steven Morris Chartered Accountant (SA)

Mobile :+27 83 943 1858

Facsimile : 0866 712 498

E-mail : steven@global.co.za

Website : www.stevenmorris.co.za

Nissan warns of slowing China expansion

2012-10-30T09:18:00.000+02:00

Breaking News

FT.com

"Nissan warns of slowing China expansion

Carlos Ghosn, chief executive of Nissan, has warned that a protracted breakdown in relations between Japan and China could slow his company’s aggressive expansion into the Chinese car market, which Nissan has come to rely on for one-quarter of its sales.

In an interview with the Financial Times, Mr Ghosn said Nissan’s current investment plans, such as a factory in Dalian that is to be built in 2014, would go ahead despite a consumer backlash in China against Japanese car brands that has led to a sharp fall-off in demand.

But he cautioned that additional commitments would “be subject to a lot of scrutiny and analysis, and a little bit of time.”

Asian Stocks Fall After Apple Earnings as Metals, Yen Advance

2012-10-26T10:05:00.003+02:00

Oct. 26 (Bloomberg) --

"Asian stocks fell, with the regional benchmark index erasing its gain for the month, and U.S. futures slid as China Unicom (Hong Kong) Ltd. and Apple Inc. joined companies posting results that missed analysts’ estimates. Metals rose and Japan’s yen climbed.

The MSCI Asia Pacific Index lost 0.9 percent as of 1:01 p.m. in Tokyo as Standard & Poor’s 500 Index futures fell 0.8 percent. Zinc contracts in London gained 0.3 percent to $1,840.5 a metric ton as nickel rose 0.2 percent. The yen climbed 0.2 percent against the dollar and China’s yuan touched the upper limit of its allowed trading band for a second day.

Apple, the world’s largest company by market value, announced yesterday forecasts on earnings that fell short of projections for the crucial holiday quarter. China Unicom, the country’s No. 2 mobile-phone carrier, was among 60 percent of companies on the Asia-Pacific gauge whose earnings have missed estimates. U.S. data today may show the world’s largest economy expanded 1.8 percent in the third quarter, for the first back- to-back readings below 2 percent since 2009.

“Economic data has been positive, but earnings as a whole has been disappointing,” said Tim Schroeders, who helps manage $1 billion in equities at Pengana Capital Ltd. in Melbourne. “We’ve seen the worst in terms of economic growth downgrades, and the general economy is starting to improve from a low level. But we are still in the process of seeing the impact on earnings of that lower growth.”

Canon Inc., the world’s largest camera maker, slid 2.5 percent in Tokyo after it lowered its full-year profit and sales forecasts on slowing demand. Fanuc Corp., the largest maker of controls that run machine tools, fell the most in six months after reporting first-half profit that missed estimates.

Samsung, TSMC

A gauge of technology stocks fell 0.5 percent on the MSCI Asia Pacific Index, led by a 1.8 percent decline in Samsung Electronics Co. in Seoul. The company, both a rival and supplier to Apple, reported today third-quarter profit that beat analysts’ estimates. Samsung has the heaviest weighting among the 1,006 members of the Asia-Pacific index.

Taiwan Semiconductor Manufacturing Co. rose 2.8 percent, pacing gains on the regional benchmark after forecasting profit margins that also beat expectations.

Apple expected profit in the current period will be about $11.75 a share on sales of about $52 billion, the company said yesterday in a statement. That compares with $15.49 a share on sales of $55.1 billion according to the average of analysts’ estimates compiled by Bloomberg. Last quarter’s profit rose to $8.67 a share, shy of the $8.75 a share projected by analysts.

Nikkei 225

Japan’s Nikkei 225 Stock Average dropped 1.1 percent, extending declines after the government announced a further $9.4 billion stimulus package.

"Japan needs bigger stimulus as the economy is slowing faster than expected, but it will be hard to have larger spending due to political gridlock and worsening fiscal conditions,” said Yoshimasa Maruyama , chief economist at Itochu Corp. in Tokyo. “Political pressure will build on the BOJ.”

South Korea’s Kospi Index dropped 1.6 percent. Hong Kong’s Hang Seng Index declined 0.8 percent after yesterday capping the longest streak of gains since 2006. Markets in Indonesia, Malaysia, Singapore and the Philippines are closed for a holiday.

Industrial metals rallied following five days of losses in the London Metal Exchange Metals Index. Copper, aluminum and tin futures rose at least 0.3 percent.

Korea GDP

South Korea’s gross domestic product expanded 1.6 percent in the three months to September, the slowest pace since 2009, according to Bank of Korea data today. That compares with the median 1.7 percent estimate of 13 economists surveyed by Bloomberg News.

Japan’s consumer prices, excluding fresh food, fell 0.1 percent in September, the fifth month of decline, the statistics bureau reported today. The median of 27 estimates in a Bloomberg News survey was for a 0.2 percent drop.

The yen strengthened after touching a four-month low earlier, amid speculation the central bank will expand monetary easing next week. The currency was headed for a second weekly drop as a survey of economists showed the Bank of Japan will probably undertake additional measures when it meets Oct. 30.

Upper Limit

China’s yuan climbed to a 19-year high, with the advance exceeding the People’s Bank of China’s reference rate by the maximum allowed 1 percent. The daily fixing was raised 0.06 percent today to 6.3010 per dollar.

Benchmark U.S. 10-year notes yielded 1.81 percent, less than 1 basis point from yesterday’s close, before the U.S. GDP report later today. Treasuries were headed for a second weekly loss before the government report economists said will show consumer spending drove a pickup in growth.

The Thomson Reuters/University of Michigan final index of sentiment is also due today. The gauge jumped to 83 in October, the highest level since September 2007, according to a Bloomberg survey.

To contact Bloomberg News staff for this story: Chua Baizhen in Singapore at bchua14@bloomberg.net

To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net "

===

Steven

Steven Morris CA (SA)

Mobie : 083 943 1858

Fax: 086 671 2498

E-Mail: steven@global.co.za

Website: www.stevenmorris.co.za

Britain moves out of recession

2012-10-25T11:04:00.000+02:00

Britain’s double-dip recession has ended after the economy grew 1 per cent between the second and third quarters, much more robustly than economists had expected.

The strong rise in gross domestic product will come as a relief to the coalition government, whose austerity programme has come in for fierce criticism as the economy has faltered.

Facebook fillip from mobile growth

2012-10-23T23:05:00.001+02:00

FT.com
"Facebook reported better than expected revenues in the third quarter, mainly driven by its aggressive push into mobile advertising.

The social networking company is starting to show success from its aggressive push into mobile advertising in recent months, reporting better than expected revenues for the third quarter.

The company generated $1.26bn in revenues, more than the $1.22bn analysts had anticipated. Earnings per share were 12 cents, on par with analysts’ expectations."