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Speaker 1: And now The Money Show with Stephen credits on seven

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Speaker 1: oh two. Let's walk at all. The Money Show with

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Speaker 1: Stephen Crutis is brought to you by abs of corporate

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Speaker 1: and investment banking, balancing economic growth with ecosystems. That's how

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Speaker 1: they're invested in your story. Good evening, Welcome to the

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Speaker 1: Friday edition of The Money Show. Eight minutes after six.

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Speaker 1: I'm Stephen Curtis. Still quite a lot going on one

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Speaker 1: or two updates. Does look like markets are feeling a

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Speaker 1: little bit more positive than they were yesterday, but it

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Speaker 1: has been such a sort of up and down week

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Speaker 1: it's really hard to say. I think people still looking

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Speaker 1: for a little bit of direction. Obviously, the big story

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Speaker 1: today the big Chinese trade deal that we've signed. We

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Speaker 1: get duty free access pretty much, it seems to their

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Speaker 1: whole market. The question for me, of course, is what

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Speaker 1: about the reverse and what happens if you do have

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Speaker 1: complete nuttered duty free access between the two and you

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Speaker 1: have a big economy and a small economy. Who wins

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Speaker 1: and who loses? I do have a concern. I won't lie,

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Speaker 1: but as Ion Plunger knows a lot more about these

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Speaker 1: things than I do, and I'm hoping he'll put my

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Speaker 1: mind at rest. He's the chief economist and head of

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Speaker 1: research at R and B. We'll hear from him in

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Speaker 1: just a moment. I noticed this week it was sort

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Speaker 1: of pointed out to me, and I'm very grateful to

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Speaker 1: the person who pointed it out that some of our

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Speaker 1: banks are buying shares in each other. It was a

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Speaker 1: couple of transactions this week and thought might just investigate

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Speaker 1: that little bit of further Cookie Quoiman as the banking

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Speaker 1: unlest danker capital. It sort of goes to how all

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Speaker 1: of our banks are kind of into LinkedIn. On one level,

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Speaker 1: that's a very good thing. It means they sort of

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Speaker 1: look after each other and that does bring more stability.

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Speaker 1: I know, if our conspiracy theorist or you know, a

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Speaker 1: member of a radical political party or something, our child conspiracy,

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Speaker 1: and maybe we should look into that. But I kind

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Speaker 1: of just feel that actually for the system, the good

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Speaker 1: of the system, stability is all when it comes to banking,

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Speaker 1: and that's very important. I don't know if you have

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Speaker 1: been able to spend much money on luxury over the

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Speaker 1: last little while, and I mean, you know, top of

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Speaker 1: the range handbags, things like that. A new luxury report

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Speaker 1: from Laxity suggesting wallets are just out completely. I've never

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Speaker 1: really spent money on a Wallas. I also don't know

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Speaker 1: what I'll do with the wallet now. I mean, I

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Speaker 1: have one, but it kind of doesn't really live on

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Speaker 1: me because everything's now on your phone. The only thing

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Speaker 1: you have to carry on you is still your driver's

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Speaker 1: license card. I mean, come on, surely time to have

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Speaker 1: that on your phone. But otherwise I don't know really

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Speaker 1: what I'd use a wallet for. I do carry cash,

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Speaker 1: and now I do keep it in a safe place,

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Speaker 1: but I don't have it on me most of the time.

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Speaker 1: We'll talk a little bit about that change. And then

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Speaker 1: also it seems that there's some differences between what people

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Speaker 1: in Cape Town are buying and some people in joe

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Speaker 1: Burg are buying. Don't forget the Friday Biz Blitz as

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Speaker 1: well before seven o'clock. Good to hear from you seven

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Speaker 1: two seven oh two one seven oh two Voice notes

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Speaker 1: on Double one, Double A three oh seven two and

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Speaker 1: two one four four, six, five six seven The Lanly

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Speaker 1: Show with Stephen Kruts Live on ninety two point seven

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Speaker 1: and one six f M, streaming on the Prime Media

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Speaker 1: Plus Now and DStv channel eight five six. You would

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Speaker 1: have heard in the EWN News bulletin with pulling the

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Speaker 1: report from Cape Town about the SABC meeting in Parliament today.

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Speaker 1: This is a meeting of a Portfolio Committee on Communications.

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Speaker 1: They were meeting to speak to the Communications Minister, Soli

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Speaker 1: Malatti about the new funding model that's being proposed for

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Speaker 1: the SABC. Now I know nothing about the funding model

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Speaker 1: because the meeting, it seems, was closed to the public

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Speaker 1: and I have so many questions about this. Firstly, Parliament

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Speaker 1: has to be in the open. That's not me saying

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Speaker 1: that that's the law. By the way, Parliament has to

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Speaker 1: be in the open. You can't just because you don't

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Speaker 1: like this, or you worried about that, or commercial this.

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Speaker 1: It has to be in the open. I am not

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Speaker 1: convinced that the decision to keep a meeting like that

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Speaker 1: closed would actually survive a court case. I wonder if

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Speaker 1: maybe you have to have it open. Secondly, you're making

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Speaker 1: the mistake of thinking it's your SABC. It's not. It

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Speaker 1: is our SABC. It is the public, not the state,

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Speaker 1: the public broadcaster, and that means that everybody, including us,

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Speaker 1: we need to know what is going on around the

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Speaker 1: SABC and what government intends to do about it and

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Speaker 1: how they're going to fix it. Now if things are

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Speaker 1: sensitive and you want to keep it a secret in

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Speaker 1: South Africa, good luck to you.

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Speaker 2: But that's on the.

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Speaker 1: Money shows six to eight pm. Well, a big announcement

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Speaker 1: last night by the DTIC Minister Parkstow. He signed that

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Speaker 1: framework agreement with China that will get our companies duty

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Speaker 1: free access to Chinese markets by the end of March.

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Speaker 1: As I'm Clung as the chief economists head of research

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Speaker 1: at R and B as I good evening, so good

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Speaker 1: to have you again. China is a big market. I

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Speaker 1: mean this is a big deal for some of our companies.

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Speaker 3: Indeed, China is a big market, you know, a big

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Speaker 3: opportunity to send a lot of our products into the

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Speaker 3: Chinese markets. But you know it also comes with some risks,

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Speaker 3: you know, the idea that it is big. A lot

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Speaker 3: of the essuyes are states supported, which means they have scalability,

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Speaker 3: they're a lot more efficient. It means they can send

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Speaker 3: products to the South Afgan market a lot more easier

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Speaker 3: as well. So we are opening up to new trade.

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Speaker 3: Other news, but we are going to be recipients of

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Speaker 3: other products that come into our own economy from China

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Speaker 3: which domestic companies might not be able to compete with.

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Speaker 3: The Automotive sector is an example. We have seen a

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Speaker 3: lot of inflows of Chinese you know, manufactured cars that

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Speaker 3: are coming to the South African market that are much cheaper,

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Speaker 3: which have displaced in terms of market share the traditional

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Speaker 3: OEMs that have been operating the South African market for

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Speaker 3: for for a while. So there are opportunities and risks

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Speaker 3: depending on how the trade deals are structured.

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Speaker 1: So this is the thing. We don't know the details,

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Speaker 1: we haven't seen it yet, but presumably, and this is

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Speaker 1: a big if because I don't think it's going to

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Speaker 1: be like this, But if it's completely open access both ways,

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Speaker 1: I mean, we'll sell a lot more lemons in China

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Speaker 1: as an example, We'll sell a lot more farming, farming, producer,

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Speaker 1: mining products, but we will probably lose our car industry.

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Speaker 1: I mean, would it be as bad as that if

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Speaker 1: that's what it is.

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Speaker 3: Yeah, Look, I think that's the risk that you're highlighting

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Speaker 3: is you know, you're highlighting it correctly, given that we

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Speaker 3: sell to a largely expand commodity cheese that is mining

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Speaker 3: commodities is agricultural commodities. From a manufacturing perspective, we're very

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Speaker 3: little to offer China that they can produce for themselves,

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Speaker 3: and they have a lot more to offer what we

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Speaker 3: can produce here. But given in that case, the automotive

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Speaker 3: companies try in the domestic economy are not South Africa.

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Speaker 3: We are simple, yes, we you know, manfacture some but

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Speaker 3: a large extent we are a collings to it for

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Speaker 3: an I mean for an export market. So we just

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Speaker 3: have to think through what are the implications in the

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Speaker 3: job market, What are the implications for the you know,

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Speaker 3: small manufacturing best that have built so far.

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Speaker 4: But there is a way where you know.

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Speaker 3: If police Americans can think about domesticating that manufacturing capability

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Speaker 3: in the South African economy to preserve jobs, that's one,

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Speaker 3: but more importantly to bring the technical know how into

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Speaker 3: the South African manufacturing sector, that will be a better deal.

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Speaker 1: What safeguards do you think would be important? As I say,

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Speaker 1: we haven't read the agreement yet, it hasn't been made public,

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Speaker 1: but I presume something for the car industry. Maybe still

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Speaker 1: considering that, you know, we understand the id C is

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Speaker 1: in a in negotiations with Arsenal Misselle. We were reminded

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Speaker 1: of that yesterday. What would there be other areas that

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Speaker 1: maybe we would need to be able to say to

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Speaker 1: the Chinese, look, this is special to us. We need

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Speaker 1: to protect it.

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Speaker 3: So catering those agreements, who have to take into account

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Speaker 3: and the social dynamics locally, the job environment locally, and

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Speaker 3: also you know, the manufacturing capability locally because if that

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Speaker 3: is displaced, we will industrialize a lot more than what

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Speaker 3: we have currently. And of course to your point, there's

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Speaker 3: still there's still sector is it is an important sector

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Speaker 3: that can benefit you know, other sectors beyond just itself

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Speaker 3: and the manufacturing sector. So we need to preserve that

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Speaker 3: capability locally. But that requires energy, you know a lot

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Speaker 3: of energy that is cheaper, which means it is to

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Speaker 3: be combined with an energy policy that is conclureent to

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Speaker 3: a manufacturing sector policy that you know that can build

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Speaker 3: or rebuild our manufacturing capability for industrialization. So we have

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Speaker 3: to consider all of that. I think it's still too

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Speaker 3: aaily now how to try and have a view on

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Speaker 3: how this trade agreement is going to look like. They

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Speaker 3: are still in negotiations and we hope in those negotiations

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Speaker 3: that will take into account the needs of the South

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Speaker 3: African economy as they open up the Chinese economy for

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Speaker 3: South African products.

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Speaker 1: Is it always the case that if one big economy

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Speaker 1: has an open access trade deal with a smaller economy,

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Speaker 1: so the term of exactly the same access to each

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Speaker 1: other's economies. I mean, my gut sort of wants to

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Speaker 1: say the big one always wins. Is that the case?

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Speaker 3: It's not always the case. There are instances where you

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Speaker 3: have a transfer of technology to the smaller economy such

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Speaker 3: that it drives much more than it used to be

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Speaker 3: before the trade deal. It all depends on what the

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Speaker 3: policy makers negotiate and what is you know that which

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Speaker 3: they're going to agree to in the sectors which are

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Speaker 3: quite important for the South African economy. So it's not

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Speaker 3: a foregoing conglusion that will be on a net negative

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Speaker 3: depending on how we structure it. Where do we want

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Speaker 3: to gain If we could gain from a technology and

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Speaker 3: capability transfer perspective into the domestic economy, that would benefit

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Speaker 3: South Africa long term, But it needs careful considerations or

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Speaker 3: hopefully the policy makers are going to take into account

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Speaker 3: the needs of the South African economy to re industrial lies.

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Speaker 3: They're the best that we can use to export into

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Speaker 3: the larger continent under the Africa Frequenttender Agreement.

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Speaker 1: As I am planker, thank you so much, so much

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Speaker 1: to think about. Chief Economists and head of Research at

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Speaker 1: R and B. Nineteen minutes after six the Money Show

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Speaker 1: explain that the last couple of weeks, they've been a

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Speaker 1: few interesting transactions involving our banks and their relationships to

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Speaker 1: each other. I'm supposed to simplify at Standard Bank now

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Speaker 1: owns six percent of investing, Standard Bank owns five percent

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Speaker 1: of netbank. African Bank is twenty five percent earned by

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Speaker 1: con him of the big five banks. Why on earth

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Speaker 1: there our banks buying into each other? Cookie Cooman is

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Speaker 1: the banking and listed Thank you capital Cookie, good evening,

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Speaker 1: Thanks so much for the time. I mean, why do

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Speaker 1: our banks want to own bits of each other?

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Speaker 4: By Steve and you are a good introduction, but we

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Speaker 4: was the first separate two issues. Number one, the five

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Speaker 4: and six percenters that you refer to Sound Bank owning

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Speaker 4: of in their steck and et cetera. Those are shareholdings

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Speaker 4: via their pension funds or unit trusts. Maybe that they

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Speaker 4: manage so remember the bank doesn't own those shares and

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Speaker 4: it actually has no say over any decisions regarding those shares.

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Speaker 4: The members of the pension funds own that and there

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Speaker 4: are managers and trustees who make sure that there's a

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Speaker 4: ducial duty towards those pension fund members are is correctly

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Speaker 4: separated from the bank's wishes. So the Standard Bank would

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Speaker 4: have no influence whatsoever on any vote or any decision

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Speaker 4: that it's holdings in Investec via Expansion Fund is made.

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Speaker 4: The second one is different, and that is in this

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Speaker 4: case is the holding in African Bank. And whether we

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Speaker 4: can talk a third one just now as well, like

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Speaker 4: net Bank who owned twenty percent in Eco Bank, and

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Speaker 4: now I bought to sixty five percent stake in a

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Speaker 4: bank in Uganda, But the African Bank one was a

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Speaker 4: bank that actually got into trouble, was collapsing, and I

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Speaker 4: think was a ten years before that. Ruckly, we had

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Speaker 4: the same ensemble where you know, the bank had a

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Speaker 4: run on deposits, which is always your biggest fear in banking.

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Speaker 4: And when your deposits start feeing, the central bank has

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Speaker 4: to step in because and that's the whole system of banking.

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Speaker 4: It's actually banking works on the premise that deposit ninety

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Speaker 4: depositors need the money at the bank, so the depositors

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Speaker 4: can often have shortened deposits with the bank, but the

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Speaker 4: lending the duration of the lending is much longer than

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Speaker 4: that of the deposits. So when when more than it's

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Speaker 4: five percent of depositors with draw their money, a bank

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Speaker 4: cannot actually fund them and the central bank has to

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Speaker 4: step in and in the end the taxpayer has to

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Speaker 4: make good. So okay, African Bank was a good example

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Speaker 4: where the Minister Finance gets involved, the central bank gets

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Speaker 4: involved and they work out a transaction to save the bank,

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Speaker 4: to stabilize the whole system. Because the older reading listeners

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Speaker 4: might still remember what happened when when Soombo started going thereafter,

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Speaker 4: Bank of Boe wasn't Bank of the East was at risk.

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Speaker 4: Net Bank was at risk. Because it spreads up the line,

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Speaker 4: people start getting worried and then someone has to step

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Speaker 4: into say I've got big pockets, don't worry, your deposits

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Speaker 4: are safe. Okay. African Bank is held by the various

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Speaker 4: banks because at that stage the arrangement was made that

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Speaker 4: it's better that those shares are placed so that all

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Speaker 4: have an interest in making sure African banks survived which

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Speaker 4: are dead. And so now that it's listed, I think

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Speaker 4: there's a lock up period, but gradually they will sell

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Speaker 4: those banks back onto the other shares back into the market.

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Speaker 1: Again, Okay, does that raise I mean, I mean the

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Speaker 1: shareholdings are relatively small. I'm so curious as to why

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Speaker 1: the pension fund of Standard Bank would buy into what

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Speaker 1: is sensibly a competitor.

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Speaker 4: Okay, it's remember, as I said, it's a separate entity,

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Speaker 4: separate from the bank. So they're all invest in what

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Speaker 4: they're but also what we tend to forget, how the

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Speaker 4: JS shrunk. You will sort of remember was it fifteen

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Speaker 4: years ago where the pricess was called public in the newspapers.

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Speaker 4: You add up to three pages of shareholdings and now

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Speaker 4: it's basically I think it's it's less than one hundred

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Speaker 4: of larger shares. So the share, the number of shares

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Speaker 4: of shrunk, and the number of larger liquid shares of

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Speaker 4: shrunk as well. And so almost by default, any large

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Speaker 4: pension fund and any large unit trust or by default

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Speaker 4: have to own almost everything in the economy, and by

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Speaker 4: default it will be a fairly sizable. So Standard Bank's

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Speaker 4: pension fund, which I think just logically it would because

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Speaker 4: of the biggest bank, bigger number of shells, would be

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Speaker 4: one of the largest extensions on bigger than that of netbank.

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Speaker 4: It would have a larger share of of ownership in

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Speaker 4: other banks. And obviously whoever that management of that son

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Speaker 4: has been outsourced to might decide it life's netbank because

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Speaker 4: or investigate those case investics. Price to ind turn on

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Speaker 4: capital is very cheap, so obviously they've been taking a

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Speaker 4: bigger investment in let's say, Investeck rather than whatever capitech,

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Speaker 4: which is very expensive. But those will be the decisions

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Speaker 4: of the the time manager of the pension fund.

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Speaker 1: Does it matter that our banking industry can look all

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Speaker 1: quite interconnected? I mean, on one level, it makes me think, well,

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Speaker 1: they all, for various reasons, kind of are slightly interconnected,

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Speaker 1: but they're still healthy competition. I can't see how you

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Speaker 1: couldn't say that. On another level, if I were a

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Speaker 1: conspiracy theorist and cooky I help my moments later on

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Speaker 1: a Friday, look at all the bankers and I'm like,

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Speaker 1: you're all in it together.

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Speaker 4: Oh look, I think it was a ticket bar article

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Speaker 4: in the newspaper which said that Standard Bank has a

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Speaker 4: stake invest Tech, and people mediately sort of thinking, oh,

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Speaker 4: and look on the two sides of the story. On

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Speaker 4: the one hand, for the consolidation of our bank sector,

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Speaker 4: and you saw that in Australia and in Canada and

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Speaker 4: a few other countries is actually healthy because it leads

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Speaker 4: to more efficiency. But then it leads to less competition.

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Speaker 4: So there are many voices, and I think correctly say

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Speaker 4: the same reserve bank will actually increase the number of competitors.

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Speaker 4: But more competitors also mean more risk of them defaulting

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Speaker 4: like Assemble or African Bank dead. So your control must

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Speaker 4: be and your bank supervision must be very good. But

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Speaker 4: generally our bank sector is very competitive. Trust me. I

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Speaker 4: speak to them regularly, and you know, but it is

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Speaker 4: true that the banks will always be on the lookout

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Speaker 4: for a weak competitor, and you know, like the smaller

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Speaker 4: banks netbank and in the respect, I'm sure regularly the

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Speaker 4: boards or the exec teams of the other banks say

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Speaker 4: should we think of buying investor should you think of

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Speaker 4: buying netbanks because they're smaller? Or someone? Now did they

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Speaker 4: die up with the Time bank? But I think because

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Speaker 4: that is a low growth economy at the moment. We

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Speaker 4: hope that changes, but that means that the only benefit

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Speaker 4: of taking out a competitor is to get efficiencies, and

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Speaker 4: that means you've got to lay up staff, you've got

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Speaker 4: a close branches. Competition. Commission won't like that. It's hard work,

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Speaker 4: and that's why you find most of the Salatican banks,

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Speaker 4: in fact, all of them have been focusing more on

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Speaker 4: doing acquisitions in Africa. And I think that's why the

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Speaker 4: African countries are growing faster than ours at the moment,

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Speaker 4: and they can do a technology and expertise transfer. It's

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Speaker 4: not as competitive there and those are growing economy, and

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Speaker 4: I think so you'll see SA banks continuing to rather

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Speaker 4: grow their footprint in Africa rather than increasing the level

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Speaker 4: of competition here in South Africa.

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Speaker 1: Goky GOI man, thank you so much, really to appreciate it.

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Speaker 1: Banking analyst at den Care Capital. Right. I think that's

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Speaker 1: been explained certainly to me. Twenty seven minutes after six

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Speaker 1: the Money Show, Grant Natives Portfolio Manager be Guerla Global

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Speaker 1: Fund Managers Grant Good Evening Harmony. Yes, of course we

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Speaker 1: expect their earnings to be well, you know, over one

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Speaker 1: hundred percent more because of the gold price. But quite

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Speaker 1: a nice production update.

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Speaker 5: Yeah, nice update, and they had some operational disruption in

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Speaker 5: the second quarter. So the fact that they on tack

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Speaker 5: to meet their full your guidance, I think is very encouraging.

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Speaker 5: So you know, we don't want to see them not

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Speaker 5: taking advantage of this opportunity. I mean this gold price,

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Speaker 5: as we know, near record levels. It's a fantastic opportunity

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Speaker 5: for our miners, for our fiscus. So good to see

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Speaker 5: that production stability. And I do know that the costs

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Speaker 5: for answer all in sustaining costs are creeping up. It's

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Speaker 5: a problem across the industry, and so it does it

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Speaker 5: does tend to I think it's formal a higher base

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Speaker 5: for future gold price. And I don't think we're ever

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Speaker 5: going to see some of those levels we saw again

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Speaker 5: back in the two thousand and below level, but we

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Speaker 5: will see.

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Speaker 1: Yeah, interesting news overnight the sort of deal, the proposed

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Speaker 1: deal between glen Core and Rio Tinto it's been called off.

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Speaker 1: Was that just too much ego? Does it not make

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Speaker 1: economic sense?

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Speaker 5: Look, I think the economic rational makes sense. There's a

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Speaker 5: good fit between the portfolios. Rio needs what Glencore has

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Speaker 5: and Glencore could do with the scale and whatnot that

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Speaker 5: Rio brings. But you know, you have got Glencre which

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Speaker 5: is a sort of a founder and well it's not

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Speaker 5: a founder run business, but it's very much a nontroprimurial business.

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Speaker 5: Rio is very much a corporate Glencore and Rio's both

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Speaker 5: have very distinct cultures. Remember you know, glen Call run

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Speaker 5: by South Africans, by VIZ graduates cas from VITZ and

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Speaker 5: there's a lot of them working in the company. Is

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Speaker 5: a very clear culture, and I think it's important to

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Speaker 5: them to sustain that. But I will say that glen

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Speaker 5: Core it's not significantly worse off without it. They have

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Speaker 5: a very good portfolio of metals, and I think they're

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Speaker 5: well positioned for some of the future demand around copper,

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Speaker 5: cobalt and some of the new new metals so to speak.

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Speaker 4: So I think I'll be fine.

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Speaker 5: I'm wondering to myself, does HP turn around and have

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Speaker 5: a look at glen Corn now, because they've got the

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Speaker 5: copper gem that everyone's looking for. Didn't work with Rios

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Speaker 5: and they missed Anglers, so maybe they're on the table

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Speaker 5: for Billiton. It's be interesting to watch that space.

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Speaker 1: I mean a whole shakeout in the metal sector that

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Speaker 1: we've seen over the week. I mean, quite traumatic in

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Speaker 1: a way, very volatile. I mean, I don't know, I

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Speaker 1: don't really see an enter it for the meantime, and

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Speaker 1: I mean it seems that the market is still quite

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Speaker 1: vulnerable to rarely this kind of thing for a while.

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Speaker 5: Yeah, I think we should expect it, given the kind

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Speaker 5: of moves we've seen and the speed of the moves.

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Speaker 5: They're inevitably attracts a lot of speculative positioning, a lot

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Speaker 5: of fast money. And then when you have that kind

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Speaker 5: of environment, the moves of top both up and down,

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Speaker 5: and you get margin calls, you know they've been pushing

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Speaker 5: up margin to sort of manage the speculation. Then you

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Speaker 5: see further forth selling. So I think the volatility is

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Speaker 5: here to stay, as you say, and it's probably part

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Speaker 5: of a healthy, hopefully consolidation phase from our perspectives. But

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Speaker 5: I don't think it's changed the fundamentals or the underlying

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Speaker 5: drivers are, especially with regard to gold.

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Speaker 1: Thank you very much. Indeed, Grant Nada as portfolio manager

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Speaker 1: being Wuella Global fund managers really appreciate it. Just on

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Speaker 1: sixth thirty, The Money Show with Stephen on seven O

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Speaker 1: two seven O two. Well Hews today that Discovery, the

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Speaker 1: financial group, has decided to spend four billion round buying

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Speaker 1: its own headquarters in santon It was fifty five percent

401
00:22:47,960 --> 00:22:50,720
Speaker 1: owned by Growth point forty five percent owned by another group,

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Speaker 1: and essentially Discovery is saying, look, we'll own our own headquarters.

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Speaker 1: It does make sense. Among many other things it's been

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Speaker 1: pointed out several times today is that this looks like

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Speaker 1: quite a big vote of confidence in Santain. If you

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Speaker 1: have a landlord, you would be able to, you know,

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Speaker 1: give notice even a couple of years notice and move out,

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Speaker 1: and Discovery are clearly saying, well, we are staying here,

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Speaker 1: which is interesting because Santurn still has some of the

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Speaker 1: most expensive commercial property, or really does have the most

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Speaker 1: expensive commercial property in the country. And from time to

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Speaker 1: time someone will make a comment about satin All this,

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Speaker 1: all that, but just the last couple of days, if

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Speaker 1: you look at the sheer amount of traffic going into

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Speaker 1: Santin in the morning, and I sometimes drive against it

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Speaker 1: because you know, from three o'clock people start to leave

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Speaker 1: sentin as they go home or fetch children or whatever

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Speaker 1: it is. At the end of the day, certainly that

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Speaker 1: traffic is going nowhere. I mean that in both ways.

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Speaker 1: One it's going to keep getting stuck in Santain, and

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Speaker 1: two most of the time it's not really moving. The

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Speaker 1: point is that traffic doesn't lie. Traffic tells you how

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Speaker 1: strong sentence still seems to be at the moment. If

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Speaker 1: I were owning land and centered, if someone offered me

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Speaker 1: a piece and I had four billion round, that might

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Speaker 1: actually be a very very wise investment for the future.

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Speaker 1: Your thoughts seven two seven two one seven o two

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00:24:14,160 --> 00:24:17,920
Speaker 1: show the Friday File. The Friday File seventeen minutes now

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Speaker 1: to seven the time well Amid claims that more and

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Speaker 1: more of us are still stuck in debt. To report

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Speaker 1: out about the business of luxury. That suggests some of

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Speaker 1: the bigger, more conspicuous, more obvious luxury brands maybe aren't

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Speaker 1: doing as well as they did what it's also seemed

434
00:24:35,119 --> 00:24:37,960
Speaker 1: to really not be doing very well at all. The

435
00:24:38,160 --> 00:24:41,119
Speaker 1: report comes from Luxity. It's the store, the group that

436
00:24:41,400 --> 00:24:47,000
Speaker 1: resells luxury items. Michael Zaharrev is the co founder of Luxity.

437
00:24:47,240 --> 00:24:49,479
Speaker 1: Michael good evening, good to chat again. I mean, what

438
00:24:49,520 --> 00:24:52,440
Speaker 1: are you finding is changing in the market? I mean

439
00:24:52,480 --> 00:24:55,680
Speaker 1: clearly handbags are still in but what people are interested

440
00:24:55,680 --> 00:24:57,840
Speaker 1: in handbags does seem to be changing.

441
00:24:59,280 --> 00:25:01,280
Speaker 2: Yes, thank you for having me again on the show,

442
00:25:01,720 --> 00:25:05,600
Speaker 2: and exactly what you're saying. The market is definitely evolving.

443
00:25:05,680 --> 00:25:07,720
Speaker 2: In fact, this is one of the years where we've

444
00:25:07,760 --> 00:25:12,400
Speaker 2: seen the greatest evolution. In general, the luxury market has

445
00:25:12,440 --> 00:25:15,360
Speaker 2: been booming for the last five years, and the Clear

446
00:25:15,480 --> 00:25:20,280
Speaker 2: Shopping Index report this year actually showed that the new

447
00:25:20,400 --> 00:25:24,440
Speaker 2: luxury market has contracted just one percent, so very flat there.

448
00:25:25,000 --> 00:25:28,320
Speaker 2: Luxity representative of the pre owned market at the same time,

449
00:25:28,560 --> 00:25:31,320
Speaker 2: has grown twenty seven percent over the same period, so

450
00:25:31,359 --> 00:25:34,000
Speaker 2: we can see that consumers are definitely buying into this

451
00:25:34,119 --> 00:25:38,080
Speaker 2: pre owned trend number one, and more importantly, the taste

452
00:25:38,080 --> 00:25:42,320
Speaker 2: of consumers are shifting. Traditionally, we saw that consumers were

453
00:25:42,320 --> 00:25:47,760
Speaker 2: really gravitating to more the affordable items shoes, wallets, the

454
00:25:47,800 --> 00:25:50,800
Speaker 2: goods under ten thousand rand in terms of affordability for

455
00:25:50,880 --> 00:25:54,600
Speaker 2: the luxury industry because we're kind of an entry point.

456
00:25:54,880 --> 00:25:58,000
Speaker 2: But this year, surprisingly, what we're seeing is consumers are

457
00:25:58,040 --> 00:26:02,920
Speaker 2: gravitating more and more towards jewelery and handbags, which are

458
00:26:03,040 --> 00:26:06,239
Speaker 2: much more expensive. And the reason for this that we

459
00:26:06,280 --> 00:26:09,520
Speaker 2: can the juice is due to their resale value being

460
00:26:09,600 --> 00:26:12,240
Speaker 2: much higher. So we're seeing the rise of what we

461
00:26:12,320 --> 00:26:16,359
Speaker 2: call the trendy, the streets consumer. You know, someone who's

462
00:26:16,400 --> 00:26:20,680
Speaker 2: doing research and really understanding what's going to resell later

463
00:26:20,720 --> 00:26:21,920
Speaker 2: and have greater value.

464
00:26:22,200 --> 00:26:24,640
Speaker 1: So I mean there's also maybe, you know, for something

465
00:26:24,720 --> 00:26:27,320
Speaker 1: under ten thousand rand, you walk past the shop window,

466
00:26:27,440 --> 00:26:29,960
Speaker 1: you walk past it again, it catches your eye again.

467
00:26:30,480 --> 00:26:34,440
Speaker 1: It's not so much a sort of instinct purchase or

468
00:26:34,480 --> 00:26:37,359
Speaker 1: an impulse purchase, but maybe in the course of a

469
00:26:37,359 --> 00:26:39,879
Speaker 1: week you've taken the decision to buy it for something

470
00:26:39,920 --> 00:26:43,639
Speaker 1: bigger than that luxury handbag. You're looking at resale values,

471
00:26:43,680 --> 00:26:46,120
Speaker 1: you're doing some serious research beforehand, You're taking a lot

472
00:26:46,160 --> 00:26:49,520
Speaker 1: more time over the decision exactly.

473
00:26:49,640 --> 00:26:52,879
Speaker 2: And that's what's happening. Customers are not only taking time

474
00:26:52,920 --> 00:26:54,800
Speaker 2: to see, you know, can I afford it, but they're

475
00:26:54,800 --> 00:26:57,880
Speaker 2: also starting to understand what is it going to resell for.

476
00:26:58,200 --> 00:27:01,479
Speaker 2: So traditionally, if we look at the most popular brand

477
00:27:02,119 --> 00:27:05,680
Speaker 2: in South Africa, Groucci and Louis Verton were really the heavyweights.

478
00:27:05,840 --> 00:27:09,280
Speaker 2: They were making up one third of searchers on our website,

479
00:27:09,520 --> 00:27:12,160
Speaker 2: and this is across hundreds of thousands of searchers a month,

480
00:27:12,480 --> 00:27:14,560
Speaker 2: so they were making up one third of all of

481
00:27:14,640 --> 00:27:17,600
Speaker 2: the search traffic. Now this year is the first year

482
00:27:17,600 --> 00:27:21,200
Speaker 2: they've dropped, and they've dropped substantially down to just twenty percent.

483
00:27:21,640 --> 00:27:25,879
Speaker 2: And smaller brands, particularly brands that hold their resale value

484
00:27:26,240 --> 00:27:30,359
Speaker 2: more have started to materialize. So brands like Rolex, brands

485
00:27:30,400 --> 00:27:33,520
Speaker 2: like a Mares, brands like Chanel, those really hold their

486
00:27:33,560 --> 00:27:37,040
Speaker 2: resale value and that's what the consumers starting to buy into.

487
00:27:37,240 --> 00:27:39,560
Speaker 2: So I think it speaks to this narrative that the

488
00:27:39,600 --> 00:27:42,680
Speaker 2: consumer is not only looking for what's popular, but they're

489
00:27:42,720 --> 00:27:46,480
Speaker 2: also looking more from an investment mindset, where I want

490
00:27:46,520 --> 00:27:49,000
Speaker 2: to make sure I'm making a purchase that can give

491
00:27:49,040 --> 00:27:51,679
Speaker 2: me some kind of a return or at least I

492
00:27:51,680 --> 00:27:54,119
Speaker 2: would lose so much if I'm looking to sell it

493
00:27:54,200 --> 00:27:55,160
Speaker 2: back into the future.

494
00:27:56,040 --> 00:27:58,320
Speaker 1: How important is it for people to know what it

495
00:27:58,400 --> 00:28:02,680
Speaker 1: is that you have? And I mean this gets quite complicated.

496
00:28:02,680 --> 00:28:05,840
Speaker 1: There are people who spend hours looking at what websites

497
00:28:05,880 --> 00:28:10,560
Speaker 1: and you know what did Johann what's his name? You

498
00:28:10,600 --> 00:28:13,440
Speaker 1: know who? I mean, where today and that kind of thing.

499
00:28:14,160 --> 00:28:16,040
Speaker 1: I mean, I find that a bit bizarre in a way,

500
00:28:16,080 --> 00:28:19,640
Speaker 1: but I can understand the interest does what you were

501
00:28:19,680 --> 00:28:23,360
Speaker 1: wearing still sort of attract people to particular brands.

502
00:28:24,480 --> 00:28:27,680
Speaker 2: I think so. So South Africa has a very aspirational

503
00:28:27,760 --> 00:28:30,440
Speaker 2: culture and it's quite different to the Western world. So

504
00:28:30,480 --> 00:28:32,800
Speaker 2: I think in the West, you know, they gravitate very

505
00:28:32,840 --> 00:28:36,520
Speaker 2: much to celebrities and trends, whereas in South Africa we

506
00:28:36,600 --> 00:28:40,920
Speaker 2: found that the consumer generally gravitates multi status. So it

507
00:28:40,960 --> 00:28:42,880
Speaker 2: wasn't so much you know, what is X, Y and

508
00:28:43,000 --> 00:28:45,760
Speaker 2: Z and celebrity wearing, but it was more about when

509
00:28:45,800 --> 00:28:48,480
Speaker 2: I'm wearing this brand, I want to make sure that

510
00:28:48,600 --> 00:28:51,200
Speaker 2: it's very obvious. I want to make sure that everyone

511
00:28:51,240 --> 00:28:53,680
Speaker 2: can recognize that it's a Louis Vuitton or a Gucci.

512
00:28:53,960 --> 00:28:57,880
Speaker 2: So generally speaking, the louder brand performed far better in

513
00:28:57,960 --> 00:29:01,000
Speaker 2: South Africa than what we're seeing in the western, more

514
00:29:01,080 --> 00:29:05,200
Speaker 2: established markets. However, this trend is also starting to change

515
00:29:05,360 --> 00:29:08,360
Speaker 2: more and more, where we're seeing some of the quieter

516
00:29:08,560 --> 00:29:12,040
Speaker 2: brands growing at a faster rate than some of them

517
00:29:12,360 --> 00:29:14,840
Speaker 2: louder brands. So I think that speaks to a mature

518
00:29:14,840 --> 00:29:18,800
Speaker 2: in consumer But overall, in South Africa, definitely, you know,

519
00:29:18,880 --> 00:29:22,200
Speaker 2: the louder, flashier brands hold the largest sway of the

520
00:29:22,280 --> 00:29:25,680
Speaker 2: market or more popular are more popular amount the consumers.

521
00:29:26,200 --> 00:29:29,800
Speaker 1: A quieter brand, I put that in inverted comments carries

522
00:29:29,840 --> 00:29:33,760
Speaker 1: its own power because it's kind of suggesting that I'm

523
00:29:33,800 --> 00:29:36,240
Speaker 1: more discerning, isn't it. I mean it doesn't it say

524
00:29:37,000 --> 00:29:39,880
Speaker 1: I don't need to show off, but you're showing off

525
00:29:40,200 --> 00:29:41,520
Speaker 1: that you don't need to show off.

526
00:29:42,600 --> 00:29:45,360
Speaker 2: Yes, I think so it holds. It holds a value

527
00:29:45,400 --> 00:29:48,560
Speaker 2: to a certain segment of the market, which is you know,

528
00:29:48,600 --> 00:29:52,560
Speaker 2: a lot more of you know, they focus on the heritage.

529
00:29:52,800 --> 00:29:55,760
Speaker 2: It's more generational wealth. You know, it's not just this,

530
00:29:56,440 --> 00:29:59,120
Speaker 2: you know what we call old money versus new money.

531
00:29:59,320 --> 00:30:02,479
Speaker 2: And the interest thing actually is last year we did

532
00:30:02,520 --> 00:30:06,400
Speaker 2: a report on you know, Cape Town verus Johannesburg, and

533
00:30:06,440 --> 00:30:09,560
Speaker 2: what we actually found is Johannesburg was gravitating a lot

534
00:30:09,640 --> 00:30:13,080
Speaker 2: more to louder brands than Cape Town and in general,

535
00:30:13,400 --> 00:30:17,440
Speaker 2: although people in Johannesburg and Halteng region at least were

536
00:30:17,480 --> 00:30:20,600
Speaker 2: purchasing a lot more frequently in terms of items, they

537
00:30:20,640 --> 00:30:24,680
Speaker 2: were purchasing lower value items, whereas the Capetonians or Western

538
00:30:24,720 --> 00:30:28,560
Speaker 2: Cape in general was purchasing more expensive items and more

539
00:30:28,600 --> 00:30:31,040
Speaker 2: from the quieter brands. So I think it speaks to

540
00:30:31,400 --> 00:30:35,560
Speaker 2: you know the difference of the cities and the makeup

541
00:30:35,600 --> 00:30:38,360
Speaker 2: of the demographics, and you know the economies, et cetera.

542
00:30:39,080 --> 00:30:42,120
Speaker 1: Is there a kind of older money thing in Cape Town? Maybe?

543
00:30:43,000 --> 00:30:45,600
Speaker 2: Well, I mean the data seems to suggest that, at

544
00:30:45,640 --> 00:30:48,240
Speaker 2: least from a preference point of view, Like I mentioned,

545
00:30:48,240 --> 00:30:53,160
Speaker 2: the Western societies, generally, the the move is more to

546
00:30:53,240 --> 00:30:56,000
Speaker 2: the stuff wealth and the younger generations or your first

547
00:30:56,040 --> 00:31:00,160
Speaker 2: purchase with the more of these more flashier brand. South

548
00:31:00,200 --> 00:31:05,800
Speaker 2: Africa certainly the dominating the searchers are for more flashy items.

549
00:31:05,800 --> 00:31:09,040
Speaker 2: When we look even within the brand, the items that

550
00:31:09,200 --> 00:31:11,520
Speaker 2: are within each brand are the louder ones. So it

551
00:31:11,680 --> 00:31:14,640
Speaker 2: suggests that in South Africa the market is more tuned

552
00:31:14,680 --> 00:31:17,760
Speaker 2: to that new money kind of culture. But in the

553
00:31:17,800 --> 00:31:21,040
Speaker 2: Western Cape at least, that that shift isn't as prominent

554
00:31:21,120 --> 00:31:22,520
Speaker 2: as it is in how.

555
00:31:22,520 --> 00:31:25,640
Speaker 1: Tech consumers change as they get older, right, I mean,

556
00:31:26,000 --> 00:31:27,720
Speaker 1: it must be interesting to sort of I don't know

557
00:31:27,720 --> 00:31:29,600
Speaker 1: if you're able to keep this kind of data, you know,

558
00:31:29,680 --> 00:31:31,520
Speaker 1: the age of a customer. I mean, you're not going

559
00:31:31,560 --> 00:31:33,200
Speaker 1: to ask them how all they are the checkout, well

560
00:31:33,240 --> 00:31:36,240
Speaker 1: I hope not, and sort of see what they're buying

561
00:31:36,240 --> 00:31:38,560
Speaker 1: as opposed to what a younger person is buying. So

562
00:31:38,600 --> 00:31:41,040
Speaker 1: someone coming into your stores for the first time, first

563
00:31:41,080 --> 00:31:45,760
Speaker 1: luxury purchase, probably not going to be something very expensive,

564
00:31:45,880 --> 00:31:47,720
Speaker 1: just going to get a taste for it, but you know,

565
00:31:47,840 --> 00:31:51,200
Speaker 1: something they want to do with their brand and then

566
00:31:51,520 --> 00:31:53,840
Speaker 1: sort of you know, go from there and kind of

567
00:31:53,920 --> 00:31:56,440
Speaker 1: mature as a customer into luxury if they stay in

568
00:31:56,440 --> 00:31:59,560
Speaker 1: that income bracket. I mean, you must see customers coming

569
00:31:59,600 --> 00:32:00,880
Speaker 1: back and changing as they do.

570
00:32:00,920 --> 00:32:04,760
Speaker 2: That certainly, but I think there are some you know,

571
00:32:04,840 --> 00:32:08,080
Speaker 2: intricacies there, especially when we're talking about South Africa. So

572
00:32:08,440 --> 00:32:12,320
Speaker 2: in South Africa, you really have a much smaller age

573
00:32:12,560 --> 00:32:16,800
Speaker 2: band of consumer because the goods are relatively much more

574
00:32:16,840 --> 00:32:21,560
Speaker 2: expensive versus our earning capacity. So what we see in

575
00:32:21,600 --> 00:32:24,640
Speaker 2: South Africa is, you know, the consumer really starts around

576
00:32:24,680 --> 00:32:27,400
Speaker 2: thirty five generally and then goes up to you know,

577
00:32:27,560 --> 00:32:30,880
Speaker 2: around sixty for the majority of the consumers. And so

578
00:32:30,960 --> 00:32:34,160
Speaker 2: that's a much tighter age like age band than we're

579
00:32:34,200 --> 00:32:36,440
Speaker 2: seeing when we look at the Western data, which you

580
00:32:36,440 --> 00:32:39,120
Speaker 2: know starts even at eighteen years old for the pre

581
00:32:39,200 --> 00:32:42,400
Speaker 2: owned segment. But within that age band, definitely there are

582
00:32:42,480 --> 00:32:45,800
Speaker 2: some changes, but the majority of the consumers are currently

583
00:32:45,840 --> 00:32:48,440
Speaker 2: coming in in that like thirty five to three five segment,

584
00:32:48,640 --> 00:32:53,320
Speaker 2: so that's the dominant part of the market. What is interesting, however,

585
00:32:53,560 --> 00:32:56,800
Speaker 2: is how we've seen the market evolve in terms of

586
00:32:56,840 --> 00:33:00,920
Speaker 2: pre owned. Five years ago, there was this very very

587
00:33:01,120 --> 00:33:04,880
Speaker 2: specific split between those who were buying and those who

588
00:33:04,880 --> 00:33:09,640
Speaker 2: were selling. However, nowadays it's very mixed. So we have people,

589
00:33:09,800 --> 00:33:13,320
Speaker 2: we have consumers that are essentially you know, unlimited wealth,

590
00:33:13,600 --> 00:33:18,080
Speaker 2: ultra high network with individuals that could purchase anything new,

591
00:33:18,280 --> 00:33:21,120
Speaker 2: but they're still choosing to buy pre owned more and

592
00:33:21,160 --> 00:33:24,400
Speaker 2: more because of sustainability and also because of access to

593
00:33:24,480 --> 00:33:27,920
Speaker 2: limited edition items or items not available in South Africa.

594
00:33:28,160 --> 00:33:30,520
Speaker 2: So there's definitely a shift in terms of the mentality

595
00:33:30,560 --> 00:33:35,160
Speaker 2: overall more towards this idea of commercializing pre owned and

596
00:33:35,320 --> 00:33:37,080
Speaker 2: in jewelry.

597
00:33:37,440 --> 00:33:39,960
Speaker 1: Obviously the gold prices you know, sold through the roof,

598
00:33:40,360 --> 00:33:43,200
Speaker 1: has that had any impact on what people are actually buying?

599
00:33:43,200 --> 00:33:45,480
Speaker 1: Do people maybe want to be seen in a bit

600
00:33:45,520 --> 00:33:48,800
Speaker 1: of gold? Was that not really done well?

601
00:33:48,840 --> 00:33:52,080
Speaker 2: I don't think it's materialized yet in the pre owned market.

602
00:33:52,400 --> 00:33:56,080
Speaker 2: I think because we're selling brands, the brands essentially are

603
00:33:56,160 --> 00:34:00,720
Speaker 2: updating their prices, you know, twice a year, so there's

604
00:34:00,840 --> 00:34:03,680
Speaker 2: gold prices have certainly been spiking, but because we have

605
00:34:03,800 --> 00:34:07,000
Speaker 2: kind of a lag effect in terms of the price adjustment,

606
00:34:07,240 --> 00:34:09,880
Speaker 2: it hasn't come through to the pre owned market yet,

607
00:34:10,200 --> 00:34:13,759
Speaker 2: but certainly in the next year or half a year,

608
00:34:13,840 --> 00:34:16,000
Speaker 2: that's really going to start making a big impact on

609
00:34:16,120 --> 00:34:18,600
Speaker 2: the new market and immediately on the pre owned market.

610
00:34:18,840 --> 00:34:20,799
Speaker 2: So I think there's a great value in that. And

611
00:34:20,880 --> 00:34:24,720
Speaker 2: actually jewelry interest in jury, or at least jewelry sales

612
00:34:24,719 --> 00:34:27,600
Speaker 2: were up forty seven percent in the last year, which

613
00:34:27,680 --> 00:34:31,040
Speaker 2: was the record for any category across all the categories

614
00:34:31,040 --> 00:34:33,839
Speaker 2: we serve. So certainly consumers are moving more and more

615
00:34:33,840 --> 00:34:36,560
Speaker 2: into jewelry, and that's likely because they're seeing it more

616
00:34:36,560 --> 00:34:38,960
Speaker 2: as an asset purchase than just a fashion trend.

617
00:34:39,719 --> 00:34:42,160
Speaker 1: So interesting, I mean, any idea of what's likely to

618
00:34:42,200 --> 00:34:44,279
Speaker 1: sort of happen this year. I mean, some of these

619
00:34:44,320 --> 00:34:47,920
Speaker 1: trends that are obviously continue and push through twenty twenty six,

620
00:34:49,040 --> 00:34:51,759
Speaker 1: there might be a little bit more money coming into

621
00:34:51,800 --> 00:34:55,840
Speaker 1: the economy. But people once they've become kind of conscious

622
00:34:55,920 --> 00:34:58,799
Speaker 1: of how to invest in the space, or how to

623
00:34:58,880 --> 00:35:01,280
Speaker 1: buy something they want and use it as an investment

624
00:35:01,480 --> 00:35:03,359
Speaker 1: or at the real least keep its value. I mean,

625
00:35:03,400 --> 00:35:04,799
Speaker 1: once you get that to it, you're never going to

626
00:35:04,840 --> 00:35:07,080
Speaker 1: lose it exactly.

627
00:35:07,120 --> 00:35:11,000
Speaker 2: I think what's interesting is that although you know, we've

628
00:35:11,320 --> 00:35:13,960
Speaker 2: we've kind of been working in this exponential in South

629
00:35:13,960 --> 00:35:17,200
Speaker 2: Africa where we've had the prices increasing very fast in

630
00:35:17,200 --> 00:35:19,839
Speaker 2: the luxury industry because it's been high demand and high

631
00:35:19,880 --> 00:35:22,200
Speaker 2: growth over the last five years. And at the same time,

632
00:35:22,239 --> 00:35:25,520
Speaker 2: over the last five years, we've had our currency deteriorating

633
00:35:25,880 --> 00:35:29,000
Speaker 2: really fast, so it's kind of had this exponential effect

634
00:35:29,040 --> 00:35:31,560
Speaker 2: on the pricing and then also the prices in the

635
00:35:31,600 --> 00:35:34,239
Speaker 2: pre owned market. And what we've seen actually this year

636
00:35:34,280 --> 00:35:37,360
Speaker 2: is because the new market's a bit softer, the price

637
00:35:37,440 --> 00:35:42,040
Speaker 2: increases haven't been that high. And additionally, the rand is strengthening,

638
00:35:42,160 --> 00:35:45,000
Speaker 2: so that's also limiting the price increases in South Africa.

639
00:35:45,040 --> 00:35:48,040
Speaker 2: So I think it's really quite stable at the stage.

640
00:35:48,160 --> 00:35:51,239
Speaker 2: Obviously we're going to see how the gold prices and

641
00:35:51,280 --> 00:35:54,520
Speaker 2: that come into effect with jewelry and some watches, but

642
00:35:54,640 --> 00:35:57,320
Speaker 2: it's quite a stable market. And I think that now's

643
00:35:57,360 --> 00:36:01,319
Speaker 2: really a moment to consider, you know, cost compare, because

644
00:36:01,320 --> 00:36:04,160
Speaker 2: we don't have all of these ideas of moving and

645
00:36:04,200 --> 00:36:07,760
Speaker 2: really looking at your wardrobe, what's worth selling, what's worth keeping,

646
00:36:08,280 --> 00:36:10,799
Speaker 2: and starting to understand the market, because it's really not

647
00:36:10,920 --> 00:36:13,200
Speaker 2: that wild right now as it was let's say a

648
00:36:13,239 --> 00:36:15,640
Speaker 2: year or two ago, where it was quite difficult to

649
00:36:15,680 --> 00:36:17,200
Speaker 2: follow unless you're doing it full time.

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Speaker 1: Michael Zahire, thanks so much, co founder of Luxity. Really

651
00:36:20,719 --> 00:36:26,239
Speaker 1: appreciate it. Stephen, taking your calls on one one eight

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00:36:26,320 --> 00:36:30,520
Speaker 1: three seven two. Time for the Friday Biz Blitz on

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00:36:30,680 --> 00:36:32,840
Speaker 1: The Money Show tonight. You know how it works. We

654
00:36:32,920 --> 00:36:35,120
Speaker 1: put out a question. You phone us on a double

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00:36:35,160 --> 00:36:38,239
Speaker 1: one double A three seven o two two one four

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00:36:38,239 --> 00:36:41,160
Speaker 1: four six five six seven. If you get it right,

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00:36:41,520 --> 00:36:43,520
Speaker 1: we move on to the next question. If you get

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00:36:43,560 --> 00:36:47,320
Speaker 1: it wrong, we move on to the next caller. Okay,

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00:36:47,360 --> 00:36:51,480
Speaker 1: first question on the Friday BIS Blitz tonight. Which South

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00:36:51,520 --> 00:36:56,800
Speaker 1: African is Donald Trump threatening to sue this week? Which

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00:36:56,840 --> 00:37:00,879
Speaker 1: South African is Donald Trump threatening to sue this week? Oh?

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00:37:00,880 --> 00:37:05,399
Speaker 1: Double one double are seven two two one four four six,

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00:37:05,840 --> 00:37:08,279
Speaker 1: five six seven. The Money Show with Stephen Curtis is

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00:37:08,280 --> 00:37:11,440
Speaker 1: brought to you by Absent Corporate and Investment Banking balancing

665
00:37:11,520 --> 00:37:15,280
Speaker 1: economic growth with ecosystems. That's how they're invested in your story.

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00:37:16,320 --> 00:37:19,919
Speaker 1: The Money Show Friday b is lit. First question, which

667
00:37:19,960 --> 00:37:22,919
Speaker 1: South African is Donald Trump? Threatening to sue this week.

668
00:37:23,040 --> 00:37:28,120
Speaker 1: Let's go to Timpisa, France. I Hi, Hi, I'm well,

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00:37:28,120 --> 00:37:29,000
Speaker 1: go for it, France.

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00:37:29,920 --> 00:37:30,480
Speaker 4: I'm good.

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00:37:31,880 --> 00:37:32,600
Speaker 1: What's the answer?

672
00:37:33,800 --> 00:37:35,000
Speaker 4: Tvor Noah?

673
00:37:35,040 --> 00:37:36,680
Speaker 1: It is Trevor Noah. Do you know why?

674
00:37:38,320 --> 00:37:38,480
Speaker 4: Yay?

675
00:37:38,560 --> 00:37:43,160
Speaker 1: Because we spoke about him at the Grammys. That's right,

676
00:37:43,200 --> 00:37:45,839
Speaker 1: all right, France. Next question, here we go. What's the

677
00:37:45,920 --> 00:37:49,440
Speaker 1: name of the bank that operates across Africa that South

678
00:37:49,480 --> 00:37:56,680
Speaker 1: Africa finally joined this week? What's it called? Uh? My word,

679
00:37:57,719 --> 00:38:00,920
Speaker 1: can you repeat that again? Let's me think rans very quickly.

680
00:38:00,960 --> 00:38:03,280
Speaker 1: What's the name of the bank that operates across Africa

681
00:38:03,320 --> 00:38:10,560
Speaker 1: that we finally joined this week? What's it called? I'm sorry, France.

682
00:38:10,680 --> 00:38:14,760
Speaker 1: Let's go to Ketto Metza in four ways, Kitto Metza.

683
00:38:14,880 --> 00:38:15,439
Speaker 1: Do you know.

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00:38:17,400 --> 00:38:18,960
Speaker 3: I'm just going to tick a world year.

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00:38:19,120 --> 00:38:20,719
Speaker 5: I don't know. Sard Bank.

686
00:38:21,400 --> 00:38:28,000
Speaker 1: Sorry, Let's go to cat in Hyde Park. Hi, Cat, Hi?

687
00:38:28,040 --> 00:38:31,920
Speaker 2: Is it the African Export Bank?

688
00:38:31,960 --> 00:38:34,759
Speaker 1: You're like so nearly there, Cat, I'm going to give

689
00:38:34,760 --> 00:38:36,080
Speaker 1: you another guess.

690
00:38:36,480 --> 00:38:39,040
Speaker 2: Say it again, export Import.

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00:38:40,000 --> 00:38:43,040
Speaker 1: I'm looking at the judges. Yeah, Cat, We're going to

692
00:38:43,080 --> 00:38:47,800
Speaker 1: give it to you. It's the It's the African Export

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00:38:47,960 --> 00:38:54,880
Speaker 1: Import back. Okay, next question. According to which when you

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00:38:54,920 --> 00:38:58,600
Speaker 1: look at let me start again at Starbucks? How many

695
00:38:58,640 --> 00:39:03,200
Speaker 1: combinations of drink can you get at a Starbucks? Is

696
00:39:03,239 --> 00:39:08,080
Speaker 1: it twenty? Just over eighty thousand or one million? How

697
00:39:08,120 --> 00:39:14,920
Speaker 1: many combinations of drink can you get? It as Starbucks twenty? Sorry, cats,

698
00:39:14,920 --> 00:39:20,640
Speaker 1: it's not twenty. How many combinations of drink can you

699
00:39:20,680 --> 00:39:23,960
Speaker 1: get at a Starbucks? Twenty? Just over eighty thousand or

700
00:39:24,000 --> 00:39:29,720
Speaker 1: one million? Nastier in Joe Burg High Hi, I'm well

701
00:39:29,760 --> 00:39:31,520
Speaker 1: all right, what do you think the answer is?

702
00:39:33,600 --> 00:39:36,040
Speaker 5: Can you see your piece of second number?

703
00:39:36,560 --> 00:39:39,840
Speaker 1: How many combinations of drink can you get at Starbucks twenty?

704
00:39:40,440 --> 00:39:42,760
Speaker 1: Just over eighty thousand or one million?

705
00:39:43,840 --> 00:39:45,440
Speaker 5: Is it just over eighty thousand?

706
00:39:46,160 --> 00:39:52,200
Speaker 1: Nasia? It is Nasia. It is just over eighty thousand. Congratulations,

707
00:39:52,200 --> 00:40:06,360
Speaker 1: you're a winner on a Friday business's last year is

708
00:40:06,400 --> 00:40:07,840
Speaker 1: the winner? And at seven o'clock