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Speaker 1: The Money Show, Arthur Harris's portfolio manager at Macro Solutions

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Speaker 1: at the old mutual investment Group, Arthur good Evening. One

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Speaker 1: or two things to pick through. I mean FNB a

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Speaker 1: few big changes there, a bit of a restructuring. Harry

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Speaker 1: Kellen steps down. He's sort of taking earlier retirement on

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Speaker 1: the CEO for two years. How do you view all

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Speaker 1: of that?

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Speaker 2: Well, First National Bank or First Round as a whole

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Speaker 2: has got a very strong bench of really good managers

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Speaker 2: in their underlying businesses. So often the people that they

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Speaker 2: point to the chief executives of their major divisions are

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Speaker 2: people that are in the running to be CEO of

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Speaker 2: the group at some time. So I would pay attention

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Speaker 2: to these management changes. It's telling you who the next

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Speaker 2: generation is that the top leadership is going to come from.

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Speaker 2: Harry isn't an interesting situation. He was chief financial officer

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Speaker 2: of Good Group for about ten years before he kind

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Speaker 2: of took a sideways, more than operational role. I guess

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Speaker 2: you could call it in running that business, and perhaps

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Speaker 2: I don't had exact reasoning behind it, but perhaps it

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Speaker 2: was a bit of a filling a gap while I

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Speaker 2: waited for the right person to run the bank.

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Speaker 1: The other big move Nati Kersh obviously as South African

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Speaker 1: made the point earlier. His brother is he found at

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Speaker 1: the company that founded this radio station, his Jetro food

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Speaker 1: service business. He's selling it to Cisco. This is really

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Speaker 1: primarily an American deal.

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Speaker 3: Quite a lot of money involved, yes, the husteal turning

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Speaker 3: on billion dollars and Natty Kersh I believe owns about

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Speaker 3: seventy five percent of that business, so in his nineties,

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Speaker 3: so looking I guess to settle up his business affairs.

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Speaker 2: It's been a very successful business. It's been there for

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Speaker 2: a very very long time. It would potentially have made

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Speaker 2: a really good or an interesting acquisition for the Soyth

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Speaker 2: African bidcourt business, which is the same in the same industry.

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Speaker 2: But the hot Bit Corps was eight billion dollars, so

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Speaker 2: that would have been a pretty pretty hard deal for

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Speaker 2: them to get done.

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Speaker 1: On the markets today, oil obviously stronger. Aluminium prices up

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Speaker 1: because of that Iranian attack in the Middle East and

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Speaker 1: that pushed out thirty two up quite strong.

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Speaker 2: Me well, aluminium. The key thing was aluminium is impact energy.

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Speaker 2: So box site is plentiful, it's not very expensive, but

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Speaker 2: what you need is energy to convert it. If you remember,

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Speaker 2: we've got these these aluminium smelters in Richard's Bay that

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Speaker 2: are all about when that put together, when ESCOM had

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Speaker 2: excess energy, so we imported the baux site, we smelted it,

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Speaker 2: so effectively we're exporting energy. So when the price of

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Speaker 2: energy starts to go up, then the price of aluminium

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Speaker 2: has to tack up to take that into account. If therefore,

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Speaker 2: you've got a lot of these aluminium plants in the

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Speaker 2: in the Middle East where there's lots of plentiful energy

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Speaker 2: close by, so that's having an impact on the aluminium

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Speaker 2: price if you very much.

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Speaker 1: Indeed. Arthur Carriss, portfolio manager at Macro Solutions at the

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Speaker 1: Old Mutual Investment Group