WEBVTT - Eskom’s Virtual Wheeling Shift and What It Means for the Power Sector 0:00:01.480 --> 0:00:05.720 And now The Money Show with Stephen credits on seven 0:00:05.760 --> 0:00:06.160 oh two. 0:00:06.680 --> 0:00:07.600 Let's walk little. 0:00:07.760 --> 0:00:09.760 The Money Show with Stephen Curtis has brought to you 0:00:09.760 --> 0:00:13.760 by Abscess CIB Proud Sole Leader Ranger and Infrastructure Finance 0:00:13.880 --> 0:00:17.400 Structuring Agent of the South African National Treasuries eleven point 0:00:17.440 --> 0:00:21.200 eight billion round Infrastructure and Development Finance Bond. Good evening, 0:00:21.200 --> 0:00:24.000 Welcome to the program. I'm Stephen Curtis. Eight minutes after six. 0:00:24.079 --> 0:00:27.040 This's Friday, the sort of last serious money Friday. I 0:00:27.080 --> 0:00:30.400 suppose trade looking a little light on the JAZ still 0:00:30.400 --> 0:00:32.839 interesting to watch some of the trends though, and wherever 0:00:32.880 --> 0:00:35.440 I look at the moment, people are talking about next year. 0:00:35.520 --> 0:00:36.839 That's fair. You would expect that. 0:00:37.320 --> 0:00:39.720 And they're all very optimistic in some of the most 0:00:39.720 --> 0:00:43.000 extraordinary ways. We've seen a lot of optimism for South Africa. 0:00:43.040 --> 0:00:46.760 Reuters has a big piece today about optimism for emerging 0:00:46.800 --> 0:00:48.879 markets through part of that, of course, and all of 0:00:48.920 --> 0:00:52.120 that looking very very positive. I realize, of course that 0:00:52.159 --> 0:00:55.720 one year doth not as summer make to really mangle 0:00:55.760 --> 0:00:58.760 my metaphors, but it does sort of suggest there's a 0:00:58.800 --> 0:01:01.520 lot of positivity around. I think it's also because we've 0:01:01.560 --> 0:01:04.240 been waiting for so long for the wild to kind 0:01:04.240 --> 0:01:06.200 of turn, and with a little bit of luck, it 0:01:06.319 --> 0:01:08.479 is beginning to turn. So that's part of a talking 0:01:08.520 --> 0:01:10.840 of which we'll speak to Chris y Ellend in a moment. 0:01:10.920 --> 0:01:13.360 You know you hear that for that name. We're going 0:01:13.440 --> 0:01:16.160 to talk about Eskim, but it's about virtual wheeling and 0:01:16.280 --> 0:01:19.280 Escam's made a big move on that score. You'll have 0:01:19.360 --> 0:01:23.080 been watching the Warner Brothers Discovery issue. Netflix wants to 0:01:23.160 --> 0:01:26.039 merge with it, Paramount wants to buy it, but what 0:01:26.080 --> 0:01:29.160 that means for you? And then the future of DStv. 0:01:29.280 --> 0:01:32.000 Tinnis Ferrera, the TV critic. He'll be on your radio 0:01:32.040 --> 0:01:36.280 in about ten minutes. We'll get some market commentary with Lukmgoni. 0:01:36.319 --> 0:01:39.360 He's been looking forward to next year as well. And 0:01:39.400 --> 0:01:42.960 then also we'll on Friday File just talk a little 0:01:43.000 --> 0:01:48.520 bit about holidays, how to basically avoid common mistakes, particularly 0:01:48.560 --> 0:01:53.200 while you're traveling. Sibisum quanazis travel right. And then don't 0:01:53.200 --> 0:01:56.840 forget the Friday Biz Blitz as well. Before seven o'clock, 0:01:56.880 --> 0:01:58.720 Good year from you, O double one double A three 0:01:58.760 --> 0:02:01.360 oh seven O two and two one four four, six 0:02:01.480 --> 0:02:04.440 of five six seven The Lney Show. 0:02:04.320 --> 0:02:08.080 With Stephen Krudis live on ninety two point seven and 0:02:08.200 --> 0:02:11.440 one six FM, streaming on the Prime Media Plus NAP 0:02:11.680 --> 0:02:14.200 and DStv channel eight five six. 0:02:14.320 --> 0:02:16.880 On the point of holidays, I've often wondered, how often 0:02:16.960 --> 0:02:19.320 is it that you go online, you look at the rooms, 0:02:19.320 --> 0:02:21.960 you look at the attractions, the water slides, whatever it is, 0:02:22.280 --> 0:02:24.480 and you think, I'm going to go there? And how 0:02:24.520 --> 0:02:28.679 often is it as good as it looks? And strangely, 0:02:28.720 --> 0:02:31.120 because of the review system on so many websites, you 0:02:31.160 --> 0:02:34.640 know they have good, bad, sort of ugly reviews, you 0:02:34.680 --> 0:02:36.799 can actually get a pretty accurate picture of how good 0:02:36.840 --> 0:02:38.680 it is. I mean, there's one place I've been to 0:02:38.760 --> 0:02:41.120 I won't name it, which was so appalling, and from 0:02:41.160 --> 0:02:43.240 time to time, when I'm bored or feeling miserable, I'll 0:02:43.240 --> 0:02:45.880 go and read the reviews just to see what it's like. 0:02:45.960 --> 0:02:47.680 And I mean, it's an art form to write a 0:02:47.720 --> 0:02:50.640 bad review. I'm sure you've done the same. I know 0:02:50.720 --> 0:02:55.000 there's a small literary niche genre of Amazon Amazon reviews. 0:02:55.000 --> 0:02:57.360 People write whole stories and have soap operas in the 0:02:57.360 --> 0:03:01.720 review section sometimes. But if I may ask, your best 0:03:01.880 --> 0:03:06.359 and worst holiday surprise compared to what you are expecting 0:03:06.760 --> 0:03:09.520 and what you actually got. Your best and worst please 0:03:09.560 --> 0:03:13.560 on seven to seven O two one seven two. Maybe 0:03:13.600 --> 0:03:16.120 don't mention the name of the place, but just the 0:03:16.200 --> 0:03:18.840 story would be good. Your best and worst holiday surprise 0:03:19.639 --> 0:03:20.519 The Money. 0:03:20.240 --> 0:03:24.960 Show on seven os Monday till Friday, six to a pm, 0:03:25.160 --> 0:03:28.240 eleven after six Well a fascinating explanation of quite an 0:03:28.280 --> 0:03:32.079 important development by Eskim and the concept of virtual wheeling 0:03:32.160 --> 0:03:35.240 today from the energy expert christieland He says Eskim has 0:03:35.280 --> 0:03:36.800 started a process. 0:03:36.560 --> 0:03:39.280 To build a platform that will manage the way power 0:03:39.360 --> 0:03:42.400 is moved from one place to another and then sold. 0:03:42.440 --> 0:03:45.560 In that movement of the power from producer A to 0:03:45.640 --> 0:03:48.480 customer B is what is known as wheeling. For Chris 0:03:48.640 --> 0:03:51.520 eland Is the is the energy analyst, and he joins us, Now, Chris, 0:03:51.600 --> 0:03:54.720 good evening. I understand what wheeling is, but you're going 0:03:54.760 --> 0:03:57.800 to have to start I'm afraid by explaining what virtual 0:03:58.080 --> 0:03:58.800 wheeling is. 0:04:00.080 --> 0:04:05.520 Now A good evening, Steven look. The traditional wheeling generally 0:04:05.560 --> 0:04:09.640 takes place between a large generator or independent power producer 0:04:09.640 --> 0:04:13.360 of renewal energy and a large off takeout, which could 0:04:13.400 --> 0:04:15.560 be a mine or an industry et cetera. So it's 0:04:15.560 --> 0:04:19.720 what we call one to one wheeling using the transmission 0:04:19.720 --> 0:04:24.360 to the ESKIM network as the transport vehicle. Now, a 0:04:24.480 --> 0:04:29.720 virtual wheeling takes this concept from a generator or a 0:04:29.800 --> 0:04:34.560 number of generators to literally thousands and thousands of customers 0:04:35.480 --> 0:04:39.600 embedded both in the ESCAM networks as well as in 0:04:39.839 --> 0:04:46.200 municipal distribution network. And basically it enables the company, a 0:04:46.240 --> 0:04:50.719 corporate entity or a trader contracts, whether a generator or 0:04:50.800 --> 0:04:57.279 multiple generators, to deliver electricity through the ESKIMA municipal network 0:04:57.360 --> 0:05:03.919 to literally thousands of And it's not actually a physical 0:05:04.480 --> 0:05:08.760 delivery process. It's a virtual delivery process in the sense 0:05:08.800 --> 0:05:12.760 that what one is really doing is one's allocating the 0:05:12.960 --> 0:05:17.080 energy generated by one or more generators to literally thousands 0:05:17.120 --> 0:05:20.080 of off takers. And one has to have an electricity 0:05:20.120 --> 0:05:22.760 meta at these thousands of off takers. One has to 0:05:22.839 --> 0:05:26.839 measure these the energy delivered to these off takers in 0:05:26.920 --> 0:05:31.320 real time, and one's got to then consolidate all of 0:05:31.360 --> 0:05:34.360 this by remote meta reading of these thousands of meters 0:05:34.360 --> 0:05:40.039 and consolidated and allocated to that particular trader or corporate 0:05:40.520 --> 0:05:45.440 taffic example, and the first virtual wheeling application with Votericom. 0:05:46.400 --> 0:05:50.400 Now they've got about fifteen thousand cell phone powers throughout 0:05:50.400 --> 0:05:53.159 South Africa and both Musical and ESCI of the networks, 0:05:53.360 --> 0:05:59.120 and they wanted to consolidate you know, green clean energy, 0:05:59.200 --> 0:06:03.159 low cost from a number of generators and deliver it 0:06:03.200 --> 0:06:07.120 to their sights all over the country. Uh and ESKIM 0:06:07.200 --> 0:06:10.680 entered into a sort of a pilot process with Votercom 0:06:10.839 --> 0:06:14.280 and this process, the pilot process has been successful. And 0:06:14.400 --> 0:06:17.760 now the point is that ESKIM want to roll this 0:06:17.920 --> 0:06:22.200 concept out once the regulatory framework and the rules of 0:06:22.560 --> 0:06:26.680 baty line place, you know, to extend this in a 0:06:26.720 --> 0:06:32.120 big way and reach you know, not just one corporate Rootcom, 0:06:32.760 --> 0:06:36.560 but hundreds of corporates and hundreds and maybe scores of 0:06:36.640 --> 0:06:41.400 traders delivering energy to thousands and thousands of smaller customers. 0:06:41.440 --> 0:06:43.920 So it's not just one to one wheeling too big, 0:06:44.000 --> 0:06:48.120 from big to big, it's from you know, thousands of small, 0:06:48.480 --> 0:06:50.480 smaller customers throughout the network. 0:06:51.080 --> 0:06:53.880 What another way of looking at it be to suggest 0:06:53.960 --> 0:06:57.000 that it is a system that allows crystal cell power 0:06:57.080 --> 0:07:01.359 to Stephen, but there are many other fliers and buyers 0:07:01.400 --> 0:07:06.479 in the process, and Stephen is not actually consuming the power. 0:07:06.200 --> 0:07:07.720 That is produced by Chris. 0:07:08.200 --> 0:07:11.000 But it is a way of making sure that you 0:07:11.080 --> 0:07:14.400 are paid for the power that you produce, and that 0:07:14.600 --> 0:07:16.800 I receive the power that is due to me. So, 0:07:16.840 --> 0:07:19.920 in other words, you have billions of electrons running through 0:07:19.920 --> 0:07:23.440 a system. It doesn't matter who generates or who consumes them, 0:07:23.680 --> 0:07:25.960 so long as the right number are generated and the 0:07:26.120 --> 0:07:30.360 right number are consumed and the billing system works. 0:07:30.440 --> 0:07:35.040 Essentially, it's not a pretty flow of electrons when he's 0:07:35.080 --> 0:07:39.360 talking about here. It's really an alloctation of generated energy 0:07:39.360 --> 0:07:42.000 and allocated it in a correct manner, in a fair 0:07:42.040 --> 0:07:46.680 and proper manner, accurately to thousands of off takers and 0:07:46.800 --> 0:07:51.160 handling the billing. And essentially what it means is that 0:07:52.320 --> 0:07:55.880 that you're let's say you're a customer embedded in a 0:07:55.960 --> 0:07:59.800 municipal network. You're going to pay your municipal distributor as 0:07:59.800 --> 0:08:02.800 you're you're going to get billed with your normal meter 0:08:03.000 --> 0:08:06.560 from your municipality, and you're going to pay your pay 0:08:06.600 --> 0:08:09.920 your monthly account to the municipality. But a couple of 0:08:09.920 --> 0:08:12.640 months later, you're going to get effectively a check in 0:08:12.680 --> 0:08:16.760 the post from the trader or from Escom, which gives 0:08:16.760 --> 0:08:21.320 you a credit on your account, thus reducing the cost 0:08:21.360 --> 0:08:24.840 of electricity because you've paid your electricity bill. The relationship 0:08:24.840 --> 0:08:29.920 with the municipality stays absolutely unchanged. Municipalities don't lose out. 0:08:29.520 --> 0:08:33.960 They're not losing revenue as a result of virtual reeling. 0:08:34.320 --> 0:08:37.560 The beneficiary is the customer who gets to check in 0:08:37.600 --> 0:08:40.559 the post for the green energy generated into the grid 0:08:40.600 --> 0:08:43.040 by a generator at some remote geographic point. 0:08:43.440 --> 0:08:46.480 Christiland, I really appreciate the explanation, Thank you very much. Indeed, 0:08:46.559 --> 0:08:50.000 Christiland is the energy analyst, and as you know, and 0:08:50.240 --> 0:08:52.559 of course the person who really is an expert on 0:08:52.640 --> 0:08:55.120 all of these things. Chris, thank you. Seventeen minutes after 0:08:55.160 --> 0:08:59.679 six none explain well. Over the last few days, you'll 0:08:59.640 --> 0:09:02.520 have seen in the US the extraordinary battle for Warner 0:09:02.559 --> 0:09:05.560 Brothers Discovery. First, they said they would do a merger 0:09:05.600 --> 0:09:08.760 deal with Netflix in Paramount Skydine said they would buy 0:09:08.800 --> 0:09:11.480 Warner Brothers instead. The board of Warner Brothers has gone 0:09:11.520 --> 0:09:15.679 hostile on that Saint Paramount was misleading their shareholders. I 0:09:15.679 --> 0:09:17.360 don't know how this is going to turn out, except 0:09:17.400 --> 0:09:19.840 to say it's going to get nice and ugly. I 0:09:19.880 --> 0:09:22.320 do wonder though, what it might do for the content 0:09:22.480 --> 0:09:25.400 on different platforms. Here, Tina s Ferreira's the TV critic. 0:09:25.440 --> 0:09:28.199 He understands this industry very well. Tina's good evening, Good 0:09:28.200 --> 0:09:30.400 to talk again. I mean, the first obvious point to 0:09:30.440 --> 0:09:33.240 make is that clearly people see Warner Brothers as very valuable. 0:09:33.280 --> 0:09:35.280 They are one hundred years old, and they earn a 0:09:35.360 --> 0:09:37.400 massive amount of quality material. 0:09:39.160 --> 0:09:43.840 They actually have the biggest TV studio and film studio 0:09:43.960 --> 0:09:47.000 in the US and in the world, and they are 0:09:47.080 --> 0:09:51.280 also sort of the name that's sort of most synonymous 0:09:51.320 --> 0:09:55.680 with the most sort of prestige or premium TV content. 0:09:55.800 --> 0:10:01.480 They own HBO that not only make Game of Thrones 0:10:01.520 --> 0:10:03.679 and those kinds of like spin offs, but a lot 0:10:03.720 --> 0:10:06.960 of these legacy legacy shows that still reruns and do 0:10:07.200 --> 0:10:11.080 very well, like Friends and Small Ball and Gossip Girl 0:10:11.120 --> 0:10:14.320 and things like this. So it's going to be, yeah, 0:10:14.520 --> 0:10:17.440 very interesting, and the process that kind of take at 0:10:17.559 --> 0:10:20.760 least a year to a year and a half to 0:10:20.920 --> 0:10:23.760 go through the regulatory process in the US to see 0:10:23.800 --> 0:10:28.880 who's going to end up if anybody being able to 0:10:29.960 --> 0:10:31.040 acquire Warner Bross. 0:10:31.320 --> 0:10:34.559 I mean, I've watched my children laugh as hard at 0:10:34.559 --> 0:10:37.840 Bugs Bunny as I did, still kind of laugh hard 0:10:37.840 --> 0:10:40.440 at the obvious point, I suppose is that if the 0:10:40.520 --> 0:10:42.880 Netflix merger deal goes through, there will be a lot 0:10:42.880 --> 0:10:44.160 of bugs bunny on Netflix. 0:10:45.360 --> 0:10:49.160 Yes, so Netflix has always been kind of like this 0:10:49.320 --> 0:10:55.280 wanna be about a decade ago, Well, Warner thing was 0:10:55.640 --> 0:10:58.120 part of a time Warner and they sort of said 0:10:58.720 --> 0:11:01.840 the chance that needs would become anything is sort of 0:11:01.880 --> 0:11:05.040 the same as the Albanian Army sort of winning the war, 0:11:05.200 --> 0:11:08.800 and lo and behold the irony the Albanian Army has won. 0:11:08.920 --> 0:11:12.079 Netflix is now sort of bigger, but they don't have 0:11:12.320 --> 0:11:16.440 really the studio or the production capacity or the prestige 0:11:16.800 --> 0:11:19.320 that a Warner Brass or Paramount or one of these 0:11:20.200 --> 0:11:26.000 sort of institutionalized Hollywood studios have. So they want to 0:11:26.120 --> 0:11:28.480 buy one of these because then they don't have to 0:11:28.679 --> 0:11:31.120 sort of set up all of the netti gritty. You 0:11:31.280 --> 0:11:35.000 just buy the studio, and then with that comes the expertise, 0:11:35.080 --> 0:11:39.080 the skill, the filmmakers, the connections to a James Cameron 0:11:39.559 --> 0:11:43.120 who makes Titanic and things like that. So that's really 0:11:43.160 --> 0:11:45.920 the reason. And then a lot of that content, although 0:11:45.960 --> 0:11:48.400 a Warner Brass will still sort of funnel content to 0:11:48.760 --> 0:11:51.680 where they have a lot of that back cut Log 0:11:51.760 --> 0:11:56.920 will obviously end up on Netflix because Netflix. 0:11:56.400 --> 0:12:00.240 Will own it if it goes the other way Mount 0:12:00.360 --> 0:12:02.479 sky Dance. I mean that's a bit more complicated. 0:12:02.520 --> 0:12:03.680 I presume. 0:12:05.600 --> 0:12:10.040 It's so funny because earlier this year Paramount itself was 0:12:10.080 --> 0:12:14.439 bought by sky Dance. Paramount itself was sort of struggling. 0:12:14.880 --> 0:12:18.079 And why Paramount is looking for Warner Brass is because 0:12:18.120 --> 0:12:22.360 it's sort of more an existential challenge one existential threat. 0:12:22.400 --> 0:12:26.120 They are both classic Hollywood studios and they are struggling. 0:12:26.280 --> 0:12:28.600 It's sort of like the little ones who go we 0:12:28.760 --> 0:12:32.880 need to band together against the bigger Netflix, Netflix. Although 0:12:32.920 --> 0:12:36.240 it wants the prestige content once, kind of like that 0:12:36.480 --> 0:12:42.160 HBO feel, it desperately wants to win the Oscars, which 0:12:42.320 --> 0:12:47.040 still really hasn't. They don't really need Warner, but Paramount 0:12:47.080 --> 0:12:50.559 really needs a Warner, or a Warner really needs Paramount. 0:12:50.559 --> 0:12:57.440 Although now Warner is rebuffing Paramount, and if Paramount succeeds 0:12:57.520 --> 0:13:00.840 in getting Warner, they will obviously be able to be 0:13:01.559 --> 0:13:04.960 a bigger bird, the biggest swan in the pond. So 0:13:05.040 --> 0:13:07.760 it's going to be in and but Warner now doesn't 0:13:07.760 --> 0:13:10.719 want to buy it. They are more in bed with Netflix, 0:13:11.080 --> 0:13:14.400 they see Paramount is sort of like a hostile kind 0:13:14.400 --> 0:13:16.720 of like a bird. So it's going to be interesting 0:13:16.760 --> 0:13:20.360 to see what happens with the regulatory environment in the 0:13:20.520 --> 0:13:24.360 US where Paramount is sort of more aligned with the 0:13:24.400 --> 0:13:27.000 conservative side on the Donald Trump side of things, and 0:13:27.120 --> 0:13:31.040 Netflix is more aligned kind of like with the Democrats, 0:13:31.080 --> 0:13:33.719 stay more friendlier with the Obamas and things like that. 0:13:33.720 --> 0:13:36.280 So well, it's going to be interesting. Beyond just being 0:13:36.360 --> 0:13:39.800 sort of like a media war, film studio war, it's 0:13:39.880 --> 0:13:41.120 also a political war. 0:13:41.480 --> 0:13:45.080 So I mean CNN sort of seen in US terms 0:13:45.120 --> 0:13:47.760 as liberal part of Warner Brothers. I can I can 0:13:47.840 --> 0:13:51.440 imagine them in the Netflix kind of universe. I can 0:13:51.480 --> 0:13:53.160 imagine them. I imagine it might be a way for 0:13:53.240 --> 0:13:56.640 Netflix to have a streaming news service finally, but a 0:13:56.679 --> 0:13:59.959 battle to understand to see them at Paramount, I mean, 0:14:00.480 --> 0:14:02.400 I think the newsroom would be an open revolt and 0:14:02.440 --> 0:14:04.080 that would probably destroy CNN value. 0:14:06.160 --> 0:14:08.480 So not to make it too complicated, but yes, another thing, 0:14:08.480 --> 0:14:12.320 the two deals are different. If Netflix buys Warner Brass, 0:14:12.440 --> 0:14:15.520 they won't buy the TV channels, so all of those 0:14:15.559 --> 0:14:19.480 things like Discovery and CNN will become its own separate company, 0:14:19.560 --> 0:14:22.040 won't belong to Netflix, so you can kind of say, 0:14:22.120 --> 0:14:24.600 quote unquote, a CNN would be safe, a food network 0:14:24.640 --> 0:14:28.280 would be safe. Paramount that has put in a higher 0:14:28.280 --> 0:14:31.880 bird hundreds and eight vollion. They want the whole of Warner, 0:14:32.080 --> 0:14:36.240 including the TV channels and now keep in mind the 0:14:36.640 --> 0:14:40.400 more conservative leaning. And that's why that part is also 0:14:40.520 --> 0:14:45.040 freaking out people working at CNN because they're like, what's 0:14:45.080 --> 0:14:47.480 going to happen here. Donald Trump has been on the 0:14:47.560 --> 0:14:49.960 record that he wants CNN to change, he wants CNE 0:14:50.120 --> 0:14:52.880 to stop. He sort of denigrates their journalists, as he 0:14:52.960 --> 0:14:56.160 does with all of the media reporters in America. So 0:14:56.600 --> 0:15:00.640 with Paramount, you'll see drastic changes with CNN. With Netflix, 0:15:01.000 --> 0:15:03.360 CNN might also still change, but at least it won't 0:15:03.360 --> 0:15:06.360 belong to Netflix DStv. 0:15:06.440 --> 0:15:09.640 I'm sure watching this closely, they're going through big changes themselves, 0:15:10.040 --> 0:15:11.080 plus now owns them. 0:15:11.680 --> 0:15:14.080 Does this affect they're offering much? Does it matter? 0:15:14.120 --> 0:15:16.160 I mean, I presume in their long term agreements, although 0:15:16.160 --> 0:15:17.760 one of them comes to an end in a few 0:15:17.800 --> 0:15:18.320 days time. 0:15:19.280 --> 0:15:22.760 You're really making people's head spins on a FIDA afternoon. 0:15:23.240 --> 0:15:28.320 So there's yet another wrinkle in the story. Well, multi 0:15:28.400 --> 0:15:32.200 Choice that now belongs to Canal Blues, the French company 0:15:32.560 --> 0:15:35.600 that the contract for twelve of those channels that come 0:15:35.640 --> 0:15:41.160 from Warner, which Netflix wouldn't buy. That carriage agreement is 0:15:41.240 --> 0:15:43.680 running out at the end of the year. Those twelve 0:15:43.800 --> 0:15:49.440 channels are hugely popular and hugely important to DStv. Just 0:15:49.520 --> 0:15:52.840 Cartoon Network that you mentioned your kids watch, that one 0:15:52.920 --> 0:15:56.160 channel has forty nine percent of the total audience share 0:15:56.240 --> 0:15:59.040 of all kids viewing on d STV. Multi Choice wouldn't 0:15:59.080 --> 0:16:01.640 want people to know that, neither Warner, so take that 0:16:01.760 --> 0:16:04.360 one channel away. All of the other kids viewing is 0:16:04.400 --> 0:16:07.720 also the other fifty percent. A channel like TNT is 0:16:07.800 --> 0:16:11.880 the number one rated international movie channel on the whole 0:16:11.920 --> 0:16:15.360 of the ESTV. Can you really imagine that the ESTV 0:16:15.560 --> 0:16:19.680 without the CNN, a Discovery Channel, a cartoon network. You 0:16:19.720 --> 0:16:22.800 can't really and both of them really need each other. 0:16:22.960 --> 0:16:26.960 The negotiations are extremely contentious. It is still going on. 0:16:27.280 --> 0:16:29.640 We're either got to see the channels go dark at 0:16:29.680 --> 0:16:32.000 the end of the year, then maybe they come back 0:16:32.080 --> 0:16:36.840 after a few weeks as they sort of play high 0:16:36.880 --> 0:16:40.040 New Cowboys stakes, or that we might see them do 0:16:40.160 --> 0:16:42.640 a deal, or it might go dark and we never 0:16:42.680 --> 0:16:45.200 see a deal because some of these channels have disappeared 0:16:45.200 --> 0:16:48.600 on some of the traditional PATV operators in New Zealand Australia, 0:16:48.640 --> 0:16:51.120 and then they're just sort of gone forever. As we 0:16:51.200 --> 0:16:55.560 see the traditional PATV model just sort of slowly disintegrate and. 0:16:55.600 --> 0:16:58.560 Very quickly, you know, So, I mean DStv next year, 0:16:58.680 --> 0:17:01.600 Canel pluss may big promises. They're talking about a sort 0:17:01.640 --> 0:17:04.880 of single app. We've seen a few experiments already. There 0:17:04.920 --> 0:17:08.320 was that sort of long weekend where things are much cheaper. 0:17:08.960 --> 0:17:10.800 What are you expecting from them in the new year. 0:17:14.200 --> 0:17:16.199 I will be honest as a journalist, I don't know. 0:17:17.600 --> 0:17:22.080 Maxine Soda and David Muneau, the new bosses, said that 0:17:22.160 --> 0:17:24.720 by the end of the year, and how ironic the 0:17:24.880 --> 0:17:28.520 STV would have more content and more and better services 0:17:29.040 --> 0:17:32.800 instead of that. We're definitely going on d STV I 0:17:32.960 --> 0:17:37.760 at least four fewer channels, maybe up to sixteen when 0:17:37.880 --> 0:17:41.880 we lose the other twelve of Warner Brass. And we're 0:17:41.920 --> 0:17:45.520 also seeing the OSCARS is now jumping from twenty to 0:17:45.560 --> 0:17:48.720 twenty nine. They signed a new deal with There's only 0:17:48.760 --> 0:17:52.480 one thing really scaring Netflix. Everyone's scared by Netflix, but 0:17:53.040 --> 0:17:57.520 who is Netflix skateed by by Google and YouTube. So 0:17:57.560 --> 0:18:02.480 the OSCARS is signed a new contractor leaving a few 0:18:02.520 --> 0:18:05.560 years from MT. So it's another local building block that's 0:18:05.600 --> 0:18:11.400 slowly getting cracked away, stripped away. So we're seeing all 0:18:11.440 --> 0:18:14.920 of these things that used to be premium content leave 0:18:15.080 --> 0:18:18.840 traditional DStv, and I see it as a train and 0:18:18.880 --> 0:18:21.440 I don't know how it will play out, but I'm 0:18:21.480 --> 0:18:25.520 sure that DStv and Inmate will continue to lose content 0:18:25.640 --> 0:18:29.159 in twenty twenty six, whether it was still multi choice 0:18:29.200 --> 0:18:33.880 or whether it's Canal plus earning them. The future looks dire. 0:18:33.960 --> 0:18:36.000 All right, Tiness Freerra, thank you very much. Indeed, well 0:18:36.040 --> 0:18:38.320 let's see how they respond. Tins to appreciate it. Twenty 0:18:38.359 --> 0:18:43.200 seven after six The money show Luck, I'm Guni's chief 0:18:43.240 --> 0:18:45.760 investment officers has been Guela Global fund Managers. We lack 0:18:45.840 --> 0:18:48.920 a good evening the great pivot of twenty twenty five. 0:18:48.960 --> 0:18:52.439 I mean, central banks are finally blinking. We have a 0:18:52.480 --> 0:18:55.800 lower we have a lower inflation target. 0:18:56.200 --> 0:18:57.680 What are you protecting for next year? 0:18:59.200 --> 0:18:59.400 Yeah? 0:18:59.600 --> 0:19:01.920 You not. I think I would expect that we would 0:19:01.920 --> 0:19:06.080 see a continuation of moderate inflation across the board. But 0:19:06.240 --> 0:19:11.040 moddly because the main driver of inflation in consumption is 0:19:11.080 --> 0:19:14.200 not so strong across the board, whether in Essay and Drouble. 0:19:14.320 --> 0:19:17.440 But I do think that if we get some rate 0:19:17.480 --> 0:19:20.280 support by the central banks, were likely to see that 0:19:20.320 --> 0:19:24.560 the consumer code hold up and inflation could maybe marginally 0:19:24.640 --> 0:19:26.680 thick up. But I think the first half would probably 0:19:26.720 --> 0:19:28.520 be similar to what we have seeing now. In they 0:19:28.520 --> 0:19:30.520 said in the fourth quarter, sure. 0:19:30.440 --> 0:19:32.960 Quite optimistic Nike in the UK. 0:19:33.040 --> 0:19:36.320 In the US, they shares are down there and this 0:19:36.440 --> 0:19:39.560 is because China's sales are down seventeen percent. 0:19:40.480 --> 0:19:43.600 This is I mean, that's that's huge. What's going on 0:19:43.640 --> 0:19:44.560 with middle classes? 0:19:45.760 --> 0:19:48.320 Yeah, I think it's not only in middle class, and 0:19:48.359 --> 0:19:52.520 the middle classes is currently challenged, I think even in China. 0:19:52.560 --> 0:19:55.159 But I think one of the weaknesses didn't time like 0:19:55.240 --> 0:19:59.680 that is that Nike has failed to revamp their stores 0:19:59.720 --> 0:20:03.760 and and invest in their own so so it has 0:20:03.800 --> 0:20:06.520 been difficult for them to tuck the traffic into their 0:20:06.560 --> 0:20:09.680 source and they seem to have lost the plot there. 0:20:09.680 --> 0:20:14.720 Their competitors under Sports and Leaning are actually still the 0:20:14.760 --> 0:20:17.639 market share from them quite aggressively. So it is a 0:20:18.320 --> 0:20:20.199 ten a round that was promised, But I don't know 0:20:20.280 --> 0:20:22.199 if we are seeing any progress on that. 0:20:23.400 --> 0:20:26.520 I'm sure so ninety one saying last week, excuse me, 0:20:26.560 --> 0:20:29.359 we spoke to John Pickard about it, great confidence about 0:20:29.440 --> 0:20:29.920 next year. 0:20:30.560 --> 0:20:32.200 A lot of this is about politics. 0:20:32.640 --> 0:20:35.880 Do you think that money might move away from kind 0:20:35.920 --> 0:20:40.400 of quite expensive AI shares into sort of starting more 0:20:40.440 --> 0:20:41.840 boring South African shares. 0:20:42.960 --> 0:20:45.080 I think we've already seen that trend, and I think 0:20:45.680 --> 0:20:48.879 we're also seeing it through the pervement of trend. That 0:20:48.920 --> 0:20:52.800 there is quite a minionful buy buy in into these 0:20:53.280 --> 0:20:56.840 and the bond market. But I think that the next 0:20:56.880 --> 0:20:59.680 year would probably be in better. I think there is 0:20:59.720 --> 0:21:02.760 a high for yield on the bond side, but also 0:21:02.760 --> 0:21:06.520 on the stock side, our stocks are relatively attractive, and 0:21:06.560 --> 0:21:09.439 I think with a stronger rand we likely to see 0:21:09.520 --> 0:21:12.960 our companies getting a relief, some sort of relief from 0:21:12.960 --> 0:21:15.920 a cost input cost point of view. So are the 0:21:17.400 --> 0:21:19.960 optimistic as well into twenty twenty. 0:21:19.720 --> 0:21:22.719 Six, I mean the JC all share, I mean holding 0:21:22.760 --> 0:21:26.040 at very very high levels. There does seem to be 0:21:26.080 --> 0:21:29.320 a real change with how people are understanding our economy, 0:21:29.359 --> 0:21:30.520 with what's going on under the hood. 0:21:31.760 --> 0:21:35.119 Definitely think. I think despite the missteps that we are 0:21:35.119 --> 0:21:37.720 seeing in the retail sector. I think, the banking sector, 0:21:38.160 --> 0:21:42.280 and the insurance sector, and the retail the food retail sector. 0:21:42.280 --> 0:21:44.240 I mean, I still think that Chapel is a good 0:21:44.280 --> 0:21:48.120 position to be in. Into twenty twenty six, I think 0:21:48.119 --> 0:21:50.280 someone is a good position to be in. I think 0:21:50.640 --> 0:21:54.119 net Bank having shared of the ETI holding in Nigeria, 0:21:54.200 --> 0:21:56.199 I think that's also a good position to be in. 0:21:56.280 --> 0:22:01.080 So there are some opportunities, but obviously they is one 0:22:01.160 --> 0:22:04.520 need to exercise question around some of the stocks in 0:22:04.560 --> 0:22:08.199 the retail sector where they have been beating hard and 0:22:08.359 --> 0:22:11.840 they look attractive, but there's also possible mistakes that they 0:22:11.840 --> 0:22:13.480 could commit, like they supplies. 0:22:15.400 --> 0:22:15.960 You're not a. 0:22:15.840 --> 0:22:18.120 Fan of that. I noticed I saw your reports. I mean, 0:22:18.400 --> 0:22:20.960 you basically suggest mister Price is making the same mistake 0:22:21.040 --> 0:22:22.080 everybody else's made. 0:22:22.960 --> 0:22:25.160 Indeed, I think I think they are, and I think 0:22:25.600 --> 0:22:30.280 there is an obsession about international expansion, but also expanding 0:22:30.359 --> 0:22:35.960 into mature markets, into industries that or at least markets 0:22:35.960 --> 0:22:38.080 that they don't know very well, and they think they 0:22:38.080 --> 0:22:40.840 can fix up companies there. I don't think we appreciate 0:22:41.359 --> 0:22:44.960 some of the privileges of operating to in any current 0:22:45.040 --> 0:22:50.240