Speaker 1: And now The Money Show with Stephen credits on seven
Speaker 1: oh two.
Speaker 2: Let's walk at all. The Money Show with Stephen Curtis
Speaker 2: has brought to you by Abscess CIB, proud sponsor of
Speaker 2: the Sorrow Rail Conference twenty twenty five, Powering Progress, Connecting Economies.
Speaker 2: Good evening, Welcome to the Money Show. I'm Stephen Curtis.
Speaker 2: Seven minutes after six the time this Friday evening, we'll
Speaker 2: be looking at toffee. I don't know when you last
Speaker 2: had a toffee, and I imagine I remember making toffee
Speaker 2: as a kid. It can't be that difficult to make coffee.
Speaker 2: To make toffee, keep wanting to say coffee toffee, and
Speaker 2: yet I think to make the country's best toffee is
Speaker 2: something very different. We'll be talking about that in about
Speaker 2: half an hour from now. Actually quite looking toward to
Speaker 2: that conversation on Friday. File before that, the situation at
Speaker 2: Ford looking quite serious. There are so many different transitions
Speaker 2: going on in the automobile industry at the moment. In
Speaker 2: the automotive sector, I should say Ford saying that they
Speaker 2: will let you will go in their officers. Their operations
Speaker 2: in Swan are so very very bad news there. We'll
Speaker 2: talk about that on the Money Show in a couple
Speaker 2: of moments. Big movements in the toy sector. Toys r
Speaker 2: US and babies are US are buying Toys Zone. There's
Speaker 2: something here about high frequency malls as they describe it,
Speaker 2: and Toys are US saying, it'll basically give them outlets
Speaker 2: in malls that have a lot more traffic, so more
Speaker 2: people going through I presume, bigger malls, and what that
Speaker 2: then does to the you know, number of sales that
Speaker 2: you get and the big advantages of that. So I
Speaker 2: think that could be quite an interesting conversation. Lots of
Speaker 2: conversations around whether or not the US could try and
Speaker 2: kick us out of the Swift network, you know, the
Speaker 2: Trump administration's view on us. We'll speak about that in
Speaker 2: ten minutes time as well before we move on to toffees.
Speaker 2: And don't forget the Friday biz blitz as well. You
Speaker 2: know the number no double one double A three seven
Speaker 2: two two one four four six, O five six seven
Speaker 2: and O seven two seven oh two one seven oh two.
Speaker 2: I was thinking a little bit about the electricity you
Speaker 2: heard it again in the EWN bulletin, and what a
Speaker 2: difficult financial mess this is becoming and it's not helped
Speaker 2: when people like nurser actually get it wrong. And I
Speaker 2: was suddenly thinking, after all of the conversations we've had
Speaker 2: about why it is that nursa makes mistakes, whether it
Speaker 2: is a mathematical mistake, I'm sure at some point someone
Speaker 2: is going to say to nursa, was there I don't know,
Speaker 2: political interference or something. I have no evidence on which
Speaker 2: debatese that no evidence that I can point to, But
Speaker 2: you've got to ask yourself why do you keep making mistakes?
Speaker 2: And within that is a much bigger problem. The kind
Speaker 2: of jaws of the problem, if I can describe it
Speaker 2: like that is as I understand it is basically this,
Speaker 2: over the years, ESKIM has not been getting enough money
Speaker 2: to actually make enough electricity what you would call, I
Speaker 2: suppose a cost reflective tariff. But now it's had to
Speaker 2: invest more and more over the years, but it's still
Speaker 2: not been getting enough money over the years, which means
Speaker 2: that debt goes up now when it tries to fix
Speaker 2: the problem and increase the pricing, and nurser shouts and
Speaker 2: everybody shouts. But as it does that people who can
Speaker 2: get out of escum, they make their own they do
Speaker 2: this they do that, they get soloed, they do whatever
Speaker 2: the companies get out of it. I mean, if you
Speaker 2: consider nor Them's electricity bills three billion rund in the
Speaker 2: last financial year, the moment they can get out of ESCUM,
Speaker 2: surely they will. And that just then shows you how
Speaker 2: the problem gets worse and worse and worse. And I
Speaker 2: cannot think of a solution. As William Zimavavi told us
Speaker 2: last night, people are cooking over fires again rather than
Speaker 2: using electricity. We're going backwards or because of the price.
Speaker 2: I don't know what the solution is. Double one three
Speaker 2: oh seven two two one four four six o five
Speaker 2: six seven Good Evening, it's ten minutes after six.
Speaker 1: Seven two.
Speaker 2: Is on the money shows six to eight pm. Well
Speaker 2: confirmation lady. Yesterday. Ford is retrenching quite a significant part
Speaker 2: of its workforce from its operations in Swane. Four hundred
Speaker 2: and seventy jobs are going. Warren Tucker is someone who
Speaker 2: watches the car industry very very closely. Warren Good Evening,
Speaker 2: Ford says, it's responding. I think the phrase they used
Speaker 2: was to the evolution of market demands. I don't even
Speaker 2: know what that means, but it seems to me that
Speaker 2: clearly something is shifting and they have to respond well.
Speaker 3: Those of us with very long memories good eating in
Speaker 3: student have We'll tell you that once upon a time
Speaker 3: the British motor industry rolled roost and it was this
Speaker 3: small upstart company called Toyota, another one called Datson, followed
Speaker 3: by an one called Honda, and they came in and
Speaker 3: basically decolated.
Speaker 4: The US motor industry.
Speaker 3: By building cheap, reliable little cars that would start every
Speaker 3: morning you go to work come back. You wouldn't be
Speaker 3: on the side of the road without over eating or
Speaker 3: electrical problems, all of those things. Fast forward. Now we've
Speaker 3: got a situation where you know you touched on it
Speaker 3: a couple of minutes ago, where electricity is so expensive
Speaker 3: in South Africa. We've gone from having some of the
Speaker 3: cheapest electricity in the world to having the most expensive electricity.
Speaker 3: Becomes very difficult for all these companies that are manufacturing
Speaker 3: to keep up and keep the costs down. In order
Speaker 3: for our country to manufacture and manufacture competitively, you need
Speaker 3: cheap electricity, you need a good logistics system to get
Speaker 3: underals to and from port, and you need cheap steel
Speaker 3: to manufacture.
Speaker 4: These vehicles and unfortunately we've kind of passd ourselves out
Speaker 4: of the market.
Speaker 2: It keeps going back to the same thing. Someone somewhere
Speaker 2: is going to blame us tariffs for Ford's decision, but
Speaker 2: actually it's us.
Speaker 4: No, the chickens have come on through. Let's put it,
Speaker 4: let's call a spider.
Speaker 3: Spider. We've got a government that's not interested in sorting
Speaker 3: out or helping the industries grower. You've got a situation
Speaker 3: where we've let everything fall apart so bad that now,
Speaker 3: like I said, electricity is so expensive. Think about this.
Speaker 3: When we had load shedding, all the factories in Utnape
Speaker 3: had to go out by generators use diesel to generate power.
Speaker 3: I mean that all comes at a cost. So those
Speaker 3: costs need to get passed on somewhere. They can't just
Speaker 3: be absorbed by the company forever.
Speaker 1: And those all.
Speaker 3: Those small things have a knock on effect and eventually
Speaker 3: we end up for the problem we have now where
Speaker 3: companies are saying, listen, there's cheaper markets for us to
Speaker 3: produce our vehicles. There's company there's markets with cheaper electricity.
Speaker 3: They don't have all these logistical issues. So you know what,
Speaker 3: we're going to move that way, the alarm should have
Speaker 3: gone gone off when BMW took.
Speaker 4: The three series BMW, which is their bread and.
Speaker 3: Butter, right, they shall three series all over the world.
Speaker 3: When they took that away from us and said, now, okay,
Speaker 3: we'll take the three series to America. You guys produce
Speaker 3: the X three, then the alarm should have gone off then,
Speaker 3: and they already.
Speaker 2: Are we going to see more of this? Warren? I mean,
Speaker 2: we don't really know what's going to happen. There are
Speaker 2: there's so many different transitions underway in this industry at
Speaker 2: the moment. I mean, on one level, Tartar of coming back.
Speaker 2: More Chinese models are coming into South Africa. I realized
Speaker 2: that Fords specifically are really in the kind of backy
Speaker 2: and suv market nowadays. But I can't help but wonder
Speaker 2: if this is just the beginning.
Speaker 3: Well, I think you're right. Look at the end of
Speaker 3: the day, there's a lot of models that we stopped
Speaker 3: getting in this country. Okay. South Africa used to be
Speaker 3: that country where we had I mean, manufacturers made special
Speaker 3: cards just for us. That's how hungry our market was
Speaker 3: for vehicles.
Speaker 4: They don't do that anymore.
Speaker 3: They sell into our market. What they think will sell,
Speaker 3: and that's that. I'll give you an idea. I'll use
Speaker 3: them as to buy examples for you. Always ask the
Speaker 3: guy that Kawasaki. I said, but how come we don't
Speaker 3: get these specific models and you're only bringing this range.
Speaker 3: And the guy basically said to me, well, what's up?
Speaker 3: Africa buys in a year, they're selling the US in
Speaker 3: a month. Sure, so our market is just not important
Speaker 3: to them.
Speaker 2: Warren Taka, thank you so much. As you can tell
Speaker 2: someone who watches the motor industry very very closely, it's
Speaker 2: just going to call a bus six The.
Speaker 5: Money Show on seven.
Speaker 2: Monday till Friday six to a pm for confirmation this
Speaker 2: week that the deal between Toys r US and Babies
Speaker 2: Are Us has now been able to buy the thirteen
Speaker 2: outlets of toy Zone based in Kateng and Durban. Particularly
Speaker 2: Doctor Pumlam Ganga is the chair of Toys r Us
Speaker 2: and Babies are Us. Pumla, good evening and thank you
Speaker 2: for your time on The Money Show. I do appreciate it.
Speaker 2: What's the reasoning behind the deal? Why do you believe
Speaker 2: it's a good for you to buy these thirteen branches
Speaker 2: of toy Zone.
Speaker 5: Good evening, Stephen, and thank you for the opportunity to
Speaker 5: share how excited we are with this landmark acquisition. Essentially,
Speaker 5: if you look at where our current business footprint is,
Speaker 5: it is mainly in the main regional and the national
Speaker 5: malls in South Africa. The acquisition of toys On was
Speaker 5: really intended to extend a geographic footprint into mainly the
Speaker 5: strip malls. In the first instance, because the strip malls
Speaker 5: offer convenience, they offer more choice, and they offer ease
Speaker 5: of access for our target customer and this is something
Speaker 5: that we feel is important in this particular market segment,
Speaker 5: and so the importanting of our footprint into the strip
Speaker 5: mall was a major consideration. The second consideration was the
Speaker 5: infusion of the baby offering. So toys On is appear
Speaker 5: a toy play and our intention is to obviously infuse
Speaker 5: the baby offering to our target customers in that way.
Speaker 5: They the target customer which is the parent in most instances,
Speaker 5: but it's actually everybody, the parent, the grandparent, the mom,
Speaker 5: the child. It's almost every age category has that convenience.
Speaker 5: So our intention is to infuse the baby into the
Speaker 5: offering so that the customer has got that broad choice
Speaker 5: so they can go to the mall. Alternatively, they can
Speaker 5: go to the strip mall to purchase our offering.
Speaker 2: I have to tell you from LA I'm the number
Speaker 2: of times in my life I've had to rush around
Speaker 2: with one or both of my children and stop at
Speaker 2: a toy store to get something for another child, for
Speaker 2: a party or something. It's all about parking. So I
Speaker 2: hear you on the strip malls they do make it easier.
Speaker 5: Absolutely, that is so delighting to hear, because you know,
Speaker 5: if you, I mean, think about it this way. Let's
Speaker 5: say you're coming to buy a pram or you're coming
Speaker 5: to buy a car seat. I mean, parking is major
Speaker 5: and that's what St. Paul's give us. So I'm so
Speaker 5: excited to hear that. Obviously you have that direct experience,
Speaker 5: because that's precisely what the strategic intent was.
Speaker 2: Are you going to change the products on offer? I mean,
Speaker 2: I presume you'll rebrand and everything will be Toys Toy Zone.
Speaker 2: The Toy Zone brand will I presume will disappear. But
Speaker 2: are you going to be selling exactly the same products.
Speaker 2: Are you're going to make major changes apart from bringing
Speaker 2: in the baby side of things.
Speaker 5: Well, I think we already thought that toys On was
Speaker 5: a good offering. So the idea is simply to infuse
Speaker 5: the baby and also obviously some of the lines that
Speaker 5: are distinctly ours and so we will infuse those into
Speaker 5: the product range.
Speaker 2: Okay, how is the toy market generally? Now? There's certain
Speaker 2: things about babies and children that you're always going to do.
Speaker 2: You are always going to buy nappies, if there is
Speaker 2: a baby around, you are always going to buy. I mean,
Speaker 2: I can't tell you how many millions of baby wipes
Speaker 2: you're going to buy, but you're going to buy them.
Speaker 2: You're going to say you won't, but you will. You're
Speaker 2: also going to buy very cheap things, you know, the
Speaker 2: sort of five rand twenty rand kind of piece of
Speaker 2: plastic for you know, for a stocking or something over
Speaker 2: Christmas or whatever it is. But the more expensive toys
Speaker 2: do people still have money for them when you consider
Speaker 2: how tough things are right now?
Speaker 5: You know the reason why we are embarking on this
Speaker 5: strong cat strategy is because we believe that this market
Speaker 5: is very buoyant. And interestingly enough, what we found is
Speaker 5: that in South Africa, whether you're a parent in the
Speaker 5: Santin or you're a parent in a sabielgana in case
Speaker 5: it in. You have aspirations for your child. You want
Speaker 5: to buy the best for your child, whether you're a
Speaker 5: grandparent or an aunt or an uncle or even a
Speaker 5: direct parent. And so for us, it's a very buoyant market.
Speaker 5: It's growing, The growth numbers are very positive. So we
Speaker 5: wouldn't be investing in this growth strategy if we didn't
Speaker 5: believe in the future of this market. We believe that
Speaker 5: it's positive both in Africa and internationally. And I think
Speaker 5: that what we have, what we are offering here is
Speaker 5: the opportunity now for our customers to have more optionality,
Speaker 5: more convenience and broad more range and more depth. We
Speaker 5: very optimistic about the market segment.
Speaker 2: Thank you very much. Indeed, doctor pumlam Ganga is the
Speaker 2: chair of Toys r US and Babies are Us Twenty
Speaker 2: minutes now after six.
Speaker 5: The Money Show explainer.
Speaker 2: I'm sure you've seen quite a bit of commentary and
Speaker 2: some of the commentary has been very concerned suggesting that
Speaker 2: South Africa could lose access to the Society for Worldwide
Speaker 2: Interbank Financial Telecommunication. You might be asking yourself, what is
Speaker 2: the Society for World Bank for worldwide interbank financial communication.
Speaker 2: If you look on your bank card, if you still
Speaker 2: have one, and it's not just on your phone, you'll
Speaker 2: know it as the Swift system. The main reason we've
Speaker 2: had all of this concern is because of the issues
Speaker 2: around our relationship with the US. Well today, the National
Speaker 2: Treasury saying this was on fin thirty four, that they
Speaker 2: see virtually no chance we could be kicked out of swift.
Speaker 2: Frederick Mitchell is the chief economist at a Luma Capital.
Speaker 2: Frederick good Evening. The Swift system, I mean, who gets
Speaker 2: to decide who's in it and who isn't because they
Speaker 2: were pretty quick to kick the Russians out when it
Speaker 2: suited them.
Speaker 6: Well, good evening to all the listeners. Mostly it's the
Speaker 6: US who call the shots that you say in who's
Speaker 6: on the system and who's lot And it's been administered
Speaker 6: in Brussels, in Europe and in the US, so it's
Speaker 6: basically international banking system, and our transactions are cleared internationally
Speaker 6: in our funds or flowing between countries and makes it
Speaker 6: easier to do international trade and in investments.
Speaker 2: I mean with Russia, the US, yes, and the EU
Speaker 2: pretty much agree that they were against Russia. It's a
Speaker 2: bit more complicated with US anyway, isn't.
Speaker 6: It kind of?
Speaker 3: Because we had some great relationship with the Europeans and
Speaker 3: we have some new deals with them, trade deals, and
Speaker 3: it's a relationship with the US that's coming under pressure.
Speaker 3: But we know if the US does a problem with
Speaker 3: the country, they tend to pressure the European allies to
Speaker 3: follow suits. So that's giving us kind of a headache
Speaker 3: at the stage.
Speaker 2: Do you think the National Treasury is right when they
Speaker 2: say they see virtually no chance that would that we
Speaker 2: could be kicked out? I mean, I must say, to
Speaker 2: pick on one country and to throw them out of swift,
Speaker 2: just kind of out of spite because we haven't really
Speaker 2: done anything, I mean, would be astonishing.
Speaker 6: Well, it's difficult to say if it's just out of spies.
Speaker 6: Must we must go and look at South Africa's actions,
Speaker 6: say collectively internationally, how we've aligned with let's say US
Speaker 6: interests over the last say, fifteen to twenty years. And
Speaker 6: we know what the trend has been, and the US
Speaker 6: has not been taken kind to it, even under the
Speaker 6: Biden administration. And we know the travel deministration is very
Speaker 6: proactive in terms of getting the America first agenda across
Speaker 6: to the public, and if so, I think it does
Speaker 6: cross the line, which is I feel they will act
Speaker 6: with the severe punishment to countries that doesn't play state
Speaker 6: ball according to them.
Speaker 2: Yeah, I mean, there's such a big debate to have
Speaker 2: around all of this, I presume if it happened, so
Speaker 2: this would be the worst case scenario if we were
Speaker 2: kicked out of SWIFTED, what have a big impact on
Speaker 2: us where we don't have the same financial resilience as Russia.
Speaker 4: The thing with Russia is we look at a country.
Speaker 6: That let's say it's got huge oil and gas reserves
Speaker 6: that the Europeans are dependent on, and they struggle to
Speaker 6: be a couple from a couple of that is the
Speaker 6: notion that we know Russia the nuclear superpower. To that
Speaker 6: I think gives us an idea that Russia does have
Speaker 6: some aces up the sleeves to play along with the
Speaker 6: waste and now they can handle them. But so South Africa,
Speaker 6: we are a small, open economy and we don't have
Speaker 6: a let's say, a loaded gun in terms of let's
Speaker 6: say oil and gas to the West seat, and that's
Speaker 6: putting us quite in a bit of a different posision
Speaker 6: than they say the Russians, it's doing comparable situations. To
Speaker 6: be honest.
Speaker 2: Look, I mean we have golden platinum, I suppose, but
Speaker 2: it's not quite the same thing. It's also harder to
Speaker 2: get it out of the ground for us at the moment,
Speaker 2: I presume quite a lot of functionality that we've become
Speaker 2: used to would simply just stop working.
Speaker 6: Yeah, that's a big problem. It's not only it's not
Speaker 6: really international trade in terms of goods and services or
Speaker 6: let's say good's being important and exported. It's also in
Speaker 6: the business and also our debt. We we've got a
Speaker 6: small percentage that's like in dominated denominated in U years
Speaker 6: or foreign currencies. Most of our datas in lit'sa around.
Speaker 6: But if you lose actually to the surf and they
Speaker 6: push as ants means that let's say foreign countries, especially European,
Speaker 6: and they'd say you this is for that matter, can't
Speaker 6: in this is African bonds, So that bonds will then
Speaker 6: have to be taken up by the local institutions, which
Speaker 6: you will put financial strain in risk within now within
Speaker 6: this African market. And and and that's something that we
Speaker 6: can't really afford the stage.
Speaker 2: Frederick Mitchell thanks very much. Indeed, chief economist, that's a
Speaker 2: lumic capital. Will you heard his view? The National Treasury
Speaker 2: believes there's virtually no chance of it happening. I mean
Speaker 2: my own view, n it's maybe not particularly informed. But
Speaker 2: if this is what the US is going to do
Speaker 2: to US, I presume they're going to do it to
Speaker 2: every country that they don't like. And it's not like
Speaker 2: we've declared war on an ally or anything like that,
Speaker 2: so in a way it would be quite extreme. But
Speaker 2: who knows. We are, as you know, in very strange times.
Speaker 2: I know you have a view on that or no
Speaker 2: double one double A three seven two two one four
Speaker 2: four six five sixty seven. The money show the market.
Speaker 2: The governor is the portfolio manager at Rand Swiss viv
Speaker 2: good evening. We should probably start with Northern Platinum Platinum.
Speaker 2: They had their results out today and despite as slightly
Speaker 2: higher will quite a significantly higher platinum price over the period,
Speaker 2: as still not able to make as much money as
Speaker 2: they need.
Speaker 3: Yeah.
Speaker 4: Look, I mean this is obviously a situation.
Speaker 1: In which these companies are in the situation where they're
Speaker 1: looking a lot stronger than they were just a little
Speaker 1: while ago. I mean, the tract and prices recovered quite nicely,
Speaker 1: and you would expect, you know, in that scenario that
Speaker 1: these companies would be seeing some you.
Speaker 4: Know I movements coming through obviously you know it.
Speaker 1: Jumping them out of bits. But unfortunately nor theman is posting,
Speaker 1: like you said, it's profit to drop because of higher costs,
Speaker 1: and that isn't think it's quite disappointing. I mean, they
Speaker 1: had high price, they had record sales volumes, but yet
Speaker 1: we are seeing, you know, it will cost basically jumping
Speaker 1: up eight point one percent, which is obviously above vinimplations
Speaker 1: in Africa at the moment.
Speaker 2: Yeah, a big part of that was electricity. So yesterday
Speaker 2: Nicko Muller, who's the as you know as this, the
Speaker 2: CEO at Implats, he told us on the Money Show
Speaker 2: he was quite optimistic about the platinum price. I think
Speaker 2: the phrase they used was they see it as being
Speaker 2: supportive for the next eighteen months. Paul done At at
Speaker 2: Northern Platinum not nearly so confident over the shorter term.
Speaker 2: He is over the longer term, but over the shorter
Speaker 2: term he doesn't necessarily see a higher platinum price.
Speaker 1: Yeah, look, I think it's a it's a difficult thing.
Speaker 1: To look at because for the longest time, platinum has
Speaker 1: been driven by this demand by you know, the catalyg
Speaker 1: of birts basically await can the engines of petrol and
Speaker 1: diesel vehicles platinum platinum banal as a whole. Unfortunately, you know,
Speaker 1: EV's coming to places. That's going to be diminishing of
Speaker 1: the long long term unfortunately for platinum makers, but probably
Speaker 1: good for the world because it probably means it's a
Speaker 1: healthier environment out the would less pollution, and so they
Speaker 1: have to pry other alternatives to this thing. Also, we look,
Speaker 1: we have you know, increased recycling, we have efficiencies in comporum,
Speaker 1: the cetical pursose, this was an industry that was not
Speaker 1: going to be supportable of the pession but indefinitely to
Speaker 1: the future. That being said, you know, platinum is an
Speaker 1: alternative to gold. You know, the goal prices you all
Speaker 1: know has gone up quite strongly over the last little while,
Speaker 1: and so I do think that if we do see
Speaker 1: goal prices continuing to rise, I would expect clactum prices
Speaker 1: in a cuddenly to at least follow that, at least
Speaker 1: partially just because of the substitution effective things that jewelry
Speaker 1: et cetera.
Speaker 2: In the US, Lisa Cook, the US Federal Reserve Bank governor,
Speaker 2: that the US President Donald Trump says he's fired her.
Speaker 2: She's obviously gone to court to say no at issue.
Speaker 2: It's quite a strange thing in the US. But if
Speaker 2: you have two properties, and when you get the mortgage,
Speaker 2: if you put on one of them that this is
Speaker 2: your primary residence, you get a slightly better deal than
Speaker 2: if you say it's an investment property. As I understand
Speaker 2: the claim against her, there are two properties she bought
Speaker 2: pretty close together. This was before she became a public official,
Speaker 2: and she put primary residents on both of them. And
Speaker 2: I think that's something like thirteen cases that have ever
Speaker 2: been prosecuted during the last year or something. It's incredibly
Speaker 2: rating in the prosecution and what is really playing out here, it's.
Speaker 1: Just too many case, you'd say the following. First, the
Speaker 1: Donald Trump was accused of a similar crime, obviously for
Speaker 1: commercial reason as opposed to private reasons. But he basically
Speaker 1: also give incorrect information two lenders around loans, you know,
Speaker 1: for his buildings. And what happens in this scenario is
Speaker 1: that the idea is that the bank is effectively being
Speaker 1: a price and by lying to the bank, you are
Speaker 1: stealing like to the bank and defrauded the bank, you know,
Speaker 1: because the bank is he had it known the full
Speaker 1: information that he wanted to know, would get a bit
Speaker 1: of more money from you because of that, you know,
Speaker 1: the high interest rate that's obviously income for the bank.
Speaker 1: And the other part of it would be that despite
Speaker 1: the fact that this happened before she was a public official,
Speaker 1: one of the strongest you know it features of a
Speaker 1: central bank is his reputation and integrity. There's a reason
Speaker 1: that they say this these banks are basically you know,
Speaker 1: independent and so on. Is because a lot of the
Speaker 1: the strength of forslf In Reserve Bank is our belief
Speaker 1: that Fiaco is a very hornorriable, you know, strong leader
Speaker 1: and that he would stand up to political pressure that
Speaker 1: kind of stuff, and he's not going to be corrupted
Speaker 1: and whatnot, and that obviously feeds into the same idea.
Speaker 1: On the other hand, like you said, it's a very
Speaker 1: very you know, it's like basically accusing somebody of a
Speaker 1: crime out of jaywalking and then you lose your job
Speaker 1: because of that. It's a very not quite as bad
Speaker 1: as that, but it is a very long stretch. But
Speaker 1: what I think the most important fact is that the
Speaker 1: reasoness comes up is I think that the Trump administration
Speaker 1: wants to move this governments with the ms of the Reserve,
Speaker 1: who are basically likely to go against these bushes, which
Speaker 1: is to basically decrease interest rates. And if he's doing
Speaker 1: it to one, he's probably had people searching for every
Speaker 1: one of these guys that he's against him. And I
Speaker 1: wouldn't be surprised they do dig up something because you know,
Speaker 1: as the Soviets is to say, show me the man,
Speaker 1: I'll show you the crime. Very few people are able
Speaker 1: to get by without absolutely you know, a spotless record
Speaker 1: in the history.
Speaker 2: Sure, And I mean he has control of the tax
Speaker 2: the tax authority. I mean there are sorts of things
Speaker 2: that could come out.
Speaker 1: Oh yeah, most certainly. I mean the dependant is incredibly powerful.
Speaker 1: Maybe he points people like the head of the FBI.
Speaker 1: The FBI can find a lot of stuff out if
Speaker 1: they wanted to. He has obviously controller in terms of taxes,
Speaker 1: but you know, just the lloy enforcement body to mean,
Speaker 1: but the part of justice can go after you for
Speaker 1: a number of different things. And like I said, I
Speaker 1: mean if you look at the the he could be
Speaker 1: someone any.
Speaker 3: One of us.
Speaker 1: If somebody was to follow us for a month before
Speaker 1: find something, we'd literally be like, you know, it's not
Speaker 1: coming to a crew stop and stop street. There'll always
Speaker 1: be something that you can find if you really really
Speaker 1: look hard.
Speaker 2: We're all looking at our phones while we're driving the Governed.
Speaker 2: That thanks very much, indeed, portfolio manager at rand Swiss.
Speaker 2: Just after six thirty, All the Money Show with Stephen
Speaker 2: krutis live on ninety two point seven and one WHO
Speaker 2: six FM, streaming on the Prime.
Speaker 5: And DStv channel eight five six.
Speaker 2: On the next Money Show, the chief executives of Bidvest,
Speaker 2: the country's largest employer, the short term insurance Sunter and
Speaker 2: the maker of Bobtail, Yum, Young Peanut butter and five
Speaker 2: Star maize meal RCL Foods. They'll take you through their
Speaker 2: company's results. We'll discuss the business of farming worms and
Speaker 2: bugs with the Snethlan Maduna, co founder of S and
Speaker 2: P Organic Products. Also analysis of all the top business
Speaker 2: news of the day.
Speaker 5: The Money Show, The Friday File, The Friday File.
Speaker 2: Well, I don't know if you've ever bitten to something
Speaker 2: or smelt something and you've suddenly taken back to a
Speaker 2: moment in your child. Maybe it's a toffee apple, or
Speaker 2: a particular type of chewing gum or something. But I
Speaker 2: often think if someone can harness that, if they can
Speaker 2: give you something better than anyone else can give it,
Speaker 2: that maybe takes you back a little bit, or they're
Speaker 2: going to print a fortune. Someone who's done that pretty
Speaker 2: well is Swatland Kitchen, to make toffees and rusks and granola.
Speaker 2: I suppose you'd call it good old fashioned natural stuff.
Speaker 2: Fritz fan Reinfeldt is a co founder of Swartlant Kitchen. Fritz,
Speaker 2: Good Evening. I read somewhere that your business pretty much
Speaker 2: started with toffee. Now you have a very different background.
Speaker 2: How did you get into the toffee business.
Speaker 5: Good Evening.
Speaker 7: Indeed, it did start with to toffee. It started and
Speaker 7: Darling Sweet started in twenty thirteen twenty fourteen, when you're
Speaker 7: hinty and myself lived in Darling and decided we're going
Speaker 7: to launch a toffee brand and sell it from Darling.
Speaker 7: As Darling it's a lot of tourists and there was
Speaker 7: nothing sweet to take home, And what is sweeter than
Speaker 7: taking a real, traditional, old fashioned, handcrafted toffee home to
Speaker 7: your loved ones or to yourself.
Speaker 2: There's something about toffee because a lot of people give chocolate,
Speaker 2: and I mean there's so much sort of chocolate in
Speaker 2: the world, or that they used to be until the
Speaker 2: price got too expensive. Toffee, though, I presume it keep better.
Speaker 2: I imagine it's actually better for you. It's also rarer.
Speaker 2: So does all of that make it a good gift?
Speaker 1: I think so.
Speaker 7: I think toffee is robust so it can travel, but
Speaker 7: it is. It is something that needs our range, is
Speaker 7: very hand crafted. It's really made the old phasianed way,
Speaker 7: like your Omar would have made it with top ingredients.
Speaker 7: So I do think it is a fantastic present, and
Speaker 7: it lasts longer in your mouth as well.
Speaker 2: I imagine it's pretty easy to make an ordinary toffee,
Speaker 2: And when I was at primary school, I made a
Speaker 2: very ordinary toffee for its But you produce extraordinary toffee.
Speaker 2: What makes it better? I mean, is it the quality
Speaker 2: of the ingredients? Is their skill? I don't know, do
Speaker 2: you have a special escum rate or something?
Speaker 7: I wish now, the big secret, I would say, is
Speaker 7: the best ingredients. There's no shortcut. If you want to
Speaker 7: produce a good product. The best ingredients available, and then
Speaker 7: to figure out figure out hinty. Hinty is the the
Speaker 7: he designs the toffees and the recipes, and it mustn't
Speaker 7: just be sweet, it.
Speaker 4: Must be exciting.
Speaker 7: It Misha a different a different flavor profile. So so yes, so,
Speaker 7: but I would say the best is ingredients and the
Speaker 7: hand craftedness.
Speaker 2: So I mean, I know that there's a lot of
Speaker 2: sugar and toffee, but what else goes into it?
Speaker 7: Well, sugar goes into it, butter goes into it, and
Speaker 7: condensal goes into it. And then the flavorings like we've
Speaker 7: got a bird's actually toffee or whatever that we add.
Speaker 2: The real thing.
Speaker 7: We don't add something that tastes like birds. Actually, we
Speaker 7: add the real McCoy.
Speaker 2: You also make rusks, and I have to say, there
Speaker 2: are moments in my life when I would I would
Speaker 2: consider myself a connoisseeur of rusks, you know, something of
Speaker 2: an expert. I mean, I'm not being entirely serious, but
Speaker 2: if I like to go camping with friends and family
Speaker 2: and all the rest, nothing better than making up, coming
Speaker 2: out of the tent, having a good old fashioned yawn,
Speaker 2: spending an hour making coffee, and then sitting down with
Speaker 2: the rusk. Now, again, there are plenty of ways to
Speaker 2: make very ordinary rusks. I imagine with your rusks it's
Speaker 2: the same thing. The quality of the ingredient.
Speaker 7: Yes, the quality of the ingredients of Swatlant kitchen rusks
Speaker 7: and cookies. That's that's so important. And also baking it
Speaker 7: the real traditional way as it was one hundred years ago.
Speaker 7: Maybe we've got electricity now. One hundred years ago we
Speaker 7: also probably had, but baking it the real way and
Speaker 7: making it by hand. I think also taking no shortcuts
Speaker 7: producing a top quality product does does does give you
Speaker 7: a product with top flavors?
Speaker 2: Do you put more ingredients in?
Speaker 1: So?
Speaker 2: I mean with a rusk you could put in a
Speaker 2: sultana or a raisin or something. I suppose if you
Speaker 2: want it. I mean, does that make it? And you
Speaker 2: can also this You've got a wide range of flavors.
Speaker 2: You can go from ginger to sort of plane, to
Speaker 2: a buttermilk to whatever. And that must give you quite
Speaker 2: a lot of scope.
Speaker 7: Yes, I think. I think the opportunities for ingredients in
Speaker 7: rusks is endless. South Africans do tend to like traditional
Speaker 7: flavors like buttermilk, and then the normal breakfast rusk, but
Speaker 7: but adding we recently launched a sunflower and sesame rusk
Speaker 7: which is going down extremely well. And that's just that
Speaker 7: flavor of the systemI just makes it amazing.
Speaker 2: I mean it's rusks and toffee. Are there things where
Speaker 2: you can you know, come up with new recipes forever?
Speaker 2: I mean you can keep changing your range and you
Speaker 2: know have a season of this sort of season of that.
Speaker 2: I mean, is there that much scope for it?
Speaker 4: I think the tern fictionary market in South Africa.
Speaker 7: Is huge and I think there's a lot of scope.
Speaker 7: There's a lot of scope for a hand crafted product
Speaker 7: that people understand, the love and the time that goes
Speaker 7: into it. And the same with Russ. Our Russ are
Speaker 7: baked at if he does a paran in Darling, which
Speaker 7: also gives it a geographical point. I'm going to tell
Speaker 7: you a top secret something that you may please not
Speaker 7: till anybody, but the name of Swatron Kitchen we're going
Speaker 7: to change to if he does a paran next year,
Speaker 7: as it is baked in this iconic place of South
Speaker 7: African history and Russ is something that all South Africans
Speaker 7: have in common. That's one thing every all South Africans
Speaker 7: know so yes, so if it does. The paran rugs
Speaker 7: are coming soon, but currently it's still Swatron Kitchen as
Speaker 7: it's baked in the Swartland.
Speaker 2: I was going to ask you about the location of Darling.
Speaker 2: I mean, I've been past it and done what everybody does.
Speaker 2: Stand with my wife next to the next to the
Speaker 2: sign that says Darling, take a picture and go back
Speaker 2: to Cape Town. And that was just because you know,
Speaker 2: time there's a plane or something. But is there something
Speaker 2: about the about town that allowed you enabled you to
Speaker 2: do this? You made the point a lot of tourists
Speaker 2: go through it. They're kind of wanting to spend money.
Speaker 2: They're in the mood, they're looking for things like the
Speaker 2: things you sell. But I don't know if you're what
Speaker 2: I suppose. What I'm asking is, do you think your
Speaker 2: business would have worked somewhere else? I don't really know.
Speaker 2: I don't really know if it would have.
Speaker 7: Look, I think it's all in the name, or a
Speaker 7: lot of it is in the name. Darling is such
Speaker 7: a wonderful name to name to use in one's business.
Speaker 7: But Darling's position is fantastic, as it's eighty kilometers north
Speaker 7: of Cape Town en route to the West Coast, so
Speaker 7: it gets a lot of traffic passing by. And you know,
Speaker 7: we've got flower season now and the flowers are absolutely beautiful.
Speaker 7: So a lot of tourists are coming into Darling to
Speaker 7: visit Darling and to see what's what Darling has got
Speaker 7: to offer. And there we are very grateful to to
Speaker 7: have swats On Kitchen currently, I bespur on and then
Speaker 7: Darling's Suite and the tasting rooms and people come and
Speaker 7: visit and they can see our products and where it's made.
Speaker 7: So I do think our town has had a huge
Speaker 7: part in the success of Darling Sweet as well as
Speaker 7: Swatland Kitchen.
Speaker 2: Are you able to use your businesses there to sort
Speaker 2: of help the community. You know there's a lot of
Speaker 2: unemployment in most parts of the country. I mean, are
Speaker 2: you able to to use it to leverage it in
Speaker 2: that way as well?
Speaker 7: One of our main aims is job creation. When Hinty
Speaker 7: and I started the business in twenty fourteen, we we
Speaker 7: said one of our main aims job job, job creation.
Speaker 7: That's why we make a handcrafted product. And we truly
Speaker 7: started with one full time and one half day staff
Speaker 7: member and we we're proud to say we've got city
Speaker 7: three staff members currently from all you know, all walks
Speaker 7: of life, and we incredibly proud of our teams as
Speaker 7: they develop and as we grow together and work as
Speaker 7: a team. So I think job creation is something that
Speaker 7: we very much part of for the community.
Speaker 2: I mean, that's a lot of rusks and toffees that
Speaker 2: you're selling to employ thirty three people.
Speaker 4: I'm telling you, I guess it is.
Speaker 7: But we do go but further Field and Darling. So
Speaker 7: we've got an online store and we also supply to
Speaker 7: independent stores and some smaller retailers and gifting gift gifts
Speaker 7: gifting stores.
Speaker 2: Yes, no, I'm sure. Do you see much scope for
Speaker 2: a kind of international audience. I mean, you're a company
Speaker 2: making something in a small place with a wonderful name.
Speaker 2: I mean, do you sort of get into the sort
Speaker 2: of e commerce market, maybe get some inquiries from I
Speaker 2: don't know, the UK, I'd say the US, but then
Speaker 2: you have to send it to the postal system, and
Speaker 2: no one wants to send things to the US anymore
Speaker 2: because it's very complicated and messy. But I mean, are
Speaker 2: you looking at that international.
Speaker 4: Market, Yes, we are.
Speaker 7: Exports isn't as easy and up until COVID, we were
Speaker 7: quite busy with exports, but after COVID we still we
Speaker 7: still do export. Africa is a wonderful, full place and
Speaker 7: there's a lot of money. There's a lot of potential
Speaker 7: in South Africa and in Africa I mean, but also Australia,
Speaker 7: New Zealand, the Americas. So there's yeah, there is cope,
Speaker 7: but it is a different ballgame. You need to focus
Speaker 7: on export.
Speaker 2: Fritz, it was great to talk to you, and thank
Speaker 2: you very much. And can can I ask you a
Speaker 2: personal favor if you'll just say hello to Tony Evita
Speaker 2: for me please.
Speaker 1: I will do that.
Speaker 7: I'm seeing her tomorrow, she's on stage at twelve o'clock.
Speaker 7: I will send him send.
Speaker 2: Her your love, please. I haven't spoken to her for
Speaker 2: a long time. Fritz, I really do appreciated. Fritz from
Speaker 2: Reinafelt is the co founder of what is still for
Speaker 2: now called the Swachtland Kitchen. But of course, in a
Speaker 2: Money Show exclusive, you heard it's changing its name. Seven
Speaker 2: it's on the Money Show six to eight pm. All right,
Speaker 2: Oh double one double A three oh seven O two
Speaker 2: two one four four six O five six seventh time
Speaker 2: Now for the Friday Biz. Let's there are plenty of
Speaker 2: questions to come. You know how it works. We ask
Speaker 2: you a question. If you get it right, we move
Speaker 2: on to the next question. If you get it wrong,
Speaker 2: we move on to the next caller. First question on
Speaker 2: the Friday BIS Blitz tonight, Lisa Cook is the governor
Speaker 2: of which bank? Lisa Cook is the governor of which bank?
Speaker 2: Oh double one double a three seven oh two o
Speaker 2: two one four four six oh five six seven.
Speaker 5: The Money Show Friday bus Blitz.
Speaker 2: First question on the Friday BIS Blitz Tonight, Lisa Cook
Speaker 2: is the governor of which bank? Oh double one double
Speaker 2: A three seven o two two one four four six
Speaker 2: five six seven of which bank is Lisa Cook the governor.
Speaker 2: Questions two around swifties and question around first rand and
Speaker 2: something about the toy industry. You heard earlier about the
Speaker 2: toy industry. It's really all about parking and actually getting
Speaker 2: into strip mares very very quickly. You don't want to
Speaker 2: go if you have to go and get a toy.
Speaker 2: You don't want to have to go and get parking
Speaker 2: in a ticket and this and of that, and go
Speaker 2: up three floor and take your child past other stores.
Speaker 2: You just want to get the one thing, So we'll
Speaker 2: ask a question about that. But first the first question
Speaker 2: is Lisa Cook is the governor of which bank? And
Speaker 2: that is the first question tonight on the Friday bis Bilitz.
Speaker 2: And of course it is someone who, as you know,
Speaker 2: has been in the news for all sorts of reasons,
Speaker 2: and in fact that governor was talking about it a
Speaker 2: little earlier. Here's a pretty dark prediction about what is
Speaker 2: going to happen around sort of Lisa Cook and how
Speaker 2: things are going to play out with that particular bank.
Speaker 2: You know which bank. I'm sure you know which bank
Speaker 2: it is. But the first question is Lisa Cook is
Speaker 2: the governor of which bank? And you know the number
Speaker 2: double one double a three seven o two and two
Speaker 2: one four four six five six seven. Questions also to
Speaker 2: come about the IDC, the Industrial Development Company, and then
Speaker 2: the very strange things that have been happening in the
Speaker 2: United States around a particular company, which I thought was
Speaker 2: very interesting. But our first question is Lisa Cook is
Speaker 2: the governor of which bank? On O double one double
Speaker 2: a three seven oh two and two one four four
Speaker 2: six five six seven, And of course that is the
Speaker 2: first question that we have tonight on the Friday bis Blitz.
Speaker 2: There are plenty of questions to come, don't forget best.
Speaker 2: But we'll be starting for you in a couple of
Speaker 2: moments as well, after the news, and there'll be plenty
Speaker 2: more of course to come. So yeah, I don't know
Speaker 2: if you are. Maybe we should move to the second question.
Speaker 2: What do you call a group of people? When you
Speaker 2: call a group of people swifties, which pop star are
Speaker 2: they a fan of? Sure you have a teenager in
Speaker 2: your life. If you're a swifty, who do you follow?
Speaker 2: Who's the pop star that you follow?
Speaker 4: Oh?
Speaker 2: Double one, double A three seven, oh two and two
Speaker 2: one four four six five six seven, it's you're at
Speaker 2: the Money Show. It's Friday, good evening. It's seven o'clock