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

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Speaker 1: oh two. Let's walk at all.

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Speaker 2: The Money Show with Stephen Curtis has brought to you

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Speaker 2: by Absent Corporate and Investment Banking. Refined performance is a

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Speaker 2: measure of discipline. That's how we're invested in your story.

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Speaker 2: It's a registered FSP. Good evening, nine minutes after six times,

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Speaker 2: Stephen crutis a dramatic day on the markets. One of

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Speaker 2: those days with is a kind of I think I

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Speaker 2: used the word earlier, a reckoning, a kind of accounting,

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Speaker 2: a kind of understanding of how deep this crisis is.

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Speaker 2: All sparked of course, this time around, at least by

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Speaker 2: the US and his ready attacked on Iran and then

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Speaker 2: Iran's response. They're hitting US allies where it can. The

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Speaker 2: market reaction has really been astonishing and all driven and

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Speaker 2: this is all sort of obvious. You'll know this already,

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Speaker 2: all driven by much higher oil prices just under eighty

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Speaker 2: four dollars a barrel last time I checked. We were

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Speaker 2: warned yesterday there'll be huge volatility on volatility on the markets,

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Speaker 2: and so it has shown to be the US markets

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Speaker 2: taking that lead, following that lead, really astonishing that US

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Speaker 2: market started. Yes, they're almost positive today, they start nearly

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Speaker 2: two percent down all three of the major indices. I

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Speaker 2: think that sort of tells you something. People beginning to

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Speaker 2: understand how bad, how this is going to be, how

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Speaker 2: big it is going to be. I think also maybe

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Speaker 2: beginning to worry about how long it lasts too. Lots

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Speaker 2: of different sectors involved in different ways. We spoke about

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Speaker 2: chipping and oil last night, and international markets. Will sort

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Speaker 2: of check in with the aviation industry a little later

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Speaker 2: on the program because they're hugely affected, although I'm sure

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Speaker 2: airlines that serve that part of the world will also

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Speaker 2: have made some plans over the years. But at the

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Speaker 2: same time, a big results stay on the JC. Peter Engelbrecht,

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Speaker 2: the CEO of the Shopwrite Group, He'll be on your

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Speaker 2: radio in just a moment about their results. Adrian Gorett

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Speaker 2: Discovery lots to ask him. Sean Cabazzario is the chief

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Speaker 2: financial officer at Aspen. You'll hear from him at around

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Speaker 2: twenty to seven this evening. And then the CEO at Nedbank,

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Speaker 2: Jason Quinn, lots to talk about there as well. So

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Speaker 2: busy show tonight. Lots going on on the markets as well.

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Speaker 2: We'll keep you up to date with all of it.

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Speaker 2: Good to year from you on O double one double

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Speaker 2: A three oh seven oh two and two one four

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Speaker 2: four six five sixty seven from you tonight. Where would

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Speaker 2: you invest at this moment, considering what's happening in so

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Speaker 2: many of the countries around the Middle East? Oh seven

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Speaker 2: two seven oh two one seven oh two? Would you

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Speaker 2: do what a lot of people are doing. Would you

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Speaker 2: be buying shares in our coal companies tonight? Would you

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Speaker 2: be looking at Sasol? Would you be looking somewhere completely different?

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Speaker 2: Where would you put your money in this environment? Looking

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Speaker 2: forty Your voice notes this evening The Lonly Show.

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Speaker 3: With Stephen Kruders live on ninety two point seven and

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Speaker 3: one O six a FM, streaming on the Prime Media Plus.

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Speaker 1: NAP and DStv channel eight five six.

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Speaker 2: Twelve after six now the Shopwright Group reporting its sales

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Speaker 2: and headline earnings both up by around seven percent. Their

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Speaker 2: internal selling price inflation was just zero point seven percent,

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Speaker 2: many products actually going down in price, but lower inflation also,

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Speaker 2: and I suppose some of their competitors putting a put

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Speaker 2: of pressure on their margins. Peter Engobrecht is the CEO

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Speaker 2: of the Shopwright Group, Peter Good evening. Good to chat

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Speaker 2: to you again on the Money Show. Thank you. You

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Speaker 2: were able to increase your sales quite strongly. Are you

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Speaker 2: also getting new customers as well? From what I can

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Speaker 2: see you're opening a lot more news stores. You must

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Speaker 2: still be increasing market share.

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Speaker 4: Yes, both are correct. Two things probably worth mentioning. One

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Speaker 4: is the low inflation and even in December having deflation

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Speaker 4: that's really assisted consumers to actually drive additional volume. So

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Speaker 4: we've managed to grow volume but also customers by five

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Speaker 4: point six percent. Now that equates to an additional one

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Speaker 4: point two million customers a week that we served additionally

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Speaker 4: in the past six months, which is a very very

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Speaker 4: pleasing result. The inflation, as I say, in December was

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Speaker 4: as a result of fourteen thousand items actually cheaper than

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Speaker 4: the previous year. Now we know currently the cost of

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Speaker 4: living in Africa has gone up dramatically, so at least

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Speaker 4: there was summary relief for them. And on top of

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Speaker 4: that our extra sellings customers, we managed to give them

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Speaker 4: discounts back at till point to the value.

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Speaker 2: Of nine point seven billion. So I hear you, I

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Speaker 2: mean I presume most of the goods that went down

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Speaker 2: in price would be most things that are made of

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Speaker 2: plastic and manufactured goods. Many of them are deflationary. As

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Speaker 2: you say, your internal selling price inflation zero point seven percent,

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Speaker 2: I don't know off the top of your head if

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Speaker 2: you have a figure for food price inflation in your stores.

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Speaker 2: I mean, I presume it would be higher than that

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Speaker 2: point seven percent for food.

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Speaker 5: No, that is a food.

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Speaker 4: That is the food inflation, internal inflation and cell inflation.

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Speaker 2: Not cost.

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Speaker 4: So we, as I mentioned, we had quite a lot

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Speaker 4: of items in deflation. Mentioned just three examples, maybe potatoes, rice,

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Speaker 4: maize over forty de inflation cheaper than last year. So

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Speaker 4: that definitely effers us that some of our consumers to

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Speaker 4: relief a little bit of the of the higher cost

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Speaker 4: inflation meaning living course, it's.

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Speaker 2: A huge change when you consider December's food price inflation

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Speaker 2: from status sales four point four percent. Different retail groups

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Speaker 2: seem to have had different experiences during Black Friday, And

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Speaker 2: I mean there's Black Friday the day, but it's become

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Speaker 2: a sort of week or even a month in some cases.

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Speaker 2: Did you notice a lot more traffic through your stores,

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Speaker 2: maybe on the day itself, or perhaps the whole week?

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Speaker 4: Four days actually in our case, and were at a

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Speaker 4: fantastic December and Black Friday grown substantially on last year,

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Speaker 4: which is a huge number. But for December, the shop

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Speaker 4: group outgrown the rest of market five point three times.

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Speaker 4: And then in January, which is normally your difficult month

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Speaker 4: people are short on money after Christmas, and shop rate

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Speaker 4: also have outgrown the rest of market four times in

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Speaker 4: January with an inflation of zero point seven percent again

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Speaker 4: and that actually came down now in February two point five,

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Speaker 4: so I don't see a quick.

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Speaker 2: Acceleration of inflation.

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Speaker 4: Yes, we unfortunately, I mean I was really hoping for

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Speaker 4: a reduction in fuel because we have such a big

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Speaker 4: supply chain and fuel means and now tomorrow we're going

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Speaker 4: to go up.

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Speaker 2: So who knows what the.

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Speaker 4: Middle East will bring us. I'm sure you also want

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Speaker 4: to know from if we are affected by what's happening

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Speaker 4: in the Middle East. So the short answer is we

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Speaker 4: can hundred and sixty two containers stuck currently in the

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Speaker 4: Sewers Canal, but I mean it's not a crisis for us.

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Speaker 4: It's mostly general merchandise and I'm sure the shipping line

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Speaker 4: is will make some plan in terms of feeder vessels,

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Speaker 4: et cetera. Mercer already announced that they're going to come

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Speaker 4: around the Cape.

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Speaker 6: Now.

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Speaker 2: Well, I mean the longer it goes on, the bigger

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Speaker 2: the chances that it does have an impact on you

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Speaker 2: in the end. I mean, people will want to buy

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Speaker 2: the things that are in the containers and we don't

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Speaker 2: know how long they'll be there for.

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Speaker 4: Yeah, but it's fortunately, as I say, general merchandise, so

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Speaker 4: it's things like glass were in those kind non non

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Speaker 4: perishable items.

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Speaker 2: Sure your pitch shop science business is growing very strongly.

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Speaker 2: And I mean we talk about people being cash strapped,

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Speaker 2: but it does seem South African is still spending quite

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Speaker 2: a lot of money on their animals. Yeah. That started

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Speaker 2: in COVID.

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Speaker 4: Then people sort of got a companion or some sort

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Speaker 4: and the market size actually doubled since then. It was

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Speaker 4: about three point seven billion, then it's now almost eight

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Speaker 4: billion the market size of pet food. And that's when

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Speaker 4: we saw the opportunity and it was a greenfield operation.

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Speaker 4: We now one hundred and seventy three stores are doing

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Speaker 4: really well. It is profitable and we've started to add

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Speaker 4: it now on the sixty sixty platform, which have received

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Speaker 4: greater reception from the public. The other thing that also

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Speaker 4: drives it a little bit. I say it courtiously, but

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Speaker 4: there is a tendency for younger people gen zs and

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Speaker 4: them to opt for animals and maybe not have kids.

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Speaker 4: There's definitely a difference that we can see how people

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Speaker 4: look at that. And then there's another thing that I've

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Speaker 4: noticed is that people almost have humanized the pits. So

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Speaker 4: the experience of shopping your pet food must be equal

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Speaker 4: to that as if you're shopping for a human, because

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Speaker 4: the pet doesn't go by his own food.

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Speaker 2: So if we really think about what pit stores.

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Speaker 4: Look like ten years ago or so, and what our

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Speaker 4: stores look like today, and the care that one has

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Speaker 4: to take with hygiene and food safety, it's similar to

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Speaker 4: equal to with that what we're doing with humans shops.

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Speaker 2: Amazing how things are changing. Peter Engelbreath, thank you so

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Speaker 2: much to see you at the shop right group the

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Speaker 2: Money Show the Market. Marco is the lead specialist for

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Speaker 2: investment and Trading Sales that Abscess cib Marco. Good evening. Wow,

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Speaker 2: I don't even know where to start right everywhere unless

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Speaker 2: you're kind of a the energy space today.

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Speaker 7: Absolutely, Stephen, I mean we in the industry will call

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Speaker 7: it blood on the streets. Top forty down nearly six percent.

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Speaker 7: I mean that's a very large move and being led

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Speaker 7: down by the two dollars of the market from last year. Platinum,

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Speaker 7: you know, aggressively down in parlor down seventeen percent. Gold's

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Speaker 7: also following that down, with gold fields as the worst

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Speaker 7: performing down nearly ten percent.

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Speaker 2: Yeah, I mean, obviously people think there'll be less demand

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Speaker 2: for cars that the kind of cars that use platinum

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Speaker 2: oil prices at this level, that makes sense. I was

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Speaker 2: a little surprised that gold weakened so strongly. I mean,

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Speaker 2: there's no sign of a conflict ending absolutely, Stephen.

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Speaker 7: I mean what we see generally in these environments we

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Speaker 7: have big risk off days and everything gets sold, including

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Speaker 7: what's considered safe haven everyone moving into dollars, so dollar

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Speaker 7: up sort of two percent into trading sessions. But it

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Speaker 7: tends to be knee jerk, and we see people often

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Speaker 7: will have to sell their golds to fund other positions,

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Speaker 7: to you know, cover calls, to do that sort of thing,

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Speaker 7: and over time they come back into that gold and

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Speaker 7: you see gold safe haven status return. So it really

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Speaker 7: seems like a bit of a knee jerk to me today,

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Speaker 7: you know, a big down day, but I feel like

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Speaker 7: it will reverse in the coming days.

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Speaker 2: I mean, it's always so interesting to see, how you know,

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Speaker 2: the first time US markets opened after the conflict yesterday,

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Speaker 2: they were kind of tentative. Today they're down two percent.

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Speaker 2: Sometimes it just takes a while for people to understand

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Speaker 2: what's really going on. Yeah, absolutely, I.

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Speaker 7: Mean I think our markets are well supported. On Monday,

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Speaker 7: I mean that we saw gold price up, we saw

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Speaker 7: the PGM prices up, we saw of those stocked up.

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Speaker 7: We saw sastle up aggressively to start the day, and

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Speaker 7: that slowly faded through the day as the risk off

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Speaker 7: sentiment really really took hold. You know, we saw it

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Speaker 7: continue through today, you know, across the board, basically two

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Speaker 7: noticeable ones. I guess you know you spoke about some

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Speaker 7: of those results, So Discovery up half, clearly the market

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Speaker 7: liking that one, and it has been also coming in

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Speaker 7: forty five bases points strong on the day.

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Speaker 2: I mean, they've had a difficult time. We'll hear from

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Speaker 2: them in a moment, but I think you know, if

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Speaker 2: you're in the business of producing weight loss drugs, people

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Speaker 2: are going to buy your.

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Speaker 7: Share, absolutely right, And I mean, as you said, huge

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Speaker 7: demand for that, but also I think just overall, people

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Speaker 7: more comfortable with the group's strategy. You know, debt pre

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Speaker 7: balance sheet, recovering, profitabilits in their manufacturing business, improving free

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Speaker 7: cashlow coming through as well, and you know they've disposed

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Speaker 7: of some assets which are unlocking value. So I think

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Speaker 7: investors looking at the story and really liking where it's going.

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Speaker 2: Shop right there. Sales up seven percent. You heard Peter

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Speaker 2: Enlbrecht earlier. He always sells a good story, but he's

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Speaker 2: got a great story to sell.

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Speaker 7: Absolutely, and I mean I think particularly if you zoom

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Speaker 7: in on that sixty sixty business, I mean really shooting

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Speaker 7: the lights out, you know, nearly a thirty five percent

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Speaker 7: increase in sales again, active customers up another twenty percent.

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Speaker 7: I mean that that has been the key differentiator in

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Speaker 7: the market and continues to win market share.

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Speaker 2: Marco Fafia, thanks very much, indeed, lead specialists for Investment

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Speaker 2: and Trading sales at Abscess CIB bringing the time to

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Speaker 2: six thirty.

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Speaker 1: What's up to Stephen Oner seven two seven oh two

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Speaker 1: one seven oh two.

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Speaker 2: Well, of course responses coming in and what where would

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Speaker 2: you invest in these difficult times? I mean, very difficult

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Speaker 2: to kind of know what you would do and where

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Speaker 2: you would put the money if you had it. Just

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Speaker 2: to you know, we've been talking about oil prices and

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Speaker 2: how high they are and how sort of quickly they've

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Speaker 2: gone up. At the same time though in February, so

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Speaker 2: this obviously is before the latest around Iran, Israel, the US,

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Speaker 2: and all of the consequences for other countries. New car sales,

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Speaker 2: passenger car sales are up eleven percent. We know also

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Speaker 2: because we heard on Friday that I think for the

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Speaker 2: same month might have been January, but used car sales

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Speaker 2: were also up eleven percent. Someone asked me today, are

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Speaker 2: you just that interested in cars? I'm not that interested

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Speaker 2: in cars. I mean, I don't mind talking about cars.

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Speaker 2: Not my big thing. And yet the car industry is

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Speaker 2: in such an interesting position at the moment because so

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Speaker 2: many things seem to be changing. But eleven percent it's

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Speaker 2: new car sales. Do you wonder where all the traffic

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Speaker 2: on the roads comes from? I think it's not that

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Speaker 2: hard to work out. Oh seven two, seven oh two

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Speaker 2: one seven oh two. It's the twenty three minutes now

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Speaker 2: to seven o'clock.

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Speaker 8: The Money Show was given a Klutzez is brought to

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Speaker 8: you by apps of corporate and investment backing. Refined performance

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Speaker 8: is a measure of discipline. That's how we're invested in

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Speaker 8: your story. Adds as are raised at their f.

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Speaker 2: FPE seventeen minutes now to seven the time. Good year

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Speaker 2: from you tonight. I know seven two, seven oh two one,

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Speaker 2: seven oh two. I mean, just places to put your money.

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Speaker 2: I mean, I know there's a thought about buying the

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Speaker 2: dip in these difficult times. This would sort of be

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Speaker 2: the moment to do it, maybe in a car share

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Speaker 2: or something like that. I think you'd probably have to

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Speaker 2: be a pretty brave investor. So many people just worried

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Speaker 2: about oil prices and energy prices. And at the same time,

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Speaker 2: we have so many of our companies reporting, and so

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Speaker 2: many of them reporting really very strong results. Aspen reporting

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Speaker 2: well a big drop of normalized earnings down twenty one

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Speaker 2: percent in the six months to the end of December.

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Speaker 2: But if you look at the longer term, things looking

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Speaker 2: a lot better for ASP and a lot of that

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Speaker 2: cost was a one sort of restructuring cost in their

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Speaker 2: sterile manufacturing facilities. Here and in France. A short Zorio

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Speaker 2: is the chief financial officer at the Aspen Group Sean,

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Speaker 2: good evening and thanks for your time. You've made a

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Speaker 2: lot of progress with the restructure of these plants already.

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Speaker 2: When they come online, which I suppose will be soon,

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Speaker 2: what sort of difference do you expect them to make

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Speaker 2: to your business?

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Speaker 9: Yeah?

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Speaker 10: Thanks, thanks Steven, good to chat to everybody. I think

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Speaker 10: we've been through a really tough time. If you remember,

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Speaker 10: we lost that contract in our French facility.

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Speaker 11: Last year, and so we've we've had to relook.

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Speaker 10: At our whole, our whole sterile facility model in terms

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Speaker 10: of how we shape it to the contracts that we've got,

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Speaker 10: and so over this period we've we've done quite a

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Speaker 10: lot of reshaping and optimizing of costs and it's improving efficiency.

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Speaker 10: So those and obviously a by product of that is

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Speaker 10: unfortunately the restructuring costs we've had to book in this half.

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Speaker 11: But we do see going forward you're going.

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Speaker 10: To have the annualized benefits of all of those efficiencies

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Speaker 10: and cost savings into the second half of twenty twenty six,

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Speaker 10: and then you'll have a full benefit going through into

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Speaker 10: twenty seven. So I think we've done quite a lot

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Speaker 10: in that space and the first half, we've had to

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Speaker 10: take the pain of absorbing those costs, and we've also

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Speaker 10: obviously in the first half lost the contribution from that

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Speaker 10: contract that we had in the first half of Lossy,

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Speaker 10: which we then had we lost in the second half.

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Speaker 10: So the first half was impacted by all of that,

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Speaker 10: and I think that's ready behind us now and we've

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Speaker 10: got a bit of works to do, but we've done

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Speaker 10: most of the hot heavy listing.

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Speaker 2: What are you expecting to be making in these facilities?

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Speaker 2: I mean, I presume you're putting a lot of money

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Speaker 2: into them. I presume that love making product.

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Speaker 10: Those facilities are making product, and I've got very stable

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Speaker 10: a French facilities got very good gold standard multinational.

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Speaker 11: Companies like GSK as their customers. So it was just

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Speaker 11: the sizing of that facility was also to service that

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Speaker 11: contract that we lost, so we've had to reshape the

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Speaker 11: post a loss of that contract.

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Speaker 10: But certainly we've got valuable contracts in that facility already

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Speaker 10: that is ready just cutting our cloths to the existing

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Speaker 10: contracts in France and then in South Africa, we've done

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Speaker 10: all the heavy investment in that facility and I think

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Speaker 10: the first first contract that will become an anti cotenant

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Speaker 10: is the insulin contract for Novo and Ordisk, and we

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Speaker 10: did announce that that's going well. We killed commercial production

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Speaker 10: in this off and we're expecting regulatory approval in the

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Speaker 10: second half by the end of this quarter in fact,

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Speaker 10: and then.

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Speaker 11: That's those volumes will ramp up going forward as well.

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Speaker 11: So we do see those.

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Speaker 10: Volumes also then picking up in our South African facility.

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Speaker 10: And we've also got the pediatric vaccines which have also

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Speaker 10: been along on the horizon to come through that facility

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Speaker 10: twenty seven twenty eight. So I think we're in a

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Speaker 10: very good space there. I and certainly those facilities or

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Speaker 10: well get But so the French facility is fully running

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Speaker 10: and the one in South Africa, the sterile facility, not

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Speaker 10: the rest of the facilities that one's got enough start

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Speaker 10: getting some volume entered in the insolent contract is the

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Speaker 10: first of that volume to come through.

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Speaker 2: Like a lot of other companies, you're seeing a lot

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Speaker 2: of demand for any of the weight loss strikes that

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Speaker 2: you're involved into the year it's Mount Jarro in South Africa,

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Speaker 2: you're seeing a lot of demand.

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Speaker 11: You say, yes, it's been a real success.

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Speaker 10: I think that emanates from the partnership that we've had

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Speaker 10: with Lily, which.

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Speaker 11: I think we announced about it eighteen months ago.

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Speaker 10: And this product is a real global it's a global

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Speaker 10: blockbuster product and we were fortunate to be able to

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Speaker 10: launch it in South Africa.

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Speaker 11: We've also recently over the last period, got the approval

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Speaker 11: for the indication for weight management. We've got the proved

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Speaker 11: in the.

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Speaker 10: Quick pen delivery system, so those have also been catalysts

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Speaker 10: to increasing the demand. But we do anticipate that this

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Speaker 10: product will I think in the first half of calendar

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Speaker 10: twenty six, over a twelve month period, should reach a

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Speaker 10: billion round revenue mark over that time.

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Speaker 11: So the demand is going very well in that product.

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Speaker 2: We spoke to Adrian Gore as you know as the

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Speaker 2: CEO Discovery. You spoke to him about twenty minutes ago

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Speaker 2: and I asked him about would it ever be about

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Speaker 2: does he ever expect medical aids to pay for these

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Speaker 2: drugs not just for sort of urgent need but just

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Speaker 2: for weight loss. His response was rarely about the cost

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Speaker 2: which he expects to come down. How do you see

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Speaker 2: that pathway in terms of costs for these drugs coming down?

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Speaker 10: Look, I think these type of products I think are.

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Speaker 11: All out of pocket products.

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Speaker 10: I think there are branded products and you know they've

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Speaker 10: got unfortunately, they do have a lot of research and

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Speaker 10: technology behind them. I think our strategy where were gain

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Speaker 10: to look at launching generic GLP ones, which will be

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Speaker 10: in a very different sort of segment of the market.

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Speaker 10: I think those will be the more affordable products, which

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Speaker 10: will potentially then be refunded by the medical aids.

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Speaker 11: But I think the branded products.

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Speaker 10: Given given the R and D that's gone into them,

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Speaker 10: I don't think you're going to see I mean, pricing

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Speaker 10: is pretty competitive if you look at global pricing, but

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Speaker 10: certainly relatives to to the sort of lower consumer LICM

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Speaker 10: consumers that's not affordable, so that there will be a

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Speaker 10: segment of that that will come through generic supply. Is

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Speaker 10: that as that as that happens over the next.

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Speaker 11: Couple of years, But there will be very different segments.

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Speaker 10: The one is a branded and a premium product, and

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Speaker 10: now the one will be the more affordable and the

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Speaker 10: generic product, which which will which will help that people

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Speaker 10: that can afford those products, and I think then medical

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Speaker 10: aids will also start to be able to refund There's

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Speaker 10: a lot of benefits from these products.

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Speaker 11: I mean blood pressure, cholesterol. There's a lot of other

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Speaker 11: benefits to the products as well.

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Speaker 10: So I think, you know, if you look at the

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Speaker 10: whole health the health economics around it, it will actually

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Speaker 10: benefit medical aids to reimburse these products because it will

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Speaker 10: reduce risk in other areas like quade evasculate, et cetera.

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Speaker 10: So I think there will be a case for it,

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Speaker 10: but this will I think the affordability is an in questions.

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Speaker 2: I mean, when the price does change and generics come on,

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Speaker 2: the only block then to the market will be the

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Speaker 2: fact that for the moment they're only available on prescription.

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Speaker 2: I don't know if that'll actually change.

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Speaker 11: I think, yeah, it's a good question.

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Speaker 10: Unfortunately not the expert in that field, but I think

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Speaker 10: the given the the way these products work, you do

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Speaker 10: need to go through a professional healthcare provider and indo

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Speaker 10: chronolysist and doctors because you've got to monitor all the

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Speaker 10: you know, the the impact of these products.

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Speaker 11: I think the prescription element.

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Speaker 10: Will will always be there, but I think as you know,

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Speaker 10: as people get onto the product and they're using them

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Speaker 10: on a more regular basis, I think then it may

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Speaker 10: well move into into a more sort of over the

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Speaker 10: countertop thing over time, but in South Africa certainly prescription.

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Speaker 10: I think in some markets like Resolve, I think some

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Speaker 10: of the products can be gotten over the counter, but

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Speaker 10: it does take time and trust with you know, with

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Speaker 10: the other providers outside of the healthcare profession.

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Speaker 2: Sean Cappazoril, thanks very much, indeed, ready to appreciate it.

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Speaker 2: The chief financial officer at the Aspen Group. Interesting to

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Speaker 2: see how they seem to have recovered from the problems

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Speaker 2: they had last year the end of that contract. And

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Speaker 2: then of course I made the point it won't be

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Speaker 2: the last time you hear it. I'm afraid I think

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Speaker 2: in the weight loss game, plenty of people are going

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Speaker 2: to make an awful lot of money.

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Speaker 3: The Money Show with Stephenuit on seven oh two seven o.

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Speaker 2: Two NET Bank reporting its headline earning is up two percent,

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Speaker 2: their revenue are up three percent, their expenses who were

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Speaker 2: higher mainly because of that six hundred million round settlement

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Speaker 2: reached with trans Net over interest rate swap transactions that

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Speaker 2: happened during the state capture era. The CEO at Nedbank

440
00:22:43,040 --> 00:22:45,720
Speaker 2: is Jason Quinn. Jason, good evening, Thanks for your time.

441
00:22:45,800 --> 00:22:48,680
Speaker 2: Do appreciate it. I mean you're you're pretty optimistic as

442
00:22:48,680 --> 00:22:51,200
Speaker 2: a bank about what's changed in South Africa in the

443
00:22:51,280 --> 00:22:55,240
Speaker 2: last eighteen months. Your revenue was up only by two percent.

444
00:22:55,560 --> 00:22:58,479
Speaker 2: I mean, I presume the trans net settled settlement had

445
00:22:58,480 --> 00:22:59,960
Speaker 2: a bit of an impact on your final result.

446
00:23:01,440 --> 00:23:03,960
Speaker 6: Yes, Stephen, thank you and thanks for you know, hosting

447
00:23:04,040 --> 00:23:07,200
Speaker 6: me this evening and good evening to your listeners. Even

448
00:23:07,240 --> 00:23:11,320
Speaker 6: a couple of things. Firstly to the question around our

449
00:23:11,400 --> 00:23:13,679
Speaker 6: prospects as a country and how we see those at

450
00:23:13,720 --> 00:23:14,080
Speaker 6: the moment.

451
00:23:15,560 --> 00:23:17,400
Speaker 5: The first half of last year was very.

452
00:23:17,359 --> 00:23:19,560
Speaker 6: Different to the second half. First half of last year,

453
00:23:19,600 --> 00:23:22,600
Speaker 6: we saw a fair bit of risk off, you know,

454
00:23:22,720 --> 00:23:26,320
Speaker 6: the optimism we all expressed post election was struggling to convert.

455
00:23:27,080 --> 00:23:29,320
Speaker 6: Whereas in the second half, you know, you saw sovereign

456
00:23:29,400 --> 00:23:33,280
Speaker 6: bond yields come in dramatically, you know, so to ten

457
00:23:33,359 --> 00:23:37,879
Speaker 6: year lows, had you had the treasuries trading at you know,

458
00:23:38,040 --> 00:23:40,240
Speaker 6: seven eight percent, where they would have been at eleven

459
00:23:40,280 --> 00:23:44,040
Speaker 6: twelve percent not so long ago. Really a reflection of

460
00:23:44,160 --> 00:23:47,639
Speaker 6: the risk in the environment. For instance, if i'd soldier

461
00:23:47,720 --> 00:23:50,719
Speaker 6: a credit default swap in the second half of last year,

462
00:23:50,720 --> 00:23:53,040
Speaker 6: it was trading at investment grade levels, even though South

463
00:23:53,040 --> 00:23:54,040
Speaker 6: Africa is not there yet.

464
00:23:54,119 --> 00:23:54,560
Speaker 2: We saw the.

465
00:23:54,600 --> 00:23:58,720
Speaker 6: Sovereign rating improve with a positive outlook and then getting

466
00:23:58,760 --> 00:24:01,119
Speaker 6: off the graderst So all of these are kind of

467
00:24:01,160 --> 00:24:04,200
Speaker 6: real data points that affects our bank's cost of funding

468
00:24:04,240 --> 00:24:07,960
Speaker 6: and therefore, you know, lending to our customers and the

469
00:24:08,119 --> 00:24:09,800
Speaker 6: prime came off as well. Let's be honest. You know,

470
00:24:09,880 --> 00:24:11,680
Speaker 6: you had rates come down by one hundred and fifty

471
00:24:11,680 --> 00:24:14,680
Speaker 6: basis points, and these are all positives. The two percent

472
00:24:14,720 --> 00:24:18,320
Speaker 6: growth in revenues was more constrained, and I think that

473
00:24:18,520 --> 00:24:21,200
Speaker 6: was on the back of pretty good lending growth in

474
00:24:21,320 --> 00:24:24,960
Speaker 6: our consumer businesses, where we saw kind of halfh single

475
00:24:25,000 --> 00:24:28,400
Speaker 6: digit growth in our wholesale businesses, like yeah, we still

476
00:24:28,480 --> 00:24:31,280
Speaker 6: didn't see pipeline conversion comes through yet. I think that's

477
00:24:31,320 --> 00:24:34,320
Speaker 6: more for twenty twenty six. But also when rates come down,

478
00:24:35,119 --> 00:24:37,320
Speaker 6: you know, Stephen, we've got an endowment effect as a

479
00:24:37,359 --> 00:24:40,440
Speaker 6: bankers we're not fully edged yet and that that would

480
00:24:40,440 --> 00:24:43,200
Speaker 6: be a bit of a drag on that. The transmit

481
00:24:43,359 --> 00:24:46,120
Speaker 6: settlement was more reflected in our costline as a one off,

482
00:24:46,680 --> 00:24:48,320
Speaker 6: and I think we feel good about having put that

483
00:24:48,400 --> 00:24:48,879
Speaker 6: behind us.

484
00:24:49,440 --> 00:24:53,280
Speaker 2: Yeah, I'm sure your expenses so I realized running a

485
00:24:53,359 --> 00:24:56,320
Speaker 2: bank is expensive. Your salary costs were up I think

486
00:24:56,359 --> 00:24:59,119
Speaker 2: eight percent, and your computer cost is up by five percent.

487
00:24:59,440 --> 00:25:02,000
Speaker 2: Now there's petition for talent. You can't fall behind in it.

488
00:25:02,480 --> 00:25:04,960
Speaker 2: That would be death to the bank. Do you worry

489
00:25:05,000 --> 00:25:07,640
Speaker 2: that your expenses are running quite far ahead of inflation?

490
00:25:09,200 --> 00:25:11,040
Speaker 6: Well, you know, Stephen, if you if you take out

491
00:25:11,080 --> 00:25:14,040
Speaker 6: that trans net six hundred million, it gets it gets

492
00:25:14,359 --> 00:25:17,359
Speaker 6: a fair bit lower than that eight And then in

493
00:25:17,560 --> 00:25:21,959
Speaker 6: the staff number that you call out specifically, we did

494
00:25:22,000 --> 00:25:26,359
Speaker 6: acquire businesses in the period. So we acquired Equestra and

495
00:25:26,480 --> 00:25:28,320
Speaker 6: the Corcer towards the end of the year, which which

496
00:25:28,400 --> 00:25:31,120
Speaker 6: obviously come with revenues on the revenue line, but also

497
00:25:31,280 --> 00:25:34,200
Speaker 6: additional colleagues, and so those would be the drivers of that.

498
00:25:35,520 --> 00:25:38,119
Speaker 6: You know, if you look at you know, steady States

499
00:25:38,840 --> 00:25:41,160
Speaker 6: and where we expect to go into twenty twenty six,

500
00:25:41,400 --> 00:25:45,040
Speaker 6: you know, we're saying our costs move down to below

501
00:25:45,480 --> 00:25:47,440
Speaker 6: below mid single digits. You know, So that gives you

502
00:25:47,520 --> 00:25:50,959
Speaker 6: a sense of you know, increases in one period followed

503
00:25:51,000 --> 00:25:52,879
Speaker 6: by consolidation in another period.

504
00:25:53,160 --> 00:25:55,520
Speaker 2: No, that does make sense. And I mean talking about

505
00:25:55,640 --> 00:25:59,200
Speaker 2: I Coca, the fin tech company, your expectations from that

506
00:25:59,359 --> 00:26:02,520
Speaker 2: unit that sex is growing is growing very quickly. How

507
00:26:02,600 --> 00:26:04,159
Speaker 2: big do you think that market could be? I mean,

508
00:26:04,240 --> 00:26:07,800
Speaker 2: on some levels, I mean it seems almost infinite because

509
00:26:07,800 --> 00:26:09,920
Speaker 2: there's so many different things you can do with fintech

510
00:26:09,960 --> 00:26:10,400
Speaker 2: at the moment.

511
00:26:11,760 --> 00:26:14,240
Speaker 5: Yeah, definitely, Stephen, And there's definitely.

512
00:26:13,960 --> 00:26:18,159
Speaker 6: Also in that segment, let's call it. We've pulled that up.

513
00:26:18,320 --> 00:26:21,520
Speaker 6: We did organizational restructure to bring business and commercial banking

514
00:26:22,200 --> 00:26:24,920
Speaker 6: up to our group EXCOS as a cluster on its own.

515
00:26:25,800 --> 00:26:28,480
Speaker 6: We hired on Diswabata to lead that for us. So

516
00:26:28,600 --> 00:26:31,399
Speaker 6: that's all in place from first to July. You know,

517
00:26:31,440 --> 00:26:34,000
Speaker 6: if you look at South Africa, although corporate growth were

518
00:26:34,040 --> 00:26:37,040
Speaker 6: somewhat constrained, and i'd suggest similarly at the consumer level,

519
00:26:37,080 --> 00:26:39,639
Speaker 6: although that is starting to recover. As I suggested earlier,

520
00:26:40,400 --> 00:26:42,720
Speaker 6: the one part of economy that is showing underlying growth

521
00:26:43,520 --> 00:26:46,120
Speaker 6: is semes. You know, informal businesses. You know, so many

522
00:26:46,240 --> 00:26:48,840
Speaker 6: people have we always call fire hustles, and they've got

523
00:26:48,880 --> 00:26:51,000
Speaker 6: things on the side and businesses they're investing in, whether

524
00:26:51,040 --> 00:26:56,040
Speaker 6: it's a restaurant, a barber, or a beauty business. And

525
00:26:56,119 --> 00:27:00,719
Speaker 6: so we certainly see that economy growing. Bank has been

526
00:27:00,840 --> 00:27:04,320
Speaker 6: that economy for some time. But acquiring a corka brings

527
00:27:04,400 --> 00:27:06,760
Speaker 6: us access to a different part of the economy that

528
00:27:06,800 --> 00:27:09,919
Speaker 6: we weren't necessarily in. More, the sort of informal sector

529
00:27:10,040 --> 00:27:13,679
Speaker 6: traders that we define as SMEs not necessarily mid corporate

530
00:27:14,080 --> 00:27:17,520
Speaker 6: or commercial. So it's synergistic. We already have a good

531
00:27:17,560 --> 00:27:20,520
Speaker 6: payment or acquiring point to sell business in those other segments.

532
00:27:21,119 --> 00:27:23,960
Speaker 6: So I cook has got about fifty five thousand devices

533
00:27:24,040 --> 00:27:26,760
Speaker 6: point to sell devices. You'll see them wherever you go,

534
00:27:27,560 --> 00:27:28,920
Speaker 6: you know, whether you are a school event on a

535
00:27:28,920 --> 00:27:32,080
Speaker 6: Saturday morning or the luck But Stephen, the real I mean,

536
00:27:32,119 --> 00:27:34,639
Speaker 6: that's obviously a benefit to bring us into a segment

537
00:27:34,720 --> 00:27:37,200
Speaker 6: we haven't been in. But the other benefit is that

538
00:27:37,359 --> 00:27:40,480
Speaker 6: on the back of the technology that exists there, we

539
00:27:40,640 --> 00:27:43,200
Speaker 6: get great access to data. So we see raw cash

540
00:27:43,240 --> 00:27:46,400
Speaker 6: flow data at point of sale, which is the best

541
00:27:46,400 --> 00:27:49,240
Speaker 6: way to analyze a customer's potential. And so we'll be

542
00:27:49,359 --> 00:27:53,600
Speaker 6: offering lending products into that segment, investment products, because many

543
00:27:53,600 --> 00:27:55,639
Speaker 6: of these little businesses are cash rich and need some

544
00:27:55,760 --> 00:27:58,240
Speaker 6: advice in terms of how to manage that in the

545
00:27:58,280 --> 00:28:00,480
Speaker 6: full of sor time. We'd like to bring things like

546
00:28:00,520 --> 00:28:03,399
Speaker 6: commercial property finance, because some will be better off owning

547
00:28:03,440 --> 00:28:06,680
Speaker 6: the premises that are in commercial asset finance to requestra

548
00:28:06,680 --> 00:28:09,760
Speaker 6: if they've got logistics needs under like insurance needs and

549
00:28:09,840 --> 00:28:12,600
Speaker 6: the like. So we'll be building out a whole ecosystem

550
00:28:12,640 --> 00:28:15,320
Speaker 6: around that. It CORCA acquisition, you know, and we're very

551
00:28:15,320 --> 00:28:17,920
Speaker 6: excited about that in the segment that I think has potential.

552
00:28:19,400 --> 00:28:21,360
Speaker 2: I mean, it's very interesting to see how it develops.

553
00:28:21,880 --> 00:28:24,560
Speaker 2: You changed your structure a bit during the period, and

554
00:28:24,640 --> 00:28:27,600
Speaker 2: you have the personal and private banking units and its earnings.

555
00:28:27,600 --> 00:28:30,200
Speaker 2: We're up eight and a half percent, and there's so

556
00:28:30,359 --> 00:28:33,240
Speaker 2: much more competition in the personal banking space at the moment.

557
00:28:33,760 --> 00:28:35,840
Speaker 2: Do you worry the room to grow there might be

558
00:28:35,880 --> 00:28:36,679
Speaker 2: a little limited.

559
00:28:38,560 --> 00:28:40,400
Speaker 6: Well, I mean, Stephen, it's actually one of the business

560
00:28:40,440 --> 00:28:43,000
Speaker 6: I'm also excited about. You know, I agree with you

561
00:28:43,120 --> 00:28:45,120
Speaker 6: with respect to the pressure the consumer has been under

562
00:28:45,120 --> 00:28:48,000
Speaker 6: in South Africa, but we're certainly seeing de leverage.

563
00:28:48,080 --> 00:28:48,240
Speaker 12: You know.

564
00:28:48,320 --> 00:28:51,640
Speaker 6: These lower rates do help. Lower inflation helps as well.

565
00:28:52,520 --> 00:28:55,440
Speaker 6: And as mid bank, as you say, we've reorganized our company.

566
00:28:55,520 --> 00:28:57,600
Speaker 6: It pulled out bTB as I mentioned, but it also

567
00:28:57,720 --> 00:29:02,600
Speaker 6: puts personal and povment bank together with insurance and that

568
00:29:02,800 --> 00:29:06,040
Speaker 6: cross seal of insurance into our consumer customer base. I

569
00:29:06,080 --> 00:29:08,800
Speaker 6: think we saw quick ones in fact in the second

570
00:29:08,840 --> 00:29:12,200
Speaker 6: half of their having done the restructure, and so yeah,

571
00:29:12,560 --> 00:29:16,080
Speaker 6: I agree with you with respect to context. But you know,

572
00:29:16,200 --> 00:29:17,360
Speaker 6: growing earnings.

573
00:29:17,040 --> 00:29:19,480
Speaker 5: Nine percent there with the ROE that's nine the mid.

574
00:29:19,400 --> 00:29:23,440
Speaker 6: Fifteens, which is above our cost of equity, is good progress.

575
00:29:23,480 --> 00:29:27,040
Speaker 6: We see more productivity opportunities in that business as we

576
00:29:27,280 --> 00:29:30,080
Speaker 6: help our colleagues be more productive through AI tools and

577
00:29:30,160 --> 00:29:32,720
Speaker 6: the like. So for instance, if you're a loan officer,

578
00:29:33,240 --> 00:29:35,600
Speaker 6: you should be able to kind of process more loan

579
00:29:35,680 --> 00:29:37,640
Speaker 6: applications in a day with the help of AIRE, so

580
00:29:37,720 --> 00:29:39,040
Speaker 6: make them more productive, if you know what I mean,

581
00:29:39,120 --> 00:29:41,760
Speaker 6: help them be more productive. So all of those efforts

582
00:29:41,800 --> 00:29:45,080
Speaker 6: are there. I think our lending growth was good, you know,

583
00:29:45,160 --> 00:29:48,640
Speaker 6: that was in the seven or eight percent, particularly mortgages

584
00:29:48,640 --> 00:29:52,479
Speaker 6: where we're back with mortgages originators quite successfully. We've got

585
00:29:52,520 --> 00:29:54,960
Speaker 6: a leading auto finance business. We've got about a thirty

586
00:29:55,000 --> 00:29:56,960
Speaker 6: five percent share there and we actually took some share,

587
00:29:57,480 --> 00:29:59,080
Speaker 6: so you can see, Stephen, we're in the game for

588
00:29:59,320 --> 00:30:01,320
Speaker 6: personal and travel banking. We've had lots to do a

589
00:30:01,400 --> 00:30:01,800
Speaker 6: big kent.

590
00:30:02,520 --> 00:30:04,719
Speaker 2: Jason Quinn, the CEO at Netbank, thank you very much

591
00:30:04,760 --> 00:30:06,800
Speaker 2: indeed for your time on the Money Show. Well coming

592
00:30:06,880 --> 00:30:08,680
Speaker 2: up in a moment, of course. So we'll check in

593
00:30:08,760 --> 00:30:11,440
Speaker 2: with the aviation industry and the problems they're having because

594
00:30:11,440 --> 00:30:15,320
Speaker 2: of the conflict that we're seeing and the huge impact

595
00:30:15,400 --> 00:30:17,920
Speaker 2: I think it's having on that industry. Also, how to

596
00:30:18,000 --> 00:30:20,120
Speaker 2: make the most of the new tax changes in the

597
00:30:20,160 --> 00:30:21,880
Speaker 2: budget for your retirement. All of that to come you

598
00:30:21,920 --> 00:30:23,560
Speaker 2: with The Money Show at seven o'clock.

599
00:30:24,560 --> 00:30:28,800
Speaker 1: And now The Money Show with Stephen Credits on seven

600
00:30:28,880 --> 00:30:30,680
Speaker 1: oh two. Let's walk little.

601
00:30:31,000 --> 00:30:33,080
Speaker 2: The Money Show with Stephen Curtis has brought to you

602
00:30:33,200 --> 00:30:36,760
Speaker 2: by Absent Corporate's and Investment Banking. Refined performance is a

603
00:30:36,800 --> 00:30:39,960
Speaker 2: measure of discipline. That's how we're invested in. Your story

604
00:30:40,760 --> 00:30:44,320
Speaker 2: is a registered afspeed. I'm Stephen Curtis. Good evening. There's

605
00:30:44,320 --> 00:30:46,479
Speaker 2: so much still more to come. I mean, there's been

606
00:30:46,520 --> 00:30:48,480
Speaker 2: a lot said about the budget, but no one that

607
00:30:48,600 --> 00:30:51,120
Speaker 2: I know has actually gone all the way through what

608
00:30:51,240 --> 00:30:53,200
Speaker 2: it means for you in terms of your retirement, the

609
00:30:53,280 --> 00:30:55,800
Speaker 2: way that some of the tax treatments have changed, what

610
00:30:55,960 --> 00:30:58,280
Speaker 2: you can do that you couldn't do before. So I'm

611
00:30:58,320 --> 00:31:01,560
Speaker 2: really looking forward to personal or finance this evening. We'll

612
00:31:01,600 --> 00:31:05,000
Speaker 2: actually be speaking to Matsuan Tabo Hall or the program

613
00:31:05,120 --> 00:31:07,800
Speaker 2: manager for old mutual financial education. There's quite a lot

614
00:31:07,840 --> 00:31:09,320
Speaker 2: of to get through. You might want have a notebook

615
00:31:09,360 --> 00:31:12,000
Speaker 2: ready and have your questions ready too. On oh seven two,

616
00:31:12,080 --> 00:31:15,880
Speaker 2: seven oh two one seven oh two. We'll just check

617
00:31:15,920 --> 00:31:18,200
Speaker 2: in with the aviation industry in a moment. I mean,

618
00:31:18,360 --> 00:31:20,800
Speaker 2: there's some industries you really don't want to be involved

619
00:31:20,880 --> 00:31:23,320
Speaker 2: in when the missiles are sort of flying in certain

620
00:31:23,360 --> 00:31:25,480
Speaker 2: parts of the world. And I suppose when I put

621
00:31:25,560 --> 00:31:29,680
Speaker 2: say it like that, I'm almost being slightly disparaging. But

622
00:31:29,840 --> 00:31:32,640
Speaker 2: let me put it like this, when when you have

623
00:31:32,960 --> 00:31:36,320
Speaker 2: no idea when this conflict that started over the weekend

624
00:31:36,400 --> 00:31:38,920
Speaker 2: will end, you just have no idea. I can't tell you.

625
00:31:39,040 --> 00:31:39,160
Speaker 6: Now.

626
00:31:39,840 --> 00:31:41,800
Speaker 2: I also have to say, and this is sort of obvious,

627
00:31:42,120 --> 00:31:44,640
Speaker 2: I don't think any one person, or even any one

628
00:31:44,760 --> 00:31:46,840
Speaker 2: small group of people, or any of the even the

629
00:31:46,920 --> 00:31:49,440
Speaker 2: leaders of one country, are really in charge of what's

630
00:31:49,480 --> 00:31:52,240
Speaker 2: going to happen next. I mean, that's what scares me,

631
00:31:52,280 --> 00:31:54,640
Speaker 2: I think the most, and perhaps markets is I don't

632
00:31:54,640 --> 00:31:57,120
Speaker 2: think any one group could really say we know or

633
00:31:57,200 --> 00:31:59,880
Speaker 2: any one side, and I don't think anyone knows, frankly,

634
00:32:00,040 --> 00:32:02,400
Speaker 2: and that's really the big problem. What that means for

635
00:32:02,480 --> 00:32:06,200
Speaker 2: the aviation industry and the professor. I think I got

636
00:32:06,240 --> 00:32:09,080
Speaker 2: it right this time. Roturendo Dingrey. He'll be with you

637
00:32:09,120 --> 00:32:11,600
Speaker 2: in a few moments as well, just sort of catch

638
00:32:11,680 --> 00:32:14,040
Speaker 2: us up on where we are with our content. Good

639
00:32:14,080 --> 00:32:17,040
Speaker 2: to have you along ONEA three oh seven two two

640
00:32:17,120 --> 00:32:19,520
Speaker 2: one four four six O five six seven and voice

641
00:32:19,560 --> 00:32:21,719
Speaker 2: notes on seven two seven oh two one seven oh

642
00:32:21,800 --> 00:32:23,120
Speaker 2: two nine minutes after seven.

643
00:32:23,960 --> 00:32:27,880
Speaker 3: The Lonly Show with Stephen Krudis live on ninety two

644
00:32:27,920 --> 00:32:31,280
Speaker 3: point seven and one six FM, streaming on the Prime

645
00:32:31,360 --> 00:32:32,160
Speaker 3: Media Plus.

646
00:32:31,960 --> 00:32:35,320
Speaker 1: Now and DStv channel eight five six for so.

647
00:32:35,440 --> 00:32:39,360
Speaker 2: Many sectors, obviously feeding the fallout from the conflict that

648
00:32:39,680 --> 00:32:42,680
Speaker 2: I suppose was really started by US and Israel attacking Iran.

649
00:32:43,360 --> 00:32:47,160
Speaker 2: Iran's response hitting some of the US allies in that area,

650
00:32:47,320 --> 00:32:49,960
Speaker 2: including Israel. But I suppose the sector that probably felt

651
00:32:50,000 --> 00:32:53,920
Speaker 2: the impact most immediately is the aviation industry. Flights around

652
00:32:53,920 --> 00:32:57,000
Speaker 2: the Middle East are grounded, passengers are stuck. I have

653
00:32:57,120 --> 00:32:59,520
Speaker 2: no idea where cruise are. Imagine all over the place.

654
00:32:59,520 --> 00:33:02,400
Speaker 2: Skuy Lee, which is the aviation analyst and editor at

655
00:33:02,560 --> 00:33:06,040
Speaker 2: s Flying magazine, Guy, good evening. I mean, I suppose,

656
00:33:06,080 --> 00:33:08,320
Speaker 2: for all sorts of reasons, this is a nightmare for

657
00:33:08,440 --> 00:33:11,200
Speaker 2: this industry, and no one really knows when things might

658
00:33:11,360 --> 00:33:13,320
Speaker 2: ever return to some kind of normality.

659
00:33:14,080 --> 00:33:16,960
Speaker 13: Yeah, high Stephen, nice to be with you always. Well, yeah,

660
00:33:17,000 --> 00:33:20,040
Speaker 13: it's not being compared. It's now sort of second only

661
00:33:20,120 --> 00:33:25,760
Speaker 13: to the COVID nineteen massive grounding. So it's become huge.

662
00:33:25,840 --> 00:33:29,760
Speaker 13: And I'm afraid that my optimism that I particulated yesterday

663
00:33:30,200 --> 00:33:32,520
Speaker 13: is now all but shattered because I was looking at

664
00:33:32,840 --> 00:33:34,680
Speaker 13: that he had and then Emma, it's getting back in

665
00:33:34,760 --> 00:33:37,880
Speaker 13: the air, and they're just not so Donald Trump is

666
00:33:37,920 --> 00:33:40,120
Speaker 13: saying that they're going to us expected to carry on

667
00:33:40,200 --> 00:33:42,760
Speaker 13: for another few or four weeks. The signs aren't good

668
00:33:42,800 --> 00:33:43,080
Speaker 13: at all.

669
00:33:43,840 --> 00:33:48,160
Speaker 2: I mean, I presume that airlines would have some kind

670
00:33:48,200 --> 00:33:52,440
Speaker 2: of contingency plan for staff or passengers, but even a

671
00:33:52,560 --> 00:33:55,080
Speaker 2: contingency plan, you wouldn't expect to work for a whole month.

672
00:33:56,160 --> 00:34:01,440
Speaker 13: Absolutely no, there's not a significant contingency plan. Massive industry

673
00:34:01,520 --> 00:34:05,360
Speaker 13: wide shortage of new aircraft, mostly due to supply supply

674
00:34:05,520 --> 00:34:09,240
Speaker 13: chain constraints and so bowing an airbus are massively behind

675
00:34:09,320 --> 00:34:12,920
Speaker 13: on deliveries, so the airlines have been working their aircraft

676
00:34:13,080 --> 00:34:15,480
Speaker 13: flat out. And I think what's very interesting about the

677
00:34:15,560 --> 00:34:19,040
Speaker 13: current situation is that they've left their aircraft, their airliners

678
00:34:19,080 --> 00:34:21,120
Speaker 13: on the ground where they are. In other words, they

679
00:34:21,160 --> 00:34:24,440
Speaker 13: haven't attempted to reposition them. So I think they were

680
00:34:24,520 --> 00:34:26,960
Speaker 13: hoping that there would just be a sort of a

681
00:34:27,080 --> 00:34:30,520
Speaker 13: moment where they could press this start button and everything

682
00:34:30,640 --> 00:34:33,120
Speaker 13: like a monster train set would just start working again.

683
00:34:33,440 --> 00:34:35,880
Speaker 13: That no longer seems to be likely at this stage.

684
00:34:36,320 --> 00:34:39,160
Speaker 13: Aircraft and crews are scat still scattered all over the world.

685
00:34:39,880 --> 00:34:42,000
Speaker 2: I mean, you can't leave. I mean, I know you

686
00:34:42,120 --> 00:34:46,919
Speaker 2: can store planes and all of that, but it's actually there,

687
00:34:47,680 --> 00:34:50,200
Speaker 2: in some ways vulnerable where they're being stored. I presume

688
00:34:50,200 --> 00:34:52,840
Speaker 2: it's at an airport, and yes, some of the airports

689
00:34:52,840 --> 00:34:55,600
Speaker 2: in that region will have all sorts of air defenses.

690
00:34:55,800 --> 00:34:58,200
Speaker 2: But if you really wanted to sort of strike a

691
00:34:58,239 --> 00:35:00,319
Speaker 2: blow against the West, that would be one place used.

692
00:35:00,200 --> 00:35:00,440
Speaker 6: To do it.

693
00:35:01,200 --> 00:35:04,279
Speaker 13: Well, that's what RAND seems to have done. Far from

694
00:35:04,680 --> 00:35:07,520
Speaker 13: vertically qualifying to the judge, but it seems to me

695
00:35:07,640 --> 00:35:12,400
Speaker 13: that they have specifically targeted Dohai Airport. But fortunately the

696
00:35:12,520 --> 00:35:15,600
Speaker 13: anti missile missiles seemed to have done their job and

697
00:35:15,840 --> 00:35:19,040
Speaker 13: there hasn't been any significant damage to any of the airports,

698
00:35:19,080 --> 00:35:22,760
Speaker 13: other than I think some bits of missiles falling through

699
00:35:22,800 --> 00:35:25,600
Speaker 13: the roof at Dubai. But I think that what we

700
00:35:25,719 --> 00:35:28,640
Speaker 13: need to look at as the broader implications of what's

701
00:35:28,719 --> 00:35:32,279
Speaker 13: happening here. You know, already the Ukraine War had really

702
00:35:32,400 --> 00:35:36,480
Speaker 13: constrained the flow of traffic, and then the further hostilities

703
00:35:36,560 --> 00:35:41,239
Speaker 13: between Pakistan and Afghanistan further narrowed the corridor. And now

704
00:35:41,840 --> 00:35:45,400
Speaker 13: this Iran war, if I can call it, that has

705
00:35:45,680 --> 00:35:48,360
Speaker 13: really just plumped it down. Thirty to forty percent of

706
00:35:48,440 --> 00:35:51,360
Speaker 13: the world's airline traffic flows through that area of the

707
00:35:51,440 --> 00:35:54,839
Speaker 13: Middle East, and with all that airspace being closed down,

708
00:35:55,239 --> 00:35:58,319
Speaker 13: it has called untold problems. I mean right around the world,

709
00:35:58,960 --> 00:36:01,240
Speaker 13: people sitting on the ground and sleeping on the floors

710
00:36:01,280 --> 00:36:04,600
Speaker 13: of airports literally from from east to west everywhere.

711
00:36:05,000 --> 00:36:10,480
Speaker 2: Sure if flights resumed, So if somehow, just as a

712
00:36:10,560 --> 00:36:14,560
Speaker 2: hypothetical pieces declared, and say Friday lunchtime, the airspace is opened,

713
00:36:14,960 --> 00:36:16,759
Speaker 2: would we still be looking at a week or two

714
00:36:16,960 --> 00:36:18,920
Speaker 2: for things to sort themselves out after that.

715
00:36:19,920 --> 00:36:23,680
Speaker 13: Yes, the longer it goes on, for the greater the

716
00:36:23,760 --> 00:36:28,319
Speaker 13: so called rippled effect and the problems of just accommodating

717
00:36:28,400 --> 00:36:31,800
Speaker 13: people whose flights have been booked and and rebooked and

718
00:36:32,200 --> 00:36:36,400
Speaker 13: and rebooked, So it's it's not gonna ease any at

719
00:36:36,440 --> 00:36:39,120
Speaker 13: any time soon. And I think it's you know, since

720
00:36:39,440 --> 00:36:42,000
Speaker 13: this is the in a sense of financial program, it

721
00:36:42,080 --> 00:36:44,680
Speaker 13: might be worth pointing out that almost none of these

722
00:36:44,760 --> 00:36:47,719
Speaker 13: travelers have traveled insurance that will cover them for these

723
00:36:47,760 --> 00:36:49,160
Speaker 13: sort of eventualities either.

724
00:36:49,640 --> 00:36:49,839
Speaker 14: Yeah.

725
00:36:49,960 --> 00:36:52,520
Speaker 2: No, I mean, it's a difficult thing to get insurance for,

726
00:36:52,640 --> 00:36:55,120
Speaker 2: and you kind of decide not to do it. Some

727
00:36:55,280 --> 00:36:58,400
Speaker 2: airlines more exposed than others. I mean, Qatar Air owned

728
00:36:58,440 --> 00:37:02,680
Speaker 2: by the government of Qatar. Okay, they will lose money,

729
00:37:02,760 --> 00:37:06,440
Speaker 2: but I'm sure they'll be fine. Other airlines are publicly owned.

730
00:37:06,600 --> 00:37:09,120
Speaker 2: In other words, they're there, their owned by a listed company.

731
00:37:09,200 --> 00:37:10,360
Speaker 2: They're in a very different space.

732
00:37:11,560 --> 00:37:14,120
Speaker 13: Whoa, I've never thought of that. But I'm not sure

733
00:37:14,200 --> 00:37:18,160
Speaker 13: that the that the Iranian defense authorities or the tackle

734
00:37:18,239 --> 00:37:22,760
Speaker 13: poeties if you like, are going to necessarily differentiate between

735
00:37:22,960 --> 00:37:26,160
Speaker 13: you know, Guitar and and and Emirates arguments I called

736
00:37:26,200 --> 00:37:29,800
Speaker 13: even the Western airlines, which are properly privately owned. I

737
00:37:30,040 --> 00:37:34,960
Speaker 13: suspect the whole pattern has been an indiscriminate spread of tarots,

738
00:37:35,400 --> 00:37:39,200
Speaker 13: you know, from crete to to right across the Middle East.

739
00:37:39,719 --> 00:37:42,320
Speaker 2: Where I'm trying to go with that guy is some

740
00:37:42,520 --> 00:37:45,839
Speaker 2: airlines could have huge losses, and I wasn't hearing my question.

741
00:37:45,960 --> 00:37:49,080
Speaker 2: So Guitar Qatar can probably, so Katai air can probably

742
00:37:49,120 --> 00:37:51,520
Speaker 2: survive huge losses that some of the private the owned

743
00:37:51,560 --> 00:37:52,800
Speaker 2: airlines are very different story.

744
00:37:54,080 --> 00:37:56,440
Speaker 13: And no, I'm not too worried about that at the stage.

745
00:37:56,480 --> 00:37:59,239
Speaker 13: The airlines have been making hey for the last five

746
00:37:59,360 --> 00:38:04,200
Speaker 13: years since there's been a huge profits, and indeed they're

747
00:38:04,200 --> 00:38:07,040
Speaker 13: beginning to finally distribute some of those profits. So I

748
00:38:07,160 --> 00:38:11,800
Speaker 13: think that the airlines have gotten those significant reserves. I

749
00:38:11,840 --> 00:38:14,520
Speaker 13: think it's also worth pointing out that the biggest fear

750
00:38:14,760 --> 00:38:18,160
Speaker 13: was a massive spike in fuel prices. But I'll be

751
00:38:18,239 --> 00:38:21,759
Speaker 13: looking at the numbers, and every airline have surveyed has

752
00:38:21,800 --> 00:38:25,839
Speaker 13: more than eighty percent of its next twenty six months

753
00:38:25,880 --> 00:38:29,880
Speaker 13: to twelve months fuel supplies hedged, So I think that

754
00:38:30,000 --> 00:38:33,960
Speaker 13: that will provide a massive so smoothing factor to fuel prices.

755
00:38:34,000 --> 00:38:36,680
Speaker 13: But nonetheless, if you're thinking of booking an airline flight,

756
00:38:37,160 --> 00:38:38,960
Speaker 13: you know, I think make sure you book it with

757
00:38:39,000 --> 00:38:40,920
Speaker 13: a pedot card so you extend a chance of getting

758
00:38:40,920 --> 00:38:43,640
Speaker 13: your money backed. And I think book it sooner rather

759
00:38:43,719 --> 00:38:46,839
Speaker 13: than later, because prices will probably continue to go up

760
00:38:47,200 --> 00:38:51,320
Speaker 13: as the effective increased fuel prices comes through the industry.

761
00:38:53,760 --> 00:38:55,960
Speaker 2: One of the things that we've seen develop over the

762
00:38:56,040 --> 00:38:58,880
Speaker 2: last twenty thirty years is the idea of sort of superhub,

763
00:38:59,040 --> 00:39:02,319
Speaker 2: so the least as you say, you know, that's really

764
00:39:02,360 --> 00:39:04,960
Speaker 2: the sort of founding basis of some of the airlines

765
00:39:05,000 --> 00:39:08,399
Speaker 2: to buy in particular because it's so big, so much

766
00:39:08,520 --> 00:39:11,600
Speaker 2: traffic moves just through that one airport. Do you see

767
00:39:12,040 --> 00:39:14,279
Speaker 2: any of the airlines trying to move away from that

768
00:39:14,360 --> 00:39:17,240
Speaker 2: because this vulnerability is now being exposed so blatantly.

769
00:39:18,200 --> 00:39:20,440
Speaker 13: Yeah, absolutely, I think this is what the other key

770
00:39:20,800 --> 00:39:25,160
Speaker 13: consequence of this current conflict and then is that is

771
00:39:25,200 --> 00:39:27,960
Speaker 13: going to be a shift away from the what's called

772
00:39:27,960 --> 00:39:30,200
Speaker 13: the having spoke model, as you said, the develop into

773
00:39:30,600 --> 00:39:33,600
Speaker 13: super hubs two point to point fly and that was

774
00:39:33,680 --> 00:39:37,600
Speaker 13: the big bet that Bowing took versus Airbus bet on

775
00:39:37,680 --> 00:39:40,000
Speaker 13: the ab and spoke model, and they were correct. Bowing

776
00:39:40,080 --> 00:39:43,320
Speaker 13: bet on point to point in which requires smaller aircraft.

777
00:39:43,680 --> 00:39:45,920
Speaker 13: Point to point didn't work out so well. But increasingly

778
00:39:45,960 --> 00:39:47,960
Speaker 13: if I just speak to people around me in a

779
00:39:48,080 --> 00:39:50,440
Speaker 13: year in South Africa wanting to fly to Europe, they

780
00:39:50,520 --> 00:39:53,040
Speaker 13: might have been flown by the Middle East by by Dubai,

781
00:39:53,440 --> 00:39:56,239
Speaker 13: but now they're prepared to pay an extra premium and

782
00:39:56,360 --> 00:39:59,239
Speaker 13: fly direct the same with obviously going to even Australia.

783
00:40:00,080 --> 00:40:03,400
Speaker 13: It used to be virtually impossible for for instance, SAA

784
00:40:03,600 --> 00:40:06,560
Speaker 13: to make money east of Dubai. I think increcently we're

785
00:40:06,560 --> 00:40:09,480
Speaker 13: going to see the bypassing of the hubs, especially in

786
00:40:09,520 --> 00:40:14,360
Speaker 13: Middle Eastern because of the vulnerability and obviously the two connections.

787
00:40:14,920 --> 00:40:17,040
Speaker 2: Doctor Guy Leitch, thank you so much. Really appreciate the

788
00:40:17,120 --> 00:40:20,160
Speaker 2: time the Aviation Analyst editor also their say Fly Magazine,

789
00:40:20,160 --> 00:40:22,719
Speaker 2: as I say, some industries you really kind of don't

790
00:40:22,760 --> 00:40:24,640
Speaker 2: want to be in when this happens. And then the

791
00:40:24,719 --> 00:40:26,560
Speaker 2: other thing you just have to remember is there sort

792
00:40:26,560 --> 00:40:30,120
Speaker 2: of short term consequences, medium term consequences, and as Guy says,

793
00:40:30,640 --> 00:40:33,800
Speaker 2: longer term consequences which could easily see some of the

794
00:40:33,840 --> 00:40:37,800
Speaker 2: airlines deciding to change their longer term strategy. Very difficult

795
00:40:37,840 --> 00:40:40,799
Speaker 2: also to know what to do. Can't remove risks from

796
00:40:40,800 --> 00:40:46,960
Speaker 2: the equation completely. Eighteen minutes after seven show Business Focus

797
00:40:47,239 --> 00:40:49,719
Speaker 2: professor Rottendo and Dingree, the founding director at trib of

798
00:40:49,760 --> 00:40:52,120
Speaker 2: Africa Advisory, author of Rumble in the Junger. There have

799
00:40:52,160 --> 00:40:54,440
Speaker 2: been a while since you've been and sitting across from

800
00:40:54,480 --> 00:40:56,040
Speaker 2: your agenda, how's it going very well?

801
00:40:56,080 --> 00:40:57,840
Speaker 12: Stephen? All the bitter se and how are you in

802
00:40:57,880 --> 00:40:59,400
Speaker 12: the listeners?

803
00:40:59,440 --> 00:41:01,520
Speaker 2: And seven or two, I mean September is going well?

804
00:41:02,440 --> 00:41:07,120
Speaker 2: Such a busy year. The e commerce sort of business

805
00:41:07,200 --> 00:41:09,120
Speaker 2: in Africa. We know it's growing. We know that this

806
00:41:09,280 --> 00:41:11,719
Speaker 2: is really the space we see the growth in, you know,

807
00:41:11,920 --> 00:41:15,440
Speaker 2: sorts of things around it, and particularly in one of

808
00:41:15,440 --> 00:41:19,240
Speaker 2: the people who deliver things called Koreas couriers and obviously

809
00:41:19,360 --> 00:41:23,319
Speaker 2: the Chinese companies here, there's Amazon here. What's Africa doing?

810
00:41:23,400 --> 00:41:23,960
Speaker 2: In response?

811
00:41:24,320 --> 00:41:27,440
Speaker 9: So Junia's Stephen is a big player on the especially

812
00:41:27,440 --> 00:41:29,160
Speaker 9: of the Nigerian market. But just to give you the

813
00:41:29,280 --> 00:41:31,960
Speaker 9: size of the quantum or the quantum of the of

814
00:41:32,040 --> 00:41:34,480
Speaker 9: the e commerce market in Africans about forty three billion

815
00:41:34,600 --> 00:41:39,040
Speaker 9: US dollars. Nigeria, in which Junior obviously plays a key role,

816
00:41:40,000 --> 00:41:42,840
Speaker 9: is probably about ten billion US dollars in terms of size,

817
00:41:43,120 --> 00:41:45,600
Speaker 9: and they're expected to see significant growth. I mean in

818
00:41:45,800 --> 00:41:48,360
Speaker 9: twenty twenty twenty six from twenty twenty five, they've probably

819
00:41:48,360 --> 00:41:51,279
Speaker 9: seen a ten percent growth. But what they've highlightd is

820
00:41:51,560 --> 00:41:53,840
Speaker 9: in order to compete with Tim win Shame, which is

821
00:41:53,880 --> 00:41:56,919
Speaker 9: still quite a key playing the Nigerian market. Stephen, there's

822
00:41:56,920 --> 00:42:00,160
Speaker 9: a campaign they're calling just Juni eight, which at the

823
00:42:00,239 --> 00:42:01,960
Speaker 9: end of the day is just a focus in terms

824
00:42:02,000 --> 00:42:06,160
Speaker 9: of driving a massive campaign with regards for attracting the

825
00:42:06,280 --> 00:42:08,520
Speaker 9: volumes that say, in Nigeria, we know that it's a

826
00:42:08,640 --> 00:42:12,680
Speaker 9: huge population. They've invested in logistics and community sales network

827
00:42:13,040 --> 00:42:16,719
Speaker 9: and the main objective is really to compete with your

828
00:42:16,760 --> 00:42:19,440
Speaker 9: Temu in Shane, which is obviously driven by the Chinese market.

829
00:42:19,840 --> 00:42:23,160
Speaker 9: So a great opportunity, a great market Nigeria. Obviously for

830
00:42:23,239 --> 00:42:26,360
Speaker 9: the African market there is probably a twenty five percent

831
00:42:26,520 --> 00:42:29,560
Speaker 9: market share, so if that does work out. Junior has

832
00:42:29,600 --> 00:42:31,359
Speaker 9: gone through a lot of ups and down, but there

833
00:42:31,360 --> 00:42:33,120
Speaker 9: seem to be in the right direction with regards to

834
00:42:33,200 --> 00:42:34,000
Speaker 9: grain in that space.

835
00:42:34,520 --> 00:42:37,440
Speaker 2: I mean, it's interesting because obviously local knowledge, surely this

836
00:42:37,640 --> 00:42:41,040
Speaker 2: is the one industry that it should just trumpet. You know,

837
00:42:41,160 --> 00:42:43,080
Speaker 2: you should really be able to do this better than

838
00:42:43,320 --> 00:42:44,320
Speaker 2: better than people coming in.

839
00:42:44,640 --> 00:42:47,160
Speaker 9: Yeah, they should be able to do it. But in

840
00:42:47,239 --> 00:42:50,800
Speaker 9: the Nigerian market is always complicated. It's not as easy

841
00:42:50,840 --> 00:42:54,680
Speaker 9: as it seems. And remember Junior itself is a German company.

842
00:42:54,719 --> 00:42:58,719
Speaker 9: Headquartered in Germany. But still I think they've they've learned

843
00:42:58,719 --> 00:43:02,440
Speaker 9: from experience and actually pays off. Think if you look

844
00:43:02,440 --> 00:43:04,080
Speaker 9: at Junior, it also used to play in the South

845
00:43:04,080 --> 00:43:07,560
Speaker 9: African market, but then they left wanted to focus more

846
00:43:07,600 --> 00:43:09,640
Speaker 9: on the in terms of Nigerian are the key market.

847
00:43:10,280 --> 00:43:12,800
Speaker 9: Tim Way and Shane also wanted to come into South Africa.

848
00:43:12,840 --> 00:43:15,239
Speaker 9: But you remember because of the restrictions and the law

849
00:43:15,239 --> 00:43:17,960
Speaker 9: and the framework and the reason I'm highlighting all of

850
00:43:18,000 --> 00:43:21,040
Speaker 9: the Stephen, is that and for Junior to survive in

851
00:43:21,080 --> 00:43:23,480
Speaker 9: the Nigerian market, they obviously have to have the support

852
00:43:23,560 --> 00:43:26,359
Speaker 9: of the local government in terms of putting the right

853
00:43:27,400 --> 00:43:30,840
Speaker 9: trade barriers across. So let's see how it goes. But again,

854
00:43:31,000 --> 00:43:33,480
Speaker 9: a great market, great opportunity to grow and flourish.

855
00:43:34,560 --> 00:43:37,000
Speaker 2: We talk about South Africa's sort of food future all

856
00:43:37,040 --> 00:43:39,920
Speaker 2: the time. Our population is growing very strongly. There's a

857
00:43:40,000 --> 00:43:42,080
Speaker 2: kind of first mile revolution.

858
00:43:42,360 --> 00:43:45,400
Speaker 9: First male revolution, and it's been initiated by the International

859
00:43:45,520 --> 00:43:49,640
Speaker 9: Fund for Agricultural Development. And why this is key, Stephen,

860
00:43:49,800 --> 00:43:52,719
Speaker 9: is that the first mile talks about the transition from

861
00:43:52,800 --> 00:43:56,680
Speaker 9: the small, medium scale farmer right up to the food

862
00:43:57,239 --> 00:43:59,840
Speaker 9: I'm talking from an agricultural perspective right up to the

863
00:44:00,000 --> 00:44:03,000
Speaker 9: food on the shelf. But just to give you some numbers, Steven,

864
00:44:03,200 --> 00:44:06,160
Speaker 9: thirty seven percent of food that is coming from the

865
00:44:06,200 --> 00:44:10,480
Speaker 9: agricultural sector doesn't make it because of either rots or decays.

866
00:44:10,840 --> 00:44:12,959
Speaker 9: And when you translate that to money, Steven, it's about

867
00:44:13,000 --> 00:44:15,279
Speaker 9: ninety two billion US dollars, So.

868
00:44:16,840 --> 00:44:18,080
Speaker 12: It's a ten literally.

869
00:44:18,960 --> 00:44:22,680
Speaker 9: And remember Africa is got sixty percent of arable land,

870
00:44:22,920 --> 00:44:26,239
Speaker 9: but we only produce ten percent of agricultural produce worldwide.

871
00:44:26,560 --> 00:44:29,760
Speaker 9: So this initiated by IPHED is really just to focus

872
00:44:29,840 --> 00:44:32,480
Speaker 9: in terms of how do we that whole court chain supply,

873
00:44:32,880 --> 00:44:35,839
Speaker 9: in terms of investing in infrastructure, in terms of employing youth,

874
00:44:36,120 --> 00:44:38,960
Speaker 9: in terms of supporting the semes, in terms of probably

875
00:44:39,040 --> 00:44:41,640
Speaker 9: also looking at the financing models, how do we reduce

876
00:44:41,719 --> 00:44:44,879
Speaker 9: that ninety two billion US dollars that's going out every

877
00:44:44,960 --> 00:44:48,960
Speaker 9: year because of that weak supply chain model between the

878
00:44:49,160 --> 00:44:53,480
Speaker 9: small scale producer and obviously what's getting to the refrigerated

879
00:44:53,560 --> 00:44:57,200
Speaker 9: store or getting into the retail market from an agricultural perspective.

880
00:44:57,600 --> 00:45:00,880
Speaker 9: So that's the initiative that is there's quite key if

881
00:45:00,920 --> 00:45:03,120
Speaker 9: that does happen, because not only will to help Africa,

882
00:45:03,200 --> 00:45:05,960
Speaker 9: but I think in the global ecosystem of agricultural produce

883
00:45:06,120 --> 00:45:07,600
Speaker 9: its level positive end as well.

884
00:45:08,440 --> 00:45:11,760
Speaker 2: In the COMMOS there's a fully digital lender that's finally

885
00:45:11,800 --> 00:45:14,280
Speaker 2: got some approval that's got a Madagascan heritage.

886
00:45:15,280 --> 00:45:18,920
Speaker 12: Yes, his name is I was trying to project a billionaire,

887
00:45:19,040 --> 00:45:20,120
Speaker 12: so that's the easy part.

888
00:45:20,800 --> 00:45:21,799
Speaker 2: Say it has a name.

889
00:45:22,000 --> 00:45:26,160
Speaker 12: Herogen so beautifully and the Commos steven.

890
00:45:26,200 --> 00:45:28,800
Speaker 9: It's a small country, less than a million people in population,

891
00:45:29,280 --> 00:45:32,239
Speaker 9: but if you look at their GDP growth it's quite

892
00:45:32,280 --> 00:45:34,800
Speaker 9: high three point four percent, and their GDP per capital

893
00:45:34,880 --> 00:45:37,600
Speaker 9: is about one thousand, five hundred US dollars, which is

894
00:45:37,640 --> 00:45:40,600
Speaker 9: the equivalent model less of Ethiopia. But the key thing

895
00:45:40,680 --> 00:45:43,480
Speaker 9: about this initiative Stephen and commos is between us A

896
00:45:43,520 --> 00:45:46,920
Speaker 9: Miki and Madagascar is that it includes inclusivity, so it

897
00:45:47,280 --> 00:45:50,919
Speaker 9: allows for financial lending and access to finance to people

898
00:45:50,960 --> 00:45:53,320
Speaker 9: in the raw areas. And obviously when people in the

899
00:45:53,440 --> 00:45:56,480
Speaker 9: raw areas, young people, older people are able to have

900
00:45:56,560 --> 00:46:00,719
Speaker 9: access to finance, they're able to help the economy grow.

901
00:46:01,520 --> 00:46:04,080
Speaker 9: The company that they are doing this under scored VOLA

902
00:46:04,440 --> 00:46:07,440
Speaker 9: and the Reserve Bank of the COMMOS. The reason why

903
00:46:07,520 --> 00:46:10,320
Speaker 9: they've allowed for this transaction to go through release this

904
00:46:10,520 --> 00:46:13,160
Speaker 9: license is that they believe by twenty thirty the or

905
00:46:13,239 --> 00:46:16,680
Speaker 9: left seventy five percent of the population included in terms

906
00:46:16,719 --> 00:46:19,640
Speaker 9: of access to finance. So it's a small population, but again,

907
00:46:19,920 --> 00:46:22,040
Speaker 9: these small things make a big impact in terms of

908
00:46:22,120 --> 00:46:24,359
Speaker 9: the live loads of people who benefit from them.

909
00:46:24,640 --> 00:46:26,440
Speaker 2: I saw a headline the other day but I couldn't

910
00:46:26,480 --> 00:46:30,040
Speaker 2: understand it about the Zambian government saying no to US

911
00:46:30,120 --> 00:46:32,480
Speaker 2: health funding and you think, well, hold on, why.

912
00:46:32,719 --> 00:46:36,759
Speaker 9: Yeah, so the Zambia is just it's America, but it's

913
00:46:36,760 --> 00:46:38,800
Speaker 9: not just Zambia, and Zimbabwe also had a similar incident,

914
00:46:39,080 --> 00:46:42,520
Speaker 9: but just focusing on Zambia, they got they needed about

915
00:46:42,520 --> 00:46:44,759
Speaker 9: a billion US dollars. As we know, the USA has

916
00:46:44,840 --> 00:46:48,680
Speaker 9: pulled out of Africa and America has come back and

917
00:46:48,760 --> 00:46:51,080
Speaker 9: said they've packaged deals with by They say, look, I

918
00:46:51,160 --> 00:46:53,280
Speaker 9: we'll give you something, give you something in return. Obviously

919
00:46:53,680 --> 00:46:57,920
Speaker 9: it's a win win scenario. This deal is one billion

920
00:46:58,000 --> 00:47:01,719
Speaker 9: US dollars, but the the co financing from Zambia is

921
00:47:01,719 --> 00:47:05,000
Speaker 9: about three hundred and forty million US dollars and the

922
00:47:05,080 --> 00:47:08,000
Speaker 9: funding from the US who Health alleviate HIV malaria.

923
00:47:08,280 --> 00:47:09,239
Speaker 12: We know in Africa we.

924
00:47:09,320 --> 00:47:11,960
Speaker 9: Lose about six hundred thousand kids per year between the

925
00:47:12,000 --> 00:47:14,600
Speaker 9: ages of one to five because of malaria. So it's

926
00:47:14,600 --> 00:47:18,200
Speaker 9: obviously is quite significant. The downside of it is Zambia saying,

927
00:47:18,200 --> 00:47:20,880
Speaker 9: but hang one, guys, you're wanting too much with regards

928
00:47:20,920 --> 00:47:23,719
Speaker 9: to data and to our minerals. So it becomes a

929
00:47:23,800 --> 00:47:28,120
Speaker 9: negotiating point. And on one side, from my perspective, Steve,

930
00:47:28,440 --> 00:47:31,440
Speaker 9: Zambia definitely needs the aid, but the question is how

931
00:47:31,520 --> 00:47:34,000
Speaker 9: much do you give to get a little, So it's

932
00:47:34,040 --> 00:47:37,360
Speaker 9: going to go down to the negotiating table. Nigerian Uganda

933
00:47:37,440 --> 00:47:39,600
Speaker 9: had a similar deal on the cards they and they

934
00:47:39,800 --> 00:47:43,319
Speaker 9: and they signed it off. Kenya and Zimbabwe are two

935
00:47:43,400 --> 00:47:45,959
Speaker 9: other players who also pulled back, So it all bos

936
00:47:46,000 --> 00:47:47,640
Speaker 9: down to the negotiation. And I just hope at the

937
00:47:47,719 --> 00:47:49,520
Speaker 9: end of the day's solution is fun because the need

938
00:47:49,680 --> 00:47:51,080
Speaker 9: Israel from a health perspective.

939
00:47:51,480 --> 00:47:54,920
Speaker 2: And then the tour do Rwanda twenty twenty six. It's

940
00:47:54,960 --> 00:47:56,600
Speaker 2: a ciightling it.

941
00:47:56,680 --> 00:48:00,560
Speaker 9: Citling, didn't wonder Stephen, and it's become I think it's

942
00:48:00,600 --> 00:48:05,000
Speaker 9: on its eighteenth anniversary. It's eight stages. They're probably about

943
00:48:05,000 --> 00:48:06,160
Speaker 9: one thousand kilometers.

944
00:48:06,280 --> 00:48:07,160
Speaker 2: It's a hilly place.

945
00:48:07,280 --> 00:48:09,719
Speaker 9: It's it's a hilly place where you do right, you

946
00:48:09,800 --> 00:48:12,719
Speaker 9: actually pass and you get a great view of Lake

947
00:48:12,840 --> 00:48:16,880
Speaker 9: Kivu and also the land of a thousand hills, so

948
00:48:17,040 --> 00:48:20,440
Speaker 9: for a cyclist obviously that's a great view. The winner

949
00:48:20,440 --> 00:48:23,080
Speaker 9: of this year was a German, but the person who

950
00:48:23,120 --> 00:48:26,040
Speaker 9: won the last stage was actually from Eritrea, so that's

951
00:48:26,080 --> 00:48:31,120
Speaker 9: a positive thing. It's got sixteen thousand kilometers of elevation,

952
00:48:31,280 --> 00:48:35,239
Speaker 9: so it's quite high, it's quite intense, it's getting quite popular. Unfortunately,

953
00:48:35,360 --> 00:48:38,600
Speaker 9: two spectators died in an accident and that's never great.

954
00:48:38,880 --> 00:48:41,919
Speaker 9: But ultimately it's a grain race and making a great

955
00:48:42,000 --> 00:48:45,160
Speaker 9: impact just from a tourism perspective, and another tick for

956
00:48:45,280 --> 00:48:47,800
Speaker 9: one day in terms of that area from a tourist perspective.

957
00:48:48,120 --> 00:48:50,799
Speaker 2: Professor Rottendo and thanks so much, founding director of trib

958
00:48:50,840 --> 00:48:53,400
Speaker 2: Africa Advisory and author of the book Rumble in the Jungle.

959
00:48:53,440 --> 00:48:57,759
Speaker 2: Reloaded the Money Show Personal Finance. So we heard the

960
00:48:57,840 --> 00:49:00,000
Speaker 2: budget last week and there was a lot of discussion

961
00:49:00,160 --> 00:49:02,000
Speaker 2: about what was in it and why it matters, and

962
00:49:02,080 --> 00:49:05,280
Speaker 2: how it affects you, why it is that a bottle

963
00:49:05,320 --> 00:49:07,480
Speaker 2: of spirit suddenly is about to become more expensive. In

964
00:49:07,520 --> 00:49:10,560
Speaker 2: all of those things. I've also heard and we did

965
00:49:10,640 --> 00:49:12,880
Speaker 2: some of the highlights of why it matters to you

966
00:49:13,000 --> 00:49:17,080
Speaker 2: in terms of your longer term planning. But as far

967
00:49:17,200 --> 00:49:19,640
Speaker 2: as I know, we have not heard anyone do what

968
00:49:19,760 --> 00:49:22,200
Speaker 2: I think is needed, which is a proper in depth

969
00:49:22,400 --> 00:49:24,719
Speaker 2: kind of deep dive into how this really is going

970
00:49:24,760 --> 00:49:28,400
Speaker 2: to affect your retirement over the years. And please to

971
00:49:28,520 --> 00:49:30,920
Speaker 2: tell you that Tabor Hall or the program manager all

972
00:49:31,040 --> 00:49:34,279
Speaker 2: Mutual Financial Educations, agreed to take us through it all.

973
00:49:34,360 --> 00:49:36,719
Speaker 2: And of course if you've got questions for Tabor, would

974
00:49:36,760 --> 00:49:38,359
Speaker 2: be great to hear from you on O seven two

975
00:49:38,440 --> 00:49:40,600
Speaker 2: seven oh two one seven oh two as well you

976
00:49:40,680 --> 00:49:43,279
Speaker 2: can call two A O double ONEAA three oh seven

977
00:49:43,360 --> 00:49:46,120
Speaker 2: oh two and two one four four six five six

978
00:49:46,239 --> 00:49:48,640
Speaker 2: seven Tabor Hollo, good evening, and thanks so much for

979
00:49:49,120 --> 00:49:50,960
Speaker 2: agreeing to speak to us about all of us tonight.

980
00:49:52,280 --> 00:49:54,680
Speaker 14: Privilu Devin. Then thanks for the opportunity and good evening

981
00:49:54,719 --> 00:49:55,320
Speaker 14: to your listeners.

982
00:49:55,640 --> 00:49:57,800
Speaker 2: So a lot of this is to do basically with

983
00:49:57,920 --> 00:50:00,920
Speaker 2: avoiding tax right for evading I always get those two

984
00:50:01,000 --> 00:50:03,279
Speaker 2: meddled up and one day, one day, I'm going to

985
00:50:03,400 --> 00:50:06,200
Speaker 2: end up in quart as a result. So let's just

986
00:50:06,239 --> 00:50:09,200
Speaker 2: start with a retirement fund. Something we probably all kind

987
00:50:09,280 --> 00:50:14,640
Speaker 2: of understand retirement contribution limits. How does that work? What

988
00:50:15,000 --> 00:50:15,600
Speaker 2: does that mean?

989
00:50:17,000 --> 00:50:19,920
Speaker 14: Let's start with this. We hope people don't avoid text

990
00:50:20,000 --> 00:50:22,800
Speaker 14: even yes, we hope we can find a way to

991
00:50:22,960 --> 00:50:26,759
Speaker 14: optimize the way we pay our text. But in terms

992
00:50:26,840 --> 00:50:32,479
Speaker 14: of the retirement, the bands have been shifted a little

993
00:50:32,520 --> 00:50:34,400
Speaker 14: bit stiving in terms of the cutoffs.

994
00:50:34,520 --> 00:50:34,640
Speaker 8: Right.

995
00:50:35,120 --> 00:50:38,280
Speaker 14: The previous limit, for instance, in terms of retirement deductions

996
00:50:38,400 --> 00:50:41,000
Speaker 14: was around three hundred and fifty thousand, and that is

997
00:50:41,080 --> 00:50:46,680
Speaker 14: we moved to four hundred and thirty thousand defectives, right,

998
00:50:47,120 --> 00:50:49,759
Speaker 14: And that kind of helps us because it impacts in

999
00:50:49,880 --> 00:50:52,400
Speaker 14: terms of the income side of it. So we are

1000
00:50:52,600 --> 00:50:56,200
Speaker 14: able to look at how much will be exempted in

1001
00:50:56,320 --> 00:51:00,279
Speaker 14: terms of taxation before you start getting to text, your

1002
00:51:00,440 --> 00:51:03,680
Speaker 14: on your on your income. And a typical example, for instance,

1003
00:51:03,719 --> 00:51:08,600
Speaker 14: were allowed to to to get your income up to

1004
00:51:08,680 --> 00:51:14,480
Speaker 14: twenty seven point five percent as our deduction, right, And

1005
00:51:14,600 --> 00:51:18,080
Speaker 14: if you look at what that twenty seven point five means,

1006
00:51:18,160 --> 00:51:21,160
Speaker 14: it's I, for instance, you end up to a million rains,

1007
00:51:21,200 --> 00:51:23,160
Speaker 14: and yes, we do have people that end up to

1008
00:51:23,239 --> 00:51:26,319
Speaker 14: a million rains, so that amount is run about two

1009
00:51:26,400 --> 00:51:30,240
Speaker 14: hundred and seventy five one thousand rans that doesn't get text,

1010
00:51:30,600 --> 00:51:33,440
Speaker 14: and then you start getting text from that seven hundred

1011
00:51:33,600 --> 00:51:35,880
Speaker 14: twenty five, so which is a significant saving if you

1012
00:51:35,920 --> 00:51:39,360
Speaker 14: look at it that way. So, yes, that movement is significant,

1013
00:51:39,880 --> 00:51:43,080
Speaker 14: and it does make a difference in terms of the

1014
00:51:43,800 --> 00:51:46,280
Speaker 14: long attem view, in terms of your safe.

1015
00:51:46,520 --> 00:51:49,719
Speaker 2: I was fascinated by it's such a big change three

1016
00:51:49,840 --> 00:51:52,240
Speaker 2: hundred and fifty thousand to four hundred and thirty thousand,

1017
00:51:52,600 --> 00:51:55,640
Speaker 2: and I still don't quite understand why the National Treasury

1018
00:51:55,719 --> 00:51:58,200
Speaker 2: made such a big change to this. I mean clearly,

1019
00:51:58,280 --> 00:51:59,640
Speaker 2: what they do want to do is they want to

1020
00:51:59,680 --> 00:52:03,400
Speaker 2: incomuld you and I to say, yes, the thing, the.

1021
00:52:03,480 --> 00:52:06,840
Speaker 14: Reality is we're not a nation of great savors, and

1022
00:52:06,960 --> 00:52:09,800
Speaker 14: that the reality there's not a lot of us that

1023
00:52:10,080 --> 00:52:16,440
Speaker 14: are saving sufficiently to retire comfortably post our economic, economically

1024
00:52:16,480 --> 00:52:20,000
Speaker 14: active life, right our waking life. So the whole I

1025
00:52:20,080 --> 00:52:23,640
Speaker 14: DA and expert is to encourage us just to incentivize

1026
00:52:23,719 --> 00:52:27,880
Speaker 14: us to save more in terms of our retirement so

1027
00:52:28,040 --> 00:52:31,319
Speaker 14: that come the time where we are off the working age,

1028
00:52:31,719 --> 00:52:35,160
Speaker 14: then we can start enjoying that retirement. So it makes

1029
00:52:35,840 --> 00:52:39,239
Speaker 14: a Domini prudent and it makes absolute sense for the

1030
00:52:39,320 --> 00:52:42,600
Speaker 14: Treasury to say, look, let's incentivize people to save a

1031
00:52:42,680 --> 00:52:44,799
Speaker 14: bit more. And if you look at it, from an

1032
00:52:44,840 --> 00:52:47,879
Speaker 14: individual tax saving at least from a text saving point

1033
00:52:47,880 --> 00:52:50,600
Speaker 14: of view, it makes absolute sense that you should take

1034
00:52:50,640 --> 00:52:52,560
Speaker 14: advantage of that bracket change.

1035
00:52:52,960 --> 00:52:56,520
Speaker 2: Okay, So is there a difference between someone earning say

1036
00:52:56,520 --> 00:52:58,600
Speaker 2: around a million round a year and someone earning a

1037
00:52:58,680 --> 00:53:00,279
Speaker 2: lot more than that in the scale.

1038
00:53:02,160 --> 00:53:02,560
Speaker 6: They is.

1039
00:53:02,719 --> 00:53:06,799
Speaker 14: Unfortunately, if you look at it. For instance, we took

1040
00:53:06,800 --> 00:53:09,920
Speaker 14: an example of somebody that that ends a million, right,

1041
00:53:10,360 --> 00:53:12,879
Speaker 14: who's going to be text at least on a seven

1042
00:53:12,960 --> 00:53:15,680
Speaker 14: hundred ten twenty five thousand, that is, if they were

1043
00:53:15,800 --> 00:53:22,040
Speaker 14: to take advantage of the maximum twenty seven five percent allowable. Right.

1044
00:53:22,400 --> 00:53:24,520
Speaker 14: But if you look at somebody that ends let's say

1045
00:53:25,320 --> 00:53:29,240
Speaker 14: just upwards of let's say two million rates, the cap

1046
00:53:29,480 --> 00:53:31,719
Speaker 14: will not change. The cap will still be at four

1047
00:53:31,800 --> 00:53:34,680
Speaker 14: hundred and fifty thousand, right, So the detaction will be

1048
00:53:35,160 --> 00:53:38,920
Speaker 14: based on that four fifty thousand, and you start the

1049
00:53:39,040 --> 00:53:43,480
Speaker 14: taxation at one twenty five round about million rands. So

1050
00:53:43,560 --> 00:53:47,320
Speaker 14: there's still a significant amount, yes, in terms of savings

1051
00:53:47,360 --> 00:53:53,480
Speaker 14: that you can enjoy, but the taxation will do first

1052
00:53:53,480 --> 00:53:57,120
Speaker 14: significantly in terms of those that get higher in terms

1053
00:53:57,160 --> 00:53:58,240
Speaker 14: of the income brackets.

1054
00:53:58,800 --> 00:54:03,439
Speaker 2: Okay, then tax for free investment accounts? How do they work?

1055
00:54:03,480 --> 00:54:05,959
Speaker 2: They're not something I've actually discussed very often. A tax

1056
00:54:06,040 --> 00:54:07,040
Speaker 2: free investment account.

1057
00:54:08,360 --> 00:54:10,080
Speaker 14: You know, even if I, if I had it my

1058
00:54:10,160 --> 00:54:13,040
Speaker 14: way up, make everybody take advantage of the text free

1059
00:54:13,600 --> 00:54:17,440
Speaker 14: investment account because it's such a simple, simple product that

1060
00:54:17,640 --> 00:54:18,480
Speaker 14: actually works.

1061
00:54:18,600 --> 00:54:18,759
Speaker 5: Right.

1062
00:54:19,400 --> 00:54:22,319
Speaker 14: And the difference is if you were to say, let's say,

1063
00:54:22,480 --> 00:54:28,640
Speaker 14: using any other form of savings instrument or product or account, right,

1064
00:54:28,760 --> 00:54:32,520
Speaker 14: you get text on the interest end. But in this

1065
00:54:32,960 --> 00:54:36,360
Speaker 14: case you have a significant savings in terms of the

1066
00:54:36,560 --> 00:54:41,360
Speaker 14: amount that is exampt from from from taxation. We know

1067
00:54:41,520 --> 00:54:45,280
Speaker 14: that previously in the in the previously as the cuffs,

1068
00:54:45,280 --> 00:54:47,760
Speaker 14: in terms of the amount that you can save annually

1069
00:54:48,239 --> 00:54:50,680
Speaker 14: was run about thirty six k and that has changed

1070
00:54:50,680 --> 00:54:53,680
Speaker 14: to forty six thousand rants. We have a significant shift

1071
00:54:53,840 --> 00:54:55,120
Speaker 14: in terms of the cap.

1072
00:54:55,280 --> 00:54:56,240
Speaker 11: Over a long period.

1073
00:54:56,520 --> 00:54:58,439
Speaker 14: So if you were to look at a product such

1074
00:54:58,480 --> 00:55:02,320
Speaker 14: as that, it allows you to actually put money aside.

1075
00:55:02,440 --> 00:55:06,360
Speaker 14: And yes, again we are not a nation of savings,

1076
00:55:06,480 --> 00:55:09,880
Speaker 14: and this is one of those instruments or tools that

1077
00:55:10,000 --> 00:55:13,200
Speaker 14: you can use to save on a regular basis. And

1078
00:55:13,400 --> 00:55:17,040
Speaker 14: and again, just to give it a little bit stupid,

1079
00:55:17,440 --> 00:55:19,799
Speaker 14: savings is not just about money. It's not about how

1080
00:55:19,880 --> 00:55:23,160
Speaker 14: much you end it's a behavioral thing and the best

1081
00:55:23,320 --> 00:55:26,840
Speaker 14: time to start savings immediately, start small, but with what

1082
00:55:27,280 --> 00:55:30,680
Speaker 14: you can afford, right, and build on that. But do

1083
00:55:31,000 --> 00:55:32,880
Speaker 14: consider a text free savings account.

1084
00:55:33,480 --> 00:55:35,920
Speaker 2: What happens if you go past the limit? I mean,

1085
00:55:35,960 --> 00:55:38,560
Speaker 2: do you suddenly find yourself having to be text on

1086
00:55:39,120 --> 00:55:40,560
Speaker 2: just the difference on the whole thing?

1087
00:55:41,680 --> 00:55:44,560
Speaker 14: And unfortunately you will get text on the on the

1088
00:55:44,640 --> 00:55:48,080
Speaker 14: on the difference. So there is a limit that is kept.

1089
00:55:49,040 --> 00:55:52,960
Speaker 14: But yes, you will get text unfortunately on on the difference.

1090
00:55:53,280 --> 00:55:56,960
Speaker 14: But if you consider the upside, is that much greater

1091
00:55:57,880 --> 00:56:01,160
Speaker 14: in terms of the incentives of savings, notut necessarily losing

1092
00:56:01,200 --> 00:56:02,480
Speaker 14: the power of what you've saved.

1093
00:56:03,080 --> 00:56:06,160
Speaker 2: Okay, most of the time when we sort of manage

1094
00:56:06,280 --> 00:56:09,840
Speaker 2: tax and income, we're doing it for individuals. Is there

1095
00:56:09,880 --> 00:56:11,799
Speaker 2: an opportunity here for families in some way?

1096
00:56:12,680 --> 00:56:12,879
Speaker 14: Yeah?

1097
00:56:12,960 --> 00:56:13,880
Speaker 13: Yeah, absolutely.

1098
00:56:14,560 --> 00:56:19,200
Speaker 14: Look, the family units are made up of individuals within

1099
00:56:19,360 --> 00:56:22,759
Speaker 14: that family unit, right, and you can take advantage of

1100
00:56:22,880 --> 00:56:27,600
Speaker 14: that by saying, creating individual pockets in terms of savings

1101
00:56:27,760 --> 00:56:31,560
Speaker 14: as a unit, yes, but then consider their savings at

1102
00:56:31,640 --> 00:56:38,160
Speaker 14: an individual level such that your overall household savings increase

1103
00:56:38,320 --> 00:56:43,520
Speaker 14: that much by considering yourselves as individuals. So absolutely there

1104
00:56:43,600 --> 00:56:47,840
Speaker 14: is there is an upside in saving as a family

1105
00:56:48,560 --> 00:56:51,560
Speaker 14: compared to which is lumping everything in one part.

1106
00:56:53,680 --> 00:56:56,440
Speaker 2: Is it that different from other savings accounts? I mean

1107
00:56:56,800 --> 00:56:59,320
Speaker 2: it seems to have something that's different to it.

1108
00:57:00,920 --> 00:57:03,800
Speaker 14: Again, like I said, if I if I had personally

1109
00:57:03,920 --> 00:57:07,600
Speaker 14: had two issues, that will be the easier. Yes, absolutely,

1110
00:57:07,840 --> 00:57:12,839
Speaker 14: because you do get taxation on other savings savings tools, right,

1111
00:57:13,200 --> 00:57:16,440
Speaker 14: and there is one that is specifically created not to

1112
00:57:16,560 --> 00:57:20,920
Speaker 14: attract attacks, at least up to a certain level, up

1113
00:57:20,960 --> 00:57:22,960
Speaker 14: to a certain liment, and even in the way it

1114
00:57:23,160 --> 00:57:23,880
Speaker 14: is constructed.

1115
00:57:24,400 --> 00:57:24,520
Speaker 6: Right.

1116
00:57:24,960 --> 00:57:27,640
Speaker 14: It's one of those products that are easy to buy,

1117
00:57:27,800 --> 00:57:31,200
Speaker 14: it's easy to manage, and that's really flexible. Of course,

1118
00:57:31,240 --> 00:57:34,080
Speaker 14: we don't like people putting money and and getting into

1119
00:57:34,120 --> 00:57:37,760
Speaker 14: the savings. I dearly want to put savings over a

1120
00:57:37,840 --> 00:57:41,240
Speaker 14: long period. But it's one of those tools, or at

1121
00:57:41,360 --> 00:57:45,160
Speaker 14: least the savings product that is easy to manage and

1122
00:57:45,320 --> 00:57:48,920
Speaker 14: if you were to compare, Yes, of course, it differs

1123
00:57:48,960 --> 00:57:52,520
Speaker 14: from passion to person, and in many an instance it's

1124
00:57:52,600 --> 00:57:55,880
Speaker 14: not an either or. Depending on what you want to

1125
00:57:56,320 --> 00:57:58,960
Speaker 14: say for or what you want to invest for, you

1126
00:57:59,080 --> 00:58:01,440
Speaker 14: might choose it to product. But this is one of

1127
00:58:01,520 --> 00:58:05,120
Speaker 14: those ideal products that are fairly flexible in terms of

1128
00:58:05,240 --> 00:58:07,880
Speaker 14: how the the they are managed. And I know a

1129
00:58:07,920 --> 00:58:12,000
Speaker 14: whole lot of people that are advocates of this this product.

1130
00:58:12,760 --> 00:58:14,960
Speaker 2: Are there particular ways to get the most out of it?

1131
00:58:15,800 --> 00:58:18,120
Speaker 2: I mean, I imagine I can just see how people

1132
00:58:18,160 --> 00:58:20,320
Speaker 2: can spend some time sort of gaming it in a way.

1133
00:58:22,600 --> 00:58:26,160
Speaker 14: The easiest, I imagine is to start. That's that's the

1134
00:58:26,240 --> 00:58:29,680
Speaker 14: first thing. Start study as elia as possible. For instance,

1135
00:58:29,760 --> 00:58:33,000
Speaker 14: if the parents that have kids teach them to start

1136
00:58:33,120 --> 00:58:37,480
Speaker 14: saving at a very age, just just build that savings muscle,

1137
00:58:37,560 --> 00:58:39,640
Speaker 14: and this is one of those products that you can use.

1138
00:58:40,160 --> 00:58:44,880
Speaker 14: That's that's the first thing. Secondly, be consistent. So if

1139
00:58:45,000 --> 00:58:47,160
Speaker 14: if if if you were to ask me in terms

1140
00:58:47,200 --> 00:58:49,840
Speaker 14: of the approach when it comes to saving, save the

1141
00:58:49,920 --> 00:58:52,440
Speaker 14: money that you can actually afford to save on a

1142
00:58:52,520 --> 00:58:55,080
Speaker 14: regular basis, if you are a weekly and a save

1143
00:58:55,160 --> 00:58:57,360
Speaker 14: on a weekly basis, if you're a monthly and save

1144
00:58:57,400 --> 00:59:01,440
Speaker 14: on a monthly basis. But then be consistent and as in,

1145
00:59:01,640 --> 00:59:05,200
Speaker 14: when you are able to increase your your savings amount,

1146
00:59:05,480 --> 00:59:08,680
Speaker 14: take advantage of that. And if you have things like windfall,

1147
00:59:09,080 --> 00:59:13,080
Speaker 14: there's others that will get taking check or bonuses, consider

1148
00:59:13,920 --> 00:59:19,080
Speaker 14: saving the saving the that but Most importantly, avoid making

1149
00:59:19,200 --> 00:59:22,000
Speaker 14: unnecessary with raws. And I know that some of these

1150
00:59:22,600 --> 00:59:25,840
Speaker 14: products are fairly flexible that they allow you, but you're

1151
00:59:25,880 --> 00:59:29,400
Speaker 14: completing the value that you could get if you were

1152
00:59:29,440 --> 00:59:34,600
Speaker 14: to look at the value of compounding. So be consistent,

1153
00:59:34,880 --> 00:59:41,520
Speaker 14: start elie, avoid unnecessary, avoid unnecessary with rawals, and have

1154
00:59:41,760 --> 00:59:44,680
Speaker 14: some sort of time arise in in mind right, stay

1155
00:59:44,800 --> 00:59:48,480
Speaker 14: the cost, stay the course with what you want to achieve,

1156
00:59:48,520 --> 00:59:52,800
Speaker 14: and stay disciplined. Most importantly, start double.

1157
00:59:52,880 --> 00:59:55,640
Speaker 2: We've had a few messages coming through and just on

1158
00:59:55,800 --> 00:59:58,720
Speaker 2: the point of not touching the major amount the principle,

1159
00:59:58,840 --> 01:00:01,960
Speaker 2: Collie says, it's even coming from our history. Retirement seems

1160
01:00:01,960 --> 01:00:03,840
Speaker 2: to be the worst period of my life. And many

1161
01:00:03,880 --> 01:00:07,080
Speaker 2: others say, so you have millions sitting there while life

1162
01:00:07,200 --> 01:00:09,760
Speaker 2: is not kind. And I presume what they're saying is

1163
01:00:09,880 --> 01:00:14,160
Speaker 2: that you have millions sitting in the retirement account, but

1164
01:00:14,240 --> 01:00:16,680
Speaker 2: you can't actually touch it when you need it. And

1165
01:00:16,760 --> 01:00:19,560
Speaker 2: this I think is coming from someone who's already retired.

1166
01:00:19,600 --> 01:00:21,560
Speaker 2: And I have to say, I can understand that frustration.

1167
01:00:23,160 --> 01:00:28,200
Speaker 14: I can understand that I must be honest. I I

1168
01:00:28,240 --> 01:00:31,680
Speaker 14: can't identify it, but I can understand what they're talking about.

1169
01:00:31,960 --> 01:00:35,320
Speaker 14: But remember in terms of retirement, you try as much

1170
01:00:35,320 --> 01:00:38,560
Speaker 14: as you possibly can to maintain the standard of life

1171
01:00:38,640 --> 01:00:40,960
Speaker 14: that you had whilst you were still economically active.

1172
01:00:41,200 --> 01:00:42,160
Speaker 5: And that's the point.

1173
01:00:42,000 --> 01:00:45,480
Speaker 14: Behind entertainment is not to be dependent, for instance, on

1174
01:00:45,640 --> 01:00:49,240
Speaker 14: eithers a dependent or having to prolong your period of

1175
01:00:49,360 --> 01:00:52,400
Speaker 14: waking and necessarily so yes, there might be money that

1176
01:00:52,520 --> 01:00:55,320
Speaker 14: sits in somewhere and you are unable to withdraw the

1177
01:00:55,720 --> 01:00:59,520
Speaker 14: entire money, but the whole point behind entertainment is able

1178
01:00:59,560 --> 01:01:03,080
Speaker 14: to be able to act least maintain some semblance of

1179
01:01:03,560 --> 01:01:07,480
Speaker 14: what you had, a lifestyle that is similar to what

1180
01:01:07,680 --> 01:01:11,160
Speaker 14: you had when you were still actively involved. So patients,

1181
01:01:11,440 --> 01:01:12,040
Speaker 14: I would.

1182
01:01:12,160 --> 01:01:16,200
Speaker 2: Yeah, so Riah has got in touch, saying Steve and

1183
01:01:16,280 --> 01:01:18,920
Speaker 2: high this is Soriah. The biggest elephant in the room

1184
01:01:19,000 --> 01:01:21,560
Speaker 2: and retirement funds is is get you get text every

1185
01:01:21,600 --> 01:01:24,280
Speaker 2: month on your payout? Why is a pension terms does

1186
01:01:24,360 --> 01:01:27,440
Speaker 2: income In the most vulnerable years, You're still text despite

1187
01:01:27,520 --> 01:01:30,960
Speaker 2: contributing until you're sixty five ash He says, I mean

1188
01:01:31,360 --> 01:01:33,000
Speaker 2: I can imagine that frustration too.

1189
01:01:34,360 --> 01:01:37,800
Speaker 14: I can imagine that frustration and age. Indeed, you would

1190
01:01:37,880 --> 01:01:41,720
Speaker 14: ideally don't want to be text, but there's there's if

1191
01:01:41,760 --> 01:01:45,200
Speaker 14: you talk to your text consultants for infants. There's ways

1192
01:01:45,360 --> 01:01:48,360
Speaker 14: and means of making sure that you optimize your text

1193
01:01:48,400 --> 01:01:50,960
Speaker 14: are failed. I am not saying you should upboid texts,

1194
01:01:51,280 --> 01:01:55,040
Speaker 14: but talk to tax experts so that your your your

1195
01:01:55,160 --> 01:01:57,480
Speaker 14: your your incoming is that much optimized.

1196
01:01:58,040 --> 01:01:59,600
Speaker 5: That is the best way to go about it.

1197
01:02:00,000 --> 01:02:04,600
Speaker 2: Can avoid it, unfortunately, So, Ryan Courie, thanks very much. Indeed,

1198
01:02:05,960 --> 01:02:08,160
Speaker 2: I've done a reminder, of course, I seven two seven

1199
01:02:08,240 --> 01:02:12,480
Speaker 2: or two one seven o two double the tax free

1200
01:02:12,520 --> 01:02:16,560
Speaker 2: savings account and retirement annuities. I mean which would be better?

1201
01:02:17,080 --> 01:02:20,000
Speaker 2: And I suppose there they have slightly different things, but

1202
01:02:20,120 --> 01:02:22,320
Speaker 2: which would be the best one to make contributions to?

1203
01:02:23,680 --> 01:02:26,640
Speaker 14: In my world, I would say it's not in either.

1204
01:02:26,840 --> 01:02:32,680
Speaker 14: All the two products can actually work as complimentary product. Remember,

1205
01:02:32,960 --> 01:02:36,120
Speaker 14: when it comes to the retirement, you're looking beyond your

1206
01:02:36,160 --> 01:02:39,600
Speaker 14: economically active life, right And when it comes to text free,

1207
01:02:39,720 --> 01:02:42,560
Speaker 14: you could use it for your your your shirt and

1208
01:02:42,800 --> 01:02:46,520
Speaker 14: mid temp kind of saving savings. And yes, you can

1209
01:02:46,640 --> 01:02:49,600
Speaker 14: extend it to a longer, longer tempt. So if you

1210
01:02:49,720 --> 01:02:51,600
Speaker 14: were to ask me, it's not it's not in either.

1211
01:02:51,960 --> 01:02:57,360
Speaker 14: I would rather look at the two products as as

1212
01:02:57,480 --> 01:03:02,200
Speaker 14: complimentary products. But most importantly, use your your your your

1213
01:03:02,280 --> 01:03:06,000
Speaker 14: text free as almost like a buffer product that you

1214
01:03:06,080 --> 01:03:09,800
Speaker 14: can still actress. Remember I know that for instance, in

1215
01:03:09,880 --> 01:03:11,960
Speaker 14: terms of the two part system, you you still have

1216
01:03:12,200 --> 01:03:15,640
Speaker 14: some sort of sense of being able to access part

1217
01:03:15,640 --> 01:03:19,360
Speaker 14: of the money. My sense is lived there. Let it,

1218
01:03:19,560 --> 01:03:22,480
Speaker 14: let it work for your retirement. But use your your

1219
01:03:22,520 --> 01:03:25,600
Speaker 14: text fore your your short term and mid term savings

1220
01:03:25,680 --> 01:03:28,320
Speaker 14: product as your perfot form now in case of emergencies,

1221
01:03:28,680 --> 01:03:31,560
Speaker 14: in case of specific goals. So it's not in either

1222
01:03:31,960 --> 01:03:34,240
Speaker 14: or in terms of the choice between the two products

1223
01:03:34,920 --> 01:03:36,880
Speaker 14: is mostly as complementary products.

1224
01:03:37,200 --> 01:03:39,960
Speaker 2: We're speaking to Tabohollo this evening, the program manager for

1225
01:03:40,040 --> 01:03:43,600
Speaker 2: Old Mutual Financial Education. We're going through some of the

1226
01:03:43,720 --> 01:03:46,320
Speaker 2: changes in the budget, looking at tax free savings accounts

1227
01:03:46,400 --> 01:03:49,480
Speaker 2: and retirement annuities double one double A three seven O

1228
01:03:49,600 --> 01:03:51,800
Speaker 2: two two one four four six O five six seven

1229
01:03:51,840 --> 01:03:54,360
Speaker 2: and of course vote notes on seven two seven or

1230
01:03:54,360 --> 01:03:56,120
Speaker 2: two one seven or two ten minutes.

1231
01:03:56,120 --> 01:04:00,520
Speaker 8: Stay The Money shows even a flu brought to you

1232
01:04:00,800 --> 01:04:04,240
Speaker 8: by apps of Corporate and Investment back. A refined performance

1233
01:04:04,520 --> 01:04:08,000
Speaker 8: is a measure of discipline. That's how we're invested in

1234
01:04:08,280 --> 01:04:10,640
Speaker 8: your story apps as a ratised FSP.

1235
01:04:12,040 --> 01:04:16,560
Speaker 2: The Money Show Personal Finance eight minutes now to eight

1236
01:04:16,760 --> 01:04:19,360
Speaker 2: the time speaking to Table Hall or the program manager

1237
01:04:19,400 --> 01:04:22,400
Speaker 2: for Old Mutual Financial Education about some of the changes

1238
01:04:22,440 --> 01:04:24,640
Speaker 2: that we've seen in tax allowances and all the rest

1239
01:04:24,760 --> 01:04:30,040
Speaker 2: in the budget for your retirement. So okay, you suggest

1240
01:04:30,080 --> 01:04:33,040
Speaker 2: Table that we should consider the tax free savings account

1241
01:04:33,080 --> 01:04:37,400
Speaker 2: and a retirement tenuity as complementary to each other. When

1242
01:04:37,440 --> 01:04:39,880
Speaker 2: you start, I mean, how would you invest in your

1243
01:04:40,000 --> 01:04:42,680
Speaker 2: in your TFSA or your tax free savings account? How

1244
01:04:42,720 --> 01:04:44,080
Speaker 2: should you start that process?

1245
01:04:45,840 --> 01:04:51,440
Speaker 14: And so my advice with the approach your trusted financial

1246
01:04:51,480 --> 01:04:56,200
Speaker 14: services provider, whether the banking instituation I know banks to

1247
01:04:56,640 --> 01:05:01,800
Speaker 14: offer the product, or an insurance provider ensure us to

1248
01:05:02,080 --> 01:05:06,520
Speaker 14: provide the product. But most importantly your first step, Stevens,

1249
01:05:06,720 --> 01:05:10,360
Speaker 14: is speak to your financial advisor. So struct you know

1250
01:05:10,800 --> 01:05:14,760
Speaker 14: your budget, for instance, so finances accordingly, don't just call

1251
01:05:14,920 --> 01:05:18,600
Speaker 14: in and buy a product before you understand one, how

1252
01:05:18,640 --> 01:05:21,120
Speaker 14: it works, the mechanics, what are you going to get,

1253
01:05:21,200 --> 01:05:24,080
Speaker 14: what is your obligation, et cetera, et cetera. So if

1254
01:05:24,160 --> 01:05:26,520
Speaker 14: you were to ask me or say that we're talking

1255
01:05:26,600 --> 01:05:29,880
Speaker 14: to your financial adviser in terms of structuring your finances,

1256
01:05:30,360 --> 01:05:32,960
Speaker 14: look into your pargety and say what can I and

1257
01:05:33,120 --> 01:05:35,040
Speaker 14: what can I not afford? And how much can I

1258
01:05:35,080 --> 01:05:39,920
Speaker 14: afford In terms of savings, remember the magic formula, the

1259
01:05:40,080 --> 01:05:43,760
Speaker 14: fifty thirty twenty rule, the twenty percent that talks to

1260
01:05:43,840 --> 01:05:46,960
Speaker 14: savings and your debt. Make sure that it falls within

1261
01:05:47,040 --> 01:05:50,280
Speaker 14: that it's something that you can afford. But as as

1262
01:05:50,320 --> 01:05:53,360
Speaker 14: a fast step, speak to your your your financial advisor

1263
01:05:53,800 --> 01:05:58,240
Speaker 14: and try to understand the different institutions and what they

1264
01:05:58,320 --> 01:06:01,800
Speaker 14: offer and what what would be suitable for you and

1265
01:06:01,920 --> 01:06:02,600
Speaker 14: your family.

1266
01:06:03,520 --> 01:06:05,640
Speaker 2: Tuble, we've got voice notes coming through this evening on

1267
01:06:05,880 --> 01:06:12,560
Speaker 2: seven two seven two one seven o two. My pension

1268
01:06:12,760 --> 01:06:13,000
Speaker 2: that I.

1269
01:06:13,080 --> 01:06:17,240
Speaker 15: Got paid out ten years ago is now only worth

1270
01:06:18,280 --> 01:06:21,240
Speaker 15: in buying power the third of what it was ten

1271
01:06:21,360 --> 01:06:25,640
Speaker 15: years ago as a result of inflation. So people must

1272
01:06:25,680 --> 01:06:27,000
Speaker 15: always keep that in mind.

1273
01:06:27,240 --> 01:06:28,400
Speaker 2: Don't think what you get.

1274
01:06:28,320 --> 01:06:31,360
Speaker 15: Out unless you have one of those living annuities that

1275
01:06:31,480 --> 01:06:34,280
Speaker 15: sort of carry on and give you an increase, or

1276
01:06:34,320 --> 01:06:37,120
Speaker 15: a government pension that gives you an increase. But otherwise

1277
01:06:38,040 --> 01:06:42,800
Speaker 15: better be sure that you have an additional retirement annuity

1278
01:06:43,960 --> 01:06:47,040
Speaker 15: to your pension. Just a pension won't be enough anymore.

1279
01:06:47,160 --> 01:06:48,439
Speaker 15: Thanks for lovely show boy.

1280
01:06:49,000 --> 01:06:51,840
Speaker 2: Thanks So that's from Selma Tuble and I mean, this

1281
01:06:52,000 --> 01:06:54,320
Speaker 2: is the issue. Really, isn't this always the problem? What

1282
01:06:54,440 --> 01:06:56,360
Speaker 2: we're fighting constantly here is inflation.

1283
01:06:57,560 --> 01:06:59,720
Speaker 14: There's a massive issue, and it's not used in terms

1284
01:06:59,760 --> 01:07:03,400
Speaker 14: of tirement. But even in the current state inflation. We

1285
01:07:03,520 --> 01:07:06,920
Speaker 14: should always be conscious of inflation. Even in our hours

1286
01:07:07,000 --> 01:07:10,760
Speaker 14: the structuring our finances, we should also affect the issue

1287
01:07:10,800 --> 01:07:14,440
Speaker 14: and inflation. And yes, sometimes it's tempting to to low

1288
01:07:14,560 --> 01:07:18,120
Speaker 14: ball and and say, look, we're hoping that the inflation

1289
01:07:18,200 --> 01:07:21,560
Speaker 14: will always stay at one between three and six percent.

1290
01:07:22,760 --> 01:07:25,560
Speaker 14: The best thing is to work with the worst and

1291
01:07:25,640 --> 01:07:29,400
Speaker 14: hope for the best. So yes, absolutely, it does have

1292
01:07:29,440 --> 01:07:34,760
Speaker 14: an impact on your savings, unfortunately, But then at the beginning,

1293
01:07:34,880 --> 01:07:37,480
Speaker 14: just at the beginning, we should be conscious of that,

1294
01:07:37,680 --> 01:07:39,960
Speaker 14: and as we structure our finances, as we talk to

1295
01:07:40,000 --> 01:07:43,600
Speaker 14: our financial advices, be conscious of the fact that inflation

1296
01:07:43,920 --> 01:07:47,160
Speaker 14: is a reality. And if we lowball the amount that

1297
01:07:47,240 --> 01:07:50,960
Speaker 14: we are saving, the likelihood is that replacement value will

1298
01:07:51,040 --> 01:07:54,280
Speaker 14: also be affected in terms of what inflation looks like.

1299
01:07:54,680 --> 01:07:56,880
Speaker 14: So let's talk to the youth that are getting into

1300
01:07:56,960 --> 01:08:00,560
Speaker 14: work now start thinking about this. Let's talk about those

1301
01:08:00,640 --> 01:08:03,000
Speaker 14: that are made sure in the in the environment of work,

1302
01:08:03,320 --> 01:08:06,920
Speaker 14: and those that are saving be conscious of the rate

1303
01:08:06,960 --> 01:08:09,680
Speaker 14: of inflation and what it came through in terms of

1304
01:08:09,800 --> 01:08:10,440
Speaker 14: your retirement.

1305
01:08:11,640 --> 01:08:13,400
Speaker 2: But also, I mean, we're getting a lot of messages

1306
01:08:13,440 --> 01:08:17,080
Speaker 2: for you tonight. Tub Natasha's asking now the best way

1307
01:08:17,439 --> 01:08:20,280
Speaker 2: when you when you, how would you say, because I

1308
01:08:20,360 --> 01:08:23,400
Speaker 2: can save on an on a non tax free savings account.

1309
01:08:23,520 --> 01:08:25,200
Speaker 2: Let me let me put it in her words, she says,

1310
01:08:25,520 --> 01:08:27,200
Speaker 2: when I look at a savings account, what is the

1311
01:08:27,240 --> 01:08:29,519
Speaker 2: best way to save a tax free account or a

1312
01:08:29,640 --> 01:08:32,639
Speaker 2: savings account where I can save on a non tax

1313
01:08:32,760 --> 01:08:35,400
Speaker 2: free savings account where I'll have to pay tax where

1314
01:08:35,439 --> 01:08:37,439
Speaker 2: the growth is long term. And she's been looking at

1315
01:08:38,160 --> 01:08:42,280
Speaker 2: certain things from different institutions. I think where she's going

1316
01:08:42,880 --> 01:08:44,559
Speaker 2: is that when you get paid out, you end up

1317
01:08:44,600 --> 01:08:45,759
Speaker 2: having to pay tax anyway.

1318
01:08:46,240 --> 01:08:52,200
Speaker 14: Yeah, I like the fact that she's already considered that's

1319
01:08:52,240 --> 01:08:55,240
Speaker 14: a fair Yeah. Secondly, I love the fact that she's

1320
01:08:55,320 --> 01:09:00,280
Speaker 14: standing different things and personalizing it because what works Steve

1321
01:09:00,320 --> 01:09:03,000
Speaker 14: it might not necessarily work for Tabo. And and if

1322
01:09:03,040 --> 01:09:06,080
Speaker 14: she looks at it and say I want to I'm

1323
01:09:06,120 --> 01:09:11,280
Speaker 14: want to defavor the taxation and pay then absolutely, so

1324
01:09:11,360 --> 01:09:15,160
Speaker 14: long as there's savings involved in that. But my personal

1325
01:09:15,479 --> 01:09:19,640
Speaker 14: personal favorite will still make the Unfortunately the text we

1326
01:09:20,400 --> 01:09:23,160
Speaker 14: saving because there's an upside. There's an upside to it,

1327
01:09:23,640 --> 01:09:27,479
Speaker 14: but to every other person, the first thing is understand

1328
01:09:27,520 --> 01:09:30,639
Speaker 14: what you're getting yourself into. Get as much information as

1329
01:09:30,640 --> 01:09:33,719
Speaker 14: it possibly can. Yes, it's okay to do your own

1330
01:09:34,880 --> 01:09:37,599
Speaker 14: searches on search engines, but I think the best thing

1331
01:09:37,760 --> 01:09:40,920
Speaker 14: is to see with somebody that's qualified who can random

1332
01:09:40,960 --> 01:09:44,000
Speaker 14: numbers for you and evey different scenarios and say, if

1333
01:09:44,040 --> 01:09:46,479
Speaker 14: you go to option A, this is what the text

1334
01:09:46,520 --> 01:09:49,400
Speaker 14: implication would look like. You go for action B. This

1335
01:09:49,760 --> 01:09:52,000
Speaker 14: is what the difference would look like. Fact that when

1336
01:09:52,080 --> 01:09:57,120
Speaker 14: you make a decision, you at least make an informed decision,

1337
01:09:57,439 --> 01:10:00,559
Speaker 14: not just an emotional decision, but something that will expense

1338
01:10:01,080 --> 01:10:04,080
Speaker 14: for you as a person. But let it be considered.

1339
01:10:04,479 --> 01:10:07,400
Speaker 14: So I love the way she's approaching it in terms

1340
01:10:07,439 --> 01:10:11,840
Speaker 14: of getting as much information and including the institution. Shop around,

1341
01:10:12,400 --> 01:10:16,360
Speaker 14: look at what institution A gives you compared to institution B,

1342
01:10:16,960 --> 01:10:19,120
Speaker 14: and choose the institution that makes sense to you.

1343
01:10:19,600 --> 01:10:22,320
Speaker 2: We've got three seconds left. You can use these as

1344
01:10:22,439 --> 01:10:24,760
Speaker 2: parents to say for education for your kids as well,

1345
01:10:25,960 --> 01:10:26,919
Speaker 2: best best.

1346
01:10:26,720 --> 01:10:30,120
Speaker 14: Thing ever because you can have Remember, education also has

1347
01:10:30,160 --> 01:10:34,080
Speaker 14: been in an inflation sector in with it. But now

1348
01:10:34,520 --> 01:10:38,240
Speaker 14: now you can use your text fully savings account some

1349
01:10:38,360 --> 01:10:41,120
Speaker 14: sort of a HGH to say, put money aside and

1350
01:10:41,320 --> 01:10:44,040
Speaker 14: over a longer period you can use that money for

1351
01:10:44,280 --> 01:10:48,320
Speaker 14: your your children's education. Absolutely, we have to invest in kids,

1352
01:10:48,520 --> 01:10:51,080
Speaker 14: but we have to make those decisions now that.

1353
01:10:51,600 --> 01:10:53,760
Speaker 2: Now, Tabo been great to talk to you, Thank you

1354
01:10:53,840 --> 01:10:56,360
Speaker 2: so much. Tabohollow is the program manager for the old

1355
01:10:56,400 --> 01:10:59,679
Speaker 2: Mutual Financial Education, joining us on personal finance this evening.

1356
01:11:00,040 --> 01:11:02,960
Speaker 2: So many different ways to understand the options that are

1357
01:11:03,040 --> 01:11:06,240
Speaker 2: available to you. And as he says, as Table says,

1358
01:11:06,439 --> 01:11:10,000
Speaker 2: and you know, as Warren would say, as John would say,

1359
01:11:10,800 --> 01:11:14,200
Speaker 2: start now, go and do the research and start now

1360
01:11:14,320 --> 01:11:17,000
Speaker 2: really does pay off now. Tuble really enjoyed that. Thank

1361
01:11:17,040 --> 01:11:17,599
Speaker 2: you very much.

1362
01:11:17,760 --> 01:11:22,320
Speaker 8: Indeed, the Money Show with Stephen Akroutez's brought to you

1363
01:11:22,640 --> 01:11:26,360
Speaker 8: by apps of Corporate and Investment backing. Refined performance is

1364
01:11:26,439 --> 01:11:30,679
Speaker 8: a measure of discipline. That's how we're invested in your story,

1365
01:11:30,960 --> 01:11:32,200
Speaker 8: as are raised at their f FP.

1366
01:11:33,600 --> 01:11:35,920
Speaker 2: Well, the huge losses where the US started beginning to

1367
01:11:35,960 --> 01:11:38,600
Speaker 2: come off a little bit. The Dow Jones now just

1368
01:11:38,720 --> 01:11:41,519
Speaker 2: down one point four five percent, the NAADAC down one

1369
01:11:41,560 --> 01:11:43,320
Speaker 2: point three eight in the S and P five hundred

1370
01:11:43,360 --> 01:11:47,759
Speaker 2: down one point two seventy. Situation around Iran, its attacks

1371
01:11:48,040 --> 01:11:51,799
Speaker 2: on the US, and Israel's allies after their attacks on Iran.

1372
01:11:52,200 --> 01:11:54,400
Speaker 2: That really being I think the big focus tonight, and

1373
01:11:54,479 --> 01:11:58,000
Speaker 2: of course everything to do around oil. We'll be back tomorrow.

1374
01:11:58,000 --> 01:11:58,720
Speaker 2: Good evening. It's eight