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Satchu's Rich Wrap-Up
Thursday 10th of June 2010

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0930-1500 KENYA TIME
Normal Board - The Whole shebang
Prompt Board Next day settlement
Expert Board All you need re an Individual stock.

The Latest Daily PodCast can be found here

The Biden Entourage from my Eight Floor Window Museum Hill 10.03

I have been benched this afternoon by Jeff Koinange on K24 and O'Brien
has me on his KBC Budget Programme so please accept this earlier
Missive and I will review the Budget in tomorrow's email.

A Collection of Opinion Pieces for The #Star 2010

The Kenya Shilling hits a 6 Year Low 07th June

Kenya The  #Silicon Valley of Mobile Banking May 24th

Voodoo Economics 15th Feb 2010

Macro Thoughts

Thoughts remain unchanged.

Home Thoughts

I still have those Thoughts of Time hurtling ever quicker, Children
growing up and how as a Parent you would probably lay down your life
for your Child [if you ever were presented with such an awful Choice]
and how much Abraham must have loved God to even have countenanced
God's Edict to sacrifice his son Isaac. From there I leapt to the
Story of Humayoun. The Story goes that the Emperor Babur [The Founder
of the Mughal Empire, the Only Conqueror of Afghanistan [I do wonder
if his Autobiography Baburnama has made it onto the President's
Reading List]] when his Son and only Heir the young Humayun had become
very sick and his condition hopeless,The King walked around Humayun’s
sick bed three times and prayed that his son’s sickness would be
transferred to him instead so that Humayun would live and he would die
in his place.The story tells Humayun lived and Baber became sick and
died as he wished.

Humayun's Tomb

Enough of that. Let me tell you my BIG G Story. Last Night, Hannah
spots some chewing Gum in Aysha's Rucksack and starts howling,

'I want Gum, I want Gum.' Imagine that replayed ad infinitum, scaling
up and down with a ferocity that is belied entirely by her still
dimunitive Size. This Morning, one eye opens and 'I want gum' starts
again. I remembered I had seen some BIG G [Chewing Gum from when I was
a little Boy] and bought it a couple of days ago as a sort of
reminiscence of my Childhood.

I whipped it out and put on my very best Richard Pryor Voice

'This Gummmmmmmmmm! [Thats the Richard Pryor] has been with me since I
was a little Boy in Mombasa,' I said. 'It has Magic Properties. It has
been with me to London, all over the World and it has followed me all
the way to Nairobi.'

I was winning now.

'This Gum is now yours. Let's not talk about it anymore now.'

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The cleric who changed Asia Times

Once known as an open-minded and forward-thinking cleric, Iranian
Ayatollah Ali Khamenei used to come under criticism from conservative
elements for going against the accepted clerical norms. Since becoming
supreme leader - the country's senior political and religious
authority - in 1989, however, he has adopted a fundamentalist and
conservative approach.

The chief of staff of Iran's armed forces, commander Hossein
Firouzabadi, who met Khamenei before the revolution, said, "We loved
the scent ... he would sit in the mosque, fill his pipe, light it and
start smoking. Everyone usually says clergy have a sanctity that must
be observed, [but he didn't care]."


The Sophistication of His Mind and his Erudition is not in question, I venture.

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Currency Markets At A Glance
World Currencies

Euro 1.2043
Pound 1.4584
Dollar Index 87.55
Aussie 0.8371 Strong Jobs Number.
Rand 7.77
South Korea Won 1255.40
Real 1.8498

Besides no fundamental change, like weak economic data, "there have
been no headlines of note screaming about some unforeseen aspect of
the sovereign debt crisis," he wrote in a note. "Unfortunately for the
continental currency, this recent rally hasn't been driven by good
news either and therefore it looks to be somewhat short lived." IG

South Korea’s won slumped 1.5 percent to 1,267.85 per dollar after
Vice Finance Minister Yim Jong Yong said the government will “soon”
announce plans to reduce volatility in capital flows. The Maeil
Business Newspaper said today the regulations will limit banks’
currency-forward transactions.

New Zealand’s dollar climbed after central bank Governor Alan Bollard
raised the benchmark interest rate to 2.75 percent, the first increase
in three years


Short covering, strong German exports also gave things a little lift.

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World Equity Markets At A Glance
World Of Finance

Dow Revisits, Fails to Hold 10000 Level The Dow industrials fell 40.73
as a rally fizzled after Germany's chancellor said the time to
withdraw stimulus has come.

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BP Trades as Junk, Credit-Default Swaps Invert: Credit Markets Bloomberg
World Of Finance

BP Plc  bonds and credit-default swaps are trading as if the energy
company has lost its investment-grade rating as costs mount from the
worst oil spill in U.S. history.BP’s $3 billion of 5.25 percent notes
due in 2013 fell as low as a record 89.94 cents yesterday, pushing the
yield to 7.57 percentage points more than Treasuries. The spread
compares with an average of 7.26 percentage points for junk bonds,
Bank of America Merrill Lynch indexes show. The cost to protect $10
million of BP debt for a year with credit-default swaps almost doubled
to $512,000, according to CMA DataVision. It was $29,000 on April 30.

“That’s just pure out panic,” said Michael Donelan, who oversees $3.5
billion of bonds at Ryan Labs Inc. in New York. “That’s like, ‘Get me
out of here now.’ What the market is pricing in now is increased
regulatory oversight and heavy, heavy punitive damages.”

BP share price data Bloomberg

52-Wk High (04/21/10)658.200   
52-Wk Low (06/09/10)380.500

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Rolling Sushi With Nobu WSJ
Food, Climate & Agriculture

The reverence with which his black-clad entourage treat Nobu-san give
him the air of a superstar, and in restaurant terms, at least, he is.
With 21 restaurants around the world, from New York to Capetown, his
celebrity patrons include Madonna, Gwyneth Paltrow, Kate Moss and
Harrison Ford.

Nobu-san's inventive interpretation of sushi -- and signature dishes
such as black cod with miso sauce and yellowtail jalapeno -- were
instant hits.


Years Ago, I took my Mother, Nishet, Aysha and Layla for I think
Aysha's Birthday to Nobu in London. Aysha must have been turning 4 and
she enjoyed the Food in a way that just flabbergasted me. I still
recall that Meal. It was a very special Evening.

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For Sale: Gucci, Prada and Chanel, Never Worn WSJ
Retail & Manufacturing

Meet Patricia Whitcraft, a Lexington, Ky.,-based socialite whose
closets are full of unworn Chanel frocks. At her Malibu vacation
house, shelves hold an array of Manolo Blahnik heels with nary a scuff
mark on the soles. Gucci boots: ditto. She stares at a pair of
Valentino handbags. "I bought them both the same day and never used
them," she says.

Ms. Whitcraft recently decided to shed many of her unworn or barely
worn pieces—errors that have nagged at her. She sought out Christos
Garkinos, co-owner of Decadestwo, a designer consignment business that
includes a shop in Los Angeles, and invited him to the Malibu vacation
house she shares with her boyfriend. "I'm not looking for the money,"
she said of the clothing she planned to sell. "It's just to put it
back in circulation."

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This Shoe Had Prada Beat by 5,500 Years NYT

The perfectly preserved 5,500 year old shoe that was discovered in a
cave in Armenia. Perfectly preserved under layers of sheep dung (who
needs cedar closets?), the shoe, made of cowhide and tanned with oil
from a plant or vegetable, is about 5,500 years old, older than
Stonehenge and the Egyptian pyramids, scientists say. Leather laces
crisscross through numerous leather eyelets, and it was worn on the
right foot; there is no word on the left shoe.

read more

Live Crude Oil chart 74.61 Last
Minerals, Oil & Energy

Futures for July delivery advanced $2.39, or 3.3%, to settle at $74.38
a barrel on the New York Mercantile Exchange. That was the highest
one-day advance for a most-active contract since May 27, when oil
rallied 4.3%.Prices earlier hit an intraday high of $74.99, according
to FactSet Research.

read more

Sugar July 2010 INO

Contract High    25.03 Contract High Date    2010-02-03
Contract Low    11.89 Contract Low Date    2008-10-24


Looks like a Triple Bottom to me.

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China Exports Jump 48.5% as Europe Crisis Yet to Bite Bloomberg

China’s exports  jumped 48.5 percent in May from a year earlier, the
biggest gain in more than six years, indicating that Europe’s
sovereign-debt crisis has yet to pose a restraint on the world’s
fastest-growing major economy.

The increase, announced on the customs bureau’s website today,
surpassed all 32 estimates in a Bloomberg News survey of economists.
Imports rose 48.3 percent, leaving a trade surplus of $19.53 billion.

Today’s data may prove only a temporary boon after the International
Monetary Fund warned yesterday that global economic risks have “risen
significantly” and Europe’s woes could disrupt global trade. China has
so far retained a crisis policy of pegging the yuan to the dollar,
resulting in a 20 percent gain against the euro this year that will
make exports to that region less competitive with rivals such as South

Today’s export number was flattered by the comparison with May 2009,
when shipments fell by a record 26.4 percent. Exports rose to $131.76
billion last month, the highest value since September 2008, and
imports totaled $112.23 billion. The trade surplus was the biggest in
seven months.Shipments to the European Union jumped 50 percent from a
year earlier, compared with 29 percent in April. Those to the U.S.
climbed 44 percent, up from 19 percent. Gains against the euro may
hurt China’s shipments in three months’ time, Lu estimated. South
Korea, one of China’s competitors in global trade, may already be
benefiting from the won’s smaller 10 percent appreciation.

“Exports to Europe, China’s No. 1 market, may decelerate to
single-digit growth later this year if the government maintains the
yuan peg,” Lu said. Such a pace would compare with the 28 percent
increase in shipments to the European Union in April from a year

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What’s driving Africa’s growth McKinsey Quarterly

Africa’s economic pulse has quickened, infusing the continent with a
new commercial vibrancy. Real GDP rose by 4.9 percent a year from 2000
through 2008, more than twice its pace in the 1980s and ’90s.
Telecommunications, banking, and retailing are flourishing.
Construction is booming. Private-investment inflows are surging.

To be sure, many of Africa’s 50-plus individual economies face serious
challenges, including poverty, disease, and high infant mortality. Yet
Africa’s collective GDP, at $1.6 trillion in 2008, is now roughly
equal to Brazil’s or Russia’s, and the continent is among the world’s
most rapidly growing economic regions. This acceleration is a sign of
hard-earned progress and promise.

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Africa’s Growth Quickens; Prospects ‘Strong,’ McKinsey Says Bloomberg

About half of Africa’s one billion people will live in cities by 2030
from about 40 percent now, McKinsey said in its quarterly report on
its website. The continent’s top 18 cities will have combined spending
power of $1.3 trillion by that time, it said.

“The rate of return on foreign investment is higher in Africa than in
any other developing region,” McKinsey said. “It’s time for global
executives and investors to pay heed.”

Gross domestic product excluding the effects of inflation expanded by
4.9 percent a year from 2000 through 2008, more than twice the pace of
the 1980s and 1990s, it said.

Natural resources and the related government spending they financed
generated 32 percent of the continent’s economic growth in the eight
years to 2008, McKinsey said. The remaining two- thirds came from
other industries, including wholesale and retail, transportation,
telecommunications and manufacturing.Foreign direct investment into
Africa rose to $62 billion in 2008 from $9 billion in 2000, McKinsey
said, with selling of state assets contributing to the increase.
Nigeria sold more than 116 state-owned businesses to investors between
1999 and 2006, it said.


A Tipping Point is to be discerned.

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South Africa All share Index Bloomberg Visual -3.67% 2010
World Of Finance

% Change2.426


Had been overdue a rebound after a relentless Sell off over the
previous 5 days.

read more

MTN Chief Nhleko Ends Orascom Talks in Fourth Aborted Deal Bloomberg [Its a Serial Habit]
Information & Communication Technology

MTN Group Ltd. Chief Executive Officer Phuthuma Nhleko  failed to
close his fourth deal in two years, frustrating the South African
company’s ambitions of entering new markets to secure sales growth.

MTN, Africa’s largest mobile-phone company, yesterday said it ended
talks with Weather Investments S.p.A to buy $10 billion of assets of
Orascom Telecom Holding SAE. The inability to complete the transaction
caps more than 24 months during which Johannesburg-based MTN sought
purchases to offset increasing competition and price-regulation
pressures at home.


Nhleko, 50, who has said he will leave the company in March after eight years.

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Bharti keeps open mind over Africa strategy Reuters
Information & Communication Technology

Bharti Airtel will offer affordable rates in Africa to boost usage but
has no plan to launch a price war, Manoj Kohli, chief executive of the
group's international business, said in an interview following the
purchase of the African assets of Kuwait's Zain.

"We are not going with a static mind that 'okay, we need to copy
India.' That's not the objective," Kohli told Reuters.

Monthly revenue per user on the continent averages $8, compared with
$5 in India, according to brokerage Ambit Capital, while African
customers use their phones 100 minutes per month, versus 450 in India.

Bharti will make Nairobi its headquarters in Africa and Kohli will
leave for the Kenyan capital on Friday to manage the firm's operations
in the continent. He also hopes to indulge in his penchant for
mountain climbing.

"I'll definitely climb Kilimanjaro," Kohli said.

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Magical Thinking: A Secret Edge for South Africa at the World Cup? WSJ

JOHANNESBURG—As the second-lowest ranked team in the World Cup
competition, South Africa is expected to lose its opening match Friday
against Mexico. But to ensure victory, Michael Mvakali recommends a
simple fix: a concoction of plants and animal limbs.

"You use the horse's foot and the ostrich leg, you mix it with some
herbs and you put it on the players, on their knees and their legs,
and when they kick, even the goalkeeper can't get hold of that ball,"
said Mr. Mvakali, a practitioner of traditional magic. While he hasn't
provided services to the national team, he says he has devised potions
that helped other soccer players.

Two sangoma traditional healers.


Well its going to have to be some strong Magic if the Boys are going
to get close.

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Somali Soccer Fans Go Underground WSJ

Somalia—World Cup madness has come to this troubled nation, creating a
dangerous cat-and-mouse game between fans eager to watch televised
soccer matches and Islamic militants determined to stop them.

The militia group al Shabaab, which controls most of south and central
Somalia, has declared the World Cup un-Islamic and banned watching the
games on television. By al Shabaab's logic, the World Cup interferes
with the militant group's "jihad," to overthrow the government,
because young Somalis are too busy watching the games to fight on
their behalf. While the group hasn't yet laid out specific
consequences for those defying the ban, the militants have been known
to behead or amputate limbs of people who oppose them.

The only public place to watch games safely is at Dhamuke Cinema, part
of a small patch of government-controlled territory in the capital

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Biden tells Kenyans Reuters
Law & Politics

Biden recognised the burden of being in "a rough neighbourhood", a
reference to conflict-ridden neighbours Sudan and Somalia. His warning
comes as Kenyans prepare to vote in a referendum on Aug. 4 on whether
to adopt a new constitution. "As you prepare to write a new history
for your nation, resist those who try and divide you based on
ethnicity, or religion, or region and above all, fear," Biden said,
referring to a new constitution meant to reduce chances of conflict by
curbing presidential powers and introducing other reforms.

"Fear is a tool as old as mankind and it has been used with great
effect in this country in the past. For too long, opportunistic
politicians have created an all or nothing system."

The U.S. vice president said, “…a new constitution will accelerate
reforms...reforms will bring more foreign investments into the
country. The power to bring about change in Kenya rests with its


I tend to the view that the Indian Ocean is the New Theatre in the
c21st and hence Kenya's centrality for US Power Projection, into the
Hinterland and out to Sea.

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Kenya to Auction Treasury Bonds Worth 7.5 Billion Shillings 25 Year Bloomberg
Kenyan Bonds - Long Term

Kenya will auction a 25-year treasury bonds worth 7.5 billion
shillings ($91.7 million) on June 23, central bank of Kenya said today
in a statement in Nairobi-based Daily Nation.

The fixed coupon bond pegged at a rate of 11.25 percent will be sold
between today and June 22 in bundles of 50,000 shillings, with no
single investor being allowed to buy bonds worth more than 10 million
shillings, the central bank said.


And thats a First and speaks to the Absolute Inflexion in the Bond Market.

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Kenya Cuts 3G-Phone License Fees to Boost Competition Bloomberg
Information & Communication Technology

Kenya reduced its license fees for third-generation phone services by
60 percent to increase competition in the industry, Communications
Commission of Kenya Director-General Charles Njoroge said.

The permits will cost $10 million, compared with $25 million before,
Njoroge said in an interview broadcast on Kenya Television Network
today in the capital, Nairobi.


Will the CCK be cutting Safaricom a cheque for the Difference?

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by Aly Khan Satchu (www.rich.co.ke)
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June 2010

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