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 Issue: 14 February 2011 20:00 		[Alt-Text]
US debt near the current limit

Obama is looking to reduce the government fiscal deficits. The deficit for the current fiscal year is set to be at a record $1,6 trillion up from $1,4 trillion. The Obama administration is hoping to reduce this to below billion dollar deficits in future years, but this is never easy.

The chart below reflects the annual fiscal deficits (a few years at the turn of the century posted small fiscal surpluses) plus the current forecast to 2020.


Source: US Treasury

As cumulative debt increases so does the debt bill. According to the 2011 budget, the interest expense is set to reach $554 billion in 2015.

Importantly fiscal deficits must be met from the US Treasury issuing more and more debt. The government is allowed to increase its debt level to the maximum agreed ceiling. The US government must negotiate with Congress to set the maximum debt ceiling from time to time.

Over the years this ceiling has been ratcheted upwards. The debt ceiling is currently at $14,294 trillion – set on the 12 February 2010. Actual debt is now close to $14,1 trillion and so the current limit is due to be reached in the next few months. The debt level was at $10,6 billion when Obama took office.

See chart below of the growth in the US total public debt and the stepped up ceiling. In 10 years it has more than doubled from $6 billion.

Source: US Treasury

The US government understands that it has some challenges with respect to its debt including:

• Reliance on foreign ownership of its Treasure Debt – largely the Chinese government
• A large portion of the outstanding debt matures in the years 2012 to 2015, which needs to be refinanced.

These are some of the fundamental issues that investors need to be aware of when they invest into government bonds. Seed's view is that global government bonds are generally on the expensive side and subject to capital loss as interest rates move up.

Kind regards

Ian de Lange
info@seedinvestments.co.za
www.seedinvestments.co.za
021 9144 966

Mon, 14 Feb 2011
[IMAGE]
Adapt IT changed its financial year end to 30 June as of the previous year, (reporting for a 16-month period) therefore, the last reported comparable six-month period was to 31 August 2009. Revenue grew by 40% to R85.1 million, (R60.6 million) whilst profit from operations was 12% higher at  Full story
South African benchmark stocks booked their highest close in more than 2-1/2 years on Monday led by miners on firmer commodity prices.  Full story
South Africa's biggest property group Growthpoint and the government pension fund have paid $1.3 billion for the V&A Waterfront, one of the country's major tourist attractions.  Full story
(adds details about G20 meeting)  Full story
[IMAGE]
South African blue-chip stocks booked their highest close in more than 2-1/2 years on Monday, helped by a rise in resource-related. . .  Full story
[IMAGE]
Revenue rose to R178 million (R169.8 million) for the six months to 31 December 2010. Gross profit declined to R46.7 million. . .  Full story
[IMAGE]
Revenue declined to R378.7 million (R478.1 million). Net attributable profit decreased to R121.4 million (R167.7 million). In addition, headline earnings on. . .  Full story
[IMAGE]
South Africa's rand regained some ground against the dollar on Monday and should tread a fairly steady path in the run-up. . .  Full story
Trading Statistics
DateAdv.Decl.Unch.ActivesVolumeValueTradesOrders
14/02/201122512576426248,276,791R12,460,930,312997282430244
11/02/201121313878429349,020,176R15,095,429,4231153252424780
10/02/201111821792427360,218,925R17,171,176,0391386202389912
09/02/201114419485423311,874,190R14,978,748,5301294312258278
08/02/201116318278423344,019,210R18,948,931,1411116102314393
  
Major Moves Up
SharenameSaleMove% MoveVolume
1 WILDRNESS  5009021.95.%2200
2 CLIENTELE  109914415.08.%540
3 OANDO  347278.44.%4400
4 TRNSHEX  279197.31.%233522
5 ILIAD  860506.17.%91025
6 NUWORLD  28001505.66.%2000
7 ACUCAP  34001805.59.%26921
8 MRPRICE  59002955.26.%1848043
9 IPS  10455.05.%147010
10 MUSTEK  524224.38.%7700
11 VILLAGE  21594.37.%3250
12 LONMIN  217497493.57.%406336
13 GOLDONE  23783.49.%936664
14 CIPLAMED  745253.47.%1711476
15 IMPERIAL  111203573.32.%785881
16 LEWIS  73302303.24.%147613
17 ESORFRANK  19663.16.%35374
18 ARB  330103.13.%21390
19 HUDACO  87642643.11.%6759
20 WESIZWE  23773.04.%132761

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Major Moves Down
SharenameSaleMove% MoveVolume
1 VERIMARK  145-14-8.81.%125250
2 DELTA  930-70-7.00.%2405
3 WINHOLD  172-11-6.01.%228735
4 ONELOGIX  129-8-5.84.%4700
5 S-OCEAN  206-12-5.50.%690
6 METROFILE  191-9-4.50.%4808
7 BELL  1345-55-3.93.%23321
8 AMECOR  160-5-3.03.%44873
9 PARACON  167-5-2.91.%2048120
10 GBGOLD  1875-55-2.85.%1500
11 HCI  7800-195-2.44.%352138
12 CASHBIL  8690-209-2.35.%10618
13 ANOORAQ  1075-25-2.27.%1350
14 ELLIES   218-5-2.24.%24919
15 JASCO  132-3-2.22.%81327
16 URONE  4600-100-2.13.%61145
17 CAPITEC  16550-350-2.07.%79320
18 KELLY  430-9-2.05.%546
19 VIVIDEND  480-10-2.04.%8000
20 NASPERSN  38958-792-1.99.%1565441

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New Highs
SharenameSaleHighMove% MoveVolume
1 CLIENTELE  1099109914415.08.%540
2 KUMBAIO  47800483009001.92.%524445
3 BILLITON  29701298515011.72.%3485524
4 RICHEMONT  42264258501.20.%17312315
5 EXXARO  15850160001510.96.%657776
6 ARM   23371235872210.95.%1023061
7 ASSORE  21600218992000.93.%36351
8 ANGLO  39570401332700.69.%4072867
9 SABMILLER  2470025100-50-0.20.%2391573
10 SASOL  3770538799-545-1.42.%1548576

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New Lows
SharenameSaleLowMove% MoveVolume
1 BWI  1101000.159850
2 PPC  29182875180.62.%600990
3 CITYLDG  70406949530.76.%156800

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Spot Prices
NameTimeRPMove% Move
JSE Overall17:0033094.06139.730.42%
JSE Top 4017:0029922.75109.320.37%
JSE Gold17:002637.15-7.17-0.27%
JSE Financial17:0021482.9539.610.18%
JSE Industrial17:0032148.47159.450.50%
JSE Indust 2517:0026868.94129.350.48%
JSE Resource17:0061146.34277.860.46%
DJ Futures19:4012235.00-6.00-0.05%
DJ Ind19:4512263.88-9.38-0.08%
SP 50019:561330.791.640.12%
Nasdaq19:562817.387.940.28%
FTSE 10018:356060.09-2.81-0.05%
DAX19:007396.6325.430.34%
CAC4018:464096.62-16.10-0.39%
Nikkei08:2610725.54119.891.13%
Shanghai09:322898.9771.202.52%
Hang-Seng10:3223121.06292.141.28%
All Ords07:415023.4052.801.06%
NZSE 5006:263383.4716.030.48%
NameTimeRPMove% Move
Gold19:591364.657.590.56%
Gold/Rand20:009956.49105.761.07%
Gold/R kg20:0032010121700.68%
Silver19:5930.5120.61702.06%
Platinum19:581820.7515.750.87%
Palladium19:59829.5019.002.34%
R15716:067.81-.02-0.26%
R20416:068.41-.02-0.24%
Brent Crude19:56102.962.352.34%
Rand / Dollar19:597.29600.03600.50%
Rand / Pound19:5511.67630.06080.52%
Rand / Euro19:559.85430.01300.13%
Rand / NZD19:585.51620.02080.38%
Rand / AUD19:557.33650.04920.68%
Yen / Dollar19:5883.2300-0.2700-0.32%
Euro / Dollar19:550.74120.00210.28%
Dollar / Euro19:521.3484-0.0036-0.27%
Pound / Dollar19:550.6238-0.0010-0.16%

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Index Summary
Index NameRPMove% Move
Top 4029,922.75109.320.37%
Industrial32,148.47159.450.50%
Mid Cap41,470.15342.810.83%
Small Cap32,414.43116.100.36%
Resource 2061,146.34277.860.46%
Industrial 2526,868.94129.350.48%
Financial 158,144.738.830.11%
Financial & Ind. 3030,196.8496.930.32%
All Share33,094.06139.730.42%
Oil & Gas 28,581.15-411.84-1.42%
Mining 40,380.95292.190.73%
Gold Mining2,637.15-7.17-0.27%
Platinum Mining81.64-.91-1.10%
Oil & Gas Producers 15,367.56-221.43-1.42%
Basic Materials 33,862.87254.580.76%
Chemicals 13,522.8731.420.23%
Forestry & Paper 14,227.9576.690.54%
Industrial Metals 30,776.60503.891.66%
Industrials 28,787.64231.020.81%
General Industrials 78,910.51667.790.85%
Consumer Goods 27,149.2186.230.32%
Automobiles & Parts 2,830.57.000.00%
Household Goods159.0700.12%
Health Care 31,659.54193.260.61%
Beverages 84,404.59-170.86-0.20%
Food Producers 47,688.57-10.76-0.02%
Index NameRPMove% Move
Personal Goods 422.085.001.20%
Consumer Services 51,821.3650.330.10%
General Retailers 37,982.59821.082.21%
Travel & Leisure 4,047.9627.210.68%
Media 85,647.04-1694.69-1.94%
Support Services 2,559.8839.641.57%
Telecommunications 62,168.82531.820.86%
Financials 21,482.9539.610.18%
Banks 39,871.98-96.25-0.24%
Non-life Insurance 30,587.8197.000.32%
Life Insurance 16,197.1530.900.19%
General Financial 2,316.2015.250.66%
Technology 21,062.28-2.77-0.01%
SHARIAH TOP40 3,424.41190.55%
FTSE/JSE SHARIAH ALL3,470.31180.53%
COAL MINING22,355.441700.77%
FTSE JSE Fledgling 4,664.00160.34%
FTSE/JSE Alt X 1,102.24-3-0.30%
SA LISTED PROPERTY 366.751.08%
CAPPED PROPERTY 307.641.01%
RESOURCE 33,640.951530.46%
DIVIDEND PLUS167.6710.46%
FTSE/JSE RAFI 406,925.75270.39%
Capped Top 4015,444.58380.25%
Capped All Share16,585.76600.37%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
NEDNEDBANK GROUP LTDHOLD10 Feb
FSRFIRSTRAND LIMITEDBUY10 Feb
SBKSTANDARD BANK GROUP LIMIT...SELL10 Feb
AIPADCOCK INGRAM HLGS LDHOLD10 Feb
LHCLIFE HEALTHCARE GRP HLDG ...BUY10 Feb
Results Expected**
ExpectedCompany NameFin. Date
15 Feb 2011CLIENTELEDecember 2010 (Interim)
15 Feb 2011HULAMINDecember 2010 (Final)
15 Feb 2011HULAMINADecember 2010 (Final)
15 Feb 2011HULAMINBDecember 2010 (Final)
16 Feb 2011ABSADecember 2010 (Final)
Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
FIRSTRANDB-P11-02-0311-02-1811-02-28R 3.1355
CAPITAL11-02-0311-02-1811-02-28R 0.3178
REDEFINE11-02-0211-02-1811-02-28R 0.1500
HUDACO11-01-2811-03-0411-03-14R 2.3500
CBH11-01-2711-05-0611-05-16R 0.1110
Ex Div**
Share NameDec-DateLDTPay-DateAmount
WINHOLD10-11-2911-02-1111-02-21R 0.1000
TREMATON10-11-0911-02-1111-02-21R 0.0150
Upcoming AGMs**
CodeCompany NameDateStatus
SPPThe SPAR Group Ltd14/02/2011Confirmed
TBSTiger Brands Ltd15/02/2011Confirmed
CNDConduit Capital Ltd16/02/2011Confirmed
EOHEOH Holdings Ltd17/02/2011Unconfirmed
TFXTop Fix Holdings Ltd17/02/2011Confirmed
Stock Exchange News Service
DateTimeHeadline
14/02/201117:49 Adapt IT Group - Unaudited condensed interim consolidated group results
14/02/201117:22 Resilient Property Income Fund Limited - Dealing in securities
14/02/201117:04DGC - Digicore Holdings - Transactions in securities by directors and associates
14/02/201117:01 Nictus Limited - Nictus obtains Competition Commission approval for
14/02/201116:34 Top Fix Holdings Limited - Unaudited results for the 6 months ended 31
14/02/201116:32 Keaton Energy Holdings Limited - Keaton Energy to acquire export foothold
14/02/201116:31 Keaton Energy Holdings Limited - Keaton Energy to acquire 74% of Leeuw
14/02/201115:20 The SPAR Group Limited - Business Update
14/02/201115:12 Delta EMD Limited - Audited group results for the year ended 27 December
14/02/201115:00 Datatec Limited - Further Issue Of Shares
14/02/201114:41 Illovo Sugar Limited - Dealing in Securities
14/02/201113:07THEE - The Competition Commission - Commission submits its recommendation on
14/02/201112:45 Growthpoint Properties Limited - Acquisition of a 50% interest in the V&A
14/02/201112:24 BSI Steel Limited - Director`s dealings
14/02/201112:22 Freeworld Coatings Limited - Dealing in securities by directors
14/02/201111:50 The SPAR Group Limited - Report on proceedings at the annual general
14/02/201111:41 Finbond Group Limited - Share Dealings
14/02/201111:06 Murray & Roberts Holdings Limited - Resignation of executive director
14/02/201110:35TOPDWT - Deutsche Bank AG - Notice : Termination Of Listing - TOPDWT - Index
14/02/201110:30 IPSA Group Plc - Appointment of Non Executive Director
14/02/201110:00 Italtile Limited - Italtile Board
14/02/201109:18 Massmart Holdings Limited - Competition Commission Recommends
14/02/201108:37 Redefine Properties International Limited - Further Cautionary
14/02/201108:00 Group Five Limited - Unaudited interim group results for the six months
14/02/201107:52 Pinnacle Point Group Limited - Renewal of cautionary announcement -
14/02/201107:14 Gold One International Limited - Clarification of incorrect media
14/02/201107:05 BHP Billiton Plc - Transaction in shares

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