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Chronology
Business
USA

Warren Buffett, a man who carries in his walletr the GDP of sub-Saharan Africa, is 81 years old. Who will run his Berkshire Hathaway firm when he buys his way into heaven? That’s the question currently obsessing Wall Street. By RICHARD POPLAK

What will happen to Berkshire Hathaway, the $66-billion hedge fund, when its famous CEO shuffles off this mortal coil? Everyone loves Warren Buffett. He’s President Barack Obama’s favourite businessman, having backed his tax-the-rich scheme by insisting the wealthy pay their share. The Buffmeister is the anti-Steve Jobs, trumping Trump with his avuncular bearing and his old-school gentility. “If only there were more like him” is a wish that steadily morphs into a necessity when the size of the Berkshire Hathaway portfolio is considered. Running 66 large is, in Spiderman parlance, both immense power and immense responsibility. Who is up to… More

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Kenya

1Time’s new route to Mombasa, Kenya is an exciting expansion of its small but growing African network. It wants to get bigger, and – with other low cost airlines – make Africa’s exorbitant airfares a little cheaper. But it’s expanded just about as far as the continent’s governments will let it. By SIMON ALLISON.

Africa is an expensive place to fly. From Johannesburg, it costs about as much to get to Kenya as it does to London, and if you want to go somewhere even slightly more obscure – Accra, perhaps, or Lagos – it will be significantly more. The low fares revolution has not arrived in Africa yet, and business and tourism are suffering as a result. Which is why 1Time’s announcement of their new route between Johannesburg and Mombasa, Kenya’s second city, is good news for the continent. 1Time is well established in South Africa, and it’s the only low fares airline… More

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South Africa

The Economic and Business Outlook for South Africa 2012 is out. It is compiled by Business Unity South Africa and is meant to represent what Big Business feels about our economy. Well, the feelings aren’t particularly good. The odds are stacked too mightily against good growth. By SIPHO HLONGWANE.

Nearly everyone who has any sort of say in the matter has watered down the economic growth prospects of South Africa for next year. On Monday, it was the turn of Business Unity South Africa (Busa). The deputy CEO Raymond Parsons presented the Busa Economic and Business Outlook report to the media, and wasn’t a bucket of smiles doing it either. “The global economy has entered a dangerous new phase,” the report warns. “Global economic activity has weakened further and become more uneven, confidence has dropped and downside risks are increasing. While further bail out arrangements have been proposed for… More

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USA

A careful look around shows that business people keep searching out new ways to do their work – melding together a careful attention to the value of providing good service with the liberating power of IT and the internet. It has always been predicted, and now, more and more it seems to be coming true. BY J BROOKS SPECTOR.

For many commentators it remains easy to contemplate the impending, apocalyptic collapse of America: its way of life, its economy and its overstretched, compromise-destroying, confrontational politics – the commentariat's equivalent of shooting fish in a barrel. Finding the seeds of destruction of the country in the nature of its global military commitments (as well as the cost of these) is virtually a cottage industry in the media – and especially in the babble (and babel) of the unending churn of talk news programmes on radio and cable television news programs. Each of these is appealing to a particular political persuasion… More

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USA

Last week, the NYPD descended on Zuccotti Park in downtown Manhattan with an eviction notice for the Occupy Wall Street protesters. In the two months since the first activists set up camp, “the movement” has gone global and succeeded beyond its founders’ wildest dreams. So where to now? And, if nowhere, what’s been achieved? By KEVIN BLOOM.

At around 01:00 EST on Tuesday 15 November, a few hours after New York City’s mayor Michael Bloomberg had issued a top-secret directive to disassemble the tented village that had become Occupy Wall Street’s headquarters in Zuccotti Park, the movement’s co-founder received an email. Kalle Lasn, the 69-year-old creator of the anti-consumerist magazine Adbusters, had been lying in bed reading a book when he was interrupted by a phone call informing him that hundreds of NYPD officers had descended on the park with an eviction notice. He fired up his laptop. The email was from Micah White, senior editor at… More

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Africa

American magazine Forbes is famous for its Rich Lists, profiling the world’s wealthiest individuals. Now it’s finally wised up to the fact that some Africans have serious bucks too. By REBECCA DAVIS.

This week Forbes brought out its first-ever list of the 40 Richest People in Africa, justifying it as “testament to the growing global importance of the continent”. The magazine explains that the list was worked out by using stock prices and exchange rates as of 2 November 2011. For privately-held businesses the methodology is slightly vaguer: it “couple(s) estimates of revenues or profits with prevailing price-to-sales or price-to-earnings ratios for similar public companies”. The criterion for ‘African’ is that the individuals must currently be citizens of African countries, which excludes wealthy African-born people who have subsequently emigrated. There are five… More

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South Africa

After years of bad news at Transnet, we’re getting a flicker of some good news from Transnet Freight Rail. At a press conference on Tuesday, TFR chief executive Siyabonga Gama announced the company would be implementing scheduled rail links. The successful implementation will be one step closer to an efficient railway service and, hopefully, fewer trucks on our roads. By SIPHO HLONGWANE.

This week, Transnet Freight Rail (a division of Transnet Limited, the parastatal) began rolling out a scheduled rail service. The schedules specify the times and path each train will take at each node on a specified rail path. Previously, trains waited until they were fully loaded before departing. The lines in question are the TCM coal line from Uitkyk, Pullenhope and Umlabu to Komatipoort on the Mozambique border, the rock phosphate and magnetite lines from Phalaborwa to Richards Bay and the Majuba coal line from Weldedag to Palmford in Mpumalanga. TFR plans to roll out schedules to general cargo by… More

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Oman

President Jacob Zuma continued his tour of the Arabian Gulf on Tuesday. He is expected to sign a "Supplementary Protocol amending the Agreement for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income” in Oman – the so-called “sleepy Sultanate”. By KHADIJA PATEL.

On Saturday, Zuma was in the Democratic Republic of Congo where he witnessed the signing the Memorandum of Understanding on the Grand Inga Project, an ambitious hydropower project that may well revolutionise energy supply on the African continent. “It is a day to prove Afro-optimists right and a day of celebration for South Africa too,” Zuma declared before hopping on a plane for the Arabian Gulf. In the Gulf, Zuma arrived with the noble intention of sourcing new investment opportunities for South African capital. Visiting the United Arab Emirates and Oman, Zuma has so far focussed on clearing the path… More

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South Africa

No cabinet minister has disagreed with the National Planning Commission’s National Development Plan. On the contrary, the presidency has accepted it, and on Monday morning, the finance minister cited it approvingly in his speech at the Business Unity South Africa annual general meeting. By SIPHO HLONGWANE.

Our finance minister isn’t the most electrifying of speakers. A charismatic and passionate minister would elicit more alarm than comfort perhaps, but there are moments when one hopes for a bit of fireworks. Pravin Gordhan’s speech to the annual general meeting of Busa should have been one of those moments. Frankly, business in South Africa needs a little kick in the teeth. As a lobby group, it isn’t presenting a clear, united front. Instead, we have fragmentation and in-fighting. Only recently the Black Management Forum split from Busa, and was quickly followed by other black business organisations. We now have… More

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South Africa

The fine balance of the rights of landlords versus the rights of tenants is one of the big debates of our time. Or it certainly should be. It relates to how we balance the rights of rich and poor, and that old problem of property: when is a right limited and when is it not. But it must also be about wealth creation, the idea that we cannot just sit where we are now and leave it at that. By STEPHEN GROOTES.

We shouldn’t want to simply cut the pie thinner and thinner; we should want to make the pie bigger. Two weeks ago I wrote a highly opinionated report (as is my job) about a case referred to as Maphango in the Constitutional Court. At issue is a property firm that cancelled the lease of several tenants in an inner city block of flats, so that it could hike the rent. I suggested (again) that it was time to push the balance back towards landlords, partly because if we didn’t, no landlord would ever invest in low-income housing. Kate Tissington, from… More

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South Africa

The Development Bank of Southern Africa releases a “Development Report” each year, outlining what South Africa needs to do to become a successful developmental state. On Monday the DBSA released the 2011 report, which doesn’t make for happy reading, especially on political governance and the economy. By SIPHO HLONGWANE.

On Monday, divisional executive for planning and editor of the 2011 Development Report, Sinazo Sibisi, delivered the report to the National Press Club in Pretoria. Alongside her was group executive of the development planning division, Ravi Naidoo, and what they had to say was pretty cheerless. What was depressing was the sense of here we go again: another report telling us what is wrong with the country and what we should do about it, but not much more than that. The report is supposed to advise the National Planning Commission, the ministry of finance, the economic development ministry and others.… More

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South Africa

Hey, someone had to write that headline. The De Beers Diamond Group will be bought by Anglo American for $5.1 billion. The Oppenheimer family is cashing out. Diamonds may be forever, but selling them, it seems, has a best-buy date. Not a desperately serious look by RICHARD POPLAK.

Sir Ernest Oppenheimer was, by all accounts, a man not to be messed with. He was born in Freiberg, Germany, to a cigar merchant, and found himself in London at the age of 17 working in a diamond brokerage house. Dunkelsbuhler & Company liked what they saw in the boy, who was a hard worker and a pugilist by nature. They sent him to South Africa, to the embankments of the Kimberley Hole to represent them. Sadly for them, he wasn’t interested in representing anyone but himself. He looked around, and set off to find the biggest guy in town… More

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South Africa

On Thursday the Constitutional Court heard a case involving this balance. Slightly surprisingly, several of the judges appeared to be standing up for the rights of the landlord. Yes really. STEPHEN GROOTES was in the public gallery.

We at the Daily Maverick have a proud interest in the creation of capital. We like to discuss, think about and examine how wealth can be created. We believe, strongly, that part of the foundation to this process is property rights. This is why we have such a strong interest in the balance between the rights of landlords, and the rights of tenants. I, personally, believe that this balance is currently heavily tilted towards tenants, in a way that is destructive to the rental market. As a result, there is not enough low-cost housing. It's a case that seems to… More

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USA

You know the feeling. There was a wad of R100 notes in your wallet, and you don’t know where it’s gone. Could you possibly have dropped that much at ZAR last night? Or is the maid up to something fishy? Now, picture Jon Corzine’s pain. He’s mislaid six hundred million large, and the US government is coming to find it. By RICHARD POPLAK.

The vampire squid attached to the face of humanity is happily sucking away. How else to explain the current predicament of Jon S Corzine, one-time CEO of Goldman Sachs—the aforementioned vampire squid, as noted in Matt Taibini’s now famous Rolling Stone piece—having landed himself in a pile of fiduciary trouble. Corzine is as connected as it gets. Born in 1947, he came up through the ranks of the financial industry during the seventies, churned out as he was from University of Chicago Booth School of Business, with one of those MBAs that would one day go on to bankrupt America.… More

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Mozambique

SABMiller is hoping to attract aspirant consumers, with its new cassava beer, Impala Cervejas. It's brewed in Mozambique, and currently available only in the north of that country, but will potentially be rolled out elsewhere on the continent if it proves a success. By THERESA MALLINSON.

SABMiller on Tuesday launched the first cassava-based beer in Africa. (Well, it's the first commercially-produced such beer; Africans have been using the plant to make home brew for generations). The launch took place in Johannesburg, although the beer will initially be marketed in northern Mozambique, where it is produced by SABMiller subsidiary, Cervejas de Mocambique. Although cassava is a staple food in some regions of Africa, including Mozambique, according to SABMiller its new project will not lead to food shortages. The new beer is called Impala Cervejas, and according to BBC journalist Milton Nkosi, tastes “somewhat bitter, somewhat tangy, not… More

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South Africa

There has been much discussion, thought and pontificating about the impact, importance and effect of Julius Malema's longish-march. But there hasn't been nearly as much examination of the other side of the coin. How did business do out of the march? Is its politicking getting any better? And what lessons has it learnt so far? It's time for a re-examination. By STEPHEN GROOTES.

There's been plenty reflection on how, in the end, Malema's march and all the show came to nothing. Just two days later, the headlines were full of the usual Malema fare – this time the trip to Mauritius and claims of an "imminent" arrest. Some of the more conspiratorial among us may suggest that there was a group of people who simply thought his week had been too good, and perhaps it was time to shoot a little hole in his balloon. At the beginning of the year, I felt the need to write an open letter to Business Leadership… More

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World

The response to Steven Paul Jobs passing, on 5 October was not measured. The encomiums flowed like, well, encomiums usually do in our culture. But in many important respects, Steve Jobs deserved the accolades. He was a lousy person who shepherded amazing technological products into being. Steve Jobs, the just-released biography by Walter Isaacson, will remain the definitive account of his life for decades to come. By RICHARD POPLAK.

Last week, I paid a visit to iTunes, via the “Store” function on my iBooks app. I searched “Steve Jobs”, was offered several options, and pre-ordered his biography. A day later, I was flipping through the digital pages, virtually highlighting passages, double-clicking the home button when my email bleeped an alert. This represents a once in a lifetime reading experience, and it should not pass unnoticed. Firstly, though, some housekeeping: Steve Jobs did not “invent” the Apple II – the computer that revolutionised personal computing. Nor was he responsible for engineering or conceptualising its clunky predecessor, Apple I. Both those… More

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Sweden

Facebook announced on Thursday plans to locate its next batch of server farms in a town on the edge of the Arctic Circle. The cold has its uses, it seems. By SIPHO HLONGWANE.

The small Swedish hamlet of Luleå, which is near the Arctic Circle, will be home to Facebook’s newest server farms. “After a rigorous review process of sites across Europe, we concluded that Luleå offered the best package of resources, including a suitable climate for environmental cooling (and) clean power resources,” the company said in a statement. The location was chosen because of a constant supply of cooling agent at these farms. The town is not only far enough north to be cold most of the year, it sits on the banks of a large river and an almost unending supply… More

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US

We rejoin our ongoing drama, The Patent Wars in the consumer electronics space, with doddering giant Microsoft revealing that it is far from being out of top-spot contention. Microsoft signed a patent agreement with Compal, which means that companies accounting for half of all Android devices on the market have entered into patent licence agreements with it. How long before we see a vicious war erupt between Apple and Microsoft? By SIPHO HLONGWANE.

The announcement would have been missed by many, but its impact is potentially far-ranging in the consumer electronics (division: mobile devices) space. Microsoft executive vice president and general counsel Brad Smith and deputy general counsel Horacio Gutierrez posted a blog post in which they announced that Microsoft had reached a patent licensing deal with Compal, a company that makes third-party smartphones and tablet devices. “Today Microsoft announced its tenth license agreement providing coverage under our patent portfolio for Android mobile phones and tablets. Today's agreement is with Compal, one of the world’s largest Original Design Manufacturers, or ODM. Compal is based in… More

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World

It’s the fastest growing of the planet’s giant industries, a trillion-plus dollar business that reaches three out of every four people alive, and a technology that’s changed the way we work, play and communicate. Now, based on the findings of an 18-year study that examined over 350,000 subjects, it appears that the core product of this industry – your own mobile phone – is not going to kill you. By KEVIN BLOOM.

“Most people have this image in their heads of tobacco executives jet-setting around the world on private planes, eating foie gras as they count their money. Not me. I like to ride with the people. Know your clients. My people cram themselves into a tiny seat, pop a Xanex, and dream of the moment when they can stuff their face with fresh tobacco. If I can convince just one of these kids to pick up smoking, I've paid for my flight. Round trip!” Thus spoke Nick Naylor, Big Tobacco’s chief spokesman in the movie Thank You for Smoking, played by… More

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South Africa

Research in Motion has recently announced a new direction for its smartphones and tablet devices that will place it closer to its rivals in terms of integration between the two. Much like the way Apple and Google operating systems work, the BlackBerry smartphones and tablets of the future will share a single OS. SIPHO HLONGWANE spoke to the managing director for Benelux, Central Europe and Africa at RIM as well as the director for product management in Africa about the new developments.

At the BlackBerry 2011 Developers Conference (or DevCon), RIM co-CEO and founder Mike Lazaradis unveiled BBX, a new operating system that will run on BlackBerry smartphones and the BlackBerry Playbook as soon as next year. BBX combines elements of QNX, a RIM-acquired operating system used primarily in the embedded systems market, and the old BlackBerry OS. The new OS packs a hefty security punch: it has support for Security Certification EAL4+, IEE POSIX certification and IEC 61508 Safety (SIL3). It will also feature a major improvement in the user experience (UX) in the less boring areas, like support 2D and… More

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The boardroom

Why are we using remuneration systems that seriously should have gone out of style with the end of the industrial age, or that are commonplace in sweat shops in economies that have no respect for human rights? With research showing that more money doesn’t bring better performance, isn’t it time we stopped handling talent like workhorses and started treating them like humans? By DAVE DUARTE and MANDY DE WAAL.


Conventional business wisdom told the world that if you owned a mega widget factory and had a vast sea of workers churning out widgets, the carrot and stick approach worked really well. Human resource management was all about getting the balance between fear and reward just right to ensure the production line ran smoothly, quotas were being met and Avarice Inc. was making and selling enough thingamajigs to ensure good shareholder returns. Minions, who performed well, showed incredible loyalty and stuck with the corporation or family of board members, climbed the ranks and got more money than the worker drones,… More

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The interwebs

The world’s largest book retailer offers royalties to authors of self-published digital editions that traditional publishers can’t hope to match. But this is not the real reason that Amazon may be about to upend the publishing game as we know it. With 122 titles set for release this season, Amazon’s own imprints have the major New York houses in a panic. Who will the upheaval benefit? By KEVIN BLOOM.  

In August this year, an award-winning Hawaiian author of three internationally bestselling novels posted an item to her blog that shook the upper echelons of New York publishing to its core. It had been four weeks since her last posting, wrote Kiana Davenport, and in that time she had learned first-hand how deeply the digital revolution could affect her life. By way of explanation, she referred to a decision she’d made eight months previously, a course of action taken “in innocence and exuberance, and [out of] a need for income,” the consequences of which had ruined her credibility among book… More

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South Africa

On Friday, the Competition Tribunal disallowed a proposed merger between the US-based Pioneer Hi-Bred International with Pannar Seed of South Africa. The merger would reduce the number of maize suppliers in the country, the commission said, and thus the prospects of maize prices going up were increased. By SIPHO HLONGWANE.

According to reports, the tribunal’s decision not to allow the two seed companies to merge is rooted on the fact that fewer players in the market would mean that prices would likely go up. “In terms of the proposed tie-up, Pioneer would acquire control of Pannar. They are the second and third largest maize seed producers and suppliers in SA, respectively,” I-Net Bridge said. “The only other significant player in this market is Monsanto SA. Thus the proposed merger would reduce the number of players in this market from three to two, the tribunal noted.” In December last year, the… More

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Johannesburg

The Occupy JSE protest on Saturday proved only that the white middle class in SA has no stomach (or, possibly, no reason) for protest, and that black activists have more immediate concerns than aping a global trend. There'll be mass demonstrations in South Africa, all right, and soon, but they'll be in the home-grown mould and centred around local issues. BY OSIAME MOLEFE and PHILLIP DE WET.

The Occupy JSE protest on Saturday would have been an unmitigated disaster had it not been for the support of the black left, which had the most dubious of welcomes. As it turned out the event was only mildly embarrassing for those at its heart, neither a good reflection of what is going on elsewhere in the world, nor a preview of what Johannesburg and Pretoria can expect later this month. In total, over two days, Occupy JSE could boast fewer than 150 participants, and that mostly crammed into five hours; the "occupation" never made it past sunset on Sunday,… More

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World

New York bankers dismiss the Occupy Wall Street protests as the doings of out-of-work hippies. But on 15 October, as the campaign spread to 951 cities in 82 countries, the moneyed “1%” may be watching their flat-screen TVs in silent panic. As protests turned violent in Rome, a global manifesto endorsed by the likes of Noam Chomsky is lending the movement some long-awaited coherence. By KEVIN BLOOM. 

On Saturday 15 October, as the Occupy Wall Street protests go global in what’s being called an “International Day of Action”, the movement’s website carries its concerns via a piece of long-form journalism that was the envy of non-fiction writers everywhere when published in July 2009. The piece was written by Matt Taibbi, a 40-year-old American polemical journalist and columnist, and became instantly famous for one inspired line: “[Goldman Sachs] is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money”. It’s this line that appears on occupywallstreet.org, beneath… More

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USA, Canada

In what may be the first major natural resources buy for a Chinese parastatal in North America, Sinopec is buying Canadian oil and gas explorer Daylight Energy Ltd. This could herald the arrival of the Chinese in the North American commodities market in a big way. By RICHARD POPLAK.

Markets haven’t been looking good of late, which is probably not news to anyone who regularly reads Daily Maverick. That the second major slowdown in four years is now affecting energy stocks across the globe is also no surprise.  Chinese buyers have been taking advantage of this, and where the US and Canada might once have put barriers to those buyers trying to purchase commodities companies outright, expediency currently makes that impossible. So welcome, then, Sinopec International Petroleum Exploration and Production Corp (SIPC), a subsidiary of China Petrochemical Corp, or Sinopec. The company agreed to purchase the majority of Daylight… More

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USA

Not since Rudolph Giuliani brought down Michael Milken and Ivan Boesky has the world seen an insider trading scandal this big. But 22 years later, with hedge fund tycoons among the most powerful players in global finance, the scale of this type of fraud has only gotten exponentially larger. Who is Raj Rajaratnam and what did he do? By KEVIN BLOOM.

In mid-October 2009, Raj Rajaratnam, a Sri Lankan who’d started out as a technology analyst and had risen to manage his own New York-based hedge fund, was arrested in his plush Manhattan duplex. He and five others were accused by the United States Justice Department and the Securities and Exchange Commission of relying on a network of corporate insiders to make tens of millions in profits between the years 2006 and 2009. Bail for Rajaratnam was set at $100 million, a sum that he happily paid because, at the time, he was the richest Sri Lankan-born individual in the world… More

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USA

Much to the chagrin of politicians on both sides of the political spectrum, the campaign to Occupy Wall Street is gaining momentum by the day. The weekend saw the appearance at Manhattan’s Zuccotti Park of one of the world’s most famous philosophers, and with long think-pieces now appearing in sober mainstream newspapers across the nation, the movement looks set to kick up yet another gear. By KEVIN BLOOM.

In July 2010, The Telegraph of the UK named Slavoj Zizek the “world’s hippest philosopher”. It was a moniker, no doubt, that only increased the animosity directed his way by other first-tier philosophers – most of whom have public personas that are irredeemably the opposite of hip – but it’s highly unlikely that Zizek gave a damn. The 61-year-old Slovenian, president of the Society for Theoretical Analysis of Ljubljana and international director of the Birkbeck Institute of Humanities in London, had long since stopped caring what his contemporaries thought of him. Why should their opinions count? He had by then… More

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World

After two successive days of either broken or sluggish BlackBerry Internet Service across three continents, have Research In Motion finally made the blunder that will cost them their last remaining powerful asset: user loyalty? By SIPHO HLONGWANE.

How far we’ve come since the election of Barack Obama as the president of the United States of America. Or rather, how far down Research in Motion has fallen since those days. Remember the big faff made about Obama’s BlackBerry? The US Secret Service wanted to confiscate the phone, deeming it to be a potential point of security breach that they just couldn’t risk. Obama told his bodyguards to take a chill pill, the White House arranged for extra security on that particular mobile and BlackBerry were positively glowing with smugness. Analysts praised the company’s security. The traffic of BlackBerry… More

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