36 LOCAL THE STAR Monday, July 9, 2012

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Can YOU outsmart the expert? to phase out ALY KHAN’S STAR Fly540 by October PORTFOLIO

CENTRAL BANK WIZARDS STRIKE

HE Wizard of Oz is a 1939 American musical film produced by Metro-Goldwyn-Mayer. Its the story of a Kansas farm girl Dorothy Gale (Judy Garland), who is told of the mysterious Wizard of Oz in the Emerald City and sets off downT the yellow brick road to find him. After a series of adventures and eventual triumph, Dorothy returns from her adventures to the wizard’s chamber. Toto opens a curtain, revealing him to be an ordinary man (Frank Morgan) operating a console of wheels and levers while speaking into a microphone. There are many lessons in the c20th Hollywood fable key is the discovery that the wizard was not a real but a pretend one. That was Dorothy’s rite of passage into adulthood. TRANSITION : Fly540 that was bought by Fast Jet which plans its launch in in October. This week, the Central Bank wizards of the world swung into action. The Bank of England injected £50bn BY LOLA OKULO Rubicon said it had chosen lenged by a creditor who would launch in six months of electronic money into the UK and the grand total is Airbus A319 for Fastjet op- gone to the registrar of com- time since staff recruitment now £375b. Mario Draghi of the ECB said euro-bloc RUBICON Investments, erations in the continent. panies in a bid to block the was already on course. economic growth “continues to remain weak with the company that bought “The decision to launch transfer of Lonrho’s shares Jambo Jet is also expect- heightened uncertainty” and downside risks had ap- out regional airline Fly540 FastJet with the Airbus in Fly540 to Rubicon. ed to be a low cost airline. peared whilst cutting its main refinancing rate by a plans to launch its opera- A319 enables us to expand The creditor, the report The !ght for the quarter-percentage point to a record low 0.75% and tions locally by October un- rapidly with each aircraft said, is demanding Sh55 travel market by the airlines said it will no longer pay interest on overnight deposits. der new name FastJet, it has potentially carrying around million from Fly540 for will signal the beginning of In fact the German Schatz is now yielding negative announced. 250,000 passengers a year. supply of jet fuel and seeks cheaper fares. Currently air 0.01%, which is an extraordinary thing. The People’s British investment !rm Rubicon expects passenger to block the transfer until travel is very costly with Bank of China cut its key interest rate for the second Rubicon last month com- capacity to double from the debt is settled. travel to some regional des- time in a month, on the same day. And even here, on pleted a buyout deal to take current levels within six However if the deal tinations costing as much the frontier, we got a 150 basis points cut. over Fly 540 for $85.7 mil- months of the introduction eventually pulls through as or more than long haul I believe the FED who are set to issue their next lion (Sh7.3 billion) from of the A319 "eet,” said Ru- and Fastjet manages to destinations like Europe or policy statement on Aug. 1 after a two-day meeting, Lonrho group. bicon CEO Ed Winter in launch operations by Oc- North America. will confirm a 3rd round of The !rm said then that the statement posted on the tober as planned, it would David Lenigas, Execu- Quantitative Easing, QE3. The FED has already printed it had chose to acquire !rm’s website. create !erce competition tive Chairman of Rubicon $2.3 trillion of Magic Money. I think in many places, The Fly540 as its platform for “We plan to add at least with ’ new and of Lonrho Plc added policy makers are now running on empty. They are at the launch of a budget !ve leased Airbus A319 air- subsidiary Jambo Jet also that FastJet intends to sign the limits of their Influence. In some places, it feels like airline in Africa modelled craft to the "eet within six planning to launch at the a deal with a major Euro- the Titanic. Everyone is dancing, the ship is sinking and along Europe’s largest months of launch and up to same time. pean maintenance, repair thinking if we dance fast enough, we won’t sink. low cost carrier Easy Jet 15 within a year.” In April, KQ’s Finance and overhaul company in In chaos theory, the butterfly effect is the sensitive founded by one of Ru- This announcement was Director Alex Mbugua told a bid to also raise the avia- dependence on initial conditions, where a small change bicon’s director’s, Stelios made hours after a local an investors meeting held at tion safety standards in the at one place in a nonlinear system can result in large Haji-Ioannou. newspaper reported that the Outspan hotel in Nyeri that continent to be at par with differences to a later state. The name of the effect, In its latest statement, buyout deal had been chal- the budget airline Jambo Jet Europe. coined by Edward Lorenz, is derived from the theoreti- cal example of a hurricane’s formation being contin- gent on whether or not a distant butterfly had flapped its wings several weeks before. Hurricane winds could Rivatex to expand output with new machine blow anytime from anywhere. If the markets were really efficient, a tsunami of BY JESSICAH NYABOKE said that Rivatex cur- from Rivatex’s extension that Rivatex has its own liquidity would be flooding into African sovereign paper. rently imports cotton from programme. source of cotton with indi- Maybe it will. Across the African continent, You will note COTTON farmers in Comesa countries which is “Our country is en- vidual farmers supplying that we are conducting an orthodox monetary policy. North Rift have been urged bound to make its prod- dowed with good climate the rest of the crop. Here in Kenya, I think the easing cycle will total about to increase production fol- ucts less competitive in the suitable for cotton growing. “This will ensure that the 6% [of which we have received 25%] through year lowing the acquisition of a market due high prices. Why should we import factory does not face an end. I think this easier policy will see the Se- larger machine by the Rift Rivatex Managing direc- the crop?” wondered acute shortage as has been curities Exchange NSE 20 Index [which is the world’s Valley Textile Industry. tor David Tuigong said the Tuigong. happening in the past,” he 3rd best performer in 2012] rally another 400 points. The mavchine to boost !rm spends a lot of money He said Rivatex has said. I think the shilling will confound everyone by behaving capacity from the current importing cotton when purchased 5,000 acres in Tuigong said the upsurge well and staying in an 83-88 range versus the dollar. 300 meters to 20,000 me- Kenya has the capacity to Mwingi, 1,000 in Kerio of the mitumba industry ters per day. be self sustainable. Valley and 100 in Mogotio has greatly affected the lo- Shares go up and down and readers are advised that this Speaking at Moi Uni- He said that farmers where it will grow cotton cal textile industry as most column represents Mr Satchu’s personal opinions. versity in , the vice from Nyanza, Rift Valley under irrigation. people no longer buy new chancellor Richard Mibei and Western will bene!t This, he said, will ensure clothes.