Rand Falls to 4-Week Low on Risk EU Debt Crisis to Slow Growth

The rand tumbled to a four-week low against the dollar on concern the global economy will slow as European leaders struggle to stem the region’s debt crisis, damping demand for South Africa’s commodity exports.

South Africa’s currency weakened as much as 1.4 percent to 8.2661 per dollar, the weakest level since Oct. 20, and traded 1 percent down at 8.2306 as of 3:12 p.m. in Johannesburg. Against the euro, the rand retreated 0.7 percent to 11.0955.

Commodity prices declined for the first time in three days, according to the Standard & Poor’s GSCI Index. The uncertain global economic outlook created by the European debt crisis is putting pressure on the prices of commodities including iron, Marius Kloppers, chief executive of BHP Billiton Ltd., the world’s biggest mining company, said today.

“The risk posed to the global economy by the sovereign debt crisis in Europe is high and increasing,” John Cairns, a currency strategist at Rand Merchant Bank in Johannesburg, said in a research note. “The risk of a major fallout and negative consequences for the rand is high.”

German Chancellor Angela Merkel today rejected French calls to deploy the European Central Bank as a crisis backstop, defying global leaders and investors calling for more urgent action to halt the turmoil. The euro-area economy is heading toward a “mild recession” by the end of the year, ECB President Mario Draghi said on Nov. 3.

Recession Risk

The lack of action and decisiveness in the E.U. to address the debt crisis in that region risks a global recession, South African Finance Minister Pravin Gordhan said today.

“Every single day, the lack of action, the lack of decisiveness, the inability of the European authorities to put together a substantial enough package of solutions is creating more doubt, more uncertainty and the potential for a recession to return at least to some parts of the world, if not the globe as a whole,” Gordhan said in an address at the University of Stellenbosch, near Cape Town.

South Africa’s benchmark stock index declined 0.6 percent today, led by commodity exporters including BHP Billiton and Anglo American Plc. Raw material exports account for about 45 percent of South Africa’s foreign currency earnings, according to South African Revenue Service data.

South Africa is “export-oriented which makes it exposed to slowdown risks,” Benoit Anne, the London-based head of emerging-market strategy at Societe Generale SA, said by e-mail. SocGen recommends selling the rand against the Turkish lira.

South Africa’s 6.75 percent bonds due 2021 declined, pushing the yield up three basis points, or 0.03 percentage point, to 8.08 percent.

Newspaper Briefing, including 'ECB stymied on debt crisis without fiscal union'

U.K. government bonds were in demand among nervous investors as Italys embattled Prime Minister Silvio Berlusconi won a crucial budget vote but did nothing to quieten calls for his resignation. December gilt futures settled 24 ticks higher at 130.24, while in the cash market yields on ten-year gilts dipped one basis point to 2.26%.

Bet of the day: The yield on a countrys bonds is a sign of the confidence in its finances. Italys have pushed into danger territory, above the 6.5%, deepening concerns that it would be forced to seek a European bailout.
Deal of the day: Triple Plate Junction, which is prospecting in Papua New Guinea, rose 2.4% to 51/4p, after one of its partners there, Americas Newmont Mining, spent enough to earn a 70% stake in their Morobe joint venture. Newmont committed a further $5 million (3.1 million) to exploration there over the next six months.

Lloyds suffers as families stop paying the mortgage: Britains biggest mortgage lender reported a surprise fourfold increase in losses from families defaulting on their home loans. Lloyds Banking Group, which provides mortgages to one in five British homebuyers, revealed mortgage loan impairments of 416 million for the first nine months, compared with 108 million in the same period of last year.

Asda finally fights back with Netto stores added firepower: Asda is growing more quickly than its rivals for the first time in nearly two years, figures revealed. Britains second-largest supermarket chain has lagged in recent years, but buying Netto stores has helped to make up lost ground, according to Kantar World panel. Its market share grew by 5.1% in the 12 weeks to 30 October, leaving it at 17.2%. That compared with growth of 4.6% in the overall market.

Spain standing by to run trains in Britain: The Spanish national rail company has unveiled ambitious plans to crack the British train market by launching bids for several franchises. Renfe also admitted that it had looked at buying its way into Britain by potentially offering to acquire one of the incumbent operators an admission that indicates it has taken a look at Go-Ahead Group.

Socit Gnrale scraps dividend to meet requirements: Socit Gnrale has scrapped its annual dividend and cut bankers bonuses as it scrambles to raise capital in line with new regulatory requirements. Frances second biggest bank by market capitalisation will also continue to sell assets and slash bonuses in the race to reach a 9% capital ratio by the middle of next year. The announcement came as Socit Gnrale reported a 31% fall in third quarter profits to 622 million (533 million).

Segro sees its future in Europes big cities: Segro is to sell some of its property interests to refocus on areas of higher profit growth. The industrial developer, which specialises in light industrial, logistics and office space, said that it planned to sell more than 1.6 billion of assets in Britain and continental Europe, including the 100 million Farnborough Business Park, within the next three to four years.

Yell debt worries grow as digital division takes off: Yell Groups debt has again caused unease after revenue declined by 12% in the first half of the year. The directories publisher hopes to offset the fall in sales by growing its digital assets but analysts said the company may need to renegotiate the terms of its 2.6 billion debt if its main business continues to decline.

Dublins loss is Londons listing gain: Irelands largest quoted company has quit its main listing in Dublin for London. CRH, which is among Americas biggest building products groups, accounts for about a fifth of the Irish stock exchange and, with a market capitalisation of about 7.7 billion, should go straight into the FTSE 100 at next months reshuffle.

Greek unity government fights over sharing power: Greeces new power-sharing government stalled before it had started as the two main parties struggled to agree to written guarantees demanded by the EU in return for loans needed to avoid bankruptcy.

Vodafone denies deals with taxman: Vodafone launched a robust defence denying claims the taxman let it off a multibillion pound tax bill, saying that it was a good corporate citizen. Andy Halford said: There has not now and never has been a tax bill for 6 billion or 8 billion. There was no sweetheart deal. The deal struck with HM Revenue and Customs was for a bill of about 1.2 billion.

Confidence slumps as economic woes spook businesses: The confidence of businesses has collapsed, according to a new survey of accountants. The U.K. Business Confidence Monitor (BCM) index has fallen from plus 8.1 in the third quarter of this year to minus 9.7 in recent weeks.

DTZ hopes for Aussie buyer: The real estate services firm DTZ said it has selected giant Australian outsourcing group UGL as its preferred buyer, in a move that would create one of the biggest real estate firms in the world.

Nord Stream opens gas tap: After 13 years of planning and two years of construction, the gas started flowing along the Nord Stream pipeline that will deliver Russian gas to an estimated 26 million EU homes.

Hugo Boss raises earnings outlook: Hugo Boss, the German fashion house best known for its mens suits, sharply raised its earnings outlook as it expands its store network and eyes strong growth in China.

Getting in on the Ground Floor at Groupon and Living Social

The daily deal business has grown rapidly in its relatively short lifespan, with

valuations of startups such as Groupon and Living Social reaching billions. Along

with venture backing has come hiring as companies rush to build revenue through

sales.

Getting a job with a daily deal site, however, is no easy feat. The industry has

attracted many applicants anxious to get in on the ground floor of something new

that could one day make them rich. Successful job seekers need to have a thorough

understanding of an industry with virtually no history as well as the tenacity to

develop long-term relationships with customers.

We talked with hiring managers and executives with a few of the biggest sites in the

daily-deal, preferred-pricing, and private flash-sale spaces to find out what stands

out among the hundreds of job applications they receive every day.


Using a daily coupon site isn't enough to want and get a job at one -- that's a

little like saying you want to be a chef because you like eating out at restaurants.

Instead, you need to understand the business, which is as much about offering

coupons to consumers as it is about enticing vendors to offer discounts.

"The reps that really seem to get it are the ones who have seen a merchant light up

with excitement when [they go] in with that business's coupon," says Patrick Albus,

CEO of KGB Deals USA, "and then come to us with that same passion and excitement,

and say 'How do I go about joining your team?'"

It's also important to understand the business of a particular site. Competition has

led sites to try to distinguish themselves, so assuming all sites are alike is a

quick way to end an interview. Do the legwork that it takes to find out where the

industry itself has been, where it's going, and what has proven to be successful in

terms of establishing -- and strengthening -- a business in the space.



Have Some Experience

A college education is a must-have for most sites as is sales experience. "We're not

hiring a ton of entry-levels," says Dan Jessup, vice president of human resources at

Chicago-based Groupon. "Those that are coming in with relevant experience are

typically doing better."

Valued traits include previous business-to-business sales experience, an ability to

articulate a value proposition, a history of opening new client accounts, and above

all, an understanding of how and why small, local merchants want to advertise.

The same goes for jobs with fashion flash-sale site Ideeli, which also has a daily

deal component. "We're looking for some experience," says Joel Greengrass, vice

president of talent with the New York-based company. "We're probably not going to

hire people right out of school because the risk is too high."

Likewise, risk is a factor when considering candidates with no business experience,

he says. "We value when people are a student of retail or e-commerce," says

Greengrass.

Entry-level applicants can make it at some sites in if they have passion for what

they're selling. "Think of your friends who know all of the places to go on the

weekend," says Claire Noonan, senior manager of recruiting for Gilt City, a

subsidiary of flash-sale site Gilt Groupe. "Those are our curators."



Focus Your Resume and Cover Letter

People with years of sales experience in more mature industries are competing for

these jobs, so make sure your resume is action-and-results-oriented, say hiring

managers. "We like to see proven success in numbers," says Noonan of Gilt City. The

industry also wants people willing to help companies grow over the long term. "We

look for retention, and how someone has grown with the same company over time," says

Noonan.

An absolute must? "The ability to work independently," says Julien Vernet, VP of

sales at VillageVines, which partners with restaurants in cities like New York,

Chicago, and Los Angeles, among others, to offer long-term preferred pricing and

discounts, rather than one-day-only offers. "They need to be self-starters because

they're going to be out in the field," he says.

Also, highlight any startup experience, and be sure your cover letter is short and

sweet. "In the field, you have a limited amount of time, so you have to grab their

attention and get them to listen to you pretty quickly," says Albus of KGB Deals.

Focus on your people skills. "If someone tells us they have cultural or humanitarian

pursuits, a food blog, involvement in a philanthropy," says Noonan, it shows that

they would be a good fit.



The Interview: Go in for the Right Reasons

You will struggle in the interview if you're not passionate about the social-

couponing industry; the hiring manager will sense it if you're there just to have a

buzz-worthy company name on your resume to help you land your next job.

You'll start with a phone-screen, and move on to meetings with sales reps, managers,

and company execs. You may have to act out some mock scenarios where you try to

pitch the site to a business. While specific questions will vary, every company will

probably ask you to justify why you want to work there.

"The most basic question can make or break the interview," says Greengrass: "Why

ideeli?" He suggests you answer with reasons that show your knowledge of and

interest in the company and its mission -- not with the fact that you "like to shop

there."

At Groupon, Jessup notes that it's a common practice to call up applicants before

bringing them in for an interview to gauge the candidate's interest in working for

the company. "The interest has to go both ways," he says.

"We're looking for the person getting into the job for the right reasons," says

Jeremy Thiesen, a regional sales manager with KGB deals, who oversees two city

managers and 16 sales reps in Chicago and New York City, "which means they're not

getting into it because this is a fad job and it's in the news."