Daily Archives: May 6, 2010

Americas markets wrap: Debt fears spur flight from risk

May 6, 2010 9:42 pm by Shannon Bond

Latin America followed world markets sharply lower on Thursday as Europe’s escalating debt crisis sparked wild trading and a further bout of risk aversion. Stocks and currencies across the region followed US stocks in a steep plunge earlier in the day, but recovered some ground and closed at three-month lows.

“It’s really shocking,” Jeff Palma, global strategist at UBS, told the FT.

“Stocks [in the US] fell to minus nine on the year within seconds; that was a pretty shocking move. This is not your normal every day pull back, this is a pretty full-on collapse in risk appetite.”
Continue reading: “Americas markets wrap: Debt fears spur flight from risk”

Posted in Global, LatAm | Permalink

IPO renaissance shows success of BMV’s Mexican revolution

May 6, 2010 6:00 pm by Adam Thomson

There was positive news today from beneath the glass-tiled cupola of Mexico’s Stock Exchange (BMV), where shares in Actinver, the newly listed Mexican investment group, rose 2.3 per cent to 11 pesos in early-morning trading.

Continue reading: “IPO renaissance shows success of BMV’s Mexican revolution”

Tags: IPOs
Posted in LatAm, Mexico | Permalink

Russia’s inflation rate drops to new low amid sluggish demand

May 6, 2010 5:30 pm by Courtney Weaver

In Moscow yesterday you could almost hear the Kremlin breathing a sigh of relief.

After nearly a decade of double-digit inflation rates, the rate has fallen sharply through the global crisis and its aftermath, and dropped further last month from an annual 6.5 percent to 6 percent, according to the state statistics service. The Ministry of Economic Development attributed the drop to the lowest level for 12 years to a stronger rouble, a weaker euro, lower import prices and depressed consumer demand.

Continue reading: “Russia’s inflation rate drops to new low amid sluggish demand”

Tags: inflation, Russian politics
Posted in Europe, Russia | Permalink

Will China’s central bank re-think euro strategy?

May 6, 2010 5:15 pm by Josh Noble

Euro valuation losses at emerging market central banks are starting to look worryingly big. So how long before some of them start jumping ship?

Continue reading: “Will China’s central bank re-think euro strategy?”

Tags: central banks
Posted in Asia, China, Europe, Global | Permalink

Czechs cut interest rates, surprising markets

May 6, 2010 4:48 pm by Stefan Wagstyl

The Czech central bank today surprised the markets by cutting interest rates in the teeth of the Greek crisis. By reducing its key refinancing rate by 0.25 of a percentage point to 0.75 per cent, it put Czech official rates under the eurozone’s 1 percent.

This is a vote of confidence in the koruna’s ability to withstand any further downward pressure that might be generated by the Greek crisis. It is also a reflection of the central bank’s expectations that economic growth will be sluggish, both in the Czech Republic and the eurozone – and that market interest rates might therefore be edging down.

Continue reading: “Czechs cut interest rates, surprising markets”

Tags: monetary policy
Posted in Czech Republic, Europe | Permalink

BRIC companies also fear foreign coups

May 6, 2010 3:35 pm by John Paul Rathbone

Here’s a curious observation. Multinationals from BRIC countries are apparently more worried about political risk when investing abroad than their western counterparts. It is sometimes thought to be the other way round.

That’s why, say, Chinese firms have been so active expanding into less developed markets, such as Africa. It is often believed that is because they’re willing to go where western firms are more cautious to tread. But that perception of BRIC corporate fearlessness is inaccurate, according to a survey of 90 companies by the Vale Columbia Centre on Sustainable International Investment.

Continue reading: “BRIC companies also fear foreign coups”

Posted in Global | Permalink

Peugeot plays catch-up with new Chinese JV

May 6, 2010 1:46 pm by Josh Noble

Walk the streets of Shanghai or Beijing, and you’ll see endless ranks of Volkswagen and Toyota taxis. Chinese officials favour black Audis with ominously tinted-windows. While GM’s Wuling Sunshine minivan is the country’s best selling set of wheels. Now Peugeot-Citroen is seeking to play catch-up in the world’s fastest growing car market.

Continue reading: “Peugeot plays catch-up with new Chinese JV”

Tags: China car market, vehicles
Posted in Asia, China | Permalink

Dubai and Abu Dhabi: a tale of two cities?

May 6, 2010 1:30 pm by Robin Wigglesworth

Analysts have long forecast that the United Arab Emirates would develop into “A Tale of Two Cities” – despite any obvious literary parallels with Dickens’ tome – as oil-rich Abu Dhabi’s economic fortunes overshadow Dubai, its oil-poor neighbour.

And even though spillover effects from Dubai’s wilting real estate sector and $100bn debt burden are still readily apparent, most of Abu Dhabi’s banks have had a relatively steady crisis. Dubai banks, on the other hand, are nervously eyeing their loan books.

Continue reading: “Dubai and Abu Dhabi: a tale of two cities?”

Tags: banking
Posted in Middle East, United Arab Emirates | Permalink

Brazil infrastructure: ‘bright future just out of reach’, FT reports

May 6, 2010 12:59 pm by Stefan Wagstyl

With only 12 per cent of its 1.6m kilometres of highways paved, Brazil needs investment in its infrastructure. But as the FT reports today in a 16-page special report on the country’s infrastructure, ‘a bright new future is just out of reach’.

Jonathan Wheatley, the paper’s Brazil correspondent, points out, the government of president Luiz Inácio Lula da Silva is making progress but struggling to meet the ambitious targets it has set itself.

Continue reading: “Brazil infrastructure: ‘bright future just out of reach’, FT reports”

Tags: energy, infrastructure, transport
Posted in Brazil, LatAm | Permalink

Chinese property: bubble or no bubble?

May 6, 2010 12:20 pm by Geoff Dyer

No-one in the US these days has a good word to say for the ‘Greenspan put’, the idea that when asset prices fall sharply, the Federal Reserve will eventually ride to the rescue and provide a floor for the market by cutting rates. Some people are certain it helped foster the complacency that triggered the financial crisis.

Is China falling into a similar trap over its property market? Can current moves to cool demand be taken seriously when three years ago Beijing went through a similar campaign – only to go into reverse when prices went into freefall? That is the intriguing question proposed by Paul Cavey at Macquarie Research. And his answer is an unequivocal ‘no’.

Continue reading: “Chinese property: bubble or no bubble?”

Tags: monetary policy, property
Posted in Asia, China | Permalink

CEE market snapshot: respite from the storm?

May 6, 2010 12:19 pm by Neil Dennis

The relative success of Spain’s auction of five-year bonds on Thursday, has helped to improve market sentiment after yesterday’s turmoil and stabilised most of the Central and eastern European equity and currency markets.

Continue reading: “CEE market snapshot: respite from the storm?”

Posted in Europe, Global | Permalink

Asia market wrap: Greek storm hits markets but there are anchors

May 6, 2010 11:37 am by Michael Hunter

Fears about moves to cool China’s overheating property markets added to the pressure on Asian equity markets from the ongoing worries about the eurozone sovereign debt crisis. Shanghai’s main index continued to fall faster than its neighbours, closing 4.1 per cent down, as traders remained pessimistic about the outlook for risk appetite on the mainland.

“For now emerging markets are being buffeted by a wave of contagion that has ravaged risk appetite and triggered stop losses,” Philip Poole, global head of emerging markets research at HSBC, wrote in a note investors today.

Continue reading: “Asia market wrap: Greek storm hits markets but there are anchors”

Posted in Asia, Global | Permalink

New York headlines

May 6, 2010 11:36 am by Josh Noble

Nigerian president Umaru Yar’Adua Dies at 58
Swire Properties pulls $2.7bn IPO amid “treacherous” market conditions
China’s richest couple gets richer after Hepalink IPO
Chinese stocks plunge to 8-month low on Greece, property
Australia seeks trade pact with India
Indian IT giant in race for $38bn deals
Guangdong Nuclear plans $1.2bn wind farm
Wen worried about jobs moving to Vietnam
Peugeot, China’s Changan sign joint venture deal
Renault seeks India partner electric car
Libya eyes Indonesian oil investment
Yanukovych wants EU involved in any Russia-Ukraine gas merger talks
Bids for one all-India 3G licence reach $2.46bn

Continue reading: “New York headlines”

Posted in Global | Permalink

China’s richest couple just got richer…

May 6, 2010 9:43 am by Jamil Anderlini

The markets may be falling, but one high-profile Chinese IPO enjoyed a flying start today. The couple who shot from obscurity to the top of China’s rich list last week got a bit richer when their company jumped 18.4 per cent on its trading debut on the Shenzhen stock exchange.

Li Li and his wife Li Tan were worth at least $7.4bn by the close of trading after shares in Hepalink, their small pharmaceutical exporting company, ended their first day at Rmb175.17 per share. That makes them by far the richest couple in China at current estimates.

Continue reading: “China’s richest couple just got richer…”

Tags: equities
Posted in Asia, China | Permalink

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Daily Archives: May 6, 2010

Americas markets wrap: Debt fears spur flight from risk

IPO renaissance shows success of BMV’s Mexican revolution

Russia’s inflation rate drops to new low amid sluggish demand

Will China’s central bank re-think euro strategy?

Czechs cut interest rates, surprising markets

BRIC companies also fear foreign coups

Peugeot plays catch-up with new Chinese JV

Dubai and Abu Dhabi: a tale of two cities?

Brazil infrastructure: ‘bright future just out of reach’, FT reports

Chinese property: bubble or no bubble?

CEE market snapshot: respite from the storm?

Asia market wrap: Greek storm hits markets but there are anchors

New York headlines

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China’s richest couple just got richer…

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