Daily Archives: July 21, 2010

To visit Volkswagen’s plant in Puebla, a couple of hours south-east of Mexico City, is to witness the country’s export-led economic recovery. The plant, which can produce 2,100 vehicles a day at full capacity, expects this year to churn out 420,000 units – markedly up on last year’s 320,000. Continue reading »

Latin American stocks were generally up on Wednesday in spite of US equities tumbling into negative territory and the yield on two-year Treasury notes falling to a record low after Ben Bernanke, the Federal Reserve chairman, acknowledged an “unusually uncertain” economic outlook. Continue reading »

Mexico’s export-led recovery, founded largely on vehicle and television sales, finally seems to be feeding through into stronger domestic demand: according to figures released today which showed seasonally adjusted retail sales in May grew 0.7 per cent compared with the previous month. The positive data come as a relief for those who have warned that Mexico’s economic growth this year has so far occurred almost exclusively in the export sector, thanks to stronger demand in the US. Continue reading »

To an outsider, it all seems a bit surreal. Others simply called it macabre. But for Venezuela’s President Hugo Chávez , the exhumation of the bones of South American independence hero Simon Bolívar (after whom his “Bolivarian revolution” is named) is of the utmost significance. He actually professed, via Twitter, to have wept when he first clapped eyes on his idol’s dusty old skeleton.

Perhaps that goes some way to explaining why some other rather pressing affairs of state seem to be taking a back seat. Take, for example, the small matter of the economy – where things are not exactly going well- and more specifically Venezuela’s currency, which is, fittingly or perhaps not, called the bolívar. Continue reading »

By Hanna Gezelius of mergermarket.com

India’s education sector is buoyant: state education spending is up, and private colleges are in demand. Private equity houses, sensing coming consolidation, have already swooped.

So it’s no shock that Everonn Education, a big player in India’s schools and learning software, has attracted investment. What’s more surprising is that the buyer is SKIL Infrastructure, a company focused on ports, shipyards and railways. Continue reading »

Hungary’s equities recovered for a second day after Monday’s battering, with the Budapest stock exchange rebounding 1.6 per cent to 22,303.06. Bank stocks rose 3.6 per cent.

Yet, in a sign that there may be more investor nervousness ahead, the Hungarian forint lost its momentum. Having gained up to 1 per cent against the euro earlier on Wednesday, it slipped later in the day when prime minister Viktor Orban, on a visit to Berlin, told reporters his government would only negotiate a loan plan with the EU, and not the IMF. Continue reading »

The trade winds of the Indian Ocean helped sailors move goods from the subcontinent to the Gulf and Africa. Despite strong commercial and labour links, there has been an historic mismatch in the amount of investment flowing in the other direction, from the oil-rich Gulf to India.

But the currents appear to be shifting, as UAE telecoms operator Etisalat’s nears a deal to take a 26 per cent stake in India’s second-largest mobile phone operator, Reliance Communications and today’s announcement by UAE’s Evolvence Capital that it will launch its third India-focused private equity fund.

Continue reading »

Russia’s spies often become celebrities after they come in from the cold. Rudolph Abel, who helped steal the secrets of America’s atom bomb in the 1950s, was put on a postage stamp, and the 1973 TV series, 17 Moments of Spring, the most popular ever produced in the USSR, was based on the lives of three real life Soviet agents in Hitler’s Germany.

But, strangely, Russia is one place where Anna Chapman, the convicted spy who was one of 10 deported from the United States recently, is not a mega celebrity. Continue reading »

Just as the rest of the world grapples with the potential of 4G mobile telephony, there are still a few benighted lands that 3G has still not touched. Cuba is one. Myanmar another. Incredibly, a third is an Asian tiger economy – Thailand.

Continue reading »

Trying to promote your brand in China, the world’s second largest luxury market? Most labels instinctively turn to ads – print, outdoor, TV, online, mobile or radio. But a new study points to a more powerful tool: promoting corporate social responsibility. More than two-thirds of Chinese consumers said a luxury brand’s CSR would affect their decision to purchase decision, according to a new report. Continue reading »

It’s easy to get blasé about Brazil: the economy is thumping along; markets are relaxed about the forthcoming election; and nobody seems that excited – or even perturbed – by a further rise in interest rates on Wednesday.

So to wipe away any encroaching holiday stupor, consider this. Brazil probably has the highest real interest rates in the world, by a very fat margin. And, by this evening after the central bank raises nominal rates by an expected 75 basis points to 11 per cent, they will be even higher still. Continue reading »

By Girija Shivakumar in New Delhi

While Indian companies struggle to expand in neighbouring countries in south Asia, they are making considerable headway in the Gulf and Africa. Unlike their Chinese counterparts, many do so without government support. And Oman is one to watch. Continue reading »

Brazil’s Embraer has already had a good week at the Farnborough airshow, securing orders from a number of international carriers. With China and Russia both set to push their domestic planemakers onto the world stage – is the Boeing/Airbus duopoly in real danger? Richard Milne reports:

Continue reading »

First it was Indonesia, then South Korea. Inspired by the strength of an Asian recovery that has left the western developed world standing, regional central bankers are challenging old Western orthodoxies, and are embracing once dreaded capital controls.

Is Thailand about to become the latest country to join them?  No. But that hasn’t stopped the new central bank governor from talking about it. Continue reading »

* China denies IEA claim on energy consumption

* Chinese workers strike at Omron

* Korea Electric buys 20% Bayan coal stake for $515m

* Shanghai to sell overseas ETFs to the Chinese

* India says farms key to matching China Continue reading »

Global equities macromap

Number of the day

46 Number of Chinese cities out of 70 that saw a house price fall in April, the worst number since the new tracking system began.

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