Americas markets wrap: US data eases fears, lifts stocks
Latin American markets gained today as continuing industrial growth in the US eased fears over the global economic outlook.
Investors were cheered by news that US wholesale prices rose for the first time since March, that industrial production rebounded in July and that the pace of new home construction rose 1.7 per cent in July. Continue reading »
Another quarter, another round of international growth at Walmart. The retail giant beat Wall Street’s expectations with a 3.6 per cent increase in Q2 earnings to $3.59bn on a 2.8 per cent boost in total revenues to $103bn, and the company raised its full-year profit forecast.
Once again, Walmart’s international segment – which Morningstar analysts estimate accounts for a quarter of total revenues – shone. Overseas sales growth easily outpaced US sales, surging 7.3 per cent to $25bn, excluding the impact of local currency appreciation against the dollar. Net sales in the US remained flat in the quarter. Continue reading »
Now it’s official. Taiwan’s legislature on late Tuesday night approved the Economic Cooperation Framework Agreement, the landmark trade deal between China and Taiwan.
The passage of the deal through the Legislative Yuan removes any lingering doubts about whether the deal, announced to great fanfare in June, would somehow be derailed by the opposition Democratic Progressive Party. Continue reading »
CEE markets wrap: Micex boosted by oil, potash
Increases in US producer prices and industrial production helped to lift central and eastern European equities on Tuesday, although the gains were smaller than those on developed world bourses.
The region’s best performer was the Russian Micex, which was boosted by increased oil prices and hopes for consolidation in the potash industry. Pipeline-builder Transneft rose 2.2 per cent, while potash-miner Uralkali rose 6.8 per cent to its highest level since October 2009. The broader index closed afternoon trading up 1.3 per cent at 1,391.47. Continue reading »
Deal of the day: much-needed consolidation in China’s soybean market
By Patricia De Leon and Samuel Wang of mergermarket
With China projected to import a record amount of soybeans this year, it’s small wonder that its domestic soybean sector is experiencing a shake-up – with two Chinese companies announcing plans to tighten their relationship. Continue reading »
BlackRock eyes Taiwanese investors
BlackRock, the world’s biggest fund management company, is looking to further tap into Taiwan’s fund market by acquiring Primasia Investment Trust. The move would be no shocker; BlackRock already sells off-shore funds such as its BlackRock Global Funds in Taiwan, and by acquiring Primasia it will also have a license to raise and run on-shore mutual funds.
Primasia currently operates four funds, including an exchange-traded fund tracking the world’s top 50 semiconductor companies. Continue reading »
Can India outpace China’s growth?
Sorpasso’s are like football seasons: as soon as one finishes, you start looking forward to the next. Just as China officially overtakes Japan to become the world’s second biggest economy, people are already looking down the league table.
Morgan Stanley’s latest report - ”India and China: New Tigers of Asia” – suggests that India will soon be Asia’s growth pace-setter and start rising up the economic size rankings, albeit from its current lowly position outside the top ten. Continue reading »
Despite continuing uncertainty about Japan’s economy, emerging Asian stocks and currencies rose modestly on Tuesday, although analysts declined to attribute great signficance to the gains.
In South Korea, the Kospi gained 0.7 per cent to 1,755.03, with LG Corp up 2.5 per cent to its highest level since October 2008. The Kospi’s losses for August are now just 0.2 per cent, as investors hope that slowing recoveries in the US and Japan will be offset by Chinese growth. Continue reading »
New York headlines
* China boosts yuan’s overseas use via bond market moves
* Carlsberg lifts forecast on Russian market
* India to become world’s fastest growing economy by 2013-15: Morgan Stanley
* Wuhan Steel in talks with ArcelorMittal
* Singapore’s GIC to hit the road with $3bn IPO Continue reading »
Decoding China’s modesty
Japan’s economy has been the world’s second largest, behind the United States’, for just over four decades but this year it is very likely to be overtaken by China. Beijing might be expected to crow about the impressive growth that has allowed it to eclipse its historical arch-enemy.
But after data were released on Monday showing the Chinese economy surpassed the Japanese on a quarterly basis in the second quarter that was not the reaction at all. Continue reading »
European property: a second home for S Korean cash
While western investors may be looking east for returns these days, South Korea’s giant pension fund sees its future in the other direction.
The National Pension Service, the world’s fourth-largest, is going global, rapidly expanding its investments in overseas properties, especially in Europe where it finds an increasing number of attractive targets amid the region’s slowing economic growth. Continue reading »
[Hey Bric Spender] Buying security in South Africa’s townships
Take a stroll through one of Johannesburg’s wealthy northern suburbs, and you see a range of architectural styles among the lavish homes of the country’s business elite. But virtually every one will be surrounded by a perimeter electric fence, and have a sign on the wall warning potential intruders of an “armed response” by a private security team.
With the security industry worth an estimated R14bn ($1.9bn) a year in South Africa, it’s not just the rich and famous who are buying in. Continue reading »
Further reading
From the FT,
From elsewhere,
Are Pakistan stocks really a steal?
Mark Mobius likes to think he knows a bargain when he sees one. That’s why the Singapore-based chairman of Templeton Asset Management has told Bloomberg that he is busily picking stocks in flood-hit Pakistan. Down 9 per cent so far this month, Karachi is the world’s worst performing market by some distance.
This kind of thing is par for the course for Mobius. Whenever the index dips sharply – such as after the assassination the former prime minister Benazir Bhutto three years ago – the seasoned emerging-markets investor pops up with some soothing assurances. Continue reading »
London headlines
* Alarm at Vedanta’s drive for diversity
* India to become world’s fastest growing economy by 2013-15: Morgan Stanley
* Wuhan Steel in talks with ArcelorMittal
* Apple manager pleads not guilty to bribery charges
* Foreign investment in China climbs for 12th month Continue reading »
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