Daily Archives: Sep 10, 2010

It’s been a big week for the Brazilian corporate bond market – the biggest week ever, in fact. Since Monday, large Brazilian companies raised $6bn in foreign funds, and more issuances are in the works. Analysts say three factors have combined to make this the right time to strike. Read more

Latin American markets finished the week with modest gains as investors weighed conflicting signals over the health of the global economy. Oil surged to a monthly high but news that Chinese iron ore imports fell last month dragged Brazilian mining stocks.

“EM saw another choppy week, as risk off trading in at the start of the holiday-shortened week was replaced by risk on trading toward the end of the week.  We remain nervous about risk appetite, as increased concerns about US and global growth are likely to linger, as are worries about Greece and the periphery”, wrote currencies analysts at Brown Brothers Harriman. Read more

Jim O’Neill, a.k.a. Mr Bric, has just been named the new chairman of Goldman Sachs’ asset management division. He’ll remain in London, but will now oversee a whopping $800bn-plus in client money.

This looks like yet another bullish emerging market flag being hoisted in the world’s top investment bank as the EM don becomes an asset management Godfather. Read more

India’s stock market is set to get a boost after the country’s market regulator approved the introduction of mobile phone-based share trading, which is increasingly popular elsewhere in Asia.

With a high level of mobile phone penetration and a growing number of consumers accessing the internet via their mobiles, the move could open up the possibility equity investing to millions of budding traders across the South Asian country. The full story is in the FT Trading Room.

Central and eastern European stocks edged down on Friday, succumbing to global caution. Hungarian stocks fell over 1 per cent, although the forint pared its recent losses against both the dollar and Swiss franc. Pressure remains on Hungary’s government, with analysts criticising not just its political will before elections in October but its economic competence. Eurasia Group said that although the Orban administration has committed to a deficit reduction, “they don’t have a game plan to implement it”. Read more

By Leandro Molina of mergermarket

Outsourcing acquisitions have traditionally seen Indian companies snapping up Western counterparts. But Friday’s deal bucks the trend, with Spain’s Accelya Holding World buying a controlling stake in India’s Kale Consultants.

The move creates the world’s largest provider of back-office services for airlines, while demonstrating how keen Western companies are to get their hands on Indian outsourcers’ knowledge. Read more

Liberal business people and economists in Poland have been strong backers of the government of Donald Tusk. Yet they are dismayed by the government’s new plan to retain control of up to 20 key companies – “the geese that lay the golden eggs”, according to one adviser – in the hope of making them regional giants.

The controversy was apparent during an annual economic summit in the southern mountain resort of Krynica, a gathering place for Poland’s great and good for the last two decades. Read more

China’s imports grew faster than expected in August – helping narrow the country’s trade surplus, according to figures out on Friday.

Higher imports mean stronger domestic demand, right? A sign that consumers are spending more, perhaps; a sign that global imbalances in savings and investment (China does a lot of both) are starting to be corrected? Well, no, that would be getting carried away. Read more

* China trade surplus in surprise drop

* Sinopec, CNOOC may make $7bn Brazilian bid

* Nuclear strides vital for Chinese goals

* India to rent out computers cheaply in rural areas

* AIA strikes distribution deal with ICBC

* Serbia hopes draft resolution will restart EU talks Read more

Across South Asia, affluent families have long hoarded gold, viewed as the safest asset in turbulent times – and the right gift on an auspicious occasion. Brides are sent off to their grooms decked in gold jewellery that serves both as decoration, and a future safety net. Gold, people think, is more likely to hold its value than mere cash.

Now Bangladesh, one of the region’s poorest countries, has bought gold from the IMF, to hedge against currency volatility. Read more

The Philippines successfully completed a first, $1bn sale of global peso bonds, pointing to continued appetite for emerging market assets.

China’s energy giants Sinopec and CNOOC may make a $7bn bid for oil blocks owned by Brazilian company OGX, Reuters reported. The companies declined to comment. Read more

India’s economy is “running blisters”, say analysts at HSBC. Industrial output saw double-digit growth in July, far above expectations and reflecting growing domestic momentum.

But while speed is welcome, blisters hurt. So expectations are growing that the central bank will treat the ailment with a rate rise.  Read more

A new FT special report available now explores the trends and alliances in Asia’s economies. Two eye-catching details: this year the region excluding Japan should grow at its fastest rate for 20 years (8.6 per cent); and in spite of all the continent’s free-trade agreements and surging demand, most products traded within Asia may still have their final destination elsewhere.

From 11am-12pm GMT on Friday readers can watch an online discussion on medium-sized businesses in Asia – between the FT’s Asia editor David Pilling and Pamela Bracey, an investment specialist at the Asian Development Bank. Follow it here.

From the FT:

From elsewhere:

* Serbia hopes resolution restarts EU talks

* Nuclear strides vital for Chinese goals

* India to rent out computers in rural areas for Rs15 a day

* AIA strikes distribution deal with ICBC

* Vodafone signals disposal of minority stakes Read more

A century and a half ago, Siemens, Europe’s largest engineering company, changed the face of global communication by laying a telegraphic cable from London across the North Sea and onwards to Calcutta, then the capital of India.

Next week, an Indian engineering company will proclaim its own feat of electrical engineering beneath the choppy waters of the North Sea in one of the marvels of the new age: renewable energy. Read more