Daily Archives: Sep 15, 2010

Mexican peso against US dollarSlowing US factory output weighed on Mexican stocks and the peso today but Brazil’s Bovespa gained as slower economic growth eased fears of further interest rate hikes.

“While data releases in the US have surpassed market expectations in the past two weeks, the downward revision in US industrial production released today could impact Mexico and the [peso]“, wrote Benito Berber of Nomura. “Our US economics team points out that ‘the three month average of rate of [monthly] growth in IP slowed to just 0.3%, the slowest since July 2009′. Also, slightly weaker auto sales in the US do not bode well for the continuation of the rally in the [peso].” Read more

Petrobras building in Rio de JanieroAs the FT reports on Thursday, many investors are unhappy about the way Petrobras and Brazil’s government, the national oil company’s controlling shareholder, have handled its forthcoming share issue, set to be the biggest ever attempted.

One measure of just how unhappy investors are is the price they have paid to rent Petrobras shares to short them in a bid to push their price down. In normal circumstances, the rate is between 1 and 2 per cent a year of their current price. Read more

Turkish equities reached a record level on Wednesday, on hopes that increased political stability would accelerate the country’s path to an investment grade credit rating.

Other central and eastern European were mixed. A Polish bond issue attracted increased demand, the latest in a series of successful debt sales in the region. Read more

The Kremlin has never taken kindly to Moscow and its crown prince, Yuri Luzhkov (pictured). Firmly entrenched as the capital’s mayor since 1992, Luzhkov has always ruled Moscow as the seemingly invincible head of a separate fiefdom, lashing out at everyone from oligarchs to President Medvedev.

Now, however, relations seem to be deteriorating further, and the Moscow city government is rushing to defend the mayor as he looks uncharacteristically vulnerable. It’s not just the political class that is watching the stand-off: the city and its related enterprises are among the largest generators of commercial contracts in Russia so the outcome matters to anyone who does business with them. Read more

By Sounak Mitra of mergermarket

Drink a whisky in India, and chances are it was produced by United Spirits, the country’s biggest spirits company and the world’s no. 2 after Diageo.

One of United Spirits’ basic ingredients is extra neutral alcohol (ENA), a pure form of alcohol distilled from molasses or wheat. But ENA prices are unstable, so the company has paid handsomely to acquire a supplier, Pioneer Distilleries. Read more

For many years Egyptian businessmen have struggled with the ups and downs of economic reforms, but one thing they never worried about was who is in charge of the Arab world’s most populous country. Like it or not, Hosni Mubarak (pictured) has been president since 1981 and he has dominated Egyptian politics, never allowing a credible opposition to organise or pose a threat to his rule.

Now, however, and for the first time in decades, the business community is grappling with political uncertainty as next year’s presidential election looms. Read more

New Delhi has seen 500 cases of dengue fever this year, if you believe the federal authorities; or 1,700 confirmed cases, if you believe the city authorities. But there’s good reason to believe neither.

Surgeries and hospitals across Delhi are overrun with fever sufferers. Doctors say the situation is the worst in two decades. And, as I discovered when my own family caught dengue, the authorities’ belated response is characteristic of an administrative capital: a tax on those most at risk. Read more

* Tesco advances in Carrefour Asian auction

* Foreign investment in China climbs for 13th month

* Real-estate slump may hinder S Korea’s recovery

* Indian software companies look to expand into Europe

* Chinese entrepreneurs respond to Buffett/Gates appeal Read more

South Korea is keeping its global business options open. This week it has hosted some unlikely bedfellows in the form of Arnold Schwarzenegger, the governor of California, and a gaggle of African ministers – all welcomed as part of an effort to broaden its trade and investment ties.

Schwarzenegger was in Seoul on an Asian tour and delighted his hosts by calling for a swift ratification of Korea’s free trade deal with the US, while across town the government was playing catch up in the resource race by wooing the African ministers. Read more

Indonesian equities jumped 3.9 per cent on Tuesday, catching up with the rest of Asia after a five-day holiday. Most other Asian markets also rose, although Shanghai stocks underperformed amid worries over possible bank regulation.

China’s commerce ministry said it had received no applications from companies wishing to bid for Canada’s PotashCorp, lowering expectations of a Chinese rival to BHP Billiton’s $39bn bid. Read more

Thailand’s steel industry is recovering from the global downturn and domestic political strife. But it’s pointing to a new problem: dumping by China.

Jason Ellis, president of the Thai subsidiary of Australia’s BlueScope Steel, said that Chinese manufacturers are selling steel coil almost 25 per cent cheaper in Thailand than in China. Read more

From the FT:

From elsewhere:

It’s difficult to spend even a few days in China and not get caught up in the frenetic atmosphere of high-speed economic growth. The city of Tianjin, with its mushrooming skyscrapers, motorways and gleaming factories, is no exception.

Little surprise then that the World Economic Forum, the international business conference, is finishing in a fairly up-beat mood. As Gerald Lyons, Standard Chartered Bank’s chief economist, told one of the concluding panels on Wednesday, “I am pretty bullish about the world economy.” Read more

* Tesco advances in Carrefour Asian auction

* Raja opens exit door for new Indian telcos

* Foreign investment in China climbs for 13th month

* NPS to invest $1bn more in property

* Dongfang regains ground after quake Read more