Daily Archives: September 17, 2010

Americas market wrap

September 17, 2010 10:21 pm by Anora Mahmudova
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Latin American stocks finished the day lower on Friday, after US consumer confidence unexpectedly fell, casting doubt on the strength of the economic recovery. In September, the US consumer sentiment fell to its weakest level in more than a year, while in August, the consumer price index showed inflation pressures were muted. Continue reading »

Posted in Global, LatAm |

English bankers: a sure sign of Mongolia’s mineral boom

September 17, 2010 7:33 pm by William MacNamara
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China was 30 years ago. Dubai was 20 years ago, and Kazakhstan 10. If you want to go to the next boom country, go to mineral-rich Mongolia.

In fact, the boom has already started. A construction surge has reshaped much of the capital, Ulan Bator. A Louis Vuitton boutique has been open for almost a year. And here’s another milestone: the first Mongolia-focused investment bank has opened – and the head of UBS’s London mining team is on board. Continue reading »

Posted in Mongolia |

Brazil’s election: corruption scandal fails to hurt Dilma – so far

September 17, 2010 6:59 pm by Vincent Bevins
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A corruption scandal has brought down President Lula’s chief of staff – two weeks before his ally Dilma Rousseff is likely to be elected Brazil’s new president.

The scandal has not dented Dilma’s opinion-poll dominance over centre-right opposition candidate José Serra (both pictured). But it could do – if this weekend sees further relevations linking her directly to alleged corruption. Continue reading »

Tags: , Posted in Brazil |

Mission Impossible: save Dubai?

September 17, 2010 6:00 pm by Simeon Kerr
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November 2010: Tom Cruise and dozens of crew are expected to arrive in Dubai to film the fourth “Mission: Impossible” feature film.

November 2009: that was the month the city-state almost self destructed like one of the messages in the classic spy series. The government told the international financial community that despite months of assurances it would not be able to repay its debts.

With $20bn in help from oil-rich neighbour Abu Dhabi, a default crisis was averted and refinancing plan cooked up. Continue reading »

Posted in United Arab Emirates |

CEE markets wrap: rouble steadies; Turkish stocks extend record

September 17, 2010 5:37 pm by Henry Mance
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The Russian rouble recovered from Thursday’s slump, enjoying its biggest rise against the dollar in a month. Debate continued as to whether the currency’s weakness reflects lower growth and higher speculation.

Stocks markets were down, led by the Micex and the Prague stock exchange, although Turkey’s ISE 100 consolidated its strong week.  Continue reading »

Posted in Global |

Defining emerging markets: the “7 per cent Club”

September 17, 2010 5:09 pm by Barney Jopson
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If there’s a bandwagon in emerging markets these days, it’s the endless competition to coin a catchy new group name for some or all of them. The ways of squeezing the relevant countries into acronyms have been well and truly flogged. So it’s nice to see a new approach: the “7 per cent club”.

It’s been cooked up by Standard Chartered and is different because it doesn’t fix who’s in the club and out; instead it sets a bar for entry and allows countries to climb in or fall out depending on how their economies fare. Continue reading »

Tags: Posted in Global |

Why has Petrobras increased its share offer?

September 17, 2010 4:49 pm by Henry Mance
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Petrobras’s share offer just got a little more intriguing. The Brazilian oil giant has announced that it will add another 376m shares to its offering, under an over-allocation option. That could take the offer to a total of $79bn – three-and-a-half times Agbank’s world record IPO earlier this year.

The question is why. Does Petrobras think the share offer is going well or badly? Continue reading »

Tags: , Posted in Brazil |

Deal of the day: South Korean company buys into Pepsi Philippines

September 17, 2010 4:10 pm by beyondbrics
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By Mintoi-Chessa-Florea of mergermarket

While South Korean oil company KNOC steps up its efforts to buy Dana, another of the country’s businesses is making quieter steps abroad. In an $101m deal, Lotte Chilsung Beverage Company – Korea’s top soft drinks company - has become the biggest shareholder in Pepsi-Cola Products Philippines.

Lotte Chilsung is betting that the Philippines’ beverage market can sustain its recent growth, which has averaged 12 per cent annually over the past three years. The company may now look for further buys in China, Vietnam, Japan, and Russia. Continue reading »

Tags: , , Posted in Philippines, South Korea |

Ukraine shows world its economy is back on track

September 17, 2010 3:53 pm by Roman Olearchyk
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Just one year ago, there was nowhere to turn – apart from the International Monetary Fund – for cash-strapped countries hit hard by recession. The credit crunch and recession kept risk appetite too low, and borrowing costs on debt markets too high. But debt market appetite is back for emerging markets, including countries like Ukraine whose finances were completely out of whack a year ago.

By raising $2bn through two separate Eurobond placements on Friday, this still fiscally-troubled economy has shown that a year, and a bit of reforms, can make a big difference. Continue reading »

Posted in Ukraine |

Coal-bed methane in China: coming to consumers by truck

September 17, 2010 2:47 pm by Leslie Hook
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China is rich in coal-bed methane, a gas that can be used for fuel. But production has not proved easy. This year output of the gas will be less than a quarter of the official target.

Transport is a key obstacle. China’s pipeline network is dominated by oil giants CNPC and Sinopec, making it difficult for gas suppliers to get access. Now one company, Green Dragon Gas, has found a way to skirt the issue – by selling its coal-bed methane directly to customers. Continue reading »

Tags: Posted in China |

Another headache for Philippine Airlines: rival Cebu plans $730m IPO

September 17, 2010 1:15 pm by Kevin Brown
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Investors get ready. After a year of speculation, Cebu Pacific Air, the Philippines’ leading low-cost airline, has finally confirmed its IPO. It said on Friday that it plans to raise up to $730m in the offering, which will take place on the Philippine stock exchange on October 25.

Cebu wants the additional investment to expand internationally, ahead of an “open skies” agreement across southeast Asia. And that’s bad news for its rival – troubled national carrier Philippine Airlines. Continue reading »

Tags: , Posted in Philippines |

Warning signs: is India’s central bank blowing bubbles?

September 17, 2010 12:36 pm by Alexandra Stevenson
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In the latest move to shed its title as Inflation King of the G20, India’s central bank raised interest rates for a fifth time this year. But the increase, which took some analysts by surprise, was far more conservative than seems at first glance.

The bank left the most powerful lever untouched, revealing its concerns about current deficits, as a note by Lombard Street points out. What’s more, by using the least relevant lever to raise interest rates, the bank may be helping to blow more hot air into what some are saying is an equity market bubble. Continue reading »

Tags: , Posted in India, Russia |

New York headlines

September 17, 2010 12:00 pm by beyondbrics
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* China online food sales on the up

* Turkey aims to triple Iran trade

* Brussels probes Czech energy market plan

* India plans policy options to boost pharmas

* India’s Bharti selects IBM to manage IT for African operations Continue reading »

Posted in Global |

China’s star bank analyst is getting more bearish

September 17, 2010 11:53 am by Jamil Anderlini
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For at least six months Charlene Chu, chief China banking analyst at Fitch Ratings, has been warning about the deteriorating health of Chinese banks.

A recent report she wrote on off-balance sheet lending by banks – a practice she dubbed “informal securitisation” – was hugely influential and is widely seen as having triggered a strict policy change by the country’s banking regulator. This week Chu has been briefing clients in Beijing and the increasingly bearish tone of her latest research is likely to make people pay more attention to the state of Chinese banks. Continue reading »

Posted in China |

Asia markets wrap: Indian stocks hit 34-mth high; Thai telecoms plunge

September 17, 2010 11:28 am by Henry Mance
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With global sentiment improving, Asian indices mostly rose on Friday and Indian stocks hit a 34-month high in spite of Thursday’s interest rate rise.

Chinese stocks again underperformed after the central bank reiterated its warnings on excessive loans. In Thailand, telecoms stocks shed over 10 per cent, reacting to the suspension of a long-awaited 3G auction. Continue reading »

Posted in Global |
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