Americas markets snapshot: Boost for stocks after Brazil election
Latin American stocks gained the day after Brazil’s first-round presidential election, but the region’s currencies weakened against the dollar. Continue reading »
Brazilian clown laughs all the way to the legislature
Sunday’s election left it unclear who will lead Latin America’s biggest economy after President Lula steps down. But one unexpected candidate emerged with a clear mandate: Tiririca, the circus clown and comedian.
He ran his campaign on a platform of “It can’t get any worse” and is now facing allegations of illiteracy, but he received more votes than any other person running for the 500-strong lower house of the country’s legislature. Continue reading »
Emerging markets are starting to resemble pole-vaulters who, no matter how high the bar is raised, jump over it effortlessly. Back in April, the Institute of International Finance – a global club of banks – had predicted private capital inflows to emerging markets would total $709bn this year; it now recognises emerging markets will pass that level with ease. So the IIF has raised the bar: its new estimate is $825bn – that’s $116bn higher.
However, while the greatest pole-vaulters were Russian, the most favoured emerging markets are certainly not. Russia will actually receive less capital inflows than initially thought – with Russian stocks attracting barely half of what was predicted in April. Continue reading »
Guest post: Brazil’s future path is already mapped out
By Gabriel Gaspar
We will know Brazil’s next president on the night of October 31, but there are in fact few surprises in store.
Brazil’s politics, economy and outlook are stable. It has disciplined state finances, a growing internal market boosted by the graduation of millions of Brazilians out of poverty and into the middle class, plus growing ties with China. It is also becoming an energy power that will turn state-run Petrobras into one of the world’s top companies in its field. Continue reading »
CEE markets wrap: Polish stocks at two-yr high; Vimpelcom seals Sawiris deal
Polish stocks extended their two-year high on Monday, and most of the region’s other indices rose. Currencies fell against the dollar, but the Hungarian forint did better than most peers after the country’s Fidesz government was strengthened by local election results.
Vimpelcom, Russia’s second-largest mobile operator, announced an $6.6bn deal to buy telecoms assets from Egyptian billionaire Naguib Sawiris. Vimpelcom denied that the company was taking on too much debt; its stocks in New York were up 3 per cent. Continue reading »
Deal of the day: Chinese company goes from mining to tea to online video
By Mark Shapland of mergermarket
Talk about thinking outside the box – China Mining Resources Group is switching the focus of its business with dizzying regularity as it tries to make a profit. The company was known for mining molybdenum, a metal used as to make steel, but became disillusioned with low margins. So in April last year, it bought a majority stake in a tea producer King Gold. And now it has taken another leap of imagination, becoming the first mining company to enter the world of online video production. Continue reading »
Is Hungary’s economy minister on the way out?
Viktor Orban, Hungary’s prime minister (pictured), has followed up an unprecedented two-thirds majority in April’s national elections with an equally emphatic poll victory at the municipal level.
But the morning after the night before everyone was asking the same 64,000 forint question: “What will the prime minister do now he doesn’t need to worry about the electorate?” Well, the short – but by no means certain – answer is: “Sack his economy minister”. Continue reading »
Stay on the line: Orascom-Vimpelcom deal close
Dmitry Medvedev’s visit to Algeria this week has taken on new significance. In a deal set to be announced on Monday, Russia’s second-biggest telecoms company Vimpelcom may buy key assets from Egyptian tycoon Naguib Sawiris, including Djezzy, his Algerian unit.
But it needs Algeria’s approval to make the deal workable – and a good word from the Russian president might go a long way. Continue reading »
How to promise austerity and win elections? Ask Latvia’s leader
Latvia’s prime minister is not normally the man to talk to at EU summits. But at this Saturday’s meeting, Valdis Dombrovskis might find himself in demand. Leaders from Greece, Ireland and elsewhere should want to grill him on how his government pushed through some of Europe’s toughest austerity measures – then not only survived a general election but also increased its support.
Stay the course, Dombrovskis told voters, and they agreed to, perhaps showing the stoicism that comes from having lived through far worse maladies. Continue reading »
India: the rising cost of fashion
In the month before Diwali, the Hindu festival of lights, Indians traditionally make new purchases for their homes and buy gifts for their families. But what is normally a popular time for shopping for clothes, might not be so this year.
Soaring cotton prices have meant that many retailers have had little choice but to pass on the added cost to customers. Continue reading »
Asia markets wrap: mixed ahead of jobs data
Asian stocks markets were broadly positive on Monday, as foreign inflows and last week’s manufacturing data from China continued to boost trading. Indonesian stocks extended their all-time record (see chart) and India’s Sensex edged up to a 33-month peak, while Hong Kong equities closed at a ten-month high. Continue reading »
Guest post: Turkey ready for credit upgrade
This post by Simon Quijano-Evans, head of EME Economics at Credit Agricole Cheuvreux, is the first of two beyondbrics is publishing on Monday and Tuesday on Turkey
Why is Turkey not investment grade? The first answer from ratings agencies is “politics”. The next question is how can politics be quantified? The answer is “it’s difficult”. That is a problem, given that the business of ratings is to determine where a country stands relative to peers.
Anyone who knows Turkey also knows the challenging transformation process the country is going through. But Turkey belongs to a small group in Emerging Europe that hasn’t seen a caretaker or minority government in the past seven years. The difference is that most of the other countries have at least one investment grade from the three major ratings agencies. Continue reading »
* Green candidate may play kingmaker in Brazil
* Vimpelcom near $7bn telecoms merger
* Kuwait commits $1bn to AIA IPO
* Brazil and China in credit card leap
* China’s Wen promises to buy Greek bonds Continue reading »
LG: too late to the tablet party?
It’s not easy for a technology company to survive in the current fast-changing tech world. The latest victim of the rapid changes in the industry, which has been turned upside down by Apple and Google, is LG Electronics.
Last month, the South Korean company saw operating profits fall by 90 per cent in the second quarter. It’s chief executive was replaced by Koo Bon-joon, the younger brother of the parent group’s chairman. Now as all eyes are on LG’s soon-to-be-launched tablet PC for growth, many fear it may be too little too late. Continue reading »
Asian stocks hit a two-year high
Asian stocks rose to a new two-year high on Monday as gains on Wall Street at the end of last week added extra kick to momentum that has building over the past month. The MSCI index of Asian shares outside Japan reached its highest level since June 2008.
In the latest leg of the strong Asian rally, stocks began to climb at the end of August and the MSCI index has posted gains of nearly 9 per cent since then. Over the past 52 weeks it has risen 21 per cent. Continue reading »
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