Daily Archives: October 13, 2010

Russia aims for more flexible exchange rate

October 13, 2010 11:30 pm by Shannon Bond

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While other emerging markets are heating up the global currency war in a bid to limit hot money flows, Russia today made a move that may help it attract more foreign capital. The central bank “widened the allowable trading corridor for the rouble, potentially allowing for more volatility but giving the bank the ability to target inflation rather than the exchange rate”, Charles Clover reports in Thursday’s FT. Continue reading »

Posted in Russia | Permalink

Americas markets wrap: Mexico’s IPC hits record high

October 13, 2010 10:05 pm by Shannon Bond

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Latin American stocks got a boost on Wednesday as China reported strong export growth, the US corporate earnings season got off to a good start and expectations of more monetary easing from the Fed lifted risk appetite. In Mexico, the IPC gained 1.05 per cent to a record 34,798.65 while Brazil’s Bovespa hit a six-month high, up 1.03 per cent to 71,674.90, and Chile’s IPSA surged 2.7 per cent, its sharpest rise since June 2009. Continue reading »

Posted in Global, LatAm | Permalink

‘Tremendous’ growth for Walmart abroad

October 13, 2010 8:45 pm by Jonathan Birchall

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Walmart’s top international executives were in typically ebullient form at the company’s autumn investors meeting in Arkansas on Wednesday, with Mike Duke, chief executive, highlighting “tremendous” growth opportunities in emerging markets in particular.

Doug McMillon, head of Walmart’s international business, delivered a robust defence of the company’s decision to make an offer for Massmart, the third-largest South African retailer. Continue reading »

Posted in Argentina, Brazil, Chile, China, Global, India | Permalink

Size matters, so middle Latin America teams up

October 13, 2010 7:20 pm by Henry Mance

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You could forgive Latin America’s hottest three stock markets for being complacent. Shares in Chile, Colombia and Peru have all gained over 30 per cent this year – beating their Brazilian counterparts seven times over. But exchange chiefs know scale is crucial if their indices are to keep flying – and so the three countries are integrating their markets as of next month.

Brokers are understandably excited: within Latin America, the exchanges’ combined market capitalisation is second only to Brazil’s. And the move shows how it’s sometimes easier for the middle-sized guys to team up than to rely on a regional giant. Continue reading »

Tags: stock exchanges Posted in Chile, Colombia, Global, LatAm, Peru | Permalink

Ukrainian telecoms: crossed wires

October 13, 2010 5:45 pm by Roman Olearchyk

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One of eastern Europe’s longest privatisation sagas may finally be drawing to a close. But there is no happy ending in the story of the sell-off of Ukrtelecom, Ukraine’s fixed-line telecoms operator.

After missing opportunities to privatise it in better times – when sentiment in financial markets and in telecoms was more favourable – Kiev is selling Ukrtelecom at a difficult moment, when the government’s debts give it little manoeuvre room. Worse, Ukraine is imposing conditions that could limit its chances of getting a decent price. Continue reading »

Tags: privatisation, telecoms Posted in Ukraine | Permalink

CEE markets wrap: QE talk boosts stocks; Hungary plans tax hikes

October 13, 2010 5:27 pm by Henry Mance

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Hopes of more quantitative easing in the US boosted appetite for emerging Europe’s assets on Wednesday. Polish stocks led gains, reaching a new two-year high. The Polish zloty also gained against the dollar, as quickening inflation pointed to a rise in interest rates.

Hungary’s prime minister said telecoms, energy and retail companies would face new taxes, as the government seeks to reduce its budget deficit. Continue reading »

Posted in Global | Permalink

UAE bond rush signals confidence

October 13, 2010 4:15 pm by Simeon Kerr

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Welcome to the UAE’s bond rush. With confidence in the emirates returning but local banks reluctant to lend, UAE entities – sovereign and government-related – are lining up to issue bonds and their Islamic equivalents.

Investor appetite for them looks strong: a clear sign that the UAE’s rehabilitation is continuing less than a year after Dubai World came to the brink of default. But the central bank’s governor has also issued a stern note of caution. Continue reading »

Tags: bonds Posted in United Arab Emirates | Permalink

After peak oil, peak steel?

October 13, 2010 3:20 pm by Peter Marsh

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You’ve heard of peak oil, but you may soon start hearing about “peak steel”.

Or you will if you listen to Eiji Hayashida, chief executive of JFE Steel of Japan. The head of the world’s fifth biggest steelmaker told the FT that from around 2015 world steel output will reach a plateau for at least 5-10 years, driven both by resource constraints and a weakening in demand.

It is hardly the consensus view – but the idea is gaining ground. Continue reading »

Posted in Global | Permalink

Wyoming teaches English to China

October 13, 2010 1:30 pm by Kathrin Hille

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The news that China has become the world’s largest market for something no longer surprises anyone – the country’s hunger for everything from steel to Louis Vuitton bags has already transformed many industries. But now that change has reached an unexpected area: English language teaching.

Eleutian, a Wyoming-based company which specializes in English language instruction via video conference, announced Wednesday its expansion into the Chinese market through a merger with Idapted, a Beijing-based English language instruction firm. Continue reading »

Tags: education Posted in China | Permalink

Thai capital controls: more to come

October 13, 2010 12:39 pm by Tim Johnston

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The Thai government’s attempts to relieve the upward pressure on the baht by reinstating a 15 per cent withholding tax on foreign bond holders has had little intended effect so far. On Tuesday the baht continued its inexorable climb hitting Bt29.82 after opening at Bt29.92, an increase of 0.3 per cent on the day.

Now, it looks as though government officials may be considering an additional tax on short-term fund flows, following the lead of their Brazilian counterparts. Continue reading »

Posted in Thailand | Permalink

Asia markets wrap: Indian stocks lead gains; Japan criticises S Korea

October 13, 2010 12:16 pm by Henry Mance

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Indian stocks bounced back from Tuesday’s fall, rising over 2 per cent on renewed optimism over regional growth. Hong Kong’s stocks extended their two-year high, although Chinese mining stocks eased after their recent gains.

South Korea, which will host G20 currency discussions later this month, was criticised by Japan’s finance minister for its constant interventions to weaken the won. Continue reading »

Posted in Global | Permalink

New York headlines

October 13, 2010 12:02 pm by beyondbrics

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* China trade surplus narrows in September

* Nigeria approves delayed $2.5bn sale of Nitel

* StanChart set to launch £5bn rights issue

* Hungary defends assets action

* Chinese firms up the stakes in Europe Continue reading »

Posted in Global | Permalink

Indonesian private equity: better late than never?

October 13, 2010 11:15 am by Anthony Deutsch

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Indonesia’s stocks and bonds may have attracted more than $8bn in net inflows this year, but private equity has been slow to arrive. Since 2005, total private equity investment has been less than $1bn. Compare that to Brazil, which has a smaller population, and which has received $8bn in private equity over the same period.

But the tempo looks to be changing. Over a traditional Indonesian meal of beef rendang at a conference in Jakarta this week, fund managers spoke of Indonesia as the next China or India. Continue reading »

Tags: fund management, private equity Posted in Asia, Indonesia | Permalink

Nigeria: investors pin hope on reform

October 13, 2010 10:50 am by beyondbrics

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Every emerging market wants to be part of the Bric group and fans of Africa’s most populous country say Nigeria is the most deserving candidate. That would turn the elite group into “Brinc” – and the brink is where Nigeria has teetered for much of its 50 years of independence: between realising the massive developmental potential of its oil reserves, and collapsing under the stress of corruption and conflict.

In the FT’s latest View From The Markets video, Titus Dakwah of Nubuke Investments talks to Barney Jopson of beyondbrics about Nigeria’s recovery from a stock market bust and new hopes for reform.

Posted in Nigeria | Permalink

China plays down export prowess

October 13, 2010 10:26 am by Jamil Anderlini

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With battle lines being drawn in a nascent “currency war”, China’s customs administration was under a lot of pressure on Wednesday to put a bit of spin on the country’s huge trade surplus.

In its official release announcing September’s trade data, the customs administration pointed out that the surplus of $16.9bn was the lowest in five months and also noted that month-on-month import growth hit a record high. Continue reading »

Posted in China | Permalink

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Daily Archives: October 13, 2010

Russia aims for more flexible exchange rate

Americas markets wrap: Mexico’s IPC hits record high

‘Tremendous’ growth for Walmart abroad

Size matters, so middle Latin America teams up

Ukrainian telecoms: crossed wires

CEE markets wrap: QE talk boosts stocks; Hungary plans tax hikes

UAE bond rush signals confidence

After peak oil, peak steel?

Wyoming teaches English to China

Thai capital controls: more to come

Asia markets wrap: Indian stocks lead gains; Japan criticises S Korea

New York headlines

Indonesian private equity: better late than never?

Nigeria: investors pin hope on reform

China plays down export prowess

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