Daily Archives: October 25, 2010

Mexico: don’t leave us out of the currency war

October 25, 2010 11:26 pm by Adam Thomson
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Mexican peso coinsIs the Mexican peso overvalued? Guillermo Ortiz, Mexico’s former central bank governor thinks so. While most people in Mexico were using their Sunday to unwind, Ortiz was telling an audience in Toluca, just outside the capital, that the ease of investing in Mexico was increasing the risk of an overvalued currency. Continue reading »

Tags: Posted in Mexico |

Americas markets wrap: Stocks gain on commodities, falling dollar

October 25, 2010 9:53 pm by Shannon Bond
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Mexico's IPC indexLatin American markets gained Monday as commodities rose and the dollar slid. Mexican homebuilders got a boost from a 10 per cent surge in US existing home sales, helping to lift Mexico’s IPC to a new record high. Continue reading »

Posted in Global, LatAm |

CEE markets wrap: Micex at six-month high after G20 summit

October 25, 2010 5:38 pm by Matt Kennard
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Russian stocks returned to a six-month high on Monday, after the G20 agreed to avoid “competitive currency devaluations”, and new data showed the country’s economy expanded by 0.2 per cent in September from the previous month. Commodities and banks led gains. Elsewhere, Hungary’s central bank announced its base rate would remain at a record low of 5.25 per cent. Continue reading »

Posted in Global |

IMF gesture: not just window dressing

October 25, 2010 5:03 pm by beyondbrics
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Western Europe is to cede two of its seats on the board of the International Monetary Fund to emerging economies. Here Lex writers John Authers and Sarah O’Connor discuss whether the move is anything more than symbolic and conclude that it’s a baby step for the IMF.  Authers says, “Will it make emerging markets on its own feel much better about the IMF? No… Will it begin to affect that mood music, yes it probably will.”

Tags: Posted in Global |

Choppy ride ahead for India’s micro lenders

October 25, 2010 4:00 pm by Alexandra Stevenson
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It was not business as usual for microfinance lenders collecting loans on Monday in India’s Andhra Pradesh state. As many as half  were stopped by police and officials despite being allowed to make collections after a ten-day hiatus imposed by a state ordinance.

As the FT’s Amy Kazmin points out in today’s paper, a recent shift in Indian policymaking  came after one company, SKS Microfinance, listed on the stock market in September. Its shares were down a record 16 per cent at one point during trading on Monday amid the continued uncertainty over the regulation of the sector. Continue reading »

Posted in India |

Guest post: don’t forget politics and inflation in emerging markets

October 25, 2010 3:00 pm by beyondbrics
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By Richard Titherington of J.P. Morgan Asset Management

Here’s an inconvenient truth about today’s emerging markets: they were also considered emerging a century ago. Of course, countries such as Turkey and South Korea have changed dramatically over recent decades.

But the history of emerging markets in general contains two recurring themes – revolution and inflation – that have disrupted development and point to continued risks today. Continue reading »

Tags: , , Posted in Global |

Rising inflation keeps downward pressure on Vietnam’s dong

October 25, 2010 2:00 pm by Ben Bland
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When the FT ordered a coffee at a local Hanoi café on Saturday, the owner warned that he had been forced to increase prices by 20 per cent because of the rising cost of coffee, condensed milk and other overheads.

That’s just one example, but the government’s latest inflation figures, released over the weekend, showed that the upward pressure on prices is increasing across the board. This is putting further downward pressure on Vietnam’s sickly currency, the dong, which is becoming even less attractive as a store of value by the day. Continue reading »

Tags: , Posted in Vietnam |

Norilsk feud: the beginning of the end?

October 25, 2010 1:01 pm by Courtney Weaver
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Norilsk’s main shareholders have fought hard and long. Could the end finally be in sight? The Russian daily Kommersant reports on Monday that Vladimir Potanin’s Interros has offered to buy out its rival Oleg Deripaska’s Rusal for around $9bn in a bid to end the two sides’ feuding once and for all.

Rusal quickly rubbished the bid. But the company’s language could be read as suggesting that the stake would be available at the right price. Continue reading »

Tags: Posted in Russia |

New York headlines

October 25, 2010 11:54 am by beyondbrics
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* Qatar’s Emir is on an investment mission

* IDB, Eximbank ink deal to boost China-Latin America trade finance

* Indian defence chiefs reassess Asian threats

* G-20 to avoid ‘competitive devaluation’ of currencies

* Jaguar Land Rover poised for China venture Continue reading »

Posted in Global |

Asia markets wrap: Shanghai jumps

October 25, 2010 11:40 am by Henry Mance
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Chinese stocks rose to a six-month high on Monday, confirming their position as the world’s best performers in October. The Shanghai Composite was up 2.6 per cent, taking its gains for this month to nearly 15 per cent.

Other stocks markets also rose as foreign inflows continued. However, Indian software services exporter Wipro slipped a further 4 per cent, after its disappointing earnings on Friday and a downgrade from Credit Suisse today. Continue reading »

Posted in Global |

Watch out Apple, Google (maybe): here comes SK Telecom

October 25, 2010 10:36 am by Song Jung-a
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South Korea’s leading mobile operator, SK Telecom, has long deemed that domestic dominance is insufficient. It has desperately sought to expand abroad – only to see recent ventures in China and the US end ingloriously.

Now the company has a new, even loftier ambition: to develop software for mobile phones, thereby competing with Apple, Google and others. Not surprisingly, the proposal has raised doubts. Continue reading »

Tags: Posted in South Korea |

Further reading: Obama in India and new world reordering

October 25, 2010 9:47 am by beyondbrics
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From the FT:

From elsewhere:

Posted in Global |

China’s oil spill flares up again

October 25, 2010 8:46 am by Leslie Hook
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China suffered its largest-ever oil spill in July and the danger it poses has not yet gone away: problems flared up again at the weekend when an oil tank caught on fire during ongoing cleanup efforts at the Xingang port in Dalian.

The newspaper headlines and front-page images of the inferno blaze, which was put out Sunday night, have brought the disaster back into public view. And for some in China, the public attention will be welcome. Continue reading »

Tags: , Posted in China |

London headlines

October 25, 2010 5:36 am by beyondbrics
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* Qatar: Emir on a mission

* IDB, Eximbank ink deal to boost China-Latin America trade finance

* Indian defence chiefs reassess Asian threats

* G-20 to avoid ‘competitive devaluation’ of currencies

* Jaguar Land Rover poised for China venture Continue reading »

Posted in Global |

China wants the world to spend more renminbi

October 25, 2010 5:00 am by Alexandra Stevenson
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Buy it, send it, borrow it, lend it. That’s what China wants western foreign corporations to do with the renminbi.  And the measures being taken by the Chinese government to make this happen – part of it’s larger plan to promote the renminbi as a reserve currency – have come at lightning speed, at least by Chinese standards.

Renminbi cheerleaders – such as Bank of China (the country’s fourth largest lender) and the Hong Kong Monetary Authority – are traveling the globe to tell the world how corporations can take advantage of the relaxation of renminbi trade settlement measures and start using renminbi. Just in case we forget, they are also reminding us that the US dollar is likely to keep falling in value. Continue reading »

Tags: , Posted in China |
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