Daily Archives: November 3, 2010

Americas markets wrap: Fed QE2 lifts Brazil stocks to two-year high

November 3, 2010 9:25 pm by Shannon Bond
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Brazil's BovespaThe US Federal Reserve’s announcement of a new $600bn round of fiscal stimulus lifted Latin American stocks on Wednesday. Brazil’s Bovespa rose to its highest level since May 2008, led by banking stocks and state-controlled oil group Petrobras, and Mexico’s IPC index also closed higher. Currencies made modest gains against the dollar. Continue reading »

Posted in Global, LatAm |

China: rebalancing opinions

November 3, 2010 6:50 pm by beyondbrics
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By Alexandra Stevenson and Song Jung-a

Is China’s growth adding to global economic imbalances? Jim O’Neill, Bric godfather and chairman of Goldman Sachs Asset Management says no, such talk is “exaggerated”. He told a group of reporters on Wednesday that the country will be the biggest contributor to global GDP growth in the next decade.

His argument is backed up by a World Bank report released today that has raised the country’s 2010 GDP growth forecast to 10 per cent from an earlier 9.5 per cent. But not everyone is convinced that China’s leaders will get its economic rebalancing right. Continue reading »

Posted in China |

Time to leave LatAm’s overvalued markets?

November 3, 2010 6:15 pm by Ranjit Lall
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Which emerging market equity indices are overvalued and which are undervalued? A research note by Credit Suisse’s emerging markets strategy team offers some answers.

According to its estimates, the four most overvalued markets are in Latin America: Peru, Colombia, Mexico, and Chile. Should investors in these markets head for the exit? Credit Suisse thinks so. Continue reading »

Tags: Posted in Global |

CEE markets wrap: stocks mixed; Uralkali jumps on Potash Corp speculation

November 3, 2010 5:46 pm by Matt Kennard
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Central and eastern European stocks were mixed on Wednesday, as investors awaited the results of a two-day US Federal Reserve meeting. However, potash company Uralkali jumped 5.8 per cent to a two-year high amid news that the Russian government is promoting a local bid for Canada’s Potash Corp. Continue reading »

Posted in Global |

Brazil’s new cabinet: mixed messages

November 3, 2010 5:10 pm by beyondbrics
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Now that Brazil has chosen its next president, investors want to know the names of the other incoming weathermakers. Much speculation concerns Antonio Palocci, a respected old hand who was President Luiz Inácio Lula da Silva’s finance minister until a corruption scandal led to his resignation in 2006.

But whether Palocci (pictured, right, with Lula) will land a major job depends on which Brazilian newspaper you believe. Tony Volpon of Nomura writes that a “counter information war” is unfolding in Brazil: Continue reading »

Tags: Posted in Brazil |

Why China is interested in Poland

November 3, 2010 4:20 pm by Jan Cienski
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According to an academic study, countries that host the Dalai Lama tend to see their trade ties with China suffer – but only for the following two years. Poland, whose leaders last met the Dalai in 2008, is now seeing its relationship with China improve, as the study would suggest.

A high-level Chinese delegation is visiting the country this week, headed by senior political advisor Jia Qinglin (pictured, with Polish President Bronislaw Komorowski). Although Poland may lack the natural resources of Africa and Latin America, it does have three key attractions for Chinese investors. Continue reading »

Tags: , , Posted in China, Poland |

Nigeria’s eurobond bookrunners named

November 3, 2010 3:32 pm by Barney Jopson
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There’s a race on to issue the next eurobond in Africa – and it looks like Nigeria has just edged into the lead. The west African heavyweight, famous for its oil and its in-your-face dysfunctionality, has just appointed Citigroup and Deutsche Bank as bookrunners for its debut sale of a $500m bond.

Foreign investors keen on Africa have been waiting for the 10-year bond since before the global financial crisis. Now it is due before the end of the year. It’s likely to become another popular pit stop in the hunt for high yields – and the money in that game could rise if the US Federal Reserve’s anticipated QE2 boosts global liquidity more than it boosts the US economy itself. Continue reading »

Tags: Posted in Nigeria |

China rushes to cover up an exposé of its propagandists

November 3, 2010 1:00 pm by Kathrin Hille
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China watchers and many Chinese themselves have been wondering what’s going on. Since a key Communist party meeting in late October, official media – including the People’s Daily newspaper – have treated readers to a barrage of commentary on why China mustn’t adopt Western democracy. Instead, political reform must be gradual, a free press will lead to chaos, and the party must manage public opinion.

One key point of contention is how authoritative the People’s Daily articles are, and whether they signal an internal power struggle. In other words, who wrote them?  Continue reading »

Tags: Posted in China |

A tougher regime for Malaysia’s banks

November 3, 2010 11:57 am by Kevin Brown
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For a bank regulator, there can be few pleasures more sweet than being able to move towards a tighter prudential regime more quickly than your peers.

Zeti Akhtar Aziz, the governor of Malaysia’s central bank, found herself in that position as she addressed a financial industry conference in Kuala Lumpur on Wednesday on the bank’s response to the Basel III measures on capital adequacy. Continue reading »

Tags: Posted in Malaysia |

New York headlines

November 3, 2010 11:55 am by beyondbrics
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* China will grow 10% in 2010, says World Bank

* Obama’s visit raises India’s UN hopes

* Brazil, China boost AB InBev’s beer sales

* India’s ONGC ranked Asia’s top oil and gas explorer

* Malaysia combats property speculation Continue reading »

Posted in Global |

Asia markets wrap: HK, Seoul hit 2-year highs, ahead of Fed news

November 3, 2010 11:30 am by Henry Mance
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Most Asian markets rose on Wednesday, with analysts predicting further gains if the US Federal Reserve commits itself to significant monetary easing later in the day. Stocks in Hong Kong and South Korea hit two-year highs as hopes for added liquidity combined with strong earnings forecasts.

The Chinese economy will grow 10 per cent this year and 8.7 per cent next year, the World Bank said in its latest outlook, raising previous estimates of 9.5 per cent and 8.5 per cent respectively. Continue reading »

Posted in Global |

Brazil: continuity is not enough

November 3, 2010 9:39 am by beyondbrics
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Continuity was the watchword of the Brazilian election that Dilma Rousseff won, at the second attempt, on Sunday. She takes over from her mentor, President Luiz Inácio Lula da Silva, who presided over eight years of growth and investment success. But more of the same policies may not be enough: Rousseff is already facing tougher challenges.

In the FT’s latest View From The Markets video, Wilber Colmerauer of Brazil Funding, an investment advisory group, spoke to Barney Jopson of beyondbrics about investing in Brazil and how Rousseff should handle hot money, capital controls, and the challenge of attracting corporate investment.

Posted in Brazil |

Further reading: Dilmismo, democracy and Brazil’s bullet train disaster?

November 3, 2010 8:54 am by beyondbrics
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From the FT,

From elsewhere,

Posted in Global |

Chinese airlines: jam today, jams tomorrow

November 3, 2010 7:18 am by Jamil Anderlini
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At first glance, the profit increases reported by Chinese airlines in the third quarter are stunning.

China Eastern Airlines said its net profit in the third quarter rose 13,524 per cent, or 136-fold, from the same period a year earlier to a record of more than Rmb3bn. Air China also reported a record quarterly net profit in the third quarter of more than Rmb5bn, although that was a paltry increase of just 483 per cent over the same period a year earlier. Continue reading »

Posted in China |

India: Lesson in transparency

November 3, 2010 1:00 am by James Fontanella-Khan
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When Duvvuri Subbarao took over as India’s central bank governor two years ago he said so little publicly about his intentions that investors struggled to work out where monetary policy was going.

However, with time he has – quite deliberately – opened up, making it easier for the market to predict the bank’s line. Economists are convinced that the straight-talking governor’s approach has not only made life easier for them – but actually contributed to reducing market volatility and stabilising India’s economic recovery. Other central bankers should take note. Continue reading »

Tags: , Posted in India |

Global equities macromap

Number of the day

11% Quarter-on-quarter GDP growth in Thailand, as the economy bouces back after the 2011 floods.

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