Americas markets wrap: Currencies rally on Fed stimulus
Latin American currencies soared on Thursday as markets digested the Fed’s move to pump $600bn into the economy. The wave of money is expected to increase already high inflows into emerging markets, fueling further currency appreciation. Continue reading »
Mexico: praise for the free peso
Here’s one conflict that drug-stained Mexico can avoid: the currency wars. Other emerging markets are turning to intervention and capital controls to protect their currencies from yield-hungry inflows. But Mexico has distinguished itself through inaction. And its discretion has now won a glowing write-up from HSBC.
True, the report says, yields in Mexico are not as high as in other emerging markets. There is even some speculation that the central bank’s next move – albeit no time soon – will be to cut rates rather than raise them. But HSBC’s analysis concludes: “Investors will increasingly be drawn to Mexico’s liquid, free markets.” Continue reading »
Saudi business reform: not there yet
Saudi Arabia is the easiest place to do business in the Arab world, according to the World Bank’s latest rankings. Globally, the kingdom is now ranked 11th out of 183 countries – two places up from last year, and 57 places up since 2004. That’s a source of pride for the country’s General Investment Authority (Sagia).
Yet the World Bank’s criteria focus on local business, not foreign investment. Multinational companies must still meet licensing requirements before they can even enter Saudi Arabia. And legal processes still need further reform. Continue reading »
CEE markets wrap: Istanbul surges; Fed stimulus lifts currencies
Equities across central and eastern Europe made significant gains on Thursday after news that the US Federal Reserve would embark on an $600bn asset-purchasing program. Turkish markets surged on the prospect of increased flows into its equities and bonds, while Polish stocks returned to a two-year high. The region’s currencies rose against the dollar. Continue reading »
Deal of the day: Hungarian pharma company goes west
By Mintoi Chessa-Florea of mergermarket
Women’s health is one of those speciality sectors that offers stable growth for pharmaceutical companies. It is therefore unsurprising that Hungary’s Gedeon Richter should want to make leaps into the sector. Today’s €236.5m acquisition of Grünenthal’s oral contraceptive (OC) portfolio will rank the Hungarian company – which has plans to build up a sales network in western Europe – as a leading player in Europe. Continue reading »
South Africa: tough talk on hedge funds
After American and European hedge funds were battered by the financial crisis, regulators quickly targeted them for a new wave of regulation. Their South African counterparts got off reasonably lightly – no hedge fund has collapsed in the country for five years, and the industry’s assets under management fell by a modest 2 per cent in the year to June 2009. The figure grew by 8 per cent the following year – but that hasn’t stopped South African authorities from vowing to tighten restrictions on the funds. Continue reading »
Best for drug trials? Thailand
Thailand has emerged as the best location for drug companies in Asia to conduct clinical trials, according to a new study by CMR, the consultancy.
The country ranked as the most attractive venue to test experimental medicines on patients, with particularly high scores for both patient recruitment and quality. Continue reading »
Carlos Slim goes for gold mines
When it comes to making money, Carlos Slim has proved himself to be something of a Midas. He increased his already unimaginable fortune by $8.1bn between July and September this year, lifting himself into a category all of his own on the world’s rich list.
But now the Mexican telecoms billionaire seems to be going for gold in earnest: next year, he plans to open two new gold mines in the northern border state of Chihuahua. The investment is expected to total more than $350m, and the ventures will create 4,000 new jobs. Continue reading »
Untrained staff just the start of Media Markt’s China challenge
Multinational companies are salivating at the thought of 1.3bn Chinese consumers unburdened by credit card debt. And the latest to bite is Media Markt, the German electronic goods retailer, which on Thursday was due to open its first store in China – a 13,000 square metre flagship (pictured) on Shanghai’s high street, Huai Hai road.
Except the store didn’t open, because Media Markt couldn’t train the staff in time. So the company went ahead with all the lion dancing and firecrackers anyway – just without the manic crowds common at most Chinese store openings. Continue reading »
New York headlines
* Gazprom founder Viktor Chernomyrdin dies
* Statoil nears deal on China shale gas
* Emerging markets rejig insolvency measures
* Rousseff picks her transition lieutenants
* Emerging market policymakers vow to combat Fed’s QE2 Continue reading »
Asia markets wrap: Mumbai hits record; Coal India surges on debut
Asian markets were buoyed on Thursday by news of further stimulus measures from the US Federal Reserve. Indian stocks rose over 2 per cent to an all-time closing high, with slowing food inflation reducing expectations of another interest rate rise. On its debut in Mumbai, Coal India gained 40 per cent to Rs342.35, within 3 per cent of Credit Suisse’s target for the stock.
East Asia has accelerated reforms in an attempt to stimulate domestic consumption, the World Bank said in its Doing Business report. The bank said that a record 18 of region’s 24 governments had introduced pro-business reforms, compared to just 8 in 2006. Continue reading »
Taiwanese property developer heads to Abu Dhabi
Taiwan is mostly famous for its hi-tech exports, but Farglory, the island’s biggest property developer, reminded investors that Taiwan has other world-class companies too.
Farglory, which has already ventured abroad to US and Europe since almost two decades ago, on Thursday signed agreements to develop four sites in Abu Dhabi, a first for a Taiwanese company. Farglory will jointly develop the project with the Mubadala Development Company, one of Abu Dhabi’s sovereign investment vehicles. Continue reading »
Further reading: Egyptian cotton bind and wine arbitrage
From the FT,
From elsewhere,
Foxconn: no change to workers’ rights
When a series of workers took their lives at Foxconn, the world’s largest electronics contract manufacturer, earlier this year, they triggered fierce debate about labour conditions in China.
Half a year down the road, many things have changed at Foxconn: the company gave many workers at its largest plant in Shenzhen a drastic wage rise, it is relocating much of its production to cheaper locations inland, and it is handing responsibility for housing and feeding its workers to the local governments. But nothing at all has changed with regard to workers’ rights, as a statement from the country’s government-backed trade union shows. Continue reading »
Coal India sets market alight
The barn-storming stock market debut of Coal India – the country’s biggest IPO – could encourage the government to accelerate plans for the proposed sale of shares in other state-run companies. On Thursday’s opening of trading on the Bombay Stock Exchange, the shares leapt nearly 40 per cent lifting the valuation of the world’s largest coal producer to $47.5bn.
Update: Coal India’s stocks closed at Rs342.35, up 39.75 per cent on Thursday. India’s BSE Sensex rose 2.1 per cent to a record closing high. Continue reading »
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