Daily Archives: November 23, 2010

Americas market wrap: Bovespa falls to lowest level in two months

November 23, 2010 6:34 pm by Anora Mahmudova

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Latin American stocks tumbled on Tuesday on worries about escalating tensions on the Korean peninsula and deepening political crisis in Ireland. Investors, already concerned about the economic woes of the eurozone, were shaken further when North Korea shelled a South Korean island, prompting a sell-off of risk assets. Continue reading »

Tags: Bovespa, Chile economy Posted in LatAm | Permalink

CEE markets wrap: stocks, currencies fall on Korea fears

November 23, 2010 6:21 pm by Ranjit Lall

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Central and eastern European stocks took a hammering after this morning’s news of an artillery exchange between North Korea and South Korea. Indices in Turkey and the Czech Republic took the biggest hits. CEE currencies fell sharply against the dollar.

“If this escalates into a real war, of course it will start to affect the stocks, first with the resources and commodities,” said Monika Yang of Hamon Asset Management in Hong Kong, said by phone. “It would make the entire region very unstable.” Continue reading »

Posted in Uncategorized | Permalink

South Africa: economic proposals unlikely to lift slowing GDP

November 23, 2010 5:53 pm by Simon Mundy

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Ebrahim Patel has come in for some snide jokes over his low profile since being appointed as South Africa’s economic development minister last May. He has spent much of that time working on a new economic strategy for the country – and as he unveiled the document on Tuesday, he will have hoped to silence his doubters.

But this time around he may have to contend with economists, fresh with lower-than-expected GDP figures in hand, who are sceptical about whether new economic targets can be met. Continue reading »

Tags: GDP Posted in South Africa | Permalink

Frustrated Colombia edges toward Asia

November 23, 2010 4:50 pm by Henry Mance

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Colombia’s free-trade deal with the US is starting to resemble Fidel Castro’s demise: always so close, yet so far. The pact – intended to lock in Colombia as a economic partner of the US – has been held up by Democrats in Congress since 2006. Barack Obama has spoken in favour of it, but the turgid economy leaves little leeway for anything that might be labelled a jobs-killer.

So Colombians no longer bother sending expensive lobbying teams to Washington. Instead, they’re interpreting Congress’s snub as a reason to look to Asia. Colombia is the biggest economy bordering the Pacific that is not a member of Asia-Pacific Economic Cooperation (Apec). It now plans to join the organisation – and to seal free-trade deals with South Korea, Japan and Singapore, a government official said on a trip to London. Continue reading »

Tags: trade Posted in Colombia | Permalink

Korean won: risking the North’s wrath?

November 23, 2010 4:20 pm by Alexandra Stevenson

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Few could deny the picture from east Asia today is grim.

North Korea has ratcheted up geopolitical tensions with its artillery assault, sparking heavy selling by traders already spooked by uncertainty over Ireland, Chinese inflation and the rest.

The next few days won’t look good; analysts predict heavy selling when Seoul’s markets, which closed on Tuesday before the firing started, open on Wednesday. But the bet of the market is that WWIII is unlikely. Continue reading »

Tags: currencies, Korean crisis Posted in North Korea, South Korea | Permalink

Thailand: new push in resources race

November 23, 2010 4:18 pm by Stefan Wagstyl

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The relentless hunt for natural resources by countries short of their own reserves goes on. Thailand is making its biggest-ever foreign investment, with PTT, the state-controlled energy company plunging into the controversial Alberta oil sands sector.

In its first oil sands investment, PTT is paying $2.3bn to Norway’s Statoil for a 40 per cent stake, as Bernard Simon and Tim Johnston report on ft.com. It is unlikely to be the company’s last foreign foray. Continue reading »

Tags: oil & gas Posted in Thailand | Permalink

[update]: North Korea and South Korea exchange fire, raising tensions

November 23, 2010 3:15 pm by Stefan Wagstyl

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North and South Korea have exchanged artillery fire in the worst border incident in years, with two South Korean marines killed and about 20 other people injured. Markets in the region were plunged into turmoil, with the South Korean won leading other Asian currencies down and shares falling. Continue reading »

Tags: crisis & conflict Posted in Asia, Europe, South Korea | Permalink

Deal of the day: Mahindra buys Ssangyong; now for the turnaround

November 23, 2010 3:08 pm by beyondbrics

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By Sounak Mitra of mergermarket

Better late than never: India’s largest maker of sports utility vehicles is finally going global. Mahindra & Mahindra, whose previous overseas takeover moves have collapsed, is to buy Ssangyong Motor, the loss-making South Korean carmaker. The Indian company, which first expressed interest in Ssangyong in May, has agreed to pay $463m for a 70-per-cent stake and a portion of corporate debt. Continue reading »

Tags: M&A, Mahindra and Mahindra, mergermarket, Ssangyong Motor, vehicles Posted in India, South Korea | Permalink

China stocks: quit while you’re ahead?

November 23, 2010 12:45 pm by Henry Mance

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So this is how bulls put their feet up. A month ago, Morgan Stanley – a true believer in emerging markets – said it was reducing its exposure to developing-world stocks. Now it’s scaling back on China in particular, after the country’s equities were its worst EM performers during the last month.

That’s a sign that the long mid-year party has ended. But, in the aftermath, Morgan Stanley analysts are more likely to reach for champagne than Alka-Seltzer. They can afford a little less risk now, having enjoyed the rally that took the Shanghai Composite up 24 per cent between July and October (see chart below). Continue reading »

Tags: China inflation, equities, inflation Posted in China | Permalink

Asia markets wrap: stocks, S Korean won tumble after N Korean attack

November 23, 2010 12:03 pm by Ranjit Lall

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Asian stocks recorded their biggest fall in three months on Tuesday, after North Korea launched an artillery attack on a South Korean island. Indices in China, Hong Kong and Indonesia fell between 1.5 and 3 per cent. South Korea’s stock market had already closed, but the Korean won fell over 3 per cent against the dollar.

“Security concerns in the Korean peninsula are scaring investors,” said Kevin Grice, emerging markets economist at Capital Economics. “With no end in sight, they are likely to weigh on the markets for some time. The threat of further anti-inflation measures in China is only making the situation worse.” Continue reading »

Posted in Global, LatAm | Permalink

New York headlines

November 23, 2010 11:50 am by beyondbrics

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* North Korea shells South Korean island

* Mahindra signed deal to buy Ssangyong for $464m

* Thailand’s PTTEP buys $2.3 billion stake in Statoil oil

* Pearson buys African stake

* China bans hoarding of oil, coal to cool prices

Posted in Global | Permalink

Beijing and Taipei: battle of chequebooks

November 23, 2010 10:50 am by Jamil Anderlini

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The dwindling list of countries that formally recognize the Republic of China on the island of Taiwan provides one of the most graphic indicators of how alluring Communist China’s economy has become.

Today just 23 countries – including such diplomatic heavyweights as Burkina Faso, Palau and Nauru – recognize the government in Taipei instead of the government in Beijing, which considers self-ruled Taiwan a province to be reunified with the motherland at some point in the future, by force if necessary.

Taipei keeps these tiny nations happy through the generous exercise of “chequebook diplomacy” but the growing might of the mainland Chinese market makes the choice increasingly difficult. Continue reading »

Tags: China-Taiwan, politics Posted in China, Taiwan | Permalink

Asian fight club: S Korea vs Taiwan

November 23, 2010 10:17 am by Robin Kwong

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After being shelled by North Korea on Tuesday, there’s one place that South Korea won’t be turning for sympathy: Taiwan. Rivalry between the two Asian tigers is usually business-focused – with competition over exports of TVs and computer chips, and hence the relative value of their currencies.

But last week a sporting incident – at the Asian Games in Guangzhou, China – sparked perhaps the biggest diplomatic crisis between the two countries since 1992, when South Korea severed ties with Taiwan in favour of forming diplomatic relationships with China. Ahead of Taiwan’s local elections on Sunday, anti-Korean sentiment is sweeping the island. Continue reading »

Tags: politics, sports Posted in South Korea, Taiwan | Permalink

Investing in the Gulf’s BlackBerry habit

November 23, 2010 8:33 am by Simeon Kerr

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In the Arab Gulf, it’s not just harassed businessmen who depend on BlackBerrys. Young people see the smartphones, and their social networking potential, as a way round conservative strictures. And the phone revolution doesn’t stop there: between 2007 and 2009, telecoms usage grew more in the Middle East (31.8-per-cent growth) than it did in Asia Pacific (23.6 per cent), according to independent research for the Middle East’s largest handset distributor, Axiom Telecom.

Axiom is hoping that all this can power its own initial public offering next month – the first new listing in the United Arab Emirates for two years. The company can point to a lucrative deal with BlackBerry-maker RIM. But even in the BlackBerry-loving Gulf, the margins are very tight. Continue reading »

Tags: BlackBerry, IPOs, telecoms Posted in United Arab Emirates | Permalink

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Daily Archives: November 23, 2010

Americas market wrap: Bovespa falls to lowest level in two months

CEE markets wrap: stocks, currencies fall on Korea fears

South Africa: economic proposals unlikely to lift slowing GDP

Frustrated Colombia edges toward Asia

Korean won: risking the North’s wrath?

Thailand: new push in resources race

[update]: North Korea and South Korea exchange fire, raising tensions

Deal of the day: Mahindra buys Ssangyong; now for the turnaround

China stocks: quit while you’re ahead?

Asia markets wrap: stocks, S Korean won tumble after N Korean attack

New York headlines

Beijing and Taipei: battle of chequebooks

Asian fight club: S Korea vs Taiwan

Further reading: Asia retakes its place

Investing in the Gulf’s BlackBerry habit

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