Daily Archives: November 25, 2010

Haiti: arrival of mobile banking

November 25, 2010 10:03 pm by Benedict Mander

Share this on

It’s very hard to be upbeat about Haiti at the moment. Lurching from crisis to crisis, it is in the thick of a cholera epidemic, which the UN now thinks could affect double the amount of people – 400,000 – than it had previously thought. Worse, the outbreak could undermine elections this Sunday, and consequently the legitimacy of the resulting government, which is so crucial if the reconstruction process is to succeed.

But occasionally there are positive developments, however small. Continue reading »

Tags: digicell, mobile banking Posted in Haiti, LatAm | Permalink

The big question: should the UK cut aid to India?

November 25, 2010 7:03 pm by James Lamont

Share this on

Here the FT’s South Asia bureau chief discusses the UK’s aid policy in India. What do you think David Cameron’s government should do? Join the debate in the comments section.

Sixty years after granting independence to India, the UK is weighing whether India is a worthy recipient of its aid programme. Once the largest single recipient of British foreign aid, the country has developed so rapidly in recent years that some in prime minister David Cameron’s government think it could be time to cut off India and channel the money to poorer countries, mainly in Africa. Continue reading »

Posted in India | Permalink

Brazilians: the kings of import growth

November 25, 2010 6:40 pm by Vincent Bevins

Share this on

How much buying power is too much? Rising incomes and a strong currency are fattening Brazilians’ wallets, allowing cheap foreign goods and holidays abroad. But new figures show just how deep the phenomenon goes: of the 70 countries covered by the WT0, none is seeing imports grow as quickly as Brazil.

Brazil’s imports rose 43 per cent in September 2010 compared to a year earlier – a bigger increase than in China (24 per cent) and Russia (34 per cent). That’s worrying some in Brazil, who fear the declining competitiveness of local manufacturers and the risks of a current account deficit. Continue reading »

Tags: Brazil politics, currencies, savings rate, trade Posted in Brazil | Permalink

Deep pockets: Serbia to tax its tycoons

November 25, 2010 6:00 pm by Neil MacDonald

Share this on

Serbia’s government says it will soon collect taxes from offshore companies, which is local political code for getting them from “tycoons”, the domestic entrepreneurs who first thrived amid wars and embargoes in the 1990s.

Dijana Dragutinovic, minister of finance, has promised new tax laws to ensure that “Serbian companies registered in off-shore zones are registered in Serbia” and re-invest profits there, according to Wednesday’s Blic newspaper. “The purpose is to distribute more justly … the blow of the world economic crisis,” the newspaper said. Continue reading »

Tags: tax Posted in Europe, Serbia | Permalink

CEE markets wrap: Budapest tumbles on pension reform

November 25, 2010 5:44 pm by Ranjit Lall

Share this on

Hungarian stocks fell almost 3 per cent on Thursday, amid fears about reforms of the country’s pension system and fiscal oversight council. Other central and eastern European markets were mixed, following positive data from the United States and confirmation of an EU rescue package for Ireland. Indices in Russia, Poland and the Czech Republic edged upwards, while Turkish and Romanian stocks fell.

“The global environment has improved in the past few days,” said Neil Shearing, senior economist at Capital Economics. “But there are serious concerns about Hungary’s nationalisation of pension funds. The market believes these measures will damage the country’s medium-term fiscal sustainability.” Continue reading »

Posted in Global | Permalink

The cost to Africa of war in Sudan

November 25, 2010 4:22 pm by Barney Jopson

Share this on

For foreign investors, frontier markets don’t come much wilder than south Sudan. But what happens in that land-locked expanse of scrub also matters to people who’ve ploughed their money into more “civilised” places next door, such as Egypt and Kenya, as a new report reminds us.

Frontier Economics has looked at the economic cost of renewed conflict in Sudan, a danger that is weighing on the region as southerners prepare to vote in a referendum on independence on January 9. It concludes that if the referendum sparks conflict and if it runs for ten years – two big ifs – Sudan’s neighbours could lose over $25bn in GDP, while Sudan itself could lose $50bn. Continue reading »

Tags: crisis & conflict, oil & gas Posted in Sudan | Permalink

Deal of the day: Hana trumps ANZ to become S Korea’s third-largest bank

November 25, 2010 3:35 pm by beyondbrics

Share this on

By Sarah Syed of mergermarket

Here’s another sign that tension in South Korea has not overly disrupted business: Hana Bank has bought smaller rival Korea Exchange Bank, beating off interest from Australia and New Zealand Banking Group (ANZ). That’s a belated triumph for Hana, which lost out on the same purchase four years ago.

The $4.1bn deal, Hana’s largest-ever, will make the group into South Korea’s third-biggest bank after KB Financial and state-owned Woori. And it represents a much lower price than was available for KEB two years ago. Continue reading »

Tags: banking, M&A, mergermarket Posted in South Korea | Permalink

Thomas Cook opens its arms to Russia

November 25, 2010 2:30 pm by Alexandra Stevenson

Share this on

The growing number of Russians flocking to foreign beaches may not please fellow tourists who tell tales of sun loungers being hoarded in hotel rooms by Russian sun worshippers. But it has certainly got travel operator Thomas Cook excited. Of the Russian market’s potential, the company’s chief executive says: “It’s huge, just huge.”

Three years ago Thomas Cook pinpointed three main markets where it wanted to expand – India, China and Russia, in that order. In 2008 the travel company crossed off India, after buying back a majority share of its India venture. Today it is crossing off Russia too, after doling out $45m in cash and shares in exchange for a 50.1 per cent stake in a the country’s biggest tourism operator, InTourist. Continue reading »

Tags: tourism Posted in Russia | Permalink

Vietnam inches forward on investor-friendly reforms

November 25, 2010 1:31 pm by Ben Bland

Share this on

Vietnam consistently tops surveys of which emerging markets offer the best investment opportunities (such as this one by UK Trade & Investment).

With its young and relatively low-cost workforce, natural resources, favourable location and growing domestic market, Vietnam’s attractions are obvious. But as the European Chamber of Commerce’s latest annual review of the business climate in Vietnam shows, investing in the country can be very challenging. Continue reading »

Tags: EU Posted in Vietnam | Permalink

Putin to EU: let’s make it together

November 25, 2010 12:15 pm by Henry Mance

Share this on

Earlier this week, Vladimir Putin was busy trying to save the tiger. Now he’s championing another, marginally less-threatened, species: European manufacturing. Writing in a German newspaper, Putin said that Russia and the EU could one day agree a free-trade zone – “stretching from Lisbon to Vladivostok” – that would encourage industrial cooperation.

The timing is no coincidence. Russia has just agreed a deal with the EU over its bid to enter the WTO – raising hopes of increased economic integration. Even so, Putin might be guilty of trying to run before he can walk. Continue reading »

Tags: EU, trade Posted in Russia | Permalink

Asia markets wrap: stocks, currencies rise on strong US data

November 25, 2010 12:00 pm by Ranjit Lall

Share this on

Asian stocks climbed on Thursday, as unexpectedly strong data on jobs, personal income and consumer sentiment in the United States buoyed investors. Indices in China, Indonesia and Vietnam all rose by more than 1 per cent. Most currencies gained against the dollar.

“The US jobs data looks quite encouraging,” said Khiem Do of Baring Asset Management. “The market has remained resilient despite risks of a worsening European debt crisis, inflation concerns in China and escalating tensions in [South] Korea. We could see more volatile trading ahead of the year-end holidays.” Continue reading »

Posted in Global | Permalink

New York headlines

November 25, 2010 11:54 am by beyondbrics

Share this on

* S Korea’s defence minister resigns

* Phone groups face extra $1bn charge for India licences

* Hana Financial to buy KEB stake from Lone Star

* SABMiller buys Argentine group

* Quito takes over Petrobras fields

* Markets up Continue reading »

Posted in Global | Permalink

QE fears in Asia: storm in a teacup?

November 25, 2010 11:18 am by Tim Johnston

Share this on

When Ben Bernanke, head of the US Fed, announced a second round of quantitative easing on November 3, there was much weeping and gnashing of teeth in Asia.

There were snide comments about printing money – banana republic style – and doomsday predictions of renewed Asian asset bubbles and massive exchange rate volatility as cheap dollars sloshed around the region looking for better returns. But these fears have so far proven to be exaggerated. Continue reading »

Tags: economy, QE Posted in Asia, Thailand | Permalink

An economic “honeymoon” in the Philippines

November 25, 2010 10:32 am by Roel Landingin

Share this on

The Philippine economy grew by 6.5 per cent year-on-year in the third quarter, easing slightly from first-half growth of 8 per cent as the one-off effects of election-related consumer and government spending faded.

The growth figure, released on Thursday, was below the government’s expected range of 6.7-7.7 per cent and below most analysts’ forecasts. But that didn’t dull the ardour of government statisticians, who gave vent to their literary inclinations in the official press release and described the economy’s performance as a “honeymoon” of sorts for president Benigno Aquino III, a 50-year old bachelor. Continue reading »

Tags: fiscal policy, GDP Posted in Philippines | Permalink

beyondbrics

Daily Archives: November 25, 2010

Haiti: arrival of mobile banking

The big question: should the UK cut aid to India?

Brazilians: the kings of import growth

Deep pockets: Serbia to tax its tycoons

CEE markets wrap: Budapest tumbles on pension reform

The cost to Africa of war in Sudan

Deal of the day: Hana trumps ANZ to become S Korea’s third-largest bank

Thomas Cook opens its arms to Russia

Vietnam inches forward on investor-friendly reforms

Putin to EU: let’s make it together

Asia markets wrap: stocks, currencies rise on strong US data

New York headlines

QE fears in Asia: storm in a teacup?

An economic “honeymoon” in the Philippines

Further reading: autocratic algorithms, blazing Brazil and China crackdown

Global equities macromap

Most popular posts

Recently commented

Number of the day

beyondbrics

The emerging markets hub

BB shortcuts

beyondbrics team

Regional teams:

Emerging markets data

Archive

What we are writing about

What we’re reading