Daily Archives: December 1, 2010

Chavez on Earth DayThe environment has not been kind to Venezuela this year. After Hugo Chávez blamed countrywide blackouts earlier this year on a particularly severe drought (Venezuela is heavily reliant on hydroelectricity), incessant rains now have the country on emergency footing, with dozens of lives already lost and devastating landslides a very real danger (blackouts, nevertheless, still seem to be continuing).

Indeed, Venezuela is as interested as the next country in making progress at the climate summit in Cancún this year, and certainly played a very active (some would say obstructive) role at Copenhagen last year. But the next time Chávez hops up onto his soapbox to rail against the damage rich countries have done to the environment, it’d be as well to ask what his motives really are. Continue reading »

Mexico's IPCLatin American markets rallied Wednesday amid an uptick in global risk appetite as investors were cheered by strong Chinese manufacturing growth and hopes that the ECB will step up purchases of eurozone bonds in a bid to contain the sovereign debt crisis.

Mexico’s IPC hit a new record high, gaining 1.3 per cent to 37,277, while Brazil’s Bovespa gained more than 2 per cent, ending four days of losses. The region’s currencies firmed against the dollar, with Brazil’s real rising to its strongest level in three weeks, while an upbeat US private-sector jobs report helped lift the Mexican peso and a 3 per cent surge in copper prices boosted Chile’s peso. Continue reading »

What should you do with your money in 2011? Bill O’Neill, the chief investment officer at Merrill Lynch Wealth Management, EMEA, advises investors to focus on commodities and smaller emerging markets.

In a note to clients, O’Neill predicts the global economy will recover in 2011, growing by 4 per cent. He says that the strength of emerging economies in particular will make global growth self-sustaining in the second half of next year. Continue reading »

Central and Eastern European stocks on Wednesday continued a strong showing that began in the previous session, rising rapidly after Chinese manufacturing expanded at its fastest pace for seven months and European Central Bank President Jean-Claude Trichet indicated that eurozone leaders may take measures to rein in the borrowing costs of heavily indebted countries.

Stocks in Hungary and the Czech Republic were the biggest winners, soaring over 3 per cent. CEE currencies all rose against the dollar. Continue reading »

Chinese companies are taking advantage of hard times in Europe by moving into Italy’s superyacht sector, buying well known brands that have fallen into bankruptcy.

The latest acquisition, brought at auction on Monday through administrators appointed by a Milan court, is Cantieri Navali di Lavagna (CNL), sold for €13.1m to ProMarine Service, an Italian company owned by China’s Nautic Star Marine. Continue reading »

Travellers across Africa see plenty of English Premier League football shirts, many bearing the names of African heroes like Chelsea’s Michael Essien and Didier Drogba. This passion for international sport is good news for Naspers, the South African media company, which has become the continent’s dominant pay-TV provider thanks in part to its aggressive acquisition of sports broadcasting rights. Yet the company’s management sounded curiously uncertain for the future as they unveiled its half-year results this week. Continue reading »

Only one country has turned down the chance of hosting the World Cup: Colombia, which said it was too busy with peace talks for the “extravagances” of hosting the 1986 tournament. But don’t expect to see such restraint again. Today emerging countries are desperate to prove that, whatever their internal problems, they can organise the world’s most-watched sporting event.

That leaves Fifa with a choice familiar to corporate executives: should it choose a safe, western host, or the high risks and rewards offered by an emerging market? Continue reading »

Chop, chop. Is that the axe of austerity we hear? It’s not such a familiar tool in Brazil, but its finance minister has said he will cut by half funding for one big outlet for public money, the state development bank BNDES.

High public spending has kept Brazilian interest rates too high for many people’s liking and fiscal consolidation is a key priority for the minister, Guido Mantega, who has just been reappointed by president-elect Dilma Rousseff. His comments suggest he is wasting no time in getting down to it. Continue reading »

While they have piled into Brazil, China and India since the financial crisis, Middle Eastern investors have tended to avoid Russia, deterred by the country’s poor reputation for corporate governance and transparency. But in a sign that the tide may be turning, Mubadala Development Company, part of Abu Dhabi’s sovereign wealth fund, has invested $100m in Verno Capital, one of the biggest Russia-focused hedge funds. Continue reading »

The end of year office party season may be getting under way elsewhere in the world, but life is looking rather more gloomy for Vietnamese government officials and employees of state-owned enterprises.

Amid mounting concern about inefficient state-spending and accelerating inflation, Nguyen Tan Dung, Vietnam’s prime minister, issued a directive on Tuesday night banning parties and urging officials not to dole out unofficial bonuses or payments. Continue reading »

* Manufacturing data show Asian divide

* Morgan Stanley gets approval to sell China stake

* India ratifies key spending bill amid corruption row

* China says won’t take sides in Korea dispute

* Beijing launches antipiracy campaign

* Thailand surprises with rate increase Continue reading »

Asian stocks soared on the back of strong manufacturing growth in India and China and rising consumer confidence in the United States. However, the Shanghai Composite barely moved, as fears of monetary tightening rose. “The manufacturing numbers in China came out stronger than expected, things are actually not as bad as people believe it to be,” said Choo Swee Kee of TA Investment Management. Most currencies rose against the dollar. Continue reading »

Indian manufacturing continued to expand in November – hitting the highest PMI reading in over six months. The news comes after India’s growth figure, released on Tuesday, surprised all but the most bullish of analysts: the economy grew at 8.9 per cent, ahead of the predicted 8.3 per cent. But all the good economic news leaves the central bank – and investors – with something of a dilemma. Interest rate hikes may now come sooner than thought, helping to address India’s current ultra-low real interest rates.  Continue reading »

China’s economy continued to power ahead last month according to the latest slew of purchasing managers index figures released on Wednesday, despite the enforced factory shutdown in southern China caused by November’s Asian Games.

The 2008 Olympics led a lot of analysts to miss the slump in the Chinese economy from the global financial crisis. With much of industry around Beijing closed down for several months during the August games in order to cleanse the air, it did not become obvious until October that the fall-off in industry was actually the result of weak demand, and not just a temporary blip created by the Olympics jamboree. Continue reading »

Indonesian per capita rice consumption is higher than anywhere else on earth. So when excessive rainfall hurts the crop, prices jump, people feel it in their pockets and policy makers take notice.

That’s exactly what has just happened. The central bank said Wednesday food prices soared 12.3 per cent in November, driving up headline inflation to an unexpectedly high 6.3 per cent year-on-year – nearly half a percentage point higher than some estimates.

With domestic demand strong across the board, the time may be coming for monetary tightening. Continue reading »

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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