Daily Archives: December 22, 2010

Vienna - home to history and financeThe FT is publishing rankings of emerging market fund performance prepared by Lipper, the funds research company. Here is the second profile of one of the top performing funds.

Among the top-performing bond fund managers of 2010 is a little-known Austrian company with a formidable record. ZZ1, managed by Vienna-based ZZ Vermoegungsverwaltung, has come top among bond funds with $500m-plus under management, with a return in dollar terms of 23.3 per cent in the year to December 20, according to Lipper, the research company.

In a rare interview, Peter Pühringer, 68, the company’s wealthy and publicity-shy chairman, has told Chris Bryant, the FT’s Vienna correspondent, how he does it – and what he expects for 2010. Continue reading »

The FT is publishing rankings of emerging market fund performance prepared by Lipper, the funds research company. Here is the first profile of one of the top performing funds.

What do Japanese bond fund managers know that their competitors around the globe do not? According to rankings prepared for the FT and beyondbrics by Lipper, the funds research company, Japan-based funds have performed spectacularly in 2010 among emerging market bond funds.

According to Lipper, Japan-based funds account for seven of the top emerging market bond funds, and seven of the big funds with $500m and more under management. The returns, in US dollar terms, for the year up to December 20 ranged from 18.1 per cent to 28.6 per cent. So what’s their secret? The FT’s Lindsay Whipp tried to find out. Continue reading »

Brazil's BovespaIn Brazil, a rally in financial shares lifted the Bovespa for the second day. Gains were limited, however, as retailers fell on inflation concerns, and Gol, the airline, sank 2.2 per cent on worries over a potential nationwide strike.

But slower-than-expected US growth dragged Mexico’s IPC lower, with shares of cement maker Cemex and consumer products group Kimberly-Clark de Mexico falling. And in Chile, stocks slipped as commodities prices were hit by profit-taking. Continue reading »

Mexico is again wrapped in a tortilla crisis, with the high cost of corn threatening to hit hungry families where it hurts. Now the government has taken an unprecedent step – announcing that it has bought futures contracts to ensure the supply and price of corn until the third quarter of next year. The full FT report is online here.

It’s unclear how far-reaching the futures – a form of insurance against commodity price rises – are. But the fight over tortilla prices is unlikely to go away: tortilla-makers want to raise prices by 50 per cent; the economy minister has warned them not to; and anti-monopoly investigators have opened a probe into unfair practices. French fry, anyone?

Two high profile economists have offered starkly different views of India’s much celebrated growth story. What do you think? Join the debate in the comments section.

Amartya Sen, respected scholar and Harvard professor, has challenged India’s ambitions to reach double-digit economic growth. He says that the world’s largest democracy would do better to concentrate on feeding its 1.2bn people properly than chasing Chinese performance.

Single-minded pursuit of China’s growth rates, he says is “very stupid”. Likewise, he says comparisons between the growth rates of the two countries, frequently made by some policymakers and financial analysts, are of no interest. Continue reading »

CEE markets largely rose on Wednesday, with Russia’s Micex extending its two year-high. Policy decisions yielded few surprises, with both Poland and the Czech Republic holding interest rates at record lows, while Romania’s parliament approved a budget intended to satisfy the conditions of an IMF loan. The Russian rouble rose to a 12-week high against its euro-dollar basket, helped by impending tax payments. Continue reading »

By Oliver Balch in Buenos Aires

Amid the excitement over Latin American equities, Argentina’s relatively small exchange is often overlooked. Yet the country’s Merval index has risen 48 per cent this year – more than its peers than Colombia, Brazil and Mexico, and behind only Chilean and Peruvian stocks. All-time records have been broken almost continuously over recent months.

Banks have led gains, with BBVA Banco Frances up 91 per cent since January 1 and Grupo Financiero Galicia – picked as the top Latin American banking stock outside Brazil by JPMorgan back in August – up an extraordinary 185 per cent. Continue reading »

China obviously thinks it has an image problem in Africa.

That’s the conclusion many attendees came to at the “Ceremony for China-Africa Friendship Award – The Top 10 Chinese Enterprises in Africa” that was held in the Great Hall of the People in Beijing on Tuesday. Continue reading »

Another day, another record price for rubber.

Two years ago south-east Asian producers were talking about grubbing up rubber trees in an attempt to bolster the price of latex. They didn’t do it, and just as well – growing demand and tight supply have driven prices up into previously uncharted territory. Continue reading »

Strong historic ties between New Delhi and Moscow have not done much to further the Oil and Natural Gas Corporation’s quest for Russian oil assets as yet. But the Indian state oil company’s prospects appear to be improving, as it mulls an equity tie-up with Sistema, Russia’s fastest growing oil company.

ONGC has made no secret of its desire to acquire Russian oil assets to ease India’s dependence on Middle East supplies. So far its Russian portfolio includes a minority stake in the Sakhalin 1 oil project in the Pacific and Imperial Oil, an oil company in west Siberia it bought for $2.4bn last year in a deal that analysts said was overpriced. Continue reading »

* China ready to buy $6.6 billion of Portugal debt: report

* Brussels to probe government aid for Malev

* Emerging markets deals lead 16 per cent rise in M&A

* Bank of Moscow in embezzlement probe

* Jindal Steel acquires 41 per cent of Ispat Industries in $3 bn deal Continue reading »

Asian stocks slipped on Wednesday, after rallying in the previous session. In Mumbai, steelmaker Ispat gained almost 12 per cent, after JSW Steel bought a near-majority stake in the company for $476m, precipating an open offer for up to 20 per cent of the remaining shares. The deal, the biggest by an Indian steelmaker in over three years, will make JSW the country’s biggest player in the industry. With the holiday season approaching, trading volumes were around half their 90-day averages in most markets. Continue reading »

In Beijing on Tuesday, long lines began to form around gas stations across the city. It was one of the first tangible signs of the government’s decision to raise fuel prices, which went into effect Tuesday at midnight.

Although the drivers waiting in line may have been worried about their pocket books, the increases are not all that large: gasoline now costs a maximum of 8,530 rmb per tonne (which is less than one dollar per litre), up from 8,220 rmb per tonnne. Diesel prices are now capped at 7,780 rmb per tonne, from 7,480. Continue reading »

From the FT:

From elsewhere:

Indian micro-lenders have had little to cheer about since October, when a political backlash in Andhra Pradesh state created major disruption to their operations, and prompted local banks – which had been lending generously to the institutions – to freeze their credit lines.

But Indian micro-lenders, especially smaller, socially-oriented players harder hit by the sudden liquidity squeeze, are now receiving a much-needed holiday gift from the Grameen Foundation – the US-based organisation that promotes ethical microfinance - and two of its affilates Grameen Capital India, and Grameen-Jameel .  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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