Americas markets wrap: Brazil budget cuts hit homebuilders
Investors in Latin American stocks were cheered Monday by Saudi Arabia’s pledge to increase oil production, easing fears over crude prices as tensions continued in the Middle East. Continue reading »
$1bn for investing with the World Bank
Want to invest in emerging markets with the security of working with a World Bank-linked partner? Montreal-based Cordiant Capital has launched a $1bn loan fund, which allows institutional investors to participate in loans arranged by the International Finance Corporation (the World Bank’s private sector arm) and similar government-backed organisations.
The fund won’t go looking for the riskiest prospects in the emerging world. But it does invest in frontier markets. And it gives investors some useful extra safeguards. Continue reading »
HSBC: cuts to come
Stuart Gulliver, HSBC bank’s new head, recently told the FT that his love for Hong Kong – where the bank was first established – stems from the ability of those who inhabit the city to re-invent themselves.
The bank may need a little re-invention of its own, as it indicated on Monday when it announced its 2010 financial results. HSBC was positive about emerging markets, where it has such a strong franchise, but decidely negative about the impact on future profits of new global capital controls. Continue reading »
CEE markets wrap: Russia and Poland lead gains
Moscow and Warsaw led gains for central and eastern European stocks on Monday, as concerns about the economic impact of political protests in the Arab world eased.
In currency markets, the Polish zloty and Hungarian forint rose sharply, with each gaining around 1 per cent against the US dollar. Continue reading »
Brazil’s subprime crisis “disproved”
Barclays Capital has weighed into the debate on Brazil’s alleged subprime crisis with a report that sets out to prove there is no such thing.
Its main point is that while credit has been growing strongly in Brazil the amount of personal income that people dedicate to debt service has stayed pretty constant – and is likely to fall in the near future. BarCap is responding to an FT column by fund managers Paul Marshall and Amit Rajpal. Continue reading »
India’s budget: analysts not convinced
Markets cheered India’s 2010-2011 budget on Monday but the government has dodged key issues of policy reform.
Constrained by protests over stubbornly high food inflation, the finance minister delivered a “no surprises” budget as the government braces itself for elections in five key states this year amidst corruption scandals and high inflation. Continue reading »
Chart of the week: the lost Arab generation
Food price inflation, political stagnation and rapid population growth have fanned the fires of discontent among the enormous numbers of young people in the Middle East and north Africa who are unemployed and progressively better-educated .
As this week’s beyondbrics chart shows (below the break), the region has the highest rate of unemployment in the world and the second-slowest rate of economic growth – beating only the stagnant developed world. In terms of youth unemployment, though, it is in a losing class all of its own. Continue reading »
Thai trade rising but inflation looms
Thailand’s economy is picking up the pace – driven by international demand and rising commodity prices – but fears of inflation amplified by a global slowdown if the recent spike in the oil price is sustained could add a sour note to the party.
Thailand has just released another strong set of trade figures, with exports up 21 per cent year on year in January and imports – a useful leading indicator in a processing-driven economy – up 31 per cent. Continue reading »
Asia markets wrap: everything up
Asian stocks bounced back on Monday, on speculation that oil shipments from opposition-controlled areas of Libya may resume shortly.
The Philippine peso led a rally in Asian currency markets, with the Chinese renminbi and Indian rupee extending their recent gains. Continue reading »
China’s airport overkill
Around three quarters of China’s 175 gleaming airports are losing money, many are barely used and some don’t have any flights at all.
Beijing’s solution to this problem? Accelerate the building spree with a plan to add 45 new commercial airports over the next five years, bringing the total across the country to more than 220 by 2015. Continue reading »
New York headlines
* Agriculture reform key to India budget
* Libyan rebels consolidate gains
* World leaders unite against Gaddafi
* China: Premier sets 7 per cent growth target
* Groupon enters into China, teams with Tencent Continue reading »
India ducks the retail issue
In the run up to India’s budget, expectations were running high that New Delhi would finally bite the bullet on a crucial item of its unfinished reform agenda: opening the “multi-brand retail sector” – commonly known as grocery stores – to foreign participation.
But New Delhi still lacks the spine to take such a decision, despite a growing consensus among policy-makers that strengthening organised retail could be an important tool in battling the persistent food price inflation now seen as one of India’s biggest economic challenges. Continue reading »
China’s growth ‘target’ misses the point
On Sunday – in a hastily arranged web Q&A with Premier Wen Jiabao – China’s central government announced it will lower its growth target for the next 5 years - to a paltry 7 per cent a year.
While it may well be a statement of intent – Beijing wants growth to slow – it’s worth remembering how China’s growth in the last 5 years compared to the ‘target’ rate. Continue reading »
Further reading: Arab youth malaise
Monday global top picks from the beyondbrics team: the UN’s date with history, Alibaba’s refreshing honesty, Hong Kong’s rich and gilded, and a graphic on the impact of oil supply disruptions on the wider economy. Continue reading »
Indian stocks rise on budget
Indian stocks surged on Monday after finance minister Pranab Mukherjee presented the country’s annual budget. The main Sensex index gained more than 3 per cent before falling back, although reactions from analysts were closer to relief than euphoria.
Mukherjee said the government would target a budget deficit of 4.6 per cent for 2011-2012, compared with the 5.1 per cent expected for 2010-2011. India’s fiscal year runs from April to March. Continue reading »
| About this blog | Headlines email | Blog guide |
| Regulars | Series | Archive |
Older entries
Stefan Wagstyl
Josh Noble
Rob Minto
Pan Kwan Yuk
Jonathan Wheatley
Heba Saleh