Andean ETF taps Latin enthusiasm
“Three for the price of one” works just fine on the sales tables of department stores the world over, so why not the stock market?
An exchange-traded fund that launches on the New York Stock Exchange Thursday morning is the first to target the Chilean, Colombian and Peruvian bourses, which will soon combine to become Latin America’s second-biggest market after Brazil. Continue reading »
Breaking Moscow’s markets logjam
Now that Moscow’s main bourses are set to merge, foreign investors will likely find it much easier to get a slice of Russian companies. And that in turn, according to the FT’s Jeremy Grant and Catherine Belton, “is a boost to Russia’s ambitions to build up Moscow as a financial centre to match those in London, Frankfurt and beyond” – particularly those, like London, where many Russian companies list GDRs. Continue reading »
Americas markets wrap: Brazil industrial output weighs on Bovespa
Latin American markets were mixed on Wednesday as Brazilian macroeconomic data weighed on the Bovespa index, while an upbeat US employment report lifted Mexican stocks.
A surprise fall in Brazil’s industrial output sent stocks lower, while investors trimmed yields on interest-rate futures contracts, which have hit new highs this week. The Bovespa shed 1.7 per cent on Wednesday, as credit card processors Cielo and Redecard slumped after their ratings were cut by HSBC on concerns over competition. Homebuilders also fell today, but Banco Panamericano rose a record 26 per cent following Monday night’s news that it would be sold to BTG Pactual. Continue reading »
Meirelles, the right man for the job
By Andrew Downie
It had looked as though Henrique Meirelles, Brazil’s former central bank governor, would struggle to find a role in Dilma Rousseff’s new government.
But he is now being touted for several high-profile positions. Any of them would suit a man widely respected for his professionalism and administrative skills. And getting him on board would give extra credibility to the Dilma administration – already surprising many with its seriousness. Continue reading »
CEE markets wrap: equities mixed
Central and eastern European stocks enjoyed mixed fortunes on Wednesday, as easing concerns about political protests in Egypt were offset by disappointing corporate earnings in continental Europe.
“The strong showing in Russia and Turkey reflects a belief that the worst of the disruption is over in Eygpt,” Neil Shearing, emerging markets economist at Capital Economics, told beyondbrics. “The markets will continue to recover as negotiations for a political transition get under way.” Continue reading »
Brazil inflation: Dilma vs the market
Brazilian interest rate futures have hit new highs this week as investors continue to demonstrate how little they trust the Dilma administration to defeat inflation and deliver a significant fiscal adjustment.
How so? After barely a month in office, the government could hardly have sent stronger signals that it means business on both the monetary and fiscal sides. For investors, though, talk is not enough. And the longer the government takes to deliver on its promises, the more investors will demand. Continue reading »
HK book printer turns to cigarette packets
A sign of the times? A Hong Kong company has announced it will diversify away from the high arts of literature to the low art of selling cigarettes for the growing number of Chinese smokers.
Hong Kong-listed CT Holdings announced on Wednesday that it will acquire cigarette package maker Brilliant Circle Holdings (BCH) for HK$2.4 billion, in order to offset slowing demand for books in the developed world. Continue reading »
Chart of the week: Bric M&A boom
By Valentina Romei and Barney Jopson
Companies from emerging markets have cemented their position on the global M&A scene with giant cross-border deals such as Bharti Airtel’s $10.7bn purchase of Zain’s Africa assets and Sinopec’s $2.45bn purchase of Occidental Petroleum’s operations in Argentina.
It’s often presumed that they are why the value of emerging market M&A deals has risen so sharply: up 63 per cent in 2010 from the previous year, compared to a 10 per cent rise in developed countries. But this week’s beyondbrics chart (after the page break) shows that over the past four years the amount of domestic M&A within the Bric countries has exceeded cross-border activity by a long way. Continue reading »
[snap] India’s ex-telecoms minister arrested in graft probe
At last, an arrest in India’s biggest-ever politico-financial scandal.
Indian federal investigators on Wednesday arrested former telecommunications minister Andimuthu Raja as they probe a mobile-phone licence auction at the center of corruption claims, reports Bloomberg. Continue reading »
Egypt: markets calm despite army/protestor tensions
Egyptian equities and bonds traded offshore were largely unchanged on Wednesday as investors tried to make sense of president Hosni Mubarak’s pledge to step down, and moves by the army to persuade protestors to clear the streets.
Investors in the Gulf had fewer doubts, with equities rising sharply in Dubai and elsewhere. Continue reading »
Turkey: Egypt a mixed blessing?
The flow of protestors in Cairo’s Tahrir Square have unsettled markets across the region. In Turkey, investors already had doubts over the central bank’s unorthodox policy initiatives. Egypt’s intensifying political crisis swung sentiment against emerging markets, hitting the lira and prompting a sharp sell-off in Turkish equities and bonds.
“There’s a general feeling that the CBT [Turkish central bank] could not have picked a worse time to experiment,” said Nicholas Spiro, at the consultancy Spiro Sovereign Strategy, while analysts at the brokerage EFG Istanbul Securities said the “safe-haven credentials” of Turkish assets had “no doubt taken a bit hit”. Continue reading »
Asia markets wrap: stocks, currencies gain
Asian stocks rose on Wednesday, as strong corporate earnings and manufacturing data from the US buoyed investors. Asian currencies rose sharply against the dollar, with the Chinese renminbi up 0.2 per cent.
“There’s a sense of relief that unrest in Egpyt is not spinning out of control, and that’s boosting risk appetite,” Kevin Grice, China economist at Capital Economics, told beyondbrics. “But political tensions in the Middle East are likely to continue to weigh on markets over the coming months.” Continue reading »
New York headlines
* Egyptian army calls for protests to end
* Fed passes China in Treasury holdings
* US firms, China are locked in major war over technology
* Fast food battle heats up in China
* Copper may extend record run as China recovery accelerates Continue reading »
Further reading: Islamists, and a rabbit
From the FT:
From elsewhere:
China luxury: from Paris with love
It’s becoming something of a cliche to talk about China’s growing economic might in terms of Louis Vuitton handbags and bottles of vintage Lafite Rothschild. But for businesses and investors alike, understanding the luxury goods market is increasingly a must.
China is set to become the world’s largest market for high-end goods over the next decade – according to a new report from CLSA, there are already some lessons being learnt already on how to make the most of it. Continue reading »
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