A Mexican telecoms soap opera
Things are getting plain ugly in Mexico’s corporate world. On Wednesday, TV Azteca, the Mexican television network, said that it had suspended talks with companies controlled by telecoms billionaire Carlos Slim over advertising for this year.
The breakdown came about after the network, one of only two in Mexico, tried to condition the negotiations to more favourable telecoms interconnection charges from Slim for Iusacell, Azteca’s sister company. Continue reading »
Americas markets wrap: Stocks mixed on oil price volatility
A late-day easing of oil prices took some pressure off risky assets, and most Latin American currencies firmed against the dollar, while Mexican and Brazilian stocks were little changed after moving in and out of positive territory over the day.
Brazil’s Bovespa added 0.06 per cent on Thursday as well received earnings boosted some heavyweight stocks, outweighing declines among steelmakers. Vivo, the wireless operator, gained 4.1 per cent after Q4 income more than quadrupled, while Klabin, the paper and pulp maker, soared 7.1 per cent after swinging to a profit of R225m in the fourth quarter. Continue reading »
Remittances are a fascinating and oft neglected slither of global capital markets. Flows are inherently difficult to measure but the World Bank estimates ‘developing’ countries received in excess of $300bn in 2009 and 2010 — around three times more than official aid flows.
In a report out Thursday the CBO estimates that in 2009 $48bn of these remittances came from the US. Behind the numbers, texts and wire transfers are millions of untold human stories, too. And as a post on the People Move blog from earlier in February points out, migrant savings represent a store of untapped wealth that exists aside global debt markets. Continue reading »
Argentine teachers threaten strike
When the Argentine government sealed a minimum pay deal with teachers’ unions a few days ago, one union leader said he estimated that “in most provinces the school year will start normally”.
That looks increasingly unlikely. Union leaders in the federal capital and 10 of Argentina’s 23 provinces are threatening to strike next week, when the nation’s children are reluctantly supposed to be starting school after their languorous 2-1/2-month summer break. Continue reading »
Ukraine: free speech vs Firtash
Journalists, writers and media freedom campaigners are, not surprisingly, delighted with the decision of a British judge on Thursday to throw out a libel claim filed by a Ukrainian billionaire against a Ukrainian newspaper.
Business people should be equally glad: the ruling will make it more difficult for foreign litigants to take advantage of Britain’s tough libel laws. Since these laws have often been used to suppress allegations of financial wrongdoing, it is in the interests of business people everywhere that journalists working in Ukraine and elsewhere can breathe a little more easily. The advance of corporate transparency depends critically on the advance of media freedom. Continue reading »
CEE markets wrap: Turkey falls further
Turkish stocks plummeted to their lowest in five months on Thursday, on concerns that higher oil prices triggered by violence in Libya will lead to higher interest rates.
Elsewhere in central and eastern Europe equities were mixed, with falls in Poland and modest gains in Russia and Poland. CEE currencies rose against the dollar. Continue reading »
Oil spike: Russia’s eurobond in demand
Russia raised Rb40bn ($1.37bn) from its first-ever rouble eurobond on Thursday as investors, watching unrest in Libya roil the oil price, look to gain exposure to one of the world’s biggest oil exporters (and to the rouble itself, which hit a ten-month high).
The issue was priced with a yield of 7.85 per cent, lower than the 8 per cent “whisper price” bankers said had been expected. Continue reading »
Oil subsides as Saudi Arabia steps in
The price of Brent crude relaxed towards the end of London trading on Thursday after spiking at more than $119 during the morning (see chart after the break).
Traders and investors were reassured after Saudi Arabia began talks with European oil companies to make up for lost production in Libya. The benchmark contract for April delivery fell back to $114.22 by late afternoon. But further fluctuations were likely as Colonel Muammer Gaddafi appeared determined to cling to power in Tripoli. Continue reading »
Russia & the Jasmine revolution bug
Will Russia’s Muslims catch the Middle East’s revolution bug? It is not something the Kremlin is ruling out, apparently.
Russia has been publicly critical of the popular uprisings that have swept the Middle East since the start of this year. President Dmitry Medvedev (pictured) earlier this week called the revolutionaries “fanatics” during a security meeting, and said: “All that is happening there will have a direct impact on our situation … This is a large complex problem which requires serious effort over a very long time.” Continue reading »
UK corruption swoop: Mid East edition
Corruption at the very top of Arab governments is helping fuel the revolt sweeping the Middle East, toppling regimes in Tunisia and Egypt, and now threatening Libya and even the monarchy in Bahrain.
But bribery is also about to become a risk, especially for British business, both individuals and companies. Continue reading »
Just yesterday the chief economist at the Centre for Global Energy Studies was explaining calmly why the oil price was unlikely to hit $150 a barrel. Today, it has taken a huge jump in that direction, peaking at more than $119.
Analysts are scrambling to update their forecasts. Some more of their important/interesting thoughts are after the break. Continue reading »
iPad v Indiapad
In India, high-tech gadgetry is seen first in the hands of well-heeled city folk returning from overseas. But local manufacturers are quick to catch on and make cheaper products adapted to local needs. It happened with TV sets two decades ago and it’s happening now with tablet PCs and touchscreen phones.
Apple’s iPad was launched in India only in January but an estimated 40,000 of them have made it into the country since its international debut in April 2010. At a starting price of Rs27,995 (US$622), Apple is targeting affluent consumers. But the overall tablet PC market is much wider than Apple’s clientele. Continue reading »
New York headlines
* Crude breaches $119 in frantic trading
* Gaddafi embattled by opposition gains
* Saudi’s $36bn bid to beat unrest
* South African retailer Massmart sees leaner times ahead Continue reading »
Asia markets wrap: Mumbai plummets
Indian stocks suffered their biggest fall in nine months on Thursday, on speculation that food inflation and soaring oil prices will lead to monetary tightening. Elsewhere in Asia, equities mostly fell.
“The geopolitical risk has flared up; if oil goes up it’s a big risk [to India],” said Amit Nigam, a fund manager at BNP Paribas Asset Management India Private in Mumbai. “Investors would like to watch in the budget how the finance minister manages the fiscal and current account deficit, and sustains the pace of growth.” Continue reading »
Oil spike: pros and cons for Brazil
Brazil’s approaching status as a major oil producer suggests higher oil prices should be cheered in the country.
But the short-term impact could be less welcome. This is not because of inflation: the prices of fuel and other refined products are controlled in Brazil. But if expensive oil causes economic pain around the world, that will hit demand for Brazil’s commodity exports. Continue reading »
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