Daily Archives: March 29, 2011

Copper: Kazakhmys fails to impress

March 29, 2011 7:52 pm by Simon Mundy

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As the copper price soared last year, driven by increased demand from construction and manufacturing as the global recovery got into its swing, producers of the orange metal were enjoying themselves.

London-listed Kazakhmys was no exception, as its results for the year to December showed on Tuesday – pre-tax profit climbed 55 per cent to $1.59bn, with earnings per share more than doubling to $2.72. With a $2.7bn credit facility from China Development Bank in the bag, the company is set to press ahead with a “significant capital expenditure programme” to chase new projects in Kazakhstan and Kyrgyzstan. So why do investors appear so wary? Continue reading »

Tags: commodities, copper Posted in Global | Permalink

Profits jump for Kiev chicken king

March 29, 2011 7:27 pm by Michael Kavanagh

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Ukraine’s leading poultry meat producer has shrugged off last year’s drought conditions and grain shortages to delivered a sharp increase in revenues and profits which jumped by a third.

Yuriy Kosiek, chief executive who also owns 65 per cent of the company which is quoted in London, said the improvement in profits in spite of poor weather reflected the strength of MHP’s “uniquely self-sufficient business model”.

Tags: agriculture Posted in Europe, Ukraine | Permalink

The end of the BRL carry?

March 29, 2011 7:00 pm by Jonathan Wheatley

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Is the carry trade running out of legs? Few investors seem to think so. If anything the Brazilian real, the great carry trade currency of choice, is still on a strengthening course – so much so that Brazil introduced fresh restrictions on foreign inflows on Tuesday, extending a 6 per cent financial transactions tax to short term loans and securities.

But there are two sides to every trade. And as the first signs begin to emerge of an end to quantitative easing and a start to tighter monetary policy in the developed world, investors should be aware that one day, maybe soon, spreads will tighten. And when that happens, the next step is for the carry trade to unravel. Continue reading »

Tags: interest rates, monetary policy Posted in Brazil, LatAm | Permalink

Telekom Srbija: game of bluff?

March 29, 2011 5:10 pm by Neil MacDonald

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Telekom Austria needs to put more money on the table for the government to give up control of Serbia’s main phone company, officials in Belgrade said on Tuesday.

The Vienna-based telecom group, the sole bidder for 51 per cent of Telekom Srbija, proposed to pay between €800m and €950m, depending on conditions still to be negotiated, with €450 of investments to follow within three years. But the government’s bargaining position is looking weak; it needs Telekom Austria a lot more the company needs it. Continue reading »

Tags: FDI, investment, telecoms Posted in Serbia | Permalink

Gome: the civil war is over

March 29, 2011 2:23 pm by Lydia Guo

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The battle for Gome is finally over. That was the message – delivered loud and clear – as the Chinese electricals retailer unveiled its first set of results since its newly elected chairman, Zhang Dazhong, took charge.

The market reaction suggests that Gome could be set for a peace dividend, with the company’s strategy now firmly set on one thing: expansion. Gome shares were up 2.8 per cent on Tuesday. Continue reading »

Tags: consumption Posted in Asia, China | Permalink

Metlife latest to sell up in Taiwan

March 29, 2011 12:50 pm by beyondbrics

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By Alfred Liu of mergermarket

Chinatrust Financial’s acquisition of US-based Metlife’s assets in Taiwan for $180m, announced Monday, is the latest in a line of deals struck within the Taiwan insurance sector.

Taiwan-based Chinatrust submitted an all-cash offer to MetLife, linked with a potential acquisition of 100 per cent of the issued and outstanding shares of MetLife Taiwan. Continue reading »

Tags: FDI, insurance, M&A, mergermarket Posted in Asia, Taiwan | Permalink

BP-Rosneft: time for a rethink?

March 29, 2011 12:21 pm by Stefan Wagstyl

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BP is rightly coming under growing shareholder pressure to explain what it is doing with its stalled Rosneft deal – or get out of the increasingly controversial $16bn-plus project.

Amid much anonymous grumbling, one big shareholder – Standard Life – went on record on Tuesday questioning BP’s proposals. With the deal deeply entwined in the complexities of the Kremlin and its relations with Russian big business, it is impossible to say how the dice will fall. But the whole affair has done nothing to enhance investor confidence in either BP or Russia. Continue reading »

Tags: oil & gas, Shell Posted in Russia | Permalink

New York headlines

March 29, 2011 11:58 am by beyondbrics

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* China bank regulator warns of property bubble risks

* Lenovo joins tablet war with LePad

* Global majors shun India oil, gas block auction

* Emerging world on science fast-track

* Walmart in talks to pick up stake in India’s Big Bazaar

* Ratan Tata, Anil Ambani to face PAC over 2G probe Continue reading »

Posted in Global | Permalink

Thailand’s military: bulking up

March 29, 2011 11:01 am by Tim Johnston

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It’s probably not an arms race, at least not yet, but south-east Asian governments seem to be out shopping for some very expensive military toys.

Submarines seem to be the flavour of the month, sparked perhaps by China’s decision to build a submarine base on Hainan island. Vietnam is buying six fast attack submarines from Russia, Malaysia has controversially bought two French subs, and Burma has been renewing its naval power. The latest entrant to this underwater build up is Thailand. Continue reading »

Tags: defence, investment Posted in Thailand | Permalink

Scramble for Africa, Part II

March 29, 2011 10:30 am by Akanksha Awal

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While China has made headlines – and generated controversy in the west – with its push into Africa, India has quietly been developing a big business presence on the continent in everything from gold to pharaceuticals.

Topping the trade charts, India has emerged as Africa’s fourth largest trading partners, behind the EU, China and the US. Continue reading »

Tags: FDI, trade Posted in Africa, India | Permalink

Renminbi bonds: dim sum for dull palates

March 29, 2011 8:17 am by Josh Noble

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Are we in a new race to the bottom? Unilever’s renminbi bond issue isn’t just the first from a European company, it also breaks new ground on yields. At just 1.15 per cent, not only does it trump recent dim sum issues by McDonald’s and Caterpillar, it’s also a lower yield than a 10-year Japanese government bond.

But for such a low yield on corporate debt, is it worth buying? Continue reading »

Tags: bonds, dim sum bonds, renminbi, RMB internationalisation Posted in China | Permalink

Chart of the week: nuclear power

March 29, 2011 8:10 am by Valentina Romei

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Japan’s nuclear crisis has left many countries reviewing their plans to build reactors. Emerging countries generally depend less on nuclear power than developed ones – but their capacity has often been rising more quickly, with big plans for more.

Our chart this week (after the break) shows the role of nuclear power in selected emerging markets. Countries to the right of the chart are more dependent on nuclear energy; those nearer the top have been expanding their nuclear capacity more quickly. Continue reading »

Tags: chart of the week, Nuclear Crisis, nuclear power Posted in Global | Permalink

London headlines

March 29, 2011 5:38 am by beyondbrics

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* Global majors shun India oil, gas block auction

* Emerging world on science fast-track

* Walmart in talks to pick up stake in India’s Big Bazaar

* Ratan Tata, Anil Ambani to face PAC over 2G probe

* Saudi Arabia to spend more than $100bn on power plants, distribution Continue reading »

Posted in Global | Permalink

AviancaTaca to test investor demand with IPO

March 29, 2011 1:48 am by Naomi Mapstone

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AviancaTaca has piqued investor interest with its first initial public offering of 11.1 per cent of the airline’s shares.

Investors are expected to rush for a slice of the $270m offering by one of Latin America’s dominant carriers, the product of a 2009 merger between Colombia’s flagship carrier and Central America’s Taca. Continue reading »

Tags: aviation Posted in Colombia, LatAm | Permalink

beyondbrics

Daily Archives: March 29, 2011

Copper: Kazakhmys fails to impress

Profits jump for Kiev chicken king

The end of the BRL carry?

Telekom Srbija: game of bluff?

Gome: the civil war is over

Metlife latest to sell up in Taiwan

BP-Rosneft: time for a rethink?

New York headlines

Thailand’s military: bulking up

Scramble for Africa, Part II

Further reading: Keeping up with the Gaddafis

Renminbi bonds: dim sum for dull palates

Chart of the week: nuclear power

London headlines

AviancaTaca to test investor demand with IPO

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