Daily Archives: April 1, 2011

Americas market wrap

April 1, 2011 9:03 pm by Anora Mahmudova

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Latin American stocks finished the week on a high note, as investors returned to risky assets after positive job data in the US while shrugging off global uncertainties. The MSCI Latin America index rose 1.2 per cent or a gain of 4 per cent for a week to 4,690 reaching the highest level since the begining of the year.

Brazil’s bernchmark Bovespa index rose 0.99 per cent to 69,268, a two-month high. Brazilian equities were boosted by positive economic data this week. The country reported a fiscal surplas, leading investors to believe that the central bank may stop the rate hikes cycle. Continue reading »

Posted in Uncategorized | Permalink

Venezuela’s power crisis: not solved after all

April 1, 2011 8:58 pm by Benedict Mander

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Earlier this week, beyondbrics was cursing immoderately at having to type out the same (quite lengthy) email three times, thanks to repeated power cuts in an internet café in a small Venezuelan town on the Colombian border. Continue reading »

Tags: energy, infrastructure, oil & gas Posted in LatAm, Venezuela | Permalink

China Tel makes its move in Peru

April 1, 2011 8:00 pm by Naomi Mapstone

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It costs about 30 cents to check your email in Peru if you duck into one of thousands of grimy internet cafés that also offer photocopying, scanning, printing and international phone calls. In a country with low levels of internet penetration and service providers that charge like wounded bulls, these little “cabinas” are essential.

But they – and big internet providers Telefonica and Telmex – are about to face a new challenge with the arrival of US-based China Tel. Continue reading »

Posted in Peru | Permalink

Argentine farmers struggle as China stops buying soya oil

April 1, 2011 7:30 pm by Jude Webber

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Argentina is China’s top supplier of soya oil and bilateral trade in the commodity was supposed to have got back on track last October after a hiatus when Beijing barred the oil for failing to meet quality standards (industrialists said it was a tit-for-tat measure promoted by Argentine anti-dumping measures).

So it can hardly be good news that China hasn’t bought Argentine oil for months, according to the head of the oil industry chamber in Argentina, Alberto Rodríguez. Continue reading »

Tags: agriculture, China-Argentina, China-Latin America, commodities Posted in Argentina, LatAm | Permalink

Russia: plugging into the market

April 1, 2011 6:59 pm by Isabel Gorst

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The state company operating Russia’s sprawling electricity grid has long been seen as the last of the Soviet behemoths, closed, inefficient and burdened with aged infrastructure.

But in a move to change its image, the Federal Grid Company this week listed on the London Stock Exchange and pledged to become one of the world’s most innovative electricity transmission businesses. Time will tell: as the history of Gazprom (international listing in 1996) it takes time to turn an ex-Soviet monopoly into a modern corporation, if the Russian state retains control. Continue reading »

Tags: electricity, privatisation Posted in Russia | Permalink

Unilever in China: the price is right

April 1, 2011 6:25 pm by Alexandra Stevenson

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Unilever

The Chinese government has been pretty busy of late convincing Chinese shoppers not to panic buy. Two weeks ago Chinese hit stores in a rush to buy salt, after hearing news that Japan’s nuclear disaster could hit China. This week soap and instant noodle packages flew off the shelves of stores nationwide as Chinese read about companies planning to raise prices by 5 to 15 per cent.

The National Development and Reform Commission (NDRC) intervened, asking Unilever to hold off on raising the prices, in the latest indication that the government is concerned about rising consumer inflation. It appears that the company listened. Continue reading »

Tags: China inflation, consumption, inflation Posted in China | Permalink

Deal of the day – Schneider electric buys DigiLink

April 1, 2011 6:23 pm by Akanksha Awal

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Why would a profit-making company sell a part of its business that provides 90 per cent of its revenues? Because the company’s majority stakeholder is extremely bullish on a new growth segment.

Smartlink Network Systems of Mumbai sold its structured cabling business to Schneider Electric India, a fully-owned subsidiary of the French electrical equipment maker, for $112m in an all cash deal on Thursday. The DigiLink business earned $34.7m in the calendar year 2010, 90 per cent of Smartlink’s revenues.

Tags: infrastructure, M&A, telecoms Posted in Asia, India | Permalink

Ukraine: the hunt for corporate credit

April 1, 2011 3:50 pm by Stefan Wagstyl

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How does a little-known Ukrainian company with big ambitions raise money when the country is still strugging with the after-effects of the global financial crisis?

By paying a chunky premium, that’s how. For Mriya, a farming group with 240,000 hectares in western Ukraine, a combination of rapid sales growth and chunky profit margins means that it is worth raising $-denominated loans even at 11.25 per cent. But the numbers highlight how hard companies in financially-vulnerable countries have to work to finance themselves. Continue reading »

Tags: agriculture, credit Posted in Ukraine | Permalink

Philippine duopoly cheers market

April 1, 2011 3:00 pm by Roel Landingin

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Memories of the past as much as future expectations helped to give Philippine share prices a big push upwards in the week ending April 1. Manila’s main stock index surged 6.5 per cent from a week ago on the back of what could be the country’s biggest takeover deal – the Philippine Long Distance Telephone Co’s 74.1bn peso (US$1.7bn)offer to acquire Digital Telecommunications Philippines (PLDT).

The deal, which is expected to be completed by end-June, removes a small but highly competitive rival, leaving the lucrative mobile phone market to only two main competitors. Continue reading »

Tags: equities Posted in Philippines | Permalink

India’s 1.2bn: not enough girls

April 1, 2011 1:30 pm by Amy Kazmin

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The first day of news on India’s once-in-decade census was focused on the sheer size of India’s population, which has increased by 181m to reach 1.21bn. By day two, a much darker statistic stands out.

According to the provisional results of the massive counting exercise, the ratio of girls to boys among Indian children under six years old, has plummeted, and is now a mere 914 girls for every 1000 boys. That’s down from a ratio of 927 girls to every 1,000 boys back in 2001. Clearly the country’s rapid economic growth has yet to transform traditional social attitudes. Continue reading »

Tags: population Posted in India | Permalink

Turkey: first blood in arguments over unorthodox monetary policy

April 1, 2011 12:40 pm by Delphine Strauss

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The arguments in Turkey over the central bank’s controversial monetary policy are getting personal.

On Thursday, Ersin Ozince, the conservative chief executive of Isbank, Turkey’s largest non-state bank, unexpectedly resigned after more than 30 years in the group – 13 of them as chief executive. He hasn’t said why he is going – but he quit the day after he criticised the authorities for trying to cool the economy by tightening controls on banks instead of applying standard policies and raising interest rates. Continue reading »

Tags: banking, monetary policy Posted in Turkey | Permalink

It’s official: Agnelli to leave Vale

April 1, 2011 12:17 pm by Jonathan Wheatley

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Vale, the Brazilian mining giant, has confirmed that, after months of government pressure, Roger Agnelli, chief executive, will stand down when his mandate ends in May.

The company, which spares no efforts when it wants to publicise good news but reticent in revealing the bad, revealed Agnelli’s departure in a terse note sent to Brazil’s securities regulator at 21:12 local time on Thursday (01:12 GMT on Friday). Continue reading »

Tags: commodities, mining, politics Posted in Brazil, LatAm | Permalink

New York headlines

April 1, 2011 12:01 pm by beyondbrics

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* Vale’s main shareholders’ group seeks replacement for CEO

* China’s 360buy raises $1.5 billion

* China manufacturing grows at faster pace, resists tightening

* Indian census shows slower population growth

* Guangdong Development Bank said to plan $4bn dual listing Continue reading »

Posted in Global | Permalink

South Korea’s Kospi: rally time

April 1, 2011 11:50 am by Song Jung-a

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Stocks in South Korean companies are going through the roof again on resumed foreign buying, but investors are not sure how long the rally will continue.

Foreign investors bought a net Won731.3bn worth of Korean shares on Friday alone, extending their buying to a 12th straight session, the longest run of net purchases this year. Such aggressive buying lifted the Kospi benchmark index up 0.7 per cent on Friday to an all-time closing high of 2,121.01. Continue reading »

Tags: equities Posted in South Korea | Permalink

Mukesh’s plan: Bank of Ambani?

April 1, 2011 10:23 am by James Fontanella-Khan

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Last Sunday late in the afternoon when most of the world’s was enjoying the remaining hours of their weekend Mukesh Ambani, India’s richest man, announced his entry into the lucrative world of finance via a joint venture with DB Shaw, a hedge fund.

The joint statement of the two groups issued lacked any kind of financial details and when beyondbrics contacted them they refused to comment. So what is Ambani planning to do? Does he want to set up a mutual fund? A hedge fund? Rumour has it India’s richest man is planning to set up Bank of Ambani. Continue reading »

Tags: banking Posted in India | Permalink

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Daily Archives: April 1, 2011

Americas market wrap

Venezuela’s power crisis: not solved after all

China Tel makes its move in Peru

Argentine farmers struggle as China stops buying soya oil

Russia: plugging into the market

Unilever in China: the price is right

Deal of the day – Schneider electric buys DigiLink

Ukraine: the hunt for corporate credit

Philippine duopoly cheers market

India’s 1.2bn: not enough girls

Turkey: first blood in arguments over unorthodox monetary policy

It’s official: Agnelli to leave Vale

New York headlines

South Korea’s Kospi: rally time

Mukesh’s plan: Bank of Ambani?

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