Daily Archives: May 6, 2011

Latin American stocks rallied strongly on Friday, after positive US jobs data eased fears about the health of global economy and commodity prices bounced back from their harsh sell-offs during the previous session. The MSCI Latin American index rose 1.4 per cent to 4,437, however it lost 4.3 per cent over the week. Brazil’s benchmark Bovespa index rallied 1.59 per cent to 64,417, helped by the news that inflation growth has slowed last month. The index still clocked up losses of 2.6 per cent over the week. Continue reading »

If there’s one thing a Brazilian central bank chief doesn’t want to see at the end of a long year, it is high inflation. By law, if inflation exceeds the official target of 4.5 per cent plus or minus 2 percentage points as of December 31, the central bank president has to swallow his pride and write an open letter explaining himself to the finance minister.

At this stage, there is little reason to expect that the present central bank boss, Alexandre Tombini, will face such an impasse come the new year. Annual inflation is steadily rising, breaching the target range last month, and is expected to touch 7 per cent in August. But monthly inflation is slowing. Continue reading »

Indian consumers’ fanatic love for gold is known the world over, especially during religious festivals and the country’s glittery wedding seasons. But if you couple the two with a fall in the price of their favourite metal the outcome is explosive.

Demand for bullion in Asia’s third largest economy has spiked in recent weeks as consumers have gone on a buying spree ahead of Akshaya Tritiya, a Hindu festival considered auspicious to buy gold, and the pre-monsoon wedding period. Continue reading »

By Edward Davey of Acción Social

Somewhat unusually, Juan Manuel Santos began his first day as Colombian president last year with the elders of the millenarian indigenous tribes that live on the slopes of the Sierra Nevada de Santa Marta, the snow-capped Andean mountain range that runs down to the country’s Caribbean coast.

That same afternoon, having flown to Bogotá, President Santos told the nation in his inaugural presidential address of the moment of “transcendental significance” he had experienced that morning. Continue reading »

By Alejandro Gaviria of the University of the Andes

Colombia has long been an atypical country, at least in Latin American terms. During the second half of the 20th century, it never experienced an economic meltdown or a rash of populist policies, let alone hyperinflation or the coup d’etats that almost defined the rest of the region. Colombia rode the usual business cycles that any commodity-producing country endures. But, in general, it was an oasis of economic quietude in a cauldron of volatility. Colombia’s gradualism was the exception that proved the instability of the Latin American rule. Continue reading »

Is the business and economic impact of improving cross-Strait ties turning out to be more hype than reality?

As the 2012 presidential election in Taiwan approaches, the question is increasingly weighing on the minds of voters, politicians and analysts. Early polls showing that president Ma Ying-jeou is running even with opposition candidate Tsai Ing-wen – despite a double-digit economic growth rate last year – certainly indicates that the average Taiwanese does not believe improving cross-Strait ties have made them better off. Continue reading »

By Clare Nuttall of business new europe

Kazakhstan plans to create a wholesale electricity market in a bid to attract more investment to the generation sector, according to the head of the country’s grid operator.

Legislation paving the way for the new market has been drawn up by national grid operator Kegoc and approved by Kazakhstan’s economic policy board, headed by Karim Massimov, the prime minister. It is due to go before parliament in the near future. Continue reading »

Bharti Airtel, India’s biggest mobile phone operator and the world’s fifth largest, saw profits fall by 31 per cent in the fourth quarter of FY 2010-2011 compared with last year, weighed down by its African operations where its business has been growing at a tenth of the rate in India.

The figures confirm analysts’ fears expressed when Bharti bought the African assets of Zain, the Kuwaiti operator, in June 2010 in a $10.7bn deal. But Bharti has been even slower to break even in Africa than analysts predicted. Continue reading »

Friday’s best picks from the beyondbrics team: Investors abandon commodities, the new geopolitics of food, does China have enough people?….and, Ronaldo finds a new ball game. Continue reading »

* Commodities weaken ahead of US data

* Bin Laden raid reveals US rail terror plot

* Fears linger of new ‘flash crash’

* Medvedev fights to attract private equity

* Brazilian imports of US ethanol soar Continue reading »

What should super-star athletes do after they retire? That depends on their personal interests but also the economic opportunities available to them.

Brazilian footballer Ronaldo, who explains his decision to found a sports marketing company in an interview in today’s FT, has chosen one of the fastest-growing sectors in his country’s booming economy. Continue reading »

By Yu Cher Jou of mergermarket

Steel structure, Kuala LumpurDemand for steel products in Malaysia is set to rise as the government rolls out infrastructure and transportation projects.

Lion Industries, which claims a 40 per cent share of Malaysia’s market for steel bars and is one of the biggest steel makers in the country, recently said it would spend MYR3bn ($987m) on upstream expansion and on Wednesday announced a small but significant downstream investment in distribution. Continue reading »

China’s census released last week showed that that the number of people aged 60 and above rose by 48m over the past decade, giving the populous nation a median age of 34. The rapid rise in its greying population is prompting speculation that Beijing will further relax its one-child policy.

But even in a command and control economy, demographics will follow its own incremental time-table. A baby-boom simply isn’t on the cards. Continue reading »

Bric funds run by Goldman Sachs and Franklin Resources were among the hardest hit in the panic selling of oil and other commodities that reached a peak on Thursday.

The size and speed of Thursday’s sell-off prompted market rumours that a hedge fund had blown up in a liquidity squeeze, although there was no evidence to support this. Continue reading »

* Bin Laden raid reveals US rail terror plot

* Medvedev fights to attract private equity

* Brazilian imports of US ethanol soar

* Tata hands Jaguar £5bn to match German rivals

* Carlyle faces questions over China investments

Continue reading »

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