Daily Archives: May 9, 2011

Americas market wrap

May 9, 2011 8:13 pm by Anora Mahmudova

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Latin American stocks were mixed on Monday. The major regional indices made modest gains, while the MSCI Latin American index fell slightly, down 0.5 per cent to 4,414, mainly because it tracks individual stocks rather than indices.

Latin American currencies were mixed on Monday. Colombia’s peso fell 1 per cent, leading regional declines, as rising default risk in Greece and lingering concern about world growth led investors to close out bets that the currency will continue rising. Brazil’s real shed 0.19 per cent to 1.618 per dollar and Mexico’s peso reversed declines to gain 0.13 per cent to 11.6235 per dollar. Continue reading »

Posted in Global, LatAm | Permalink

Argentina election: A one horse race

May 9, 2011 8:12 pm by Jude Webber

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Argentina’s election looks increasingly like a one-horse race. This weekend’s decision by Mauricio Macri, the mayor of Buenos Aires, to run for a second term in the city instead of against Cristina Fernández for the presidency confirms what many had long suspected: Argentina’s fragmented opposition is no real contest for the government. Continue reading »

Tags: elections, politics Posted in Argentina | Permalink

Barclays moves Africa HQ….to Africa

May 9, 2011 8:05 pm by Andrew England

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It would appear to be one of the more logical decisions a bank could make. About four years after moving its Africa headquarters to Dubai, the Middle East’s business hub, Barclays is relocating its regional office back to South Africa. Continue reading »

Tags: banking, investment Posted in Africa, South Africa | Permalink

TAM to buy TAP? Not so fast

May 9, 2011 6:58 pm by beyondbrics

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By Mark Odell in London and Joe Leahy in São Paulo

The Brazilian carrier TAM is said to be the latest suitor for TAP, its Portuguese counterpart, one of several state-owned companies that Lisbon is looking to privatise as part of its €78bn bailout by the European Union and the International Monetary Fund.

For a string of reasons, the two look like a natural fit. But a reality check is needed. For two reasons at least, this could be one deal that can’t be done. Continue reading »

Tags: M&A, transport Posted in Brazil, LatAm | Permalink

Inflation: embedding or decamping?

May 9, 2011 4:06 pm by Stefan Wagstyl

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Are the inflation risks in emerging markets exaggerated? Yes, says Capital Economics in a report published on Monday which argues that the inflation fears spooking EMs will “prove short-lived”.

Not true, says HSBC Asset Management, which argues investors are “overly sanguine on EM inflation prospects”, with the consensus lagging reality. The key to the argument is how far rising global commodity prices trigger second-round inflationary effects in individual countries. And how fast the authorities intervene. Continue reading »

Posted in Global | Permalink

Poland’s Lotos sale mired in uncertainty

May 9, 2011 3:42 pm by Jan Cienski

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Serious interest in buying Poland’s Lotos Group has come only from Russian companies, making the sale of the government-owned refiner politically problematic before this autumn’s parliamentary election.

Unofficially, the Russian companies who submitted bids for Lotos before the treasury ministry’s deadline at the end of last month include TNK BP, GazpromNeft and Rosneft, according to Poland’s Parkiet newspaper. Continue reading »

Tags: FDI, Lotos, oil & gas, privatisation Posted in Europe, Poland | Permalink

Middle East tourism: Waiting for sunnier times ahead

May 9, 2011 3:15 pm by Simeon Kerr

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Freedom is expensive. And in no other sector in the Arab world is it coming at a greater price than in tourism.

As the wrenching revolutions of the Arab spring continue to unfurl around the region, uncertainty following the collapse of authoritarian regimes and the ongoing security crackdowns on protest is keeping tourists away. Continue reading »

Tags: tourism Posted in Egypt, Libya, Middle East, Tunisia, United Arab Emirates | Permalink

The slow lane: India’s road-building efforts hit bumps

May 9, 2011 2:42 pm by Amy Kazmin

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India’s rutted, potholed roads are the bane of many a traveller, not to mention its entire logistics systems. In a country where many reforms are highly contentious and controversial, Indians are united on the need for more and better roads to help them get to where they are going – and to facilitate the faster transport of everything from farm produce to electronics from place to place.

India’s Congress Party-led government had once set an target of building 20kms of new roads every day. However, the government appears to be on the slow road to road-building – far short of its desired speed. Continue reading »

Tags: infrastructure, roads Posted in India | Permalink

New York headlines

May 9, 2011 12:40 pm by beyondbrics

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* US oil rises as commodities rebound

* HSBC disappoints as profits fall short

* Petrobras ethanol target trippled

* Netflix pushes into Latin America

* EU to cut emerging nations’ trade benefits Continue reading »

Posted in Global | Permalink

Turkey: It’s consumer spending, stupid.

May 9, 2011 12:20 pm by Delphine Strauss

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Much of the debate over Turkey’s unorthodox monetary policy has centred on whether increases in reserve requirements will have the desired effect of curbing rapid credit growth and stopping the economy overheating.

But Citigroup argues, in a note published last week, that the real problem is no longer the pace of overall loan growth – which banks are likely to limit to 25 per cent year on year after stern strictures from the central bank, ministers and regulators. Continue reading »

Tags: banking, inflation, interest rates, monetary policy Posted in Turkey | Permalink

Deal of the day: Kone lifts China stake

May 9, 2011 11:58 am by Andrew Ward

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For every new apartment block springing up around China’s fast-growing cities, there is at least one elevator.

So it’s no surprise to see Kone, the Finnish lift and escalator maker, on Monday agreeing to pay Zhejiang Giant Holdings nearly €100m for an increased stake in their Chinese joint-venture. Continue reading »

Tags: construction, industry Posted in China | Permalink

Doing business in Vietnam: wage rises leave investors with tough choices

May 9, 2011 11:47 am by Ben Bland

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Foreign investors were reassured last week when the Vietnamese government unveiled more realistic economic targets for this year, nudging down its growth target and bumping up its inflation target.

But if the government can’t hide from the stark choice between growth and stability, then neither can investors hide from the fact that they too are facing tough times and hard decisions. Continue reading »

Tags: GDP, inflation, interest rates, investment, monetary policy Posted in Asia, Vietnam | Permalink

Taiwan’s baby problem: is the answer on the mainland?

May 9, 2011 11:14 am by Robin Kwong

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It may not be as serious as Japan’s, but Taiwan’s demographic problem is worsening. Simply put, its 23m citizens are not having enough babies.

Taiwan’s birth rate of 8.9 per 1,000 population puts is among the lowest in the world, just ahead of its neighbours Hong Kong, Singapore, South Korea and Japan. Add a penchant among wealthy Taiwanese parents for sending their children to school in the US, Canada or Australia, plus a growing diaspora of Taiwanese workers and businessmen moving across the Strait, and it is little wonder that Taiwan’s brain drain is fast becoming an issue. Continue reading »

Tags: demographics, population Posted in Asia, Taiwan | Permalink

Asia EMs gain on commodities rally

May 9, 2011 8:53 am by Stefan Wagstyl

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It’s not much of a rally but it’s a rally nonetheless. Commodity prices rose on Monday for the first time in five trading days as some investors decided that last week’s mega sell-off may have gone a bit too far.

After an 11 per cent fall last week, the biggest since 2008, the S&P GSCI commodities index was up over 1 per cent in Asian trading prompting modest rallies in equities, including in emerging markets. But the after-shocks of last week reverberate: the FT on Monday reported how Clive Capital, the world’s biggest commodities hedge fund, lost $400m. There must be others out there, including some – perhaps, unable to take the hit. Continue reading »

Tags: commodities, equities Posted in Global, Uncategorized | Permalink

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beyondbrics

Daily Archives: May 9, 2011

Americas market wrap

Argentina election: A one horse race

Barclays moves Africa HQ….to Africa

TAM to buy TAP? Not so fast

Inflation: embedding or decamping?

Poland’s Lotos sale mired in uncertainty

Middle East tourism: Waiting for sunnier times ahead

The slow lane: India’s road-building efforts hit bumps

New York headlines

Turkey: It’s consumer spending, stupid.

Deal of the day: Kone lifts China stake

Doing business in Vietnam: wage rises leave investors with tough choices

Further reading: Chinese dreams

Taiwan’s baby problem: is the answer on the mainland?

Asia EMs gain on commodities rally

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