Latin America has come an unimaginably long way in the past 20 years, leaving its past of coups, revolutions and economic boom-and-bust firmly behind it.
Now, with prices for commodities fuelling strong economic growth, Luis Alberto Moreno, president of the Inter-American Development Bank sees the region standing on the threshold of a historic opportunity. Continue reading »
Americas market wrap
Latin American markets rose on Friday, capping a week of rises throughout the region, as commodity prices rose, with oil reclaiming $100 a barrel level, lifting the energy and materials stocks. The MSCI Latin American index rose 1.3 per cent to 4,445, gaining 3 per cent over the week and reaching its highest level since May 10.
Brazil’s Bovespa index inched 0.3 per cent higher to 64,295, rising for the fourth consecutive day. Brazilian stock hit their lowest levels since July of 2010 in the recent weeks, prompting investors to buy stocks deemed cheap. Continue reading »
Travelex goes shopping in Brazil, eyes acquisitions in Malaysia and Vietnam
Who goes to foreign exchange bureaux nowadays?
In an age of ATMs, where travellers can easily take out local currencies using their bank cards with less hassle and often at better rates than brick-and-motar exchange shops, is there much justification for this seemingly archaic business’s existence?
Absolutely, says Travelex, the travel exchange specialist, which on Friday announced that it has acquired Brazil’s largest foreign exchange business. Continue reading »
EM head for IMF unlikely says Kazakhstan’s Marchenko
Kazakhstan has admitted that there is little chance of an emerging markets candidate being chosen to head the International Monetary Fund unless the current voting set up is reformed. But if developing countries unite to press for change they will have a fighting chance of winning the top job in global finance when it comes up for grabs again in five years.
Grigory Marchenko, the head of the National Bank of Kazakhstan , was nominated last week as the CIS candidate to head the IMF, but he believes his chances of getting the job are slim. Continue reading »
Mexican elections: face-off begins
The jargon of Mexican politics borrows considerably from that of cock-fighting. A key moment is the “destape”, when the roosters’ hoods are taken off, their identity is revealed and they come in fighting.
Now, within days, two heavyweight roosters are up and running, ready to fight, though not with each other. Continue reading »
Tate&Lyle: EM obesity lifts demand
It’s not often that a company backtracks on a decision to mothball a factory. But on Friday Tate& Lyle said it would reopen a US sucralose plant, pointing to a growing demand from emerging markets for the no-calorie sweetener.
The move signals a trend of rising obesity, which until recently was largely a developed country epidemic. As the rate of obesity in emerging markets like Brazil and China rises faster than in developed markets, so too does the opportunity for companies like Tate& Lyle to boost margins. Continue reading »
Fund flows: out of equities, into bonds? Not so fast
Are EM investors switching out of equities and into bonds? For the ninth week running, and after some wild swings earlier in the year, investors put money into EM bond funds in the week to Wednesday, according to EPFR, the Boston-based fund watcher. And for the second week running, they took money out of EM equity funds (see charts after the break).
Is this the beginning of a migration into fixed income? To beyondbrics, that still sounds premature. Continue reading »
China’s most expensive flat, unveiled
Just as the Chinese government is trying to rein in soaring house prices a real estate developer in Beijing has unveiled what Chinese media report is by far the most expensive apartment ever built in the country.
The luxury penthouse apartment of more than 1,000 sq m is on sale for Rmb300,000 per sq m, or a total price tag of more than Rmb300m ($46.2m), according to an unnamed representative of the developer, quoted in Chinese media. Continue reading »
Chile: Luksic eyes ING LatAm assets
Chile’s Luksic group could be about to take a leap into insurance. According to media reports, it is part of a consortium, together with Mexico’s Grupo Finanicero Banorte SAB, that has made a bid for the Latin American insurance assets of ING Groep NV of the Netherlands. Continue reading »
Russian equities: Profiting from seasonality
By Ben Aris, Business New Europe
The Easter holidays are over and Russia’s market has sold off heavily – like it does every year. The seasonality of Russia’s equity market is so pronounced that it offers a no-brainer investment strategy that would outperform nearly every major emerging market investment fund if only someone got round to packaging it and selling it to investors. Continue reading »
MGM China set to raise $1.5bn in IPO
Strike while the iron is hot, that seems to be the mantra for EM companies looking to IPO these days. On Friday, MGM China announced pricing for its planned Hong Kong listing and said it aimed to raise as much as $1.5bn.
That would make it the fourth largest global gaming IPO on record. The casino and gaming company – the result of a joint venture between MGM Resorts and Pansy Ho, daughter of Hong Kong tycoon Stanley Ho – looks to be cashing in its chips while investor appetite for exposure to the Chinese market remains high. Continue reading »
New York headlines
* Mongolia faces critical diesel shortage
* Lagarde offers bigger voice to emerging nations
* Russia to buy warships from France
* China’s industrial profit growth slows
* Hong Kong tests banks’ ability to survive outflows
* Arab democracies win G8 aid pledge Continue reading »
Ferrari in India: Speed bumps ahead?
Ferrari, the iconic Italian sportscar maker, opened its first showroom in one of the upmarket areas of New Delhi this week.
But the question everyone’s been asking is whether it is possible to enjoy such a car in a country with sub par infrastructure? Continue reading »
Further reading: kickboxing grannies
Friday’s best picks from the beyondbrics team: wealth in emerging markets, looking for debt in China, and choosing the direct approach to the Middle East.
Also, Kenya’s kickboxing grannies. Continue reading »
RMB boost for Taiwan’s banks
Life has not been easy for Taiwanese banks, which have faced intense competition in their home market, a low interest rate environment for the past few years, and a slower-than-expected liberalisation in cross-Strait banking.
The last point, at least, is being addressed. Taiwanese banks received a boost on Thursday when the Financial Supervisory Commission, Taiwan’s main financial regulator, said it would deregulate renminbi business to allow Taiwanese banks’ foreign branches and offshore banking units (OBUs) to handle the Chinese currency. Continue reading »
| About this blog | Headlines email | Blog guide |
| Regulars | Series | Archive |
Older entries
Stefan Wagstyl
Josh Noble
Rob Minto
Pan Kwan Yuk
Jonathan Wheatley
Heba Saleh