Daily Archives: June 1, 2011

Nasir el-RufaiBy Nasir el-Rufai, former minister of Federal Capital Territory and former director of the Bureau of Public Enterprises

Nigeria, a nation of over 150 million people, generated only 2,000 megawatts of electricity this week. Ethnic, religious and political crises have claimed thousands of lives and displaced countless more. Maternal mortality is among the highest in the world. Not a single university in the country appears among the top 5,000 universities in the world. Infrastructure, where it exists is broken and neglected.

Yet, this year, government will spend more to subsidize petrol (about USD 5 billion) than on roads, education, health and power combined. This prioritization is symptomatic of the political economy of today’s Nigeria. Continue reading »

Bismark RewaneBy Bismarck Rewane, Managing director of Financial Derivatives Company

As the losers lick their wounds and winners share the spoils, Nigerians are waiting in nervous anticipation for the impact of the 2011 elections on the economy and quality of their lives.

President Goodluck Jonathan’s new administration has an opportunity to implement an economic reform agenda that will be transformational in overhauling the structure of the Nigerian economy whilst positioning it for accelerated and sustainable growth. Continue reading »

By Atedo N A Peterside, President/Founder of ANAP Foundation, Chairman of Stanbic IBTC Bank PLC and Chairman of Cadbury Nigeria PLC.

Notwithstanding his deft management of the constitutional crisis that erupted following the incapacitation of his predecessor, the jury was still out on President Goodluck Ebele Jonathan (GEJ) after he became President following the death of Umaru Yar’ Adua in May 2010.

What a difference a year makes; a landslide victory at the Party Primary of the ruling People’s Democratic Party (PDP) was followed by credible general elections and an emphatic personal triumph in the Presidential elections. It is clear now that there is more to GEJ than good luck. This time, he is the architect of his own destiny. Continue reading »

Supporters wave posters and banner in support of the presidential candidate of Congress for Progressive Change, retired General Mohammadu Buhari, during the presidential campaign rally of the leading opposition retired General Mohammadu Buhari in Kaduna on March 2, 2011.Nigeria is on the verge of takeoff. So said Jeffrey Sachs, the development economist and advisor to the UN Secretary General Ban Ki-moon after a visit this week that coincided with the swearing in of President Goodluck Jonathan.

Sachs is not alone. Many foreign investors eyeing African growth see the continent’s most populous nation, with its market of over 150m people, its oil and gas supplies, human resources and vast unmet demand for goods and services as the greatest opportunity. Continue reading »

Purchasing managers’ indices – a standard leading indicator of economic growth – were published on Wednesday for Russia, Turkey, Poland and the Czech Republic. And they don’t paint a pretty picture. Continue reading »

By Victor Shih, associate professor of political science, Northwestern University. This is the fourth in a beyondbrics series on bubbles in the Chinese economy

At the end of April, Baotou-based Chinese billionaire Jin Libin set himself on fire to escape his creditors.  His method of dealing with the situation was disturbing enough, but the structure of his debt was equally shocking. Investigators found that his billion renminbi business owed banks only 150 million RMB, but owed individual creditors and informal banks Rmb1.23bn.

In other words, he owed private creditors and informal banks over eight times what he owed the banks. Although extreme, Jin’s debt situation suggests a highly risky debt bubble that seems to be growing without much control outside of the banking system. Continue reading »

Flows of private capital to emerging markets will be much bigger than expected this year and next, with Brazil and China more than compensating for smaller than expected flows to north Africa and the Middle East, according to a report issued on Wednesday by the Washington-based Institute of International Finance.

While bigger flows will be welcomed, however, the IIF also warns that they will add to the policy challenges facing countries already under pressure from rising inflation. Continue reading »

This is the third in a beyondbrics series on bubbles in the Chinese economy

When a bottle of wine costs more at an auction than an undergraduate education at Harvard, some hear alarm bells ringing alongside the rap of the auctioneer’s gavel.

But as the latest fine wine auction at Christie’s in Hong Kong last week showed Chinese interest in the market remains unsatiated. Continue reading »

* Chinese manufacturing growth slows

* Merkel lands in India

* Walmart given nod for S Africa acquisition

* Mongolian Mining buys Kerry Mining’s QGX Coal for $464.5m

* Carlyle in race for GarudaFood stake Continue reading »

When the government closed down the lucrative, open black market trade in US dollars back in March, one Hanoi gold dealer, who also traded forex, predicted that the crackdown would be eased within a week.

He was wrong. The steadfast enforcement of the dollar black market clampdown has left Vietnamese consumers fretting about the gold bar trade, which the government also said it would restrict in order to reduce the downward pressure on Vietnam’s currency, the dong. Continue reading »

Wednesday’s best picks from the beyondbrics team: Agustín Carstens argues the case for an EM head of the IMF, Moisés Naím calls for Brazil to stop the party, and Premier Wen Jiabao shoots hoops. And, China Daily celebrates its 30th anniversary with a whopping 100 page paper.  Continue reading »

In another sign that inflation continues to plague emerging market nations, Thailand’s central bank raised its policy rate for the fourth time this year on Wednesday. The 25bp hike to 3 per cent was largely expected as the economy has grown at a healthy clip. It comes as political parties contesting for leadership in next month’s elections promise to keep rising costs down. Continue reading »

maybank picMalaysia’s long standing ambition of creating a South east Asian regional bank to rival Singapore’s DBS appears to be bearing fruit as both Malayan Bank and CIMB Group emerge as potential bidders for RHB Capital.

Shares in RHB, the country’s fifth biggest bank by assets, soared as Maybank and CIMB, the biggest and second biggest, both said they had been given central bank approval to discuss a possible merger. Continue reading »

* Chinese manufacturing growth slows

* Merkel lands in India

* Walmart given nod for S Africa acquisition

* Mongolian Mining buys Kerry Mining’s QGX Coal for $464.5m

* Carlyle in race for GarudaFood stake Continue reading »

As Uruguay moves towards coveted investment grade, it has notched up another success – a clamorous return to the Samurai bond market in Japan, its first such issue since 2007. The issue, which raised just shy of $500m and wraps up this year’s financing needs, was 2.2 times subscribed, says Benito Berber, an analyst at Nomura, which co-managed the sale.

The 2021 bond priced at par with a coupon of 1.64 per cent, yielding Yen Libor plus 43 basis points – at the tight end of the 42-48 basis point guidance range.

This issue was guaranteed by Japan’s JBIC development bank – a requirement Uruguay hopes to shed in future issues. This bond was bought by city and public banks, insurance companies, and regional banks and was managed by Daiwa as well as Nomura. Continue reading »

Global equities macromap

Number of the day

12.4% Fall in Mail.Ru shares on Monday, on the back of its Facebook stake.

beyondbrics

The emerging markets hub

About this blog Headlines email Blog guide
News and comment from more than 40 emerging economies, headed by Brazil, Russia, India and China.



'Like' our beyondbrics Facebook page, where we showcase a top story of the day
Sign up for our news headlines and markets snaphot service. We have two emails per day - London and New York headlines (sent at approx 6am and 12pm GMT).

To comment, please register for free with FT.com and read our policy on submitting comments.

There is an overall beyondbrics RSS feed, as well as feeds for all our countries, tags and authors. Learn more in our full RSS guide.

All posts are published in UK time.

Get in touch with us - your comments, advice and even complaints. Find out how to contact the team.

See the full list of FT blogs.

BB shortcuts

Regulars Series Archive
Chart of the week
Behind the numbers

Fund flows
Tracking money in and out of EM bonds
12 for 2012
Guest posts on key trends for the year ahead

Brics at 10
A decade of growth
The Diaspora Digest
EM diasporas, seen through their community media (Oct-Nov 2011)
Sick brics (Sep 2011)
Brics and mortar (Aug 2011)
Beyondbrics on the beach (Jul-Aug 2011)
China bubble? (June 2011)
Post-election Nigeria (June 2011)
Hey bric spender (Aug 2010)

Emerging markets data

Archive

« May Jul »June 2011
M T W T F S S
 12345
6789101112
13141516171819
20212223242526
27282930  

What we are writing about