Chávez: no show at military parade
Just how ill is Hugo Chávez? That is the question of the moment for Venezuelans, and today they got another clue.
Their normally energetic leader, also a fierce nationalist and staunch anti-imperialist, declined to make an appearance at what for him was a hugely important event: a civic-military parade commemorating the 200th anniversary since Venezuela declared its independence from Spain. Continue reading »
Ecuador: indebted to China
When Ecuador defaulted on more than $3bn in foreign debt two years ago, soaring borrowing costs were a given. But the Opec nation’s latest $2bn loan from the China Development Bank has some wondering whether the price could end up being Ecuador’s sovereignty.
According to Quito-based Analytica Securities, the latest loan brings Ecuador’s debt to China and its corporations $6.7bn – about 11 per cent of its forecast $62bn GDP for 2011. Continue reading »
Argentina: inflation as a money spinner
Argentina’s inflation is a problem – a problem for investors, consumers and the country’s image. Something must be done. This is the widespread market view.
But from the government’s standpoint, double-digit inflation for the past four years has turned out to be a nice little earner. Continue reading »
Rumble in the Congo: Jinchuan v Vale
The contest for Africa’s copper and iron ore is sometimes likened to the Great Game, as various powers vie for geopolitical and investment advantages on a volatile continent. This analogy is criticised because of its colonial nineteen-century overtones. But to do so misses a basic fact. The powers in today’s Game come from emerging markets and bypass established economies entirely.
This was confirmed on Tuesday when Jinchuan Group, one of China’s largest state-owned miners, started a bidding war with Vale, the Brazilian mining giant. Their target is a small South Africa-based company whose main asset is in the Democratic Republic of Congo. Continue reading »
Russia’s car market: back on track
Russia has wound up the car trade-in scheme that buoyed the auto-industry through the crisis and said it is back on track to become Europe’s biggest car market.
Vladimir Putin launched the cash-for-clunkers programme in March 2010 in what looked like a last ditch attempt to rescue AvtoVaz, Russia’s flagship auto maker, from collapse. Continue reading »
Guido Mantega: It’s war (again)
Is the currency war over? “Absolutely not,” Guido Mantega, Brazil’s finance minister, told FT journalists in London on Tuesday. Not only that, it’s about to heat up, as Brazil prepares more measures to prevent the overvaluation of its currency, the real.
Mantega first declared currency war last September as the rising real sapped manufacturers’ competitiveness – only to call it off in April as inflation became more of a worry. Now he says inflation is under control and Brazil is again preparing to do battle. But capital controls and other quick fixes won’t address the structural causes of an overvalued BRL. Continue reading »
Prices soar as China goes nuts for cashews
By Emiko Terazono in London and Leslie Hook in Beijing
China’s demand for raw materials may have slowed but an appetite for healthier living among the country’s fast-growing middle class has stoked demand for nuts, sending prices of cashews and other snacks to record levels.
“Chinese nut consumption is growing so fast, prices have rocketed during the last 12 months,” says Giles Hacking, managing director of London based nut trader CG Hacking and chairman of the International Nut and Dried Fruit Foundation. Continue reading »
Guido Mantega: What, me worry?
Everything is fine in Brazil. The economy is not overheating, inflation is under control, investment and productivity are rising, there is no asset bubble, no credit bubble, and households are having no difficulty servicing their debts – in fact they’re finding it easier than ever before. Continue reading »
Novak Djokovic: Serbia’s ace
Novak Djokovic’s victory at Wimbledon on Sunday, besides underlining his rank as the world’s top tennis player, has confirmed him as the best public relations asset available to his home country, Serbia.
Over 100,000 people turned out in central Belgrade to welcome him back on Monday night, although he now spends most of his time abroad. Djokovic has made the troubled country feel better about itself and its prospects, and might also help others see Serbia in a more positive light. Continue reading »
S Korea-Russia : next stop, Khabarovsk
South Korea’s Incheon airport has long ranked as one of the world’s best airports for its efficiency and stateof-the-art technology. Now the hub’s owners will be bringing their management skills to a slightly less renowned location: Khabarovsk in Russia’s far east.
The state-owned Incheon International Airport Corporation has agreed to take a 10 per cent stake in Khabarovsk Airport as Korea and Russia look to increase their business ties. Continue reading »
US, China, Russia: winners in the Gobi
News that Mongolia has chosen China’s Shenhua, the US mining group Peabody and a Russian-led consortium to develop Tavan Tolgoi – one of the world’s largest unexplored coal reserves – should come as no surprise to followers of the landlocked Asian country.
Sandwiched between Russia and China, Mongolia has long sought to avoid alienating either of these great powers, even as it tries to play them off against eachother. At the same time it has sought “a third neighbour” policy by reaching out to the US. Ulan Bator’s decision to split a prize asset three ways between US, Chinese and Russian companies is a shrewd political manoeuvre in face of hard geopolitical realities. Continue reading »
South Korea: time to end KEB saga
South Korean regulators are up in arms over Lone Star’s record dividend from Korea Exchange Bank amid growing public criticism that they inadvertently allowed the US private equity fund to take bigger profits from their investment in KEB by delaying approval of the bank sale to Hana Financial Group.
Despite regulators’ pleas that KEB (A004940:KSC) refrain from paying out high dividends, Lone Star last week secured Won496.8bn ($466.6m) in KEB interim dividends. The move has revived a public backlash against the tax-free profits Lone Star will generate selling its 51 per cent KEB stake. Continue reading »
Mol shares hit by Croatia bribe claims
A rollercoaster ride on Tuesday for shareholders in Mol, the Hungarian oil and gas company.
Its shares plunged 4.6 per cent on Tuesday morning on Hungarian press reports that Croatia was seeking to extradite chairman Zsolt Hernadi on alleged corruption charges – only to recover half their losses after a Hungarian official said no extradition request had been received. This is not the sort of volatility investors expect from a national energy group. Continue reading »
New York headlines
* CDB $10bn fund to target Asian SMEs
* WTO to fault China’s rare-earth quotas
* China debt: Moody’s warning
* Africa drives record Tullow revenue
* India: Firms can refinance foreign debt without RBI approval
* Russian exporters forced to drop grain prices
* Chinese capital eyes Brazil’s high-tech sector Continue reading »
China debt: Moody’s warning
The folks at Moody’s are the latest to issue some stark words on the levels of debt building in the Chinese economy – specifically within local governments.
The official figure for LG debt – released by the government’s national audit office last week – of $1,650bn is probably too low, say Moody’s. The real number may be much higher. Continue reading »
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