Daily Archives: July 11, 2011

Brazil steps up fight against rising real

July 11, 2011 10:36 pm by Samantha Pearson

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Brazil’s currency warriors are at it again.

But the country’s latest assault on the real, which hit a 12-year high against the dollar earlier this month, is definitely one of the more obscure. Brazil’s policymakers said late on Friday they will force local banks to put the equivalent of 60 per cent of their short dollar positions in non-interest bearing deposits with the central bank.

The rule will now apply to banks with positions that exceed $1bn or that are bigger than their own capital base. It used to apply to positions over $3bn. Continue reading »

Tags: currencies, monetary policy Posted in Brazil, LatAm | Permalink

Peru’s long awaited train service arrives

July 11, 2011 10:21 pm by Naomi Mapstone

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Brits are all-too familiar with train services that seize up if it snows or the wrong leaf falls on a track, but things can always be worse.

In Peru’s capital city, Limeños have been waiting more than two decades for their train to pull into the station.

The city’s light rail was inaugurated by president Alan García, almost 25 years to the day since he set the project in motion during his first, disastrous term in the late 80s. Continue reading »

Posted in Peru | Permalink

Codelco’s strike: the start of something bigger?

July 11, 2011 6:53 pm by Jude Webber

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It wouldn’t be hard to beat the last big strike at Codelco, the Chilean state copper miner, 18 years ago. It lasted for 45 minutes. This time around, workers walked off the job from 4 am and union leaders were delighted with the turnout of the 24-hour stoppage, called to protest restructuring plans and fears that the government is plotting to privatise the company (despite its assurances to the contrary).

A day-long strike may still not sound much – but its ramifications could be a lot bigger than any short-term dent in the price of copper.

Tags: commodities Posted in Chile, LatAm | Permalink

Hungarian debt: things are looking up

July 11, 2011 5:13 pm by Kester Eddy

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After several years of being central Europe’s bad boy on the bond block, Hungarian debt has had a remarkable six months. Foreign investors, noting the government’s determination to curb state expenditures and rein in debt, have piled into local bonds to hold what are now record levels – Ft 3,600bn (€13.7bn) – more than one third of the total amount. Continue reading »

Tags: bonds, economic growth Posted in Hungary | Permalink

CEE: weathering Mediterranean storm

July 11, 2011 4:30 pm by Stefan Wagstyl

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Central and eastern Europe hasn’t escaped the impact of the latest shocks in the euro crisis which has seen Italy dragged into the financial danger zone.

With Italian shares down by more than 4 per cent on Monday – following a 7 per cent drop last week – it was no surprise to see CEE equities, bonds and currencies sinking in unison.

But investors should keep a sense of perspective. While all the PIIGS are now under pressure, the European Union’s CEE member states are bearing up pretty well, even those such as Hungary which went through the grinder themselves not so long ago. Continue reading »

Tags: debt Posted in Europe | Permalink

Zimbabwe’s economic plans: still stale

July 11, 2011 4:02 pm by Tony Hawkins

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Four new economic programmes in less than 30 months in office might suggest that Zimbabwe’s fragile coalition government is bursting with new ideas.

But there is little fresh thinking in new industry policy plans – a decision to “pick winners” in particular harks back to protectionism, while the medium-term development plan repeats some of the World Bank’s structural adjustment mantra of 20 years ago.

Tags: consumption, economic growth, FDI, inflation Posted in Zimbabwe | Permalink

EU subsidies keep Poles on the farm

July 11, 2011 2:41 pm by Jan Cienski

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Poland is a fast-growing country catching up to western Europe – which is why the number of people making a living from agriculture should be falling. Instead, the number of farmers is actually growing – thanks in large part to EU agricultural subsidies.

In 2002, about 2m people were making a living as farmers – while as of last year that had grown to 2.2m, reports the government’s statistical agency. Continue reading »

Tags: agriculture, fiscal policy Posted in Europe, Poland | Permalink

China’s economic chess game

July 11, 2011 12:01 pm by Josh Noble

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What would stagflation with Chinese characteristics look like? While the traditional meaning of the word is negative or sluggish growth coupled with rising inflation, China could be experiencing its own version, based on recent data.

Weekend figures for trade and CPI showed that, yes, China is slowing while inflation is picking up. Continue reading »

Tags: China inflation, China slowdown Posted in Asia, China | Permalink

New York headlines

July 11, 2011 12:00 pm by beyondbrics

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* Trade data show China economy slowing

* Emerging markets IPOs: pausing for breath

* Prices force Blackstone to drop China stake

* Etisalat dealt another blow in India

* Thousands protest against Malaysia government

* Monsanto, Sinochem in Deal Talks – WSJ

* US threatens to withhold military aid to Pakistan Continue reading »

Posted in Global | Permalink

China’s bullet train: dark & sweaty

July 11, 2011 11:22 am by Jamil Anderlini

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China’s controversial new bullet train connection between the mega-cities of Beijing and Shanghai hit its first major speed bump on Sunday, just 10 days after the service opened to the public.

At least 19 high-speed trains heading south from Beijing were delayed on Sunday evening, some by more than two hours, after a power failure on one stretch of track caused by bad weather, rail authorities said. Continue reading »

Tags: transport Posted in China | Permalink

Chinese sports stocks: diving

July 11, 2011 10:00 am by Josh Noble

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Last week it was all about Li Ning. The Chinese sportswear brand issued something akin to a profits warning, saying its margins were set to halve. Shares fell over 13 per cent on the news, weighing on some of the company’s listed rivals.

Fast forward a few days, and a second Chinese sportswear brand gets gloomy. This time the whole sector isn’t just under pressure, it has fallen off a cliff. Continue reading »

Tags: sports Posted in China | Permalink

Nestlé’s $1.7bn Chinese sweet tooth

July 11, 2011 9:45 am by Stefan Wagstyl

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Fund managers may be cautious about emerging markets right now, but not Nestlé, the Swiss foods group, which is putting S$2.1bn (US$1.7bn) into Hsu Fu Chi, the Chinese sweets company.

The deal, announced on Monday, will be one of China’s largest foreign investments. Nestlé is paying a 25 per cent premium to the Singapore-listed Hsu Fu Chi’s (AS5:SES) recent average price – a sign of the value the Swiss company attaches to EM food businesses. It’s another boost to the EM domestic consumption story. Continue reading »

Tags: food & drink Posted in China | Permalink

IPOs: pausing for breath

July 11, 2011 7:38 am by Pan Kwan Yuk

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What goes up, must come down – at least a bit. And so it is with initial public offerings.

After a bumper 2010 in which issuers in Brazil, China (including Hong Kong), India, South Korea and Russia raised a combined $153.7bn – or more than twice the $74.4bn raised in 2009 - the dash for new share issues from emerging markets appears to be losing steam. Continue reading »

Tags: IPOs Posted in Brazil, China, Global, India, Russia, South Korea | Permalink

London headlines

July 11, 2011 6:42 am by Josh Noble

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*Trade data show China economy slowing

*Prices force Blackstone to drop China stake

*Asian markets off to a dismal start

*Etisalat dealt another blow in India

*Thousands protest against Malaysia government Continue reading »

Posted in Global | Permalink

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Daily Archives: July 11, 2011

Brazil steps up fight against rising real

Peru’s long awaited train service arrives

Codelco’s strike: the start of something bigger?

Hungarian debt: things are looking up

CEE: weathering Mediterranean storm

Zimbabwe’s economic plans: still stale

EU subsidies keep Poles on the farm

China’s economic chess game

New York headlines

China’s bullet train: dark & sweaty

Chinese sports stocks: diving

Nestlé’s $1.7bn Chinese sweet tooth

Further reading: grumpy panda

IPOs: pausing for breath

London headlines

Global equities macromap

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