One of the bigger bulls in emerging market equities has had to eat a bit of humble pie – or, as he puts it, reset the compass, in light of the precipitous drop in prices in the past month.
But the experience has not persuaded Geoffrey Dennis, EM equity strategist at Citigroup, to abandon his underlying optimism. Quite the contrary – he sees the sell-off as a buying opportunity – predicting a 22 per cent gain from August 30 levels in the MSCI emerging markets index by the end of 2011 – and a 6.5 per cent increase over the year as a whole, as the chart below shows. That’s a brave call, for sure. But is it right?
Nowhere is looking good as important as in Brazil. Whether it be the media images of supermodels like Gisele Bundchen, the sexy clothes and tiny bikinis, or the hot and sultry climate that serves as an open invitation to strip off, the body beautiful (and not so beautiful) is constantly on display.
That’s a powerful incentive to stay in shape and gyms are taking note. Over the last 10 years, bigger and more professional gyms have muscled in on the smaller neighbourhood academias, as they are known here.
Benigno Aquino III, the popular Philippine president, should begin to worry about his country’s disappointing GDP growth of 3.4 per cent in the quarter ending June, among the lowest in the region. And it’s not just because the economy has progressively slowed down in the past four quarters that he’s been in power.
Rather, the Philippines is losing one of its main growth drivers: remittances from Filipino contractual workers abroad that boost domestic spending.
‘What’s in a name?’ was Shakespeare’s Juliet’s call to her forsaken lover. Well quite alot, especially when that name happens to be Muammer Gaddafi.
One of the many unforeseen consequences of the deposition of the Libyan leader is the spate of re-namings that are hurriedly taking place in countries that boasted close bilateral ties with the fallen regime.
ExxonMobil’s planned strategic alliance with Rosneft clearly gives the US super major a lead over it peers in exploring the Russian Arctic. But what does the deal mean for Russia’s state oil company?
Apple attacked over pollution in China
Dispute over control of $65bn Libya fund
Reliance Industries, BP complete $7.2bn deal
Aquino seeks $60bn, oil resolution on China trip
Exxon and Rosneft sign Arctic deal
BP’s Russian headache just got worse. On Wednesday, the company office in Moscow was raided by bailiffs acting for minority shareholders in TNK-BP Holding (TNBP:MCX), the listed group that is the core asset of TNK-BP, the joint venture between the UK group and three Russian oligarchs.
The minority shareholders are suing BP (BP:NYQ) in a $3bn dispute over the failure of BP’s planned alliance with Rosneft (ROSN:MCX), the state-run oil group. To add insult to injury, the raid comes the day after Rosneft announced a replacement alliance with ExxonMobil.
Wednesday’s top picks from the beyondbrics team: Lex column on why Exxon did and BP didn’t (get the deal with Rosneft), what to expect from Royal Bank of India’s new rules on bank licensing and India’s cricket towns.
In our latest special series, beyondbrics looks at health. We’ll write about everything from body-beautiful gyms in Brazil to concerns about skin-whiteners in India and the state of hopitals in Vietnam.
To start, we have Patti Waldmeir, the FT’s Shanghai correspondent, on what happened when China’s health inspectors turned their attention to mooncakes, the traditional food of this month’s autumn festival. Her story starts below the break.
Cosco’s contract dispute with a number of international shipping companies over unpaid rates has an air of déjà vu to it. In the autumn of 2008, Chinese state-owned steel mills walked away from iron ore contracts after prices plunged amid the global economic slowdown.
In China, a contract, as the old line goes, is merely a pause in the negotiations.
* Dispute over control of $65bn Libya fund
* Reliance Industries, BP complete $7.2bn deal
* Aquino seeks $60bn, oil resolution on China trip
* Exxon and Rosneft sign Arctic deal
Filling up your car in Brazil can be a little complicated.
About 90 per cent of all new cars are built with “flex-fuel” engines that can run on both petrol and ethanol. So when you get to the petrol station, the attendant (no self-respecting Brazilian ever fills up their own car) will ask you which one you want.
Given that ethanol is less efficient than petrol, the price per litre needs to be about 30 per cent cheaper or more than that of petrol to make it worth it.
According to US Energy Information Administration, Argentina has the third biggest unconventional oil and gas resources in the world. And since new hydrocarbons discoveries can qualify for higher prices in Argentina’s highly regulated market, plus the fact that domestic energy market leader YPF has made a couple of major announcements and said there is much more out there to discover, it follows that this is a sector where interest could take off.
Indeed, ExxonMobil of the US believes the next big shale frontier is in Argentina. It has signed a deal with Canada’s Americas Petrogas and is spending up to $76m to take a stake of 45 per cent in the Los Toldos blocks in the Argentine province of Neuquén – believed to be one of the richest and most promising of all shale regions in the country.