Daily Archives: August 1, 2011

beyondbrics on the beachIt’s winter holidays again for high-rolling Brazilians benefiting from the strength of the real. The options are many: London has Big Ben, Paris the Eiffel Tower and New York the Empire State building. However, Miami seems to increasingly be their destination of choice.

Aside from the art-deco architecture of Miami Beach, the area has palm-trees, sun and nice beaches, just like their home country. So why fly all the way up there? In three words: dirt cheap shopping. “I love Miami. In Rio we have Copacabana, but Miami has Banana Republic,” says a cheerful Flávia from Rio de Janeiro, standing at one of the store’s counters at the Lincoln Road Mall. Continue reading »

Asian and European markets woke up on Monday to the news that a US debt ceiling deal had been struck and stocks around the globe picked themselves up after being knocked down pretty hard last week. July was a rough month: a eurozone default became increasingly imminent and an American one suddenly possible.

But while developed markets were off in July, emerging markets managed a small gain – further evidence, surely, of EM’s new safe haven status? Not necessarily. Continue reading »

India's Sachin Tendulkar (L) plays a shot against England during the fourth day of the second cricket test match at Trent Bridge in Nottingham, central England on August 1, 2011.The bubble-like confidence of Indian cricket has burst in England this summer.

Only weeks after India won the cricket World Cup on home ground, its world-beating team has been out-played in a four-match Test series in England. Key players are absent, and the team looks exhausted from a punishing schedule. Zaheer Khan, a key strike bowler, is out; so is Virender Sehwag, an opening batsman. Continue reading »

Break at a factoryManufacturing across central and eastern Europe is losing steam. Purchasing managers indices released on Monday added to the signs of slowing recovery, as the eurozone’s worries continue to spill over into neighbouring countries.

But while factory activity is shrinking, factory owners are still betting on a turnaround. Continue reading »

The Polish consumer’s resilience helped save the country from recession during the economic crisis in 2009 and now the hardy shopper is having a wider impact – helping out big international retail chains.

Britain’s Tesco is planning to invest 1bn zlotys ($360m) this year and open as many as 80 new shops, adding to the 370 it already has scattered around the country. The expansion would be the fastest for Tesco in Poland since its 2007 acquisition of Leader Price. Continue reading »

By Sounak Mitra of mergermarket

Many of us remember school trips as low-key affairs involving lots of trudging across open moors enlivened by unexpected camaraderie, under-age smoking and the prospect of slipping off to the nearest bar.

Well, some things never change, or not much. But now emerging market companies are muscling in on the act and providing school holiday packages for kids in both developed and developing markets. Mumbai-listed Cox & Kings (COX&KINGS:NSI) has become the latest by acquiring London-listed Holidaybreak. Continue reading »

robot kicksWhen Terry Gou, founder and chief executive of Foxconn, the world’s largest electronics contract manufacturer, announced on Friday that the group would drastically increase the use of robots in its manufacturing process, that was supposed to be good news. At least investors are set to like the idea of containing production cost. And the message Gou meant to get across was also that young workers would no longer be forced to do exceedingly boring and repetitive jobs.

But it didn’t come out right. Gou used a speech in front of 20,000 of his employees at a dance party last Friday to announce that Foxconn (2354:TAI) would be using 1m robots three years from now – matching the group’s total China headcount – which would replace workers in some jobs.

Continue reading »

Macarthur open to offers after failed A$4.7bn bid

China’s manufacturing growth exceeds estimates

China becomes hurdle to global mergers

Iran says oil payment row with India resolved – SHANA

UK panel warns on Turkey EU membership Continue reading »

By Joshua Tanja of UBS

After Monday’s gain of 1.2 per cent, the Indonesian market has once again closed at an all time high. The strong performance of the Jakarta index this year is due largely to the stand-out Indonesia macro story – again affirmed by the July inflation reading of 4.6 per cent, a 12-month low.

Strong corporate results supported by easy monetary conditions and foreign inflows have also helped. So, where do we go from here? Continue reading »

Nobody wants to miss the emerging market consumer bandwagon. And that includes the increasingly cash-conscious University of Oxford.

The 800-year old British university is lining up University of Oxford branded products for sale in China, India and Brazil in the next two years. Selling apparel, home linen, educational toys and back to school items to increasingly affluent middle class consumers in the emerging markets, its commercial arm hopes to help soften the impact of looming cuts in UK government funding. Continue reading »

Monday’s top picks from the beyondbrics team: what to read from the Yahoo/Alipay dispute, why investors need to beware the EM inflation risk and what would a world without Hugo Chávez look like.  Continue reading »

Asian stock markets reacted with expected vim to news of a deal to raise the US debt ceiling, which will now go to Congress. All major equity markets opened up in positive territory, though some markets gains were minimal.

With some benign inflation data, and perky export figures, investors are seeing plenty of reasons to buy. Continue reading »

Elderly IndiansJust a tiny proportion of India’s vast working population is covered by a formal pension plan but there are growing pressures for important structural reforms, according to a report in this week’s issue of FTfm.

India is thought to be the only significant country in the world where there is a prohibition against public sector workers’ money being invested in the stock market. Continue reading »

* China’s manufacturing growth exceeds estimates

* China becomes hurdle to global mergers

* Iran says oil payment row with India resolved – SHANA

* UK panel warns on Turkey EU membership

* Kosovo violence flares over trade with Serbia Continue reading »

Global equities macromap

Number of the day

240p The new offer for Cove Energy shares from PTT, trumping the bid from Shell.

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