Daily Archives: August 3, 2011

Even as the Cuban president, Raúl Castro, fumes over stumbling blocks placed by his own party bureaucracy to economic reforms, the internet is beginning to remove them one by one.

Castro appears to be meeting resistance from communist diehards – or more likely old-fashioned stick-in-the-muds – to his proposals that would allow private ownership in homes and cars, for example, on the Communist island.

That simply is not a problem for a handful of internet sites that are, in effect, putting the reforms into practice. Continue reading »

HungaryDiligent Hungarian municipalities who worked hard in 2007-2008 to begin development projects utilising EU grants are probably beginning to wish they had shown more characteristic Magyar bureaucratic inertia. Many of these towns and cities funded their own part in these projects using debt denominated in Swiss francs. This seemed a wonder move at the time, given the wide interest rate differential between the franc and forint. Continue reading »

Chvaletice chimneysCEZ, the Czech utility, has become a big electricity player across central Europe. But one lucrative source of future profits lies not in the dirty business of generating power but in the ostensibly cleaner activity of selling carbon emissions credits.

According to a new report by the Sandbag Climate Campaign, a British non-profit environmental group – which looks at allowances given out as part of the EU’s Emissions Trading Scheme, designed to create a market for trading greenhouse gas emissions – CEZ stands to be a big beneficiary. Continue reading »

I’m fascinated by Huawei Technologies: it encapsulates all the challenges that fast-growing Chinese companies face – from governance to branding – and then some.

It’s already the world’s second largest manufacturer of mobile network equipment by revenue, but Huawei’s latest big bet is to be one of the world’s top three mobile handset brands by 2015. Wan Biao, chief executive of Huawei’s device unit, set the target at Wednesday’s launch of its cloud-computing  smartphone, the “Vision”, based on Google’s Android operating system. Continue reading »

There are three kinds of tourists: those who have braved the Trans-Siberian , those who wouldn’t bother and those who dream of it all their lives but never get around to buying a ticket.

The Golden Eagle, Russia’s first luxury tourist train, caters for the latter group, transporting about 1,200 mainly elderly tourists on the world’s most iconic railway journey every year. Continue reading »

Steve Jobs once said that innovation distinguishes a leader from a follower. But sometimes it’s safer to follow a leading innovator than to go it alone. That’s clearly been the thought in China where shanzhai products are more abundant than the real thing.

It must have been what the Ukrainian national security secretary was thinking too, when she ‘borrowed’ words from a speech Steve Jobs gave at Stanford in 2005.  Continue reading »

StanChart in IndiaAre Standard Chartered’s India dreams going up in smoke?

Just over a year ago, the emerging markets-focused bank told the Financial Times it expected profits from Indian to surpass those from its core Hong Kong market by this year. The prediction was accurate. In 2010, India became StanChart’s most profitable market, generating a pre-tax profit of $1.2bn, a sixth of it overall profits.

But fortunes come and go. And on Wednesday, the bank’s disappointing first half performance in India, where profits fell by 39 per cent, is a gentle reminder that doing business in Asia’s third biggest economy is tough and not without its pitfalls. Continue reading »

One of the biggest tests of India’s openness to acquisitions by foreign companies got underway on Wednesday in the country’s Supreme Court.

The Delhi-based court’s judges have begun weighing an appeal by Vodafone (VOD:LSE), the UK-listed telecoms group, over a $2.5bn tax bill levied on its purchase of the Indian assets of Hong Kong-based Hutchison Whampoa. Continue reading »

A typical journey of three kilometres in Jakarta is covered faster on foot than in a cab. Traffic congestion, which lasts all day every day, is the scourge of the Indonesian capital, drawing endless complaints from residents.

The near-complete lack of decent public transportation means most individuals prefer to have their own cars or motorcycles, while those that don’t rely on motor taxis. Now Indonesia’s entrepreneurs smell an opportunity.  Continue reading »

* Mubarak trial begins in Cairo

* Syrian unrest keeps oil traders on edge

* StanChart Q1 profits beat forecasts, but headwinds in India

* China rating agency cuts US credit rating

* Brazil steps up fight against imports Continue reading »

What caught the beyondbrics team’s eye on Wednesday: what is behind Walmart’s struggle in South Africa, how to prevent future famines and why Kirin’s decision to go to Brazil is rather a half empty pint. Continue reading »

By Shaomin Li and Seung Ho Park of the Skolkovo Institute for Emerging Market Studies (SIEMS)

Behind the latest accounting scandals in many foreign-listed Chinese companies lies a widespread problem of data manipulation. It is nicely summed up in a modern Chinese parable: a locally-listed food company makes up a news release saying a flood washed away its turtles – a Chinese delicacy – and later issues another saying the turtles swam back when the flood receded. But the problem also shows up in hard numbers.

Continue reading »

Where Western giants are loath to tread in the realm of sovereign ratings, a small Chinese upstart knows no such fear.

Both Moody’s and Fitch refrained from downgrading the US triple A credit score after lawmakers cut a deal to raise the government’s debt ceiling. But Dagong, the Chinese rating agency best known for downgrading the US rating last year, decided the conditions had been met for another downgrade. Continue reading »

Mainland Chinese tourists are the fuel of Hong Kong’s roaring high street, but the flood of money is a mixed blessing for the island’s homegrown retailers.

Rising rents are pricing some independent and local retailers out of the island’s most prestigious addresses as Chinese visitors snap up the international and luxury brands that are heavily taxed or not yet available on the mainland. Continue reading »

* China rating agency cuts US credit rating

* Brazil steps up fight against imports

* China makes pessimistic steel production forecast

* Slim bids $6.5bn for Teléfonos de Mexico

* Danone buys Wockhardt nutrition’s unit 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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