Daily Archives: August 16, 2011

While Venezuela’s socialist government doesn’t seem to see much cause for concern in the recent market turmoil, what does get its pulse racing is the fact that it has billions of dollars of foreign reserves stashed away in banks under the control of “imperialist” regimes.

Worrying that its foreign assets are in danger of being frozen one day, as has happened to Libya, the government is allegedly planning to shift its international reserves to banks in “friendly” countries – namely China, Russia and Brazil. Continue reading »

For a business that’s supposedly not for sale, Carrefour’s Brazilian unit has sure had a lot of potential buyers.

After Brazil’s eccentric retail magnate Abílio dos Santos Diniz failed to push through a deal last month, it appears that Walmart is now trying its luck at an acquisition. Continue reading »

Singaporean fans of Manchester United last caught glimpse of their favourite club when the Red Devils visited the country in a one day trophy-touring parade in July. But as of next year, they, along with millions others, could well have the opportunity to buy shares in the 19 times Premiership champions if the club’s plans to do a partial float on the Singaporean stock exchange go through.

Yet, as Manchester United gears itself up to become a publicly listed company once again (it was delisted after the Glazers bought it in 2005), the question that is being asked among the club’s UK-based fans is not only why Singapore over say, Hong Kong, but why Asia more generally? Continue reading »

The Swiss franc might have weakened slightly against the euro and the US dollar from record highs last week, but the stress it has caused borrowers has certainly remained. It is still high enough to be causing worry for the hundreds of thousands of Polish homeowners who took out mortgages denominated in francs and for the banks which lent them the money.

A new study by Open Finance, a financial advisory firm, finds that almost half of the Swiss franc mortgages granted from 2006-208 (the height of Poland’s real estate boom) are underwater – meaning the unfortunate homeowner owes more than the value of the property. Continue reading »

Nestle in ChinaHere’s an investment idea for all the traders out there who are nursing burnt fingers. Buy Hsu Fu Chi.

Clever investors would remember a deal, closed earlier this summer, in which Nestlé agreed to acquire a 60 per cent stake in the Singapore-listed Chinese candy-maker for $1.7bn, or S$4.35 per share, in cash.

On Tuesday, shares in Hsu Fi Chi were trading at S$4.21 pixel time. According to Bloomberg calculations, traders who buy in at the current share price can lock in an annualised 23 per cent return if the deal closes at the end of the year. Continue reading »

The political turmoil in Egypt since the start of the year has taken a heavy toll on company earnings as first half results reveal. Compared to the mayhem, loss of life and physical destruction in Libya and Syria, Egyptians consider that they have suffered considerably less in their revolutionary transformation. While 850 people were killed and many others were injured, the state has survived and economic assets have emerged intact.

Even so tourism, investment and consumer confidence have been hit badly. That is largely the story being told, and in particular by one company’s H1 figures: Orascom Development. Continue reading »

Brics and mortarOne of the big mysteries of traveling in Brazil is wondering whether you’ll be able to use your computer, hairdryer or shaver when you arrive.

Depending on where you go, the voltage can be 100V or 127V or 220V and there are at least 12 different kind of plugs and sockets. (And that’s not including the baffling reluctance of airports, restaurants and hotel rooms to put sockets in their walls.) Continue reading »

Since the start of the latest global financial crisis, Beijing has been having a ball gloating at the plight of the West. But if the American dream has truly been strangled by a noose of debt – as the Chinese government seems to think – then why is emigration still so attractive to so many Chinese?

According to the Blue Book of Overseas Chinese published on Monday in Beijing, since 1978 total emigration from China has exceeded 4.5m.  Continue reading »

Manchester United is considering a US$1bn IPO in Singapore and that the deal could be launched by end of this year provided market conditions remained conducive at the time of issuance, IFR reported on Tuesday, citing a source with direct knowledge of the plans.

With more than 190m fans in Asia, out of nearly 300m around the world, the region has become an important growth area for the team. More to come on beyondbrics Continue reading »

“China is in the driver’s seat of global M&A” says a PwC consultant referring to the amount of merger and acquisition activity by Chinese companies abroad this year. This may well be the perception at the moment, especially in the view of some of the major targeted countries like the US and the UK.

But while Chinese companies hungry for new technology and skills are venturing abroad in unprecedented numbers, foreign investors are still gobbling up China faster than their Chinese counterparts are buying up the rest of the world. Continue reading »

* CEE: caught in Germany’s downdraught

* Uncertainty plagues RIM in India

* Growth worries weigh on commodities prices

*Tech shares lift Asian markets

*Sino-Forest delays publication of fraud review Continue reading »

Merkel worriedHot on the heels of the bad GDP numbers from Germany comes evidence of economic slow down in central Europe.

On Tuesday, the Czech Republic, Hungary, Slovakia and Romania all reported slower GDP growth in the second quarter, due in large measure to the disappointing performance announced earlier in the day by Germany, central Europe’s biggest trading partner.

Continue reading »

Duvvuri Subbarao, governor Reserve Bank of IndiaIndia’s inflation rate has eased a little – but not enough to prevent at least one more interest rate increase.

Wholesale prices rose 9.2 per cent last month, down from 9.4 per cent in June and 9.6 per cent in May, according to data published on Tuesday. So the trend is clearly down. But the deceleration is so slow that the Reserve Bank of India seems certain to raise rates at least once more in the current cycle – probably next month by 25 basis points. Continue reading »

Tuesday’s top picks from the beyondbrics team: why South Korea deserves more respect, why the US not the Middle East will dominate energy policy and what Android makers hope to get from the Google-Motorola deal. Continue reading »

Brics and mortarMuscovites have learned to expect the worst from summer: fires, coups, defaults. This year, however, the city has been in for a treat for a different kind: a massive overhaul of Moscow’s sidewalks.

Moscow authorities have began replacing the asphalt pavement with bricks on Moscow’s biggest drags in an effort to cut down, they say, on the harmful emissions the asphalt releases in the summer and also the frequency at which the sidewalks need to be replaced. For Moscow pedestrians, however, the reconstruction presents a daily dilemma: is it better to trudge through endless piles of dirt and sandpits, or risk your life among the cars on a whizzing six-lane highway? Continue reading »

Global equities macromap

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

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