The Argentine central bank’s sales of foreign currency reserves have reached a two-year high. But there’s nothing to worry about says Mercedes Marcó del Pont, governor of Argentina’s central bank.
She says the peso is competitive, there’s no risk of a sudden devaluation, accelerating capital flight is just a pre-electoral thing, and even if reserves slip below $50bn, there’s nothing to be concerned about because Argentina is using those reserves to pay off debt, and that is “virtuous”. Continue reading »
‘Danger’, ‘risk’, and ‘loss of credibility’ have been the buzz words among some Brazilian analysts on Thursday. Central bank president Alexandre Tombini has even gained the nickname Pombini, a play on the Portuguese word for dove (‘pombo’). Continue reading »
The risk of further decline in Europe and the US is growing while Asia is growing and attracting investment. Robert Subbaraman, Nomura’s chief economist for Asia ex-Japan, tells the FT’s Robert Cookson what he thinks would happen if the worst case scenario comes to pass.
Striking workers at Shougang’s iron ore mine on Peru’s south coast have put the spotlight on Chinese investment.
Chinese companies are expected to invest some $10bn in the Andean nation in the next five years, about a fifth of the anticipated foreign investment. So questions of how Chinese operations are managed – and for whose benefit – are critically important, particularly with new president Ollanta Humala pledging simultaneously to safeguard investors’ interests and spread the fruits of economic growth more equally. Continue reading »
The first photos of the new Volkswagen model Up! were released only a few days ago. The associated press release talked about a car that’s small, but full of potential. Just like the country where it’s to be assembled.
The decision to make Up! in Slovakia underlines the importance of the kind of foreign investment that often goes unnoticed – the expansion of factories where ribbons were cut years ago. Volkswagen arrived in Slovakia in the early 90s and opened a factory in Martin 11 years ago: so it already part of the landscape. But with eurozone growth slowing and domestic demand weak, the new model can bring Slovakia a much-needed boost. Continue reading »
“Give me a one-handed economist!” President Truman used to ask. But look around the world at the moment, and it is divided between economists offering the kind of “on the one hand, on the other hand” advice that so exasperated Truman.
Brazil’s central bank clearly did not feel sitting on the fence was an option. It has just delivered a surprise 50 basis point cut. Financial markets’ parsing of this unexpected move is that Brazil believes growth rather than inflation is its biggest concern. This has prompted economists at HSBC to wonder who might be next. “Will everyone now go Brazilian?” it asks. Continue reading »
A dark skin complexion remains one of Indian society’s most visible taboos.
Indians are becoming more western in their consumer habits, buying anything from jeans to mobile phones, but on one point they remain resolutely traditional – the preference for fair over dark skin. Continue reading »
Work is humming on Warsaw’s Zlota 44 tower, an iconic building being put up by Orco Property, but the signs of activity do not mean that one of the largest developers in central Europe is out of trouble.
Gavyn Davies weighs in on the debate about whether “miracle” growth rates from emerging markets can compensate for failing growth in developed countries. In his piece below the page break he examines the longevity of the Asian growth miracle and argues that while growth might progressively slow down, it will remain high by historic standards. Continue reading »
Three lots of economic data – and a surprise interest rate cut in Brazil – highlight the contradictory pressures on India’s central bank as it considers whether to raise rates again, perhaps as soon as this month.
Food prices rose 10.05 per cent year-on-year in the week to August 20; exports soared 82 per cent in July; and Maruti Suzuki, India’s biggest carmaker, saw a 12.7 per cent plunge in sales last month. Meanwhile, in Brazil, the central bank cut rates by 50 basis points in response to mounting concerns about the global economy. Continue reading »
Thursday’s top picks from the beyondbrics team: why a rate cut may be wrong medicine for South Africa, what Russia needs to change to achieve a credit upgrade and BP’s Russian roulette experience. Continue reading »
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