Daily Archives: October 14, 2011

Mexico and Chile to cut rates? A warning for the doves

October 14, 2011 7:50 pm by Jonathan Wheatley
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Chile’s central bank keeps policy rate unchanged for third month in a row… Mexican central bank keeps policy rate unchanged for 27th month in a row…

Not much to get excited about, you’d think. But analysts are getting excited. Chile, which has been in a tightening cycle since June last year, looks ready to start loosening next month. Many analysts think rock-solid Mexico is ready to cut too, as the global slowdown takes its toll. But at least one analyst says monetary doves face a hard landing. Continue reading »

Tags: , , Posted in Chile, LatAm, Mexico |

Zawya stake up for sale

October 14, 2011 6:55 pm by beyondbrics
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By Camilla Hall and Robin Wigglesworth

In the opaque, shadowy world of Middle East business and politics, information can be worth its weight in gold. One of the first to realise this was Ihsan Jawad, a British-Iraqi investment banker, who founded Zawya, a regional data provider, in his Abbey Road apartment in the middle of the dotcom boom.

Although the internet bubble eventually imploded, Zawya continued to grow rapidly, and entered into a partnership with Dow Jones Newswires in 2006. It now has 200 staff in the United Arab Emirates and Lebanon offering a wide range of data, information, news and analytical tools for the Middle East and North Africa. However, changes are now afoot. Continue reading »

Tags: , Posted in Middle East, United Arab Emirates |

Chart of the week: are wages the key to competitiveness?

October 14, 2011 6:15 pm by Rob Minto
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Wages are the key to competitiveness – aren’t they? Well, yes and no. They are an important factor in costs, and can dictate where stuff is made. But they aren’t the whole story.

Two recent stories about wages – a deal in South Africa to reduce the minimum wage, and strikes in Brazil – highlight the same issue: China. This week’s chart (after the break) looks at minimum wages in different countries – and the numbers are surprising. Continue reading »

Tags: , , Posted in Global |

Unilever: a €500m makeover in Russia

October 14, 2011 5:22 pm by Stefan Wagstyl
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Russian models display stylish hairdos 2011Unilever isn’t wasting any time in implementing its aim of generating 70-75 per cent of revenues from emerging markets by 2020.

On Friday, it announced a €500m plan to buy Russian cosmetics maker Concern Kalina in a deal that would make the Anglo-Dutch group Russia’s second-biggest personal care company. It will overtake L’Oreal and stand just behind its global rival Procter & Gamble. Continue reading »

Tags: , Posted in Europe, Russia |

African telecom: S Korea calling

October 14, 2011 4:40 pm by Andrew England
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The news that Korea’s KT Corp is in talks to buy a 20 per cent stake in South Africa’s Telkom is further evidence that China is not the only Asian power showing an interest in Africa and that the attraction goes beyond minerals.

Telkom on Friday announced that if the deal goes through it would issue new shares to KT at R36.06, a 12 per cent premium to the closing price on Thursday. The value of the transaction would be around $600m and give the Korean firm a foothold in the continent. Continue reading »

Tags: , Posted in Africa, Asia, South Africa, South Korea |

EM bank branches keep on growing

October 14, 2011 3:58 pm by David Keohane
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Banks in emerging markets are still expanding – their networks, at least – albeit at a much slower rate than before the financial crisis.

This is in stark contrast with the developed world where bank networks have had a century to expand and are now static or contracting.  According to a report, from Velhon Partners, a consulting group, growth in EMs means their banking networks are having to expand at higher sustained rates than their developed counterparts ever had to. Continue reading »

Tags: Posted in Global |

Solving Croatia’s foreign debt woes

October 14, 2011 3:20 pm by Neil MacDonald
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With election season heating up, Croatia’s exporters are anxious to make their voices heard. Nine successful manufacturers and exporters formed a club last month calling for tax incentives to boost competitiveness and draw more hard currency into the debt-laden country.

“Our debts are in euros, dollars or whatever,” explained Drazen Matiegka, president of Eurocable Group, a high-tech cable manufacturer, and a founder of Lider Exporters Club. “Exporting is the only way to solve the problem. Or else we could sell islands, sell power utilities. But you can’t sell those again.” Continue reading »

Tags: , Posted in Croatia, Europe |

Koreans to Occupy (their) Wall St

October 14, 2011 2:09 pm by Song Jung-a
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Occupy Wall Street members in the US

Occupy Wall Street members in the US

When it comes to demonstrations, Koreans are second to none. The country’s vociferous civic groups and militant labour unions plan to join the “Occupy Wall Street” movement in the US and hold a massive rally this weekend in Yoido, central Seoul, where most major financial institutions and regulators are based. Continue reading »

Tags: , Posted in South Korea |

China’s windfarms: new safety fears

October 14, 2011 1:37 pm by Leslie Hook
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China is the biggest wind turbine maker – and consumer – in the world. But its wind industry is increasingly being plagued by safety concerns, most recently with an accident this week that killed five people. Continue reading »

Tags: , Posted in Asia, China |

Fund flows: EM redemptions slow

October 14, 2011 12:30 pm by Stefan Wagstyl
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A "slow" boat cruises on the Mekong riverA bit of stability in emerging markets in the last 10 days has helped fund managers to staunch the outflow of investors’ money.

Outflows from EM bond funds in the last week slowed dramatically to $305m from $1.4bn the previous week and US$3.2bn the week before that, according to figures from EPFR, the research company. Outflows from EM equities dropped to $900m  – down from $3.3bn and US$2.6bn.

That doesn’t mean we’re headed for a recovery in sentiment. But if the markets remain a bit more stable,  investors may stop selling and wait and see what the next few weeks will bring. Continue reading »

Tags: , , Posted in Global |

IFC takes punt on Russian banks

October 14, 2011 12:03 pm by beyondbrics
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By Ben Aris, business new europe

The World Bank’s commercial arm, the International Finance Corporation (IFC), is getting into the Russian fund business. In June, it launched the third fund focused on the country’s banks, the Russian Bank Opportunity Fund, which it hopes will tap into the potential growth of the financial sector and help drive its consolidation at the same time. Continue reading »

Tags: , , Posted in Europe, Russia |

New York headlines

October 14, 2011 11:52 am by beyondbrics
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* China inflation dips to 6.1% in September

* Emerging countries in talks on IMF boost

* Slovakia approves bail-out expansion

* Rajaratnam sentenced to 11 years in jail Continue reading »

Posted in Global |

Asia’s mixed monetary message

October 14, 2011 10:53 am by Rob Minto
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How fast is Asia likely to slow as the developed world shudders towards a possible recession?

Quite fast, says the Indonesian central bank which on Tuesday cut interest rates. Not quite so fast, responds its South Korean counterpart, which left its rates alone on Thursday. Not sure, says the Singapore Monetary Authority, which on Friday eased policy very slightly, following the release of GDP suggesting the island state – a key hub for the region’s emerging markets – is heading for a slowdown. Continue reading »

Tags: , , Posted in Asia |

India’s supply problems drive inflation

October 14, 2011 10:15 am by Neil Munshi
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India’s persistent high inflation – which is causing interest rates to rise and growth forecasts to fall – comes down to supply side constraints that have plagued the country for years.

The slight moderation in India’s inflation rate announced Friday, down from August’s record 9.78 per cent to September’s still high 9.72 per cent, means India is likely to face yet another interest rate hike before the year is out. Last September inflation was 8.98 per cent. Continue reading »

Tags: , , Posted in India |

China in Dubai: courting the hunters

October 14, 2011 10:00 am by Simeon Kerr
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It is said that the Chinese are leading the scramble for Africa. In Dubai, the very Chinese firms leading that charge have become a target for major banks looking to maintain their Middle East franchises in the midst of the Arab revolts.

Over the past couple of years, global banks have been placing teams in Dubai to serve the Chinese multinationals that are heading into the region seeking hydrocarbons and infrastructure contracts. Continue reading »

Posted in China, United Arab Emirates |
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