Colombia’s high-stake elections
Juan Manuel Santos, Colombia’s president, has a lot riding on the outcome of Sunday’s mass election of mayors and local councilors.
Up to 130,000 candidates are estimated to be vying for 13,000 posts, and 41 have already died during a bloody campaign. Continue reading »
Argentina: let the dollar hunt begin
The Great Dollar Hunt has begun in Argentina.
The big question, a couple of years back, was where Argentina would get the dollars from to service its debt. Then it raided central bank reserves to solve that problem. Now the new problem is where to get the dollars from to shore up the currency. Continue reading »
Kenya: testing times ahead
In a year’s time Kenya’s president, Mwai Kibaki, will stand down and the government he heads will be dissolved. As rivals position themselves for the election-battle, Kenya, and east-Africa generally, will face arguably its most important period since independence from Britain nearly 50 years ago.
An FT Special Report on doing business in Kenya looks at the difficulties facing a country riven by political and economic challenges. Continue reading »
Polymetal: keeping the faith in Moscow
Does the fact that three Russian mining and metals companies are all seeking full listings in London at the same time signal jitters over the environment at home, with Vladimir Putin set to return as president next year?
Not according to Alexander Nesis, founder of one of them – the gold and silver producer Polymetal.
“The business climate is more stable than ever before,” Nesis, Russia’s 39th richest man, tells beyondbrics. “This is good for those businesses which exist today.” Continue reading »
Julius Malema, the stock exchange and black share ownership
Not for nothing did Julius Malema, the militant youth leader of the African National Congress, make the Johannesburg Stock Exchange a prime target in his march for “economic freedom” that ended today.
For Malema it is an embodiment of white monopoly capitalism. But by the exchange’s calculations, black South Africans hold at least 17 per cent of the stock of top 100 JSE companies, and as much as 28 per cent of the available shares. It’s a contentious issue that goes far beyond the numbers. Continue reading »
Mobile towers: the next big investment opportunity in Africa?
Emerging Capital Partners, the Africa-focused private equity group, has money to invest and knows how it wants to spend it. The group has, historically, pumped a quarter of its investments into telecommunications and will maintain that commitment – but with a bit of a tweak.
ECP thinks the African telecoms market is at an “inflection point” with the large, established operators looking for new ways to drive growth without investing vast sums on infrastructure. So, the fund has decided to concentrate on smaller, infrastructural investments where it thinks there is value to be found – right now, that means mobile towers which can be shared by different operators to reduce costs. Continue reading »
Hungary: Mol’s €600m energy boost
What with erratic government taxation policies, and a waning economy, investor confidence is not exactly high these days where Hungary is concerned.
But that does not seem to have put off Mol, the domestic oil and gas company, from teaming up with Cez, the Czech energy group, to build a 860 megawatt power station at an estimated cost of €600m adjacent to Mol’s oil refinery 15 miles south of Budapest. Continue reading »
Pork prices fall, politburo rejoices
China eats a lot of pork. Half of all the pork in the world, to be precise.
So it is good news in Beijing, then, that Chinese pork prices are finally coming down. The cost of a kilo of pork has fallen nearly nine per cent from the high reached in mid-September, to the relief of housewives and diners across the country. Continue reading »
Baidu: cashing in on Google’s retreat
What China slowdown? Baidu, the country’s top search engine, has taken full advantage of Google’s partial retreat from China and reported impressive results in the third quarter that came in ahead of analyst expectations.
Total revenues, at Rmb4.18bn (US$655m) are up 22 per cent compared to the last quarter, and 85 per cent from a year ago. Combine that with a 57 per cent operating margin, and it’s pretty clear that Baidu sits squarely upon a very attractive piece of the Chinese internet market. Continue reading »
[snap]: Lisin snaps up Freight One with $4.2bn knock out bid
Vladimir Lisin has won control of Russian rail car operator Freight One, beating out rival tycoon Gennady Timchenko who was favoured to win the auction.
Lisin, Russia’s richest man, won with an opening bid of 125.5bn roubles. ($4.2bn) Continue reading »
New York headlines
* Bric nations cautious on rescue fund
* HSBC to sell Brazil consumer finance unit
* Canal Plus in talks to control Poland’s TVN
* China could play key role in EU rescue Continue reading »
Fund flows: EM equities rebound
Investors are returning to emerging market funds in the global rally prompted by rising hope of a eurozone rescue.
EM equity funds last week recorded a solid inflow of $1bn, the second positive result after 11 weekly outflows totalling US$24.9bn, according to EPFR, the research company.
EM local currency bond funds saw a modest $89m, the first inflow after five consecutive outflows. EM hard currency bond funds took in just $19m – the second inflow after four weeks of outflows totalling $2bn. That will all be a relief to hard-pressed fund managers. But, with the eurozone rescue still incomplete, it’s far too early to say panic over. Continue reading »
Russian rates: holding steady
The Russian central bank had an easy call to make on Friday – and it made it. With the global economy slowing, while the domestic economy is putting in an unexpected growth spurt without much impact on inflation, officials rightly left well alone. All key interest rates are unchanged, with the benchmark refinancing rate staying at 8.25 per cent.
Investors barely reacted to the decision, which was bang in line with expectations. The RTS index was 1.6 per cent up in early afternoon trading lifted by the global confidence in the eurozone rescue plan. Continue reading »
Further reading: money troubles
Friday’s top picks from the beyondbrics team: India’s cacophony of tax proposals; Europe’s appeal to China’s cash; Egypt and Israel’s improving relationship; and Russia’s increasingly Chinese far-east region. Continue reading »
Thai flood: central bank cuts forecast
Thailand’s central bank has slashed its growth forecasts as flood-waters reached Bangkok, affecting manufacturing and domestic demand. In a statement released Friday, the bank cut its 2011 growth projection from 4.1 per cent to 2.6 per cent and warned that a further revision could follow in November.
Such a large cut, alongside a slight reduction in the forecast 2011 inflation rate – down 10 basis points to 3.8 per cent – implies a significant chance of an early interest rate cut. Continue reading »
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