Daily Archives: Nov 17, 2011

It’s been a long time coming but S&P has finally awarded Brazil with its first straight A. Okay, it may be an A- and it’s only on local currency debt, but for a country that was once laughed at by investors for its hyperinflation and continuous currency crises, it’s one hell of an achievement.

S&P upgraded Brazil’s long-term foreign currency sovereign rating to BBB from BBB- but raised its long-term local currency rating to ‘A-’ from ‘BBB+’. Read more

S&P has upgraded Brazil’s foreign currency rating by one notch to BBB from BBB- with a stable outlook.

S&P said: We expect the government to pursue cautious fiscal and monetary policies that, combined with the country’s growing economic resilience, should moderate the impact of potential external shocks and sustain long-term growth prospects. Read more

Not a good day for Hungary. Investors piled into the country’s currency and stocks on Thursday after the economy ministry said it would, after all, enter into an agreement with the International Monetary Fund to provide an “insurance contract” for investors in the country.

This was an embarrassing U-turn for the government but investors loved it. Until, that is, the IMF poured cold water on the whole idea. Read more

Foreign direct investment into Brazil in the first nine months of this year grew by a mighty 123.6 per cent compared to the same period last year, according to the central bank. Evidently, Latin America’s powerhouse is attracting an enormous amount of productive investment. Then again, maybe not. Read more

It’s usually bad form to hit someone when they’re down but that may be what happens to emerging markets – and particularly central Europe – if eurozone banks are forced to deleverage to meet new capital requirements that come into effect next year. Read more

The rand hit a four week low against the US dollar this week, the latest dip in the currency’s recent rollercoaster ride as concerns over the eurozone crisis weigh heavily on South Africa. Read more

By Neil Munshi and James Fontanella-Khan

Looks like the market, at least provisionally, is ready to believe in the King of the Good Times again. Now they have more to think about, as the embattled Indian billionaire tells the FT he is close to sealing a last-minute deal to keep his debt-ridden Kingfisher Airlines airborne. Read more

As bond yields across Europe climb ever higher, one frontier African economy has managed to get a $409m bond issue away at a yield 150 basis points less than it paid a month ago.

Of course, Nigeria still had to offer an eyewatering yield of 16.5 per cent but any improvement on the even more painful 18 per cent it payed in October is welcome – particularly for an economy that is struggling with inflation, low growth and a high interest rate which is posing a dilemma oft repeated in the region. Read more

It looks like Anglo American has read the FT’s Lex column and taken its advice to heart: it now wants to sit down this week with Codelco, the Chilean state mining company, and find a way to avoid years of litigation over Anglo’s Chilean assets. Read more

The Hungarian forint soared over 2 per cent against euro and the Bux was up 3.8 per cent on Thursday following news that Budapest will, after all, drop its opposition to seeking support from the International Monetary Fund and start talks immediately.

The government has been forced into an embarrassing U-turn after its borrowing costs soared earlier in the day, with the state selling 2022 bonds at an average yield of 8.78 per cent – up from 8.17 per cent two weeks ago. Read more

Traditionally, politicians have kept an eye on voter sentiment to stay in their jobs. In the current environment markets are much more important, as the recently ousted leaders of Greece and Italy can attest.

That’s why Poland’s Donald Tusk is likely to aim a speech on Friday, setting out his government’s priorities for the next four years, as much at credit rating agencies as at voters. Read more

Despite deep political tensions and a vulnerable economy, Bahrain has managed to issue a $750m sovereign bond, becoming the first strife-hit country of the ‘Arab spring’ to tap capital markets since unrest began in January.

The seven-year sukuk is paying out 6.3 per cent, twice as expensive as, say, oil-rich Abu Dhabi, one of the city-states to have escaped street protests this year. But,  in the circumstances, the Bahrain government will be grateful for the terms it has secured. Read more

Another European bank in need of a rescue.  This time it’s a small bank in a small country but the Lithuanian government’s surprise decision to take control of Bank Snoras will have officials elsewhere redoubling checks on their own institutions.

Vilnius insisted on Thursday its banks were safe after the state’s takeover on Wednesday of Lithuania’s fifth-largest bank by assets. The authorities acted after finding an alleged hole of 1bn litas ($392m) in the bank’s balance sheet. Read more

A prototype common platform for trading south east Asian stocks with a combined market value of around $2,000bn will open in June next year, the chief executives of the seven participating exchanges said on Thursday.

The system, known as the Asean Trading Link, will initially connect the Kuala Lumpur’s Bursa Malaysia and  the Singapore Exchange, with the Stock Exchange of Thailand joining in August after a new trading engine goes live. Other  bourses will come later. Read more

* Shell pulls out of Kurdistan oil talks

* Fresh UBS rogue trading revelations

* Shandong Gold to offer $785m for Jaguar Mining

* India central bank to buy bonds Read more

The Philippines may have to import more rice next year than it originally planned after government estimates released this week showed the country will likely miss its 2011 production targets for the staple food that most Filipinos eat three times a day. Read more

It’s been another miserable day for China property bulls. Stocks in listed developers took another dive, while turnover data showed a rapid fall over the last week.

Now construction machinery executives are getting gloomy too. Read more

Benetton, the fashion group, has a long tradition of controversial advertisements. This year’s version is no exception – and comes with a strong emerging markets flavour, which gives beyondbrics a good excuse to print a few choice items (see pictures left and below). Read more

An Indian  bus conductor counts his rupeesForeign money may be flowing out of Indian equity markets, but the country’s banks are experiencing a boom in deposits from Indians living abroad.

With inflation high, savings account interest rates at record levels, and the rupee low  by past standards, non-resident Indians are sending their money back to the motherland in droves. Read more

With the flood waters still washing through Thailand,  assessments of their impact on the economy are steadily becoming more gloomy. On Thursday, Barclays Capital raised its estimates of the cost to 3-4 per cent of GDP from 2-3 per cent.

Down go forecasts for GDP growth for this year and next, and for export-oriented production of electronics, vehicles and food. The only silver lining is that the disaster could prompt the central bank to cut interest rates, possibly as soon as its next meeting on November 30. Read more