Daily Archives: Jan 16, 2012

Which Latin American market racked up the most equity offerings in the second half of 2011?

Not Brazil, the regional behometh, with seven deals worth $1.6bn, but Colombia, with seven fatter deals totaling $4.9bn, according to data compiled by Dealogic. Read more

As Brazil’s central bank gears up for what is expected to be another rate cut on Wednesday evening, there is some good news – its present easing cycle seems to be yielding some results.

The central bank’s proxy for gross domestic product, the IBC-Br, rose a seasonally adjusted 1.15 per cent in November compared with October, the fastest pace in 19 months and above the 0.9 per cent market consensus of economists surveyed by Bloomberg. Read more

By comparison with the swathe cut through eurozone credit ratings by Standard and Poor’s, it was nothing.

But Fitch’s decision on Monday to switch from positive to stable on Russia is worth noting. It shows that even a country with $500bn in foreign reserves can’t afford to take the markets for granted when protesters are in the streets demanding the end of the rule of Vladimir Putin. Read more

Leszek Balcerowicz isn’t in the habit of trowelling on the compliments, so it wasn’t much of a surprise when the former chairman of the National Bank of Poland summoned reporters to his think tank on Monday morning to lambast the government’s fiscal tightening and economic reform plans.

The architect of Poland’s jump from socialism to capitalism in the early 1990s was acerbic in his views of Jacek Rostowski, the Polish finance minister, and of the reform proposals put forward by premier Donald Tusk late last year. Read more

If anyone doubted the resolve of the Turkish government on big infrastructure projects, they have now got their answer – at least part of it. Last week, the showpiece $5bn-$6bn tender for a third bridge across the Bosphorus and accompanying highways collapsed when none of the 18 registered companies placed a bid.

But undeterred, the government says the project is going ahead all the same. It has now specified that it will finance the main part of the project, the bridge itself, out of its own resources, and may split up the rest of the tender.

This is a decision set to have consequences for Turkey’s infrastructure needs, the country’s fiscal accounts and, not least, the future of Istanbul itself. Read more

Egypt’s long-awaited talks with the International Monetary Fund started on Monday on a possible $3.2bn loan.

But for investors, that might not be enough, says Raza Agha of RBS, who suggests Egypt might need much more “to raise investor confidence”. Read more

Bahrain’s national carrier is used to perennial business problems, but the state-owned airline wouldn’t have expected a public row with the foreign ministry.

Gulf Air, one of the Middle East’s oldest airlines, has seen its glory days eroded over the years with the rise of Gulf competitors, such as Dubai’s Emirates, Qatar Airways and Abu Dhabi’s Etihad. Read more

The Indian economy got a bit of good news Monday when headline inflation for the month of December fell sharply to a 24-month low of 7.47 per cent year-on-year, down from 9.11 per cent in November.

But a closer look reveals a correction based almost solely on a drop in the price of vegetables and shows that price pressure continues on manufactured products, even as fears grow about another severe depreciation of the rupee if the eurozone crisis deepens. Read more

* Indian inflation falls to two-year low

* Nigeria partially reinstates fuel subsidy

* Ma victory seen boosting Taiwan markets

* India to launch $1bn innovation fund by June-July

 Read more

Following the mass credit rating downgrade of eurozone countries, Renaissance Capital has checked how the Standard and Poor’s ratings map of Europe has changed over the last decade.

As the table below shows,  there’s no surprise to see Greece suffering the biggest decline. But for emerging market investors what’s more interesting are the countries posting increases, headed by Turkey and Russia. Read more

Monday’s picks from the beyondbrics team: Nigerian protests – misdirected suspicion or legitimate calls for economic justice?; Russia’s anti-corruption icon could be the chosen one; why South Africa can take comfort from Zuma’s mistakes; gender imbalances in India improving conditions for women; and why China versus the US is not a zero sum game. Read more

China’s Q4 GDP figures are due on Tuesday. What should we look out for? Here are five things economists say are worth keeping an eye on.

  Read more

Bordeaux vineyards hoping for an early recovery in prices would be disappointed by the weekend sales in Hong Kong but Burgundy’s top names may be the “new Lafite” as the region’s top wines continue to fetch enthusiastic bids.

At the first major wine auctions in Asia this year, collectors stayed away from the younger vintages of Bordeaux’s best known châteaux, with cases of the 1996 Château Lafite Rothschild unsold. Read more

Nigerian President Goodluck Jonathan on Monday partly reduced the recent fuel price rise (after the subsidy removal) that sparked violent protests across the country and pushed up global oil prices.

But with the cut falling short of trade union leaders’ demands for a full reversal of the increase in government-subsidised prices,  the president and the unions were set for further difficult negotiations. Read more

Headline inflation fell sharply to 7.47 per cent year-on-year for December, compared to 9.11 per cent the previous month.

The drop was widely expected, and after a year in which inflation hovered around double-digits, it signalled that the Reserve Bank of India’s 13 interest rate hikes since March 2010 were finally having some effect.It also puts further pressure on the bank to loosen monetary policy at their monthly meeting next month.

* Renminbi deal aims to boost City trade

* Saudis set to open up access to bourse

* Iran warns on output rise after sanctions Read more

Investors looking for an immediate stock market bounce from Taiwan president Ma Ying-jeou’s successful re-election might be a bit disappointed on Monday.

The benchmark Taiex index opened up 60 points, or nearly 1 per cent, on Monday morning to reach 7250 points, bucking a broadly down Asian market, but quickly fell back into negative territory. By mid-morning it was down by 60 points. Read more