Daily Archives: February 9, 2012

YPF: placating Argentina

February 9, 2012 11:33 pm by Jude Webber

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More investment was demanded and that is what YPF, seeking to appease the Argentine government, has promised.

After again upgrading its estimate of shale reserves in the Vaca Muerta formation in the western province of Neuquén from 927m to 23bn barrels, the former Argentine monopoly has said it would need a whopping $250bn to develop them in full.

Will that satisfy the government, which is angry at YPF for what it sees as failing to boost production with the same efficiency as it pays out dividends? Time will tell. Continue reading »

Tags: cross border investment, oil & gas, YPF Posted in Argentina, LatAm | Permalink

Argentina gets taste for dollar-linked bonds

February 9, 2012 10:15 pm by Jude Webber

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Argentina’s government sounds a bit Venezuelan at times – imposing currency controls last year and now reviving talk of nationalising one of the country’s flagship companies.

So perhaps it is no surprise that Argentine companies should take a leaf out of Venezuelan investors’ books by issuing bonds with payments tied to the dollar. Continue reading »

Tags: bonds, capital markets, dollar-linked bonds Posted in Argentina, LatAm | Permalink

PDVSA: big talk but can it deliver?

February 9, 2012 9:30 pm by Benedict Mander

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Although the exact level of Venezuela’s oil production has been shrouded in mystery for almost a decade now, there is no doubt about the OPEC nation’s intentions to increase exports to China.

Whether they will equal exports to the US within three years, however, as energy minister Rafael Ramirez (pictured) on Thursday said they would, is of course another matter – if state oil company PDVSA’s consistent failure to meet production targets in the past is anything to go by. Continue reading »

Tags: China-Latin America, China-Venezuela, oil & gas, PDVSA Posted in Asia, China, LatAm, Venezuela | Permalink

Turkmenistan’s one horse race

February 9, 2012 8:30 pm by Isabel Gorst

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Don’t expect any surprises at Turkmenistan’s presidential election this weekend. Gurbanguly Berdymukhammedov, who has ruled the gas-rich country since 2007, will almost certainly win a landslide victory at the poll that is shaping up to be a charade even by central Asian standards. Continue reading »

Tags: corruption, elections Posted in Asia, Turkmenistan | Permalink

Ghana: mixing politics and fuel prices

February 9, 2012 7:45 pm by Keyur Patel

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The government of a west-African country proposed this week to cut a recent hike in fuel prices by 20 per cent, after labour unions threatened to go on strike.

Sounds familiar? This isn’t Nigeria, however – where six days of strikes in January cost the economy around $1.3bn – but nearby Ghana. Continue reading »

Tags: fuel, subsidies Posted in Africa, Ghana | Permalink

Budapest airport: Ryanair pick up passengers, but who picks up the tab?

February 9, 2012 7:04 pm by Kester Eddy

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The scene: the back end of an otherwise swish Budapest hotel.

“Excuse my Hungarian press release: we are a low-cost airline, and we use low-cost translators,” said Michael O’Leary, as he squeezed past journalists handing out Ryanair’s latest routes and flight plans from Budapest at noon on Monday. Previously there had been confusion over the airline’s agreements with Budapest airport. O’Leary left no doubts.

Yet as this chapter drew to a close in the fast-flowing story of Budapest airport post-Malev, another was opening up. A government official said on Wednesday that Hungary could face a bill for up to Ft 1tn (€3.45bn) in compensation claims from Hochtief and other investors that own the airport operating company. Continue reading »

Tags: aviation, Budapest airport Posted in Europe, Hungary | Permalink

World Bank: the case for African free-trade

February 9, 2012 6:00 pm by Rob Minto

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The African Union summit last month sounded the rallying call for intra-African trade as the key driver for economic growth on the continent, and called for the creation of a free-trade area. Now this week the World Bank has released a report on exactly that subject.

The stakes are high: the World Bank forecasts that economic slowdown in the eurozone could shave Africa’s growth by up to 1.3 percentage points this year. Africa is “losing out on billions of dollars in potential trade earnings every year”. So what’s the verdict? Can Africa make a free-trade area happen? Continue reading »

Tags: Free trade areas, trade, World Bank Posted in Africa | Permalink

Guest post: ‘local-contentism’ and the clash for competitiveness

February 9, 2012 3:37 pm by beyondbrics

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By Marcos Troyjo

As global capitalism struggles to find a way out of an existential crisis, a strong trend is showing its face in the world economy. Against a backdrop of great uncertainty, countries are increasingly adopting industrial and trade policies based on a notion we can call “local-contentism”.

The practice is becoming the most recurrent tool in bulking up a nation’s capacity to compete in world trade and attract investment. But it carries a heavy price tag. Continue reading »

Tags: currencies, guest post, investment, trade Posted in Global | Permalink

Cognizant: lessons for Indian IT

February 9, 2012 2:14 pm by Neil Munshi

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Indian second-largest software company, Infosys, found out last month that sometimes beating expectations on profits isn’t enough to please the markets.

On Wednesday, Cognizant – the US-headquartered competitor that’s making things tough for Indian behemoths like Infosys and Tata Consultancy Services – found out that sometimes projecting double-industry-standard growth just isn’t enough either, when its stock fell 1.75 per cent compared to a 0.41 per cent rise in the Nasdaq. What’s the problem? And what are the lessons for its Indian competitors? Continue reading »

Tags: India tech, IT, technology Posted in Asia, Global, India | Permalink

Rmb: changing China, not the world

February 9, 2012 1:07 pm by Simon Rabinovitch

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A study of the renminbi published by the Brookings Institution this week outlines how the Chinese currency’s international status still pales in comparison to the dollar’s. It also offers something of a blueprint for how Beijing can change that.

There is, of course, much excitement – and concern – globally about the renminbi’s ascendancy. But the study shows that internationalisation of the currency will do far more to change China before it has a chance to change the world. Continue reading »

Tags: Brookings, renminbi, RMB internationalisation Posted in China, Global | Permalink

S Korea rates: wait and see

February 9, 2012 12:10 pm by Christian Oliver

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No sudden moves from the Bank of Korea on Thursday, which held the base rate at 3.25 per cent for an eighth straight month.

It looks a sensible decision. South Korea’s all-important exports may have suffered an alarming drop in January but it is not yet time to pull the emergency cord. Inflation is still lurking in the wings and Kim Choong-soo, the central bank governor, is still sounding hawkish about combating risks. Continue reading »

Tags: exports, inflation, interest rates Posted in Asia, South Korea | Permalink

New York headlines

February 9, 2012 11:58 am by beyondbrics

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* Indonesia cuts rates to protect growth

* Chinese inflation jumps to 4.5%

* China oil demand growth seen easing in 2012

* Brokers suspended in Libor inquiry Continue reading »

Posted in Global | Permalink

Indonesia’s surprise cut: more to come?

February 9, 2012 11:45 am by Keyur Patel

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Indonesia defied the somber global economic climate in 2011, posting its biggest GDP growth in 15 years – so its central bank’s decision on Thursday to cut its policy interest rate by 25bp to 5.75 per cent took analysts by surprise.

Bank Indonesia – which cut the rate in October and November – said its intention was to provide “a further step to boost Indonesia’s economic growth amidst decreasing performance of the global economy”. But analysts warned that the bank was putting too much emphasis on growth and underestimating inflationary risks – which could force it to reconsider later in the year. Continue reading »

Tags: interest rates Posted in Asia, Indonesia | Permalink

KT and Samsung in smart TV faceoff

February 9, 2012 10:30 am by Song Jung-a

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KT, South Korea’s biggest telecoms operator, is taking on Samsung Electronics to force the world’s top TV maker to pay for its broadband service as Samsung aggressively markets internet-enabled smart TVs.

It said on Thursday it would immediately block internet access through Samsung’s smart TVs because they slow down overall network speed – a move that threatens to stall sales of models Samsung is relying on to keep it profitable. Continue reading »

Tags: internet, technology, telecoms Posted in Asia, South Korea | Permalink

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beyondbrics

Daily Archives: February 9, 2012

YPF: placating Argentina

Argentina gets taste for dollar-linked bonds

PDVSA: big talk but can it deliver?

Turkmenistan’s one horse race

Ghana: mixing politics and fuel prices

Budapest airport: Ryanair pick up passengers, but who picks up the tab?

World Bank: the case for African free-trade

Guest post: ‘local-contentism’ and the clash for competitiveness

Cognizant: lessons for Indian IT

Rmb: changing China, not the world

S Korea rates: wait and see

New York headlines

Indonesia’s surprise cut: more to come?

Further reading: wishful thinking

KT and Samsung in smart TV faceoff

Global equities macromap

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