Never mind catching up with Mexican magnate Carlos Slim – it seems Eike Batista may not even be the richest man in Brazil any more.
Shares in his flagship oil start-up OGX slumped another 19 per cent on Thursday after plummeting 25 per cent on Wednesday. That’s about 40 per cent in two days. Taking into account the contagion effect on his other companies, which also suffered heavy losses, the last two trading sessions have wiped about $6bn off his personal wealth, according to Forbes.
That’s $6bn in less than 20 hours – not even Eike could spend his cash that fast. Continue reading »
Panic set in overnight (okay, yes we are being a bit melodramatic) when Moody’s announced a downgrade of some of the biggest names in Brazilian banking.
Moody’s ratings actions affected the Brazilian subsidiaries of Spain’s Santander, HSBC and ING, as well as the local lenders Bradesco, Banco do Brasil, Itaú-Unibanco, Banco Safra, Votorantim and the exchange operator BM&FBovespa. They were downgraded by one to three notches, mostly to bring them nearer to the sovereign rating as part of a global overhaul of Moody’s view of the financial sector first flagged in February. Continue reading »
It sounds good – an emerging powers’ pact in the form of free-trade deal between China and members of the South American cutsoms’ union, Mercosur – some of whom are already big trading partners. But will it happen?
What will 1,500 Turks be doing this year in the desolate space between Weldiya and Awash in Ethiopia? The answer is “building a railroad” following an announcement on Thursday by Turkish construction company Yapi Merkezi.
The contract is part of ambitious plans by the Ethiopian government to build a 5,000 km railway network – and a sign that Chinese companies increasingly face competition from other EM companies in the battle for Africa’s infrastructure. Continue reading »
A substantial new Chinese loan deal for a Bosnian power plant indicates the progress that the country is making in realising its potential as an energy exporter. In a region in which several countries have a power deficit, Bosnia is leveraging its competitive advantages and drawing international investment to the electricity sector.
Energy Financing Team, a UK-based company active in Balkan energy markets, has secured a €350m deal with the state-owned China Development Bank (CBD) to construct a 300MW coal-fired plant in Stanari, northern Bosnia. Continue reading »
As Mongolia goes to the polls for parliamentary elections the country – remote, still largely unknown, the most sparsely populated on Earth – is enjoying a rapid and well documented boom as it begins to exploit its vast mineral wealth. “We want to be Chile” – this is the mantra of many Mongolians. They are not after the Chilean climate or its wine but rather they aspire to join the ranks of those resource-rich countries that have managed to avoid the “resource curse” and achieve a sustainable, fair and balanced economy. Continue reading »
If the world of central bank interest policy were a dance contest, the Czech National Bank would easily be out-limboing the European Central Bank as the Czechs on Thursday cut their benchmark interest rate by 25 basis points to a record low of 0.5 per cent.
That sticks with a long-running policy of keeping rates below those of the ECB, whose benchmark rate is 1 per cent – although a recent Reuters poll found that 48 out of 71 analysts tipped the ECB to cut rates next week, most of them forecast a 25 basis point cut to 0.75 per cent. Continue reading »
Emerging markets may have some catching up to do in economic terms, but they are often miles ahead of developed markets when it comes to adopting new technology.
Take contactless payments. In the majority of shops in the western world we continue to fiddle with pin numbers and receipts, while in far-flung cities like Istanbul consumers simply waive their mobile phones or plastic cards and a transaction is complete. Continue reading »
Thursday’s further reading: Mexico waits for its Sherlock Holmes, China looks for good leaders, and Bo Xilai’s luxury London home. Polish contractors also scored an own goal, how Coca-Cola is betting on India, and China tests it’s Shenzhen “Hong Kong” ambitions. Plus, have privatisation scams come to an end in Russia?Continue reading »
Rats. Raw sewage in the streets. Garbage to go. These are but of a few of the quality-of-life issues that continue to afflict many parts of major Indian cities like Mumbai.
And yet, few Mumbaikars – or Delhi-ites – would be surprised to learn that India has seen the biggest rise in housing prices of any country in the world in the ten years from 2001 to 2011, according to a study released by Lloyds TSB International this week. They need only look at their rent check, or downpayment. Continue reading »
After more than three years of fully open access, we are taking the step of asking our readers to register on FT.com to read our articles. Beyondbrics will still be free but we'd like to know a bit more about you, our readers. Other FT blogs (including Alphaville) already do the same thing. Registration is active on beyondbrics from May 6.
Many of you are already registered on FT.com, or are subscribers - in which case, if you are logged in to the site you will not notice any difference. Just carry on as before.
For those of you not yet registered, it's a simple process which only takes a few moments.
Reading beyondbrics articles will NOT deduct from your free monthly quota of stories on FT.com.