Billionaires evidently don’t win every time.
On Tuesday, Chile’s Supreme Court halted the planned $5bn Central Castilla thermoelectric power plant and port project. The court cited environmental concerns in its decision to put the kibosh on the power plant, a joint venture between Brazilian billionaire Eike Batista’s MPX Energia SA and Germany’s E.ON. Read more
See no evil, hear no evil, speak no evil.
That, apparently, is the mantra of the Argentine government when it comes to inflation. And woe to those who contradict it. Just ask the folks at Consumidores Libres, a non-profit that tracks prices and represents consumers in consumer protection lawsuits. Read more
Telling apart legitimate medicine from the fake is a big problem in many parts of the world, especially Africa. But as with many innovations in that area of the world, a simple text message may do the trick.
Bharti Airtel has partnered with US tech company Sproxil to crack down on counterfeit pharmaceuticals in Africa using just a mobile, a scratch-off label, and an SMS message. And the technology may extend to other businesses too. Read more
Pity MTS. On the eve of the Russian telecom group’s triumphant return to Turkmenistan – and on the day it reported an earnings margin of over 40 per cent – the company was forced to announce a $1.1bn write-off of its Uzbek telecoms business.
The write-off comes amid a fight between MTS and the Uzbek regulator, which has accused the telecoms group of owing the state over $900m in back tax payments. Read more
Which city’s stock market can boast that it has outpaced almost every other exchange in the world so far this year?
The answer is Istanbul, where the ISE 100 index of top listed companies has jumped more than 30 per cent year to date, leaving almost everywhere else behind, apart from frontier bourses such as Caracas and Cairo. Read more
Hungary’s forint fell sharply against the euro on Tuesday’s surprise 25 basis point rate cut to 6.75 per cent.
With the economy heading for recession, the central bank’s first rate cut in more than two years could be followed by others. Governor Andras Simor and colleagues have clearly decided that investors’ doubts about Hungary’s economic policies have eased enough for the bank to take a bit of chance with the foreign exchange markets. They are now more afraid of recession than they are of a run on the forint. Read more
For South Africa right now, it’s all about mining. The labour unrest that has hit Lonmin’s mines dominates the news from the continent.
Dig into the GDP data released on Tuesday, and mining is also the big story. GDP for the second quarter came in at 3.2 per cent up on the previous quarter when it was 2.7 per cent. But any thoughts that South Africa’s economy is evading the global slowdown should be banished. The bounce back is all about the trials and tribulations of the local mining industry. Read more
By David Edgerly
The international jury may still be undecided on the development of Egyptian politics and economics, but local investors have already handed down their verdict of enthusiastic support. The Cairo Stock Exchange has been one of the stellar performers this year with a gain of over 40 per cent. Read more
Major automakers are considering raising diesel engine production capacity in India to capitalise on exploding demand for the highly-subsidised fuel.
Toyota Motor and Maruti Suzuki, India’s biggest carmaker, have both said in the last week that they are mulling expansion plans. Ford and Volkswagen are also looking to boost diesel engine production capacity. Read more
The economic gloom seeping out of western Europe is creating increasing difficulties for the small and open economies of central Europe – with both Hungary and the Czech Republic now in recession.
However, Slovakia, the smallest and most open of the three countries, is powering ahead, notching up 2.7 per cent annual GDP growth in the second quarter, thanks largely to the European motor industry. Read more
Philippine Airlines, the country’s flag carrier, announced on Tuesday it placed firm orders with Airbus for over 50 aircraft worth about $7bn in what the airline described as the “biggest aircraft deal in Philippine history”.
The new orders, which more than double the airline’s fleet from only 39 planes to close to 90 in a few years, is a crucial element in the airline’s efforts to reverse a steady decline in market share to low-cost local carriers and state-subsidised international airlines. Air travel is growing at a rapid clip of 16 per cent a year in the Philippines but PAL has been unable to catch up because financial troubles kept it from re-fleeting. Read more
* Singh hits out at auditor over coal report
* India: BSE regulatory action hits stocks
* Hungary to refrain from rate cut on inflation, bailout concern
* Apple seeks quick bans on eight Samsung phones Read more
Ask any investor or ordinary Indonesian about their biggest gripe and it’s likely to revolve around infrastructure, whether it’s lack of power or poor transportation. As in many other developing nations, complex bureaucracy, nervousness about the involvement of the private sector and a lack of financing have prevented Indonesia from building the roads, bridges, airports and power stations it needs to maintain economic growth at the current trend of more than 6 per cent a year. Read more
Tuesday’s picks from the BB team: Investors may do well to ignore the Samsung sell stampede; why the Indian government should focus on upholding the rule of law, not restricting freedom of the web; China’s non-performing loan problem could be worse than the government is making out; the obstacles in the way of Barclays attempt to unify its African operations; plus, how junk bonds may give a boost to Chinese SMEs. Read more
Lee Kun-hee, the 70-year-old chairman of Samsung Electronics and South Korea’s richest man, will have food for thought after the company’s legal defeat by Apple in California last Friday. But developments closer to home could soon give him a new headache: lawmakers are seeking to tackle the complex shareholding structures through which the founding families of South Korea’s chaebol conglomerates keep their grip on their corporate empires. Read more
With the shock of the Apple-Samsung verdict still reverberating around the smartphone world, here comes a sharp reminder of the fact while these two giants may have their problems, life is much harder for their competitors.
Shares in Foxconn International Holdings (FIH) plunged on Tuesday after it reported a record first-half net loss. The company, the Hong Kong-listed subsidiary of Hon Hai Precision, is only one chunk of the Taiwanese parent group’s empire. It’s not the bit that works for Apple: FIH’s customers are Apple’s hard-pressed rivals, led by Nokia. Enough said. Read more
Despite glowing predictions of becoming a “rising star” in Asia, Myanmar has generated more uncertainty than optimism when it comes to its much-delayed foreign investment code.
The saga has dragged on for more than eight months, since president Thein Sein promised a liberal new foreign investment regime late last year, and his industry minister (who also heads the Myanmar Investment Commission, the body overseeing foreign investment) just weeks later announced key points at the World Economic Forum in Davos. Read more
Anti-corruption protestors vent their anger over Coalgate
India’s ruling Congress party had hoped that Monday’s parliamentary performance by the prime minister, Manmohan Singh, would lay to rest the auditor general’s accusations of a major scandal in the allocation of coal blocks to private sector companies.
But the whiff of impropriety surrounding the allocation of coal blocks is unlikely to disappear anytime soon. The Central Bureau of Investigation is now probing whether some companies that won the valuable assets falsified information and documents to qualify for an allocation that they would not been eligible for otherwise. Read more
Being tall is a big deal in China. Some parents send their children to summer holiday camps specifically tailored to making them taller. Jobs often specify a minimum height. Leg lengthening, though illegal, is still on offer. The Chinese are definitely heightist.
So Yao Ming, the retired NBA centre who stands 7 foot 6 inches tall, has always had a bit of an advantage in his home country – and not just on the basketball court. He sponsors countless products and good causes; he is one of few mainlanders to rise to stardom in a foreign sport; it would be hard to think of a physique and a name more recognisable than his. Read more
India’s SKS Microfinance fell as much as 14 per cent in early trading on Tuesday after the Bombay Stock Exchange relegated 74 companies to trade-to-trade settlement, a regulatory procedure that requires buyers and sellers to settle the trade after each transaction.
Analysts said the stocks had dropped because trade-to-trade settlement slowed down a stock’s trading momentum because each trade has to be individually settled. It is also a way for the exchanges to keep an eye on stocks whose volatility they suspect may have been manipulated. Read more