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Daily Archives: Oct 12, 2012
The world is used to analysing the impact of China’s slowdown. But what about that of another large emerging economy, whose influence also stretches beyond its borders?
Well, it will come as no surprise that Brazil’s slowdown – from 7.5 per cent in 2010 to 2.7 per cent in 2011 and a forecast 1.5 per cent this year – is hurting neighbours Argentina and Uruguay, where growth generally follows the same cyclical trends. (See chart after jump) Read more
Plucky fellows those market regulators in the small and relatively poor Central American nation of El Salvador. Their opposition has scuppered a deal between two very rich men: one the richest in Ireland, the other the wealthiest in all of the world.
After months of hand-wringing, Digicel, based in Jamaica but controlled by the Irish magnate Denis O’Brien, and Carlos Slim’s América Móvil have renounced plans for a takeover of mobile operator Digicel by the Mexican company, the dominant force in Latin American telecommunications. Read more
YPF is going to market again. The renationalised Argentine oil company is still biding its time for an international bond issue – though that could come later this year or early next. But hot on the heels of its issue last month for some $320m , it now has another offer underway, for up to some $600m. Read more
It’s been a tough old week for the South African rand. On Monday (October 8) it broke the 8.9 rand to the dollar barrier, weakening to levels not seen since the depths of the financial crisis in 2009.
But the pressure was somewhat relieved on Friday, with a little good news. The two-week truck drivers strike came to an end with a sizeable wage agreement. It helped nudge the rand back down to around 8.6 to the dollar. Read more
Last month there was bad news for the world economy from the shipping industry. As beyondbrics reported, freight volumes between China and Europe began to fall in July, and were still dropping – at a time of year when they usually start to rise.
Today, the situation is no better, but it seems that shipping companies are learning to cope with the challenge. Read more
* DBS sells Philippine Bank stake for $620million ahead of Basel
* Renminbi hits 19-year high against dollar
* Workers reject South Africa gold mines’ pay plan Read more
Another Russian equity offering gets away smoothly in London – good for Russia and for the City.
Offered at $12, MD Medical Group’s global depositary receipts rose on Friday to trade around 2 per cent up on their first morning. The company’s $311m offer was a modest morsel for the market in comparison with the $5.1bn heavyweight share sale carried out last month by Sberbank, Russia’s biggest bank. But it shows that, with the right company at the right price, investors are ready to buy Russia. Read more
Friday’s picks from the BB team: Mexico’s city of death is reborn; broadening Egypt’s political priorities; and sheltering Syria’s refugees. Plus: UK relations with Narendra Modi; Brazil raises import tariffs; and how a collapsing rial could help Iran. Read more
But many critics argue it will take more than rate cuts to pull Pakistan’s economy out of trouble. Read more
India’s economy delivered a pleasant surprise on Friday, with figures for industrial output in August showing annual growth of 2.7 per cent, compared to forecasts of a rise of around 1 per cent in the market.
But the increase was not enough to persuade observers that a real recovery is under way. Nor, with inflation still running high, do they see much room for the central bank to cut rates to boost growth – data also published on Friday showed the consumer price index for September at 9.7 per cent. Read more