Daily Archives: Nov 5, 2012

Argentina’s scorn for the world’s big credit ratings agencies is no surprise –Hernán Lorenzino, the economy minister, last month accused them of “terrorist” tactics.

A reform of the country’s capital markets, then, could provide the government the opportunity it seeks to cut Standard & Poor’s, Moody’s and Fitch down to size, at least on its home turf by allowing in other players, including universities. Read more

Photo: Bloomberg

For years many people thought that Colombia only produced coffee and cocaine. Now, after an impressive turnaround, people think Colombia only produces coal and oil.

However, armed with his Adrien Brody looks and a PhD in Economics from an Ivy League university, Juan Pablo Córdoba, the president of Bogota’s stock exchange, the BVC, is ready persuade you that the local financial market is the future. Read more

For years, in fact since Moody’s Investors Service downgraded Turkey from investment grade 1994, Turkish officials and financiers have been hoping to regain the rating.

On Monday, Fitch gave them their wish, with a BBB- rating. But how much difference does it make? $100bn worth, perhaps?

 Read more

Western Europe tends not to look to eastern Europe for lessons in economic management, but in these straitened times it makes sense to consider the big differences in the impact of the global crisis on four countries that are often lumped together – Poland, the Czech Republic, Slovakia and Hungary. Read more

A strong market rally and improved regulation could tempt up to 20 companies to list on the $54bn Nigerian Stock Exchange in 2013, according to its chief executive officer Oscar Onyema.

The NSE has struggled since a crash in 2008 wiped more than two-thirds off the value of the All-Share Index and damaged investor confidence. Since 2009 there have been only a handful of small listings, compared to 88 between 2006 and 2008.

But in the year to date, the All-Share Index is up 28 per cent – and so is corporate sentiment about coming to market. Read more

Domestic and foreign consortia have together made a total of seven bids to construct a new, second passenger terminal at Ljubljana’s Jože Pučnik Airport, Brigita Zorec, a representative for Aerodrom Ljubljana, the airport operator, told beyondbrics on Monday.

The bidders are, according to Zorec: Read more

Despite the economic stagnation of Col Gaddafi’s regime and its chaotic aftermath, a few men with fat wallets and big dreams have managed to emerge from the wreckage. But corruption and bureaucracy are blocking efforts to regenerate the country’s battered economy. Borzou Daragahi reports from Tripoli. Read more

As mobile phones approach worldwide ubiquity, it’s easy to see that the countries with the biggest populations will have the most connections, with China and India in the lead.

But which companies are serving those customers? And which ones are set to capitalise on the growth in emerging markets? Chart of the week dials in. Read more

Piyush Gupta, chief executive of DBS, talks to the FT’s Jeremy Grant about Chinese non-performing loans, India’s urgent need for political reform and the booming economies of southeast Asia.

* Indonesia’s GDP growth exceeds 6% as investment climbs

* Fitch lifts Turkey to investment grade

* China communist party to probe Wen family wealth

* Chidambaram sees 2012 GDP growth of 5.5-6.0% Read more

Fitch on Monday became the first international credit rating agency to upgrade Turkey to investment grade.

The lira jumped on the news – strengthening by about 0.6 per cent against both the euro and the US dollar. While some investors had expected an announcement in advance of a Fitch conference in Istanbul this week, others weren’t sure the agency would move so soon. Read more

After a few nervous months, Mongolia has secured a power supply agreement with China for the huge Oyu Tolgoi copper and gold mine. Rio Tinto, the Australian miner developing the $6bn project, confirmed on Monday that it had a binding electricity supply deal.

With that in place, the mine is all set to start commissioning in the next few weeks and begin commercial production next summer. Read more

Indonesia’s economy grew by an enviable 6.2 per cent in the third quarter, in line with market expectations. With benchmark rates at a record low and exports responsible for a far smaller portion of the economy than its neighbours, Indonesia appears to have cemented its place as an economy with a high resistance to global headwinds.

Though some had been expecting a little more, most analysts still seem confident that Indonesia will continue to chug along quite nicely. Read more

It looks like India’s controversial decision to retrospectively tax Vodafone to the tune of $2.2bn may result in more than just sternly-worded comments from the likes of George Osborne and Timothy Geithner.

New Delhi’s plans for strengthening economic ties with key partners through new bilateral investment treaties are being put on hold – starting with Canada, whose prime minister Stephen Harper is visiting the sub-continent this week. Read more

Monday’s picks from the BB team: Latin American companies tap the US bond market; South Korea is upgrading its image; and the trouble with the Durand Line. Plus: dividing east Africa; modernising Soviet water facilities; and China’s next generation. Read more

The iPhone’s importance to the electronics manufacturing world was illustrated clearly on Monday in Hong Kong, where shares in one of Hon Hai’s subsidiaries jumped as much as 40 per cent on hopes that it might start building the Apple devices.

Citi analysts spurred the move when they said that Taiwan-based Hon Hai’s problems recruiting for its iPhone factory in Zhengzhou had prompted it to shift some iPhone production to its Hong Kong-listed subsidiary, Foxconn International Holdings. Citi put a buy on FIH for the first time in nearly three years and raised its 2013 earnings estimate for FIH by 134 per cent. Read more

There was a time when experts furiously debated how to define the Beijing model of government and whether its lessons could be applied to other developing countries.

Reading through an official guide to the upcoming Communist party congress (aka the once-in-a-decade leadership transition), it struck me that, at least in its management of media, China has simply stolen a page from Sir Humphrey’s playbook. That is, it has mastered the art of how to say nothing of consequence in the most bureaucratic terms possible. Read more

By Mitul Kotecha of Crédit Agricole.

It was not so long ago when expectations for the Chinese currency, the renminbi, had shifted to a prolonged period of weakness against the US dollar. This corresponded with the view that the Chinese authorities would use their currency as a tool to help cushion the impact of an exports slowdown.

All of this changed in late July from when the RMB began a multi-month period of appreciation at a pace that has astounded many analysts. Read more

* Indonesia’s GDP growth exceeds 6% as investment climbs

* China communist party to probe Wen family wealth

* Chidambaram sees 2012 GDP growth of 5.5-6.0% Read more