Daily Archives: Nov 21, 2012

Brazilian real: dirty float here to stay

Nov 21, 2012 10:24pm by Joe Leahy

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It looks like the mighty real is on the march. After being confined in a “dirty float” of between R$2 and R$2.05 against the dollar for some months, Brazil’s currency closed at R$2.0985 on Wednesday, the lowest according to Bloomberg since May 2009.

There is now speculation the government could let the currency drift in a higher band, of say between R$2.05 and R$2.15 to the dollar after Brazilian President Dilma Rousseff told a local newspaper, Valor Econômico, that the real is “over-valued”.

The government’s rationale for such a move would be simple. Brazilian industry is struggling to recuperate after a strong currency, rising labour costs, increased competition from imports and other factors eroded its competitiveness in recent years.

Tags: Brazilian real Posted in Brazil, LatAm | Permalink

Argentine civil servants looking at mandatory staycation

Nov 21, 2012 8:44pm by Jude Webber

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Argentine civil servants in the central province of Córdoba have been given an early Christmas present: January off.

The idea is not exactly new – it was successfully employed in January this year, for example – but then neither is the cash crunch facing many Argentine provinces, which rely on the central government for key funds.

Córdoba, furthermore, is run by a governor, José Manuel de la Sota, with presidential aspirations in 2015, who has clashed in a high-profile fashion with Cristina Fernández, the president, and her government in recent months.

Tags: Córdoba, Cristina Fernández Posted in Argentina, Global, LatAm | Permalink

Turkey’s second investment grade: if not now, later

Nov 21, 2012 6:28pm by Daniel Dombey

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For those in the room it seemed to be a case of expecting a party and getting a lecture instead.

Despite strenuous efforts by Moody’s Investors Service to point out that its annual credit risk conference on Turkey was planned months ago, it proved impossible to dampen expectations that the event would see the ratings agency deliver investment grade to Ankara, so letting loose billions of dollars of institutional funds on the country. (Fitch gave Turkey the palm earlier this month.)

Hence the undercurrent of disgruntlement in Istanbul’s Ciragan Palace on Wednesday, as Turkey’s rating remained where it was, at Ba1, a notch below investment grade, albeit with a positive outlook. Continue reading »

Tags: credit ratings, Turkey economy Posted in Europe, Turkey | Permalink

S Africa data: don’t be deceived

Nov 21, 2012 4:45pm by Rob Minto

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While economists wait to see what effect the recent strikes in mining and other sectors have on Q3 GDP, indicators coming out of South Africa this week are a bit deceptive. They look pretty flat – but there are signs things are getting worse.

Inflation nudged up to 5.6 per cent from 5.5 per cent in September. And a business confidence index nudged down, from 47 to 46. It doesn’t leave the Reserve Bank much room for manoeuvre on rates. Continue reading »

Tags: South Africa economy, South Africa inflation Posted in Africa, South Africa | Permalink

Warsaw poised for $773m bank IPO

Nov 21, 2012 4:19pm by Jan Cienski

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A bit of excitement for the Warsaw Stock Exchange in the final weeks of the year as Alior Bank, a small but fast-growing bank, on Wednesday announced the conditions for an initial public offering that could be valued as much as 2.5bn zlotys ($773m).

That would make it the largest IPO on the WSE since last year and the largest-ever by a non-state Polish company, according to Bloomberg. Continue reading »

Tags: Alior, banking, IPOs Posted in Poland | Permalink

MOL hits back at bribe verdict

Nov 21, 2012 3:45pm by Stefan Wagstyl

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MOL, the Hungarian oil group, is sticking to its guns. In a statement on Wednesday the company categorically rejected the findings of a Croatian court in which Croatia’s former prime minister Ivo Sanader was found guilty of corruption – including taking bribes from MOL. Continue reading »

Tags: corruption, INA, Ivo Sanader, MOL Posted in Croatia, Hungary | Permalink

Ryanair to cut 1 in 3 Budapest routes

Nov 21, 2012 3:40pm by Kester Eddy

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Ryanair, the bargain-basement Irish carrier, is cutting one in three of its routes to Budapest as a result of increases in landing and handling fees imposed by both Budapest Airport, the German-owned airport operator, and the state-controlled Hungarian Civil Aviation Authority, beyondbrics has learned from industry sources. Continue reading »

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

China’s Communist party: how do you get admitted?

Nov 21, 2012 1:07pm by Leslie Hook

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If China’s 83m Communist party members formed a country, it would be the sixteenth largest in the world. So when the party’s most elite congress gathered this month, propaganda apparatchiks worked overtime to try to highlight the diversity of the assembly: the ethnic minorities (wearing traditional costumes), female party members (who composed 23 per cent of the congress delegates), and entrepreneurs, who were only welcomed into the party in recent decades.

But what exactly does it take to get admitted to the secretive Leninist organisation that runs the world’s second-biggest economy? Continue reading »

Tags: Communist party of China, politics Posted in Asia, China | Permalink

Pakistan: politics, not investment, to keep the gas flowing

Nov 21, 2012 12:06pm by Farhan Bokhari

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With elections looming in Pakistan by summer 2013, prime minister Raja Pervez Ashraf has ordered officials from the ministry of petroleum and natural resources to make certain that there are no shortages of gas this winter.

Ashraf’s order follows some of the shortages of electricity earlier this year which prompted angry street protests. Any repeat of demonstrations over gas shortages as winter temperatures get near freezing in parts of Pakistan – as happened last year (pictured) – would hardly help the prospects of Ashraf’s ruling Pakistan People’s Party (PPP) returning to rule the country for another five years. Continue reading »

Tags: oil & gas, Pakistan politics Posted in Asia, Pakistan | Permalink

New York headlines

Nov 21, 2012 11:48am by beyondbrics

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* Glencore-Xstrata to win EU clearance

* Standard Life revives Indian listing plan

* Asian stocks advance as US housing boosts export outlook Continue reading »

Posted in Global | Permalink

Philippines banks may merge, but don’t expect broader consolidation

Nov 21, 2012 11:47am by Roel Landingin

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Two of the biggest banks in the Philippines said on Wednesday they were in talks about a merger that would create the country’s biggest bank by assets.

The plan bodes well for the Philippines, which has one of the smallest banking sectors among its peers in south-east Asia. Continue reading »

Tags: banking, M&A Posted in Asia, Philippines | Permalink

Remittances set to grow even faster than expected, despite high costs

Nov 21, 2012 10:33am by Stefan Wagstyl

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Migrant workers are doing overtime to keep the world economy going. One of the few pleasant surprises of the post-2008 global economic turmoil has been the strength of remittance flows to the developing world.

In a report this week the World Bank says remittances are expected to exceed earlier estimates and reach $406bn this year, an increase of 6.5 per cent over 2o11, with further gains in the next three years. The main impediment is the high cost of the transfers – a full 12.4 per cent for sub-Saharan Africa. Continue reading »

Tags: remittances Posted in Global | Permalink

GM: more trouble in Korea

Nov 21, 2012 10:04am by Song Jung-a

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Labour unions at GM’s Korean subsidiary are up in arms over the company’s plans to shed jobs and to move some production out of the country, as the carmaker launches a new early retirement programme for office workers.

It is GM’s second attempt so far this year to reduce its headcount as it tries to cut costs with European losses weighing on profits. Continue reading »

Tags: GM, labour unrest Posted in Asia, South Korea | Permalink

EM debt in 2013: small is beautiful

Nov 21, 2012 9:37am by Rob Minto

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The volume may be similar, but the names are changing. That’s likely to be the story of emerging market soveriegn debt in 2013, according to a report from Barclays, as lots of first time issuers look to tap the markets.

And rather than big benchmark issuers such as Turkey, South Africa and Russia driving the supply of hard-currency bonds, the biggest issuer next year may well be Indonesia. Continue reading »

Tags: EM debt, Eurobond, sovereign debt Posted in Africa, Asia, Europe | Permalink

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Daily Archives: Nov 21, 2012

Brazilian real: dirty float here to stay

Argentine civil servants looking at mandatory staycation

Turkey’s second investment grade: if not now, later

S Africa data: don’t be deceived

Warsaw poised for $773m bank IPO

MOL hits back at bribe verdict

Ryanair to cut 1 in 3 Budapest routes

China’s Communist party: how do you get admitted?

Pakistan: politics, not investment, to keep the gas flowing

New York headlines

Philippines banks may merge, but don’t expect broader consolidation

Remittances set to grow even faster than expected, despite high costs

Further reading: faith and corruption

GM: more trouble in Korea

EM debt in 2013: small is beautiful

BB: time to register

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