The clash between the US Securities and Exchange Commission and China over accounting regulatory standards probably won’t come to a head for another ten months. But the prospect that the SEC’s high-profile attack on the Chinese affiliates of the Big Four and BDO could lead to a wholesale delisting of Chinese companies from the US stock market appeared enough to spook investors. Read more
A few months ago, Alexandre Tombini, governor of Brazil’s central bank, told beyondbrics that Brazil was finally “going horizontal”. Enough of picking winners and piecemeal, ad hoc measures, he said: it was time for across-the-board reforms that would deliver a more efficient economy and a level playing field for all.
So much for that. Back in the present day, Guido Mantega, optimist and finance minister, on Tuesday announced cuts in payroll and other taxes and a special line in finance for the construction industry. After Friday’s shocking GDP figures, it looks like a knee-jerk effort to get the economy moving – or at least its most labour-intensive sector. Read more
Michael Buscher, chief executive of Oerlikon has reasons to be cheerful. The Swiss machine builder just sold its natural fibre and textile divisions to the Chinese Jinsheng Group for SFr650m ($700m).
It’s good deal, Buscher reckons, given that the divisions’ SFr1.1bn yearly revenues were seen as too cyclical. “As of now, we’re a better balanced and more profitable firm.” But Jinsheng has reasons to cheer as well. Read more
A reminder that strikes in South Africa keep ticking along: miner Coal of Africa has been hit by a walkout over the suspension of four workers, with work stopping at its Mooiplaats mine.
Unsurprisingly, the shares have been hit hard: down at one stage nearly 9 per cent in Johannesburg and 9.8 per cent in London. Prices have recovered a little, to around 7 per cent down on both exchanges. (The primary listing is in Australia.) Read more
It is not every day that one of the world’s industrial giants sets up shop with one of the titans of a big, dynamic economy, so Eon‘s proposed joint venture with Sabanci Holding of Turkey has caused quite a stir.
Eon is taking a fifty per cent stake in Enerjisa, the energy group half-owned by Turkey’s Sabanci Holding, replacing Austria’s Verbund, which previously held the shares and which is exchanging its holdings for full ownership of eight Bavarian hydro-electric power stations. Read more
Brazil’s central bank issued a rule change on Tuesday covering “advance receipts for exports”, a form of export finance. The contracts were previously limited to 360 days; now they may be extended to 1,800 days (five years to you and me). It is significant because such contracts are not subject to the 6 per cent IOF (financial operations tax) charged on other forms of overseas borrowing.
In other words, Brazil is relaxing its capital controls. Read more
The Warsaw Stock Exchange is no exception to the global decline in trading volumes, which is causing problems for smaller companies facing difficulties attracting investor interest. The authorities are doing what they can – but it’s like trying to control the tides. Read more
By Yvonne Mhango of Renaissance Capital
Elections in Ghana tend to arouse less uncertainty than those in most of sub-Saharan Africa, due to its relatively stable political environment and mature democracy. This was affirmed by the smooth constitutional transfer of power following President John Atta Mills’s death in July, to his former vice-president, John Dramani Mahama.
However, a tight presidential election on December 7 – like that of 2008 – would increase the political risks. And there is a lot a stake from the ramping up of oil production to dealings with the IMF. Read more
First one warning about the vulnerabilities in Russian banking. And now another.
Last week Alfa Bank highlighted the potential problems associated with the recent rapid growth in consumer lending and the dependence of banks on central bank finance. This week Standard & Poor’s is pointing to precisely the same risks. Read more
By James K Glassman
As the global economy continues its sputtering recovery, policymakers have an opportunity to take a strong stand on principles that may help mitigate further long-term damage. In particular, as regards Argentina, a relatively small country with a potentially large impact on the international financial system.
For a decade, responsible nations have watched impassively as Argentina has refused to abide by court decisions and flouted global financial norms. Read more
Is the new leadership in Beijing going to crack down on the billions in illicit funds long believed to be bank-rolling Macau’s spectacular rise as the Las Vegas of the East?
That’s the question investors were asking as they sold down Macau gaming shares on Tuesday, following new reports that a handful of junket operators had been arrested for suspected money laundering. Read more
* Audit firms face SEC China crackdown
* Sberbank calls on Central Cank to boost liquidity
* BNY Mellon joins Argentina spat Read more
Benigno Aquino, president of the Philippines, shared his father’s words of warning earlier this week in a speech marking the 20th anniversary of the Manila exchange: “Unless you’re a big boy, don’t play in the stock market. You will only get burned.”
Clearly lots of investors in the country have chosen to ignore Aquino Sr’s advice: on Tuesday the Philippines equity index closed at a record high – its 7th in a row, and its 34th this year. But, after a romping run, some analysts are getting edgy. Read more