It was meant to be a big day: a chance for Hugo Chávez to celebrate Venezuela’s glorious accession to the South American trade bloc, Mercosur, while making a triumphant return to the regional stage from which he has been startlingly absent for the last year and a half thanks to his battle with cancer.
Whenever the subject of partners for Argentina’s YPF to develop the Vaca Muerta shale deposits crops up, it isn’t long before someone suggests China as a potential investor.
So Carlos Bulgheroni’s admission that the Bridas group, in which his family and China’s CNOOC each own 50 per cent stakes, is planning to invest Vaca Muerta with YPF will have a lot of people sitting up. Continue reading »
Last week’s $3bn Rosneft eurobond caps a strong year for Russian corporates which have so far raised $14.8bn from the international debt markets – well up on $12.1bn for the whole of last year and approaching 2007′s record $18.1bn, according to Dealogic, the research company.
The success of Russia’s corporate giants in attracting investors at ever-lower yields opens the way for second- and third-tier companies to tap the markets next year – as long as international investors remain flush with cheap money. Continue reading »
But since the announcement the gloss appears to have worn off. The share price has fallen to below what it was before the announcement, and rating agency Moody’s has downgraded the company a notch, to Ba1. Why? Continue reading »
Citigroup’s announcement of sweeping cuts after less than two months under Michael Corbat, the bank’s new chief executive, may have surprised by its timing. Nevertheless, the fact that Citi is paring back or closing down its operations in several emerging markets has an air of inevitability about it.
But is Citi aping HSBC’s plan of focusing on only a few, profitable emerging markets? Or is it dressing up a hurried retreat as a carefully-honed strategy? Continue reading »
Increasing demand for commodities in the past decade boosted shipping and encouraged shipbuilding. But just as giant bulk carriers take a while to stop, so does building them. Dinesh Sharma, senior consultant at Drewry Maritime Advisors, explains to Jonathan Wheatley, deputy emerging markets editor, what impact overcapacity is having on the industry.
By Jeffrey Sullivan and Simon Maynard of Allen&Overy
The Russian Supreme Arbitration Court (SAC) – Russia’s Supreme Court – has crystallised long-held doubts about the enforceability under Russian law of what are known as “optional arbitration clauses.”
Its ruling means that parties which have until now been required to bring any claims under a contract to international arbitration may have to go instead to the Russian courts. Companies with such contracts would do well to read the fine print again – and consider renegotiating deals to get rid of optional clauses. Continue reading »
The bulls now driving the Indian stock market on Thursday seized on another piece of good economic news – and pushed stocks to a new two-year peak and the rupee to its highest for a month.
Investors welcomed the vote in the lower house of parliament to approve retail reform and reports that the ruling Congress party would secure a majority to get the measure through the upper house.
Never mind that parliamentary approval isn’t strictly necessary or that the actual decisions on retail liberalisation have been devolved to the states – or that it will take years for foreign retailers to roll out stores and make a difference to the economy. The important point is that there is once again a bit of hope about investing in India. Continue reading »
Ukraine’s government has delayed talks with the International Monetary Fund on a billion-dollar loan programme that bankers say is crucial to shoring up confidence and stabilising state finances, triggering yet more confusion and concern among bondholders and other investors. Continue reading »
If China’s days of growing at 10 per cent are over, what might be a plausible average growth rate for the near future?
Pessimists suggest 6 per cent because of the huge overhang of over-investment that is widespread across different sectors of the economy and the long list of difficult reforms ahead. Standard Chartered’s economist Stephen Green suggests the likely rate over the next five years is 7 per cent without big bang reforms in the interim. Continue reading »
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