Daily Archives: Dec 14, 2012

Anyone fearing Argentina to be told it will be shown a red card by the IMF on Monday over its faulty statistics can relax – at least for a little while.

Christine Lagarde, the International Monetary Fund’s managing director, will still send a report on Argentina to the IMF board on Monday, as planned. But the board itself, which would have to approve the start of a formal censure if that is what she recommends, is not expected to meet until January – the IMF has set no date yet. Read more

Peru has cashed in from tourism in recent years thanks to a clever strategy of exploiting its biodiversity, exquisite food and Inca legacy.

Now hotels chains, with Hilton Worldwide and Marriott International in the lead, are to invest as much as $1.76bn over the next three years as tourism is skyrocketing in the Andean country. Read more

From its distilleries in deepest Scotland, Diageo has got one eye on Africa. The world’s biggest drinks company has been pushing its Scotch whisky brands on the continent and its efforts are paying dividends.

Buoyed by a series of marketing campaigns featuring local celebrities – including Ethiopian Olympic champion Haile Gebrselassie – Diageo’s sales of the spirit in Africa grew by 20 per cent in the last financial year, led by its famous blended Scotch brand Johnnie Walker, which shot up by a whopping 40 per cent over the period. Read more

Shares in YPF, the nationalised Argentine oil and gas company, surged by more than 7 per cent in New York and by nearly 9 per cent in Buenos Aires on Friday morning, before backtracking a bit, after La Nación newspaper reported that Brazil’s Petrobras was selling out of Argentina and YPF could be the buyer. Read more

A nice shot in the arm for the Warsaw Stock Exchange on Friday, with the initial public offering of Alior Bank producing a satisfying 7 per cent pop on its first day of trading.

The 2.1bn zlotys ($673m) IPO was the largest by a private company in the history of the Warsaw Stock Exchange and provides a decent close to what has otherwise been a lackluster year for the region’s largest bourse. Read more

China DailyTo date, the story of China’s growing presence in Africa has been mostly narrated by western media, African newspapers, and a universe of blogs, websites and social media outlets. Often, it is framed in the context of land-grabbing, resource-snatching, neocolonialism and invasion.

So perhaps a different perspective might be provided by China Daily? The state-run paper is launching a weekly Africa edition, and is keen to put its side of the story. Read more

Russia has talked a lot about economic diversification over the past two decades but it has made little progress in weaning itself off revenues from natural resources. A new report by the European Bank for Reconstruction and Development sets out recommendations that might stimulate industrial modernization and tries to make sense of Russia’s abiding addiction to oil. Read more

More bad news for the Polish economy – now the central bank feels that foreign direct investment for 2012 is likely to plummet far below the level of 2011, another sign of the impact of the eurozone crisis and of Poland’s slowing economy.

Pawel Michalak, deputy director of the bank’s statistical department, told a conference this week that FDI this year would come to about €5bn – that compares to €13.6bn last year and €10.5bn in 2010. Part of the problem is a one-time outflow of capital – without that the total of new investments would come to €9bn – but that still marks a disappointing total. Read more

Something does not feel right in Kiev, with a new-old prime minister back in place.

Brawls broke out in parliament ahead of Thursday’s vote by lawmakers to re-instate Mykola Azarov as Ukraine’s prime minister. Then on Friday, an influential oligarch resigned as deputy prime minister in protest at President Viktor Yanukovich’s decision to bring Azarov back. Read more

Generationally low bond yields in the developed world have driven investors to the developing world’s debt. But do we now have an emerging markets bond bubble? Bhanu Baweja, head of emerging markets fixed income strategy at UBS, discusses the outlook for EM bonds with Robin Wigglesworth, capital markets correspondent.

* China manufacturing may expand at faster pace this month

* Shanghai jumps 4% on upbeat data

* India WPI inflation: reasons to be happy – and cautious

* Emerging-market fund flows signal selloff, Bank of America says Read more

The dim sum bond market is one where “firsts” seem to come along with alarming regularity. It’s hardly surprising – the market is only three years old. But many of those firsts are either technical, incremental or, frankly, not that interesting.

However, here’s a potential new thing that looks well worth some attention: the first non-Chinese government body to raise money with a dim sum bond. Read more

Friday’s picks from the beyondbrics team: a less dominant ANC would be good for South Africa; François-Henri Pinault has high hopes for the Brics; and Egypt’s political uncertainty affects the markets. Plus: can Foxconn improve margins now cheap hands are scarce? Russia’s food consumption reflects changes in society; and launching the Karnataka Janata Party. Read more

Hong Kong’s sizeable British expat community is getting excited about next year’s opening of Topshop in the city’s central business district.

But they are not the only reason why Sir Philip Green has decided to open the British brand’s first permanent outlet in greater China. Read more

China’s benchmark stock market jumped more than 4 per cent on Friday, its biggest one-day gain since 2009, ahead of a key Communist party conclave during which the economic agenda will be set for the coming year, writes Josh Noble.

The Shanghai Composite index closed up 4.3 per cent to 2,150 points, its highest level since August. The CSI 300, which includes stocks listed in both Shanghai and Shenzhen, rose 5.1 per cent, while the HSCEI, an index of Chinese companies trading in Hong Kong, rose 1.5 per cent. Equity market performance elsewhere in Asia was mixed. Read more

There are fewer sights that central bankers like more than inflation coming down, but that might not be enough for the Reserve Bank of India to cut rates.

While India’s WPI inflation figure eased beyond most economists’ expectations (of 7.6 per cent) to 7.2 per cent for November, down from October’s 7.5 per cent, analysts are sticking to the prediction for a hold in rates next week. Read more

Chinese manufacturing: workers on the road, Dec 2012There are further signs that the recovery in China’s manufacturing sector is taking hold, even if Santa Claus hasn’t been ordering an awful lot from China this year.

December’s flash HSBC/Markit China purchasing managers’ index stood at 50.9, a 14-month high and an improvement from November’s 50.5. A sub-index for new orders also rose for the fifth month to 52.7, the highest level since April 2011. Read more

* Most Asian stocks fall amid US budget talks deadlock

* China manufacturing may expand at faster pace this month

* China flies aircraft over disputed islands Read more

We come in peace. That could have been the message from Axel Kicillof, Argentina’s deputy economy minister and head of a government commission in charge of approving investment plans, to oil executives gathered for the industry’s annual lunch in Buenos Aires. Read more