* Mexican president’s tax reform proposals win mixed reception
* Roberto Azevêdo urges WTO to reach $1tn global trade deal in Bali
* Mozambique joins high yield, frontier market bond spree
* Batista to contest pumping $1bn into OGX
* PKK halts removal of fighters from Turkey in blow to peace process
* ICC under scrutiny as Kenya’s deputy president faces trial
* Mining group Bumi’s split from Indonesia’s Bakrie family delayed again
* Foreign firms turn to FX swaps to fund Chinese operations
* Tin jumps on Indonesia export fears
* Markets: up
Mexican president’s tax reform proposals win mixed reception
The Mexican government’s sweeping tax reform plans surprised many by being milder than expected. But middle-class voters complained they were still being clobbered and the main opposition, pro-business, party warned an accompanying fiscal stimulus risked launching the country on a slippery economic slope.
Roberto Azevêdo urges WTO to reach $1tn global trade deal in Bali: The new head of the WTO, who succeeded Pascal Lamy at the beginning of this month, has used his debut address to members to issue a rousing call for them to reach a deal in Bali later this year that would add up to $1tn to the global economy.
Mozambique joins high yield, frontier market bond spree
Mozambique has joined the debt spree in sub-Saharan Africa with a state-backed agency tapping investors’ appetite for high yields and frontier markets with the country’s first ever US dollar-denominated bond. The government-guaranteed $500m seven-year bond was sold on Friday to international investors yielding roughly 8.5 per cent.
Batista to contest pumping $1bn into OGX
Eike Batista plans to contest a decision to pump up to $1bn of his own money into OGX, delivering a setback to investors in his cash-starved oil company. The former billionaire warned that if the dispute were not resolved within 60 days he would take the issue to the arbitration court of Brazil’s stock exchange, according to a regulatory filing by OGX on Monday.
(Beyondbrics has a good backgrounder on this rather complicated story here
PKK halts removal of fighters from Turkey in blow to peace process
The Kurdistan Workers party (PKK), the militant group that has battled Turkey over three bloody decades, has announced it has halted the withdrawal of its fighters from the country in a move that raises questions about the peace process between the government and the banned organisation.
ICC under scrutiny as Kenya’s deputy president faces trial: Kenya’s deputy president, William Ruto, is due in the dock at The Hague on Tuesday in a trial that could unsettle the International Criminal Court as much as the east African nation whose leaders are accused of crimes against humanity.
Mining group Bumi’s split from Indonesia’s Bakrie family delayed again: “The separation process has already taken months. It blames the delay on the complexity of the deal, discussions on arrangements with the Bakries for payment, plus a simultaneous split between the family and their Indonesian partner Samin Tan, who would become the single largest investor in Bumi by buying the Bakrie stake.”
Foreign firms turn to FX swaps to fund Chinese operations: Multinational companies said that they could raise more money, more quickly and more cheaply by borrowing in dollars and swapping the money into yuan than if they borrowed directly in yuan through the offshore yuan-denominated bond (Dim Sum) market in Hong Kong.
Tin jumps on Indonesia export fears: Tin hit a five-month high on Monday amid growing uncertainty about supply from Indonesia, the world’s second-biggest producer and leading exporter. In an attempt to gain greater control over tin, one of the country’s most valuable commodities, the government now insists all locally produced ingot is traded through the Indonesian Commodity & Derivative Exchanges (ICDX) before it can be exported.
MSCI Emerging Market Index up +0.67% at 980.31
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Hang Seng up +0.59% at 22,885
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CNX Nifty up +1.85% at 5,785
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