* Rousseff postpones state visit to US
* Brazil central bank action helps real rally
* China reforms open way for short-sellers
* Novartis’s Alcon embroiled in Chinese corruption allegations
* ‘Hot money’ stays sticky in India as rupee crisis looks over
* Corporate Indonesia worries as rupiah wobbles
* South Africa mining bill sparks controversy:
* VW targets new rich with plan to build luxury cars in Brazil
* Philippine army steps up efforts against rebels as hostages escape
* Iran’s supreme leader pushes for flexibility in nuclear talks
* Markets: middling
Rousseff postpones state visit to US: The Brazilian president, who discussed the matter with her US counterpart Barack Obama in a phone call late on Tuesday, said the existing schedule for the visit of October 23 was untenable given the lack of a satisfactory response or promise from Washington to cease spying.
Brazil central bank action helps real rally: The Brazilian real climbed against the dollar on Tuesday after two rounds of central bank intervention, catching up with the week’s rally in emerging markets as investors bet on the gentlest possible start to ‘tapering’ by the US Federal Reserve. Brazil’s currency, initially one of the hardest hit by fears of a sharp drop in global liquidity, has risen fastest among all major currencies since the country’s central bank announced an intervention programme worth some $60bn on August 22.
China reforms open way for short-sellers: Regulators have tripled the size of a trial programme that allows investors to short shares, and indicated that they want to let more private cash into the state-dominated banking sector. They also have taken steps to support the issuance of local government bonds and opened the country’s closely guarded capital account a little wider.
Novartis’s Alcon embroiled in Chinese corruption allegations: Alcon, the eyecare division of Novartis, said it would investigate claims it used fake clinical trials to bribe doctors in China, the latest in what has become a steady stream of corruption allegations against mostly foreign pharmaceutical groups in the country.
‘Hot money’ stays sticky in India as rupee crisis looks over: The rupee has rebounded in recent weeks, after Raghuram Rajan, the new central bank governor, promised financial sector reforms. Nervousness remains about the potential shrinkage of the US Federal Reserve’s quantitative easing programme, but most observers think the “taper” will be gradual. There is a sense that the worst of the currency crisis in Asia’s third-largest economy might be over says the FT’s James Crabtree.
Corporate Indonesia worries as rupiah wobbles: The rupiah has been the hardest hit of Asia’s main currencies since the talk of Fed tapering surfaced in late May, down nearly 13 per cent against the dollar. That has driven the cost of servicing dollar loans sharply higher at a time when Indonesian companies are already facing rapidly rising wages and input costs. But unlike in the prelude to the late 1990s crisis, companies and banks have been more restrained about how much they borrowed and for how long, and many without dollar revenues have put in place hedging strategies.
South Africa mining bill sparks controversy: South Africa is open to amending a controversial mining bill that has alarmed the industry at a time when mining companies are already battling on several fronts, government members have told the Financial Times.
VW targets new rich with plan to build luxury cars in Brazil: Volkswagen is to restart production in Brazil with plans to build its luxury Audi cars in the country so as to target the nation’s increasingly affluent consumers. Rupert Stadler, chief executive of Audi, said on Tuesday that the German company would invest about €150m in Brazil by 2015 to produce its A3 and Q3 models.
Philippine army steps up efforts against rebels as hostages escape: Philippine government troops stepped up efforts on Tuesday to end a stand-off with Muslim rebels holding scores of hostages in Zamboanga, a major southern city. Intense fighting allowed almost a hundred hostages to escape but the death toll from eight days of clashes increased to 99, according to the AFP news agency quoting a military spokesman.
Iran’s supreme leader pushes for flexibility in nuclear talks: Ayatollah Ali Khamenei, the supreme leader of Iran, has advocated flexibility in talks with major powers in a rare public acknowledgment of his determination to find a solution to the dispute over the country’s nuclear programme.
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