US-Latin America: winds of change?

August 10, 2011 8:00 pm by Andrés Schipani

Share this on

Some people have fairies at the bottom of the garden; some have Chinese investors. While the United States was busy looking inwards (and towards the Middle East) waves of Chinese investors have entered Latin America - strengthening the idea that the US has neglected its so-called “backyard.”

But for Arturo Valenzuela, Hillary Clinton’s man on Latin America, US President Barack Obama can afford the “luxury” of not paying too much attention to Latin America because things are going relatively well in the region. “It wouldn’t be a positive thing for the US President to talk constantly about Latin America, to think constantly about Latin America, to interfere constantly in Latin America. Those are things of the past,” he tells beyondbrics. Continue reading »

Tags: trade, united states Posted in Global, LatAm | Permalink

EM equity investors: tin hat time

August 5, 2011 1:49 am by Andrés Schipani

Share this on

It’s tin hat time for emerging markets investors. For all the talk about EM markets decoupling from the turmoil in the US and Europe, Thursday’s market rout showed that EM equities are no safe haven.

EM stocks had their worst day in more than a year as deepening concerns over the European debt crisis and dimming prospects of an economic recovery in the US prompted equity investors to head for the exit across the globe. Continue reading »

Tags: equities Posted in Global | Permalink

India in Latin America: a new bric on the block?

August 2, 2011 11:43 pm by Andrés Schipani

Share this on

Compared to Chinese supermarkets, it is still almost impossible to find Indian-run grocery stores around the streets of Buenos Aires, Mexico City or São Paulo.

But that could soon change as India steps up its investment in Latin America. From India’s Jindal Steel, which poured over $2bn in iron ore extraction in Bolivia in 2008 to ONGC Videsh, which together with a consortium of other investors acquired a stake in one of Venezuela’s state oil companies for $2bn last year, India is emerging as a major trading partner and investor in the continent. Continue reading »

Tags: commodities, FDI, India-Latin America, M&A, trade Posted in Asia, Global, India, LatAm | Permalink

Mexican biofuel: ready for take-off?

August 2, 2011 10:30 pm by Andrés Schipani

Share this on

Until not long ago it was hailed “the miracle crop”, blessed with unlimited potential for an energy-thirsty world. Jatropha, a biofuel crop loved for its ability to grow in areas not suitable for food, is native to Central America and seemed like a blessing for hot and dry places with high poverty levels, such as certain parts of Mexico. But while the crop has had some initial success, it fell out fashion after a few years when it appeared that it was not as green as some environmentalists and energy experts thought it would be.

However, Jatropha may get a second lease on life. On Monday, Aeroméxico used the biofuel for the first time to power a long haul commercial flight from Mexico City to Madrid. Continue reading »

Tags: biofuels, oil & gas, transport Posted in LatAm, Mexico | Permalink

Brazilians in Miami shop ’til they drop

August 1, 2011 7:00 pm by Andrés Schipani

Share this on

It’s winter holidays again for high-rolling Brazilians benefiting from the strength of the real. The options are many: London has Big Ben, Paris the Eiffel Tower and New York the Empire State building. However, Miami seems to increasingly be their destination of choice.

Aside from the art-deco architecture of Miami Beach, the area has palm-trees, sun and nice beaches, just like their home country. So why fly all the way up there? In three words: dirt cheap shopping. “I love Miami. In Rio we have Copacabana, but Miami has Banana Republic,” says a cheerful Flávia from Rio de Janeiro, standing at one of the store’s counters at the Lincoln Road Mall. Continue reading »

Tags: beyondbrics on the beach, consumption, economic growth, tourism Posted in Brazil, LatAm | Permalink

Bolivia: Evo strikes again

July 30, 2011 12:17 am by Andrés Schipani

Share this on

First they came for the gas and oil. Then they came for the telecoms, the electricity and the pensions. Now the state has come for the media.

On Friday, Bolivia’s Congress moved to tighten the government’s grip over the airwaves, passing a law that will shrink the availability of licences to private television and radio stations. Left-wing President Evo Morales has said he will sign it. Continue reading »

Tags: media, mining, nationalisation, oil & gas Posted in Bolivia, LatAm | Permalink

Bolivia: killing its cash cow slowly

July 28, 2011 1:22 am by Andrés Schipani

Share this on

Cerro Rico, a mountain towering over the Bolivian city of Potosí, was once the world’s greatest treasure trove, a mine that for centuries bankrolled the Spanish empire.

But now, over 450 years after the first hole was drilled, it is in danger of collapsing. Intense mining has turned this soaring Andean peak into a honeycomb of gaping tunnels that threatens to cave in. For Bolivia, which has been riding the commodity price boom, the news could not have come at a worst time. Continue reading »

Tags: mining, trade Posted in Bolivia, LatAm | Permalink

Patagonia’s ski slopes: covered in ash

July 27, 2011 2:14 pm by Andrés Schipani

Share this on

It’s late July in Patagonia and the skiing season is at its peak – a time for Argentines to take advantage of the magnificent scenery and the school holidays to get down a few runs. Not this year, though.

For six weeks now a volcano in neighbouring Chile has been spewing ash into the Argentine sky, grounding flights and keeping airports closed and skiers, well, piste off. Continue reading »

Tags: beyondbrics on the beach, skiing, tourism Posted in Argentina, LatAm | Permalink

Paraguay and Gazprom, the odd couple

July 27, 2011 12:45 am by Andrés Schipani

Share this on

Legend goes that oil and gas used to bubble up to the surface around the green river hamlets of the western territory of what today is Paraguay. The Guaraní indigenous tribes used it for curative purposes, as well as to light their fires and perform rituals. Years later, the Paraguayans are still looking for that treasure trove.

But now they seem to have a new – and quite inconspicuous – ally to help them with the search: Russia’s Gazprom. The energy giant has expressed interest in carrying out exploration work in Paraguay and, if reserves are found, forming a joint venture with the state run-energy company, Petropar. Continue reading »

Tags: energy, Gazprom, oil & gas, Russia-Latin America Posted in LatAm, Paraguay, Russia | Permalink

Chile: trapped bt copper and a tall latte

July 26, 2011 11:47 pm by Andrés Schipani

Share this on

Chilean miners have been restless lately. First, it was the almost miraculour rescue of “the 33“. Then in January a month-long strike at Collahuasi, the world’s third largest copper mine, was the longest-ever at a major private mine in the South American country. Earlier this month, Chileans saw the first strike in nearly 20 years at Chile’s state-owned copper miner, Codelco. Now, strikers at Escondida, the world’s biggest copper mine, are entering their fifth day of stoppages, boosting concerns about supply and causing copper prices to spike in London. Continue reading »

Tags: copper, labour disputes, mining, mining protests Posted in Chile, LatAm | Permalink

Uruguay: A tale of goals and ratings

July 25, 2011 11:54 pm by Andrés Schipani

Share this on

Uruguayans are all about celebrations this week. On Sunday night they partied through the night, after their national team “Los Celestes” (“the baby blues”) won the Copa América, the regional football competition for national teams that took place in Argentina. Some 60,000 fans crowded the historic Centenario stadium in the capital, Montevideo, to welcome the players, after the 3-0 victory over Paraguay.

Forward Luis Suárez, who was voted the tournament’s best player, said Uruguay deserved the title after so many years without a championship. For Standard & Poor’s, there is something else Uruguay deserved: higher credit rating. On Monday, the agency upgraded Uruguay’s credit ratings by one notch to BB-plus, only one notch below investment grade, praising years of “prudent and consistent” economic policies in the country. Continue reading »

Tags: bonds, credit, investment Posted in LatAm, Uruguay | Permalink

“Hecho en México” v “Made in China”: round 2

July 23, 2011 9:31 am by Andrés Schipani

Share this on

Mexican wrestlers usually dress up as animals, gods and ancient heroes. But a more recent archetype has been hard to knock out: the Chinese dragon. And just when Mexicans thought they could start chanting victory about the resurgence of its manufacturing export sector, along comes Nomura and gives the points to the Chinese.

Analysts at the Japanese bank warned on Friday that Chinese competition has moved onto higher leagues, with Mexico “increasingly being pushed out of intermediate and high value added manufacturing”, just as it has pushed it out of lower-value added since 2001. Continue reading »

Tags: China-Mexico, manufacturing, vehicles Posted in LatAm, Mexico | Permalink

US: we’re still biggest market for LatAm

February 4, 2011 11:33 am by Andrés Schipani

Share this on

The steady march of Chinese investment across Latin America has underscored fears that the United States has neglected its own backyard. While the US was busy looking to the Middle East in recent years, critics say, a flood of Chinese investment has buoyed Latin American economies, insulating them from the worst effects of the global recession.

But even as China advances, the US is still fighting its corner as a major investment force in the region and a natural market for Latin American goods. At least that is what José Fernández, assistant secretary of state for economic, energy and business affairs, and Nicaraguan-born Eduardo Solórzano, CEO of Walmart Latin America, told beyondbrics at a gathering of Latin American investors in Miami. Continue reading »

Tags: China-US, investment, retail Posted in Global, LatAm | Permalink

beyondbrics