By Pan Kwan Yuk and Andres Schipani
© The Financial Times Ltd 2014 FT and 'Financial Times' are trademarks of The Financial Times Ltd.
Brazil’s economic growth continues to disappoint.
After data in December showed Brazil’s economy shrank in the third quarter of last year for the first time since 2009, the central bank’s IBC-Br index, a monthly proxy for gross domestic product, on Friday showed economic activity fell 0.3 per cent in November from a month earlier.
Global bond sales from emerging markets have defied all odds to hit a record high in 2013.
Despite the market turmoil caused this summer by concerns over the US Federal Reserve’s plans to scale back its monetary stimulus programme, EM bond issuance jumped to $506bn last year, surpassing the record $488bn in 2012, according to data from Dealogic.
The voracious appetite to invest in Latin America’s largest economy was underscored by the success of Brazil’s airport auction on Friday.
Guillermo Moreno (pictured), Argentina’s combative internal trade secretary, has resigned, the government said late on Tuesday.
Michelle Bachelet (pictured) is well on her way to returning to the Chilean presidency after winning 46.7 per cent of the votes in the first round of the country’s presidential elections on Sunday.
But while the 62-year old former pediatrician is expected to win the second round run-off on December 15 by a comfortable margin, she is also set to inherit an economy that is much less robust than the one she presided over during with her previous stint in 2006-2010.
That appears to be the message from Venezuelan oil minister Rafael Ramirez, who said on Tuesday that state-owned oil company PDVSA will sell $4.5bn in bonds this week.
New inflation data are out in Venezuela and they don’t make for a pretty reading.
The rebound seen in the Chinese economy during the third quarter has provided a much needed boost to Vale’s bottom-line.
Following a disastrous Q2, the Brazilian miner said on Wednesday that profits for the three months to the end of September have more than doubled thanks to stronger demand from China, higher commodity prices and a recovery in the Brazilian real.
Investors who have led the summer stampede out of EM equities are slowly making their way back into once-battered markets like India, Indonesia and South Africa – lured by cheaper asset prices, the delay in Fed tapering and signs of improving EM growth fundamentals.
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