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By Marcos Troyjo of Columbia University

The concept of “emerging markets” came up years ago as a driver of the future of the world. Demographics, territorial scale, low production costs, easy access to commodities – all were signs of impending change in the geo-economic axis.

Countries such as the Brics (Brazil, Russia, India and China) became the world’s “engines of growth”. Export-driven growth in China; a “transition economy” for Russia’s market; outsourcing and technological innovation in India; and “import substitution 2.0” in Brazil kept these economies booming – and social tensions quelled. Continue reading »

** FT News **

* West considers penalty against Putin | Sanctions list could be extended to cover 2018 World Cup and suspending Russia from high-profile international cultural, economic and sporting events

* Isis claims killing of US journalist | Video released claiming to show the beheading of Steven Sotloff, a US journalist kidnapped in Syria last year, the second such killing in weeks Continue reading »

By Jim O’Neill, Bruegel

Is it all over for the rise of the BRIC grouping (Brazil, Russia, India and China)?

On one level, this seems like a rather odd time to be asking such a question, especially when the political leaders of the BRICS countries (the four named above plus South Africa) have recently agreed to set up a joint development bank to be headquartered in Shanghai. So, the BRICS name is certainly here to stay, and in terms of global governance, their influence is likely to rise as a group because of the bank. Continue reading »

** FT News **

* Ukraine signals de facto war with Moscow | Ukraine president Petro Poroschenko accused Moscow of conducting “direct and undisguised aggression” in the latest in a series of military reversals

* Monocle magazine valued at $115m | Minority stake in global affairs magazine sold to Nikkei Inc gives the Japanese newspaper publisher an English-language platform to expand in Asia Continue reading »

By Ian Dixon of Investec

Following his government’s first budget there has been much debate about the amount of change Narendra Modi, India’s new prime minister, will be able or willing to achieve. His supporters counter such scepticism by arguing that the government is just three months old and to expect radical change in such a short time after 10 years in opposition was always unrealistic.

On international debt markets, however, we have already begun to see a step change in attitudes towards Indian debt, particularly among UK investors. Continue reading »

** FT News **

* Ukraine signals de facto war with Moscow | Ukraine president Petro Poroschenko accused Moscow of conducting “direct and undisguised aggression” in the latest in a series of military reversals

* Rosneft seeks China investor for oilfield | Deal unveiled by Russian president Vladimir Putin would be most significant Chinese equity participation in Russian onshore oil industry Continue reading »

** FT News **

* Burgers, BMWs highlight N Korea change | From US-style fast food at a showpiece water park to foreign cars on once-empty streets, evidence of informal markets abounds during FT visit to Pyongyang

* Kiev accuses Russia of ‘direct aggression’ | President promises shake-up of Ukraine’s military leadership amid signs that the army has lost ground to Russian-backed separatist forces Continue reading »

As the global automotive industry continues its recovery there is particularly bright news for investors in OEMs (original-equipment manufacturers – otherwise known as automakers) that are focused on emerging markets.

The global automotive industry has been more successful than most at producing investor value, says the Boston Consulting Group in a recent report, A Comeback in the Making. Component manufacturers posted a median annual total shareholder return (TSR) – a measure of the value a company creates for its shareholders – of 33 per cent between 2009 and 2013, while OEMs produced a TSR of 29 per cent in the same period. Compare this to a 21 per cent TSR for the 26 global industries tracked by BCG.

But it was carmakers focused on emerging markets that were especially successful at pushing up value for shareholders. Continue reading »

** FT News **

* Nato at odds over response to Russia | Alliance will hope to bridge member states’ divisions with the unveiling of its new ‘readiness action plan’, the result of weeks of detailed negotiation

* Putin seeks ‘statehood’ talks for SE Ukraine | Russia, which annexed Crimea in March, has been calling for the federalisation of Ukraine, since its pro-Moscow president was ousted in February Continue reading »

Few subjects matter more than the future nature of Asia’s economic rise. But what of it’s history? A bumper month of Asian independence days culminates this weekend with the anniversary of Malaysia’s handover from Britain, on August 31 1957. And what better excuse for beyondbrics to run a rule over the dramatically different economic trajectories of a selection of Asian countries that emerged from European colonial rule in the decades following the second world war. Continue reading »

** FT News **

* Nato to hold emergency Ukraine meeting | Rouble falls to a record low as tensions worsen and Russian-backed rebels have been advancing in a new front in the southeast of Ukraine

* Rouble hits record low against the dollar | Russia’s rouble hits a record low against the dollar as the conflict between Moscow and Ukraine intensifies Continue reading »

By Eric Lascelles of RBC Global Asset Management

Globalisation was an unstoppable force over the past quarter century, marked by trade flows that grew at almost twice the clip of the global economy and by surging international capital flows, unleashing a torrent of demand and productive capacity. Emerging markets basked in outsized economic growth and rising standards of living. The developed world benefited from low prices, greater selection and cheap borrowing costs.

Since 2011, however, world trade has suddenly found itself on a much dimmer trajectory, merely matching the rate of global growth. Relative to the pre-2011 trajectory, exports have fallen a whopping $1.4tn behind schedule. Continue reading »

** FT News **

* Obama damps speculation of Syria strikes | President has asked the military to prepare ‘range of options’ against Islamist radicals, with John Kerry soliciting allies in the Middle East

* ‘1,000’ Russia troops in Ukraine, says Nato | Images show Russian units ‘inside Ukraine’, as Poroshenko cancels Turkey visit and demands a UN Security Council meeting to discuss situation Continue reading »

Following her sudden emergence as a potential favourite to win Brazil’s October election, Marina Silva is rapidly coming under greater scrutiny.

In particular, much attention is being directed at her two catch cries. These are that she represents something she calls the “nova política” or “new politics” for Brazil and that she will govern with the support of “os melhores” or “the best” from across the political spectrum, including from the major parties that presently dominate Congress. Continue reading »

Free-trade champion Mexico is on a reform drive that promises new openness in key sectors of its economy, especially energy. So what is it doing slapping protectionist measures on its shoe industry?

Fighting unfair competition from China, officials say.

The raft of new measures to protect Mexico’s industry – which makes 240m pairs of shoes a year – sounds distinctly off message, especially since President Enrique Peña Nieto has made boosting trade ties with China a priority. (He met his Chinese counterpart three times within six months to forge closer relations.) Continue reading »