For much of their history, the economies of Latin America have been isolated not only from the rest of the world but also form each other. Over the past quarter century, this has changed and the region now has the opportunity to embark on a virtual circle of development. But to realise this potential, governments must still deal with daunting challenges, writes Juan Carlos Echeverry of the Inter-American Development Bank. Continue reading »
The FT today publishes a special report, Investing in Turkey, on the challenges facing the country’s government and private sector as it struggles to gain competitiveness and deal with one of the most daunting current account deficits in the developing world. At 13.00 GMT, Daniel Dombey, Turkey correspondent, and freelance writer Andrew Finkel will host a live discussion on Twitter on the country’s economic and political future. Here, Dombey outlines the difficulties Turkey faces in delivering the investment needed for growth. Continue reading »
The Middle-Eastern Gulf states have had a huge swing towards Asia in trade but investment dinars have not followed to the same degree. Ahmad Al-Hamad is looking to change that.
Asiya Investments is part of the listed Kuwait China Investment Company and already runs about $450m in assets, more than 10 per cent of which comes from the Kuwait Investment Authority, the sovereign wealth fund. Continue reading »
By Andrew Lloyd of Ellis Munro
Asia is often considered a region where investors should focus the “growth” part of their portfolios. One attraction cited is the rise of the middle class and its impact on demand for consumer goods and services, and on the supply chain feeding the system. But a narrow focus on consumer-led growth in Asia overshadows the opportunities to find solid businesses in the region at bargain valuations. Continue reading »
Cadbury India, part of the $35bn Mondelez International group, is setting up its biggest plant in the Asia Pacific region. And it has chosen the south eastern state of Andhra Pradesh for it. That’s a huge chunk of investment – especially since the plant appears to be real this time. Continue reading »
By Fernando Losada of AllianceBernstein
Since May, over a quarter of the past five months’ foreign portfolio investment into emerging markets has been withdrawn, according to the latest available data from EPFR. For the Latin American economies, this is likely to result in slower growth, but the impact may be milder this time around. Continue reading »
India’s policy makers have dealt a surprise one-two, as they attempt to stem the depreciation of the rupee, finance the country’s unsustainable current account deficit and prop up the economy all at once.
The Reserve Bank of India announced a slew of monetary tightening measures on Monday that immediately propped up the rupee but raised concerns around their impact on India’s already slowing economy. Another announcement late on Tuesday provided a counterweight, as limits on foreign direct investment were further relaxed.
But are these reforms all they’re cracked up to be? Continue reading »
Speak to people in Mumbai’s business community and it sounds like it’s about to go into pause mode, as investors wait for the general elections to bring some clarity before shelling out any cash.
PwC seems to think otherwise. In a new report, the consultancy says there are several business reasons for private equity funds to invest in India in the coming months. Continue reading »
There is some irony in the re-entry of BAT to Myanmar, to pick up where it left off more than a decade ago in producing and distributing cigarettes. But back then, Myanmar was a pariah state and BAT was widely condemned for its links to a brutal military regime. Now, with a rapidly expanding economy and growing foreign interest, investing in Myanmar is a feel-good story – despite growing concerns about the spread of racial and ethnic violence. Continue reading »
There are many indicators of growth – car sales, industrial production, prices. But there are few better measures of an economy’s prospects than looking at who’s willing to put their money into it.
So the news from Assocham, India’s association of chambers of commerce and industry, is gloomy. It says proposed investment into the country by domestic and foreign entrepreneurs was down 75 per cent in the fiscal year that ended in March. Continue reading »
India’s Telecom Commission, a high level committee charged with formulating telecoms policy, has approved a proposal to increase the limit on foreign direct investment into mobile phone services to 100 per cent from a current level of 74 per cent. The proposed change would make it possible for service providers such as UK-based Vodafone and Russia’s Sistema, which operate in India with local partners, to buy those partners out.
But if other recent changes to rules on FDI are any guide, investment will not flood in overnight. Continue reading »
Shares in Jet Airways dipped more than 12 per cent on Monday morning on Friday’s decision by India’s Foreign Investment Promotion Board (FIPB) to defer approving Etihad Airways’ plan to buy a stake in the Indian airline.
They recovered later in the day to close up 1.3 per cent to Rs476.5 afte investors realised the delay was just that – a temporary glitch – and wouldn’t stop the deal going ahead. No problem, then? Continue reading »
Still safe from Walmart
Last year, the Indian government loudly opened up the multi-brand retailing industry, allowing foreign investors to hold up to 51 per cent in companies.
But the euphoria was short-lived. Very soon, it emerged that states would approve the reforms individually and the policy would have to go before India’s very stroppy parliament.
Now, the government has begun clarifying the rules – and, for foreign investors, things look every more difficult. Continue reading »
Southeast Asia’s credentials as the next great frontier for economic growth, spurred by young populations and cautious optimism over planned structural reforms is one this year’s big emerging market themes. Just look at the Philippines, which notched up 7.8 per cent growth in the first quarter, even beating China.
But for private equity, the region is proving a tough nut to crack. Last year, according to consultancy Bain & Co, was “underwhelming”. Deal value fell by 16 per cent to $4.9bn, the number of deals dropped to just 32, from 39 the year previously. Continue reading »
With the Dow Jones at a record high, and global stocks at their highest levels since June 2008, sentiment is finally improving in emerging markets too, though not necessarily in emerging market equities.
That’s the conclusion of this month’s investor sentiment survey from Société Générale, which reports a sharp increase in short-term bulls: 57 per cent of fund managers polled in April were bullish, compared to just 33 per cent in March. As the chart below shows, that’s the steepest switch since last summer. Continue reading »