By Alice Baghdjian
Uzbekistan, Bangladesh and Vietnam found themselves cheered and chided this week.
This year has been all about interest rate cuts. As Western central banks took their policy-easing efforts to ever new levels, emerging markets had little recourse but to cut rates as well. Interest rates in many countries from Brazil to the Czech Republic are at record lows.
A mixed bag this week on emerging policy and one that shows the growing divergence between dovish central Europe and an increasingly hawkish (with some exceptions) Latin America.
2012 has been a year to forget for Brazil's struggling industry – just like the year before. But a weekly central bank survey of around 90 financial institutions says that will all change next year and industry will grow at healthy 4 percent pace.
By Nacho Doce
As Marcondes walked to his truck, his wife and mother said goodbye with the words, “Be careful and may God be with you.” I knew why they talked that way; the highway that he was going to take from Rondonopolis to Sorriso in the fertile state of Mato Grosso is nicknamed the “Highway of Death.”
Tiago Pariz in Brasilia also contributed to this post.
Brazil's Trade Minister Fernando Pimentel was the latest authority this week to fire warning shots in a resurging currency war. The government is "focused" on keeping the real at its current level of 2 per U.S. dollar, he told journalists after a meeting with fellow ministers and businessmen.
Latin America has defied one of the most elementary rules of macroeconomics in the past decade, Citigroup economists Joaquin Cottani and Camilo Gonzalez found in a report.
Ironically, an increase of capital inflows to Latin America in the last few years due to unappealing ultralow yields in industrialized countries and the region's relative economic success is posing a threat for development, according to a recent paper that provides wider background to BRIC criticism of the latest U.S. Federal Reserve´s quantitative easing.
The past 24 hours have brought news of more fund launches targeting emerging corporate debt; Barings and HSBC have started a fund each while ING Investment Management said its fund launched late last year had crossed $100 million. We have written about the seemingly insatiable demand for corporate emerging bonds in recent months, with the asset class last month surpassing the $1 trillion mark. Data from Thomson Reuters shows today that a record $263 billion worth of EM corporate debt has already been underwritten this year by banks, more than a fifth higher than was issued in the same 2011 period (see graphic):
By Paulo Whitaker
The last time I took pictures in one of Brazil’s favelas my luck was very different. That was in Rio de Janeiro in 2010, when I was covering a police invasion of the Alemão slum. A bullet perforated the windshield and hit me in the shoulder as I sat transmitting pictures in the backseat of a taxi. Fortunately, I recovered quickly.