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from Photographers Blog:
The lithium triangle
LITHIUM MINING
Argentina, Bolivia and Chile hold the planet’s largest reserves of lithium, a key component in batteries used to power a range of technologies from cell phones to laptops to electric cars.
Industrial production from the so-called “lithium triangle” is already high. Chile is the world’s leading source of the metal, turning out around 40 percent of global supply, and Argentina is another significant producer. Output from the Andes may soon rise after Bolivia - the country that holds an estimated 50 percent of the world’s lithium reserves - opened its first lithium pilot plant in January.
Reuters photographers recently traveled to the research and production sites in those three countries, all located in high altitude salt flats at around 4,000 meters (13,123 feet) above sea level, and wrote about their experiences.
Salar de Atacama, Chile
By Ivan Alvarado
Nelson sculpts alongside the dirt road that runs by his house. In the shadows I can see different figures of volcanic rock exhibited for sale to the few tourists who pass by here. His daughter Luz and her children keep him company as his hands transform another piece of stone into a miniature of a church steeple.
from Global Investing:
Emerging Policy-Data vindicates doves but not all are cutting
Rate decisions last week in emerging markets well anticipated this week's crop of economic data.
Russia for instance not only kept rates on hold last Friday (after raising them at its previous meeting) but struck a less hawkish tone than expected. Voila, data this week showed growth in the third quarter was 2.9 percent compared to 4 percent in April-June.
from MacroScope:
When interest rates rise, credit growth should… accelerate?
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.
Lower interest rates reduce the cost of money and therefore should encourage businesses and consumers to borrow, as we've repeatedly heard from analysts and government officials for decades. Puzzlingly enough, credit growth accelerated after central banks in countries like Brazil and Peru raised rates, and slowed when borrowing costs fell. Why is that?
from Global Investing:
Emerging Policy-the big easing continues
The big easing continues. A major surprise today from the Bank of Thailand, which cut interest rates by 25 basis points to 2.75 percent. After repeated indications from Governor Prasarn Trairatvorakul that policy would stay unchanged for now, few had expected the bank to deliver its first rate cut since January. But given the decision was not unanimous, it appears that Prasarn was overruled. As in South Korea last week, the need to boost domestic demand dictated the BoT's decision. The Thai central bank noted:
The majority of MPC members deemed that monetary policy easing was warranted to shore up domestic demand in the period ahead and ward off the potential negative impact from the global economy which remained weak and fragile.
from Global Investing:
Fed re-ignites currency war (or currency skirmish)
The currency war is back.
Since last week when the Fed started its third round of money-printing (QE3), policymakers in emerging markets have been busily talking down their own currencies or acting to curb their rise. These efforts may gather pace now that Japan has also increased its asset-buying programme, with expectations that the extra liquidity unleashed by developed central banks will eventually find its way into the developing world.
The alarm over rising currencies was reflected in an unusual verbal intervention this week by the Czech central bank, with governor Miroslav Singer hinting at more policy loosening ahead, possibly with the help of unconventional policy tools. Prague is not generally known for currency interventions -- analysts at Societe Generale point out its last direct interventions were conducted as far back as 2001-2002. Even verbal intervention is quite rate -- it last resorted to this on a concerted basis in 2009, SoGen notes. Singer's words had a strong impact -- the Czech crown fell almost 1 percent against the euro.
from Global Investing:
No policy easing this week in Turkey and Chile
More and more emerging central banks have been embarking on the policy easing path in recent weeks. But Chile and Turkey which hold rate-setting meetings this Thursday are not expected to emulate them. Both are expected to hold interest rates steady for now.
In Chile, the interest rate futures market is pricing in that the central bank will keep interest rates steady at 5 percent for the seventh month in a row. Most local analysts surveyed by Reuters share that view. Chile's economy, like most of its emerging peers is slowing, hit by a potential slowdown in its copper exports to Asia but it is still expected at a solid 4.6 percent in the third quarter. Inflation is running at 2.5 percent, close to the lower end of the central bank's percent target band.
from Breakingviews:
World’s new air giant taking off at turbulent time
By Raul Gallegos
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Get ready for the world’s largest airline to take off this week. But don’t look north or east - the globe’s most valuable carrier is set to be South American. Chile’s LAN Airlines is on track to finally consummate its marriage to Brazilian rival TAM this Friday, almost two years after announcing the tie-up. But the promise of greater regional integration has fueled big expectations that economic headwinds will make difficult to meet.
from Photographers Blog:
Trapped with a way out
By Mariana Bazo
It would be impossible to think of rescuing miners and not to associate such thoughts to the rescue of the Chilean miners in San Jose, Copiapo, 2010. That really was a glorious rescue after a lengthy sixty-nine day underground wait.
This time in Peru, nine miners were trapped in an illegal copper and gold mine in the desert of Ica, south of Lima.
from Global Investing:
Emerging beats developed in 2012
Robust growth from the emerging market basket in January was always going to be tough to beat, but research from February's gains show just how strong these markets are performing against developed ones, and not just from the traditional BRICs either, research from S&P Indices shows.
Egypt has been a prime example. Following a bout of political unrest and subsequent removal of Hosni Mubarak after nearly 30 years in power, Egypt's market returns have rocketed, climbing 15.3 percent in February on top of January's 44.3 percent take-off.
from Global Investing:
Interest rates in emerging markets – - harder to cut
Emerging market central banks and economic data are sending a message -- interest rates will stay on hold for now. There are exceptions of course.
Indonesia cut rates on Thursday but the move was unexpected and possibly the last for some time. Brazil has also signalled that rate cuts will continue. But South Korea and Poland held rates steady this week and made hawkish noises. Peru and Chile will probably do the same.
