Global Investing

from MacroScope:

Give me liberty and give me cash!

June 22, 2011

Come back Mr Fukuyama, all is forgiven.

In his 1992 book "The End of History and the Last Man", American political scientist Francis Fukuyama famously argued that all states were moving inexorably towards liberal democracy. His thesis that democracy is the pinnacle of political evolution has since been challenged by the violent eruption of radical Islam as well as the economic success of authoritarian countries such as China and Russia.

Indian stocks — buyers trickling back?

April 18, 2011

Last week snapped a three-week winning streak for Indian stocks — the first since last September for this year’s emerging markets laggard.  India,  an oil importer and a domestic demand play with high inflation, has languished this year in comparison with fellow-BRIC Russia which has returnedBRICS-TRADE/SUMMIT 14 percent so far, thanks to the $125/barrel oil price. But could the market be turning? Indian stocks, down 20 percent at one point in February, have cut their losses to 6 percent so far this year. And there are signs fund managers are piling back in.

Russia’s babushka time-bomb

March 24, 2011

The babushka, that embodiment of Russian grandmotherly goodness that has spawned iconic dolls and inspired a Kate Bush song, poses one of the gravest threat to the Russian economy.

from MacroScope:

Brazil joins fellow-BRIC China in world’s Top 5

March 7, 2011

Volkswagen's Brazil car factory. Sales are booming as the economy roars ahead

Volkswagen's Brazil car factory. Sales are booming as the economy roars ahead

Jean-Claude Trichet, EM c.bankers’ new friend

February 2, 2011

What a friend emerging central bankers have in Jean-Claude Trichet. Last month the ECB boss stopped euro bears in their tracks by unexpectedly signalling concern over inflation in the euro zone. Since then the euro has pushed steadily higher  — against the dollar of course, but also against emerging currencies. The bet now is that interest rates – and the yield on euro investments — will start rising some time this year, possibly as early as this summer.

from Davos Notebook:

Will Goldman’s new BRICwork stand up?

January 17, 2011

RTXWLHHJim O'Neill, the Goldman Sachs economist who coined the term BRICs back in 2001, is adding four new countries to the elite club of emerging market economies. But does his new edifice have the same solid foundations?

BRICs chipped

January 4, 2011

It may come as a bit of a surprise but in the end developed market stocks did quite well last year. For one thing, they outperformed the much-touted BRICs (Brazil, Russia, India and China). Here is the graphic to show it.

Which BRIC? Russia scores late goal for 2010

December 6, 2010

How quickly times change. Russia’s stock market, unloved for months, last week overtook India to be the best-performing of
the four BRICs.  The Moscow stock index jumped 5 percent last week, posting its biggest weekly rise in seven months, bringing
year-to-date gains to 17.5 percent. Fund managers such as Goldman Sach’s Jim O’Neill, creator of the BRICs term, are predicting it will lead the group next year too.

from Reuters Investigates:

Oil under ice

November 11, 2010

Still there

Still there

BP's Macondo Gulf spill would be nothing compared to the effect of a drilling accident in the Arctic, Jessica Bachman reports from "the foulest place in all of Russia."  Scientists and Russian officials are just starting to wake up to the fact that "if something happens on the Arctic Barents Sea in November it would be, 'OK, we'll come back for you in March,'" Jessica says.

from MacroScope:

Argentina set for wheat windfall

August 6, 2010

Not everyone is upset about the 50 percent surge in wheat prices over the past month.