Summit Notebook

Exclusive outtakes from industry leaders

from Global Investing:

Time up for emerging markets?

Well, not in the long-run, no. You would be hard pressed to find an economist, investor or even politician who does not reckon the global shift in growth to Asia and Latin America is going to be the story of the coming decade, century etc.

But in the shorter term, strange things are happening. MSCI's benchmark emerging market stock index is barely in the black for the year. Even more surprising is that it is underperforming its developed market counterpart.

Many  economists and investment strategists are still beating the drum for emerging markets and a Reuters European Funds Summit in Luxembourg this week heard numerous cases of retail investors beginning to move into the sector, joining their institutional brethren.

The problem is that all this demand can transform itself into too much money chasing too few assets.  LGT Capital Management insists that we are not there yet, but used the "bubble" word during a meeting with Reuters reporters at the summit.

Reuters Travel and Leisure Summit Live Blog

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Live coverage of the Reuters Travel and Leisure Summit.

Are the days of flying business and 4-star hotels over for biz travelers?

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Are flying coach and staying at budget hotels the “new normal” for businesspeople who travel for work? If so, what does it mean for airlines, hotels and casinos still trying to recover from the economic downturn? Chris Woronka, Senior Gaming, Lodging and Leisure Analyst at Deutsche Bank Securities shares his thoughts with us on what’s in store for the Travel and Leisure Industry in 2010. Will the industry once again be flying high? Or, will the prospects for a better year ahead get grounded?

2010 Travel and Leisure Industry Outlook

Fatwa shopping? Not for Barclays

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The limited number of Sharia scholars has meant the same
group of men are on various advisory boards which has led to criticism
that people can go “fatwa shopping” and that scholars are in it for the money.

Not so, says Harris Irfan, head of Islamic products at
Barclays Capital.

“We’re not out fatwa shopping,” he said at the Reuters
Islamic Banking and Finance Summit. “We want to work with the
scholar who’s willing to say ‘no’ (to non-Sharia products)”

Skeletons in the closet, sprawling ownership stymie Gulf bank consolidation

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Anyone waiting for Gulf banks to consolidate — a long talked about prospect — can forget about it for now.

With debt markets shut, leaving only pricey equity financing, budding suitors are standing frozen, unable to make a commitment.

from Global Investing:

101 ways with halal

SheepThe technicalities of Islamic finance may seem arcane to outsiders but participants of the Reuters Summit on Islamic Banking and Finance have been keen to take it to a broader audience.

On Tuesday Mahesh Jayanarayan, CEO of Halal Industries, unveiled his ambitious plans for a halal park in Wales, whilst stressing the industrial site could also house Welsh cottage industries. Halal is simply an Arabic term that means “permissible” but in the West it is largely associated with the preparation of meat and poultry.

from Global Investing:

Dubai World crisis dispels wishful thinking

Dubai WorldThe Dubai World crisis has forced sukuk bond investors to wake up to the reality that sukuk isn’t completely straightforward, said Farmida Bi, a partner at Norton Rose, speaking at the Reuters Islamic Banking and Finance Summit in London on Monday.

“There seems to have been a lot of wishful thinking around implied (sovereign) guarantees and enforcement, which isn’t straightforward in this region,” she said.

AIA CEO Blakey says she’s got Jet-A in her veins

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AERO-ARMS-SUMMITAerospace Industries Association Chief Executive Officer Marion Blakey says when she started working on aviation issues earlier in her career she was hooked.

She has held a number of prominent positions in Washington that emphasized transportation and safety.

Brazil on everyone’s lips (and in pockets too)

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Forget China, at least for now. That “B” in BRICs is really gaining momentum. Many investment managers attending the “Reuters Investment Outlook Summit 2010″ in New York this week mentioned Brazil as a hot destination to park money next year.

There is a growing perception among decision makers that Brazil is on the right track for dynamic growth.
Pimco’s founder Bill Gross, who helps oversee $940 billion in fixed-income securities, says both China and Brazil have big domestic markets with relatively low consumption levels, around 30 percent of GDP, and still room to grow.

from Aaron Pressman:

Dubai crisis will not spread, says Invesco’s Garnick

dubaiDubai's financial problems have spooked investors around the world. Moody's Investors Service didn't help matters on Wednesday when it said it would review the ratings of  not just of Dubai, but of neighboring emirate Abu Dhabi and the federal government of the seven-member United Arab Emirates federation. Dubai and Abu Dhabi are both part of the UAE, the world's third-largest oil exporter.

But Invesco's sassy market watcher, Diane Garnick, says the crisis isn't likely to spread. Based on her past visits to Dubai, which she dubs a "Las Vegas-wannabe," she expects little fall-out for other world markets.

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