Summit Notebook

Exclusive outtakes from industry leaders

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


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.

The key difference among Brazil and the other BRICs is that it has vast natural resources and is relatively well managed, said investor and author Jim Rogers. On the other side, Russia is a “disaster” and India is “anticapitalist and “antiforeigner”, he added.

Diane Garnick, investment strategist at Invesco calls Russia “the world’s biggest black market.”
Current market optimism is also big enough to overcome two historic bumps for Brazilian growth: low quality in education and lack of infrastructure. Garnick thinks both fronts are getting better, and Brazil’s economy is, well, ready to take off.

Recession’s perfect storm speeds up change in ad industry


Why is it that the United States’ advertising as a proportion of marketing services is at its lowest point since 1977, maybe even lower than since the Second World War?

You may have guessed it it’s the recession.

But it will get better, Martin Sorrell, CEO of advertising giant WPP, said.

“The recession is less worse,” Sorrell said, repeating a favourite phrase of late, and while it’s the biggest recession since 1929 it is also “a perfect storm” that has brought forward change.