Jan 2012
Seeking Alpha "Slovenia Credit Rating Downgrade Prompts New Austerity Measures"
19/01/12 09:25 Filed in: Seeking Alpha | Slovenia
On January 12, 2012, Standard and Poor’s downgraded the credit rating of nine eurozone nations. Slovenia was one of them. S&P downgraded the Eastern European nation to A+. Slovenia adopted the euro in 2007. The nation’s public debt has increased from 38.8% of GDP in 2010 to an expected 50.1% of GDP in 2012. At the same time, the public deficit as it pertains to GDP has remained constant.
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Seeking Alpha "Invest In Turkey's Oil Future Through ETFs"
19/01/12 09:23 Filed in: Seeking Alpha | Turkey
Europe might be feeling a bit slighted by Turkey in reference to their proposed Nabucco pipeline that will transport natural gas from Asia into Europe. The benefits and viability of Nabucco for the countries involved have been difficult to pinpoint. Turkey has shown support for the pipeline in the past. Recently, however, Turkey’s energy minister, Taner Yildiz, signed an agreement with Azerbaijan to construct an estimated $5 billion Trans-Anatolian natural gas pipeline.
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Guru Focus "Morgan Stanley Purchases a Russian Mall"
19/01/12 09:21 Filed in: Guru Focus | Russia
The largest mall in St. Petersburg, Russia, is the newly opened Galeria. The mall opened in November 2010 and houses 290 stores in 1 million square feet. The mall includes a large selection of Western brands including Adidas (ADDYY), Bebe (BEBE), and the Gap (GPS). The five-story mall cost over $380 million to build according to some sources and a reported $500 million by other Russian sources. The Galeria includes a multi-screen movie theater that includes IMAX, a 27-lane bowling alley, and enough parking for 1,200 vehicles. The top floor boasts a massive arcade.
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Guru Focus "S&P AFE 40 Index"
09/01/12 13:19 Filed in: Guru Focus | Middle East
Standard & Poor’s has launched the S&P AFE 40 index. This index is designed to measure the performance of 40 leading companies from the Gulf region. The S&P AFE 40 is comprised of the 40 largest stocks listed on AFE member exchanges. These stocks are subject to certain restrictions such as the limitation of ten stocks per country. The index uses a capped market capitalization weighted index scheme. The S&P Index partnered with the Arab Federation of Exchanges (AFE) to create the index. It includes companies from Bahrain, Egypt, Jordan, Kuwait, Lebanon, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Tunisia and the United Arab Emirates.
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Guru Focus "Investment Potential in Saudi Arabia"
09/01/12 13:17 Filed in: Guru Focus | Saudi Arabia
Saudi Arabia could be hit or miss for emerging market investors. The country’s main strengths can easily be converted into weaknesses. Gaining direct exposure to the potential is a challenge for individual investors. Most investment opportunities come in the form of foreign direct investment. There is currently no ETF available with direct exposure to Saudi Arabia. There are the standard Middle Eastern ETFs such as the WisdomTree Middle East Dividend (GULF) and the Market Vectors Gulf States Index (MES), but even these provide very little exposure to the kingdom. A pegged ETF would go a long way toward providing leverage and exposure to the region for individual investors.
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Seeking Alpha "Manufacturing Optimism Results In Gains For Emerging Markets"
09/01/12 13:13 Filed in: Seeking Alpha | Emerging Markets
Global manufacturing optimism turned into gains for emerging market economies this past week. From this perspective it would seem that the global economy is weathering the eurozone crisis without too much wear and tear. Expectations are so low for the markets coming into 2012 that any good or not-so-bad news is having an immediate positive impact.
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Seeking Alpha "Japan and China: New Currency Pact Lifts Chinese Yuan Status"
China and Japan reached an agreement on what is being referred to as a currency pact in December. As part of the agreement Japan will hold Chinese bonds as part of its foreign exchange reserves. Tokyo will purchase about $500 million worth of Chinese government bonds this year. Japan will likely add yuan slowly to its forex reserve, building its yuan holdings to around $10 billion over the next five years. The small size of the Chinese bond market will limit the pace of accumulation. Currently the US dollar makes up 80% - 90% of Japan’s forex holdings. By adding yuan-denominated bonds to its reserve holdings Japan will join the ranks of Nigeria, Malaysia, Thailand, and Chile.
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Seeking Alpha "How To Buy Into Turkey's Record Export Growth"
04/01/12 21:57 Filed in: Seeking Alpha | Turkey
Turkey hit export growth records for 2011. The country now has one of the highest growth rates in the world. Exports increased a record 18.2 percent reaching $134.6 billion. Still, the government expects output to be half next year as the eurozone crisis continues to take hold. Turkey is currently the world’s 17th largest economy. Still, with record trade and an ever-growing economy, Turkey’s lira is poised for investment. There is no ETF directly tied to Turkey’s currency. However, the WisdomTree Dreyfus Emerging Currency ETF (CEW) does provide exposure to the lira. The iShares MSCI Turkey Invest Market Index ETF (TUR) provides direct exposure to Turkey mainly through financial services holdings.
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Seeking Alpha "It's TIme To Invest In Brazil And The Real"
04/01/12 21:55 Filed in: Seeking Alpha | Brazil
Brazil has been spending a lot of money on infrastructure in recent years. It has also been busy cleaning up the slums in Rio de Janeiro. Police and military personnel have been moving in to take control while the cartels have been slipping away in the middle of the night. They are also working diligently to bring electricity and sewer systems into these neighborhoods, elevating the living situation for the hundreds of thousands that call the favelas home. Brazil is also rich in land, resources, and labor. It has a great advantage in trade as well.
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Seeking Alpha "Argentina Combines Rosario Exchanges, Appealing to Long-Term Investors"
04/01/12 21:54 Filed in: Seeking Alpha | Argentina
Argentina’s Rosario Stock Exchange and Rosario Futures Exchange (ROFEX) are planning a merger that would boost competition with the Buenos Aires Stock Exchange in equity derivatives products. The combined exchanges would have the power to produce indices of its own. ROFEX has been looking for ways to increase its international visibility and plans to introduce a multi-asset class trading platform in the first quarter of 2012.
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Seeking Alpha "Qatar Must Practice Energy Innovation To Grow Its Economy"
04/01/12 21:51 Filed in: Seeking Alpha | Qatar
According to the International Monetary Fund, Qatar’s economic growth will slow next year as well as face an increased risk of lower oil and gas pricing. All this comes as a result of weaker global demand. Still, most agree the outlook is positive for this Middle Eastern nation rich in resources and land. Qatar is the world’s top liquified natural gas exporting economy, and as such, expanded at double-digit rates in 2011. Qatar also has plans to spend quite a bit on infrastructure in preparation for the 2022 World Cup. Still, the country cannot overlook external risks that reach as far as the euro zone crisis -- specifically, lower oil and gas prices and increased geopolitical tensions.
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Seeking Alpha "Istanbul Takes Measures to Attract Foreign Investors"
04/01/12 21:49 Filed in: Seeking Alpha | Turkey
Since 1998, the Istanbul Stock Exchange has spent $1 billion building 400 schools across Turkey. Now the Turkish administration is moving to assert greater regulatory control over the exchange. The government passed a decree last month aiming to consolidate the Istanbul Stock Exchange with TurkDex, the country’s derivatives exchange.
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Guru Focus "Croatia and Serbia in a New iShares ETF"
Croatia is going through the motions to become the 28th member of the European Union. Many see this as a step in the right direction for Croatia’s political and economic future. However, with the euro zone crisis looming, it might be some time before the nation sees a payoff. The EU cannot solve a country’s problems. Just the process of applying for EU membership has brought about important changes for Croatia, but there is more work to be done. EU membership would not only provide economic benefits, but also stability for Croatia. Croatia will officially join the European Union in July 2013. EU membership could equal greater foreign investment and export growth. That might not be soon enough. The Balkan state was hit hard by the global financial crisis and analysts expect it to slip back into recession in 2012. Croatia’s unemployment rate is currently one of the highest in Europe at around 17.4%.
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Seeking Alpha "Thailand's New Banking Policies"
03/01/12 14:29 Filed in: Seeking Alpha | Thailand
Thailand is currently experiencing the socioeconomic problem of a missing middle class. There is a great divide between the country’s highest earning and lowest earning groups. The country’s highest earning group is benefiting from increased connectivity through technology. Some members of the middle class have just emerged from poverty and are earning the majority of their income through labor. The lowest bracket in this group is feeling the most pressure about their future. In Thailand, the richest 20% make almost 60% of the income. The poorest 20% made only 4% of the income. This disparity has Thailand ranked last place amongst its neighbors. The disparity between the rich and the poor is similar to what was seen in Russia after the collapse of the Soviet Union. Slowly, Russia’s middle class is gaining in members. Economic policy reform has been painstakingly slow in Russia, but progress has been made. Analysts feel that policy reform in Thailand should focus largely on limiting monopolies and deterring corruption.
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