Author: Joseph Hogue CFA
Bunge Limited: scaling back in Brazil
Bunge Limited (BG, quote) recently announced that it would sell its operations in Brazil to Yara International for $750 million. The sale represents a significant change in plans for the White Plains, New York company that had previously announced large-scale investments in South America’s largest economy.
Fund flows to emerging markets: threat or opportunity?
The Bank for International Settlements has an interesting report out comparing lending to emerging markets in 2011 against the environment after the collapse of Lehman Brothers in 2008. Both periods saw a contraction in lending but for different reasons.
China: bullish momentum tempered by trade
China data over the weekend was decidedly a mixed bag with retail sales and industrial production coming out above expectations while export growth disappointed.
The SEC sanction on China auditors may be an opportunity for investors
Monday’s enforcement action by the U.S. Securities and Exchange Commission against the China-based affiliates of the Big Four accounting firms sent Chinese stocks tumbling on Tuesday, many to multi-year lows.
China stocks fall but investors should stand up and take note
Investors in Chinese stocks cannot get a break as the mainland index falls to its lowest level in four years and normally defensive consumer-staple companies fall the most in three years.
Russians may soon get a more diversified economy
The Russian market, at about 7.1 times trailing earnings, is one of the cheapest by earnings multiple of any other on the planet. So why is it that the market has only gone one direction over the past year?
Economic growth and currency weakness will undermine Petrobras shares
Hopes earlier this year that the Brazilian government would allow gasoline prices to increase and stop losses by the refinery unit of Petrobras (PBR, quote) have not worked out for investors. Bloomberg reports that Latin America’s 2nd largest oil & gas company is losing a record $8 billion this year by selling imported gasoline below cost.
Brazil currency slide to hit stocks
The Brazilian real dropped to a three-year low last week as President Rousseff and other officials stepped up their public campaign to keep the currency weak. President Rousseff pronounced the currency as, “overvalued,” just a weeks after Central Bank President Tombini promised low rates for a, “prolonged time.”
Coca-Cola: Betting Big in Latin America
Coca Cola (KO, quote) is doubling down on the Latin American consumer with a $1.3 billion investment in Chile over the next five years.
