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Petrobras (PBR, quote) issuing $11 billion in debt to set a record for an emerging markets debt offering. The company is using the opportunity of negative real rates in Brazil (officially no, but in terms of true cost of living, YES), and most of the world to tap a global debt market starving for yield.
My top ten reasons to be scared:
When I met with Heinz CEO (HNZ, quote) Bill Johnson and featured him on Trading The Globe on CNBC, he made it clear that Heinz sees the emerging market consumer as key to their growth and ultimate success.
We’ve been harping on about the emerging markets vs. domestic market trade now for over two months. It’s working out very well for those following Tim Seymour’s pair trade of going long EEM (quote) and short SPY (quote).
Rich Ross, highlighted the concerns in the Brazilian Real earlier on the site and we have seen predictable follow through from the equity market in Brazil with the currency move.
China’s Manufacturing PMI reading last night has the industrial giant’s economy moving slowly into expansion with its first positive reading in 3 months. China’s October manufacturing index was above the 50 plus level at 50.2, the level matches a 5 month high.
Auto manufactures typically run with the herd as auto manufacturers attempt provide consumer what they want or what they didn’t know they wanted. When one auto manufacturer raises prices the herd follows. Not so for Tata Motors (TTM, quote)where many auto manufacturers have raised prices or currently thinking about raising prices Tata motors is setting themselves apart by re-launching its compact car Indica eV2 with a new updated fresh look while lowering the price by 23,000 Rs.
