Category Archives: Emerging Markets

Obama Talks Tough on Unfair Chinese Economic Policies

Emerging Markets, , , ,

The closing press conference of last week’s Asia-Pacific Economic Cooperation Summit saw President Barack Obama talking tough to China, criticizing several of China’s economic policies which work against the economic interests of the US and other countries.

Scoring Points

Obama scored some major victories at the historic summit, achieving a crucial breakthrough in his push to organize a pan-Pacific free trade zone while also promoting the greater use of green alternative technologies.

“Enough is enough,” Obama cried, using unusually tough language with China, only one day after having direct talks with Chinese President Hu Jintao. Obama insisted that China stop “gaming” the international business community and begin to create a “level playing field” for US businesses and others.

“We’re going to continue to be firm that China operates by the same rules as everyone else,” Obama told reporters after hosting the 21-nation APEC summit in his native Honolulu. “We don’t want them taking advantage of the United States.”

Dragon Not Cowed

China’s response was swift and to the point: “Why should we abide by international economic rules that we had no part in writing?”

“First we have to know whose rules we are talking about,” Pang Sen, a deputy director-general at China’s Foreign Ministry said.

“If the rules are made collectively through agreement and China is a part of it, then China will abide by them. If rules are decided by one or even several countries, China does not have the obligation to abide by that.”

Emirates Airlines Is Taking Off

Companies, Emerging Markets, , , , , , ,

The Emirates airlines in Dubai is a government owned airline which plans to be the major travel hub in the Middle East. It will  connect the Middle East to Asia, Africa, Europe and the Americas. It has just ordered 50 Boeing 777’s which is the largest order that Boeing has ever had. The total list price is 18 billion dollars but the Emirates will probably receive a large discount because it has such a large order.

Emirate Airlines reported a $225 million profit for the first half of its financial year. This is less than the profit from the same period last year.

Boeing is currently producing 7 Boeing 777’s per year and intends to increase production to get up to 8.3 planes per year.

The management of Emirates Airlines includes: Adel Ahmad Al Redha, Gary Chapman, Abdulaziz Al Ali, Ismail Ali Albanna, Ali Mubarak Al Soori, Sir Maurice Flanagan.

Disclaimer: The information in this article is incomplete as a basis for investment decisions. All investment decisions should only be made after a thorough analysis of the investment.

Time to Invest in Chinese Companies

Economy, Emerging Markets, , , ,

US and EU Hit Hard

The global economic crisis – as we all know – hit hard.  Especially tough impacts were encountered by the European Union and the United States of America.  These regions are today, still being impacted by the crisis, vis-à-vis an uncertain economic future and increasingly high levels of public debt.

China’s 2008 Plans

In reaction to the crisis in 2008, China sensibly set out plans to help make world financial markets more stable.  The country – as companies that seek to make investments there have known for years – is usually on top of its economic situation and what it needs to do to stabilize matters where required.  This is what makes it an ideal environment for companies such as ARC Investment Partners to put their capital.

China Thinking Ahead

This clear thinking during a tough time for Chinese companies, really made a lot of sense for the country’s economic future.  Today, China is a hotspot of stable economic growth, along with a substantial foreign exchange reserve.  The question thus being asked, is can it also now play a role in finding a solution to the world’s current financial issues?  Maybe.  But first, the rest of the world needs to get on board and formulate an accurate perspective of the advantage of making investments in China today.  Some critics firmly believe that if America and Europe really look into investing serious capital into China, a lot of their financial woes would be dissipated.

In other words, America and Europe need to get over their paranoia that investing in China is troublesome due to the country’s national security concerns or other inaccurate perceptions

Go India, Buy Sterlite

Emerging Markets, Investments, , ,

As the West falters there are plenty of ways to ensure your investments keep giving you returns. The key is to think long term and put your money in companies that growing and have a reach in the emerging markets.

Sterlite (SLT) headed by Anil Agarwal is India’s largest non-ferrous metals and mining company and is one of the fastest growing private sector companies in India. Sterlite has a focus in Aluminum, Copper, Zinc & Lead and Commercial Energy. Sterlite is trading lower from its highs of a few weeks ago and is a good buy for long term investment.  It should go up as the dust clears on the debt crises hurting Europe and the US.