Monday, 30 August 2010

India and China: A Himalayan rivalry

Asia’s two giants are still unsure what to make of each other. But as they grow, they are coming closer—for good and bad.

MEMORIES of a war between India and China are still vivid in the Tawang valley, a lovely, cloud-blown place high on the south-eastern flank of the Himalayas. They are nurtured first by the Indian army, humiliated in 1962 when the People’s Liberation Army swept into Tawang from next-door Tibet. India now has three army corps—about 100,000 troops—in its far north-eastern state of Arunachal Pradesh, which includes Tawang.

With another corps in reserve, and a few Sukhoi fighter planes deployed last year to neighbouring Assam, they are a meaty border force, unlike their hapless predecessors. In 1962 many Indian troops were sent shivering to the front in light cotton uniforms issued for Punjab’s fiery plains. In a weeklong assault the Chinese seized much of Arunachal, as well as a slab of Kashmir in the western Himalayas, and killed 3,000 Indian officers and men. Outside Tawang’s district headquarters a roadside memorial, built in the local Buddhist style, commemorates these dead. At a famous battle site, below the 14,000-foot pass that leads into Tawang, army convoys go slow, and salute their ghosts.

Read the full article at the Economist

Forget Chindia
There are many caveats to the recent improvement in their relationship. As the world’s oil wells run dry, many—including sober analysts in both countries—foresee China-India rivalry redrawn as a cut-throat contest for an increasingly scarce resource. The two oil-gluggers’ recent co-operation on energy was, after all, as unusual as it was tentative. More often, Chinese state-backed energy firms compete with all-comers, for Sudanese oil and Burmese gas, and win.
Rivalry over gas supplies is a bigger concern for Indian policymakers. They fear China would be more able to “capture” gas by building massive pipelines overnight. Water is already an object of contention, given that several of the big rivers of north India, including the Brahmaputra, on which millions depend, rise in Tibet. China recently announced that it is building a dam on the Brahmaputra, which it calls the Yarlung Tsangpo, exacerbating an old Indian fear that the Beijing regime means to divert the river’s waters to Chinese farmers.

Negative views
In China, whose Communist leaders are neither voluble nor particularly focused on India, this bruising is mostly clear from last year’s quarrel itself. The Chinese, many of whom consider India a dirty, third-rate sort of place, were perhaps most obviously to blame for it. This is despite China’s conspicuous recent success in settling its other land disputes, including with Russia and Vietnam—a fact Chinese commentators often cite to indicate Indian intransigence. Chinese public opinion also seems to be turning against India, a country the Chinese have been wont to remark on fondly, if at all, as the birthplace of Buddhism. According to a recent survey of global opinion released by the BBC, the Chinese show a “distinct cooling” towards India, which 47% viewed negatively.
In garrulous, democratic India, the fallout is easier to gauge. According to the BBC poll, 38% of Indians have a negative view of China. In fact, this has been more or less the case since the defeat of 1962. Lamenting the failure of Indian public opinion to move on, Patricia Uberoi, a sociologist at Delhi’s Centre for the Study of Developing Societies, notes that while there have been many Indian films on the subcontinent’s violent partition, including star-crossed Indo-Pakistani romances, there has been only one notable Indian movie on the 1962 war: a propaganda film called “Haqeeqat”, or “Truth”, supported by the Indian defence ministry.
Hawkish Indian commentators are meanwhile up in arms. “China, in my view, does not want a rival in Asia,” says Brajesh Mishra, a former national security adviser and special envoy to China, who drafted the 2005 agreement and is revered by the hawks. “Its main agenda is to keep India preoccupied with events in South Asia so it is constrained from playing a more important role in Asian and global affairs.” Senior officials present a more nuanced analysis, noting, for example, that India has hardly been alone in getting heat from China: many countries, Asian and Western, have similarly been singed. Yet they admit to heightened concern over China’s intentions in South Asia, and foresee no hope for a settlement of the border. Nicholas Burns, a former American diplomat who led the negotiations for an America-India nuclear co-operation deal that was concluded in 2008, and who now teaches at Harvard University, suspects that over the past year China has supplanted Pakistan as the main worry of Indian policymakers. He considers the China-India relationship “exceedingly troubled and perturbed” and thinks that it will remain “uneasy for many years to come”.

Fear of encirclement
For foreign-policy realists, who see China and India locked in a battle for Asian supremacy, this is inevitable. Even fixing the border could hardly mitigate the tension. More optimistic analysts, and there are many, even if currently hushed, consider this old-school nonsense. Though both India and China have their rabid fringe, they say, they are rational enough to know that a strategic struggle would be sapping and, given each other’s vast size, unwinnable. Both are therefore committed, as they claim, to fixing the border and fostering better relations. Yet there are a few impediments to this—of which two are most often cited by analysts in Beijing and Delhi.

Saturday, 21 August 2010

Brazil: BM&FBOVESPA Monthly News August 2010

BVMF NEWS - August 2010  Complete and Detailed Version
  • CVM authorizes BM&FBOVESPA to implement new DMA modalities in the Bovespa segment
  • New Fee Policy for High-Frequency Traders (HFT)
  • BM&FBOVESPA presents new financial education campaign 
  • Itaú Unibanco S.A. is selected to manage the Financial ETF
  • Reduction in the round lot for ETFs to facilitate the access of individual investors 
  • Deadline extended for approval of amendments to the listing rules for the special listing segments
  • On August 13th BM&FBOVESPA announced its 2010 second quarter earnings 
  • MARKET RESULTS - BM&F Segment July 2010 
  • MARKET RESULTS - BOVESPA Segment July 2010

Tuesday, 17 August 2010

Chinese Gov't urged to stop corn-based ethanol production

China's industrial experts are advising the government to halt projects making ethanol bio-fuel with corn, as the projects are pushing up corn prices and sparking food security concerns. Zhao Youshan, director of the Commercial Petroleum Flow Committee (CPFC) under the China General Chamber of Commerce (CGCC), a national industrial organization, told Xinhua Tuesday he has informed the State Council, China's Cabinet, of his views.


Zhao said livestock breeders in China are facing feed shortages as ethanol fuel makers- prompted by government subsidies of roughly 1,900 yuan (279 U.S. dollars) per tonne of ethanol they can produce - have rushed to buy corn. Makers of ethanol fuel also enjoy tax exemptions according to a policy approved by the government in 2004 designed to boost the bio-fuel industry's development, Zhao said. The subsidies and preferential policies gave companies the incentive to buy corn, leading to price hikes and shortages of supply, he said. Higher corn prices at home also lead to more imports of the raw material.

Zhang Jianbo, a CGCC analyst, said China became a net importer of corn for the first time in the first half of the year. He said corn imports outweighed exports by 78 million tonnes. "The average corn price in July in northeastern China surged 15.7 percent year on year to 1,845 yuan per tonne," Zhang said, adding that livestock breeders cannot afford the high prices.

"These projects pose a great risk for grain supply in China," he added. Zhao said China's annual 10 million tonnes of ethanol fuel production could potentially consume 30 million tonnes of corn per year. In an interview with the Shanghai Securities Journal in July, Zhao said production costs for one tonne of ethanol range between 8,000 yuan and 9,000 yuan, adding the same amount of money could buy two tonnes of refined oil.

He suggested using other materials, such as cassava and wheat straw, to produce ethanol. Zhao told Xinhua Tuesday in a telephone interview the proposal was presented to the State Council in June and is at present being reviewed by the National Development and Reform Commission, China's top economic planner.
Source: CITIC Newedge, 11.08.2010 Mr. Liang Haisan

Saturday, 14 August 2010

Online Stock Trading and Fraud have come a longway in the past 10 years

Online trading has definitely come a long way in the past decade.  Innovation and technology now allow you to follow and trade stocks from your phone or laptop, not to mention accessing advice and chart information at the same time.  However, our new online powers have lulled us into a false sense of security in today’s high paced electronic world.  The criminal element in our society is counting on that fact to ply their own online trade activity, that of deceiving you out of your hard earned cash.

Yes, the unscrupulous few among us had to spoil the fun for all investors.  Does $400 billion a year in securities related fraud losses get your attention?  The FBI believes it should, as does the SEC and CFTC.  The Internet has been the great enabler of our times, providing access to mountains of information and a dizzying array of applications to bring convenience to our hectic lives.  It also has brought anonymity, the cloak that hides the invisible swindler that may have tapped you as his next target of opportunity.

Does this mean that you should forgo buying an iPad and take a course in risk management instead?  Of course not!  Fraud mitigation starts and stops with you and your ability to be skeptical and use common sense.  Here are a few suggestions to help you avoid the most common pitfalls for the average investor:

Business Partners: Fraudulent brokers have stolen millions from investors.  Do your due diligence.  There are many review services for checking banks and choosing the best stockbroker or best forex broker.  Make sure your bank has a strong balance sheet, and that your broker is above board and onshore.  Consult your banker or broker for investment advice on every investment deal.
Warning Signs: Some signs, though obvious, need repeating.  Here are a few tell-tell signs:
  • Unsolicited offers should be questioned or avoided;
  • If it sounds too good to be true, it most likely is;
  • If there is little or no risk, then it isn’t for real;
  • If there is a sense of urgency, walk away;
  • Swindlers talk fast so you won’t ask questions;
  • If written explanations are not forthcoming, stop considering it;
  • If it sounds too complicated, don’t waste your time;
  • Con Artists always dress well to impress and deceive;
  • Ignore referrals from friends, until after doing your due diligence;
  • Be very skeptical when asked to send a check or wire funds.
Actual Scams Often Repeated:

The Ponzi Scheme: The swindler pays high returns from new client deposits to gain your trust and new referrals.  He takes what is left.  Bernie Madoff and Kenneth Starr are prime examples of the craft;
The “Pump-and-Dump”:  Mass communication of rumors is used to pump up a stock’s value.  The swindler unloads his shares at a huge profit only to leave unsuspecting Buyers holding the bag after the price plummets;
The “Tipster”:  The Tipster calls 100 people, passing along a “tip” to gain confidence.  He tells half that the stock will rise, and the other half that it will fall.  The next day, he now has 50 “marks” that believe.  He may continue his confidence game until he finally asks you for money.  Be sure to walk the other way.

Investment fraud generally happens to those people who never expect it or are easily tempted by greed.  Protect yourself by heeding these warning signs and being aware of the most typical scams that con artists love to use.

Source: FOREXFraud, 13.08.2010

Tuesday, 10 August 2010

BlackRock Bob Dolls: 10 prediction for the next 10 years

“10 Predictions for the Next 10 Years” by BlackRock’s Bob Doll and what it means to investors:
  1. U.S. equities experience high single-digit percentage total returns after the worst decade since the 1930s.
  2. Recessions occur more frequently during this decade than only once a decade as occurred in the last 20 years.
  3. Healthcare, information technology and energy alternatives are leading growth areas for the U.S.
  4. The U.S. dollar continues to be less dominant as the decade progresses.
  5. Interest rates move irregularly higher in the developing world.
  6. Country self-interest leads to more trade and political conflicts.
  7. An aging and declining population gives Europe some of Japan’s problems.
  8. World growth is led by emerging market consumers.
  9. Emerging markets weighting in global indices rises significantly.
  10. China's economic and political ascent continues.
Read Bob Doll's full report 10 Predictions Next Decade

Source:BlackRock / Carral Sierra, 02.08.2010

Friday, 6 August 2010

Kroll LATAM Risk Report August 2010: Money Laundring, Mobile Banking, Mexican Security, Brazilian Litigations

MONEY LAUNDERING Banks on High Alert

Throughout much of Latin America and the Caribbean, banks and other financial institutions are getting tougher on money laundering. For the bad guys, the game of cat-and-mouse continues, as they jump from one country to another, looking for the weakest link in the chain.

BANKING & TELECOM Mexico The Regulator as Hero
Mexico's unheralded decision to design rules for mobile banking is a major milestone on the road to including millions of unbanked and underserved Latin Americans in the financial system and the formal economy.

Mexico Corporate Security
An annual survey conducted by Kroll and the American Chamber reveals a higher sense of insecurity among business executives at multinational and Mexican corporations. The safety of employees and executives remains the top concern for corporate heads of security.

CORPORATE LAW Challenging Sham Litigation in Brazil
A Brazilian regulatory agency takes on Germany's Siemens for alleged anti-competitive practices in a case that is likely to set an important precedent for regulators and the courts in protecting free market competition. GO TO FULL STORY

GO TO STORIES
Source: KROLL, 06.08.2010