Wednesday, 29 December 2010

Deal Brief: Argentine Vineyards

For so long a ‘sleeping giant’ in the wine industry, Argentina is now creating a buzz on world markets.  The largest Latin American producer—and sixth biggest in the world—is one of the hottest prospects as its intense, high-altitude wines and competitive costs seduce collectors and supermarket shoppers alike.


Drawing on extensive research and interviews with industry experts, this ‘deal brief’ will examine why the international wine community is focused on Argentina right now, how this is stirring interest in vineyard real estate in the South American giant, and what are the different assets available for investors.

Source: ALI, 27.12.2010

Sunday, 26 December 2010

BlackRock lista 7 nuevos ETF de indices de Asia, Polonia, Brazil y renta fija International en Mexico

Ciudad de México, 26 de diciembre de 2010 – El pasado jueves 23 de diciembre, empezaron a negociarse en el Sistema Internacional de Cotizaciones (SIC) de la Bolsa Mexicana de Valores (BMV) 7 nuevos ETFs iShares internacionales, patrocinados por Deutsche Securities, S.A. de C.V., Casa de Bolsa y administrados por BlackRock, en lo que constituye el cuarto paquete de ETFs iShares listados en el SIC el presente año.

Los 7 ETFs iShares que integran este paquete brindan exposición a índices de renta variable internacional de mercados emergentes y de Asia no emergente, así como de renta fija internacional.
Los ETFs iShares listados en el SIC son:

Nombre Clave de pizarra % Gastos Aprobado por CONSAR
Instrumentos de renta variable
iShares MSCI China Small Cap Index Fund ECNS 0.65 No
iShares MSCI Indonesia Investable Market Index Fund EIDO 0.65 No
iShares MSCI New Zealand Investable Market Index Fund ENZL 0.55 No
iShares MSCI Poland Investable Market Index Fund EPOL 0.65 No
iShares MSCI Brazil Small Cap Index Fund EWZS 0.65 No
Instrumentos de renta fija
iShares FTSE Gilts UK 0-5 IGLS 0.20 No
iShares DEX Short Term Bond Index Fund XSB 0.25 No
Estos 7 ETFs iShares permiten tener acceso a un perfil de inversión representado por el dinámico sector de empresas de baja capitalización de economías que han tenido desempeños recientes interesantes, como la china, indonesia, neozelandesa, polaca o brasileña.

Por ejemplo, el iShares MSCI China Small Cap Index Fund mantiene una posición diversificada en empresas chinas de baja capitalización del sector automotriz, minero, tecnológico, de bienes raíces, energético, cementero y de materias primas, entre muchos otros.

Las carteras, desempeños recientes, retornos históricos, prospectos y otros datos de interés de estos nuevos ETFs pueden ser consultados en www.iShares.com.mx.

“Con este cuarto paquete de ETFs iShares listados en el SIC este año, culmina un 2010 de intensa actividad para BlackRock en México, pues arrancamos con 126 ETFs, y estamos cerrando con un total de 168: 146 ETFs listados en el Sistema Internacional de Cotizaciones y 12 ETFs listados en el mercado local de la Bolsa Mexicana de Valores (BMV). Asimismo, pasamos de 10 mil millones a 14 mil millones de dólares en activos bajo administración para clientes en México a través de los ETFs iShares, en cuentas segregadas y clientes institucionales. Ambos indicadores ratifican nuestra posición de liderazgo en esta industria”, indicó Isaac Volin, Director Ejecutivo de BlackRock México.

A escala internacional, BlackRock también mantuvo su liderazgo este año con un total de activos gestionados globalmente por 3.45 billones de dólares (trillion dollars), al 30 de septiembre de 2010.
Con los ETFs iShares de BlackRock, los inversionistas mexicanos tuvieron por primera vez en 2004 acceso desde México a una amplia gama de vehículos de inversión con exposición a diferentes clases de activos internacionales, que les han permitido conformar portafolios mejor diversificados para optimizar rendimientos ajustados por riesgo.

BlackRock está firmemente comprometido a poner al alcance de los inversionistas mexicanos la familia más completa y diversificada de vehículos de inversión para tener acceso a todas las clases de activos disponibles a escala global. A su vez, ofrece acceso a inversionistas internacionales a instrumentos de activos mexicanos que contribuyen al financiamiento y desarrollo de México.
Source: BlackRock 26.12.2010

Thursday, 23 December 2010

BlackRock Forecast: 2011 may be a rerun of 2010 for global economy

London, December 22nd, 2010 – Richard Urwin, Head of Investment within BlackRock’s Fiduciary Mandate Team, believes 2011 is likely to be another positive year for global equities and other risk assets, despite persistent headwinds. Expanding on this view, Richard offers the following outlook for the global economy in 2011:
  • Inflation risk remains low in developed economies, but is more pronounced in emerging markets: For the developed economies, 2011 is expected to be a year in which central banks see inflation as too low rather than accelerating. Low inflation does not imply deflation. Indeed, if deflation risk were to rise, so should the degree of monetary stimulus from central banks.  While the inflation risk in emerging economies is significant, inflation is unlikely to accelerate substantially.
  • Economic growth should continue through 2011: Global growth could be more balanced with developed markets contributing more to growth next year as the momentum built up in the second half of 2010 continues. For instance, growth in Germany, Japan and the UK in recent quarters has averaged between and 3% and 4%.
  • The demise of the euro is a very low probability event: The most significant event to affect financial markets in 2010 was arguably the European sovereign debt crisis. This is likely to have a significant influence on markets well into 2011 and beyond, given that southern Europe faces an extended period of retrenchment. However, the demise of the euro is very improbable.
  • There is no sign of irrational exuberance in equity market valuations: On the contrary, equity multiples towards the end of 2010 appear modest by historical standards. We believe the market reflects concerns about the length and strength of the global economic recovery. In these circumstances, additional returns to risk assets do not require utopian outturns, rather an environment in which challenging news is simply not quite as challenging as expected.
  • Equity returns in 2011 will be heavily dependent on the global cycle: Valuations are not so supportive that equity markets could rise on material growth disappointments, even if these stop short of recession. In addition, corporate earnings growth could slow from the strong rates of the past year or so.  Similarly, with a moderately favourable cyclical background, most forms of credit should outperform sovereign bond returns.
  • The low level of bond yields implies low returns to bonds in the medium term: However, for yields to back up significantly in 2011, one of two conditions would have to apply. Either global growth or inflation picks up enough so that central banks abandon their easy-money policy and raise interest policy rates sharply, or concerns over large and sustained budget deficits increase.
  • Policy rates in developed economies are expected to be kept low: We doubt that animal spirits will recover in 2011 even if global savings fall significantly. Hence, the catalyst for significant increases in bond yields during 2011 appears lacking. This suggests that government bond yields, excluding those in peripheral euro zone countries, will remain at stretched valuations for an extended period, delivering negative real returns.
Richard commented:  “In some respects, 2011 may feel like a re-run of this year.  Equities are likely to grind higher - with emerging market equities outperforming modestly rather than spectacularly, partly as a result of currency appreciation in these markets – while commodities could make further gains as supply/demand imbalances persist.

“The most marked difference in returns from 2010 could emerge in the sovereign debt market, with the headwind of very low yields. While diversification into corporate bonds and other non-government debt could add value, the scope for material spread narrowing is more limited. In short, 2011 could be another year where many investors find it difficult to take investment risk.  It is, however, likely to pay off.”

Notes to Editors:

Richard Urwin, Managing Director, is the head of Investments within BlackRock's Fiduciary Mandate Investment team (FMIT). Mr. Urwin is responsible for asset allocation and manager selection within the fiduciary client base.
Source: BlackRock, 22.12.2010

Sunday, 19 December 2010

10 Trends for 2011 by Gerald Celente

After the tumultuous years of the Great Recession, a battered people may wish that 2011 will bring a return to kinder, gentler times. But that is not what we are predicting. Instead, the fruits of government and institutional action – and inaction – on many fronts will ripen in unplanned-for fashions.
Trends we have previously identified, and that have been brewing for some time, will reach maturity in 2011, impacting just about everyone in the world. 

1. Wake-Up Call In 2011, the people of all nations will fully recognize how grave economic conditions have become, how ineffectual and self-serving the so-called solutions have been, and how dire the consequences will be. Having become convinced of the inability of leaders and know-it-all "arbiters of everything" to fulfill their promises, the people will do more than just question authority, they will defy authority. The seeds of revolution will be sown…. 

2. Crack-Up 2011 Among our Top Trends for last year was the "Crash of 2010." What happened? The stock market didn’t crash. We know. We made it clear in our Autumn Trends Journal that we were not forecasting a stock market crash – the equity markets were no longer a legitimate indicator of recovery or the real state of the economy. Yet the reliable indicators (employment numbers, the real estate market, currency pressures, sovereign debt problems) all bordered between crisis and disaster. In 2011, with the arsenal of schemes to prop them up depleted, we predict "Crack-Up 2011": teetering economies will collapse, currency wars will ensue, trade barriers will be erected, economic unions will splinter, and the onset of the "Greatest Depression" will be recognized by everyone….

3. Screw the People As times get even tougher and people get even poorer, the "authorities" will intensify their efforts to extract the funds needed to meet fiscal obligations. While there will be variations on the theme, the governments’ song will be the same: cut what you give, raise what you take. 

4. Crime Waves No job + no money + compounding debt = high stress, strained relations, short fuses. In 2011, with the fuse lit, it will be prime time for Crime Time. When people lose everything and they have nothing left to lose, they lose it. Hardship-driven crimes will be committed across the socioeconomic spectrum by legions of the on-the-edge desperate who will do whatever they must to keep a roof over their heads and put food on the table….

5. Crackdown on Liberty As crime rates rise, so will the voices demanding a crackdown. A national crusade to "Get Tough on Crime" will be waged against the citizenry. And just as in the "War on Terror," where "suspected terrorists" are killed before proven guilty or jailed without trial, in the "War on Crime" everyone is a suspect until proven innocent…. 

6. Alternative Energy In laboratories and workshops unnoticed by mainstream analysts, scientific visionaries and entrepreneurs are forging a new physics incorporating principles once thought impossible, working to create devices that liberate more energy than they consume. What are they, and how long will it be before they can be brought to market? Shrewd investors will ignore the "can’t be done" skepticism, and examine the newly emerging energy trend opportunities that will come of age in 2011…. 

7. Journalism 2.0 Though the trend has been in the making since the dawn of the Internet Revolution, 2011 will mark the year that new methods of news and information distribution will render the 20th century model obsolete. With its unparalleled reach across borders and language barriers, "Journalism 2.0" has the potential to influence and educate citizens in a way that governments and corporate media moguls would never permit. Of the hundreds of trends we have forecast over three decades, few have the possibility of such far-reaching effects…. 

8. Cyberwars Just a decade ago, when the digital age was blooming and hackers were looked upon as annoying geeks, we forecast that the intrinsic fragility of the Internet and the vulnerability of the data it carried made it ripe for cyber-crime and cyber-warfare to flourish. In 2010, every major government acknowledged that Cyberwar was a clear and present danger and, in fact, had already begun. The demonstrable effects of Cyberwar and its companion, Cybercrime, are already significant – and will come of age in 2011. Equally disruptive will be the harsh measures taken by global governments to control free access to the web, identify its users, and literally shut down computers that it considers a threat to national security…. 

9. Youth of the World Unite University degrees in hand yet out of work, in debt and with no prospects on the horizon, feeling betrayed and angry, forced to live back at home, young adults and 20-somethings are mad as hell, and they’re not going to take it anymore. Filled with vigor, rife with passion, but not mature enough to control their impulses, the confrontations they engage in will often escalate disproportionately. Government efforts to exert control and return the youth to quiet complacency will be ham-fisted and ineffectual. The Revolution will be televised … blogged, YouTubed, Twittered and….

10. End of The World! The closer we get to 2012, the louder the calls will be that the "End is Near!" There have always been sects, at any time in history, that saw signs and portents proving the end of the world was imminent. But 2012 seems to hold a special meaning across a wide segment of "End-time" believers. Among the Armageddonites, the actual end of the world and annihilation of the Earth in 2012 is a matter of certainty. Even the rational and informed that carefully follow the news of never-ending global crises, may sometimes feel the world is in a perilous state. Both streams of thought are leading many to reevaluate their chances for personal survival, be it in heaven or on earth….

See also http://www.trendsresearch.com/forecast.html
Source: Gerald Celente, Trendsresearch, 18.12.2010

Wednesday, 15 December 2010

Kroll LATAM Risk Report December 2010: Brazil Land Ownership n Infrastructure Fraud, Private Banking KYC, Colombia Corruption

FRAUD - Brazil - Steering Clear of the Potholes
Brazil has committed to billions of dollars worth of infrastructure investments in preparation for the 2014 World Cup and the 2016 Olympic Games. The opportunities for international suppliers, contractors and investors are considerable. So, too, are the risks of fraud.
Vander Giordano, Sao Paulo & Allie Nichols, New York  GO TO FULL STORY

CORRUPTION - Colombia - Battling Fraud & Corruption
By leveraging public outrage, the new administration of President Juan Manuel Santos has an opportunity to change Colombia's "anything goes" culture and attack the scourge of corruption with a new sense of purpose.
Andrés Otero, Miami & Ernesto Carrasco, Bogota GO TO FULL STORY

PRIVATE BANKING - The Good, the Bad & the Ugly
For private bankers, there's nothing more enticing than the prospect of landing a wealthy foreign client, but the client's background and source of funds must be carefully analyzed. Often, only an enhanced due diligence will identify the risks.
John Price, Miami GO TO FULL STORY


LAND RIGHTS - Brazil - Sending the Wrong Message
Turning back the clock, the Brazilian government tightens land rights legislation, restricting land purchases for foreign companies and individuals. Real Estated
Paulo Sérgio Franco & Scheila Santos São Paulo  GO TO FULL STORY
Source: Kroll, 14.12.2010

Friday, 3 December 2010

Alternative Latin Investor Issue 7 November/December 2010

Alternative Latin Investor Issue 7 November/December 2010 click here for a free issue Issue7
Content Index:

Infrastructure
Investing in listed shares of Latin American Infrastructure Companies

Emerging Markets
Latin America vs. Asia

Agribusiness
Ahuacatl: A Fruite for the Ages

Art
Latin American Art Gains Momentum in Europa

Commodities
Brazil's Energy Industry in the Wake of New South

Philanthropy
One Economy: Leveraging the Power of Technology to Improve Lives

Profiles
ALI Speaks with Bertrand Delgado: Senior Analyst for Emerging Markets and Latin America at Roubini Global Economics

Real Estate
Finding and Entrance into Mexico's Affordable Housing Construction Finance Market.

FOREX
Increasing Threat of Currency "WAR's" to Ignite 4th Quarter FX Activity?

Renewable Energy
Argentina's Energy Framework: Preparing for an Onslaught of Renewable Energy Investment
Winds of Change: Harnessing Wind Energy in Brazil

Regulations

New Bills Proposed to Amend the Law on Finance Entities in Argentina

Opinion
How will Nestor's Passing Affect Argentina

Ventures
ALI speaks with Element 360 Founder, Chad Martin

Source: Alternative Latin Investor 02.12.2010