The power of BRICS

If you have not paid attention to the BRICS (Brazil, Russia, India, China and South Africa together), we recommend you to do so. At least huge economies such as EEUU and Europe are connected with decision madden during this week in Delhi, where they are met to discuss important subjects such as the creation of a BRICS development bank, that should help to develop infrastructure of participant countries and also could give them more autonomy then even before. The reason why they really matters is not only because of their sizes now (together they represent 40% of Global population), but also because projections say that by 2018 their PIB together would surpass EEUU PIB and by 2025 they would represent 50% of Global PIB. Additionally, they can make great business together as their power are complimentary. A good example is that Brazil and Russia are great exporters of raw materials, while China and India have their strength as low cost service providers and huge importers of Raw Materials.

Take a look on recent news and get connected to this Global power to the best of your investment decisions.

This week you should pay carefully attention to Brazilian Government and emerging markets Central Bankers’ news

We have been talking about the importance of Brazil in the emerging markets, especially considering the upcoming opportunities due to events such as World Cup and Olympic Games as well as the current economic situation. Even affected by economic crisis in Euro zone and USA, Brazil has just reported stronger February manufacturing results with PMI index increasing to 51.4. Also Government announced measures to contain US dollar currency devaluation, extending from 2 to 3 years the IOF (financial transaction tax) to loans, which should support local producers and manufacturing to continue being competitive in Export and also in local market as dollar weakness increases the competitiveness in both sides.

Now, we should pay attention to this week news, as Brazil should report next Tuesday, the 06th the GDP figures for fourth quarter and full year as well as on next Wednesday, the 7th The Brazilian Central Bank is expected to lower the SELIC target rate from 10.5 to 10.0%.

Get to know those numbers that will help us to understand how Brazil is being affected by the Global economic crisis and the actions taken to continue supporting their growth, so we can understand possible (if any) impact in our emerging markets portfolio.

Central Bankers / Government of Colombia, China, Korea, Peru and Indonesia are also set to release news on rates and economic situation for consumers / producers this week. Good listening !!!!

World Bank Report - China 2030

Great report released by  World Bank on China’s slower growth, development goals and path to lead economy by 2030.
The President of World Bank will make it public today in Beijing the full version of its report called China 2030, which includes great analysis on the slowdown of China growth (from 10% average to 5% or 6% in the next years), the development path and the biggest challenges they have to face to complete its transition to market economy and to reach the goal of being the high income country by 2030.

Read the highlights in the link below and the full report later today at the World Bank site.
http://www.worldbank.org/en/news/2012/02/27/china-case-for-change-on-road-t-030

China vice president in Hollywood to unveil a large joint Venture with DreamWorks Animation

Just a quick follow-up to the article we wrote about the growing presence of China and Japan in big USA and Europe companies, the vice president of China is set to unveil today in Hollywood a large joint venture between two Chinese state-owned media companies and DreamWorks Animation, well known through its famous Shrek, Kung Fu Panda and Madagascar films. Number involving this negotiation are speculated to around 2 billon dollars and include a new studio facility to be built in Shangai.

Are China and Japan buying Europe and United States?

They say NO. They say they have no intention and no means, but the fact is that in 2011, China investments in Europe increased by two times and are over US$ 6.0BB. Both China and Japan are buying giant companies in Europe and USA, taking advantage of the great liquidity Asian markets have, differently from the other two Regions that are struggling with a terrible economic crisis. There are groups of Asian investors coordinating trips to EUA and Europe to search and close good business. That’s maybe an opportunity for you too, as you can make your homework and study which companies are receiving Asian investments and how / if they would fit to your portfolio. Do not forget that it is important to make the whole study and carefully analyze financial results prior to make any decision. All of us know that China and Japan are willing to support Europe and USA and to continue having government debt of those two Region, even increasing the amount already owned, but so far no concrete action was defined on this direction while the purchase of companies is a reality rapidly increasing since last year. Good search!!!