Posted Jun 20th 2009 12:10PM by Joseph Lazzaro
Filed under: International markets, Forecasts, Other issues, India, China, Brazil, Russia
The BRIC nations -- Brazil, Russia, India, China -- basically the powerhouses of the developing world, recently met to discuss, among other things, the possibility of forming an effort to move away from the dollar as the world's reserve currency.
Among options for consideration: a) a shift to another hard currency, b) a shift to a basket of currencies, and c) the possibility of the International Monetary Fund's special drawing rights unit of account serving as the new reserve currency.
Continue reading No BRIChouse yet: Dollar to remain world's reserve currency
Posted Jun 16th 2009 9:30AM by Connie Madon
Filed under: International markets, China, Brazil, Russia, Economic data, Federal Reserve, Recession
There is a disturbing trend that is taking shape across the international financial markets. It involves primarily Russia, Brazil and China. Just what are these countries up to? They may be tipping the balance of international finance into uncharted waters.
Specifically, they are buying smaller quantities of U.S. treasuries and using their excess reserves to buy other non-dollar denominated assets. For example, in April total net purchases of long-term equities, notes and bonds rose a net $11.2 billion compared with a gain of $55.4 billion in March. International holdings increased $41.9 billion in April, compared with $55.3 billion in March.
Continue reading China, Russia, Brazil reducing their purchases of U.S. securities -- why?
Posted Jun 5th 2009 12:50PM by Tom Johansmeyer
Filed under: China, Brazil, Private equity, Technology, Green Stocks
Investments in clean energy projects and companies reached $155 billion last year, surpassing fossil fuel investments. According to a United Nations report, $13.5 billion in new private investment was directed to companies that are developing new technologies, with almost half that (according to Private Equity Intelligence, Ltd.) coming from clean technology-focused private equity funds.
Clean energy sources account for the majority of energy investments last year, with $105 billion spent on developing 40GW of wind, solar, small hydro, biomass and geothermal energy generation capabilities. Large hydro (25GW) accounted for another $35 billion in investments.
Totaling $140 billion, this accounts for 56% of investments in power last year. The aggregate 65GW, however, represents only 41% of new capacity developed in 2008. Renewable energy dominated the clean technology space, 75% of the total at $117 billion.
Investments in clean energy technology grew 5% from 2007 to 2008, leading to a second consecutive record-setting year. Emerging markets made the difference last year – particularly China and Brazil. China has become the second largest wind market in the worlds (as measured by new capacity) and the world's top photovoltaic manufacturer.
Geothermal appears to be on the horizon for several countries, including Australia and Kenya. Nonetheless, the ongoing financial crisis has put the squeeze on the clean energy space. U.S. investments fell 2%, and growth slowed considerably in Europe.
Posted Apr 27th 2009 5:10PM by Gary E. Sattler
Filed under: International markets, China, Brazil, Politics
What does it mean when the International Monetary Fund (IMF) considers issuing bonds to raise cash? Obviously, the organization would be seeking more money to pursue its agenda, but what else could be inferred by this? How would the dynamics of world economic power wielding be affected? What effect could this have on the natural ebb and flow of free market capitalism? How would U.S. Treasuries be affected?
This possible bond issue was examined recently by Bloomberg.com. The Bloomberg article points to what I think is the most significant aspect that an IMF bond issue would present. I'm concerned that IMF bonds would directly compete with U.S. Treasury bonds. That possibility is fodder for a great deal of speculation.
Continue reading IMF bond sale: Would that be a good thing?
Posted Apr 25th 2009 10:00AM by Steven Halpern
Filed under: International markets, India, Brazil, Newsletters, Mutual funds, ETF Investing, Stock screen, Commodities, Agriculture
This post is part of a seven article report -- Food for thought: Best bets in food & beverage stocks.
"We're bullish on Juan Valdez," jests Eric Roseman, who sees an opportunity in an ETN (exchange-traded note) based on coffee prices. Here's the latest from his top-notch The Commodity Trend Alert.
"For individual commodities, supply and demand fundamentals are not ubiquitous and you really have to dig deep to find the best upside speculations. I think our time has arrived to bet on coffee.
Continue reading A cup of JO: Invest in coffee with an ETN
Posted Apr 20th 2009 11:30AM by Steven Halpern
Filed under: International markets, Brazil, Newsletters, Mutual funds, ETF Investing, Mexico, Commodities, Oil, Agriculture, Stocks to Buy, Obama Picks
Given President Obama's meeting last weekend with Latin American leaders, a look at Latin America-related mutual funds seemed particularly timely. As such we turn to fund expert Mark Salzinger.
The editor of No-Load Fund Investor explains, "The best way for mutual fund investors to add exposure to Brazilian stocks is through Fidelity Latin America (FLATX) or T. Rowe Price Latin America (PRLAX)." Here's his review of the two mutual funds.
"Both funds have solid records and new managers, but each has substantial experience and is backed by deep research teams.
Continue reading Favorite funds for investing in Latin America
Posted Apr 14th 2009 11:30AM by Connie Madon
Filed under: International markets, Brazil, Russia, Economic data, Oil, Recession
There's trouble in the oil patch for OPEC. Over the past year, OPEC has cut production at least three times to bring oil production down and keep prices from falling below $40 per barrel. In fact, OPEC wants to bring the price of oil back up to $70-$75 per barrel. The big question is whether it is working.
Well, part of the plan is successful. U.S. imports from OPEC fell 818,000 barrels per day or 14% to 5.02 million barrels per day in January from a year earlier. But if you remember the old adage, "While the cat is away, the mice will play," OPEC's plan is not holding up too well. When OPEC cut production, Russia and Brazil jumped in and did the opposite, namely increase exports to the US.
Continue reading OPEC vs. Russia and Brazil -- production cuts vs. increased exports
Posted Apr 9th 2009 2:00PM by Steven Halpern
Filed under: International markets, Brazil, Newsletters, Mutual funds, ETF Investing, Commodities, Oil, Agriculture
"We have been recommending iShares MSCI Brazil (ASE: EWZ) in our speculative portfolio," says mutual fund and ETF expert Mark Salzinger.
In The Investor's ETF Report, he adds, "But we now think Brazil's solid long-term economic fundamentals and the ETF's 'scompelling valuation and well-positioned companies offer exceptional return potential as a portion of some investors'core portfolios, too."
"Brazil's stock market was assailed on all sides in 2008, when EWZ declined by about 55%. Robust gains in the previous five years had priced Brazil's stocks dearly, and investors'decreased tolerance for any perceived risk saw them abandon emerging markets stocks in droves.
Continue reading ETF expert looks to Brazil
Posted Mar 18th 2009 12:15PM by Elizabeth Harrow
Filed under: International markets, Management, China, Brazil, MasterCard Inc'A' (MA), Options
While most companies are taking steps to conserve cash, the CEO of MasterCard Incorporated (NYSE: MA) is pondering an overseas spending spree.
In a recent Reuters interview, President and Chief Executive Robert Selander expressed his willingness to ramp up MasterCard's investment in emerging markets, including high-profile countries such as Brazil and China.
"We are making investments in some of the emerging markets where we continue to see growth. We will probably increase some of those investments as the relative growth rate in those markets is better than some of our more mature and struggling economies," Selander told the news service.
Continue reading MasterCard CEO eyes investments in China, Brazil
Posted Mar 17th 2009 9:00AM by Zac Bissonnette
Filed under: Brazil

With "Buy American" policies in the stimulus package, one of the worst things to come out of the recession is a return to protectionist trade policies and a belief that "keeping the money over here" is the best thing for the United States economy.
Brazilian President Luiz Inacio Lula da Silva blasted protectionist trade policies in a speech to bankers and business leaders in what
Bloomberg is calling "his most high-profile defense to date of free trade, which he says is necessary to protect jobs in poor countries beset by the global crisis."
Continue reading Brazilian president warns of protectionist dangers
Posted Feb 13th 2009 7:30AM by Connie Madon
Filed under: International markets, Bad news, China, Brazil, Russia, Economic data, Commodities, Eastern Europe, Financial Crisis
The world's emerging markets are falling with amazing speed. This has caught everyone off guard. Let's look at some statistics that show the severity of this plunge:
- Taiwan's exports plunged 44% from the same month last year.
- Brazil's industrial production plunged 12.4% in December from the previous month.
- The Russian ruble and the Hungarian forint have dropped about 14% against the dollar.
- The South Korean currency, the won, has shed 8% of its value against the dollar and South Korea's industrial output dropped to its lowest level on record.
- The Mexican peso is at an all time low against the dollar.
- South Korea's exports fell more that 30% in January.
Continue reading Emerging markets are sinking fast
Posted Feb 12th 2009 11:50AM by Joseph Lazzaro
Filed under: International markets, Forecasts, India, China, Brazil, Russia, Middle East, Mexico, Japan, Recession, Financial Crisis

The manager of the world's largest bond fund, PIMCO, has laid-out in unambiguous terms the problem facing the global economy in the quarters ahead: The U.S. and global recession will worsen -- with a "second wave" of turmoil -- unless governments increase fiscal stimulus and spending plans.
"The economic setback is still in its early stages," Koyo Ozeki, head of Asia-Pacific credit research at Pimco's Tokyo office, wrote in a report
published on PIMCO's web site. "Any further decline in housing prices could accelerate the downturn, intensifying the pernicious feedback loop and possibly leading to a second wave in the financial crisis in the next six to 12 months."
Continue reading PIMCO says recession will deepen without more fiscal stimulus by nations
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