Salient to Investors: John-Paul Smith at Deutsche Bank said stocks in the major developing markets will again lag global equities in 2013 – China has focused on increasing the pool of buyers for Chinese assets, rather than boosting the role of free markets and privately run companies in the broader economy. Smith prefers cash to BRIC
READ MORE... →Salient to Investors: Roberto Padovani at Votorantim CTVM said services inflation will keep running at close to 8 percent for the coming year, but sees the economy moving above capacity by the end of 2013, triggering a rate hike in 2013. Brasil will reduce electricity rates in 2013, which will have a deflationary impact of
READ MORE... →Salient to Investors: Q3 earnings of 58 percent of 62 companies on the Bovespa index missed analysts’ estimates versus 62 percent that missed in Q2 and 60 percent that missed in Q1. 67 percent reported sales higher than expected – Rodolfo Amstalden at Empiricus Research said the divergence is in part due to increasing costs in a tight labor market. Analysts
READ MORE... →Salient to Investors: Stronger housing demand and hiring in the US and accelerating factory output and retail sales in China is providing international growth as Europe and Japan stagnate. Jim O’Neill at Goldman Sachs Asset Mgmt said improving China and the US is extremely good news. Tim Drayson at Legal & General Investment
READ MORE... →Salient to Investors: Brazilian equities saw the biggest outflows in the past two months since Lehman’s collapse in 2008. EPFR Global said emerging-market equity funds attracted $10 billion during the same period, while Mexican stock funds had inflows of $179 million. Brazil’s domestic stock funds had inflows of $2.5 billion so far in 2012 versus
READ MORE... →Salient to Investors: Democratic gains in the Senate will make it more likely to focus on “advise and consent” than “obstruct and destroy.” Sanctions continue to erode the Iranian economy and incite public dissatisfaction with the Islamic regime. The rial has slumped as much as 40 percent against the dollar since
READ MORE... →Salient to Investors: Rising supply from Brazil potentially hurts demand for US beans. Rabobank Intl said Brazil will displace the US as the largest soybean grower this year and may extend that lead as planting is expanded to meet increased demand from China, the biggest buyer. Jasper van Schaik at Rabobank said Brazil’s share of China’s imports
READ MORE... →Salient to Investors: Luca Molinari at Warburg Pincus is targeting infrastructure service providers in Brazil which will grow significantly in the coming years. BTG Pactual Participations and Carlyle Group also seek to profit from investments needed to upgrade Brazil’s infrastructure for the World Cup and 2016 Summer Olympic Games. Eduardo Centola at Banco
READ MORE... →Salient to Investors: Prices to buy and rent houses and apartments in Rio’s top neighborhoods have risen six-fold in the past decade – as expensive as New York and Paris. On discovery of vast deep-water oil deposits in 2008; on hosting the 2016 Olympic Games; on a surge in world demand for Brazil’s commodities. The
READ MORE... →Salient to Investors: Brazilian small-caps are at 1.59 times book versus 3-yr low of 1.33 in June and the highest versus the Bovespa since February 2009. Consumer stocks account for 30 percent of the small-cap index, almost three times as much as their share in the Bovespa, where commodities producers account for 43 percent. Herculano
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