BRIC Dominance Fades as State Meddling Curbs Equity Returns – Bloomberg 12-31-12

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

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Profit Disappointments Show No Rousseff Bounce: Corporate Brazil – Bloomberg 11-16-12

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

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Economy Has Green Shoots From China to U.S. as Data Surprise – Bloomberg 11-14-12

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

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Brazilian Stocks Squeezed by Rousseff as Valuations Increase – Bloomberg 11-12-12

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

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Brazil Seen Beating U.S. in Soybean Trade as China Buys – Bloomberg 10-31-12

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

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Warburg Hunts Stakes for World Cup Buildup: Corporate Brazil – Bloomberg 10-16-12

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

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Small Caps Rule Bovespa as Stimulus Skips Vale: Corporate Brazil – Bloomberg 09-21-12

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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