We need to plot the rest of the year.
If we answer this question: How investors will react to staginflation?, we will know it.
Europe has not decoupled and the floor that's been put under the USD in quotes.ino.com is the result of Europe currencies weakening. Europe weights heavy in the Dollar Index.
The US only see actions after Obama seats in the oval house. So we have to see whois going to deliver the goods...
A global rebalancing act
By Jerome Booth
Published: May 12 2008 16:10 | Last updated: May 12 2008 16:10
There are mixed signals for the global economy. Inflation is rising at a time of global slowdown.
The US economy is weakening while commodities soar. There may be both inflation and slow growth in the US, and maybe also in Europe, but both the growth and inflation pictures may look very different in emerging markets. From low levels, inflation has risen with strong upsurges in domestic demand in emerging markets. However, growth will continue to be robust, if slightly down.
As a result of staginflation investors will seek growth and low inflation. Emerging markest are now trully decoupled.
They accounted for 65% of global growth last year and will account to 75% of global growth this year.
As it dawns on investors that there's only one game in town, FDI will flow to emerging markst like a torrent. Investors are already scanning the landscape for cheap countries to pile in Cambodja, Africa...
Huge moves in the South:
Bharti unlikely to hike $45-bn offer for MTN
Economic Times, India - May 15, 2008
BANGALORE: Bharti Airtel may not pay more than $45 billion for all of MTN Group, while the South African operator is seeking $50 billion, Dow Jones reported
Fitch: Consolidation & Growth to Affect Brazil Beef Sector
....
acceleration of sector consolidation over the next two years. Large Brazilian beef export players, such as Friboi (JBS), Bertin, Marfrig, Minerva, Mercosul, Independencia, Sadia, Arantes, Mataboi, and Margen, will likely be best positioned to participate in sector consolidation, depending on their individual business strategies.
'Strategic consolidation can lead to economies of scale and could present opportunities to improve profitability for the smaller producers,' said Revisson Bonfim, Director in Fitch's Latin America Corporates Group. 'Fitch also expects beef producers to push into other areas of the protein sector, while food companies such as Sadia and Perdigao will increase participation in the beef sector in order to self-supply raw material for their beef food products,' he added.
with oil prices going up unabated, sugar cane-based ethanol will move to another step
Brazil's biofuels in consolidation phase
"In 10 years we'll certainly see Brazil harvesting one billion tonnes of cane with only 20 industrial groups," Borges said.
canada.com
Africa high food prices will mean African governments will be forced to move.
Kenya's government plans to raise 50 billion shillings ($813 million) by selling 25 percent of Safaricom in what will be east Africa's biggest IPO. The company is 40 percent owned by Newbury, England-based Vodafone Group Plc, the world's largest provider of wireless services, and 60 percent by state-run Telkom Kenya Ltd. |
