May 27, 2013
Hong Kong stocks inch up; China banks gain HONG KONG (MarketWatch) -- Hong Kong stocks climbed toward a second straight day of gains Tuesday, with major Chinese banks and conglomerates underpinning the advance, while insurers declined. The Hang Seng Index rose 0.1% to 22,709.88 and the Hang Seng China Enterprises Index gained 0.3% to 10,781.63. China Construction Bank Corp. rose 0.5% and Industrial & Commercial Bank of China Ltd. rose 0.4%, with Bernstein Research raising its view on the large Chinese banks. Cathay Pacific Airways Ltd. rose 0.6% on easing crude-oil prices, while ports operator Cosco Pacific Ltd. added 2.8% and diversified Swire Pacific Ltd. gained 1% among other notable gainers. On the downside, China Life Insurance Co. dropped 0.7%, while Lenovo Group Ltd. shed 1.7%. China's Shanghai Composite edged 0.3% lower in choppy trading. 19 min ago
Japan stocks turn volatile after sell-off Japanese stocks swing between gains and losses, with many exporters advancing on the back of a pullback in the yen, while some financials weaken after recent volatility in the bond markets.
African Economic Outlook 2013; May 27, 2013: Natural resources can fuel Africa’s economic transformation
African Economic Outlook 2013: Natural resources can fuel Africa’s economic transformation
Africa’s agricultural, mining and energy resources could boost the continent’s economic growth
MARRAKESH, Morocco, May 27, 2013/ -- Africa’s agricultural, mining and energy resources could boost the continent’s economic growth and pave the way for a breakthrough in human development, according to the African Economic Outlook 2013 (http://www.africaneconomicoutlook.org), released here Monday.
The report is produced annually by the African Development Bank (AfDB) (http://www.afdb.org), the OECD Development Centre, the Economic Commission for Africa (ECA) and the UN Development Programme (UNDP).
The continent’s economic outlook for 2013 and 2014 is promising, confirming its healthy resilience to internal and external shocks and its role as a growth pole in an ailing global economy. Africa’s economy is projected to grow by 4.8% in 2013 and accelerate further to 5.3% in 2014.
The report shows this growth has been accompanied by insufficient poverty reduction, persisting unemployment, increased income inequalities and in some countries, deteriorating levels of health and education.
“Now is the time to step up the tempo of economic transformation, so that African economies become more competitive and create more gainful jobs”, say the authors of the report, adding that “widening the sources of economic activity is fundamental to meeting this challenge.”
The report argues that African countries must tap into their natural resource wealth to accelerate the pace of growth and ensure the process can benefit ordinary Africans.
“Growth is not enough”, said Mario Pezzini, Director at the OECD Development Centre. “African countries must provide the right conditions for turning natural resources into jobs, optimise their resource revenues through smart taxation and help investors and locals to make the most of linkages.”
According to the report, four key elements are needed to achieve that objective. Firstly, African countries should create the right conditions for such a transformation to take place, including infrastructure, education and the creation of larger and more competitive markets.
“Access to markets is fundamental to structural transformation based on natural resources: regional integration and better access to the markets of large partners could open new opportunities for all”, said Emmanuel Nnadozie, Director, Macroeconomic Policy Division at ECA.
In the second instance, the primary sectors require sound land management, balanced and effective tax systems and the right mechanisms and incentives to cause an acceleration and diversification of the sources of growth.
In the agricultural sector for instance, transport, fertilizers and more resistant seeds are required for an increase in productivity. Africa has 24 per cent of the world’s agricultural land, but accounts for only 9 per cent of its production.
Thirdly, governments and investors must ensure that a fair share of the proceeds from natural resources and extractive industries accrue to society: for example, they should be invested in people’s capacities to take up new jobs in promising sectors.
Finally, the report suggests that African countries can foster change and economic diversification actively, for example through corridors of development around power, transport and communication lines. Stable and transparent use of budgets is key to achieving that goal.
“Now is the time”, said Mthuli Ncube, Chief Economist and Vice-President of the African Development Bank (AfDB), “After ten years of improved stability, sound macroeconomic policies and blossoming trade links, growth has made African nations freer than ever to choose their own development paths and implement active policies for economic transformation.”
Ultimately, transformation means opening opportunities so people can find jobs, create businesses, as well as invest in health, education and food security. In turn, higher levels of human development for all, including the most vulnerable, can accelerate the pace of economic transformation, leading to a virtuous cycle of growth and development.
“Among many other benefits, human development can help drive Africa’s structural transformation by speeding both the rate of innovation and uptake of new technologies,” said Pedro Conceição, Chief Economist at UNDP’s Regional Bureau for Africa. “But for this to happen, more attention should be paid to improving access to and quality of education and healthcare systems, transforming agriculture and fostering job creation in order to narrow income inequalities.”
Distributed by the African Press Organization on behalf of the African Development Bank (AfDB).
Information about the report: The annual African Economic Outlook covers economic, social and political development in 53 of the continent’s 54 countries. It is published with financial support from the European Union and the Committee of African, Caribbean and Pacific Group of States (ACP).
For the whole report, including statistics and specific country performance, please visit http://www.africaneconomicoutlook.org
African Development Bank: Olivia Ndong Obiang, firstname.lastname@example.org M: +216 959 99 770 (Tunis)
OECD Development Centre: Margo Cointreau, margo.COINTREAU@oecd.org T: +33 (0) 6 01 48 42 89 (Paris)
UNDP: Romain Desclous, email@example.com T: +1 646 255 5690 (New York)UNECA: Yinka Adeyemi, firstname.lastname@example.org T: +251 11 544 3537 (Addis Ababa)
Evergreen Line contractor launches company-wide whistleblower amnesty: BIV Today's Business News; May 27, 2013.
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This Week's Issue
May 27, 2013
Compiled 20:45 GMT
Compiled 20:45 GMT
By JAMES KANTER
European Union foreign ministers gathered on Monday amid deep divisions over whether to allow member countries to send lethal aid to the Syrian opposition.
By NICK CUMMING-BRUCE
Navi Pillay invoked the responsibility of governments to protect civilians from war crimes but stopped short of calling for direct intervention in Syria.
By DURAID ADNAN
The attacks that struck Shiite neighborhoods in Baghdad added to concerns of a renewal of the kind of sectarian violence that tore through the country in 2006 and 2007.
By DECLAN WALSH and SALMAN MASOOD
Electricity shortages, the product of decrepit power plants, decades-old policy mistakes and corruption, have reached crisis proportions.
By ANNE BARNARD
Four people were wounded in a strike in the Hezbollah-controlled area of southern Beirut, Lebanon, during an attack that seemed linked to the militant group's growing role in the Syrian war next door.
By CHOE SANG-HUN
Skeptical statements from South Korea's foreign minister and North Korea's public silence on negotiations have cast doubt on the prospects for reconvening six-nation nuclear talks.
FGC BOLSA- FGC FIN
Compiled: May 27, 2013 04:08:55 PM
Racial Diversity Efforts Ebb for Elite Careers, Analysis Finds
By NELSON D. SCHWARTZ and MICHAEL COOPER
A Supreme Court case on considering race as a factor in university admissions has reignited debate on African-Americans’ progress in sought-after professions.
HSBC veteran Niall Booker to take helm at troubled Co-op bank: The Telegraph Front Page P.M. - Finance; May 27, 2013.
By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) — European stock markets traded higher on Monday after two straight days of losses, helped by gains for autos and banks, though holidays in both the U.S. and U.K. were keeping volumes thin.
U.S. data under more scrutiny
U.S. economic data will come under even more scrutiny this week after the Federal Reserve’s suggestion of an early unwinding of quantitative easing helped send Japanese shares lower.
The Stoxx Europe 600 index XX:SXXP +0.25% rose 0.2% to 303.89, holding onto gains after two straight sessions of losses. The index closed down 1.7% last week, breaking a four-week winning streak.
“We believe the equity market is still driven by the momentum trade, lower tail-risk due to central bank policies and benign valuations across the board,” said Peter Garnry, equity strategist at Saxo Bank.
“For investors that want to get into equities after missing the rally, the price is steep which is why prices are still adjusting upward. We need to see a major negative policy or market event before this momentum trade is put to a stop,” he added in emailed remarks.
Action is limited owing to the Memorial Day holiday in the U.S. and a spring bank holiday in the U.K.
Among stocks that pushed ahead, shares of Fiat SpA IT:F +3.88% rose 3.6% after the Wall Street Journal reported over the weekend that the company is in talks with banks to close the financing for the Chrysler buyout. A spokesperson for Fiat could not immediately be reached for comment.
The heavyweight helped push the FTSE MIB Italy index XX:FTSEMIB +1.23% up 1.3% to 17,132.99, making it the day’s best performer so far. The index was also aided by a 1.4% gain for Eni SpA IT:ENI +1.18% .
Vivendi SA FR:VIV +2.87% added 2.6%. Qatar Telecom QSC’s chief executive officer told Bloomberg News in an interview that the company has raised $12 billion to finance its bid for a majority stake in Marco Telecom SA, which is 53% owned by Vivendi. It’s competing with Emirates Telecommunications Corp. to buy that stake.
Easy global money has been a factor that has helped the Stoxx 600 gain more than 8% year-to-date and recent concerns that the Federal Reserve will begin to pare its easing program have weighed on the index. U.S. stocks fell for the first week in five last week on those Fed concerns, though losses were mild owing to an upbeat durable goods report. Read: No easy way out of QE for Fed or BOJ
Gains for Europe came as Japan stocks closed 3.2% lower, after wiping out a 0.9% gain from Friday. Hong Kong stocks rose 0.3%.
The French CAC 40 index FR:PX1 +0.79% gained 0.7% to 3,985.83, helped by Vivendi SA FR:VIV +2.87% and a 1.5% gain for BNP Paribas SA FR:BNP +1.66%
The German DAX 30 index DX:DAX +0.88% rose 0.7% to 8,364.03, as Commerzbank AG DE:CBK +4.62% gained over 4%. The bank was reportedly upgraded by Equinet Bank AG.
In Spain, Banco Santander SA ES:SAN +1.73% SAN -1.13% rose 1.3%. The Polish unit of Santander is eyeing more acquisitions in the next few years as it seeks to become a leader in emerging markets, Chief Executive Officer Mateusz Morawiecki told the Wall Street Journal in an interview.
Shares of Swedbank AB SE:SWEDA +1.07% rose 1%. The country’s central bank said in a report on Monday that Sweden’s banks are financially strong but must continue reducing structural liquidity risks and ensure they have enough capital to deal with potential future losses.
Barbara Kollmeyer is an editor for MarketWatch in Madrid. Follow her on Twitter @MWBarbaraKollmeyer.
The Economist I Selected new articles; May 27, 2013: Getting to know Syria's rebels, revolutionary golf and Chen Guangcheng
|Monday, May 27th 2013|