2007

Features : Star Of The South

COUNTRY REPORT / BRAZIL

Brazil’s commitment to developing biofuels is paying off handsomely. Investment is flooding in to other areas of the economy, too.


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José Sergio Gabrielli, CEO of Petrobras

For the administration of Brazilian president Luiz Inácio Lula da ...

Emerging Markets : Bovespa Enjoys Ipo Bonanza

BRAZIL

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São Paulo stock exchange

Bovespa Holding, which owns the São Paulo stock exchange, raised nearly $3.7 billion in an IPO that ranks as Latin America’s largest offering this year. Bovespa sold 250 million shares on October 26 ...

Milestones : The Prodigal Oil Producer

ECUADOR


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Correa: Clamping down on the oil industry

After a 15-year absence, Ecuador has rejoined OPEC in a move president Rafael Correa says will allow his country to gain greater access to technical advice and market information. Critics, however, claim ...

Features : Growth Pains

COUNTRY REPORT / CHINA

China’s continuing economic expansion may be a bumpy ride, but the country’s prospects still look remarkably good.


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Reach for the skies: China’s newfound wealth is reflected in its grand plans for Shanghai and beyond ...

Emerging Markets : Bankers Still Bullish On Brazil

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Gol: Planning share buyback

Investment banks say the recent US Fed rate cut, coupled with strong domestic fundamentals, bodes well for Brazilian capital market investors. “Fed easing since mid-August has opened up a new leg of the bull market in ...

Milestones : Venezuela’s Monetary Experiment

VENEZUELA


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Rodrigo Cabezas: New currency will help fight inflation.

Venezuela is gearing up for the introduction of a new currency to replace the bolivar, in circulation since 1879, in a move the Hugo Chávez administration hopes will help curb inflation ...

Features : Growth Pains

COUNTRY REPORT / CHINA


China’s continuing economic expansion may be a bumpy ride, but the country’s prospects still look remarkably good.

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Reach for the skies: China’s newfound wealth is reflected in its grand plans for Shanghai and beyond ...

Milestones : Latin American Markets Ride Out Global Turmoil

LATIN AMERICA


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Lipsky: Sounds a warning.

When the meltdown in US subprime mortgages triggered forecasts of a possible US recession, unleashing global credit and money market volatility, Latin America proved to be relatively insulated from the debacle. Though initially shaken ...

Features : World’s Best Banks

ANNUAL SURVEY / WORLD’S BEST BANKS

features_f01 At a time when the world economic outlook is more uncertain than it has been in years, the banking industry finds itself at the vortex of a financial market storm that originated in subprime ...

Cover Story : Trying Times

THE WORLD BANK

The World Bank’s struggle to redefine its role in a globalized economy has raised a fundamental question: Do we really need a World Bank?


cover_story_01 No sooner had the dust settled after the controversial departure of the ...

Features : Central Banker Report Cards 2007

ANNUAL SURVEY / CENTRAL BANKER REPORT CARDS

features_h00 Individually, many of the world’s leading central bankers seemed to be in disarray after the subprime debacle began to unfold in mid-2007. As a group, though, they acted with remarkably unity. The central ...

Newsmakers : New Leader Details Economic Revival Strategy

JAMAICA


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Golding: Ambitious economic plans.

Newly sworn-in Jamaican prime minister Bruce Golding is seeking ways to kick-start the island’s sluggish economy and tackle mounting social pressures over escalating unemployment and crime rates (his own forecasts predict 1,300 murders ...

Emerging Markets : Quest For Investment Grade Gathers Pace

BRAZIL


Some 50% of respondents to a Merrill Lynch emerging market investor survey in August said they were bullish on Brazil. Reaching a similar conclusion, rival Morgan Stanley predicts Brazilian markets will see further upside, despite recent US market turbulence ...

Newsmakers : The unsinkable mrs. K

Argentina

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Double act: Nestor Kirchner and the presidential hopeful, Mrs. K.

Argentine First Lady and senator Cristina Fernández de Kirchner is poised to replace her husband, President Nestor Kirchner, in the top post in the October 28 election. Although the ...

Emerging Markets : International banks enjoy brazilian boom times

Brazil

Brazil’s strong capital markets recovery and IPO blitz has prompted international investment banks to put the country back on their radars. Lehman Brothers, which exited Brazil in 2003 amid a near market collapse, has reopened its São Paulo ...

Cover Story : A Changing Agenda

Latin America

There is no longer any doubt that Venezuelan president Hugo Chávez’s “Bolivarian Revolution” is having a significant economic and political impact on Latin America. The question now is, Will it last?



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Newsmakers : Multilateral Malaise

LATIN AMERICA


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Hugo Chávez: Wants to see the World Bank out of Latin America

While most media attention on the World Bank recently has focused on a political scandal that could spark the downfall of bank president Paul Wolfowitz, the ...

Emerging Markets : Making The Grade

BRAZIL

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Brazil's agricultural output is helping boost its economy

Brazil moved closer to a coveted investment-grade rating in May as both Standard & Poor’s and Fitch upgraded the sovereign to BB+ from BB. The rating puts it just one ...

Cover Story : A Bumpy Ride

EM SPOTLIGHT - LATIN AMERICA

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Argentina's president Nestor Kirchner faced off against some of the worlds most powerful investors

Latin America has spent the past two decades recovering from the “lost decade” of the 1980s, marked by debt defaults, hyperinflation ...

Emerging Markets : Sharp Growth In M&A Activity

BRAZIL

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Gol: Varig offer takes off at last

Brazil’s IBGE national statistics institute reformulated its methodology for calculating the nation’s GDP in March, prompting a revision of all GDP data going back to 1996. Under the new formula ...

Newsmakers : Chávez Banks On Regional Support

LATIN AMERICA


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Chávez: Extending
credit to other
Latin American
nations

Venezuelan president Hugo Chávez’s dream of creating a South American development bank may be coming true. His finance minister, Rodrigo Cabezas, speaking at the annual meeting of the Inter-American ...

Emerging Markets : Brazil’s Ethanol Wave Fueled By Higher Oil Prices

BRAZIL

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New fields: Increasing
demand for biofuels
is fueling investment
in Brazil's ethanol
sector.

Higher oil prices continue to boost demand for biofuels, making Brazil’s ethanol sector a prime investment target. While annual global ethanol exports total some ...

Newsmakers : In The Hot Seat

COLOMBIA

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Zuluaga: Colombia
will have to live
with a strong
currency

Oscar Iván Zuluaga, who took over as Colombia’s new finance minister in March, faces important challenges ahead. Among these will be the need to guide the nation’s ...

Emerging Markets : Lula Unveils Growth Plan

BRAZIL


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Brazils central bank
is putting the brakes
on interest rate cuts

Having vowed to make economic growth the focus of his second term, Brazilian president Luiz Inácio Lula da Silva unveiled a long-awaited plan to boost the nation’s ...

Features : The Tortilla Factor

Mexico’s newly installed president faces a tough first year in office as he struggles to reconcile his promises with fiscal reality.


Features--cntr_Report Corn tortillas are a basic staple in Mexicans’ diet. But for the administration of the country’s new ...

Milestones : Uncertainty Surrounds Impact Of Second Chávez Term

Venezuela

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Chávez:Re-election
mandate for
nationalization

Encouraged by a strong mandate in the December presidential elections and a booming oil sector windfall that boosted GDP by 10.3% in 2006, Venezuela’s president Hugo Chávez began a new six-year term ...

Emerging Markets : Bond Bonanza

BRAZIL

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Henrique de Campos Meirelles

The Brazilian government continues to take advantage of favorable market conditions to issue real-denominated paper. The sovereign again reopened its real-denominated global bond issue in early December, selling an additional $346 million worth of the ...

2006

Newsmakers : El Comandante’s Comeback

Nicaragua

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Daniel Ortega then …

Former Nicaraguan guerrilla leader Daniel Ortega, one of the most outspoken foes of the US during his first administration in the 1980s, will be sworn in as president in January after a November 5 election win ...

Emerging Markets : Lula Faces Challenging Second Term

Brazil

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A jubilant President
Lula

As Brazilian president Luiz In醕io Lula da Silva begins his second term in office on January 1, following an October 29 run-off victory, analysts are speculating about what the focus of his new administration will ...

Emerging Markets : Robust Economy Fuels Bond Blitz

BRAZIL


The Brazilian government continued to tap global markets, despite questions regarding the outcome of the nation's presidential elections, as investor appetite remained high. The sovereign tapped international markets on October 5, even before the second-round vote, with an ...

Newsmakers : New President Finds Early Days Are Hard

MEXICO


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President-elect
Filipe Calderón

When Mexico’s Electoral Tribunal in September declared Felipe Calderón the official winner of the nation’s hotly contested presidential election, it appeared that it would be smooth sailing until his December 1 inauguration. Instead, it ...

EM Roundup : Surplus Peaks As Trade Boom Continues

BRAZIL

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Guido Mantega: Firm
on growth forecast

Brazil’s trade sector continues to boom despite concerns over an appreciating currency that could make Brazilian products less competitive. Much of the rise has been driven by strong demand for commodities, whose ...

Emerging Markets : Lula Surfs Wave Of Economic Progress

Brazil

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Lula: Frontrunner in election
race

Brazil’s central bank slashed its Selic benchmark interest rate in July to 14.75%, the lowest level since 1986. The cut, the bank’s ninth reduction since last September when the Selic stood ...

Emerging Markets : Trade Slows As Currency Rises

Brazil

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Petrobras: Investing heavily

The rapid appreciation of the Brazilian real against the dollar since last year is sparking concerns in Brasilia, as the situation has already prompted a slowdown in the nation’s oncethriving export sector. May exports hit ...

Newsmakers : Dark Horse Becomes New Frontrunner

Mexico

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Dark horse:Felipe Calderón

Just a year ago, former Mexico City mayor Andrés Manuel López Obrador of the Jopposition PRD party, and a center-left populist, held a firm lead in Mexico’s presidential race. Recent polls, however, show ruling ...

Newsmakers : Government Blamed For Impact Of Rising Energy Prices

United Kingdom


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Whiteside: “Government failed to encourage energy economy”

As oil and energy prices continue to soar, sparking concerns on the world’s stock markets about rising inflation, energy experts in the UK are pointing the finger at the government ...

Milestones : Bolivia Gets Brazil Over A Barrel

BRAZIL/BOLIVIA


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Morales: Driving a hard bargain

Hours after Bolivian president Evo Morales moved to nationalize his country’s gas and oil fields, Brazil’s state-owned Petrobras oil company suspended its Bolivian investment program and blocked funds to expand a ...

Newsmakers : Mantega in the Hot Seat

Brazil

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Guido Mantega:

Reassuring investors

Brazilian finance minister Guido Mantega, sworn in on March 28, is sitting firmly on the proverbial hot seat. His predecessor, Antonio Palocci, was forced to step down amid a corruption scandal. Yet with Palocci credited ...

Milestones : $500 Million Bond Issue Lures Investors

Argentina

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Miceli: Mobbed by investment bankers

Argentina once again lured investors with a new dollar-denominated bond issue in March, marking its second attempt to regain investor support since the sovereign’s completion of a contentious $100 billion debt workout in ...

Newsmakers : Bachelet gets off to confident start

CHILE


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Bachelet: Confident start

Michelle Bachelet, the 54-year-old medical doctor who was sworn in as Chile’s first female president on March 11, is the newest member of Latin America’s growing club of left-wing leaders. However, Bachelet espouses the ...

Features : Country awards: Brazil 2006

Growth expectations


This year’s list of best Brazilian companies is made up mainly of those firms that have taken advantage of the country’s increasing consumer confidence and booming exports. Despite high interest rates and ongoing demands for infrastructure ...

Emerging Markets : Presidential race takes shape

Brazil

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New contender: Geraldo Alckmin

Capital markets were encouraged by the opposition party PSDB’s tapping in March of São Paulo state governor Geraldo Alckmin as its candidate for the October presidential election. Following the announcement, emerging market bond spreads ...

Emerging Markets : Brady bonds buyback bonanza

Brazil


Taking advantage of high international reserves of nearly $57 billion and strong international liquidity, the Brazilian National Treasury launched a program in January to buy back its outstanding Brady bonds as well as other short-term government instruments maturing before ...

Newsmakers : Kirchner’s success confounds his critics

Argentina

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Kirchner: Making new friends

After being regarded as the scourge of the international financial community when he completed the largest-ever sovereign debt restructure—a more than $100 billion deal with somewhat draconian haircuts—Argentine president Nestor Kirchner is redeeming ...

Emerging Markets : Shine Starts To Fade

BRAZIL


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José Serra: Heading for victory?

After a strong economic recovery that produced 4.9% GDP growth in 2004, Brazil’s economy is slowing down. With the presidential election looming in October and President Luiz Inácio Lula da Silva facing ...

Newsmakers : Economy Minister Jumps off Deep End

ARGENTINA


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Felisa Miceli

Just weeks after taking over as Argentina’s new economy minister, Felisa Miceli is already tackling one of the country’s biggest bogeys—inflation. The former head of the state-owned Banco de la Nación says she’ll ...

2005

Emerging Markets : Investment Grade Looms for Brazil

Brazil

Brazil continues to move closer to a coveted investment-grade rating, albeit slowly. In October Moody’s upgraded the sovereign’s foreign currency rating to Ba3 from B1 with a positive outlook, putting it three notches away from the top ...