Brics economies ‘face another tough year’
The Brics economies of Brazil, Russia, India, China and South Africa were not going to crash, but were facing another difficult year, Standard Bank economist Jeremy Stevens said yesterday. “The Brics had a challenging 2013 and will have a challenging 2014,” he said, speaking via video link from Beijing. “The situation is not dire… [but] there is a lot of work on the table for the leadership.” The biggest threat for the Brics bloc was coming from within because of China’s slowdown. Since 2008 gross domestic product growth had been the key focus for Chinese policymakers. However, balance sheets had not been scrutinised carefully enough, Stevens said. Last year there was surging corporate debt in China. “As long as they (companies) are running and operating,they can continue to borrow.” But cash flow was diminishing , he said. – Sapa
Dubai-based Arqaam joins JSE
Dubai-based Arqaam Capital yesterday became the first Middle Eastern brokerage to join the JSE, from where it plans to expand coverage of African stock markets as demand for fast-growing frontier assets hots up. The emerging markets investment bank covered 42 African companies and planned to increase that to 125 firms by the end of the year, chief executive Riad Meliti said. – Reuters