In a censorship battle that Google (NYSE:GOOG) lost to China, Baidu (Nasdaq:BIDU) took advantage of the misguided actions of Google to seize even more share in China and revenue growth to go with it.
Baidu Chief Executive Officer Robin Li said, “We have been gaining traffic share gradually.”
Guidance from Baidu were for revenue in the third quarter to increase 77 percent to $333 million, as it increased customers over the last three months in record numbers.
Earnings for the quarter ending June 30 increased to 837.4 million yuan, or 2.40 yuan for each American depositary receipt. That was up from 383.3 million yuan, or 1.10 yuan for each ADR receipt during the same quarter last year. Analysts had been looking for 710.4 million yuan on average.
Revenue for the quarter stood at 1.9 billion yuan, a big increase over the 1.1 billion yuan in the second quarter of 2009.
Li says the company has over 250,000 customers now, adding 33,000 more in the latest quarter.
Saturday, July 24, 2010
Saturday, July 17, 2010
Russia in Major Deals with Germany's Siemans
In a move to modernize the Russian economy, President Dmitry Medvedev is looking to German engineering giant Siemens.
Partnering with Siemens will be Russian Railways, which they'll work together on 22 railway switching yards throughout the country, and together produce 240 regional trains.
Siemens also landed a wind power deal where they'll install wind turbines in Russia as well.
Most products will be manufactured in Russia, Siemens said.
The deals for Siemens are reportedly worth about $2.8 billion.
Partnering with Siemens will be Russian Railways, which they'll work together on 22 railway switching yards throughout the country, and together produce 240 regional trains.
Siemens also landed a wind power deal where they'll install wind turbines in Russia as well.
Most products will be manufactured in Russia, Siemens said.
The deals for Siemens are reportedly worth about $2.8 billion.
Friday, July 16, 2010
OGX Petroleo and Gas Participacoes (PK:OGXPY) Hits First Dry Well
It finally had to happen for OGX Petroleo & Gas Participacoes (PK:OGXPY), and it has, as the exploration company hit its first dry oil well, after a string of 14 straight successes.
The company, while finding plenty of commercially viable oil, has yet to produce any, and while having a market value of $32.9 billion, is considered a very speculative company.
OGX primarily explores in the Campos Basin, although the miss came in the Santos Basin. The Santos basis in more difficult to read because of the heavy salts on the ocean floor, even though technology has improved a lot in that area, which has contributed to other major oil finds in the region.
The Tupi field, worked by Petrobras, is the largest oil discovery in the Americas in 34 years, and has an estimated 8 billion barrels of oil in it.
According to the company web site of OGX, they will drill a total of 27 wells in 2010, with plans for 79 through 2013.
The company, while finding plenty of commercially viable oil, has yet to produce any, and while having a market value of $32.9 billion, is considered a very speculative company.
OGX primarily explores in the Campos Basin, although the miss came in the Santos Basin. The Santos basis in more difficult to read because of the heavy salts on the ocean floor, even though technology has improved a lot in that area, which has contributed to other major oil finds in the region.
The Tupi field, worked by Petrobras, is the largest oil discovery in the Americas in 34 years, and has an estimated 8 billion barrels of oil in it.
According to the company web site of OGX, they will drill a total of 27 wells in 2010, with plans for 79 through 2013.
Ford (NYSE:F) Moving 4,000 Figo's This Month
With demand growing for the Figo, Ford India (NYSE:F) said their current backlog of 4,000 units will be moved within a month from its Chennai factory.
Since the small automobile was launched in March 2010, the company has received 25,000 orders for units. These 4,000 are the last of those orders to be cleared.
Ford India President and Managing Director Michael Boneham said, "Reaching the 25,000 sales booking milestone in close to 100 days continues the Figo's remarkable rise in popularity among Indian consumers."
Ford India will start a second shift at the plant in response to the surprising popularity, along with hiring another 1,000 workers by the end of 2010.
Other cars they compete with in the segment are Volkswagen's Polo, Maruti Swift, and Hyundai i20.
Since the small automobile was launched in March 2010, the company has received 25,000 orders for units. These 4,000 are the last of those orders to be cleared.
Ford India President and Managing Director Michael Boneham said, "Reaching the 25,000 sales booking milestone in close to 100 days continues the Figo's remarkable rise in popularity among Indian consumers."
Ford India will start a second shift at the plant in response to the surprising popularity, along with hiring another 1,000 workers by the end of 2010.
Other cars they compete with in the segment are Volkswagen's Polo, Maruti Swift, and Hyundai i20.
Thursday, July 15, 2010
Wheat Prices Up on Russian Drought Concerns
Wheat prices continue to rise on concerns over the Russian drought, and the weather in the Midwest which may hammer corn and soybeans to the point of causing significant supply problems.
This has to play out yet, and for now it's just concerns, but if the weather indeed continues as it is, it could cause prices to continue to rise.
Wheat has been pummeled for years because so many nations have been growing their own, and prices have remained down for some time.
Russia said the grain harvest this year will probably be 20 percent less than it was in 2009, declining to 77 million metric tons.
Wheat futures for September delivery grew 29 cents, or 5.2 percent, to $5.88 a bushel at a little after 10:00 AM CDT on the Chicago Board of Trade, after reaching as high as $5.985, the highest price for a most-active contract since the latter part of November 2009.
This has to play out yet, and for now it's just concerns, but if the weather indeed continues as it is, it could cause prices to continue to rise.
Wheat has been pummeled for years because so many nations have been growing their own, and prices have remained down for some time.
Russia said the grain harvest this year will probably be 20 percent less than it was in 2009, declining to 77 million metric tons.
Wheat futures for September delivery grew 29 cents, or 5.2 percent, to $5.88 a bushel at a little after 10:00 AM CDT on the Chicago Board of Trade, after reaching as high as $5.985, the highest price for a most-active contract since the latter part of November 2009.
Saturday, July 10, 2010
Mark Mobius Likes Chinese Equities
Mark Mobius recently said he continues to like Chinese equities, and even if the renminbi goes up some, he doesn't expect it to shoot up quickly, so it shouldn't have a negative impact on Chinese stocks.
Part of the reason is the $800 billion the Chinese government holds in US Treasuries.
"A sharp movement in the renminbi's value in either direction could potentially hurt either party, foreign or Chinese. Domestically, I think the Chinese authorities realise that," Mobius says.
He doesn't think this will be allowed to happen, so maintains his bullish outlook for Chinese stocks.
Part of the reason is the $800 billion the Chinese government holds in US Treasuries.
"A sharp movement in the renminbi's value in either direction could potentially hurt either party, foreign or Chinese. Domestically, I think the Chinese authorities realise that," Mobius says.
He doesn't think this will be allowed to happen, so maintains his bullish outlook for Chinese stocks.
Saturday, July 3, 2010
China Could Double GDP in Next Decade
Some China economic watchers are projecting China's economy to reach $7.5 trillion over the next decade, which would effectively double the size of the middle kingdom in that short period of time.
If this estimate is accurate, China's growth would be larger in GDP than the United States, combined with China's three BRIC counterparts.
There can be no doubt that China will be the economic story of the 21st century, and even with their measures to slow down their urban property markets, they will still grow at a solid pace, one that is much more healthy than it was before.
Now what is waited for is for China to successfully navigate from being primarily an export economy to one balanced with domestic growth and demand as well.
Assuming they do it correctly, they will be poised to extraordinary growth in the years ahead, which will continue to dominate the global economic growth other countries are increasingly relying on.
If this estimate is accurate, China's growth would be larger in GDP than the United States, combined with China's three BRIC counterparts.
There can be no doubt that China will be the economic story of the 21st century, and even with their measures to slow down their urban property markets, they will still grow at a solid pace, one that is much more healthy than it was before.
Now what is waited for is for China to successfully navigate from being primarily an export economy to one balanced with domestic growth and demand as well.
Assuming they do it correctly, they will be poised to extraordinary growth in the years ahead, which will continue to dominate the global economic growth other countries are increasingly relying on.
Tuesday, June 29, 2010
Caterpillar (NYSE:CAT) Investing Big in China, Brazil
China and Brazil have been the recipients of major investments by Caterpillar (NYSE:CAT) in their respective countries, as the giant builder of mining and construction equipment is expanding in major ways in the two countries.
Caterpillar will build a new plant in Brazil, while expanding at a location in China in order to build large excavators.
After focusing on emerging markets at their chief growth regions, Caterpillar is strongly positioned to run with that as departing CEO Jim Owens, who built the foundation in emerging markets slowly and steadily, will hand over the reins of the company to Doug Oberhelman, who will take over on July 1.
Oberhelman looks ready to ramp things up and build upon that foundation much quicker, now that Owens has put it in place.
Caterpillar will build a new plant in Brazil, while expanding at a location in China in order to build large excavators.
After focusing on emerging markets at their chief growth regions, Caterpillar is strongly positioned to run with that as departing CEO Jim Owens, who built the foundation in emerging markets slowly and steadily, will hand over the reins of the company to Doug Oberhelman, who will take over on July 1.
Oberhelman looks ready to ramp things up and build upon that foundation much quicker, now that Owens has put it in place.
Monday, June 14, 2010
Brazil Economy Smokin', Says Morgan Stanley (NYSE:MS)
Morgan Stanley's (NYSE:MS) chief economist in Sao Paulo, Marcelo Carvalho, said the Brazilian economy is growing at a quicker pace than originally anticipated, and has changed the rate from 6.8 percent to a heftier 7.9 percent.
Now that China has started to cool off their economy, especially their urban property markets, the two countries will probably continue to grow at very similar rates, which in the case of China should be more sustainable and healthy for them.
Carvalho said, the Brazil "economy is booming."
For Brazil, this is probably a sign that some commodities are increasing in demand, although that wasn't specifically pointed out.
Now that China has started to cool off their economy, especially their urban property markets, the two countries will probably continue to grow at very similar rates, which in the case of China should be more sustainable and healthy for them.
Carvalho said, the Brazil "economy is booming."
For Brazil, this is probably a sign that some commodities are increasing in demand, although that wasn't specifically pointed out.
Tuesday, June 8, 2010
Morgan Stanley (NYSE:MS) CEO Sees Fast Continuing BRIC Growth
Morgan Stanley (NYSE:MS) CEO John Mack said he sees continual growth for BRIC countries in 2010, unsurprisingly, led by China and India.
Concerning the weakest link of the four countries, Russia, Mack said, "Russia still has a very strong balance sheet and low overall leverage, which remain key advantages for the country. However, it continues to lag in investment due to the volatile macro environment and weak property rights."
Even though growth around the world will probably slow down because of China's fight with inflation from their hot urban property market, no growth in the U.S., and the European sovereign debt crisis.
Regardless of what the growth rates end up being, Mack stated that "Our expectation is that the fastest rates of economic growth this year are expected to be in China, India, Brazil and Russia."
Concerning the weakest link of the four countries, Russia, Mack said, "Russia still has a very strong balance sheet and low overall leverage, which remain key advantages for the country. However, it continues to lag in investment due to the volatile macro environment and weak property rights."
Even though growth around the world will probably slow down because of China's fight with inflation from their hot urban property market, no growth in the U.S., and the European sovereign debt crisis.
Regardless of what the growth rates end up being, Mack stated that "Our expectation is that the fastest rates of economic growth this year are expected to be in China, India, Brazil and Russia."
Friday, May 28, 2010
Mark Mobius Continues Buying BRIC
Mark Mobius, manager of Templeton Asset Management Ltd., says he has continued buying stocks in Brazil, Russia, India and China (BRIC) over the last 30 days, and considers the drop in the market a correction, in what he believes is an ongoing bull market.
Mobius said about BRICs, “Despite the fact that a lot of people think that we are entering into a bear market, we don’t believe so. This is a correction in an ongoing bull market.”
From its April 15 high, the MSCI Emerging Markets Index has plunged 14 percent, the reason many have been running from them.
The European sovereign debt crisis and the challenge China faces with inflation has driven down the emerging markets, and other markets as well, which has in turn cut demand for raw materials, which is what these countries have a huge exposure to.
Mobius said about BRICs, “Despite the fact that a lot of people think that we are entering into a bear market, we don’t believe so. This is a correction in an ongoing bull market.”
From its April 15 high, the MSCI Emerging Markets Index has plunged 14 percent, the reason many have been running from them.
The European sovereign debt crisis and the challenge China faces with inflation has driven down the emerging markets, and other markets as well, which has in turn cut demand for raw materials, which is what these countries have a huge exposure to.
Saturday, April 10, 2010
BRIC Currency Trade Strategy
BRIC Currency Strategy
With confidence in the U.S. dollar waining among a number of countries, Brazil, Russia, India and China, or the BRIC countries are looking for way to increase trade using their own currencies rather than the dollar.
The strategy is to decrease dependence on the U.S. dollar, which is extremely flawed and has a dismal future because of the Federal Reserve and monetary policy of the U.S., which makes it hard to have much confidence in the greenback in the years ahead.
Russia has suggested using a mix of regional currencies as a way to protect against the U.S. dollar and reduce risk in relationship to the volatility of the dollar.
China has experimented with allowing companies located in the Guangdong province to do business using the reminbi with members of the Association of Southeast Asian Nations, Macau and Hong Kong.
With confidence in the U.S. dollar waining among a number of countries, Brazil, Russia, India and China, or the BRIC countries are looking for way to increase trade using their own currencies rather than the dollar.
The strategy is to decrease dependence on the U.S. dollar, which is extremely flawed and has a dismal future because of the Federal Reserve and monetary policy of the U.S., which makes it hard to have much confidence in the greenback in the years ahead.
Russia has suggested using a mix of regional currencies as a way to protect against the U.S. dollar and reduce risk in relationship to the volatility of the dollar.
China has experimented with allowing companies located in the Guangdong province to do business using the reminbi with members of the Association of Southeast Asian Nations, Macau and Hong Kong.
Wednesday, March 10, 2010
Daimler (NYSE:DAI) Sells Stake in Tata
Daimler Sells Tata Stake
With performance of Indian automotive company Tata Motors up, along with its stock price, and Daimler (NYSE:DAI) making significant inroads into the Indian auto market, Daimler decided to divest itself of its stake in the compayn by selling the entirety of the 5.34 percent stake of common shares in the company.
Daimler will enjoy about €300 million from the sale of their shares in Tata Motors. Daimler, just from this, should generate a nice profit on the books for the first quarter.
Together with India, Daimler sees the overall BRIC countries (Brazil, Russia, India and China) as great markets for their products, and the growth region of the future for them, especially in the commercial vehicle market.
Daimler Sells Tata Stake
With performance of Indian automotive company Tata Motors up, along with its stock price, and Daimler (NYSE:DAI) making significant inroads into the Indian auto market, Daimler decided to divest itself of its stake in the compayn by selling the entirety of the 5.34 percent stake of common shares in the company.
Daimler will enjoy about €300 million from the sale of their shares in Tata Motors. Daimler, just from this, should generate a nice profit on the books for the first quarter.
Together with India, Daimler sees the overall BRIC countries (Brazil, Russia, India and China) as great markets for their products, and the growth region of the future for them, especially in the commercial vehicle market.
Daimler Sells Tata Stake
Tuesday, March 9, 2010
BRIC Contact Page
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You can contact any of the authors of Bric Business at
simonsays26@comcast.net. Authors can be fowarded your email if you want to contact one individually.
Gary Thomas
Ellen Stevens
Jim Stevens
Kyle Simon
You can contact any of the authors of Bric Business at
simonsays26@comcast.net. Authors can be fowarded your email if you want to contact one individually.
Gary Thomas
Ellen Stevens
Jim Stevens
Kyle Simon
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