Regional News

Medical Innovation Moving To Emerging Economies

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A PricewaterhouseCoopers report indicates that emerging countries like Brazil, India and China are emerging as leaders in medical innovation and may well surpass the U.S.

According to the report, medical technology innovators are more frequently going overseas to “seek clinical data, new-product registration and first revenue.” This may lead to a situation where Americans are the last to receive new medical technology. Emerging markets are quickly becoming “the leading markets for smaller, faster, more affordable devices that enable delivery of care anywhere and help bend the health-care cost curve downward.”

According to the report, the emerging nations are not hindered by “entrenched health-care system infrastructure that seeks to maintain the status quo.” The report’s co-author, a managing director at PwC, Christopher Wasden, said that it is important to “rethink our reimbursement system” to the medical tech industry. This may stimulate companies to stay in America.

GAIL Is Looking To Invest In US Shale Gas Businesses

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Shale-gasIndian state-owned gas marketer GAIL? Ltd is searching to acquire shale gas companies in the US. Gail is prepared to invest approximately $400-500 million. The company has publicized a request for proposals (RFP) from bankers who are able to help it identify targets and to close a deal. The RFP was publicized last month.

GAIL is also prepared to partner with other oil and gas companies for its international shale gas aspirations.

“Acquiring a shale gas asset company in the US would give the company the opportunity and the competence to bid for shale gas assets in India, as and when they come up for auctions,” according to Edelwiess Securities analyst, Niraj Mansingka.

Japanese Banks Target Malaysia and Indonesia

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Japanese banks are focusing on developing lending agreements In Malaysia and Indonesia, the fastest developing economies. Southeast Asia has a large population, a developing infrastructure and a many natural resources. Moody’s, noting Indonesia’s better debt position and it’s healthy economy, has acknowledged Indonesia’s potential by raising its rating.

Therefore, Japanese banks are creating deals with local lenders and are also enlarging their offices to increase their loan business in Malaysia and Indonesia. One of Japan’s largest banks, Sumitomo Mitsui Financial Group, will be expanding its employees in Malaysia from about 30 to approximately 100. In addition, it expects to increase employees in Indonesia from the present level of 200.

Manulife Issues RMB Savings-Iinsurance Plan

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renminbiIn expectation of the increasing value of China’s currency, Manulife is launching several renminbi-based financial/insurance plans in Hong Kong. During the last five years, the RMB has increased twenty five percent against the dollar. Meanwhile, with China’s approval, Hong Kong has become the major offshore center for China’s currency. From January to November 2010, Renminbi deposits increased by 240% to Rmb2.2 trillion which is $32.9 billion.

Manulife’s first plan is a single-premium savings insurance plan which matures in five years and provides capital security and guaranteed returns. The yearly return is 1.8% in renminbi, which will probably increase in Hong Kong dollars if the renminbi’s upward trend continued.

Wang Yu-Ming, of Hong Kong Manulife Asset Management, says that developing foreign renminbi trade is a major priority: “China is anticipating that the renminbi will become one of the world’s future reserve currencies, and that in and of itself should make investors pay attention.”

11 Japanese Stocks Have Been Chosen For Long Term Investment By Mitsubishi UFJ Morgan Stanley Analysts

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Mitsubishi UFJ Morgan Stanley Securities Co., chose Japanese stocks that it predicts will profit in the medium term to long term.
This list includes:

The camera manufacturer Canon Inc., which jumped 26 % in the last six months of 2010; Fanuc Ltd., Japan’s biggest industrial robot manufacturer that advanced 45 % 2010; Dentsu Inc., Japan’s largest advertising company that declared its non-consolidated net sales for December grew by 6.3 % from 2009 to today; Mitsubishi Chemical Holdings Corp., a chemical products manufacturer grew by 40 % last year.

Also on the list are: Denso Corp., an automobile parts manufacturer; Daiwa House Industry Co., a home-building company; FamilyMart Co., which operates a convenience-store chain; Rinnai Corp., which manufactures gas appliances; Asics Corp., which manufactures sporting goods; Nichicon Corp. which manufactures capacitors ; and Nippon Shinyaku Co., a health food and pharmaceuticals maker.

The chief equity strategist for brokerage, Chisato Haganuma, wrote “To invest selectively by looking at medium- and long-term profit for companies is key to increase return on investment in the next few years.”

Korean Shares Fall During Euro Fears

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KOSPISeoul Stocks declined yesterday after Wall Street fell based on fears about European Government debts. Samsung and Hana Financial Group dropped and the Korea Composite Stock Price Index .KS11 (Kospi) fell 0.87 % to 2,062.73 points. Also, on Thursday, the Bank of Korea will review the interest rates. Meanwhile, the chemical industries are still doing well.

A market analyst at Woori Investment & Securities, Lawrence Kim, explained that “Investors have grown a bit cautious now amid growing fears about Portugal. The interest rate decision by Bank of Korea scheduled later this week is also awaited.” Portugal received a temporary breather when the European Central Bank bought up Portugal’s bonds. Meanwhile, market pressure mounted for Lisbon to find an international bailout quickly.

CG Foods Is Looking For Acquisitions In India And Also Plans To Invest Rs.100 Crore In Building Factories.

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Wai-Wai-Noodles1CG Foods, a division of the Cinnovation Group from Singapore, said it will invest Rs.100 crore over the next three years to enlarge its manufacturing capacity in India.

Nirvana Chaudhary, The managing director of CG Foods, said that ‘We plan to set up two new manufacturing plants in India this year and also expand the existing plants. By 2014, we will be investing Rs.100 core in India,’ CG Foods manufactures Wai Wai noodles which is a very popular brand. They plan to build a factory at Rudrapur in Uttarakhand, investing Rs.20 crore next month. At the end of 2011, they plan to build a second plant in Gujarat.

‘We are also looking for acquisition opportunities, especially to expand our business in southern and western parts of India,’ Chaudhary said. In addition, CG Foods is prepared to spend up to RS.1,000 Crore to strengthen its position in India, primarily through acquisitions.

Taiwan Senao To Open A Chain Of 3C Stores in Mainland China with China Unicom

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Taiwan Senaco and China Unicorn (Hong Kong) will construct and operate 22 Senao stores to sell communications equipment and devices in Mainland China. These stores will be constructed in the first three months of 2011 and will be located in three provinces according the president of Senao International.

In the future Senao plans to invite strategic and foreign investors to buy shares in the company. Presently, Senao’s main shareholder is Chunghwa Telecom co.

Pakistan shocked By Salman Taseers Assassination

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Salman Taseer was shot to Death yesterday, apparently by one of his own bodyguards. The suspected Killer explained that his employer was against the Muslim anti-blasphemy law. The law has become controversial since a non-muslim woman, who criticized Mohamed the Muslim prophet, was given the death penalty. Salman Taseer had appealed for her release, causing Muslim religious authorities to label him an apostate, whose punishment is death. A Muslim Holy man has promised a $6,000 bounty reward for whoever murders the women who spoke badly about Mohamed, thereby avenging the name of the prophet and Allah.

Salman Taseer was famous as a person who defended women’s rights and minorities thereby raising the ire of the clerics. The assassination underscores the tensions between the secular and the minorities on one side and the Muslim extremists on the other. This secular religious tension is constantly under the surface and is a destabilizing factor in Pakistan.

New Railway Development Plan Costing $106 Billion Spurs China CSR and CNR in Shanghai

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Chinese-trainDue to the government’s announcement that China will invest 700 Yuan ($106 Billion) in the railroads in 2011, the stocks of China’s two biggest train manufacturers, CSR Corp. and China CNR Corp., shot up in trading on the Shanghai market.

In China there is a trading limit that stocks can only go up by ten percent per day. China CNR reached its ten percent limit and CSR rose 9.8 percent after the Govenment announcement. According to Railway Minister Liu Zhijun, this investment decision is part of China’s plan to expand it railways from 91,000 Kilometers to 120,000 in 5 years. 1.68 billion passengers traveled on the railways in 2011 and freight transports rose to 3.63 billion tons which is 9.3 percent increase. Improving railways will also reduce air pollution and traffic.

In addition, a Shanghai-Beijing high-speed train line will be starting up in June of 2011 at a cost of 220.9 Billion Yuan.