* China’s first aircraft carrier takes to the sea
* China’s trade surplus surges to $31.5bn
* Apple blocks Samsung from selling Galaxy in EU
* Brazilian banker to set up private $1bn fund
* Poland hopes to tap big reserves of shale gas
* Korea bans shorting as state funds aim to buy
* India’s Hero MotoCorp plans global expansion
* Reliance Power to set up wind power project for Rs 15bn
* Indian government not to sell 30% stake in Bharti Hexacom
* Markets, up
China’s first aircraft carrier takes to the sea
China has taken its first aircraft carrier to sea, in a forceful sign of the country’s burgeoning naval power, the FT reports. The vessel, which the People’s Liberation Army purchased as an unfinished hull from Ukraine in 1998, started its first sea trial in the early hours of Wednesday morning, the Ministry of Defence said, after a decade of refurbishing. Chinese military enthusiasts camped out in Dalian, the northeastern Chinese port city where the carrier has undergone repair and refitting, posted what appeared to be genuine photos of the carrier being pushed and towed out of the harbour by four smaller vessels.
China’s trade surplus surges to $31.5bn
China’s trade surplus surged to $31.5bn in July, the highest level in more than two years, as exports rose to a record, Bloomberg reports. Outbound shipments climbed 20.4 per cent from a year earlier, compared with the 17 per cent median forecast in a Bloomberg News survey of 25 economists. Imports climbed 22.9 per cent, the customs bureau said on its website today. The surplus exceeded a median forecast of $27.4bn.
Apple blocks Samsung from selling Galaxy tablet in EU
Apple scored a big victory in its patent infringement battle against Samsung Electronics after a German court barred the Korean firm from temporarily selling its flagship Galaxy tablet in the European Union except the Netherlands, Reuters reports. The court order comes a week after Samsung was forced to delay the Australian launch of its latest Galaxy tablet because of similar lawsuits.
Brazilian banker to set up private $1bn fund
One of Brazil’s most famous bankers is to set up a private $1bn investment fund, underscoring rising confidence in the country’s long-term growth prospects even as the developed world struggles to fend off a fresh financial crisis, the FT reports. Pedro Moreira Salles, chairman of Itaú-Unibanco, one of Latin America’s biggest banks, told the Financial Times that the investment group would be funded by private capital, would only take long-term positions, and could target foreign companies in Brazil. Wealthy individuals in the Latin American country have increasingly put up their own money for new investment vehicles and compliment a growing number of private equity groups, offering local companies a source of much-needed long-term funding.
Poland hopes to tap big reserves of shale gas
Poland is seeking to slash its reliance on Russian energy through exploiting its big reserves of shale gas – natural gas trapped in fragile rock, the FT reports. A British company, 3Legs Resources, has drilled one of Poland’s first shale test wells on Ms Religa’s farm, and says it has encountered “high gas saturations”. 3Legs is one of a host of companies, including ConocoPhillips, ExxonMobil and Chevron, that have joined the Polish rush for shale gas.
Korea bans shorting as state funds aim to buy
South Korea banned equity short sales for three months while the two biggest state-run funds said they may boost investments as the government seeks to shore up a market that’s had its biggest six-day drop in three years, Bloomberg reports. The Financial Services Commission said it will ban short selling on all shares until Nov. 9 from today. The National Pension Service, the country’s biggest investor, said yesterday it plans to buy more stocks this month than it originally targeted. Korea Teachers Pension said it purchased about 70bn won of stocks amid the sell-off and may buy more.
India’s Hero MotoCorp plans global expansion
India’s Hero MotoCorp, the world’s largest producer of motorcycles and scooters, has announced its intention to expand globally, with plans to sell vehicles on three continents and nearly double its unit sales within five years, the FT reports. The company, whose family shareholders bought out its former partner Honda Motorthis year, said it would invest about $1bn to expand internationally in south-east Asia, Africa, and Central and Latin America. Pawan Munjal, the company’s chief executive, said the company would begin by exporting, but was studying “all options”, including local production in other countries.
Reliance Power to set up wind power project for Rs 15bn
Reliance Power plans to invest Rs 15bn to develop a 200MW wind power project at Vashpet in Maharashtra, making it the largest such investment in India by any power generation company at a single location, the Economic Times reports. The project will be developed under a special purpose vehicle of R-Power and can be scaled up to 400 mw. Power generated from the project will be wheeled for distribution in Mumbai by Reliance Infrastructure.
Indian government not to sell 30% stake in Bharti Hexacom
The telecom department has shelved plans to sell the government’s 30 per cent stake in mobile phone company Bharti Hexacom, a subsidiary of Bharti Airtel – the country’s largest telco by customers and revenue, the Economic Times reports. Hexacom offers mobile services in six north-eastern states (excluding Assam) and Rajasthan and has a little over 15m customers. The government owns 30% in Bharti Hexacom through public sector company Telecom Consultants of India (TCIL).
MSCI Emerging Market Index up +2.44% at 992.19
DJIA up +3.98% at 11,240
S&P 500 up +4.74% at 1,173
Bovespa up +5.10% at 51,151
Nikkei 225 up +1.05% at 9,039
Topix up +0.82% at 776.73
Hang Seng up +2.72% at 19,857
Shanghai Composite up +0.91% at 2,549
MSCI Asia ex-Japan up +1.95% at 504.36
S&P CNX Nifty Index up +1.72% at 5,160
€/$ 1.43 (1.44)
$/¥ 76.75 (77.19)
Brent Crude (ICE) up +3.11 at 105.68
Light Crude (Nymex) up +2.98 at 82.28
100 Oz Gold (Comex) up +11.70 at 1,752