A council-owned property investment company's plans to increase its annual income is due to be debated by two councils next week.Babergh and Mid Suffolk District Councils will consider their joint-owned company CIFCO's business plan at meetings on Tuesday and Thursday respectively.The plan will form the basis of the company's trading over the next 12 months - including the investment of a further £50million agreed by both councils in February.CIFCO was formed in 2017 to generate income from property investment and plough it back into council services.The 2019/20 business model describes a 'strong first full year of trading' but the company's chairman Chris Haworth admits that there are further challenges to be faced.“This year has presented a number of challenges, in particular the disruption in the retail sector and the growth in the warehouse sector, driven by the expansion of on-line shopping," he said."This has meant that the board has had to consider acquisitions very … [Read more...] about Councils to discuss property investment company’s future plans
Genesis emerging markets investment company
ENERGY PRODUCERS have long had India over a barrel. The country is the third-largest oil importer in the world, yet its pipeline density is a quarter of the global average. It aims to add 15,000km to the network by 2022, awarding projects through strict online tenders. The few groups able to qualify can hope for sweet profits—if they can first find financing. This is at last becoming easier. In emerging markets, a new breed of lenders has begun acting as credit supermarkets, offering anything from working capital to multi-year debt. They look and quack like banks—but are in fact buy-out firms investing mostly rich-world money. As demand for financing surges in fast-growing countries, they will proliferate, argues Kanchan Jain of Baring Private Equity Asia. Her firm is nearing a four-year debt investment in a business that lays pipes in India. Get our daily newsletter Upgrade your inbox and get our Daily Dispatch and Editor's Picks. Their surge reflects investors’ … [Read more...] about Buy-out firms are the new banks in emerging markets
The investment proposition for emerging markets is simple: they are where the growth is. Over time, that proposition has delivered. Stocks in the MSCI Emerging Market index, a widely-followed benchmark, have delivered twice the returns over the past 30 years of the equivalent index for developed-market stocks, the MSCI World.But the EM story is now under scrutiny. The intensifying trade war between the US and China has shone a light on a worrying long-term trend: the forces of global growth that boosted so many emerging economies — trade, supply chains and the commodities supercycle — are petering out, leaving the developing world in search of a new growth model.“More and more, there is a discussion that the growth story for emerging markets is just over,” says Robin Brooks, chief economist at the Institute of International Finance, an industry body. “There is no growth premium to be had any more.”The struggle for many emerging economies to recreate … [Read more...] about The great emerging-market growth story is unravelling
The owner of Club Med is hoping to take over the travel company Thomas Cook. The original Thomas Cook company was set up in the 19th century in the East Midlands, by entrepreneur and cabinet maker Thomas Cook, who wanted to organise rail trips between Leicester, Derby, Nottingham and Birmingham for members of the anti-alcohol temperance movement. In it’s current form, Thomas Cook Group employs more than 21,000 people around the world. The company has been struggling recently and last month it announced further job cuts after a fall in its share price. Now Chinese investment company Fosun International Ltd, which owns Club Med and is currently the largest Thomas Cook shareholder, is looking to take over the 178-year-old company. MirrorOnline reported that an offer had been received and quoted Thomas Cook Group stating that it was “in discussions with Fosun following receipt of a preliminary approach”. The company added: "There can be no certainty that this approach … [Read more...] about Chinese investment company looks at buying Thomas Cook
You know there’s an underlying problem when investment firms start to cut exposure to a particular asset class. Goldman Sachs’ decision last week to slash exposure to emerging markets is an indication of the current situation for these economies. The bank’s asset management arm said that it had scaled back its “overweight” exposure to emerging market currencies and debt amid rising trade tensions between the US and China. Emerging markets are bearing the brunt of an escalating trade war between the world’s two largest economies, and there is no way to be certain when this will end. Last week was the worst for emerging market currencies since the Turkish lira crisis last summer. The Chinese yuan has lost nearly three per cent of its value against the US dollar since 5 May – the day that President Donald Trump tweeted about new tariffs on the country. This rout seems to be spreading to other countries, with MSCI’s index of emerging market … [Read more...] about Are emerging markets ready to fight back?