Emerging Markets Provide Growth Potential for Global Breweries

 Diageo could be considered a good stock for long-term shareholders. In the past ten years, including the global depression in 2008-2009, Diageo's share price increased from $50.50 per share to more than $129 per share; this marked an annualized gain of 9.83%. Diageo hasn't stopped there, and continues to seek growth initiatives to drive its operating performance in the future.

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Picking Emerging Market Winners

Thanks to the Federal Reserve, the heat will be on emerging-market economies in 2014.  The timing and pace of the Fed’s pullback from its easy-money program has been at the forefront of investors’ minds for months. When the central bank finally does ease off on its stimulus–possible beginning as early as March–it will throw emerging markets into disarray.

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Emerging Market Stocks Gain on Iran Nuclear Deal

Emerging market stocks rose for a second day as oil slid after Iran agreed to limit its nuclear program in exchange for some sanctions relief. India’s rupee and the Turkish lira led gain in developing-nation currencies.  South Korean builders including Samsung Engineering Co. (028050) rallied on expectations some of their construction projects in Iran will resume. The Borsa Istanbul National 100 Index increased to a three-week high, while the S&P BSE Sensex Index added 1.9 percent in Mumbai as lower oil helps cut import costs. 

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Can Emerging Markets Offer Inflation Protection?

As the world's main central banks try to battle the threat of stagnant growth and falling prices by implementing inflationary measures, one option for yield available to investors is emerging market bond plays. However, while some analysts point to the gains to be made in the trade, others warn that the market for emerging market inflation-linked bonds, often called "linkers," is too limited to be worth betting on.

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SABMiller Earnings Growth on Emerging Markets

SABMiller Plc, the world’s second-biggest brewer, reported first-half earnings that exceeded estimates on gains in Latin America and Africa, and said developing markets will continue to drive growth.  So-called organic earnings before interest, taxes and amortization rose 7 percent in the six months through September, the London-based company said today. The median estimate of nine analysts surveyed by Bloomberg was for a 6 percent increase.  Total Ebita gained 4 percent to $3.27 billion, beating the $3.2 billion median estimate. Growth was crimped by the weakness of currencies including the South African rand and Australian dollar.

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Diageo Targets New Rich in Emerging Markets

Diageo Plc, the world’s biggest distiller, said it plans to target a growing group of middle-class and wealthy consumers in emerging markets from India to Brazil even as growth in those economies slows.  The London-based maker of Smirnoff vodka and Johnnie Walker whisky has invested about 3 billion pounds ($4.84 billion) in the last three to four years to buy assets from China to Turkey to help boost its presence abroad, Ivan Menezes, chief executive officer, said today at a meeting with journalists after an investor conference.

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Gameplan for 2014: Buy Europe and Emerging Markets

I’ve got some good news for you and some bad news. We’ll get the bad news out of the way first. Using the ratio of total market cap to GDP, the U.S. equity markets are looking expensive again. This metric — which is one that Warren Buffett himself claims to use as a general gauge of market valuation — suggests that U.S. stocks are priced to return a measly 2.1% per year going forward. The good news, however, is that many of my favorite international markets are priced to generate fantastic returns going forward. Spain — which I wrote about last week — is priced to deliver returns of 11.4%. Singapore is priced to deliver returns of 16.7%.
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Reuters Summit: China to Lead Emerging Market Rebound

HSBC Global Asset Management expects emerging 

markets to play catch-up with stocks in the developed 

world with Chinese shares well positioned to lead the 

rebound, a top strategist at the $419 billion money 

manager said on Monday. Bill Maldonado, the chief 

investment officer in Asia-Pacific for HSBC Global, said 

China's reform agenda has further reinforced his 

confidence about investing in the country. He also favorscheap South Korean shares. 

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Emerging Markets to Lead the Next Decade

Standard Chartered Bank is forecasting average growth of 3.5 percent in global gross domestic product for the 2000-2030 period, well above the 3.0-per-cent rate in the prior 20 years, helped by an expected pick-up in global expansion over the rest of this decade.  The research expects China to lead the way on reform. This could enable its economy to deliver average growth of 7 percent between 2013 and 2020 and, with rebalancing of the structure of its economy already under way for more sustained growth, 5.3 percent for 2021 to 2030.

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Google Mototola Moto G Targets Emerging Markets

Google's Motorola Mobility has unveiled a new smart phone aimed at budget-minded consumers. The 8GB Moto G, which will be rolled out this week in Brazil and some parts of Europe – a wider launch is expected over the next couple months – is set to be offered unlocked for the equivalent of $179. (The 16GB model will sell for $199.) For that price, you'll get a colorful aesthetic inspired by the Moto X, a 4.5-inch HD display, a Qualcomm Snapdragon processor, and the Android 4.3 operating system. 

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GM to Back Emerging Market Thrust

General Motors Co., the Detroit-based car maker that counts China as its biggest market, will open a new headquarters in Singapore to oversee markets including Southeast Asia and India.  The offices will open in the second quarter of 2014 with Stefan Jacoby, an executive vice president, overseeing about 120 employees, the Detroit-based company said in an e-mailed statement. The operation, currently based in Shanghai, will also direct businesses in South Korea, the Middle East, Africa, Australia and New Zealand, according to the statement.

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Don’t Forget About Emerging Markets

With the S&P 500 up 25 percent year to date, emerging markets could provide the next move for investors, Gregg Fisher, president of Gerstein Fisher, said Monday.  "We've just come 9,000 since the bottom of the market in 2009, so I think investors can't help themselves but wonder what will the future be like after this run," he said.  On CNBC's "Halftime Report," Fisher said it's time to look outside the United States.

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Active Emerging Market Strategies Poised To Outperform

In a recent blog, we point out that while common large-cap, small-cap and global benchmarks ranked reasonably high in their respective Morningstar categories over the last three years, over a 15-year period the performance of the indices were unremarkable, and in some cases, poor.

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Emerging Markets Super Cycle Promises Growth

The emerging-markets juggernaut that propelled the globe out of the 2009 recession is taking a pause rather than running out of steam.  That’s the analysis of economists at Standard Chartered Plc, who have updated their 2010 theory that the world economy is in a “super cycle” of historically high economic growth which lasts a generation. It remains on track, they conclude in a Nov. 6 study.

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Return of Cash Sparks Emerging Market Rallies

Cash is returning to emerging markets, sparking big stock rallies and a surge in fundraising as calm in the U.S., combined with low interest rates, spurs global investors to try to juice up returns before the end of the year.

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Emerging Markets IPOs Creep Back in London

Emerging market companies are staging a return on the London Stock Exchange after a quiet year for flotations from developing countries so far.  Dubai-based property group Damac Real Estate Development announced an approximately $500 million initial public offering on the LSE’s main market yesterday, while Chinese e-commerce provider JQW announced a float on Aim, the junior listings venue. A person familiar with the JQW deal said the company would be worth about £140 million.

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Emerging Market Equity Funds Make a Comeback

Emerging market equity funds shone in October, reflecting the recent recovery in stocks from once-battered markets like India, Turkey and Brazil.  Diversified emerging-market stock funds saw total returns of 4.19% in October, according to Morningstar. The funds have been on a tear lately, outperforming U.S. equity mutual funds over the last three months with returns of 6.74%. Three-month returns on various categories of U.S. equity funds range from 2.42% to 6%, according to Morningstar.

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Test Your Emerging Markets IQ

As the world's most advanced economies continue to sputter, investors looking for a brighter picture continue to turn to emerging markets, which are growing faster. Investing in these countries can carry significant risks. Political turmoil, uncertain legal systems that may not favor foreign investors, and currency risk are all possible pitfalls.

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Time to Be Choosy in Emerging Markets

After two difficult years, emerging-market stock funds posted solid gains in the third quarter, raising hope that this once-highflying asset class may be ready to rebound. Yet many strategists and money managers caution investors not to get too excited.

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