06 - 12 August 2016

From the CEO OF EMIS

When the 2016 Olympic Games were awarded to Rio de Janeiro in 2009, Brazil ticked all the right boxes for the International Olympic Committee. The country was experiencing a sustained period of high economic growth under a popular president and there was a general sense that the country was tackling the issues of poverty and poor infrastructure that had held it back. Just as importantly, Brazilians are famously passionate about sport and no games had been held in Latin America since 1968.

Now that the games are under way, it’s interesting to note how perspectives on Brazil have changed in the intervening years and how the current sporting festival may alter attitudes again. Most reporting on the country in the past seven years has been negative and understandably so. The economy has regressed, the country’s politics has been mired in a seemingly interminable atmosphere of corruption and structural reforms to lift millions out of poverty have stalled. But, as I have noted before, Brazil still has the potential to surprise. There were dire predictions of an Olympics beset by unfinished stadiums, pollution and violence, not to mention disease. So far, minor isolated incidents aside, the country has produced an efficient and impressive spectacle. Brazil may have delivered in time rather than on time but that is still more than the country’s many detractors expected. Olympics in the past have often proved to be more of a burden than a boon for host countries. Perhaps Brazil will buck that trend by using the games as a springboard back to the confidence and optimism that characterised the country in 2009. Talking of springboards, that does beg the question of what was going on with the green pool….?


Guy Dunn
Chief Executive Officer.


P.S. Below are some Olympics-related articles from the EMIS platform in the past week.

THE ECONOMICS BEHIND OLYMPICS

Olympics are not only a revered festival of sports but are also an interesting case study of economics. Countries vie to host the games by investing money and time in preparation, with the expectations that it would bring about growth, development and prestige to the hosting countries.

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TOP CHEF RUNS "SOCIAL GASTRONOMY" PROJECT IN RIO 2016

Restaurant-goers usually pay hundreds of euros to eat the creations of Massimo Bottura, but he will be serving poor Brazilians for free at the Olympics. The 53-year-old Italian modernist chef owns Osteria Francescana in Modena, rated best in the world by Restaurant magazine this year.

IOC STRUGGLING TO AVOID POLITICS IN RIO 2016

Although the peak of Brazil's political turmoil has passed, the country still lives in a battle between those who support Brazil President Dilma Rousseff's impeachment and those who want to keep her as president. The IOC and Rio 2016 organizing committee are making moves to avoid bigger problems during the Olympics.

As of May 2016, there were 19,951 textile enterprises in China. While cotton, linen and wool subsectors are mainly consolidated, the chemical fibre sub-sector is still highly fragmented, with the undisputed leader being Hengli Group. Revenue growth has decreased significantly after years of annual increases, mainly due to the drastic drop in exports, labour costs on the rise, and the economy. However, profits are growing, thanks to the efforts of the government to stimulate the local economy and the sector.

POLAND INSURANCE SECTOR: COVERING ALL BASES

The focus on additional pension savings and the problems with access to public healthcare boost pension and health insurances, while growing affluence of Poles could spark more interest in life and automotive insurance in the longer term.

INDONESIA FOOD SECTOR: OUT WITH THE OLD, IN WITH THE NEW

Indonesia's food industry relies heavily on imports, including raw materials for food preparation, to satisfy the changing tastes of its population, which is both eager to try new foods and loyal to traditional cuisine.

To satisfy Vietnam’s need for renewable energy, foreign investors are investing and partnering with local companies to develop and set up wind farms in the country.

Indonesia is looking to provide products for Sri Lanka’s rail transport. This was discussed during a bilateral meeting between Prime Minister Ranil Wickremesinghe and President Joko Widodo.

Back in 2012, India had explored the idea of a free trade agreement (FTA) with Mexico, but limited trade at that point could not make an FTA workable.

Cuban long steel producer Antillana de Acero plans to raise its crude steel installed capacity to 420,000 mt from 250,000 mt by 2020.

PDVSA & CNPC, the state-run oil companies of Venezuela and China, have teamed up to raise the oil output from the Orinoco oil belt in southeastern Venezuela.

Brazil’s unemployment rate reached 11.3% in June, up from 6.55 at the end of 2014 as Latin America’s largest economy is faced with its worst recession in decades.

The United Arab Emirates's investment company Mubadala and the Qatar Investment Authority have jointly invested some $400 million in shares of Russian uncut diamond miner ALROSA during its recent privatisation.

Almost 60% of Polish parents aged 50 or more help financially their adult children and grandkids, BBJ - Regional Today reported on Friday citing The Millward Brown survey.

Turkey has suggested to link two natural independent gas pipeline projects which will bring via its territory Russian and Azeri natural gas to Europe.

Turkish electricity and engineering company Aksa Energy and Madagascar’s state utility Jirama have teamed to build a 120-MW fuel-oil electricity generation plant.

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Islamic finance assets rose 10% last year to hit $2 trillion, on the back of growth in all sectors: Islamic banking, takaful, outstanding sukuk and net value of Islamic funds.

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Egypt will receive a loan package of $12 billion under a deal that it has agreed with the International Monetary Fund (IMF).

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