News In Brief (NIBs) 1

China

• China launched its first navigation satellite on Saturday as part of the country’s continuing plans to develop a global positioning system that will rival the US’s GPS and Europe’s Galileo systems. (Mure Dickie, Financial Times, Feb.5, p.6).
  

• Cheap investments in Africa have resulted in a flood of cheap Chinese labour and products, sparking resentment and anger among locals in places like Zambia and opening the Chinese government to accusations of exploitation and neo-colonialism. (Chris McGreal, Guardian, Feb.5, p. 21).

Emerging Markets

• The German government is expected to propose at a meeting of finance ministers and central bankers an initiative to strengthen the bond markets of emerging markets, which are seen as cushions against financial shocks and swings in exchange rates. (Ralph Atkin et al, FT, Feb.5, p.8).

Energy

• The sudden consensus on climate change of late raises concerns that the “clamour for action will stifle debate about solutions.” Ill-conceived regulations must be avoided in order not to stifle growth. (Rick Haythornthwaite, FT, Feb.5, p.17).

• French energy group Total, the world’s fifth-largest listed international energy group, is expected to diversify into nuclear power under the leadership of incoming CEO, Christophe de Margerie. Officials point to opportunities like China’s planned construction of 30 new reactors worth $50 bln before 2020. (Carola Hoyos & Rebecca Bream, FT, Feb.5, p.24).

Middle East

• Goldman Sachs has signed a strategic co-operation agreement with the state-owned National Commercial Bank (NCB), Saudi Arabia’s biggest lender. Goldman will take a minority stake in NCB and thus becomes the latest US investment bank to look to the oil-rich Middle East. (Peter Thal Larsen, FT, Feb.5, p.23).

• Dubai increasingly symbolizes the changes, transformation and financial revolution that is hitting the Arab world. The country’s small size, its lack of an ethnic, linguistic, religious or political majority, and its reliance on an expatriate workforce make it the ideal society that capitalism built. (Faisal Devji, FT, Feb.5, p.17).