NIBs 2

Emerging Markets

• Ethiopian Prime Minister Meles Zenawi said, in an interview with the FT , that the neo-liberal model had failed and that a strong, developmental state – in order to correct market failures -- was what countries like Ethiopia needed. Although Mr Zenawi has liberalized agricultural markets, he has been reluctant to privatize airlines or telecommunications. (William Wallis, Financial Times, Feb. 6, p.5)

Energy

• China and the UN are planning to establish the developing world’s first carbon trading exchange in Beijing, in order to compete with existing private sector exchanges in Europe and the US on which nearly $ 3 bln in carbon credits from developing countries were traded during the first three quarters of 2006. (Mure Dickey & Fiona Harvey, FT, Feb.6, p.1)

• Norway’s offshore oil drilling have become increasingly alluring as European countries grow increasingly concerned about the continent’s dependency on Russian gas and the erratic flow over the past year through Ukraine. Though most do not realize it, Norway is the world’s third largest exporter of oil and gas. (David Ibison, FT, Feb. 6, p.13)

Islamic Finance

• London has become the world’s first secondary market for trading sharia-compliant bonds (called sukuk) which are structured to pay profits from an underlying business rather than from interest banned under Islamic law (the creation of money from money is considered sinful). (David Oakley & Gillian Tett, FT, Feb.6, p.3)