Kandeo Fund

Art Investment in 2012

admin — Wed, 22 Feb 2012 06:00:57 +0000

A note published by Bloomberg News reports that The Scream, one of the major works by Norwegian painter Edvard Munch, may sell for at least US $80 million at a Sotheby’s auction in New York next May. This 1895 pastel on board is one of four versions of the composition, the only one left in private hands. According to Internet site Compare the Financial Markets 2012 is a good year for making an art investment: “not only did the art market performed better than the equity market in 2011, but it has also gone more mainstream, becoming thus more accessible for investors not familiar with art investments” says a text that offers four tips for investors. On 2011 The Card Players, the painting of Paul Cezanne was bought by the emirate of Qatar for US $250 million, the most ever paid for a work of art.

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Explosive Growth of Micro-Credit in China

admin — Wed, 22 Feb 2012 06:00:39 +0000

A note published by Xinhua, the Chinese press agency, reports that in 2011 China’s micro-credit sector witnessed “an explosive growth”. In a statement published in its website the People’s Bank of China asserted that the number of micro-credit companies rose 63.81% year-on-year to reach 4,282 by the end of December. They extended 193.5 billion Yuan of new loans last year, up from 120.2 billion Yuan one year earlier. The growth of microcredit in China has been possible thanks to new official measures. In December the Central Bank launched a project to optimize credit structure and serve the development of the real economy with more emphasis on small and micro-enterprises.

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A Second Bailout for Greece

admin — Wed, 22 Feb 2012 06:00:07 +0000

On Tuesday morning the finance ministers of the euro zone signed a deal for a second bailout for Greece including US $ 173 billion in new financing. The new deal provides short-term relief but the situation is still complicated considering that Greece’s debt stands as about 160% of the gross domestic product. In a press conference Olli Rehn vice-president of the European commission asserted “It is clear that the Greek economy cannot rely anymore on a large public administration financed by cheap debt, but rather needs to lean on investment both Greek and foreign”. Analysts say that the new deal is not the final step toward stabilizing the euro zone, both the International Monetary Fund and the European Central Bank should provide more support measures.

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Wal-Mart Profits Rise 5.4%

admin — Wed, 22 Feb 2012 06:00:01 +0000

Wal-Mart is the world’s biggest retailer. It runs chains of large department stores and warehouse stores. According to the Forbes Global 2000 list it is the world’s 18th largest public corporation and the biggest private employer in the world with over two million employees. In its quarterly report for the three months to January 31 the company turned in a net income of US $5.2 billion, up 3.4% compared with the same period in the previous year, explains a note published by BBC News. The company’s chief executive Mike Duke said that the company has been cutting prices to tempt the shoppers: “Core customers remain cautious about their finances and they rely on Wal-Mart’s every day low price promise to help them manage through today’s economic challenges.”

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Rousseff Promises Stimuli to Promote Exports

admin — Wed, 22 Feb 2012 06:00:00 +0000

The Brazilian president Dilma Rousseff has said that her government will implement fiscal and credit access measures to stimulate exports and production with the purpose of gaining competitiveness in the context of global crisis. In an official release the Brazilian executive said: “This year we will expand fiscal incentives to domestic production and exports. Credit will be awarded in more adequate conditions to help stimulate innovation, creation of jobs and further measures of trade defense”. Mrs. Rousseff believes that her country’s economy will keep growing: “We are certain that Brazil will be one of the countries in the world stage that will have significant growth rates, in spite of the adverse global conditions”, she asserted.

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Spain: Unions Against Labor Reforms

admin — Tue, 21 Feb 2012 06:00:38 +0000

Last Sunday, in response to labor-market changes announced by the government, Spain’s largest unions carried out mass protests. The demonstrations were the first union protests against the conservative government which took office two months ago. The government argues that the labor reforms will reduce unemployment and give workers more rights, but demonstrators assure that the reforms will further cripple the country. Spain’s unemployment is nearly 23% and its youth unemployment is nearly 50%. More than 5 million people in the country are jobless.

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Moody’s Warning on Financial Institutions

admin — Tue, 21 Feb 2012 06:00:28 +0000

Last Thursday the rating agency Moody’s warned that it may cut the rating of 17 global and 114 European financial institutions. According to the editors of MercoPress, South Atlantic Press Agency, this warning shows that the impact of the euro zone crisis is spreading throughout the global financial system. The banks and securities firms affected by this movement include UBS, Credit Suisse and Morgan Stanley. In a statement the agency said: “Capital markets firms are confronting evolving challenges, such as more fragile funding conditions, wider credit spreads, increased regulatory burdens and more difficult operating conditions”.

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Testing Times for Mexico

admin — Tue, 21 Feb 2012 06:00:19 +0000

BBC news presents a special coverage of Mexico, including financial perspectives. Dr. Nouriel Roubini, professor of International Economics at the Stern School in New York University assures that “Mexico is doing well: low debt, low deficit, low inflation, good growth”. Nevertheless the journalist Will Grant considers that staying unaffected by the problems at home and abroad won’t be easy. The Mexican economy is based on oil, remittances and tourism. Oil revenues looks set to remain strong in 2012, but remittances are falling and the drug violence is putting off both tourists and investors coming to Mexico. Even cliff divers in Acapulco face an uncertain future as tourists stay away.

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Financial Inclusion 2020

admin — Tue, 21 Feb 2012 06:00:12 +0000

Two years ago the Center of Financial Inclusion launched an initiative aimed to accelerate progress to achieve a full financial inclusion around the world by 2020. The project has provided tools to enable institutions to make policy, business and resource allocations that will substantially advance the process. In a new text Larry Reed, director of the Microcredit Summit Campaign analyzes the project and assures that the microfinance industry should better understand the client’s needs, capabilities and aspirations: “With this improved understanding, we will be able to provide the full range of financial services they need and deliver them in a way that makes them easy to understand and utilize”.

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Microfinance Growth Fund Invests in Latin America

admin — Tue, 21 Feb 2012 06:00:00 +0000

Managed by Switzerland’s Blue Orchard Finance, the Microfinance Growth Fund (MiGroF) supports microfinance institutions in Latin America. It closed 2011 with US 85 million in outstanding loans and 23 million in un-invested capital in the region. Its total assets are expected to grow between US 140 million and US 250 million. The majority of investments will go to microfinance institutions in Bolivia, Ecuador, Colombia, Mexico and Peru. Blue Orchard is a Swiss commercial microfinance intermediary that provides loans and invests in the equity of microfinance institutions and microfinance network funds.