Source: <a href="https://www.cnbc.com/id/44084009">Mobius: What the China Sponsored Boom in Africa Means For Investors</a>
Africa, once called the lost continent, is beginning to demonstrate its potential. While the continent’s detractors point to poverty, corruption, AIDS and armed conflict, I am encouraged by another side of Africa that is gradually emerging: the development of capital markets, consumerism and technology.
<img loading="lazy" decoding="async" type="image" src="https://image.cnbcfm.com/api/v1/image/40126956-angola_woman.jpg?v=1354732729&amp;w=1910&amp;h=1000" data-licensor-name="Issouf Sanogo | AFP | Getty Images" width="1910" alt="An Angolan woman shops in a market in Cabinda." height="1000"></img>
In fact, I am keeping my eye on the key forces pushing and pulling China into Africa. China now has the world’s largest foreign reserves, exceeding $3 trillion, more than twice that of Japan. Up to now a large portion of these reserves have gone into U.S. government debt but increasingly China is finding it necessary to diversify those reserves given the precarious situation with the U.S. Dollar and U.S. government debt.At the same time, China’s burgeoning economy is demanding more and more natural resources whether it is oil, copper, nickel or gold. Looking further into the future, the demands of China’s more sophisticated diets mean imports of food will have to increase as well.
In both areas, minerals and food, Africa has great promise. It is well known that Africa is rich in a wide variety of minerals from oil to copper. It’s bigger than China, India and the United States. More importantly, Africa has huge resources of water essential for bountiful harvests.China’s attraction to Africa is clear, but Africa is also attracted to China. China is a developing country that has demonstrated a successful growth model. China also has the money to help build Africa’s urgent need for infrastructure.In 2000, the Forum on China-Africa Cooperation (FOCAC) was established to enhance economic and trade cooperation. Trade has expanded rapidly, moving from $12 million in 1950 to over $120 billion now.
China is now Africa’s largest trading partner. Visit any shopping center in any country in Africa and it is clear that China is flooding Africa with consumer goods as well as machinery, automobiles and electronics.
Yet, surprisingly, China has a trade deficit with Africa, importing more than it exports to the continent. 80 percent of Africa’s exports to China are raw materials such as oil, but increasingly, it is also manufactured and agricultural products such as Egyptian oranges, South African wines, and Tunisian olive oil. In order to promote that trade, China has set up bilateral trade agreements with 45 African countries, a number of which now have zero tariff preference with China.In addition to trade, investment from China into Africa has also surged. In the six-year period ended 2009, China’s investment in 49 African countries increased from $490 million to $9.3 billion. China’s Development Bank has created a $1 billion fund to buy equity stakes in African companies and projects. There are plans for the fund to be expanded to $5 billion.China is also promoting economic and trade zones in Zambia, Mauritius, Nigeria, Egypt and Ethiopia. So far over $600 million has been invested in such zones, creating more than 6,000 jobs.
As early as the 1970s, China was helping build infrastructure projects in Africa. Projects included the 1,860-kilometer Tanzania-Zambia railway line and the Cairo International Conference Center. But the number of projects have grown in recent years and the Chinese government has extended preferential loans amounting to over $10 billion to finance airports, housing and hydropower plants.There’s another link that has emerged between the two. From 2000 to 2009, China canceled 312 debts of 35 African countries, totaling 19 billion yuan. That demonstrates China’s determination to help Africa develop.With all this activity, China’s banks have followed. The China Development Bank, Export-Import Bank of China, Industrial and Commercial Bank of China (ICBC), Bank of China (BoC) and China Construction Bank (CCB) are all now active on the continent.Tourism is growing as well, with over 300,000 Chinese tourists visiting Africa each year. African and Chinese airlines have established direct flights between the two.All of this trade and investment is not without its problems. There have been scandals, corruption and disputes. Take for example, the Chinese infrastructure project in Algeria mired in a bribery scandal.There is no denying, though, that capital markets in Africa are developing rapidly. We have been investing in South Africa for many years and its stock market is one of the world’s most sophisticated. In our frontier market funds, we have been active in countries such as Kenya, Ghana and Mauritius. Nigerian companies now constitute the largest portion of the $1 billion that we have in our frontier funds. 
In the last year or so, I’ve traveled to Egypt, Angola, Morocco, Botswana, Ghana, Tunisia and South Africa to evaluate markets and search for attractive investment opportunities on the continent. We expect to expand even further in Africa and to invest in many more countries on the continent. For investors from China, or anywhere else for that matter, seeking high growth and new opportunities, the future is certainly in Africa. Mark Mobius is executive chairman of the Templeton Emerging Markets Team, which manages over $50 billion worth of emerging market assets for Franklin Templeton Investments. The veteran fund manager treks the globe in search of opportunities in emerging markets. Templeton Emerging Markets Group has analysts located in 17 offices throughout emerging markets and Dr. Mobius opened research offices in Romania, Vietnam, Malaysia and Thailand over the last two years. Read more about his globetrotting experiences at his blog http://mobius.blog.franklintempleton.com.

Mobius: What the China Sponsored Boom in Africa Means For Investors

Catherine Boyle
Source: <a href="https://www.cnbc.com/id/44030554">Selloff &#8216;Perception Catching Up With Reality&#8217;: CEO</a>
Thursday&#8217;s market sell-off, which saw a dramatic 500 point fall in the Dow, is just a case of market perception catching up with reality, the chief executive of one of Europe&#8217;s biggest insurers told CNBC Friday.
<img loading="lazy" decoding="async" type="image" src="https://image.cnbcfm.com/api/v1/image/38348204-crystal_ball_businessman_200.jpg?v=1354732729&amp;w=1910&amp;h=1000" data-licensor-name="Fredrik Skold | The Image Bank | Getty Images" width="1910" alt="Businessman with crystal ball" height="1000"></img>
Tidjane Thiam, chief executive of Prudential , said: &#8220;Our fundamental view is that the fiscal deficits created by the crisis will take longer to re-absorb than the market had anticpated.
&#8220;What&#8217;s going on is part of perceptions coming more into line with reality.&#8221;
Julian Roberts, chief executive of asset manager Old Mutual , told CNBC Friday: &#8220;There does seem to be a lack of confidence driving things down.
&#8220;Corporates are delivering good profits, but we have also got this big problem over debt, particularly in Europe, the US and the UK.&#8221;
Both CEOs insisted that their companies are strongly capitalized and well-placed to weather future market storms, as traders braced themselves for another sell-off in Europe and the US on Friday following overnight losses across Asia, while the price of oil headed for its biggest weekly drop since early May.
Their companies are expecting much of their future growth to come from emerging markets rather than Europe and the US.
Prudential only has around 53 million pounds ($86 million) worth of exposure to sovereign debt in Greece, Spain, Portugal and Italy combined, and about 300 million pounds exposed to banks, Thiam said.
&#8220;There was a lot of relief after &#8217;09 and we used that to de-risk our balance sheet and are now in a better position,&#8221; he added.
Since taking over at the company three years ago, Thiam has focused on growth in Southeast Asia, and faced criticism from investors after a failed $35.5 billion bid for AIA&#8217;s Asian business.
Old Mutual, which operates a range of financial services in Southern Africa and holds a majority stake in South African bank Nedbank, is particularly focused on Africa.
&#8220;As in all emerging markets, there&#8217;s a huge amount of growth (in Africa)&#8221;, Roberts said. &#8220;A lot of people have come into the world of having money, and are buying more and more goods and consuming more and more things.&#8221;
African growth is being boosted by its mineral wealth and the importance of many of these resources to China, he added.
Old Mutual announced a 15 percent increase in its first-half profit to 845 million pounds Friday, helped by cost cuts and strong growth at Nedbank, which it tried to sell to HSBC late last year.&nbsp; 
Prudential reported a better-than-expected 25 percent rise in half-year profit to 1.06 billion pounds ($1.72 billion) Friday.
Profits were boosted by strong growth in South-East Asian markets. 
The company continued to grow its asset management business, which contributed £259 million, up 34 percent, to profits in the first half of 2011.
It hiked its half-year dividend 20 percent to 7.95 pence per share.
Positive growth continued in South-East Asia, particularly in the target countries of Indonesia, Malaysia, Vietnam, Philippines, Thailand, and more mature markets Hong Kong and Singapore. India was described as &#8220;challenging&#8221;.

Selloff ‘Perception Catching Up With Reality’: CEO

Antonia Oprita
Source: <a href="https://www.cnbc.com/id/43982866">People Drink in Tough Times? Not True: Diageo CEO</a>
Developing markets will make up half of the world&#8217;s biggest liquor maker&#8217;s revenue in the next three years, as their consumption is rising while in some developed states consumers are suffering, the CEO of Diageo, Paul Walsh, told CNBC on Tuesday.
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In Europe, Germany is doing well and Benelux (Belgium, Netherlands and Luxembourg) is &#8220;fine,&#8221; but Greece and Spain are suffering, Walsh said.
&#8220;In our business, many people joke with me that you&#8217;d think that when times are though people will drink more. Well, that&#8217;s clearly not the case,&#8221; he said.
Emerging markets are doing well, with sub-Saharan Africa providing double-digit growth for Diageo constantly over the past 10 years, Russia doing well and, in South America, Brazil rising, Walsh said.
&#8220;I think also Brazil over the last few years continues to go from strength to strength,&#8221; he said.
But Pedro De Noronha, managing director at Noster Capital, warned of hidden dangers in Brazil.
&#8220;I think Brazil&#8217;s time is now but I think they have a huge issue – their currency is becoming a real issue because Brazil is losing all its competitiveness,&#8221; De Noronha said.
&#8220;If I had earnings coming from Brazil, I&#8217;d be very worried about the potential strength of the real,&#8221; he added.
The US is also a big market for Diageo and a &#8220;two-speed economy&#8221; is emerging there, Walsh said. 
&#8220;You&#8217;re going to certain restaurants [in the US], you can&#8217;t get a reservation,&#8221; he said.

People Drink in Tough Times? Not True: Diageo CEO

Peter Guest
Source: <a href="https://www.cnbc.com/id/43681353">A New Nation: South Sudan Readies for Independence</a>
On Saturday, South Sudan becomes the world&#8217;s newest country and Africa&#8217;s 54th state, a process that follows 50 years of bloodshed. Renewed violence on its borders has shaken hopes of a peaceful transition to nationhood, but the fledgling country is not a failed state in waiting, analysts and senior figures in the reconstruction effort told CNBC.com.
<img loading="lazy" decoding="async" type="image" src="https://image.cnbcfm.com/api/v1/image/43682269-sudan_2_200.jpg?v=1354732729&amp;w=1910&amp;h=1000" data-licensor-name="Spencer Platt" width="1910" alt="JUBA, SUDAN - JANUARY 09: Southern Sudanese celebrate at the end of the first day of voting for the independence referendum January 9, 2011 in Juba, Sudan. Southern Sudan is participating in an independence referendum today following a historic 2005 peace treaty that brought an end to decades of civil war between the Arab north and predominantly Christian and animist south. The south is expected to vote around 99 percent to secede from the north which will also give it a majority of Sudan's oil" height="1000"></img>
The signing of the Comprehensive Peace Agreement (CPA) in 2005 brought an end to a civil war between the ethnically and religiously distinct north and south of Sudan that had raged since before the country won its independence in 1955.
The CPA laid the ground for a referendum on independence in January 2011, in which more than 99 percent of voters backed secession. The declaration of independence will be read in the capital, Juba, at the grave of the liberation hero John Garang.
International actors, particularly the US, Norway and UK, have pumped resources into a state that has oil reserves but few roads, and will be among the poorest nations on earth.
With conflicts over resource sharing still raging with Khartoum, fighting in the border areas of Southern Khordofan and an ongoing dispute over the oil-rich state of Abyei, the governing party – the Sudanese People&#8217;s Liberation Movement (SPLM), composed of former freedom fighters from the Sudan People&#8217;s Liberation Army – faces an uphill struggle to build a new nation.
&#8220;There has never, throughout the history of post-independence Sudan, been effective governance in the south. In many respects state structures in South Sudan are five years old, they&#8217;ve been put in place since the signing of the CPA in 2005, so the baseline was an incredibly poor starting place.&#8221; George Conway, head of programs for the United Nations Development Program in South Sudan since 2007, told CNBC.com.
&#8220;Most civil servants after the signing of the CPA didn&#8217;t have higher education, less than 5 percent of them didn&#8217;t have graduate degrees. Many civil servants were illiterate, they didn&#8217;t speak English, and the state structures were built very rapidly.&#8221;
In that context, Conway said, there has been strong progress, with 32 ministries set up, civil servants trained and a civilian &#8220;surge&#8221; of experts from the region moving in to plug the many gaps in the government&#8217;s capacity. 
The country&#8217;s long civil war took much of the population out of the education system, meaning that capacity in public and private sectors is low, and cannot be quickly rectified, he noted.
&#8220;When you&#8217;ve had a population that&#8217;s been so affected by generations of war, it will take a full generation to get through this and get out of it. It&#8217;s essentially building up a whole generation of civil servants,&#8221; Conway said.
&#8220;South Sudan is in a category all by itself in terms of the challenges,&#8221; Richard Downie, deputy director of the Africa program at the Center for Strategic and International Studies in Washington DC, told CNBC.com.
Among the most pressing of those may be the need to transition the SPLM from a party defined almost entirely by its resistance and opposition to Khartoum into a genuine political party able to oversee the creation of a multi-party system.
&#8220;You look around the region and see other rebel movements that win political power and turn into pretty lousy governments,&#8221; Downie said. &#8220;This is a bunch of rebel leaders used to giving orders, and transparency, accountability, those kinds of skills that are needed when you become a government, they&#8217;re not really in evidence at the moment.&#8221;
The relationship with the government in the north, which has said that it will respect the secession, is also critical.
Sudan produces around 500,000 barrels of oil per day, much of which is produced in the south, but shipped through infrastructure in the north. Like it or not, the two countries have a symbiotic relationship when it comes to their hydrocarbon wealth. Disputes over the state of Abyei, a major producing region that straddles both nations, look set to go on well beyond independence.
Around 97 percent of the south&#8217;s scarce revenues will come from oil.
&#8220;Until such time that Juba can have an alternative pipeline infrastructure, Juba needs to cooperate with Khartoum and the two are dependent on the continuation of that singular resource that writes the budgets for the two countries,&#8221; Stratfor analyst Mark Schroeder wrote in a research note.
There is also the huge challenge of governing the country&#8217;s vast periphery. With few paved roads in an area the size of France, the ability of the government to project power and maintain the rule of law is in question.
Conway acknowledged that there had been &#8220;an overabundance of support that concentrates around urban centers and state capitals,&#8221; but said that the government&#8217;s ability to deal with security concerns and criminality in remote regions was improving.
Even with oil revenues, the new state is economically fragile. Proven oil reserves may not last out the decade, and alternatives need to be found, before international interest in South Sudan – heightened by a variety of factors, from the US government&#8217;s political focus on &#8220;ungoverned spaces&#8221; to celebrity-backed campaigns – runs out, analysts said.
Agriculture is one sector that the government is keen to promote, and South Sudan has large areas of fertile land. However, with the social challenges what they are, fears that another aid dependent nation in a region with many countries still struggling to escape the economic traps of international financing are rising amongst the policy community, CNBC.com understands.
&#8220;It&#8217;s very clear that (South Sudan) is going to depend on its neighbours, the region of the continent and of international partners for some time to come,&#8221; Conway said. &#8220;We&#8217;re seeing some of the worst human development indicators in the world – highest maternal mortality rates, very high poverty rates, very low gross enrolment rates and immunization cover rates, and all of this means that support will be required.
&#8220;The government does need a strategy about how to better work with international partners. And frankly the partners do need better strategies around how to ensure that the government is taking responsibility for service delivery.&#8221;
Even so, Conway added, he is &#8220;broadly optimistic.&#8221;
&#8220;I have seen over the last few years a peace process that has been very resilient. It&#8217;s been challenged at a number of stages and things have always clicked into place, basically at the last moment,&#8221; he said.

A New Nation: South Sudan Readies for Independence

Patrick Allen
Source: <a href="https://www.cnbc.com/id/43558737">Oil-Rich Middle-East Running Low on Gas: Analyst</a>
With half the world&#8217;s known reserves of oil and gas sitting in the fields of Saudi Arabia, Abu Dhabi, Qatar and the rest of the region, not many people think of the Middle East as having problems with energy.
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However, analysts at HSBC said that low, subsidized prices across the region are driving fuel shortages and this means the major producers in the region are going to need to spend huge amountson new refining capacity to meet demand.
They forecast a boom time for suppliers, contractors and retailers.
“Middle Eastern energy consumption growth of about five percent a year is underpinned by subsidized retail prices for electricity and the transport fuels as well as by cheap gas for the chemical and other industries,” John Tottie, an analyst at HSBC in Saudi Arabia, wrote in a research note.
With refining capacity and gas productions not keeping pace with demand, many countries are importing more and more energy despite having huge reserves themselves, Tottie added.
“Saudi Arabia in particular faces a growing shortage of oil products: Without new refining capacity we forecast the Kingdom will import 248 billion liters of gasoline and diesel this decade at a cost of 170 billion dollars,” he said.
Despite Qatar being the world’s third-largest exporterof liquefied natural gas Kuwait started importing LNG in 2009 from as far afield as Australia and Malaysia to meet domestic demand.
“The UAE followed in 2010, even though it was already the world’s tenth-largest importer of pipeline gas in 2009. Iran, too, is seeking higher imports despite having the world&#8217;s second-largest gas reserves. Bahrain is considering an LNG import terminal, and Oman is also seeking higher imports,” said Tottie.
“We believe that the recent unrest in MENA means that few policymakers outside Iran are willing to significantly raise prices,&#8221; he added. &#8220;Yet the increase in imports is a source of unease in a region seeking to capture more of the hydrocarbon value chain and create jobs for a young and growing population.” 
With huge investment needed to access reserves in the region and end imports from outside the Middle East, Tottie sees big opportunities for investors who buy companies that will benefit from this investment.
One stock where Tottie sees the potential for a 36 percent return is Aldrees Petroleum and Transport.
“In our view, leading Saudi fuel retailer Aldrees Petroleum and Transport offers the most direct exposure to high and growing Saudi Arabian oil consumption. We initiate on Aldrees with an Overweight rating and 60 Riyal target, offering 36 percent potential return,” said Tottie.
Another stock Tottie likes is Dana Gas from the UAE.
“We view Dana Gas as well-positioned to capitalize on the region’s growing natural gas shortage and initiate with an 0.82 Dirham target, offering 31 percent potential return, and an Overweight rating,” he wrote.
“Dana has a successful track record in Egypt, growing production at 14 percent pa since 2007. With higher production from the Kurdistan Region of Iraq and the start-up of the Zora field in the UAE we forecast a healthy 23 percent growth rate per annum,” Tottie added.

Oil-Rich Middle-East Running Low on Gas: Analyst

Peter Guest
Source: <a href="https://www.cnbc.com/id/43376658">Helios Closes $900 Million Africa Fund</a>
Private equity firm Helios Investment Partners closed its second Africa-focused fund at $900 million on Monday, as fundraising for the world&#8217;s most under-invested continent rebounds after the financial crisis.
<img loading="lazy" decoding="async" type="image" src="https://image.cnbcfm.com/api/v1/image/40126956-angola_woman.jpg?v=1354732729&amp;w=1910&amp;h=1000" data-licensor-name="Issouf Sanogo | AFP | Getty Images" width="1910" alt="An Angolan woman shops in a market in Cabinda." height="1000"></img>
Helios Investors II L.P. will invest between $25 million to $250 million in a number of deal types, from business formations to leveraged buyouts, and was considerably oversubscribed, the firm said.
The fund&#8217;s focus will be &#8220;businesses that are core to the functioning of African economies, businesses that are leveraged to the domestic growth of those economies, rather than broader global factors, and then sectors that offer us the scope to make large scale investments and build large scale investments across Africa,&#8221; Henry Obi, Helios&#8217; chief operating officer told CNBC.com in an interview.
This is likely to include financial services, power and utilities, fast moving consumer goods and telecommunications, which has been a major driver of investment over the past few years.
Helios will look to build platforms that can expand regionally and build scale, in order to overcome the perennial challenge of exiting private equity deals on the continent, which outside of South Africa and Nigeria has relatively underdeveloped stock exchanges.
&#8220;The reason why we built our platform investments to such a scale is to make them sufficiently attractive for exits on one of the larger stock exchanges, maybe Nigeria, South Africa or even London. That&#8217;s why there&#8217;s a lot of emphasis in our strategies in building up these large scale investments,&#8221; Obi said.
However, he added, the environment is getting easier for exits. &#8220;There is now a growing a pool of domestic capital formation, which makes it attractive for exits in these markets,&#8221; he said.
The fund has made four investments to date, most notably participating in Vitol&#8217;s $1 billion acquisition in February of Shell&#8217;s downstream businesses in Africa.
With investments in financial services on its radar, Helios did initially look at opportunities in the distressed Nigerian banking sector, where several institutions were nationalized and put up for sale by the government.
&#8220;We cast our eye over one of them, but the returns and risk weren&#8217;t sufficiently attractive for us,&#8221; Obi said.
In March, Carlyle Group, a private equity house with more than $106 billion in assets under management, launched its own sub-Saharan African investment group.
Private equity fundraising focused on Africa hit a peak in 2008, with $2.2 billion raised for investment, according to the Emerging Markets Private Equity Association. That fell away to less than $1 billion in 2009, before rebounding to $1.5 billion in 2010. 
While investors have historically shied away from African markets, apart from South Africa or the more industrialized countries north of the Sahara,&nbsp;&nbsp;a decade of nearly uninterrupted economic growth – albeit from a low base – and an improvement in political stability in key regions of the continent have led some to reassess the continent.
With an estimated billion people, a large youth bulge, a wealth of natural resources and increasingly close economic links with China, India and Brazil, some African economies are experiencing sustained improvements in living standards.
In May, data from the African Development Bank showed that Africa&#8217;s consuming class had risen to 300 million individuals, providing a huge opportunity for companies capable of tapping into these often difficult operating environments.
The US retail giant WalMart finally completed a deal for Massmart, a South African retailer with a wider sub-Saharan African footprint, last month, which some analysts have pointed to as a further signal for the region&#8217;s potential.

Helios Closes $900 Million Africa Fund

Guillaume Desjardins
Source: <a href="https://www.cnbc.com/id/43322158">Arab World in 10-20 Year Testing Period: Fund Manager</a>
Investors may be wary of putting their money in the Middle East and the Arab peninsula given the political turmoil which has shaken the region in recent months, but it offers investment opportunities worth considering, one fund manager told CNBC.
<img loading="lazy" decoding="async" type="image" src="https://image.cnbcfm.com/api/v1/image/42225521-cairo_exchange_inside_200.jpg?v=1354732729&amp;w=1910&amp;h=1000" data-licensor-name="CNBC" width="1910" alt="Inside the EgyptStock Exchange just before its reopening." height="1000"></img>
“There are two sides of the Arab world,” Shirish Saraf, the Vice Chairman and CEO of Samena Capital, told CNBC in an interview on Wednesday. “You have the economies of the GCC, which we continue to very much believe in, and the markets in the Levant and Egypt and various other things which are currently under political turmoil.” 
“I do believe there is an inflection point across Middle East. The first one was the Second World War, where boundaries were drawn,” Saraf said, “This is the second one, where it’s going to be about educational reforms, political reforms and social reforms.” 
This situation will turn into a “10 to 20 year testing period… that will translate into every country in the Arab World,” said Saraf, who sees this as an opportunity for his fund, especially in the United Emirates and in Saudi Arabia.
Saudi Arabia is a market no one can ignore because of its purchasing power, Saraf explained, but even though “it is the main market in the Arab world… clearly, it will come with a set of challenges,” he said, referring to the lack of political structure.
Investors in his fund, Saraf said, are looking more and more towards India and China because the environment in their region is unstable.
This is why Saraf believes in “cross-border consolidation” and is launching his second &#8220;special situation fund&#8221; dedicated to long term investments in companies which grow across Middle East, India and Asia, targeting $700 million. The fund already has commitments of $350 million, he said.

Arab World in 10-20 Year Testing Period: Fund Manager

Patrick Allen



Source: <a href="https://www.cnbc.com/id/43040487">Want to Play Emerging Markets? Here Are 10 Stocks</a>



Whether there will be a soft or hard landing in emerging markets as policy makers attempt to push down inflation is one of the biggest investment stories of our time, but analysts at Societe Generale in Paris believe whatever the outcome, investors can benefit from emerging market growth via holding European companies.



“While corporate profit growth remains emerging market driven, exposure to these regions is no longer a positive catalyst for sector performance,” said Claudia Panseri from the European equities strategy team at Socgen in Paris in a research note.



“However, we believe that the combination of peaking US indicators, better-than-expected emerging market news flow and FX fluctuations should reverse this situation and favour the most emerging market exposed sectors.”



“Within our universe, we particularly like stocks in the Machinery, Industrial Conglomerates and Metals &amp; Mining sectors as they all rank highly under our value score,” said Panseri



In order to pick out the stocks you should hold, Panseri and her team set out criteria that helped them isolate a number of stocks from the DJ Stoxx 600 that would benefit from emerging market growth.



Stocks needed to have significant exposure to emerging markets like Asia, Africa, Eastern Europe or Latin America with at least 15 percent of their 2010 sales being made in those markets. Given Panseri’s fears over the US dollar, she also looked for firms that had less exposure to the US than to emerging markets. The stocks also needed to be negative year to date relative to the MSCI Europe Index, be expected to have EPS growth this year and next and have either a buy or hold rating from SG.



<div class="wp-block-query is-layout-flow wp-block-query-is-layout-flow"><ul class="wp-block-post-template is-layout-flow wp-block-post-template-is-layout-flow"><li class="wp-block-post post-415045 post type-post status-publish format-standard has-post-thumbnail hentry category-ceo-interviews category-debates category-videos tag-home">
<h2 class="wp-block-post-title"><a href="https://www.cnbcafrica.com/2022/dell-technologies-highlights-technology-trends-to-watch-out-for-in-2022/" target="_self" >Dell Technologies highlights technology trends to watch out for in 2022</a></h2>

<figure class="alignwide wp-block-post-featured-image"><a href="https://www.cnbcafrica.com/2022/dell-technologies-highlights-technology-trends-to-watch-out-for-in-2022/" target="_self" ><img loading="lazy" decoding="async" width="480" height="360" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/02/hqdefault-6.jpg" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="Dell Technologies highlights technology trends to watch out for in 2022" style="object-fit:cover;" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/02/hqdefault-6.jpg 480w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/hqdefault-6-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/hqdefault-6-120x90.jpg 120w" sizes="auto, (max-width: 480px) 100vw, 480px" /></a></figure>

<div class="wp-block-post-excerpt">This episode of Corporate Access looks at Technology Trends 2022, by Intel and Dell Technologies. Technology continues to be an important pillar connecting the world and transforming healthcare, commerce, education and financial services. Douglas Woolley, Managing Director, South Africa Dell Technologies speaks to CNBC Africa&#8217;s Morwick Pietersen&#8230;. </div>


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<div class="wp-block-post-date"><time datetime="2022-02-02T16:19:43+02:00">February 2, 2022</time></div>
</li><li class="wp-block-post post-619154 post type-post status-publish format-standard has-post-thumbnail hentry category-west-africa tag-featured tag-home">
<h2 class="wp-block-post-title"><a href="https://www.cnbcafrica.com/2025/nigerias-senate-passes-tax-reform-bills-to-boost-government-revenue/" target="_self" >Nigeria&#8217;s Senate passes tax reform bills to boost government revenue</a></h2>

<figure class="alignwide wp-block-post-featured-image"><a href="https://www.cnbcafrica.com/2025/nigerias-senate-passes-tax-reform-bills-to-boost-government-revenue/" target="_self" ><img loading="lazy" decoding="async" width="640" height="427" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/05/P5AVAZCGPNOMLLIH66RYXQU6OI.jpg" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="Nigeria&#8217;s Senate passes tax reform bills to boost government revenue" style="object-fit:cover;" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/05/P5AVAZCGPNOMLLIH66RYXQU6OI.jpg 640w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/P5AVAZCGPNOMLLIH66RYXQU6OI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/P5AVAZCGPNOMLLIH66RYXQU6OI-135x90.jpg 135w" sizes="auto, (max-width: 640px) 100vw, 640px" /></a></figure>

<div class="wp-block-post-excerpt">ABUJA, May 9 (Reuters) &#8211; Nigeria&#8217;s Senate passed four tax reform bills on Friday aimed at boosting government revenue, nearing completion of a plan that has faced criticism and pushback from within President Bola Tinubu&#8217;s ruling All Progressives Congress. After ending costly subsidies and twice devaluing the naira currency in his first year in office, Tinubu has shifted his&hellip; </div>


<hr class="wp-block-separator"/>


<div class="wp-block-post-date"><time datetime="2025-05-09T16:46:10+02:00">May 9, 2025</time></div>
</li></ul></div>



The top ten picks under these criteria in Europe are: Standard Chartered, Anglo American, BHP Billiton, Antofagasta, Bourbon, Holcim, Atlas Copco, Richemont, Hochtief and Inchcape.



Societe Generale does now and seeks to do business with the companies mentioned, while the analyst view accurately reflects her personal views and no part of her compensation is related, directly or indirectly, to the specific recommendations or views expressed in her report.



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