Emerging Markets Daily - July 12
Cuban Protests, Tech Co's Buy Vaccines for Taiwan, Chinese Investors and India Tech, Oman Leader in Rare Saudi Visit, India's Flipkart Raises $3.6 Billion
The Top 5 Emerging Markets Stories from Global Media - July 12
Cuban Protests Demand Freedom, Food, Covid-19 Vaccines
Miami Herald
“In an unprecedented display of anger and frustration, thousands of people took to the streets Sunday in cities and towns across Cuba, including Havana, to call for the end of the decades-old dictatorship and demand food and vaccines, as shortages of basic necessities have reached crisis proportions and COVID-19 cases have soared.”
“…During the day, protests erupted in several cities, including the island’s biggest -- Havana, Santiago, Santa Clara, Matanzas, Cienfuegos and Holguín -- but also in smaller towns like Palma Soriano, Cárdenas, Colón, Guira de Melena, Artemisa and others. Inventario, a website specializing in Cuban data, tracked at least 25 protests in different locations throughout the island.”
“…Last time Cubans took to the streets to protest against the communist government was in 1994 and Fidel Castro was alive. But the uprising, known as the Maleconazo, only took place in Havana and didn’t last long, as the former Cuban leader quickly turned the demonstrations into a massive exodus after he opened Cuba’s maritime borders. Thousands of Cubans left the island in makeshift boats and rickety rafts, in what became known as the balsero crisis.” Adrianna Brasileiro and Nora Gamez Torres report
Tech Companies to Buy Covid-19 Vaccines on Behalf of Taiwan
Nikkei Asia
“Foxconn and Taiwan Semiconductor Manufacturing Co. said on Monday morning they have signed $350 million worth of contracts to buy coronavirus vaccines from a Chinese distributor to help the government ramp up its inoculation drive amid a surge in local cases.”
“The top two Taiwanese companies by market cap said they will spend up to $175 million each to buy 10 million BioNTech vaccines that they will then donate to the government, according to stock exchange filings. TSMC is the world's most valuable chip company, while Foxconn, which formally trades as Hon Hai Precision Industry, is the world's largest contract electronics manufacturer and a major iPhone assembler.”
“This marks the first deal by private companies to purchase vaccines since Taiwanese officials accused China of interfering in the government's procurement of jabs. Beijing, which views the island as part of its territory, denies the accusation.” Lauly Li and Cheng Ting-Fang report
Chinese Investors Miss out on Record Year for Indian Tech Fundraising
Financial Times
“Chinese investors have effectively been cut out of India’s tech sector, leaving the field clear for US and European venture capitalists in what is shaping up to be a record year of fundraising for the country’s start-ups.”
“Indian start-ups raised a record $7.2bn across 336 funding rounds in the quarter ended June, according to data provider Tracxn. Of those, Chinese investors participated in only 10 rounds, worth a total $745m. US investors, by contrast, participated in more than 100 rounds worth $5.7bn.”
“While tech giants such as Alibaba and Tencent were previously among the most influential investors in India’s fast-growing start-up scene, they have been largely sidelined by regulation introduced last year in response to rising tensions between India and China.” Benjamin Parkin and Mercedes Ruehl report
Oman Leader’s Rare Saudi Arabia Visit Shows Region’s Shifts
Bloomberg
“The sultan of Oman landed in Saudi Arabia on Sunday in the first visit by an Omani leader in over a decade, a sign of shifting alliances in the Persian Gulf as the kingdom reaches out to states with closer ties to regional rival Iran.”
“Skyscrapers in the Saudi capital, Riyadh, were lit up in red and green, the colors of the Omani flag, to celebrate Sultan Haitham bin Tariq’s arrival. The visit to the city of Neom, where he was greeted by Saudi Arabia’s de facto ruler, Crown Prince Mohammed bin Salman, coincides with the opening of the first-ever land crossing connecting the countries as Oman tries to diversify trade routes.”
“The Saudi cabinet also authorized officials to prepare and sign draft agreements with Oman in a slew of fields including commerce, culture, investment promotion and post and transport.” Vivian Nereim and Donna Abu-Nasr report
India’s Ecommerce Giant Flipkart Raises $3.6 Billion in Fresh Funds
CNBC
“India’s e-commerce giant Flipkart said Monday it raised $3.6 billion in fresh funds from a number of global investors including sovereign funds, private equity and crossovers as well as from its parent company, Walmart.”
“The new round of funding was led by Singapore sovereign wealth fund GIC, the Canada Pension Plan Investment Board, SoftBank Vision Fund 2 and Walmart. It also included investments from sovereign funds like Qatar Investment Authority, Malaysia’s Khazanah Nasional Berhad and DisruptAD, the venture arm of the Abu Dhabi sovereign fund, ADQ.”
“SoftBank had previously sold its Flipkart stake to Walmart in 2018 and its return comes at a time when reports suggest the Indian firm is exploring potential listing options. Flipkart now has a post-money valuation of $37.6 billion, according to the company’s release.” Saheli Roy Choudhury reports
