Emerging Markets Daily - June 14
Japan's Big Hydrogen Bet, Vietnam and Kazakhstan Investment Opportunities, Netanyahu Out, Chinese Ride-Hailing Didi Seeks NY IPO, Whither Cambodia Oil?
The Top 5 Emerging Markets Stories from Global Media - June 14
How Japan’s Big Bet on Hydrogen Could Revolutionize the Energy Market
The Wall Street Journal
“Japan built the world’s third-largest economy on an industrial base powered by imported oil, gas and coal.”
“Now, it is planning to shift a big chunk of that power to hydrogen, in one of the world’s biggest bets on an energy source long dismissed as too costly and inefficient to be realistic.”
“The change is a vital piece of the country’s plan to eliminate carbon emissions in 30 years. If it succeeds, it could also lay the groundwork for a global supply chain that would finally let hydrogen come into its own as an energy source and further sideline oil and coal—similar to the way the country pioneered liquefied natural gas in the 1970s, some experts say.”
“…The world’s first liquefied hydrogen carrier—a 380-foot vessel bearing the letters “LH2” in blue and black—sits at the port of Kobe in southwest Japan, preparing for its trial run to Australia, around 5,600 miles away.” Phred Dvorak reports
Why Vietnam and Kazakhstan Stand out as Investment Opportunities
International Investment
“Save for China and a handful of Southeast Asian countries - seen as some of the ‘winners' of the crisis - emerging nations are expected to suffer more from the lockdowns and slow administration of vaccines, and will take longer to return to their pre-crisis levels.”
“But the reality is that if you look further afield within the emerging universe, there are some countries that have not only weathered the storm but are also benefitting from structural growth stories that have been years in the making. China has not been the only growth story in the region: Vietnam and Kazakhstan are two standout cases that deserve investors' attention.”
“With strong economic footing, strategic geographical positioning, and nascent capital markets, these two economies in particular are the perfect destinations for investors looking to tap into early-stage, long-term growth. Let us first consider the macroeconomic backdrop.” Mark Battersby reports
Geopolitics: Netanyahu Out, Bennett in as Israel Marks End of an Era
Reuters
“Benjamin Netanyahu’s record 12-year run as Israel’s prime minister ended on Sunday with parliament approving a new ‘government of change’ led by nationalist Naftali Bennett, an improbable scenario few Israelis once could have imagined.”
“But the razor-thin 60-59 vote of confidence in a coalition of left-wing, centrist, right-wing and Arab parties with little in common except a desire to unseat Netanyahu, only underscored its likely fragility.” Jeffrey Heller and Maayan Lubell report
Chinese Ride-Hailing App Didi Files for New York Listing
The Jakarta Post / AFP
“Ride-hailing giant Didi Chuxing has filed to list its shares in New York, a high-profile move by a Chinese tech firm in the United States despite soaring tensions between the superpowers, with reports saying it could be one of the biggest IPOs this year.”
“The popular app has dominated the Chinese market ride-hailing market ever since it won a costly turf war against US titan Uber in 2016 and took over its local unit.” The Jakarta Post / AFP report
What Next for Cambodia's Oil Dream after KrisEnergy Collapse?
Nikkei Asia
“Encased in a teardrop of glass fixed to an elaborately decorated gold-colored pedestal, Cambodia's first drops of oil were memorialized at a ceremony on Wednesday, six months after being extracted from beneath the Gulf of Thailand.”
“Presided over by Cambodia's ministers for energy and defense, the long-planned event praised Prime Minister Hun Sen, to whom ultimate credit was given for realizing the country's decadeslong ambitions to pump petroleum.”
“The timing could hardly have been worse. Less than a week earlier, KrisEnergy, the company operating Cambodia's first and only active oil field, announced it could not pay its debts and would be liquidated.” Shaun Turton reports
What we’re also reading…
South Korean Bishop becomes Vatican Prefect
Korea Times
“Pope Francis has appointed Lazarus You Heung-sik, currently Bishop of Daejeon, Prefect of the Congregation for the Clergy on Friday while conferring on him the title of Archbishop-Bishop Emeritus of Daejeon. He is the first South Korean to assume the position and the second Asian to do so after Jose Tomas Sanchez, a Filipino cardinal of the Roman Catholic Church.”
“…It is largely seen as a strategic move on the part of the Vatican to target a broader range of regions, especially in Asia, and thus to increase the number of followers there.” Park Ji-won reports