Emerging markets infrastructure spending to reach $21.7 trillion

[Sapiens]

http://www.khaleejtimes.com/DisplayA...=business&col=

Emerging markets infrastructure spending to reach $21.7 trillion
BY LUCIA DORE

16 January 2008



DUBAI — Infrastructure spending across emerging markets is expected to reach $21.7 trillion over the next decade, with Asia representing 67 per cent of the total and the Middle East four per cent. Morgan Stanley, who conducted the research, says a boom in infrastructure spending is underway in all emerging markets (EM) — Africa, Middle East, Latin America, Eastern Europe and Asia. The report also makes specific reference to the UAE's Arabtec Holdings.


China and India are expected to dominate this spending with 43 per cent and 13 per cent of total forecast EM infrastructure spending, respectively, for the next 10 years. Russia makes up 10 per cent of the next 10 year's infrastructure spending with Brazil representing 5 per cent and South Africa 1 per cent, alongside the Middle East's 4 per cent, says Morgan Stanley.

One of the key findings from the research is that infrastructure funding is plentiful in most countries, particularly in China and the Middle East, from public and private sector firms. The constraints on delivery are in the availability of contractor services and other human resource and machinery limitations in certain countries, the report notes.

Sovereign wealth funds (SWFs) will also play an important role in funding infrastructure investment cross border between EM countries as well as via investment in local financial institutions or directly in projects in certain cases, Morgan Stanley says.

The researchers also looked closely at four industries — materials, industrials, financials and utilities — and examined 15 sectors - including construction and engineering, roads and rail, transportation infrastructure and real estate management and development. It showed that the number of infrastructure stocks has risen from 87 to 152 over the last five years, a 75 per cent increase. Over the same time, the number of developed market infrastructure stocks has risen by only 12 per cent.

Yah!!! Morgan Stanley is on the ball...bubbles baby, bubbles...

[metalman]

Re: Emerging markets infrastructure spending to reach $21.7 trillion

http://www.khaleejtimes.com/DisplayA...=business&col=



Yah!!! Morgan Stanley is on the ball...bubbles baby, bubbles...

i'll meet your $21 trillion and raise ya... "At global level, 16 trillion USD are thought to be required alone for energy infrastructure investments, and a further 20 trillion USD could be needed for infrastructures in other sectors."

OECD Futures Project on Global Infrastructure Needs

[Rajiv]

Re: Emerging markets infrastructure spending to reach $21.7 trillion

http://www.khaleejtimes.com/DisplayA...=business&col=

Infrastructure spending across emerging markets is expected to reach $21.7 trillion
.
.

China and India are expected to dominate this spending with 43 per cent

How will they do this if food supplies reduce -- you cannot eat printed money!

[Sapiens]

Re: Emerging markets infrastructure spending to reach $21.7 trillion

How will they do this if food supplies reduce -- you cannot eat printed money!

Oh come on Rajiv, don't bust our bubble.

Metalman, I'm looking, I'm looking...

[zoog]

Re: Emerging markets infrastructure spending to reach $21.7 trillion

From Marketwatch

NEW YORK (MarketWatch) -- General Electric Co. said Friday that solid demand for its aviation, oil and gas and transportation equipment helped lift its fourth-quarter profit 4%, with steady overseas growth so far showing no sign of abating in 2008 evens as the U.S. economy cools off.

Infrastructure, which makes up 40% of GE's total earnings, grew its profit by 26% in the fourth quarter as customers snatched up locomotives, gas and oil equipment, jet engines, and wind turbines.

"Global and infrastructure markets remain strong...there is a need for power, there is a need for planes, and there's just no signs that this global infrastructure boom is slowing at all," said Chief Executive Jeff Immelt on a post-earnings call.

Large projects in emerging market remain well funded, even with continued volatility in the financial markets and so far offsetting a cooling U.S. economy with its tough housing market and slower consumer spending, Immelt said.

[DemonD]

Re: Emerging markets infrastructure spending to reach $21.7 trillion

GE is one of the best bets for infrastructure if you believe infrastructure outlays will be growing significantly.

[bill]

Re: Emerging markets infrastructure spending to reach $21.7 trillion

GE is one of the best bets for infrastructure if you believe infrastructure outlays will be growing significantly.

GE power:

http://www.bloomberg.com/apps/news?p...Gg&refer=japan

GE Plans Partnerships With Uranium Miners for Nuclear (Update4)

By Lars Paulsson
Jan. 17 (Bloomberg) -- General Electric Co., the world's biggest maker of power-generation equipment, plans to form partnerships with uranium companies to develop its nuclear business and improve access to the fuel that runs reactors.
GE's atomic unit is holding talks with ``several miners, millers and converters'' to find partners after agreeing last year to use a new technology from Australia's Silex Systems Ltd. to expand into fuel enrichment, said Andrew White, chief executive officer of GE Nuclear in Wilmington, North Carolina.
``We're in serious conversations, and I think we will do something in the first half of this year,'' White said today in an interview in London. He wouldn't name the companies, citing confidentiality agreements. ``Obviously, if we're going into enrichment, we need the feedstock.''
General Electric, competing with companies including Areva SA, the world's biggest builder of reactors, and Toshiba Corp.'s Westinghouse Electric Co., is developing its nuclear business into a more integrated company with reactors, servicing and fuel supply, to some extent mirroring France's Areva.
``Any good customer we're willing to get into bed with,'' said Peter Farmer, chief executive officer of Denison Mines Corp., a Toronto-based uranium miner, who wouldn't say whether his company is in specific discussions. ``In our case, it just makes sense to offset some of the risk of going into a new mine.''
Potential Partners
General Electric may be talking with Cameco Corp., Areva or ConverDyn, the only uranium converter in the U.S., Max Layton, an analyst with Macquarie Bank Ltd. in London, said today in a telephone interview. They are the main Western producers, he said. Converters refine the uranium by turning it into a gas before it's enriched.
``Utilities usually want a large number of options and with this GE is increasing the uranium-supply options,'' said Ossi Koskivirta, nuclear-fuel purchasing manager with Finnish utility Fortum Oyj, which operates two atomic power plants in the Nordic country.
Power generators usually buy uranium themselves, and hire others to enrich and process it into fuel. GE's ability to guarantee supplies of the radioactive metal would add an ``alternative,'' making the company's sales pitch for reactors more comprehensive, especially for first-time buyers, Koskivirta said.
`More Involved'
``We're getting more involved in the total cycle now than we ever have been,'' GE's White said. ``Some of what Areva is doing I think you'll see us do, but we probably won't get into mining ourselves.''
General Electric fell $1.35, or 3.9 percent, to $33.21 at 4 p.m. in New York Stock Exchange composite trading. The shares have declined 10 percent this year.
Areva, based in Paris and majority-owned by the French government, has its own uranium-exploration business. Julien Duperray, an Areva spokesman, wasn't immediately available for comment.
Canada is the world's biggest producer of the fuel, followed by Australia. Cameco, the largest uranium mining company, declined to comment on whether it was in talks with GE.

[jk]

Re: Emerging markets infrastructure spending to reach $21.7 trillion

the problem with ge is that it's a financial in drag - ge capital is half the business.

[GRG55]

Re: Emerging markets infrastructure spending to reach $21.7 trillion

the problem with ge is that it's a financial in drag - ge capital is half the business.

...And GE's common share price performance over the past 6 months shows the market doesn't like this either...