Central Illinois Business Magazine
NOT SO FAST          October 2013

Exporting Strength


It's becoming clear what separates winners from losers in emerging-market stocks.

On the winning side are exporting countries; on the losing, net importers. Although investors generally lump emerging-market stocks together as a high-risk investment with potentially higher rewards, the two groups have emerged since late June. That's when countries that export more than they import began to climb, while net importers continued to struggle. Both fell earlier this summer on worries about slowing economic growth and a pullback in stimulus by the Federal Reserve.

Stocks from export-heavy South Korea, for example, are down 1 percent this year in U.S. dollar terms, after being down 19 percent in late June. The country's big exporters like Samsung and Hyundai are benefiting from stronger demand from U.S. customers and from a recovering Europe. China, Russia and other big exporters have likewise seen their markets rise.

But net importers like India and Indonesia continue to struggle because their industries don't generate as much revenue from developed economies. They're also feeling more pain due to expectations that the Fed will slow its bond-buying stimulus program, says S&P Capital IQ strategist Alec Young, which is causing U.S. interest rates to rise. Higher U.S. rates would mean less foreign investment flowing in, which India and others have used to cover their trade gaps.



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Youth, et al

By Bridget Broihahn

The June/July CIB started out as a “Youth in Business” issue. However, when reporting ensues, oftentimes, it evolves into its own entity. My initial article of the popular Pens-to-Lens Competition evolved as Brett Hays shared the big announcement that Shatterglass Studios had for our area. I was star struck when I realized that Champaign County may just be the next “Hollywood Chambana,” or as Habeeb Habeeb put it: “...a film oasis in the Midwest.” How exciting for our area, not only because it’s the art of filmmaking that is involved, but, also because it’s the opportunity for economic development right here in Champaign County. I cannot think of a better place.

Economic development is certainly the key to prosperity in a community, and HL Precision Manufacturing, Inc., Champaign has the right idea when it comes to students and careers. They teamed up with Parkland College and Unit 4 Schools to offer two students a tuition free opportunity to earn dual credit, earn an internship and a career.

I enjoyed my talk with Laura Bliell of Enterpriseworks. She mirrored the enthusiasm and energy that is apparent at the UI award winning research park. Its incubator, Enterpriseworks, employs some 500 students each year, enabling them to research, learn and teach us new things, too.

As always, I enjoyed the comments by Fred Giertz. His commentary about infrastructure was downright biblical. Plus, if you do not crack a smile from Allen Howie’s comments regarding the millennials, I will be surprised.

Good business, everyone!

Bridget Broihahn is editor of Central Illinois Business magazine. She can be reached at 217-351-5695 or bbroihahn@news-gazette.com.