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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Fresh edition of CIB

By Bridget Broihahn

Hello everyone. My name is Bridget Broihahn and I'm the new editor for CIB. I look forward to getting to know more about the businesses in Central Illinois. This issue has been exciting to create.

Spring is finally here, and business in Champaign County is alive and well, ready to take on the outdoor season.

That is certainly true for BRG Sports, our feature story. This outstanding company just keeps breaking records and winning awards in business. Led by energetic and enthusiastic general manager Lewis Hornsby, this crew makes hard work look easy as they gear up for the bicycling season. His energy level had me motivated, and the employees left me energized.

I also hope you'll check out the article on Scientific Animations Without Borders, better known as SAWBO. Barry Pittendrigh and Julia Bello-Bravo came up with a great way to share information worldwide through animation. It's free, and a great resource for the world community.

The dedicated businesspeople I had the chance to share some time with for this issue inspired me. This includes Steve Tarrant of State Farm. He's one of those people who pulls up a chair, cracks open a soda and lends you a hand. He makes your peace of mind his business.

Additionally, I had the chance to hang out with the game designers at Volition. This unique group made its mark in the video gaming industry, and has made Champaign home. They even gave this mom of a teenage boy some cool points, if just for a little while, anyway. That's no small feat!

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