New and Emerging Markets Magazine: The Current Affairs Magazine of KPMG’s New and Emerging Markets Practice

This issue of New and Emerging Markets magazine focuses on: the automotive industry; broadening horizons: the tourist industry in emerging markets; Islamic investments: banking in the Gulf region and beyond oil: Nigeria.

Dear Reader
With the US economy continuing toshow signs of severe stress, severalcommentators express hope that highgrowth and increased domesticconsumption in Asia’s new economicgiants - China and India – will beenough to offset the fall in US demand.

The “decoupling” theory is popularwithin developing Asia; however, thefact remains that, for the region as awhole, exports still constitute over 45 percent of GDP, while US domesticconsumption is over six times theconsumption of China and Indiacombined. Increased globalisation andconnectivity will increase the likelihoodthat the effects of the US downturnwill impact the major emergingmarkets, even if they are betterinsulated today than in the past.

Frontier markets have appeared on the radar screen as popular alternativeinvestment destinations and,interestingly, are yielding headlinereturns that surpass those from thetraditional emerging markets. Onereason for their popularity is theapparent lack of correlation withdeveloped and emerging marketswhere the large global investors movein and out easily. This is bound tochange as the frontier marketsglobalise. We feature one of thesemarkets - the oil economy of Nigeria -in this issue.

Tata Motors of India surprised us allrecently with the unveiling of its smallcar, “the Nano”, with an entry levelprice point of 1,700 euro to cater tothe bottom of the consumer pyramid.At first sight, the car conforms to thetraditional image of the emergingmarkets as manufacturers of cheapgoods. However, the actual message isvery different - it is a great example ofthe innovation, efficiency and focus onresearch and development that werenot previously associated withemerging markets. The Nano is also anexample of the enormous co-operationpotential for industrialised nations inthe emerging markets. Many moderncomponents come from renownedEuropean suppliers.

Tata Motors has also hit the headlinesrecently with its acquisition of theJaguar and Land Rover marques fromFord. The transaction exemplifies thetrend for Indian companies to continuetheir overseas acquisition spree inspite of the ongoing volatility in thefinancial markets and for trade buyersto press home their advantages. There is more about the car industry inemerging markets in this issue of ourmagazine. I hope you find it a stimulatingread and look forward to your feedback.

Ian Gomes
Chairman, New & Emerging MarketsKPMG LLP (UK)

Visit New and Emerging Markets Magazine, June 2008 Download Page

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CONTENTS
News & Regulars
Still in the hunt: : Indian companies hungry for acquisitions despite credit crisis
Newsticker
Next Eleven Series: Beyond oil - Nigeria

Features
Automotive: Driving Progress
Turbochargers for the East
Tourism: Broadening Horizons
Banking: Islamic investments

Opinion
Automotive: “China’s suppliers are still concentrating on the domestic market”
“Car manufacturers view the emerging14markets differently today”
“The Russian market is very European18at heart”

Travel: “The Olympics could turn into a big gamble for China’s tourism image"
Banking: “Growth itself is not enough”
“A tax declaration fits on a beer mat here”
Calculating world performance
Three Questions to... Christian Looks

Knowledge
In this section: Statistics, KPMG member firms New Studies, Tips & Dates, Contacts, Preview of Next Issue, Web

Visit KPMG Website

Overview

KPMG is a global network of professional firms providing audit, tax, and advisory services, with an industry focus.

The aim of KPMG member firms is to turn knowledge into value for the benefit of the firms' clients, people, and the capital markets. With more than 123,000 people worldwide, member firms provide audit, tax, and advisory services in 145 countries.

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