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The G20 summit in Washington in mid-November was generally seen as underwhelming – largely as a result of the political leadership vacuum caused by President Bush’s lame-duck presidency. However, there was one historic achievement: emerging market countries such as Brazil were invited to play a larger role in determining the course of the global economy.

Third-quarter results from Brazil’s leading banks – released at the end of October and the beginning of November – weren’t expected to have too many surprises. After all, most of the troubles that have affected the banking system after the period covered by the figures. The fourth-quarter results will be the first to show the true extent of problems.

While concerns about loan growth, liquidity and profitability have taken centre stage in recent weeks, there has also been plenty of excitement in Brazilian banking about M&A.

It is not only baguettes that France gifted to Algeria. There is also the passion for big infrastructure projects, bureaucracy and saving.

Growing oil and gas revenue has given less impetus to the creation of a more advanced private sector.

The $1 billion Stanislaus County (Calif.) Employees Retirement Association has hired Capital Prospects and Legato Capital Management as managers of emerging managers. Capital Prospects will handle a $50 million small-cap value equity portfolio, which is currently invested in the iShares Russell 2000 Value Index Exchange Traded Fund. Legato will handle a $33.5 million small-cap growth portfolio, replacing Mazama Capital Management, which was terminated for performance reasons. For the year to date ending Oct. 31, Mazama’s small-cap portfolio returned -46.1%, compared with the Russell 2500 Growth Index at -37.25%. Brian Alfrey, chief operating officer, declined to comment.

Brazilian corporates are starting to feel the crunch, with some particularly exposed by their use of derivatives to hedge the value of the real and earnings under pressure for commodity producers as demand falls. But Brazil’s broad industrial base and generally responsive government policies should stand it in good stead.

Bernanke is walking a fine line between deflation and inflation. For the moment deflation is more to be feared, so his actions are all about stimulating inflation, including printing money.

Monday Properties wants to expand in the Washington, D.C., metro area and New York and plans on making acquisitions the old-fashioned way.

Markit is looking to launch credit derivative indices in new markets in the New Year. Regions of interest include Latin America, Russia, Eastern Europe and the Middle East, said Stephan Flagel, managing director and head of indices in London, adding it is too early to say which will come first. "We are working with dealers to identify new markets, and hoping we will come up with something and launch towards the end of the first quarter or early second...We’re just waiting to see how the market develops."

The Depository Trust & Clearing Corporation (DTCC) has expanded its create and redeem service for Exchange Traded Funds (ETF) to include using cash as the sole underlying component.

After years of rapid expansion, Brazil’s banks are facing up to the challenges of tighter liquidity and slowing economic growth. But the government’s proactive approach is helping to reassure investors and observers about the banks’ stability and solvency while the banking system’s focus on its domestic market has spared it much of the contagion from dodgy assets now blighting many of its international counterparts.