One of the consequences of low growth is that the economic recovery is not widespread across sectors. Some continue to perform well in the midst of stagnation – and even contraction, in the case of many others.
1 Oct 2019
US-China trade tensions are likely to remain high. China reported slightly firmer than expected September PMI readings over the weekend. With more tariffs going into effect in September and again in December, however, the economy is still facing stiff headwinds. This will continue to have negative knock-on effects on the rest of EM.
30 Sep 2019
So far, 2019 has seen a marked escalation of political tensions within Kenya’s ruling Jubilee coalition. The coalition – led by President Uhuru Kenyatta and Deputy President William Ruto – has so far been able to effectively keep a lid on the political and ethnic divisions that boiled over into widescale violence ten years ago. The recent arrest of a high-profile minister has sparked concerns…
27 Sep 2019
Privatization and asset sales are on the agenda for the Bolsonaro administration as it seeks to restore the fiscus; but time is running short for the government to start delivering, warns Zeina Latif.
24 Sep 2019
We think the Fed has signaled that the bar to another cut is high. Unless the US data weakens considerably, we see rates on hold for now and this means the liquidity story for EM has worsened. Elsewhere, US-China trade talks appear to be going nowhere. With no end in sight to the trade war, we remain negative on EM.
23 Sep 2019
Late last year, India’s markets were rocked by a number of high-profile defaults in its non-banking financial institutions (NBFCs) sector. Since then, Narendra Modi’s thumping election victory, weakening domestic consumption and the government’s potential Eurobond debut have added to the noise, painting a puzzling picture of India’s underlying economic potential. Bonds & Loans speaks with Suyash…
18 Sep 2019
EM is likely to come under pressure this week if risk-off sentiment picks up from the Saudi bombings. The oil producing countries may outperform but we think the global backdrop for EM remains negative, especially as US-China relations remain in flux. While things are not getting worse, neither are they getting better. Meanwhile, markets are coming to grips with the fact that the Fed is unlikely…
16 Sep 2019