Coronavirus
China PMI Shifts Above 50 as Domestic Demand Recovers
China's manufacturing PMI and non-manufacturing PMI moved above 50 in March, according to the official state data, an important sign of improving domestic production and consumption, despite continued pressures on the economy.
31 Mar 2020
China’s Banking System Part of the Problem, Not a Solution, to Current Crisis – Rhodium Group
As the epicentre of the coronavirus outbreak, China was the first to suffer its devastating impact as the country went into lockdown and its economy ground to a halt. But will China be able to launch a sustained bounceback, as it did after the 2008 financial crisis? According to Logan Wright, Director and Daniel Hosen, Partner at Rhodium Group, China no longer has the option of launching a…
31 Mar 2020
As Monetary Policy Reaches its Limits, Where Do Policymakers Go Next?
While the magnitude of the challenge facing monetary policy makers has escalated swiftly in recent weeks, the underlying setting – growth driven largely by cheap money, and overreliance on low rates – has been in place for some time, and many market observers have been asking the painful but necessary question: once central banks hit a wall of zero rates, where do we go from there?
31 Mar 2020
“Triple Shock” of Pandemic, Commodity Plunge and Capital Outflows Shakes Emerging Markets
Emerging economies are in for a rough ride as the crisis escalates, ratings agencies warn, but growth is likely to rebound in 2021 if the pandemic subsides.
31 Mar 2020
Policy Measures to Soften the Blow for Latin America as Pandemic Enters New Phase - Scotiabank
So far, data on the spread of COVID19 in Latin America suggests the worst is yet to come, and the full economic impact on growth will be significant. But the measures already taken – and those being prepared – by governments in the region should soften the blow, a Scotiabank report suggests.
30 Mar 2020
Fitch Downgrades Three Nigerian Banks Due to Pressure from COVID-19, Oil Price
The three highest-rated Nigerian banks – Zenith, Guaranty Trust Bank (GTB), and United Bank for Africa (UBA) have been downgraded by Fitch.
30 Mar 2020
China Unlikely to See Swift Recovery Despite Industrial Activity Resuming
Tentative signs of an impending recovery as factories reopen should not overshadow the reality that COVID-19’s impact on the Chinese economy will far exceed that of SARS or the global financial crisis, IIF warns.
27 Mar 2020
COVID-19 Could Restart US-China Trade Tensions – Control Risks
With the US likely to fall into a recession combined with widespread social disruption caused by the lockdown, Trump’s re-election this November appears uncertain. Far from soothing tensions between the US and China, the pandemic has heightened them.
27 Mar 2020
Kenyan Bond Yields Spike Due to Pandemic, Locust Disruption – Cytonn Investments
As the COVID-19 pandemic wracks emerging and developed economies alike, market have gone into overdrive with shares and bonds both suffering heavy sell-offs as investors flee to the safety of US dollars. Kenya’s local currency treasury bonds (TBs) and outstanding Eurobonds have been no exception to this trend.
26 Mar 2020
UAE Bank to See Asset Quality Weaken – Fitch Ratings
The impact of the coronavirus is being felt by countries and sectors worldwide, but the UAE is particularly sensitive as key sectors like oil & gas and logistics feel the disruption more severely. For the country’s banking sector, the pandemic looks set to place additional pressure on banks’ credit profiles by reducing asset quality, according to a note from Fitch Ratings.
24 Mar 2020