Emerging Archives - Zxcoachoutlet

Big tech’s emerging market finance push brings rewards and risk, FSB says

October 11, 2020

LONDON, Oct 12 (Reuters) – A push by big technology firms into financial services in developing countries will improve access to them, but might also make traditional lenders more vulnerable, the Financial Stability Board (FSB) said.

The expansion in emerging markets has generally been more rapid and broad-based than that in advanced economies, the FSB, which coordinates financial regulation for the Group of 20 Economies (G20), said in the report released on Monday.

Lower levels of access to traditional banking and financial services developing economies had created demand for services now offered by big tech firms, the report found, particularly among low-income populations and in rural areas.

An increasing availability of mobile phones and internet access supported this trend, the FSB said.

“However the expansion of BigTech activity also gives rise to risks and vulnerabilities,” it said, pointing to lower financial literacy and firms using other data gathered.

“Competition from

EMERGING MARKETS-Most Latam currencies up for the week, Brazil leads gains

October 9, 2020

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By Shreyashi Sanyal

Oct 9 (Reuters) – Most major currencies in Latin American were set to end the week higher on Friday, with Brazil’s real leading gains after economic data through the week showed signs of improvement, while a weaker dollar also offered support.

The real BRBY, BRL= strengthened 1.3%, heading for its first weekly gain in five as data showed a pick-up in Brazil’s services sector last month. Another report showed a record reading on retail sales for August.

Investors, however, worried about Brazil’s public finances after the introduction of a new fiscal bill, called Renda Cidada, fanned fears about the government overshooting its spending limit.

FX analysts at Commerzbank said that given the uncertainty about the pandemic’sprogression and its economic impact, it is unlikely that disagreements about the consolidation of national finances will be resolved soon.

Mexico’s peso MXN= was on track

EMERGING MARKETS-Latam FX gains, Mexican peso up on optimism about investment drive

October 7, 2020

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By Shreyashi Sanyal

Oct 7 (Reuters) – Latin American currencies bounced on Wednesday, with Mexico’s peso leading gains as the country’s newly announced investment push was viewed as positive for its ailing economy.

The peso MXN= jumped 1.5% against the dollar, as investors were optimistic after the government presented an infrastructure investment plan worth almost $14 billion (297 billion pesos) on Monday. The package, which is mostly privately financed, is the first concrete sign of a renewed readiness by corporate bosses to invest under President Andres Manuel Lopez Obrador.

“After the government had so far seemed rather tight-fisted, referring to the difficult public finances, it is now going to support the economic recovery with the implementation of infrastructure projects,” said Elisabeth Andreae, FX and emerging markets analyst at Commerzbank.

“As far as the choice of the projects is concerned, government and the president seem intent on preventing a repetition

Volatile emerging market currencies won’t dissipate for next six months: report

October 6, 2020

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Fox Business Flash top headlines are here. Check out what’s clicking on FoxBusiness.com.

Volatility in emerging market currencies will not let up in the next six months as U.S. presidential election jitters mount and domestic economic growth tapers off, a Reuters poll of market strategists showed.

Most emerging market currencies were forecast to weaken or at best cling to a range over the next three to six months but will rise about 2% on average in a year, supported by a weaker dollar, the Sept. 28-Oct. 5 poll found.

Reuters surveys since the global shutdown in activity in March have been consistently concluding emerging market currencies will not recoup even half their coronavirus-induced 2020 losses within a year.

CHEAP DOLLAR WON’T REVIVE NYC REAL ESTATE MARKET ANYTIME SOON

Still, a steep dollar selloff, which just posted its worst quarter in three years as expectations for a swift recovery from the

U.S. Disarray Has Emerging Markets Struggling to Hold the Line

October 5, 2020

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(Bloomberg) — Whatever turbulence risk assets may suffer in coming days as a result of President Donald Trump’s sickness, emerging markets can celebrate a few plus points.

a vase of flowers on a table: A worker monitors flowers in crates as they move along a conveyor belt in the warehouse at the Multiflora (PTY) Ltd. Flower Market in Johannesburg, South Africa, on Tuesday, Aug. 25, 2020. South Africa's coronavirus epidemic is on a downward curve, with new infections, hospital admissions and the positivity rate all showing declines.

© Bloomberg
A worker monitors flowers in crates as they move along a conveyor belt in the warehouse at the Multiflora (PTY) Ltd. Flower Market in Johannesburg, South Africa, on Tuesday, Aug. 25, 2020. South Africa’s coronavirus epidemic is on a downward curve, with new infections, hospital admissions and the positivity rate all showing declines.

Staring down almost $16 trillion of negative-yielding debt worldwide, investors will continue to be drawn to the higher returns offered by emerging-market assets and the prospect of an economic recovery next year, analysts say. Developing-nation currencies are also benefiting from broad dollar weakness, with the U.S. currency still below its 200-day moving average. Trump’s diagnosis has also made it more likely Congress and the White House will reach

Creditors must wake up fast to threat of emerging market debt crisis

October 4, 2020

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Video: Goldman’s Swell Sees ‘Enormous’ Demand for U.S. Fixed Income Assets (Bloomberg)

Goldman’s Swell Sees ‘Enormous’ Demand for U.S. Fixed Income Assets

EMERGING MARKETS-Argentine peso slides as central bank allows more volatility; Mexican peso up

October 2, 2020

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By Susan Mathew

Oct 2 (Reuters) – Argentina’s peso dropped on Friday after the central bank said it would allow a managed float of the currency, while most other Latin American units fell as global sentiment took a hit after U.S. President Donald Trump tested positive for the novel coronavirus.

The Argentine peso ARS=RASL led losses with the bank saying it would abandon its current “uniform daily devaluations and introduce greater volatility” as the gap between the official exchange rate and the rate quoted in informal currency markets widened close to 93%.

The bank said it would offer trades at 76.95 pesos per dollar at Friday’s open, around 0.91% weaker than the close on Thursday. It also increased the important overnight repo rate to 24%, from the current 19%.

“Even if the number of measures announced is not low, we do not expect them to change the current dynamics.

EMERGING MARKETS-Asian currencies ease after Trump tests positive for COVID-19

October 2, 2020

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U.S. dollar edges higher after Trump tests positive

Malaysia stocks set to snap two straight weeks of gains

Palm oil stocks in Malaysia stage minor rebound

India, China, South Korea, Hong Kong, Taiwan on holiday

Oct 2 (Reuters) – Southeast Asia’s currencies eased on Friday with investors seeking safety in the U.S. dollar after U.S. President Donald Trump tested positive for COVID-19, while hopes for further U.S. stimulus also waned.

Trump said he and First Lady Melania Trump had tested positive for COVID-19 and would immediately quarantine and begin the “recovery process.”

The positive result raises the level of uncertainty ahead of the U.S. elections in November.

Appetite for riskier stocks was also overshadowed by concerns that a plan to provide more relief to the U.S. economy during the coronavirus outbreak would stall in the Senate, after being approved by the U.S. House of Representatives.

Stocks shed 0.9%

3 Themes In Emerging Markets

October 1, 2020

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We believe it can be dangerous to be overly reliant on thematics when positioning portfolios. Yet as growth investors, we are always looking for companies that are tied to supportive long-term structural drivers.

Identifying these drivers is an important step toward pinpointing the undervalued companies with superior quality and growth characteristics – and we see a number of these investable themes today in emerging markets.

Theme 1: Technology

One investable theme in emerging markets is technology. E-commerce, 5G telecom, online education, distributed computing, and telemedicine have long outperformed more traditional, “old economy” industries, regardless of valuation differentials favoring the latter.

In our view, the competitive positions of companies in these sectors are strengthening amid the downturn as pandemic-related stay-at-home measures have accelerated the move to a digital society. What had been a gradual 20-year shift to online life quickly gained speed, with healthcare, shopping, education, and work going digital almost

EMERGING MARKETS-Turkish lira rises from record lows, EM equities set for monthly decline

September 30, 2020

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By Sagarika Jaisinghani

Sept 30 (Reuters) – Turkey’s lira recovered from record lows on Wednesday as the government lowered a tax on foreign currency transactions, while emerging-market equities were set for their first monthly decline since the coronavirus-driven crash in March.

The lira TRY= was at 7.73 against the dollar after slumping to a low of 7.86 in the previous session amid fears Turkey would get dragged into a conflict between Armenia and Azerbaijan over the enclave of Nagorno-Karabakh.

Investors were also assessing a new economic programme laid out by Finance Minister Berat Albayrak on Tuesday that called for a 0.3% rise in output in 2020 despite the pandemic. Analysts doubted some of the forecasts were achievable.

“It is difficult to be confident about the attainability of the government’s end-2021 inflation forecast,” said Berna Bayazitoglu, a Credit Suisse analyst. Some of Albayrak’s responses “exacerbate local depositors’ and non-resident investors’