Tag Archives: emerging markets

As a child, he left communist-era Prague for capitalist Jakarta and lived through the massive effects of the Asian crisis. Helman Sitohang has worked for Credit Suisse for nearly 20 years. As CEO for the Asia Pacific region, he knows that his customers attach great importance to loyalty.  Manuel...

Stock Markets EM FX had a stellar week, ending on a strong note in the aftermath of what the market perceived as a dovish Fed hike Wednesday.  Every EM currency except ARS was up on the week vs. USD, with the best performers ZAR, TRY, COP, and MXN. There are some risks ahead for EM this week, with many Fed speakers lined up and perhaps willing to push back against the market’s dovish take on the FOMC. Stock Markets...

Summay The PBOC increased the rates it charges for OMO and MLF by 10 bp. Indian Prime Minister Modi’s BJP won elections in the state of Uttar Pradesh. Czech central bank broached the possibility of a koruna cap exit later than mid-2017. Kuwait became the first OPEC member to call for extended output cuts. Moody’s raised the outlook on Brazil’s Ba2 rating from negative to stable. Brazilian prosecutor Janot has given the...

Stock Markets EM FX ended last week on a firm note despite the strong US jobs data, with the dollar succumbing to some “buy the rumor, sell the fact” price action. We think the dollar should recover as the week begins, as it seems risky to be short/underweight dollars going into the FOMC meeting. With the Fed poised to hike 3 or perhaps 4 times this year, we don’t think EM FX can continue to rally the way it has so far...

Summary North Korean banks subject to international sanctions have been banned from using Swift. Korea’s Constitutional Court upheld Parliament’s motion to impeach President Park. Singapore eased some property market curbs after a three-year decline in home prices. Egypt partially reversed a cut in bread subsidies. Nigeria’s President Buhari returned to the nation after spending nearly two months in the UK. Moody’s...

Stock Markets EM FX was mostly softer last week, though it ended the week firmer, buoyed by outsized MXN gains Friday.  The Fed is sending very strong signals for a March hike, which should keep EM FX on its back foot.  However, with the March 15 FOMC embargo coming into effect, there will be no Fed speakers after Kashkari on Monday.  Jobs data on Friday will be the highlight, but given the Fed’s signals, we do not...

Summary A Korean special prosecutor indicted Samsung chief Jay Y. Lee on bribery charges. Korean press is reporting that China has told its travel agents to halt sales of holiday packages to South Korea. Bulgaria’s interim government said it may apply to join the eurozone within a month. South Africa’s main labor union Cosatu accepted a government-proposed minimum wage. New Commerce Secretary Ross appears to be taking...

Ross Perot famously declared the “giant sucking sound” in the 1992 Presidential campaign. The debate over NAFTA did not end with George H. W. Bush’s defeat, as it simmered in one form or another for much of the 1990’s. Curiously, however, it seemed almost perfectly absent during the 2000’s, the very decade in which Perot’s prophecy came true. Americans didn’t notice because there was a bubble afoot. That bubble,...

Stock Markets EM FX ended last week on a soft note despite lower US rates. The dollar regained some traction that it lost over the course of the week, when markets pushed out Fed tightening beyond March. Treasury Secretary Mnuchin also seemed to push out fiscal stimulus. There is a full slate of Fed speakers this week, and Wednesday sees the release of the Fed’s Beige book that was prepared for the March 15 FOMC...

Summary PBOC tweaked its process for determining the yuan reference rate. Singapore is reportedly studying measures to boost revenue, including higher taxes. Moody’s upgraded the outlook on Russia’s Ba1 rating from negative to stable. Nigerian President Buhari extended his stay abroad. Nigerian central bank tweaked its FX restrictions, but was aimed at retail demand. Brazil political risk is back on the table. Brazil’s...