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Jun 5, 2013

Stock investors head back to Egypt

LONDON, June 5 (Reuters) – International investors are being
tempted back into Egyptian stocks, after taking a breather this
year, viewing a selloff on renewed signs of political
instability and currency concerns as overdone.

The MSCI dollar-denominated Egypt index
jumped 4 percent last month, outperforming a 4 percent decline
in the broader MSCI emerging market index, of which
Egypt is a constituent alongside larger emerging economies such
as China, Brazil, Russia and India.

May 29, 2013

Declining Morocco stocks face frontier risk

LONDON/RABAT, May 29 (Reuters) – Morocco’s possible demotion
to frontier market status next month may deter international
investors and put the country’s stock market, already suffering
from tumbling share prices and trading volumes, further at risk.

Index compiler MSCI, which has $7 trillion in global assets
benchmarked against its indices, put Morocco on review for
downgrade to its frontier index last year, and makes its
decision on June 11.

May 22, 2013
via Global Investing

Want a better rating? Dig for oil

Middle East countries which are energy exporters have better investment ratings than  oil importers in the region, Fitch says, and that gap is widening.

Paul Gamble, director in the sovereigns group at Fitch, told a briefing this week that the ratings gap has never been bigger and that:

May 13, 2013
via Global Investing

Eastern European banks: good and bad

First, some good news – eastern European banks are relatively profitable. Austrian bank Raiffeisen, which is heavily involved in the region, published a report at the weekend which showed:

In terms of growth and profit, the banking sectors in the CEE (central and eastern Europe) region continue to outperform their Western European counterparts.

May 11, 2013

EBRD considers lifelines for small business in emerging Europe

ISTANBUL, May 11 (Reuters) – The European Bank for
Reconstruction and Development (EBRD) is considering ways to
help small businesses in emerging Europe, including through
direct lending, as the region suffers lacklustre growth, its
president said on Saturday.

The European Central Bank and the International Monetary
Fund have also expressed concern about the reluctance of banks
to lend, so delaying a longed-for recovery in Europe.

May 10, 2013

European development bank cuts growth forecast for emerging economies

ISTANBUL (Reuters) – Europe’s development bank slashed its 2013 growth forecasts for emerging Europe and North Africa on Friday by almost a full percentage point, saying a sharp slowdown in Russia would drag down the regional economy.

The European Bank for Reconstruction and Development (EBRD) said Russia’s problems should galvanize the region to pull down barriers to new businesses and investment.

May 10, 2013

Libyan police stations bombed, British embassy cuts staff

TRIPOLI/ISTANBUL (Reuters) – Bombs exploded outside two police stations in Libya’s eastern city of Benghazi on Thursday and Britain temporarily cut staff at its embassy in Tripoli because of security fears.

The blasts, which caused damage but no casualties, were the latest signs of insecurity in Benghazi, the birthplace of the uprising that toppled Muammar Gaddafi in 2011.

May 10, 2013

Serbia’s 2013 budget deficit could be as high as 4.5 pct of GDP -FinMin

ISTANBUL, May 10 (Reuters) – Serbia’s budget deficit this
year could be as much as 4.5 percent of national output, wider
than previously forecast, Finance Minister Mladjan Dinkic said
on Friday.

Serbia had originally targeted a shortfall of 3.6 percent of
gross domestic product for 2013, although the International
Monetary Fund and economists warned the projection was too
optimistic.

May 8, 2013

Slow western growth, geopolitical risks haunt emerging Europe

LONDON, May 8 (Reuters) – Stuck between sluggish economies
in the west and rising geopolitical risks in the Middle East,
emerging European countries are struggling to attract investment
and boost growth.

The European Bank for Reconstruction and Development will
discuss ways of “Innovating for Growth” at its annual meeting
this weekend in Istanbul – seen as the cornerstone of its region
of operation of central and eastern Europe and North Africa.

May 3, 2013

Bond yields too low? There’s always Rwanda

LONDON, May 3 (Reuters) – Last summer, euro zone member
Spain was struggling to borrow money for 10 years at a yield
below 7 percent. Last week, Rwanda had no trouble.

Rock-bottom interest rates in the developed world have left
investors scrambling for yield, while economies in the
developing world are eager to raise capital to boost their
economies and reduce their dependence on international aid.

    • About Carolyn

      "I work in London as part of the Reuters investment strategy editorial team, specialising in emerging and frontier markets. I cover emerging bond, stock and FX markets as well as global market themes, and interview emerging market policy-makers when they attend events in London. I started at Reuters in 1993, writing about foreign exchange, government bonds and Eurobonds before switching to emerging markets."
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