LONDON, Jan 20 (Reuters) – Which investment takes your
fancy: BRIC, MINT or CIVETS? For many fund managers seeking the
next big thing in emerging markets, the answer is none.
Acronym investment – putting money into small groupings of
markets which often have little in common beyond a broad
economic concept – is giving way to acronym anxiety.
LONDON, Jan 15 (Reuters) – Liberia has “medium-term” plans
to launch an international bond but will first seek a debt
rating which it anticipates will be in the single-B category,
the West African country’s finance minister said on Wednesday.
Several other African sovereigns, including Zambia, Rwanda
and Tanzania, have launched well-received debut dollar bonds in
the past couple of years, with investors attracted by the high
yields and increasing wealth and political stability on the
LONDON, Jan 15 (Reuters) – The European Bank for
Reconstruction and Development said on Wednesday that its
lending to Russia fell sharply last year because of difficult
economic and investment conditions there, but it was looking to
build up investment again in 2014.
The bank cut lending to Russia to 1.8 billion euros ($2.46
billion) in 2013 from 2.6 billion a year earlier.
LONDON, Jan 13 (Reuters) – The European Bank for
Reconstruction and Development is prepared to take more stakes
in “orphaned” central and eastern banks amid signs their western
parents are abandoning them at an increasing pace.
The exit from the region by big banks is raising concerns
about the stability of affected economies, and is being driven
by a desire to improve the look of balance sheets before the
European Central Bank’s Asset Quality Review (AQR).
Which was the best performer in emerging bond markets last year? The sector had a pretty torrid year overall, with sovereign dollar bonds finishing 2013 almost 7 percent in the red. But there were exceptions.
The best returns were to be had — hold your breath — in little-watched Belize, a member of JPMorgan’s NEXGEM frontier debt index. Someone who bought Belize debt at the start of last year would have been in the money, with gains of 50 percent, though the returns were in fact down to the restructuring of Belize debt early last year.
LONDON, Jan 9 (Reuters) – A two-year rally in frontier
African stocks, which has withstood the Nairobi shopping mall
attack, violence in the Central African Republic and fighting in
South Sudan, is showing signs of fatigue, pointing to muted
gains this year.
The MSCI Africa index, which excludes South
Africa but includes three North African markets, has risen more
than 60 percent over the past two years as investors sought
plays on the rising purchasing power of middle class consumers
in the world’s fastest-growing continent.
Former Goldman Sachs economist Jim O’Neill, deviser of the BRIC acronym uniting the emerging market giants of Brazil, Russia, India and China, has coined a new term – MINT.
In a series of BBC radio programmes starting today, O’Neill looks at the “next economic giants” of Mexico, Indonesia, Nigeria and Turkey. It’s a break-out of four of the countries from his previously-coined Next-11, which also included Bangladesh, Egypt, Iran, Pakistan, Philippines, South Korea and Vietnam.
Last year was not the best for mergers in emerging markets, according to Thomson Reuters data, which shows mergers & acquisition activity down 4.6 percent from 2012 to $675.2 billion. The number of deals fell even more – by 11.3 percent to 12,748.
The drop-off in emerging M&A activity mirrors a 5 percent fall in the benchmark MSCI emerging stocks index last year, with investors more fearful about the emerging market growth outlook. But unlike stock market performance, emerging market deal activity outstripped the global total, which was down 6 percent from 2012 levels.
LONDON, Dec 30 (Reuters) – Time for an end of year quiz.
Which emerging and frontier market countries were the best stock
performers in dollar terms?
Nil points if you said China, with its colossal internal
market, recession-free Poland, or oil-rich Nigeria.
LONDON, Dec 24 (Reuters) – Emerging market dollar bond sales
hit record highs of $450 billion this year, surprising industry
players who had predicted issuance to suffer from the threat of
U.S. monetary stimulus withdrawal.
Worries about the squeezing of the U.S. lifeline that had
fuelled demand for risky assets drove money from emerging market
debt funds and hit returns in 2013, after several years of
inflows and double-digit gains.