LONDON, Dec 19 (Reuters) – Elections in all the “fragile
five” emerging economies next year, along with the thorny topics
of Syria and Iran, will make life tricky for investors trying to
steer through political risks in developing markets after a
The withdrawal of U.S. monetary stimulus will set the
backdrop for the year, particularly for these big developing
economies that depend heavily on foreign investor inflows.
LONDON, Dec 18 (Reuters) – Ukraine’s dollar debt soared on
Wednesday, a day after the country agreed a bailout from Russia,
while Turkish stocks fell more than two percent to their lowest
level in more than three months following a corruption probe.
Russia said on Tuesday it would buy $15 billion in Ukrainian
bonds under a deal that keeps Kiev firmly in Moscow’s orbit and
out of the European Union’s grasp, but sowed doubts in some
Ukrainians’ minds about what President Viktor Yanukovich might
have agreed to in secret.
LONDON, Dec 17 (Reuters) – Emerging stocks edged up on
Tuesday ahead of a U.S. Federal Reserve meeting which may decide
on a withdrawal of monetary stimulus, though Turkish stocks fell
following high-profile detentions as part of an investigation
into alleged bribery.
The Federal Open Market Committee starts a two-day policy
meeting on Tuesday and investors are on tenterhooks over when it
will begin to reduce its $85 billion-a-month bond-buying
programme, a major driver of risky assets.
LONDON (Reuters) – Cajoled by developed world governments and shocked by disasters such as the Bangladesh factory fire, investors in emerging market companies are looking more closely at environmental, social or governance issues before they buy.
Once the preserve of religious and ethically minded funds and the development finance arms of major economies, these ESG themes have moved into the mainstream.
LONDON (Reuters) – The cost of insuring Ukraine’s debt against default rose on Wednesday towards recent four-year highs and sovereign bonds fell after Ukrainian riot police moved against anti-government protesters overnight.
Police withdrew on Wednesday morning. President Viktor Yanukovich has faced weeks of demonstrations over his decision to ditch a trade deal with the European Union and strengthen Ukraine’s ties with Russia.
LONDON/KIEV, Dec 9 (Reuters) – Ukraine’s hryvnia jumped from
four-year lows on Monday as the central bank engineered a sharp
rise in short-term interest rates, forcing commercial banks to
scramble for the local currency.
The central bank has sold dollars regularly in recent weeks
to support the hryvnia’s exchange value, which has been hit by
spiralling political unrest. That has drained its hard currency
reserves, however, leaving the country at risk of a currency
NAIROBI/LONDON, Dec 3 (Reuters) – Improved fiscal management
has left Kenya well placed to borrow from international
financial markets, the IMF said, as the country said it planned
to start marketing a debut sovereign Eurobond next month.
The International Monetary Fund, in a statement, commended
Kenya’s tighter monetary stance since September and said it had
helped anchor inflationary expectations at low levels after
inflation spiked on the back of a revision to its value-added
tax (VAT) law.
LONDON, Nov 27 (Reuters) – Investment in North African
markets by international funds has evaporated as shocks in and
outside the region have prevented hoped-for economic progress
since “Arab Spring” uprisings swept many of the countries nearly
three years ago.
Morocco, which has avoided the worst of its neighbours’
turmoil, became the latest casualty on Wednesday when it was
relegated in the leading MSCI indices from the league of
established emerging markets to the “frontier” division of
economies with less developed capital markets.
LONDON, Nov 21 (Reuters) – Baring Asset Management has
switched to neutral from overweight on European and U.S.
equities but remains bullish in the longer term, and would see a
5-10 percent pullback as a buying opportunity, its chief
investment officer said.
Japan is the UK fund house’s favourite stock market for now.
Rallies in global stocks, especially in the United States
and Europe, have started to outstrip earnings growth, a warning
sign that a price correction may be coming, Marino Valensise
told the Reuters Global Investment Outlook Summit on Thursday.
LONDON, Nov 20 (Reuters) – Carmignac Gestion still finds
value in peripheral euro zone bonds in Italy, Spain and Ireland,
particularly at the longer end of the yield curve, a member of
the French fund’s investment committee said on Wednesday.
Japanese stocks are also appealing, with the market’s
storming rally this year lagging corporate performance, Didier
Saint-Georges told the Reuters Global Investment Outlook Summit.