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May 30, 2014

European funds put cash to work in stocks, bonds

LONDON (Reuters) – European fund managers took cash and put it into shares and bonds this month, viewing that major central bank banks will retain loose monetary policy for some time, a Reuters survey showed.

Fund managers in the poll, released on Friday, slashed cash levels to their lowest in 10 months in May and lifted equity holdings to their highest since January. They also increased their bond positions from April.

May 30, 2014

Leading investors cut cash holdings in May; buy emerging stocks, property

LONDON (Reuters) – The world’s top investors cut cash holdings this month to their lowest since November and put money to work in risky assets, on the expectation that developed market interest rates will remain low, Reuters polls showed on Friday.

Property holdings and emerging market stocks and bonds were among beneficiaries of the hunt for yield. The European Central Bank is expected to ease monetary policy next week, and mixed U.S. economic data have pushed back forecasts for a rise in U.S. interest rates.

May 29, 2014

Bondholders reject Kazakh Alliance Bank’s debt restructuring offer

LONDON, May 29 (Reuters) – Kazakhstan’s Alliance Bank,
majority owned by the country’s sovereign wealth fund, said on
Thursday that talks with creditors had broken down on what would
be its second debt restructuring in four years.

The bank defaulted on debt in the aftermath of the global
financial crisis and restructured debt in 2010 but late last
year said it needed to recapitalise to restore profitability.

May 29, 2014

Turkish finance minister says central bank independent but may be behind curve

LONDON, May 29 (Reuters) – Turkish finance minister Mehmet
Simsek sought to reassure investors on Thursday of the central
bank’s independence, although he said the bank was possibly
“behind the curve” with its monetary policy.

The government, especially Prime Minister Tayyip Erdogan,
has been highly critical of the central bank for its huge
lira-defensive interest rate rise earlier this year. The bank
this month eased one of its policy rates despite annual
inflation of over 9 percent, a move many investors fear was
caused by government pressure.

May 28, 2014

Corrected – Focus switches to other emerging markets as Famous Five ride out election risks

LONDON (Reuters) – (Corrects spelling of name in 7th paragraph to Jorge Mariscal, not Jorge de Mariscal)

Elections from Jakarta to Johannesburg have calmed investors’ worst fears about political risk in emerging markets this year, but voting in Cairo and Kiev and instability in Thailand and elsewhere are creating new concerns.

May 23, 2014

Focus switches to other emerging markets as Famous Five ride out election risks

LONDON, May 23 (Reuters) – Elections from Jakarta to
Johannesburg have calmed investors’ worst fears about political
risk in emerging markets this year, but voting in Cairo and Kiev
and instability in Thailand and elsewhere are creating new
concerns.

Polls in the so-called Fragile Five economies – Brazil,
India, Indonesia, Turkey and South Africa – topped investors’
list of political worries for 2014.

May 21, 2014

Polish c.bank’s Belka criticizes banking union plans, wary on deflation

LONDON, May 21 (Reuters) – Poland’s central bank governor
Marek Belka criticized Europe’s plans for a banking union on
Wednesday, saying non-euro zone countries that joined it would
be at a disadvantage and have little influence over key
decisions.

He also said he could not rule out the possibility of
deflation taking hold in Poland, while his country joining the
euro was not likely to happen any time soon.

May 20, 2014

Stocks hit 6-1/2 month highs, Thai debt insurance costs rise

LONDON, May 20 (Reuters) – Emerging stocks hit 6-1/2 month
highs on Tuesday for a second straight day on expectations of
greater monetary stimulus in developed markets and a lessening
in geopolitical risks.

Thai debt insurance costs hit their highest in two months,
however, after Thailand’s army declared martial law, but denied
it was staging a military coup.

May 19, 2014

Rwanda, Zambia, Zimbabwe: betting on the youth club

LONDON, May 19 (Reuters) – Three members of Africa’s “youth
club” – Rwanda, Zambia and Zimbabwe – offer some of the
fastest-growing working populations in the world, if only
investors can capitalise on that.

If the countries’ demographic trends can be coupled with
good education to create skilled jobs and an avoidance of
political unrest, this should lead to economic growth quickly
enough to attract portfolio investors, some analysts say.

May 15, 2014

Russia, South Africa, Turkey help stocks to 6 1/2-mth high

LONDON, May 15 (Reuters) – Emerging stocks hit 6 1/2-month
highs on Thursday, with Russia, South Africa and Turkey gaining,
as the prospect of monetary stimulus by bigger economies and
declining geopolitical risk helped to restore the appeal of
emerging markets.

Expectations are growing that the European Central Bank may
even cut rates to negative levels. Federal Reserve Chair Janet
Yellen has said the U.S. economy needs support, and expectations
are rising that China might take steps to stimulate its economy.

    • 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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