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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.

May 14, 2014

Stocks jump to six-month high on ECB, Russia

LONDON, May 14 (Reuters) – Emerging-market stocks jumped to
six-month highs on Wednesday as investors welcomed the prospect
of more monetary stimulus in developed markets and a lessening
in geopolitical risk.

The European Central Bank is preparing a package of policy
options for its June meeting, including a potential rate cut to
negative deposit rates, five people familiar with the measures
told Reuters. Negative rates would be likely to
drive investors into higher-yielding emerging markets.

May 9, 2014

Shrugging off tapering, falling emerging debt yields breach key level

LONDON, May 9 (Reuters) – The premium which emerging dollar
bonds hold over U.S. yields has shrunk to a level not seen since
May 2013 when the Federal Reserve flagged plans to taper its
stimulus programme and triggered a sell-off in the risky asset
class.

Now analysts and investors are wondering how far the
tightening in the premium can go. Their views are largely
related to expectations for emerging market growth – and suggest
the narrowing trend may soon run out of steam.

May 7, 2014

Legal minefield of Russia sanctions worries bond investors

LONDON, May 7 (Reuters) – Confusion over the legal
implications of sanctions on Russia and worries about further,
harsher restrictions from the West are making investors cautious
about owning bonds issued by Russian companies.

Two rounds of U.S. sanctions on Russian individuals and
companies, in March and April, have not directly affected any
companies which issue publicly traded debt. EU sanctions are
regarded as even lighter.

    • 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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