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Jan 23, 2014

From Iran to North Korea, investors spy the new frontier

LONDON (Reuters) – Iran, hoping for a full lifting of western sanctions, and North Korea are among extreme frontier markets that could attract adventurous fund managers with the stomach for high political risk in the search for higher returns.

Iranian President Hassan Rouhani told business and political leaders at the World Economic Forum in Switzerland on Thursday that Iran was negotiating with the United States as part of a “constructive engagement”, inviting European companies to seize opportunities as relations normalize.

Jan 21, 2014

Tapering prospects boost dollar, European stocks at new peaks

LONDON, Jan 21 (Reuters) – European shares hit fresh 5-1/2
year highs on Tuesday, boosted by easier Chinese money markets
and a strong performance from Unilever, while the dollar rose on
a report the Federal Reserve would again trim its bond buying
next week.

Chinese money market rates fell after the central bank added
more than 255 billion yuan ($42 billion) into the financial
system, easing concerns another credit crunch was underway less
than a month after a late December squeeze.

Jan 21, 2014

European shares hit five and a half year high, dollar gains

LONDON (Reuters) – European shares hit fresh 5-1/2 year highs on Tuesday, tracking Asian shares higher as Chinese money rates eased, while the dollar got a boost from a report the Federal Reserve would again trim its bond buying next week.

Chinese shares .SSEC rebounded from six-month lows and money market rates fell after the central bank dumped more than 255 billion yuan ($42 billion) into the financial system, easing concerns another credit crunch was underway less than a month after a late December squeeze.

Jan 21, 2014

European shares hit 5-1/2 year high, dollar gains

LONDON (Reuters) – European shares hit fresh 5-1/2 year highs on Tuesday, tracking Asian shares higher as Chinese money rates eased, while the dollar got a boost from a report the Federal Reserve would again trim its bond buying next week.

Chinese shares .SSEC rebounded from six-month lows and money market rates fell after the central bank dumped more than 255 billion yuan ($42 billion) into the financial system, easing concerns another credit crunch was underway less than a month after a late December squeeze.

Jan 20, 2014

BRIC or MINT? Investors suffer acronym anxiety

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.

Jan 15, 2014

Liberia has “medium-term” plans for intl bond -FinMin

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
continent.

Jan 15, 2014

Russia hit hard as EBRD cut lending in 2013

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.

Jan 13, 2014

EBRD eyeing bigger role in “orphaned” central European banks

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).

Jan 10, 2014
via Global Investing

Surprise winner in frontier debt last year

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.

Jan 9, 2014

Heights, but not dizzy ones, for sub-Saharan stocks in 2014

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.

    • 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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