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