Karin's Feed
Dec 18, 2014

Upbeat Fed, higher oil lift emerging currencies, stocks

LONDON, Dec 18 (Reuters) – Emerging shares rose for a second
straight day on Thursday while most currencies strengthened,
lifted by the Federal Reserve’s show of confidence in the U.S.
economy, though Russia’s rouble eased after two days of gains.

Emerging market stocks rose 1.24 percent, the
biggest daily gains in a month, after the Fed signalled it was
on track to raise interest rates some time next year but would
take a “patient” approach. That lifted U.S. stock markets, and
oil rose above $62 per barrel.

Dec 17, 2014

Rouble collapse? Foreign “speculators” say it wasn’t us

LONDON, Dec 17 (Reuters) – A 20 percent currency drop in two
days sounds like the opportunity of a lifetime for a savvy hedge
fund superstar to earn a fortune. But foreign fund managers say
they have mainly stayed away from bets against the rouble,
because the Russian market is just too unpredictable and costly.

Dragged down by falling oil and Western sanctions over
Moscow’s involvement in the Ukraine crisis, the rouble has
declined steadily against the dollar since June, culminating in
a freefall this week.

Dec 16, 2014

Market turmoil feeds fears of Russia rating cuts

LONDON, Dec 16 (Reuters) – A rout in Russian financial
markets has raised concerns that the country may struggle to
hold on to its investment grade credit rating.

All three of the main agencies – Standard and Poor’s,
Moody’s and Fitch – have Russia on a negative outlook, with
S&P’s rating at the cusp of a drop into junk that would raise
the prospect of an investor flight from Russian bonds.

Dec 15, 2014

Russian corporate bonds sold off as rouble plunges

LONDON, Dec 15 (Reuters) – Dollar bonds of Russian companies
suffered a fresh selloff on Monday, as the rouble’s fall past
the 60-per-dollar level and the threat of more sanctions fanned
fears about future debt repayments.

Russian financial markets are reeling, with
dollar-denominated stocks chalking up a 10 percent loss
on Monday – their steepest one day fall since March – while
yields on local and hard currency sovereign debt are at levels
unseen since the 2008-2009 global crisis.

Dec 15, 2014

Russian rate rise fails to break the rouble-oil link

LONDON, Dec 15 (Reuters) – Russia’s rouble has tumbled to
successive record lows against the dollar, shrugging off central
bank interventions and interest rate rises, and paying heed to
only one factor – the oil price.

Brent crude futures have chalked up losses of 45
percent since the start of this year, touching five-year lows
near $60 per barrel on Monday amid oversupply and weak demand.

Dec 12, 2014

Emerging shares clock steep weekly fall, Russia feels oil pain

LONDON, Dec 12 (Reuters) – Emerging stocks were on track for
their biggest weekly fall in 18 months, dragged down by falling
oil prices that continue to inflict heavy losses on Russian
assets.

Oil prices tumbled to $63 per barrel, sending Russia’s
rouble down 1.6 percent to a new historic low against the
dollar. Moscow dollar-denominated stocks fell as much as
4.8 percent, gearing up for their steepest weekly fall in over
two years and down 42 percent since January.

Dec 2, 2014

After Western sukuk debuts, Islamic finance looks to emerging sovereigns

LONDON (Reuters) – This year’s rush by top-rated non-Muslim countries to tap the burgeoning Islamic finance market may not be repeated next year but a new crop of sovereign entrants, mostly from emerging markets, is waiting around the corner.

The United Kingdom, Hong Kong and Luxembourg – all ranked at least AA by rating agencies – issued sharia-compliant financial instruments, or sukuk, for the first time in 2014. They gave a huge boost to a market which was once just seen as a funding tool for borrowers from the Gulf and Muslim countries in southeast Asia.

Nov 27, 2014

Nigeria currency devaluation to curb banks’ Eurobond bonanza

LONDON, Nov 27 (Reuters) – Nigerian banks’ overseas
borrowing bonanza looks to be over in the wake of a dramatic
currency devaluation this week, but while risks are rising,
repaying existing debt should not be a problem for most.

Companies in Africa’s largest economy have rushed in recent
years to take advantage of rock-bottom global borrowing costs
and investors’ hunger for yield, selling some $5 billion in hard
currency bonds since 2007, according to Thomson Reuters data.

Nov 20, 2014

Nigeria must adjust to ‘permanent’ oil price shock-Finance Minister

LONDON (Reuters) – Nigeria will have to adjust to oil prices heading lower for some time to come, Finance Minister Ngozi Okonja-Iweala said on Thursday in an interview in which she also cut the outlook for economic growth next year.

    Africa’s largest economy relies on oil exports for 70 percent of government revenues and has been hit hard as crude prices have fallen to four-year lows below $80 a barrel after trading above $115 as recently as June. [O/R]

Nov 12, 2014

Investors see fall ahead for battered Nigerian naira

LONDON, Nov 12 (Reuters) – Plunging oil prices, terrorism
and messy pre-election politics are setting the stage for a
rough time for Nigeria’s battered currency, the naira, with some
seeing it highly vulnerable to attack from speculators.

Africa’s largest economy relies on oil exports for 80
percent of government revenues and has been hit hard as crude
prices have fallen to four-year lows around $80 a barrel.