from Global Investing:

Watanabes shop for Brazilian real, Mexican peso

December 19, 2013

Are Mr and Mrs Watanabe preparing to return to emerging markets in a big way?

Mom and pop Japanese investors, collectively been dubbed the Watanabes, last month snapped up a large volume of uridashi bonds (bonds in foreign currencies marketed to small-time Japanese investors),  and sales of Brazilian real uridashi rose last month to the highest since July 2010, Barclays analysts say, citing official data.

from Global Investing:

The hryvnia is all right

December 5, 2013

The fate of Ukraine's hryvnia currency hangs by a thread. Will that thread break?

Italy housing tax showdown

By Mike Peacock
August 28, 2013


Italy’s fraying coalition cabinet meets to discuss what to do with a property tax imposed by previous premier Mario Monti.

For workers, the long run has arrived in Latin America

August 19, 2013

The outlook for emerging market economies over the next decade looks more challenging as long-term interest rates start to bottom out in the United States. Here is another complicating factor: ageing populations.

A week to reckon with

By Mike Peacock
June 14, 2013

The week kicks off with a G8 leaders’ summit in Northern Ireland. Syria will dominate the gathering and the British agenda on tax avoidance is likely to be long on rhetoric, short on specifics. But for the markets, this meeting could still yield some big news. For a start, Japanese prime minister Abe is there – the man who has launched one of the most aggressive stimulus drives in history yet has already seen the yen climb back to the level it held before he started. Abe will also speak in London and Warsaw during the week.

Talking Turkey … and Greece

By Mike Peacock
June 12, 2013

Yesterday was another day of turmoil for emerging markets and according to equity index provider MSCI, they have a new member.

Inflation, not jobs, may hold key to Fed exit

June 6, 2013

It’s that time of the month again: Wall Street is anxiously awaiting the monthly employment figures – less because of its interest in job creation and more because of what the numbers will mean for the Federal Reserve’s unconventional stimulus policies.

Brazil’s capital controls and the law of unintended consequences

June 5, 2013

Brazilian economic policy is fast becoming a shining example of the law of unintended consequences. As activity fades and inflation picks up, the government has tried several different measures to fix the economy – and almost every time, it ended up creating surprise side-effects that made matters worse. Controls on gasoline prices tamed inflation, but opened a hole in the trade balance. Efforts to reduce electricity fares ended up curbing, not boosting, investment plans.

Best days over for emerging market local currency bonds?

May 15, 2013

Local currency bonds in emerging markets, like most financial assets, have enjoyed a solid rally on the back of ample global central bank liquidity. But the good times may be coming to an end, according to a report from Capital Economics. That’s because there’s only so much boost the securities can get out of the monetary easing efforts of the Federal Reserve and other major central banks, the firm says.

from Global Investing:

Show us the (Japanese) money

April 30, 2013

Where is the Japanese money? Mostly it has been heading back to home shores as we wrote here yesterday.