Investment strategy Correspondent
Sujata's Feed
Sep 3, 2015

As with Greece, Ukraine debt swap may not be the last word

LONDON, Sept 3 (Reuters) – Bondholders cheering Ukraine’s
debt swap face the risk that Kiev will return to the bargaining
table within a few years, following the path Greece trod after
its 2012 restructuring.

Ukraine’s sovereign bonds have rallied 40 percent to trade
up to 75 cents per dollar of face value following the Aug. 27
agreement which wrote off a fifth of the $18 billion principal
and lengthened maturities by four years.

Sep 2, 2015

Emerging stocks fall for third day on growth fears

LONDON, Sept 2 (Reuters) – Emerging equities fell for the
third day running on Wednesday, approaching six-year lows on
deepening concerns about global growth, as oil price weakness
fuelled another drop in the Russian rouble.

Data this week showed manufacturing and exports contracted
in several emerging economies. Chinese output contracted in
August at the sharpest pace in three years while European and
U.S. growth also eased. That has kept emerging assets close to
multi-year or record lows.

Sep 1, 2015

Weak growth keeps emerging assets on the ropes

LONDON, Sept 1 (Reuters) – A raft of weak economic data kept
emerging assets on the ropes on Tuesday, with stocks extending
August’s heavy losses and central banks scrambling to control
currencies’ relentless slide against the dollar.

Data showed Chinese and Taiwanese manufacturing contracted
at the fastest pace in three years while South Korean exports
fell the most in six years, reflecting weakness within emerging
economies as well as their overseas markets.

Aug 28, 2015

European funds buy bonds, keep cash levels high given equity volatility – Reuters poll

LONDON (Reuters) – Spooked by China’s equity rout and the possibility of a deeper financial crisis, European investors have increased exposure to safe-haven bonds to the highest level in 2015 while keeping cash allocations near three-year highs.

A Reuters poll conducted between Aug. 10 and 27 found investors’ nerves jangled by China, where a currency devaluation and wild equity volatility have raised concern that the economy could slow more drastically than investors had foreseen – a fear reinforced by a steady stream of weak data.

Aug 26, 2015

Analysis – FX pegs under pressure in emerging markets as commodity prices fall

LONDON (Reuters) – Plunging commodity prices are testing the viability of emerging currencies’ long-standing pegs to the dollar, with some already abandoned as countries balk at the cost of clinging to fixed exchange rates.

Kazakhstan unshackled its tenge last week, and bets are growing that from Hong Kong to Saudi Arabia, dollar pegs are at risk.

Aug 26, 2015

FX pegs under pressure in emerging markets as commodity prices fall

LONDON (Reuters) – Plunging commodity prices are testing the viability of emerging currencies’ long-standing pegs to the dollar, with some already abandoned as countries balk at the cost of clinging to fixed exchange rates.

Kazakhstan unshackled its tenge last week, and bets are growing that from Hong Kong to Saudi Arabia, dollar pegs are at risk.

Aug 26, 2015

Emerging market assets weaken again despite China’s rate cut

LONDON, Aug 26 (Reuters) – Emerging market assets resumed
their slide on Wednesday, shrugging off China’s interest rate
cut and focusing on growing signs of economic weakness in the
world’s second-largest economy and across the developing world.

Oil and metals prices lingered at multi-year lows, keeping
pressure on currencies and stock markets and leading markets to
give up gains triggered by the Chinese move to cut rates and
bank reserve ratio requirements. Analysts reckon the reserve
cuts will boost liquidity more than $100 billion.

Aug 24, 2015

Emerging assets hit new multi-year lows on China contagion

LONDON, Aug 24 (Reuters) – Contagion from China’s equity
malaise spread across emerging markets on Monday, driving a 4
percent tumble in the benchmark equity index while currencies
fell 1-2 percent to multi-year lows against the dollar.

Fears for the world’s No. 2 economy pushed Chinese mainland
stocks listed in Shenzen and Shanghai into their biggest one-day
fall since February 2007. They lost more than 8 percent and are
now in the red for 2015 .

Aug 12, 2015

Ukraine goes head-to-head with creditors for last ditch deal

KIEV/LONDON Aug 12 (Reuters) – Ukraine and a group of its
largest creditors will meet on Wednesday for make-or-break talks
that look highly unlikely to deliver an amicable deal to
restructure $19 billion of debt.

The often bitter negotiations have dragged on for five
months, snared on whether the bonds’ face value should be
written down. Kiev says it will halt debt payments if an
agreement is not reached this week.

Aug 12, 2015

Central banks wade in as forex losses spiral

LONDON, Aug 12 (Reuters) – Emerging stocks, bonds and
currencies extended losses on Wednesday after China allowed its
yuan to weaken for the second straight day, with some central
banks forced to curb sharp falls in their currencies.

The yuan touched 6.4508 per dollar, its lowest
since July 2011, after authorities lowered the midpoint in the
yuan’s trading range by 1.6 percent. Offshore-traded yuan lost 2
percent.