Investment strategy Correspondent
Sujata's Feed
Mar 4, 2014
via Global Investing

More development = fewer violent deaths in India

A recent report highlights the importance of economic development for India and indeed for all developing countries. It also shows why we should worry about the slow pace of reform in India and how that has hit growth rates.

Bank of America/Merrill Lynch analysts have picked up a report from the Institute for Conflict Management, a New Delhi-based think tank, showing that terrorism-linked deaths in India last year were 6 times lower than in 2001, a development they ascribe to the rapid growth the country enjoyed in this period. The graphic below shows the link:

Mar 4, 2014

Russian assets lead bounce by emerging markets

LONDON, March 4 (Reuters) – Russian equities and the rouble
led gains across emerging markets on Tuesday, amid hopes that a
further escalation of the Crimean crisis could be averted.

Regional assets enjoyed across-the-board gains after
President Vladimir Putin ordered troops involved in a military
exercise in western Russia back to base. Russian stock rose 3.6
percent.

Mar 3, 2014

Russian power play risks full-scale investor exodus

LONDON (Reuters) – Russia’s power play for Ukraine’s Crimea region is putting to flight foreign stock and bond investors, who are rattled by the Kremlin’s overruling of the country’s economic interests in favor of its military ambitions.

Russia’s half-trillion dollars in central bank reserves mean its creditworthiness is not in doubt, and political risk has always been part of the game while investing in Russia.

Mar 3, 2014

Russia bears brunt of emerging markets selloff from Ukraine conflict

LONDON, March 3 (Reuters) – Fears of full-fledged
Russia-Ukraine war reverberated across emerging markets on
Monday, with the hardest hit taken by Moscow, where stocks fell
10 percent and the rouble’s plunge to record lows led to a
surprise interest rate hike.

Ukrainian assets also fell with the two dollar bonds
maturing in 2014 falling by 6-13 points on fears the
near-bankrupt country would not be able to receive external
assistance in time to avoid default.

Feb 28, 2014

Hryvnia gains on IMF hope; Brazil’s real dips

RIO DE JANEIRO/LONDON, Feb 28 (Reuters) – Ukraine’s hryvnia
jumped as much as 10 percent on Friday on hopes of a loan from
the International Monetary Fund, while the Brazilian real slid
0.5 percent after the latest budget data poured cold water on
hopes that the country would halt a deterioration in its fiscal
performance.

Russia’s rouble gained slightly but stayed near five-year
lows to the dollar on Friday, pressured by fears about
instability in neighboring Crimea.

Feb 28, 2014

Rouble slides further, hryvnia gains on IMF loan hopes

LONDON, Feb 28 (Reuters) – Russia’s rouble stayed near
five-year lows to the dollar on Friday, hit by fears about
instability in neighbouring Crimea, but Ukraine’s hryvnia
rebounded, trading 5-10 percent firmer on hopes of an IMF loan.

The rouble and other emerging currencies were also pressured
by jitters over the recent volatility in the Chinese yuan which
posted its biggest daily fall since China created its foreign
exchange market in 1994.

Feb 27, 2014

“Toxic Trio” of emerging markets complicates life for bond funds

LONDON, Feb 27 (Reuters) – High-yielding dollar bonds from
Venezuela, Argentina and Ukraine, once at the core of most
emerging debt portfolios, are deep in the red, leaving investors
scrambling for the returns they once provided.

Dubbed the Toxic Trio by one investor, the countries have
seen sharply higher political tension, falling central bank
reserves and a default probability of over 50 percent in the
coming five years, as priced by debt insurance markets.

Feb 27, 2014

Russia, neighbors spooked by geopolitics; Brazil supported by GDP

RIO DE JANEIRO/LONDON, Feb 27 (Reuters) – Geopolitical
tensions drove Russia’s rouble to five-year lows against the
dollar while pushing Ukraine’s hryvnia 9 percent lower, but
Brazilian markets were supported by data showing the economy
grew far more than expected at the end of 2013.

Russia’s defiant response to the political turmoil in
neighboring Ukraine spooked investors in Europe and Asia, with
Moscow quoted as saying fighter jets along Russia’s western
borders had been put on combat alert.

Feb 27, 2014

Russia, neighbours spooked by geopolitics; hryvnia sinks

LONDON, Feb 27 (Reuters) – Geopolitical tensions
reverberated through emerging markets on Thursday, driving
Russia’s rouble to five-year lows against the dollar while the
newly unshackled Ukrainian hryvnia tumbled 9 percent and central
European assets also weakened.

Russia’s defiant response to the political turmoil in
neighbouring Ukraine spooked investors, with Moscow quoted as
saying fighter jets along Russia’s western borders had been put
on combat alert.

Feb 26, 2014

Ukraine currency hits record low, Brazil real snaps winning streak

SAO PAULO/LONDON, Feb 26 (Reuters) – Ukraine’s hryvnia
currency tumbled on Wednesday to a record low, as investors were
unsettled by the country’s murky political and economic
outlook, while Brazil’s real retreated after a five-day rally.

Ukraine remains without a settled government several days
after President Viktor Yanukovich was overthrown, raising fears
the country will fail to secure outside financial support in
time to repay debts as its own hard currency reserves dwindle.