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Back in black
Weekly investor research
05 June 2017
Brazil is back in the black as growth turns positive for the first time since Q4 2014. The central bank signalled a slower pace of cuts in recognition of the lower likelihood of pension reform in the near-term. Maldives joins the family of EM sovereign issuers, but the bond will not be in the index and we explain why. Maduro offers a referendum on a new constitution: what does it mean? Zuma survives an attempt to unseat him, but his problems are not over. Ecuador’s Moreno surprises with a number of market friendly announcements. The Lower House in the Philippines approves a tax reform. India’s growth dips in Q1 2017. Peru promises to unlock infrastructure spending using funds from the Fiscal Stabilisation Fund. The US data last week was not directional enough to warrant a major shift in market expectations with respect to the Fed or recent market dynamics, in our view.