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China’s vaccine to be distributed to EM countries
Weekly investor research
28 September 2020
China said it will share a China-made coronavirus vaccine with other EM countries, such as Brazil, Indonesia, and Turkey as soon the vaccine is fully developed. FTSE Russell approved Chinese government bonds for inclusion in the World Government Bond Index (WGBI). Colombia cut the policy rate and announced an increase in its precautionary credit line with the International Monetary Fund (IMF). Mexico cut its policy rate by 0.25%. The Malaysian government was challenged by the opposition, but seems to have secured enough support to remain in place for now. Turkey’s central bank hiked the policy rate by 200bps to contain TRY depreciation. Hungary increased the policy rate by 15bps to provide stability to HUF. Brazil’s current account posted a large surplus. Romania’s parliament approved a 40% increase in pensions. Zambia issued a consent solicitation to defer coupon payments on its bonds until April 2021. Costa Rica unveiled a fiscal adjustment programme. The Azerbaijan and Armenian armies clashed on the Nagorno-Karabakh disputed area.