Aerial drone view of beautiful caribbean tropical island Cayo Levantado beach with palms and boat. Bacardi Island, Dominican Republic.
By Ben Underhill
The Emerging View

The case for frontier debt

It’s a catchy axiom that “frontier markets are what emerging markets used to be,” and there’s some truth to it. As emerging markets (EMs) grow and become more interconnected with the global economy, they are increasingly more efficient and correlated...

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Federal Reserve - Central Banking
Weekly investor research

Weak US payrolls all but assure a September rate cut

Weak US payrolls point to a Sept Fed cut; US10Y ~4%. Senate set to confirm Stephen Miran as temporary Fed chair. French PM Bayrou likely ousted; Japan’s Ishiba resigns. OPEC+ to add 137k b/d in Oct. Poland cuts 25bp. Argentina midterms setback for Milei.
Images of the NANAY River and its large floodable forests that are home to a diversity of fauna and flora. It is a popular place for tourists to get away from the city and delve into nature deep in the Amazon rainforest of Peru.
Weekly investor research

Brazil’s inflation in decline

US data steady; focus shifts to jobs. Appeals court nixes “reciprocal tariffs” (SCOTUS pending). Ukraine ramps refinery strikes. Indonesia protests. Thailand PM dismissed. Brazil Aug deflation; Türkiye Q2 +4.8% growth; Egypt cuts rates 200bps.
The beautiful, colorful city of Oaxaca
Weekly investor research

More US policy drama, more EM outperformance

EM outperformance in Aug; US reflation vs EU deflation. Trump to fire Fed Gov Lisa Cook. FR PM Bayrou faces 8 Sep no-confidence. G7 little result. Bond funds +$97bn/4w. Argentina assets fall on scandal. Moody’s reviews PEMEX for upgrade after $12bn plan.

Latest Insights

Weekly investor research
Weekly investor research

Don’t stand in the way when China goes big

PBoC cut policy rates by 20bps, reserve requirement ratio by 50bps, RMB 700bn allocated for stock buybacks. Politburo pledged to support the housing market and signalled fiscal support. Israel killed Hezbollah leader Hassan Nasrallah...
Polygonal representation of a bull symbolizes the strength and upward momentum of a bull market.
The Emerging View

A new bull market cycle in Emerging Market equities

A decade of tech-driven US stock market outperformance has contrasted with tepid returns for Emerging Market indices. But past returns are not an indicator of future performance, and the drivers of markets over the next decade will be quite different...
Weekly investor research
Weekly investor research

Positive credit rating momentum continues in EM

US Fed’s 50bp cut led to risk rally last week. Major escalation of conflict between Israel and Hezbollah. Dovish moves from Chinese central bank. Sri Lanka elect left-wing President, sparking concerns over IMF programme. Brazil hike 25bp...
Weekly investor research
Weekly investor research

Brazil set to buck the trend and hike rates

60% probability of FOMC cutting 50bp now priced. More weak demand data from China. Javier Milei exercised veto power of a fiscal expansion policy in Argentina. Sri Lanka election outcome meaningful for IMF programme. IMF set to meet this month...
Sculpture of the Angel of Independence
Weekly investor research

Mexican judiciary reform clears another hurdle, but more remain

Soft US economic data set the tone for asset prices. Oil prices hit yearly lows and kept plunging. Frontier stocks continue to outperform, illustrating their diversification benefits. Chinese monetary intervention supporting yuan. Mexican judiciary...
Fed rate cuts & EM Equities
Video

WEBINAR: Fed rate cuts & EM Equities

Dhiren Shah (Lead Portfolio Manager of the Ashmore EM Equity Fund) and Gustavo Medeiros (Ashmore’s Global Head of Research) discuss Fed rate cuts & EM Equities.
Beautiful shanghai yuyuan garden at night.
Weekly investor research

Strong month for EM debt ends in softer week

Upwards GDP revisions in US lead markets to reprice ‘bullish scenario’ of rate cuts and soft-landing. Strikes in Israel after nationwide protests against Netanyahu’s handling of hostage negotiations. China considers a plan to allow homeowners to...
City shot of Kuala Lumpur, including a view of the Petronas Towers.
Weekly investor research

More dovish Fed supporting EM returns

Jackson Hole pivot from Powell leaves 50bps September cut on the table. Brent crude rises back above USD80 on heightened geopolitical risk and Libyan supply constraints. China and Indonesia hold policy rates, signalling a pivot after the Fed’s first...
Balance concept - Red and white glossy balls on plank.
Weekly investor research

Risk off, risk on.

Very strong week for global equities, spurred by benign US retail sales and jobs data. MSCI ACWI is now just 1.7% away from July record high. Jokowi’s last budget kept an austere framework in Indonesia.The Thai parliament quickly appointed Paetongtarn...
Bear and Bull sitting at a table and chairs having a drink together, with rough seas in the background.
The Emerging View

Be greedy when others are fearful: But no rush

Warren Buffett’s mantra of “being greedy when others are fearful” has delivered good returns for faithful investors over the long term. Our analysis shows that asset allocators who buy Emerging Market (EM) assets during volatility spikes have delivered...
Weekly investor research
Weekly investor research

Volatility is back

Markets in panic mode this morning after position unwinding…
The US Election’s impact on Emerging Markets
The Emerging View

The US Election’s impact on Emerging Markets

Since early June, Trump has been polling as the most likely candidate to win the 2024 presidency. After a disastrous July, Biden dropping out of the Presidential race is a boost for the Democrats. Kamala Harris is a better candidate and may gather...
Crowded scene
Weekly investor research

Crowded positions unwound as EM upgrades gather pace

Unwind of crowded positions dominated price action over the last two weeks. G-20 OECD leading indicator revisions show a weaker-than-expected cycle. Discussions for a ceasefire in Ukraine intensified. Heightened risk of conflict between Iran and...
Money Pile $100 US dollar bills
Weekly investor research

Softening US data weighs on Dollar, buoying EM assets.

Trump shooting changes the dynamics, but not the trends, of the US presidential race. EM assets outperformed last week, buoyed by a weaker Dollar. China further restricted short selling as data weakened ahead of the Third Plenum. South Korea discussed...
National flags
Weekly investor research

Encouraging EM stories, turbulent Western politics.

US Treasuries rally despite ‘Trump premium’ post-debate. In the UK, Labour won a ‘loveless’ landslide. Far-right tide stemmed in France as left-wing coalition won most votes. Purchasing Managers Indices softened further in Europe, resilient in EM Asia
Amuse bouche - Food in a spoon. Taste gastronomy finger food.
Weekly investor research

Amuse-bouche

The US Presidential debate and the first round of the French general elections are just starters for the political trends impacting the west. In contrast, the President of South Africa appointed its national unity government, which is likely to lead to...