Yen surged on US Treasury activity amid benign US inflation. India-EU trade and Colombia/Chile fiscal reforms highlight EM shifts. Global diplomacy saw US-Ukraine-Russia talks, while Fitch boosted Türkiye and Gabon resumed IMF engagement.
Watch the replay of this insightful webinar where we discussed the outlook and opportunities for emerging markets hard currency sovereign debt in 2026.
Trump threatens 10% tariffs on goods from 8 European nations from 1 Feb, rising to 25% by 1 Jun unless Greenland sale talks advance. China posts record surplus; FX flows hint USD weakening. US CPI softer; Argentina/Brazil updates; UAE assets up 23%.
In a recent article about China’s inclusion in the MSCI benchmark index the Financial Times columnist John Authers made the following astute observation: “There is something ungainly in the way [China’s index inclusion] has been outsourced to MSCI..."
Global bond funds have seen a dramatic rise in assets over the past 10 years, reflecting the desire of investors to be exposed to a broader, more diverse set of assets away from their home markets.
MSCI’s inclusion of Chinese stocks into its index is another inexorable step towards China’s entry into and eventual dominance of the global financial system.
As investors return to EM local markets on the back of strong performance and a solid outlook they will be forced to inject capital directly into EM economies.
Emerging Markets (EM) asset prices over-reacted to the downside in recent years, especially given that EM fundamentals held up far better than expected in the face of serious headwinds.
Six months ago we outlined the reasons for turning bullish on Emerging Markets local currency bonds for the first time since the Taper Tantrum of 2013.
The US economy is becoming seriously unproductive and the Trump Administration faces an important choice: support American business with heterodox policies such as import tariffs or abandon the strong Dollar policy?
President-elect Donald Trump is threatening US and foreign corporations with new taxes on a daily basis in a clear sign that the risk of US protectionism is rising.
Years of selective buying of Eurozone bonds by central banks and institutional investors has created a strong relative value proposition in favour of Emerging Markets (EM) EUR-denominated bonds.