By Gustavo Medeiros, Ben Underhill
The Emerging View

The case for emerging market small cap equities

EM small caps are assumed to be the risky cousin of US small caps. The data says otherwise: nearly nine in ten are profitable, on half the forward multiple of the Russell 2000. We make the case for the asset class.

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Weekly investor research

Oil relief welcome before Wednesday’s FOMC

After 13 consecutive nights of strikes, the US paused its attack on Iran over the weekend, welcome relief ahead of Wednesday's FOMC. Elsewhere, Samsung and SK Hynix signed USD 950bn of US supply deals and Bank Indonesia's governor resigned.
Weekly investor research

The arrival of Kimi K3 tests investors’ faith in Jevons’ Paradox

Chinese open-weight model Kimi K3 raises questions over AI lab monetisation, testing investors’ faith in Jevons’ Paradox. The Korean memory stock unwind extends, US CPI turns negative and the Bank of Korea hikes for the first time in three years.

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Weekly investor research

Gabriel Boric elected President in Chile

China and Turkey eased policy rates, the first minimally, the latter repeating policy mistakes, while Chile, Colombia, Mexico, Hungary and Pakistan hiked policy rates. The centre-left candidate Gabriel Boric was elected as President in Chile.
Market Commentary

A consolidation path for Chinese property

Chinese property markets are going through a significant slowdown that began in Q2 2021. The average slowdown in the previous episodes over the last 20 years lasted four quarters.
Weekly investor research

Argentina gets closer to the IMF as China eases monetary policy

Most EM countries remained in a moderate expansion according to the PMI survey by Markit. Argentina and the IMF nodded to each other. The Brazilian Senate approved a constitutional amendment clearing the path for the 2022 budget.
Weekly investor research

Differentiation is the name of the game

The results of the leading e-commerce Chinese companies highlight the importance of active management in EM equities. Argentina and the IMF sent positive signals towards a new agreement.
Video

'EM in 10' update - October 2021

Today we will be talking about the post-pandemic macro-economic environment. In particular, the outlook for global inflation and how Central banks should react to it.
Weekly investor research

Rising policy uncertainty. Georgieva should stay, Powell may go

A number of senior politicians had their financial affairs exposed by the release of the Pandora Papers, while the managing director of the IMF, Kristalina Georgieva, is under pressure after a report unveiled minor irregularities.
Weekly investor research

EM manufacturing PMI increased, DM declined

Emerging Markets (EM) Manufacturing PMI converged towards Developed Markets (DM). Brazilian exporters are hoarding US Dollars abroad due to political uncertainty. Chile’s Lower House approved another redemption from the pension system.