THURSDAY, 18 JUL 2019

 

CONNECT

Facebook Linked In Twitter
Cytavision_Superpack_10/07-28/07_728x90px
GloriaJeans_266x90px
IMH LTD

Nicos Anastasiades Congratulates Ursula von der Leyen

Christine Lagarde Resigns as Head of IMF

IMH LTD
GAP_Group_2019_468x60px

Emerging Markets Then and Now

 

PREVIOUS

NEXT

 
 
 
Emerging Markets Then and Now

Emerging Markets Then and Now

In late January, emerging-market investors ran for the exits – again. The mere possibility of Fed tapering sent them scurrying in June 2013, while the actual start of tapering and weak economic data out of China triggered the most recent selloff. 

 

The MSCI Emerging Market Index is off nearly 6% since the beginning of 2014, and currencies from the South Korean won to the South African rand have plunged relative to the dollar.

 

But panic in these markets is nothing new. And the macroeconomic factors driving investor flight in 2014do share some similarities with those that sparked the Asian financial crisis in 1997. The dollar is strong, the yen is depreciating, and commodity prices are falling – none of which is particularly good for emerging market economies. 

 

Both in the late 90s and today, a period of prolonged low interest rates in the US prompted investors to buy stocks and bonds in emerging markets, only to see them reverse course when American real interest rates started rising again.

 

At the same time, some very important difference between now and 1997 lead Credit Suisse* to believe that the most recent events will not develop into a full-blown crisis. 

 

Using Credit Suisse as its source, The Financialist highlights what has gotten better in emerging economies since the Asian financial crisis, as well as what has taken a turn for the worse.

 

*Credit Suise’s coverage of global emerging markets covers: Argentina, Brazil, Chile, China, Colombia, Czech Republic, Hong Kong, Hungary, India, Indoesia, Israel, Korea, Malaysia, Mexico, Philippines, Peru, Poland, Russia, Singapore, South Africa, Taiwan, Thailand, Turkey, Ukraine, and Venezuela. 

FROM AROUND GOLDNEWS

   

Expenditure for Environmental Protection Activities in Industry In 2017 Shows Increase

Expenditure for environmental protection activities in industry in 2017 recorded an increase compared to 2016, the Cyprus News Agency reports. On the basis ...
   

Limassol Boat Show 2020

The sixth edition of the largest boat show in Cyprus and the Eastern Mediterranean region will be proudly hosted at Limassol Marina from 7th to 10th May 2020. ...
   

Ursula von der Leyen Elected First Female European Commission President

German minister wins narrow backing of MEPs to succeed Jean-Claude Juncker, The Guardian reports. Ursula von der Leyen has been confirmed as the European ...
   

Christine Lagarde Resigns as Head of IMF

Christine Lagarde has said she will step down as managing director of the International Monetary Fund (IMF), the BBC reports. It comes ahead of a decision ...
   

Pound Hits Two-Year Low as City Fears of No-Deal Brexit Intensify

Sterling falls by a cent against dollar after Tory leadership candidates’ backstop remarks, The Guardian reports. The pound has fallen to its lowest ...
   

Sir Philip Green's Arcadia Rescue Plan Faces US Legal Challenge

Topshop owner’s plans threatened by legal action from New York property group, The guardian reports. Sir Philip Green’s rescue restructure of ...
   

Shipping Deputy Minister and Shipping Chamber President Discuss Ways of Enhancing Cooperation

The recently elected President of the Cyprus Shipping Chamber, Philippos Philis had an official courtesy meeting with the Shipping Deputy Minister, Natasa ...
   

Credit Risk Management, SMEs and Family Firms

Professor Panikkos Poutziouris, Rector and Professor in Entrepreneurship and Family Business at UCLan Cyprus will be one of the speakers in the upcoming ...

HEADLINES

MOST POPULAR

Limassol_Economic_19/06-18/10_300x250px
Gold_Issue_300x250px

IMH LTD