Emerging Markets

This is a quote from a speech Federal Reserve Board Vice Chair Janet Yellen gave yesterday at the Annual Meeting of the National Association for Business Economics in Denver, Colorado (emphasis added): I noted previously--and it is now…

From the Friday BBH FX Special. Also see Win Thin's Thursday comments on this here. Recent weeks have seen much talk about "currency wars". This talk suggests that many countries are seeking the devaluation of their currencies in…

Morgan Stanley has an interesting piece out today, arguing there is  no 'currency war'... yet. Win Thin made some points on this score yesterday, pointing to real effective exchange rates in developing countries. Morgan Stanley's Manoj…

by Win Thin With all this talk about currency wars, several points need to be made.  The most important one that we have been stressing is that EM currencies are stronger now than they were a year ago, hardly the stuff of competitive…

Gross says that Pimco is looking to high growth economies for both bond and equity plays. The key for them is not to play the liquidity seeking return trade (like 100-year Mexican paper). Rather they want to find low volatility, high return…

From Win Thin Inflation data out of Asia today points to rising risks of food-driven inflation. While that should not have monetary policy implications if due solely to supply side disruptions, it could lead to policy responses if…

India:  Earlier today India lifted the cap on foreign ownership of government and corporate bonds.  This had been anticipated, but it runs counter to the rash of media reports suggesting that rise of beggar-thy-neighbor policies…

Currency performance this week:  The biggest EM gainers vs. the dollar this past week were HUF, RON, CZK,PLN, MXN, TRY, and ZAR, while the only EM losers vs. the dollar this past week were RUB, PHP, CLP, COP, IDR, and ARS. …

At the start of the summer, the two legs that had supported the dollar had given way. The European financial crisis eased and the U.S. economic momentum flagged. The summer months saw these developments extend. European countries on the…

by Claus Vistesen (with apologies to Frederick Goodall) The financial and economic discourse is a funny beast really; it can, if harnessed properly, shed light on future investor and market performance, it can give a diversified and…