emerging markets

BRICs breaking

It Is Time To Break Up The BRICS

BoAML | One of the most popular ideas in emerging markets economics is grouping Brazil, Russia, India and China together. Here we argue that grouping these very different economies together for economic forecasting was never very useful in the first place. The only thing they have in common is size. The recent divergence in the group makes it even less useful.

MSCI Emerging Markets turns 30.

Emerging Markets: Good-Bye Crisis, Hello Bubble?

BoAML | After the break we maintain our pre-summer bullishness on EM and think an EM bubble is possible by next year given DM policies and improving EM fundamentals. That said, we would wait for the ongoing correction to run its course before adding.

world trade 777x4001

Emerging Markets Trade Engine Has Lost Power

AXA IM | International trade volume1 is not expanding as fast as before the Global Financial Crisis (GFC). The average annual growth rate in international rate volumes almost halved to 2.4% in 2009-2015 from 5.1% in 2001-2008. For the first time in over four decades, international trade is growing less than world real GDP (the latter recorded at 4.2% in 2001-2008 and 3.3% in 2009-2015).


Have the BRICs Hit a Wall? The Next Emerging Markets

Which countries are poised to become the next high-growth developing markets?Until recently, when people talked about “emerging markets,” they were referring to the BRIC economies: Brazil, Russia, India and China. Undeniably, these countries have changed the face of global business over the past 20 years. Yet lately, the BRICs have been crumbling a bit, sparking many reports about their lackluster performance.

janet swearing

Fed: “Just Hike Rates”

Fernando Barciela | The Federal Reserve’s minutes which were released last Wednesday show that a rate hike is firmly on the cards for this December. But almost everybody seems to think that – if it happens – the rate increase probably will be small, a quarter of a percentage point at most. And, also very importantly, the pace of rate increases after that hike will be gradual. Before any further decision about future hikes the Fed will want to study the consequences.

A close up of a dollar note

The dollar’s unsettling upsurge

MADRID | March 15, 2015 | By JP Marín ArreseThe markets have discounted an unchallenged drift upwards of the US currency, after the ECB embarked on its ambitious asset-buying scheme. Yet few anticipated the move might come so soon and reach such a rapid pace. As the Euro turns its retreat into a disorderly rout, emerging economies like Brazil are falling under unbearable pressure. The dollar’s swift upsurge has pounded global markets.