The Imminent Inclusion of Indian Sovereign Bonds in EM Bond Indices is Attracting Huge Foreign Inflows👇
Source: Neha Sahni, JP Morgan
Record inflow to EM equities
Emerging Market Stocks see a weekly inflow of $20.8 billion, the most in history source : BofA, barchart
Egypt: The currency is in free-fall
Black market rate: 1 dollar = 70 pounds Official rate: 1 dollar = 30.9 pounds The pounds has weakened by nearly 24% in the market in 2024. Egyptian billionaire Naguib Sawiris criticized delays in enacting a long-awaited devaluation of the pound, suggesting authorities match the spiraling black market rate to end the nation’s chronic foreign-currency shortage. Postponing reforms is “a disaster that will increase the extent of the critical situation we are in,” Sawiris said in an Arabic-language post on social media platform X. Egypt’s pound has plunged on the parallel market to 68-70 per dollar in recent days, leaving it more than 50% weaker than the official rate of about 30.9. Source: Bloomberg, Ziad M Daoud
Did you know that Brazil has been leading Latin America in solar panel purchases? 🤔
Source: Markets & Mayhem
BofA Harnett: "...new 'BRICS 10’= 51% of global CO2 emissions, 46% of population, 45% of energy consumption, 45% of oil production, 37% of GDP (at purchasing power parity)…
yet <25% of global market cap, and EM equities also at 52-year low vs. US" Source: BofA, TME
🚨BRICS DOUBLES OVERNIGHT Yesterday, the UAE, Saudi Arabia, Ethiopia, Egypt, and Iran are officially members of BRICS.
They join Brazil, Russia, India, China, and South Africa as a formidable economic powerhouse, representing 29% of global GDP and 43% of global oil production. Although tensions exist between member states such as China and India, BRICS is a growing challenge to the G7. President Xi: “I wish to extend a warm welcome to leaders of new BRICS members.” Source: IMF, Reuters, China Daily, Mario Nawfal
Tavi Costa -> Brazilian equity markets have experienced near-record foreign investments in the last month
Despite all the skepticism about $EWZ is outperforming the S&P 500 by 23 percentage points in the last 2 years. The aggregate market cap of Brazilian stocks relative to its overall money supply remains near historical lows. Source: Crescat Capital, Bloomberg
Argentina's currency has lost 96% of its value vs the USD in the past decade
In that period, the central bank has increased the monetary base by 2,046% to finance government political spending... Source: Bloomberg
