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
EM Middle East Sovereign Bonds Impacted by the Israeli-Palestinian Conflict
Since the commencement of the Israel-Palestine conflict, the 5-year CDS (Credit Default Swap) for Middle East sovereign bonds has experienced a significant surge. 📈 Notably, the market's response doesn't reflect heightened concern. This is evident as US equities have continued to climb since the conflict's onset, while interest rates have surged back to previous highs. 📈📊 Thus far, the impact has primarily reverberated in the commodities market, with fluctuations affecting oil and gold prices. Additionally, the Middle East sovereign countries in the EM (Emerging Markets) segment have also felt the repercussions. 🛢️💰 Is the market right to be this complacent in the face of ongoing geopolitical tensions?
Emerging market stocks have fallen to their lowest valuation relative to the S&P 500 in AT LEAST 36 years
Source: Barchart, Bloomberg
