The contrarian case for emerging markets

TWENTY years ago, on August 17th 1998, the Russian government devalued the rouble, defaulted on its domestic debts and suspended all payments to foreign creditors. It was one of the most dramatic days of a year-long emerging-market crisis that began with the devaluation of the Thai baht. South Korea and Malaysia would suffer brutal recessions. […]

‘Getting the dollar wrong is deadly’: A rapid rise in the dollar could cause a domino effect across emerging markets

Christian Charisius/Reuters The US dollar has already been rallying this year, which puts emerging markets with dollar-denominated debt in a hard position. A currency crisis in Turkey could lead to a “rapid appreciation,” analysts warn. Follow the dollar in real time here. A rallying US dollar has been clobbering emerging market currencies this year, and […]

Fallout from the Turkish lira’s meltdown is starting to spread to markets around the world

Matt Dunham – WPA Pool/Getty Images Global markets are under pressure following the plunge in the Turkish lira late last week. The lira’s fall continued in Asian trade on Monday — it plunged as much as 10% when markets opened. The weakness is starting to spread to other emerging market currencies, with the South African […]

Blockchains could breathe new life into prediction markets

WILL a Democrat win America’s next presidential election? Will Tesla file for bankruptcy by the end of 2019? Punters now have a new option for such bets: Augur, an online prediction market. Whether it takes off will be a gauge of the viability not only of such markets but of decentralised applications built on blockchains, […]

$160 million corruption scandal in Argentina roils its financial markets

Rolando Andrade Stracuzzi/Clarin via AP More than a dozen former Argentine government officials and business executives have been arrested in a large scale corruption scandal. The investigation is throwing Argentina upside down just as it gears up for economic recovery.  Watch the Argentine peso trade in real time here. Just as Argentina looked poised for […]

Japan still has great influence on global financial markets

IT IS the summer of 1979 and Harry “Rabbit” Angstrom, the everyman-hero of John Updike’s series of novels, is running a car showroom in Brewer, Pennsylvania. There is a pervasive mood of decline. Local textile mills have closed. Gas prices are soaring. No one wants the traded-in, Detroit-made cars clogging the lot. Yet Rabbit is […]

Asian markets are sinking after the latest salvo in Trump’s trade war with China

The US government has released a list of $ US200 billion worth of Chinese goods that will be subject to new 10% tariffs. The news has not gone down well in Asian financial markets, especially in China. Stock futures point to losses, steep in some instances, in European and US markets when trade resumes later […]

The growth of index investing has not made markets less efficient

IN THE autumn of 1974 Paul Samuelson, a prominent economist and Nobel prizewinner, issued a challenge. Most stockpickers should go out of business, he argued. Even the best of them could not always beat the market average. But there was a snag. “If this advice to drop dead is good advice, it is obviously not […]

World running out of sand, making it the black market’s hot commodity

A global shortage of sand is prompting black-market gangs to steal large amounts from rivers and beaches. Scientists are warning that the global supply of sand is slipping through our fingers. Statistics show that worldwide, we go through 50 billion tons of sand every year – twice the amount produced by every river in the […]

ZTE shares tank in Asian markets after it agrees to pay $1.4 billion settlement to the US

REUTERS/Sergio Perez Investors wiped about $ 3 billion off embattled Chinese telecommunications giant ZTE Corp’s market value as it resumed trade on Wednesday after agreeing to pay up to $ 1.4 billion in penalties to the U.S. government. ZTE was crippled when the United States imposed a seven-year supplier ban on the company in April after it […]