By Avantika Chilkoti The Wall Street Journal Wed., Nov. 21, 2018 One winner from oil’s steep fall: emerging markets that are major energy importers. Brent crude, the international gauge for oil, has plunged into bear-market territory, losing more than 20% from its early October four-year high. On Tuesday, Brent tumbled further, losing 6.4% to its lowest settle price since October 2017. Brent’s latest leg down came as U.S. stocks sank into the red for 2018, and West Texas Intermediate, the U.S. benchmark, fell 6.6%. While painful for many investors, oil’s recent travails are a welcome relief to some of the world’s fastest-growing energy importers, including India, Turkey and Indonesia. They have struggled for much of this year with the combination of a stronger dollar and climbing energy costs. “The vast majority of these countries are oil importers,” says Jan Dehn, head of research at Ashmore Group, an emerging-market investment … [Read more...] about Emerging markets get boost from falling oil
Emerging market investment
LONDON: A surging dollar is likely to hit foreign investment into emerging markets this year, the Institute of International Finance (IIF) said today, cutting its capital inflow forecast for this year by US$43 billion to US$1.22 trillion (RM4.8 trillion). The Washington DC-based group, an authoritative tracker of capital flows to and from emerging markets, called the dollar’s rise and higher US yields “a paradigm shift” for investors. As a result, capital inflows would likely hold at the levels seen last year, it said, cutting its previous forecasts from February. “Prospects for non-resident capital inflows to emerging markets this year have deteriorated ... rising US bond yields and a stronger dollar have prompted a ‘sudden stop’ in portfolio flows since mid-April.” As a share of gross domestic product, capital inflows will fall to 3.7% from 4.2% in 2017, it added. Argentina, one of the worst-hit countries, has been forced to seek help from … [Read more...] about Dollar rise a ‘paradigm shift’ for emerging market investment: IIF
FinanceInvesting Veteran investor has been right on vital calls before; there's plenty of reason to think he has a good read on developing Asia By William Pesek February 22, 2018 3:09 PM (UTC+8) Share Tweet Linkedin Print Email Share 0 Comment 0 Investor Jeremy Grantham, 79, is famed for his dour views on the global investment scene. You’d expect as much from a guy whose clients have included US Vice President Dick Cheney. It’s noteworthy, then, that he’s dripping with optimism about emerging-market stocks. In its most recent investment letter, his Grantham Mayo Van Otterloo & Co. advised recipients to go “heavily overweight” on developing markets in Asia and beyond. Grantham is even encouraging his kids to load up on the only asset class, arguably, with the potential to offer 4.5% real annual returns over the next decade. “What I would own is as much emerging-market equity as your career or business risk can tolerate,” … [Read more...] about Grantham gushes about emerging markets – what’s he onto?
Global System for Mobile Communications’ new edition of mobile economy report was launched during the four-day event. The report says the world’s mobile subscriber growth will be driven by developing countries from now on. It has particularly projected a substantial growth in Bangladesh, China, India, Indonesia and Pakistan, as well as markets across Sub-Saharan Africa and Latin America. “There is a growing adoption of mobile-based tools and solutions that aim to spur the digitisation of systems, processes and interactions across a number of industries, especially in low- and middle- income countries,” said Mats Granryd, director general of the GSMA. By 2025, the mobile industry is forecast to reach 5.9 billion subscribers, equivalent to 71 per cent of the world’s expected population by that point. It is also expected that 5 billion subscribers will be using their mobile phones to access the internet, up from 3.3 billion last year. Granryd considers … [Read more...] about Emerging markets on cusp of digital transition
Land and Houses Fund Management (LH Fund) aims to grow its assets under management (AUM) by 40% this year, with a focus on offering new equity investment funds emphasising emerging markets. "We want to use mutual funds as well as property funds and real estate investment trusts, with the two groups expected to contribute 47% and 41% of the total AUM, respectively," said president Chantana Kanchanagama.The company plans to launch 10 equity funds this year to increase its asset size, she said.Year-end AUM is expected to reach 84.4 billion baht in 2018.At the end of 2017, total AUM stood at 59.8 billion baht, down by 11 billion from 70.1 billion in 2016, on the back of a series of bills of exchange (B/E) defaults.This led the company's mutual fund business to shrink to 34% of total AUM in 2017, down from 53% logged in the previous year.But the B/E issuers the firm had invested in have not defaulted, said Mrs Chantana.Managing director Monrat Phadungsit said the new equity funds have set … [Read more...] about LH Fund looks to build up AUM on emerging markets