BIITS Replacing BRICs in Emerging Markets

Emerging markets risk shattering into BIITS.Investors in these markets are becoming more discerning about where they put their money, shying away from countries such as Brazil, India, Indonesia, Turkey and South Africa. Behind the discrimination is a new-found focus on current-account deficits and structural weaknesses exposed by the likelihood of less stimulus from the Federal Reserve and cooling demand in China, according to economists from HSBC Holdings Plc, JPMorgan Chase & Co. and International Strategy & Investment Group LLC.

http://tinyurl.com/m9qb4yr

Should U.S. Be Treated Like An Emerging Market?

 

After a partial government shutdown, a near-miss on a potential debt default and a Chinese ratings agency downgrade, why doesn't the U.S. get treated like an emerging market?  Pundits have compared the U.S. with developing nations for years, citing issues ranging from crumbling infrastructure to healthcare to education, but in the wake of the 16-day government shutdown and near-default on the national debt, the comparison has moved away from the fringes. Chinese rating agency Dagong cut its rating on U.S. debt to parity with Brazil, with a negative outlook. 

http://tinyurl.com/lxla3dw

Emerging Markets Chart That Says 'Aggressively Buy'

Investors who were eventually won over by the merits of backing emerging markets will have been left disappointed by returns over the past year.  The promise has long been that poorer parts of the world, such as China and India, will rapidly catch up with the wealth of the West, and that investors here could profit from that transformation, albeit with a bumpy ride along the way. 

http://tinyurl.com/nprwlpv

Best Way To Invest In Emerging Markets

There are three ways to get exposure to emerging markets, according to Barron’s Shuli Ren:

Buy an emerging market index 
Buy a global materials indexBuy a basket of multinationals with heavy emerging markets exposure.

I’ve written about the first option recently, giving my recommendation on choosing the right emerging market ETF.  The most direct route I have found is via the EG Shares Emerging Market Consumer ETF (ECON). 

http://tinyurl.com/mtjbu63

Hyundai's Third-Quarter Profit Advances In China, Brazil

Hyundai Motor Co., South Korea’s largest carmaker, reported its first profit increase in four quarters after sales rose in China and demand for hatchbacks helped boost deliveries in Brazil.  Third-quarter net income climbed 5.6 percent to 2.14 trillion won ($2 billion) from a year earlier, the Seoul-based company said today. That compares with the 2.15 trillion won average of 25 analysts’ estimates compiled by Bloomberg.

http://tinyurl.com/klah4ry

Okay To Like Emerging Markets Again?

Have emerging market assets finally embarked on a rally which can stick?   Quite a few analysts seem to think so, including those who have been cautious or outright bearish in the  past.  One of these is Societe Generale’s Benoit Anne.

http://tinyurl.com/mkb794r

Yum to Invest $10B in Emerging Markets Push

Yum! Brands Inc. (YUM), the owner of the KFC and Taco Bell fast-food chains, and its partners will spend $10 billion over the next seven years adding restaurants in emerging markets to tap increasing demand for eating out.  The investments will help Yum increase its outlets in these countries to more than 20,000, Chief Executive Officer David Novak said in an interview yesterday. 

http://tinyurl.com/pjx2lkd

Liquidity Flowing Back Into Emerging Markets

In an interview with ET Now, Joel Bloomer, Head of Equity and Credit Research, Asia Pacific, Morningstar, shares his views on global equity markets. Excerpts:  ET Now: Why are all equity markets moving up in a synchronized manner when growth concerns are still evident?

http://tinyurl.com/qho3c7b

South African Stocks Hit Record Peak

Emerging stocks hit five-month highs on Monday, boosted by expectations that China will keep up its strong growth performance and the Federal Reserve will maintain monetary stimulus this year.  South African stocks hit new record peaks after touching an all-time closing high on Friday as positive China data has boosted the outlook for mining and other companies sensitive to Asian demand.

http://tinyurl.com/q929uyn

Debt Deal Done, Are Emerging Markets Set to Soar?

With the removal of a major market overhang following a deal to avoid a U.S. debt default, investors have begun to wonder: are emerging markets set to soar?  "We expect the news to sustain the re-pricing of risk assets that got underway in September," Tim Condon, head of research for Asia at ING, said. "We now think emerging market equity will outperform developed market equity in the current quarter."

http://tinyurl.com/p5jk7rt

Nestle Sees Emerging Markets Lift Sales Growth

Nestle said an improvement in emerging market demand helped to lift sales growth in the third quarter, reassuring investors worried by recent negative news from European peers Danone and Unilever.  The world's biggest food group and its rivals have been grappling with sluggish consumer demand in austerity-hit Europe, where prices for Nestle's products continued to fall, and a slowdown in many emerging markets. But Nestle said on Thursday that it had seen a slight pick-up across all its markets, which helped to boost its share price by 2 percent in morning trade.

http://tinyurl.com/pbuzwoo

Emerging Markets' View Of The D.C. Debacle

As disgusted as most Americans are with the dysfunction on display in Washington D.C. it is nothing compared with the observations of our trade partners overseas. Having long been the leaders of ‘democratic capitalism’ in the world and encouraging other countries to follow a similar path our government is highlighting the seedy underbelly of our democratic system—partisan posturing combined with fighting within parties to the point of complete dysfunction. Our partners and competitors overseas are taking notice

http://tinyurl.com/n5g5gjg

The Still-Emerging Markets

Today’s turbulence in emerging-market equity markets has triggered a wave of obituaries for their growth miracles of recent decades. But confusing short-term wobbles with terminal decline is a gross misreading of what is happening. The wave of industrialization and urbanization that is boosting the incomes of millions of people in emerging economies has not run its course.

http://tinyurl.com/momnmul

Finance Minister of the Year for Emerging Europe 2013

“The Turkish story stands out as the prime example of how numerous emerging market countries have not only managed to turn around their fiscal situation in the past years but also to consolidate the backdrop and increase fiscal credibility at a time when G7 countries are struggling to deal with an ever-increasing debt burden and an ageing population,” says Simon Quijano-Evans, head of emerging markets research at Commerzbank.

http://tinyurl.com/kjs7her

Gulf Companies Join Emerging Market Rush to Borrow

A spate of Persian Gulf companies are looking to raise debt, joining a similar rush in other global emerging markets, after the U.S. central bank delayed cutting its easy-money program.  Concerns about the Federal Reserve tapering its $85 billion-a-month bond-buying program had hurt the appetite for riskier debt in the past few months amid worries about an end to the massive liquidity that has flowed into emerging markets.

http://tinyurl.com/m2oruon

Yellen Nomination Positive for Asian Economies

Plans by the White House to nominate Janet Yellen to lead the U.S. Federal Reserve are good news for Asian economies. Stocks and currencies across the region were battered this summer due to concerns the Fed will soon begin pulling back on an extraordinary monetary stimulus program that has buoyed global markets.

http://tinyurl.com/koklayo

Best Way To Invest In Emerging Markets

There are three ways to get exposure to emerging markets, according to Barron’s Shuli Ren:

1. Buy an emerging market index
2. Buy a global materials index
3. Buy a basket of multinationals with heavy emerging markets exposure

http://tinyurl.com/mtjbu63

Asia to Overtake US As Top Spot For Millionaires

The Asia-Pacific region, which includes Australia, China and India, is on course to topple the US as being home to the majority of the world’s millionaires by next year.  The region held the title in 2011, having done better than the US, which was suffering in the aftermath of the banking crisis.  From 2007 to 2012, Asia-Pacific's millionaire population and wealth increased at double and triple the rates of the rest of the world.

http://tinyurl.com/or9dywe

The Chart That Says 'Aggressively Buy'

Investors who were eventually won over by the merits of backing emerging markets will have been left disappointed by returns over the past year.  The promise has long been that poorer parts of the world, such as China and India, will rapidly catch up with the wealth of the West, and that investors here could profit from that transformation, albeit with a bumpy ride along the way.

http://tinyurl.com/nprwlpv

More Companies to Call Emerging Markets Home

Emerging markets will be the headquarters to thousands more of the world’s largest companies — as many as half — in the next decade or two, a study published by the McKinsey Global Institute said Thursday.

http://tinyurl.com/pc836q8

Emerging Markets to Shake Up Fortune 500 List

Just a decade from now, some global industry leaders could be companies you may not have heard of, based in cities you probably haven't visited before.  Companies based in emerging markets will account for more than 45 percent of the Fortune Global 500 ranking by 2025, up from 26 percent currently, according to a new report by McKinsey Global Institute published on Thursday.

http://tinyurl.com/ksywhg6

Emerging Markets Rise As Investors See Chance To Buy

Emerging market stocks snapped five days of declines yesterday as stronger manufacturing data from Turkey, Hungary and China eclipsed a partial US government shutdown.  The MSCI emerging markets index had climbed 0.5 percent to 992.73 by 1.41pm in London after a week-long decline had dragged valuations to a three-week low.

http://tinyurl.com/olhuhya

Sanofi's Continues Push Into Emerging Markets

French drugmaker Sanofi SA will not be deterred from expanding in emerging markets through acquisitions despite government crackdowns on pricing and closer scrutiny of western pharmaceutical companies' business practices, its CEO said.

http://tinyurl.com/ohjbwnq