Emerging Markets Offer Growth Opportunties

As defense budgets face downward pressure in the US and Europe, emerging markets are poised to spend more than a trillion dollars on defense over the coming decade, creating business opportunities for Western defense firms.A recent Frost & Sullivan analysis of 10 emerging markets concluded that between 2015 and 2025, emerging markets in Southeast Asia, South America, the Middle East and elsewhere would spend more than $1.2 trillion on defense. Over that period, military expenditures in Colombia, Kuwait, Malaysia, Morocco and Singapore are expected to see 3.6 percent compound annual growth rate, while Angola, Azerbaijan, Peru, Qatar and South Korea can anticipate a CAGR of 2.8 percent.

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Emerging Market Turmoil Isn't Too Bad

Emerging markets are in free fall. Currencies are reeling, stocks are tanking and commodities are sinking, evoking memories for many investors of the financial crisis that hit Asia hard in 1997 and 1998.  Concerns over a slowdown in China have dented confidence, while investors have also fretted over the impact on emerging markets of an imminent increase in interest rates by the U.S. Fed.

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Got China? Two Big Emerging Market ETFs

The two leading exchange-traded funds focusing on emerging markets have very different exposure to now-vulnerable Chinese stocks and will probably diverge further, a new analysis by S&P Capital IQ shows.The Vanguard FTSE Emerging Markets Stock Index ETF recently had 28 percent of its assets invested in China, while Blackrock Inc's iShares MSCI Emerging Markets ETF had 24 percent, even though both are index-following broad emerging markets funds. Chinese stocks fell 6 percent on Tuesday, and further weakness in both that market and China's economy could play out very differently in these two funds.

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Investors Should Stick With Emerging Markets

These are strange times in the investment world and indeed the whole global economy, when many of the certainties that have driven stock and bond prices over the past decade and more appear to have been thrown out of the window.  On this side of the world, we are seeing vast sums flowing into European markets, particularly fixed income. As I write, the five-year German bund is yielding a whole 0.07pc, hardly the type of return that you could build a pension pot on. 

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Heineken Boosted by Emerging Markets

Heineken NV, the world’s third-largest brewer by sales, on Monday reported a rise in profit and revenue as the Dutch beer maker benefited from robust sales in emerging markets and strong demand for its premium brands.  Net profit was €1.14 billion ($1.25 billion) in the first six months of 2015, up 88% from the €631 million it reported a year earlier. Consolidated revenue rose 7% to €9.9 billion from €9.3 billion.

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