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20 Apr 2018   Deals, Currencies, Global, Russia & CIS

Top Dealmaker: RenCap’s Dmitry Gladkov on Russian Corporate Issues and Ratings Boost

Renaissance Capital has in the past two years overseen and participated in a significant volume of DCM deals out of Russia and the CIS, positioning itself as one of the top dealmakers for Russian corporates looking to tap the international markets. Dmitry Gladkov, the Global Head of Financing at Renaissance Capital, shares his assessment of the market and the bank’s role in it, as well as his vision of where the investment bank sees the biggest growth opportunities in the coming months.

Brown Brothers Harriman: Emerging Markets Preview for the Week Ahead

EM FX was mixed Friday, capping a mixed week as a whole. COP, CLP, and MXN were the best performers last week, while RUB, BRL, and TRY were the worst. While concerns about trade wars and Syrian missile strikes have ebbed, risks to EM remain elevated. US retail sales Monday and Fed Beige Book Wednesday are the economic highlights this week.

Brown Brothers Harriman: Emerging Markets Preview for the Week Ahead

EM and risk assets came under greater pressure Friday as trade tensions mount. This backdrop is not conducive for EM by any stretch, and unless tensions are ratcheted down, selling pressures are likely to remain in play.

Brown Brothers Harriman: Emerging Markets Preview for the Week Ahead

EM FX was mostly stronger last week, despite the dollar’s firm tone against the majors. Best EM performers on the week were MXN, KRW, and COP while the worst were ZAR, INR, and PEN. US jobs data poses the biggest risk to EM this week, as US yields have been falling ahead of the data. Indeed, the current US 10-year yield of 2.74% is the lowest since February 6. We remain cautious on EM FX, and do not think it can decouple from the majors if dollar strength continues.

The War on Trade: How US Protectionism Threatens Global Stability

The US has taken unilateral action to start a potential trade war with China. This is a policy mistake of gigantic proportions resting on a misunderstanding about how open economies work. The direction of US economic policy contrasts sharply with Chinese policies and we expect only a measured, proportional and targeted response from China, which will remain open to deeper trading ties with third countries, explains Ashmore's Jan Dehn.

Blockchain and the Capital Markets: A Love Story

Driven by the need for greater transparency and efficiency, blockchain is making its first inroads into the capital markets and bank operations more broadly. The technology could be a gamechanger for emerging markets, according to CFOs and analysts.

Brown Brothers Harriman: Emerging Markets Preview for the Week Ahead

EM ended Friday under renewed selling pressures, and capped off a mostly softer week. COP, THB, and TWD were the best performers last week, while TRY, RUB, and ZAR were the worst. Despite a widely expected 25 bp hike, this week’s FOMC meeting still has potential to weigh on EM.

Brown Brothers Harriman: Emerging Markets Preview for the Week Ahead

EM FX ended Friday on a firm note and capped off a mostly firmer week. MXN, KRW, and ZAR were the best performers last week, while CLP, CZK, and PLN were the worst. US jobs data was mixed, with markets focusing on weak average hourly earnings rather than on the strong NFP number. Still, the data did nothing to change market expectations for a 25bp by the FOMC this month.

Brown Brothers Harriman: Emerging Markets Preview for the Week Ahead

EM FX ended Friday on a mixed note, capping off a largely softer week. Best performers last week for MYR and TWD while the worst were ZAR and ARS. US stocks clawed back early losses and ended the week on a firmer note but we think further market turbulence is likely.

Brown Brothers Harriman: Emerging Markets Preview for the Week Ahead

EM FX ended Friday on a mixed note, and capped off a soft week overall. Best performers last week were ZAR, CLP, and PHP while the worst were TRY, ARS, and IDR. Fed Chief Powell’s testimony to Congress will likely draw market attention back to Fed policy.

 

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