Enter Details

Comment on stories, receive email newsletters & alerts.

This is your permanent identity for Business Insider Australia
Your email must be valid for account activation
Minimum of 8 standard keyboard characters


Email newsletters but will contain a brief summary of our top stories and news alerts.

Forgotten Password

Enter Details

Back to log in

This Is A Great Description Of The Forces Affecting Emerging Markets, And Why They Are Getting Shellacked

Shrimp burmese thailandPaula Bronstein / GettyBurmese migrants workers peel shrimp at a shrimp factory in Mahachai, Thailand.

Here’s a great paragraph on emerging markets from Kit Juckes of SocGen:

There has been a shift in the balance of global growth as Chinese demand for raw material wanes, and as higher wages and strong currencies make many EM economies less competitive. Meanwhile, the Fed policy cycle IS turning, and 4 years of capital being pushed out in a quest for less derisory yields, are ending. This isn’t a repeat of the 1990s Asian crises, because domestic conditions are completely different but it is a turn in the global market cycle. We need to transition from a world where investment is pushed out of the US/Europe/Japan to one where it is pulled in by attractive prospects. When that happens, flows will be differentiated much more from one country (em or otherwise) to another. But for now, we’re just waiting for global capital flows to calm down. In the meantime, We’ll watch the high-beta assets and currencies rally, and we’ll wait to sell again. Core G10FX views (more weakness ahead for the AUD and CAD) are unchanged.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at

Tagged In