{"id":563668,"date":"2021-07-12T04:00:17","date_gmt":"2021-07-12T04:00:17","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/07\/12\/the-global-economys-post-covid-boom-could-insulate-emerging-markets-from-trouble-in-the-oil-market\/"},"modified":"2021-07-12T04:00:17","modified_gmt":"2021-07-12T04:00:17","slug":"the-global-economys-post-covid-boom-could-insulate-emerging-markets-from-trouble-in-the-oil-market","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/07\/12\/the-global-economys-post-covid-boom-could-insulate-emerging-markets-from-trouble-in-the-oil-market\/","title":{"rendered":"The global economy\u2019s post-covid boom could insulate emerging markets from trouble in the oil market"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-09\"><\/a> <strong>OPEC+ agreement or no OPEC+ agreement, commodity prices will continue rising<\/strong> <strong>regardless<\/strong>, benefiting commodity-exporting emerging markets, strategists from JPMorgan Chase and Goldman Sachs have said, according to <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-07-11\/commodity-boom-dwarfs-oil-spat-as-emerging-markets-set-to-win?srnd=premium-middle-east&sref=mmeFTDW1\">Bloomberg<\/a>. The <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/9c61744e-0421-4786-9794-4f8c9b67bed4\">failure to reach an agreement<\/a> to raise oil supply last week won\u2019t impact the recent boom in commodity prices, which will continue to rise on strong demand in economies recovering from the pandemic, they said.<\/p>\n<p><strong>Investors don\u2019t seem to be too worried about the possibility of a new oil price war on<\/strong> <strong>emerging markets<\/strong>, saying that the surge in global demand for raw materials and consumer products will backstop their economies. And one currency strategist claimed that currencies most exposed to movements in the price of crude should be relatively insulated against a major drop in the price of crude thanks to cheaper valuations and tightening cycles in some EM central banks such as Russia and Mexico.<\/p>\n<p><strong>Some net importers are also in line for a shot in the arm should oil prices drop<\/strong>: Major commodities importers such as Egypt and Turkey are set to gain if oil prices drop as their import bills fall.<\/p>\n<p><strong>High inflation isn\u2019t going anywhere soon<\/strong>, according to economists surveyed by the <a href=\"https:\/\/www.wsj.com\/articles\/higher-inflation-is-here-to-stay-for-years-economists-forecast-11626008400\">Wall<\/a><a href=\"https:\/\/www.wsj.com\/articles\/higher-inflation-is-here-to-stay-for-years-economists-forecast-11626008400\"><\/a><a href=\"https:\/\/www.wsj.com\/articles\/higher-inflation-is-here-to-stay-for-years-economists-forecast-11626008400\">Street Journal<\/a>. Average forecasts now expect inflation to increase to 3.2% by 4Q2021 and average 2.58% each year between 2021 and 2023, which would be the highest rate seen since 1993.<\/p>\n<p><strong>Could the Fed move to raise rates sooner than expected?<\/strong> \u201cInflation is expected to surge longer and longer \u2014 longer than the Fed previously thought,\u201d one economist told the journal. \u201cThe Fed is now likely to raise rates in the first half of 2023, although some Fed presidents will be nipping at the bit to move sooner.\u201d The Fed <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/171abcbc-6a2e-44d9-a4e8-12073398c8ab\">last month indicated<\/a> that it could raise interest rates twice in 2023 in response to rising inflation, one year earlier than expected.<\/p>\n<p><strong>France wants countries to be able to impose a 25% tax on multinationals\u2019 income where <\/strong><strong>they are earned<\/strong>. \"I think that the best solution would be a level of allocation of profit of 25% to meet the concerns of some developing countries which are legitimate concerns,\" French Finance Minister Bruno Le Maire <a href=\"https:\/\/www.reuters.com\/business\/finance\/france-pushes-25-target-taxing-multinationals-super-profits-2021-07-10\/\">said<\/a> following the meeting of G20 finance ministers on Saturday, during which they <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/0d0220b3-2500-42b8-a8c1-4418a20dc63f\">signed off on<\/a> the G7-OECD plan to introduce a 15% minimum global corporate tax rate. The rules, which are due to be finalized during a G20 summit in Rome in October, would permit countries to levy a 20-30% tax on excess profits earned by large multinationals (defined as companies with more than EUR 20 bn in annual turnover).<\/p>\n<div class='stock-ticker-panel'>\n<table class='table stock-ticker-table table-striped markets-table'>\n<tbody>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>EGX30 <\/strong><\/p>\n<\/td>\n<td>\n<p>10,153<\/p>\n<\/td>\n<td>\n<p>-0.3% (YTD: -6.4%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-none'>\n<td class='td-list-none'>\n<p><svg class='e-icon e-TypeMarkets'><use xlink:href='#e-TypeMarkets'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>USD (CBE)<\/strong><\/p>\n<\/td>\n<td>\n<p>Buy 15.64<\/p>\n<\/td>\n<td>\n<p>Sell 15.74<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-none'>\n<td class='td-list-none'>\n<p><svg class='e-icon e-TypeMarkets'><use xlink:href='#e-TypeMarkets'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>USD at CIB<\/strong><\/p>\n<\/td>\n<td>\n<p>Buy 15.64<\/p>\n<\/td>\n<td>\n<p>Sell 15.74<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-none'>\n<td class='td-list-none'>\n<p><svg class='e-icon e-TypeMarkets'><use xlink:href='#e-TypeMarkets'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Interest rates CBE<\/strong><\/p>\n<\/td>\n<td>\n<p>8.25% deposit<\/p>\n<\/td>\n<td>\n<p>9.25% lending<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Tadawul<\/strong><\/p>\n<\/td>\n<td>\n<p>10,688<\/p>\n<\/td>\n<td>\n<p>-1.3% (YTD: +23.0%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>ADX<\/strong><\/p>\n<\/td>\n<td>\n<p>6,993<\/p>\n<\/td>\n<td>\n<p>+0.4% (YTD: +38.6%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>DFM<\/strong><\/p>\n<\/td>\n<td>\n<p>2,760<\/p>\n<\/td>\n<td>\n<p>-0.7% (YTD: +10.8%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>S&P 500<\/strong><\/p>\n<\/td>\n<td>\n<p>4,369<\/p>\n<\/td>\n<td>\n<p>+1.1% (YTD: +16.3%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>FTSE 100<\/strong><\/p>\n<\/td>\n<td>\n<p>7,121<\/p>\n<\/td>\n<td>\n<p>+1.3% (YTD: +10.2%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Brent crude<\/strong><\/p>\n<\/td>\n<td>\n<p>USD 75.55<\/p>\n<\/td>\n<td>\n<p>+1.9%<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Natural gas <\/strong>(Nymex)<\/p>\n<\/td>\n<td>\n<p>USD 3.67<\/p>\n<\/td>\n<td>\n<p>-0.4%<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Gold<\/strong><\/p>\n<\/td>\n<td>\n<p>USD 1,810.60<\/p>\n<\/td>\n<td>\n<p>+0.6%<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>BTC<\/strong><\/p>\n<\/td>\n<td>\n<p>USD 34,158<\/p>\n<\/td>\n<td>\n<p>+1.2% (as of midnight)<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p><strong>THE CLOSING BELL-<\/strong><\/p>\n<p><strong>The EGX30 fell 0.3% at yesterday\u2019s close<\/strong> on turnover of EGP 820 mn (33.1% below the 90-day average). Foreign investors were net sellers. The index is down 6.4% YTD.<\/p>\n<p><strong>In the green: <\/strong>MM Group (+1.9%), TMG Holding (+1.5%) and Eastern Company (+0.8%).<\/p>\n<p><strong>In the red: <\/strong>Oriental Weavers (-3.1%), Sidi Kerir Petrochemicals (-2.2%) and Pioneers Holding (-1.9%).<\/p>\n<p><strong>Asian markets are strongly in the green this morning<\/strong>, though futures suggest US shares will fall in early trading while European shares will mostly rise.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>OPEC+ agreement or no OPEC+ agreement, commodity prices will continue rising regardless, benefiting commodity-exporting emerging markets, strategists from JPMorgan Chase and Goldman Sachs have said, according to Bloomberg. The failure to reach an agreement to raise oil supply last week won\u2019t impact the recent boom in commodity prices, which will continue to rise on strong [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7210],"tags":[72,119,926,1253,182,349,724,1701,122,69],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-563668","post","type-post","status-publish","format-standard","hentry","category-planet-finance","tag-enterpriseam","tag-financial-markets","tag-g20","tag-g7","tag-inflation","tag-interest-rates","tag-monetary-policy","tag-oecd","tag-planet-finance","tag-tax","wpautop","entry"],"acf":{"mongo_id":"46837332-31c2-4140-ba19-d8ea60c7bd15","is_powered_by":true,"story_type":"1","photo_url":"","photo_position":"above","related_issue":[563645],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>The global economy\u2019s post-covid boom could insulate emerging markets from trouble in the oil market - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2021\/07\/12\/the-global-economys-post-covid-boom-could-insulate-emerging-markets-from-trouble-in-the-oil-market\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The global economy\u2019s post-covid boom could insulate emerging markets from trouble in the oil market\" \/>\n<meta property=\"og:description\" content=\"OPEC+ agreement or no OPEC+ agreement, commodity prices will continue rising regardless, benefiting commodity-exporting emerging markets, strategists from JPMorgan Chase and Goldman Sachs have said, according to Bloomberg. 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The failure to reach an agreement to raise oil supply last week won\u2019t impact the recent boom in commodity prices, which will continue to rise on strong [&hellip;]","og_url":"https:\/\/enterpriseam.com\/egypt\/2021\/07\/12\/the-global-economys-post-covid-boom-could-insulate-emerging-markets-from-trouble-in-the-oil-market\/","og_site_name":"EnterpriseAM Egypt","article_published_time":"2021-07-12T04:00:17+00:00","author":"enterpriseam admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"enterpriseam admin","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/enterpriseam.com\/egypt\/2021\/07\/12\/the-global-economys-post-covid-boom-could-insulate-emerging-markets-from-trouble-in-the-oil-market\/#article","isPartOf":{"@id":"https:\/\/enterpriseam.com\/egypt\/2021\/07\/12\/the-global-economys-post-covid-boom-could-insulate-emerging-markets-from-trouble-in-the-oil-market\/"},"author":{"name":"enterpriseam admin","@id":"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d"},"headline":"The global economy\u2019s post-covid boom could insulate emerging markets from trouble in the oil market","datePublished":"2021-07-12T04:00:17+00:00","mainEntityOfPage":{"@id":"https:\/\/enterpriseam.com\/egypt\/2021\/07\/12\/the-global-economys-post-covid-boom-could-insulate-emerging-markets-from-trouble-in-the-oil-market\/"},"wordCount":564,"publisher":{"@id":"https:\/\/enterpriseam.com\/egypt\/#organization"},"keywords":["EnterpriseAM","Financial Markets","G20","G7","inflation","interest rates","monetary policy","OECD","Planet Finance","tax"],"articleSection":["PLANET FINANCE"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/enterpriseam.com\/egypt\/2021\/07\/12\/the-global-economys-post-covid-boom-could-insulate-emerging-markets-from-trouble-in-the-oil-market\/","url":"https:\/\/enterpriseam.com\/egypt\/2021\/07\/12\/the-global-economys-post-covid-boom-could-insulate-emerging-markets-from-trouble-in-the-oil-market\/","name":"The global economy\u2019s post-covid boom could insulate emerging markets from trouble in the oil market - 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Perhaps, according to Saudi Arabia\u2019s energy minister, who has warned that a drop-off in exploration could further squeeze supply in an already-tight market, causing prices to surge, according to Bloomberg.Oil prices have been on a tear as of\u2026","rel":"","context":"In &quot;PLANET FINANCE&quot;","block_context":{"text":"PLANET FINANCE","link":"https:\/\/enterpriseam.com\/egypt\/planet-finance\/\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":562151,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/05\/09\/planet-finance-rising-commodity-prices-are-good-news-for-em\/","url_meta":{"origin":563668,"position":1},"title":"Planet Finance: Rising commodity prices are good news for EM","author":"enterpriseam admin","date":"9 May 2021","format":false,"excerpt":"SUPERCYCLE WATCH- Copper prices are at all-time highs off of optimism over an economic rebound that has fueled talk of a commodities supercycle amid soaring raw material prices, Bloomberg reports. The surge in prices is raising the prospect of imminent inflation \u2014 despite some analysts suggesting it will be transitory\u2026","rel":"","context":"In &quot;PLANET FINANCE&quot;","block_context":{"text":"PLANET FINANCE","link":"https:\/\/enterpriseam.com\/egypt\/planet-finance\/\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":560556,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/03\/03\/what-the-markets-are-doing-on-3-march-2021\/","url_meta":{"origin":563668,"position":2},"title":"What the markets are doing on 3 March 2021","author":"enterpriseam admin","date":"3 March 2021","format":false,"excerpt":"EM bonds are likely to continue to oscillate between rallies and sell-offs for the coming months, BlackRock\u2019s Head of Emerging Market Debt Sergio Trigo Paz tells Bloomberg, as investors respond to an increase in US treasury yields and stimulus programs in emerging markets taper out.2021 isn\u2019t 2013, he says: Despite\u2026","rel":"","context":"In &quot;PLANET FINANCE&quot;","block_context":{"text":"PLANET FINANCE","link":"https:\/\/enterpriseam.com\/egypt\/planet-finance\/\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":585054,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/04\/10\/theres-no-knowing-where-crude-prices-are-going\/","url_meta":{"origin":563668,"position":3},"title":"There\u2019s no knowing where crude prices are going","author":"enterpriseam admin","date":"10 April 2023","format":false,"excerpt":"Could weakening demand outweigh OPEC\u2019s supply cuts?","rel":"","context":"In &quot;PLANET FINANCE&quot;","block_context":{"text":"PLANET FINANCE","link":"https:\/\/enterpriseam.com\/egypt\/planet-finance\/\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/4\/402.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":561343,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/04\/04\/what-the-markets-are-doing-on-4-april-2021\/","url_meta":{"origin":563668,"position":4},"title":"What the markets are doing on 4 April 2021","author":"enterpriseam admin","date":"4 April 2021","format":false,"excerpt":"OPEC+ will gradually increase oil production by up to 1.1 mn bbl per day from May-July, the coalition announced after its monthly meeting last Thursday, going against expectations that it would maintain around 7 mn bdp of production cuts introduced a year ago to temper the effect of a covid-19\u2026","rel":"","context":"In &quot;PLANET FINANCE&quot;","block_context":{"text":"PLANET FINANCE","link":"https:\/\/enterpriseam.com\/egypt\/planet-finance\/\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":562685,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/06\/02\/opec-agree-to-raise-supply-in-july\/","url_meta":{"origin":563668,"position":5},"title":"OPEC+ agree to raise supply in July","author":"enterpriseam admin","date":"2 June 2021","format":false,"excerpt":"OPEC+ oil producers have agreed to continue relaxing curbs on oil production in July as a global economic recovery boosts demand for crude in the US, China and Europe, the ministers of the group announced following a virtual meeting yesterday, Bloomberg reports. 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