{"id":628094,"date":"2018-06-25T04:52:54","date_gmt":"2018-06-25T04:52:54","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2018\/06\/25\/more-trouble-in-the-offing-for-ems\/"},"modified":"2018-06-25T04:52:54","modified_gmt":"2018-06-25T04:52:54","slug":"more-trouble-in-the-offing-for-ems","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2018\/06\/25\/more-trouble-in-the-offing-for-ems\/","title":{"rendered":"More trouble in the offing for EMs"},"content":{"rendered":"<p><strong>More trouble in the offing for EMs? <\/strong>Emerging market currencies are nearing their \u201call-time low,\u201d which suggests that these economies are in for more turbulence as rising US interest rates and trade tensions with China continue to add strain to the global economy, <a href=\"https:\/\/www.ft.com\/content\/0253351c-761c-11e8-a8c4-408cfba4327c\">according to the FT<\/a>. Pressured by a strong USD, liquidity shortages, and large current account deficits, \u201cemerging currencies in the benchmark JPMorgan index have fallen almost 10% this year from their January peak, and would need to fall only another 2.5% to match their all-time low during the China growth scare of January 2016.\u201d Even Asian EMs, which are typically considered safer than their African or South American counterparts, are facing increasing risk, as \u201crepeated rounds of US tariffs will not only damage growth in China but also affect the rest of Asia through the integration of global value chains,\u201d Principal Global Investors\u2019 Seema Shah says. <strong>Last week, investors pulled a <\/strong><a href=\"https:\/\/www.ft.com\/content\/1292df2e-7598-11e8-b326-75a27d27ea5f\"><strong>record of USD 6 bn<\/strong><\/a><strong> out of emerging market equity funds <\/strong>after the US and China threatened to slap the other with additional import tariffs.<\/p>\n<p><strong>Just a hiccup along the way? <\/strong>Trade tensions will have to cool in order for \u201cEM to return to stability,\u201d but investors should not be in a rush to exit, according to Oppenheimer\u2019s Hemant Baijal. Others also seem convinced that the sell-off is a temporary correction amid a stronger USD, which will run its course before \u201cthe smart money\u2026[starts] nibbling in the emerging world.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>More trouble in the offing for EMs? Emerging market currencies are nearing their \u201call-time low,\u201d which suggests that these economies are in for more turbulence as rising US interest rates and trade tensions with China continue to add strain to the global economy, according to the FT. Pressured by a strong USD, liquidity shortages, and [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":628095,"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":[9272],"tags":[72,1510],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-628094","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-macro-picture","tag-enterpriseam","tag-the-macro-picture","wpautop","entry"],"acf":{"mongo_id":"5ad40d77-9454-47a3-b7e0-8a9e328b86ad","order":"0","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2018\/6\/401.jpg","photo_position":"above","related_issue":[628075],"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>More trouble in the offing for EMs - 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\/2018\/06\/25\/more-trouble-in-the-offing-for-ems\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"More trouble in the offing for EMs\" \/>\n<meta property=\"og:description\" content=\"More trouble in the offing for EMs? Emerging market currencies are nearing their \u201call-time low,\u201d which suggests that these economies are in for more turbulence as rising US interest rates and trade tensions with China continue to add strain to the global economy, according to the FT. Pressured by a strong USD, liquidity shortages, and [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2018\/06\/25\/more-trouble-in-the-offing-for-ems\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2018-06-25T04:52:54+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/ent.news\/2018\/6\/401.jpg?fit=%2C&ssl=1\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2018\/06\/25\/more-trouble-in-the-offing-for-ems\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2018\/06\/25\/more-trouble-in-the-offing-for-ems\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"More trouble in the offing for EMs\",\"datePublished\":\"2018-06-25T04:52:54+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2018\/06\/25\/more-trouble-in-the-offing-for-ems\/\"},\"wordCount\":248,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2018\/06\/25\/more-trouble-in-the-offing-for-ems\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2018\/6\/401.jpg?fit=%2C&ssl=1\",\"keywords\":[\"EnterpriseAM\",\"THE MACRO PICTURE\"],\"articleSection\":[\"THE MACRO PICTURE\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2018\/06\/25\/more-trouble-in-the-offing-for-ems\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2018\/06\/25\/more-trouble-in-the-offing-for-ems\/\",\"name\":\"More trouble in the offing for EMs - 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EnterpriseAM Egypt","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/enterpriseam.com\/egypt\/2018\/06\/25\/more-trouble-in-the-offing-for-ems\/","og_locale":"en_US","og_type":"article","og_title":"More trouble in the offing for EMs","og_description":"More trouble in the offing for EMs? Emerging market currencies are nearing their \u201call-time low,\u201d which suggests that these economies are in for more turbulence as rising US interest rates and trade tensions with China continue to add strain to the global economy, according to the FT. Pressured by a strong USD, liquidity shortages, and [&hellip;]","og_url":"https:\/\/enterpriseam.com\/egypt\/2018\/06\/25\/more-trouble-in-the-offing-for-ems\/","og_site_name":"EnterpriseAM Egypt","article_published_time":"2018-06-25T04:52:54+00:00","og_image":[{"url":"https:\/\/i0.wp.com\/ent.news\/2018\/6\/401.jpg?fit=%2C&ssl=1","type":"","width":"","height":""}],"author":"enterpriseam admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"enterpriseam admin","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/enterpriseam.com\/egypt\/2018\/06\/25\/more-trouble-in-the-offing-for-ems\/#article","isPartOf":{"@id":"https:\/\/enterpriseam.com\/egypt\/2018\/06\/25\/more-trouble-in-the-offing-for-ems\/"},"author":{"name":"enterpriseam admin","@id":"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d"},"headline":"More trouble in the offing for EMs","datePublished":"2018-06-25T04:52:54+00:00","mainEntityOfPage":{"@id":"https:\/\/enterpriseam.com\/egypt\/2018\/06\/25\/more-trouble-in-the-offing-for-ems\/"},"wordCount":248,"publisher":{"@id":"https:\/\/enterpriseam.com\/egypt\/#organization"},"image":{"@id":"https:\/\/enterpriseam.com\/egypt\/2018\/06\/25\/more-trouble-in-the-offing-for-ems\/#primaryimage"},"thumbnailUrl":"https:\/\/i0.wp.com\/ent.news\/2018\/6\/401.jpg?fit=%2C&ssl=1","keywords":["EnterpriseAM","THE MACRO PICTURE"],"articleSection":["THE MACRO PICTURE"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/enterpriseam.com\/egypt\/2018\/06\/25\/more-trouble-in-the-offing-for-ems\/","url":"https:\/\/enterpriseam.com\/egypt\/2018\/06\/25\/more-trouble-in-the-offing-for-ems\/","name":"More trouble in the offing for EMs - 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Although EM exports heading to other developing countries did leap from\u2026","rel":"","context":"In &quot;THE MACRO PICTURE&quot;","block_context":{"text":"THE MACRO PICTURE","link":"https:\/\/enterpriseam.com\/egypt\/category\/the-macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/2\/57.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":597046,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/07\/15\/does-currency-devaluation-actually-increase-exports-in-emerging-markets\/","url_meta":{"origin":628094,"position":1},"title":"Does currency devaluation actually increase exports in emerging markets?","author":"enterpriseam admin","date":"15 July 2019","format":false,"excerpt":"Currency devaluation increases exports, right? Not always. The depreciation of emerging-market currencies may actually result in falling exports, research by the Bank of International Settlements (BIS) and the FT suggests. Conventional wisdom tells us that a weakening currency makes exporters more competitive in the international market, causing an increase in\u2026","rel":"","context":"In &quot;THE MACRO PICTURE&quot;","block_context":{"text":"THE MACRO PICTURE","link":"https:\/\/enterpriseam.com\/egypt\/category\/the-macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/7\/980.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":595501,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/09\/29\/ems-need-not-worry-too-much-about-slower-world-growth-analyst-says\/","url_meta":{"origin":628094,"position":2},"title":"EMs need not worry too much about slower world growth, analyst says","author":"enterpriseam admin","date":"29 September 2019","format":false,"excerpt":"Are EMs in a better position than developed markets to withstand slower world growth? Positive real interest rates and smaller fiscal deficits are providing emerging market policymakers a range of policy tools with which to combat the global economic slowdown, argues the Financial Times (paywall). In a time where developed\u2026","rel":"","context":"In &quot;THE MACRO PICTURE&quot;","block_context":{"text":"THE MACRO PICTURE","link":"https:\/\/enterpriseam.com\/egypt\/category\/the-macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/9\/2275.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":593429,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/11\/27\/emerging-markets-fx-funding-needs-to-repay-usd-denominated-debt-to-soar-next-year\/","url_meta":{"origin":628094,"position":3},"title":"Emerging markets\u2019 FX funding needs to repay USD-denominated debt to \u201csoar\u201d next year","author":"enterpriseam admin","date":"27 November 2019","format":false,"excerpt":"Emerging markets\u2019 FX funding needs to repay a decade of USD-denominated debt are on track to \u201csoar\u201d next year, Caroline Grady writes for the Financial Times. EMs have racked up significant debts since the 2008 global financial crisis, and are scheduled to repay nearly USD 800 bn-worth of debt on\u2026","rel":"","context":"In &quot;THE MACRO PICTURE&quot;","block_context":{"text":"THE MACRO PICTURE","link":"https:\/\/enterpriseam.com\/egypt\/category\/the-macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/11\/1221.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":594550,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/09\/01\/emerging-markets-suffer-worst-august-in-decades\/","url_meta":{"origin":628094,"position":4},"title":"Emerging markets suffer worst August in decades","author":"enterpriseam admin","date":"1 September 2019","format":false,"excerpt":"Emerging markets suffer worst August in decades: EM stocks suffered USD 873 bn in losses last month and currencies experienced their worst August since 1997, Bloomberg says. The iShares MSCI EM ETF saw a record increase in short interest as yearly gains on EM ETFs were almost entirely wiped out,\u2026","rel":"","context":"In &quot;THE MACRO PICTURE&quot;","block_context":{"text":"THE MACRO PICTURE","link":"https:\/\/enterpriseam.com\/egypt\/category\/the-macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/8\/38.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":571453,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/05\/12\/ems-turn-to-local-debt-markets-burn-through-fx-reserves-to-weather-the-covid-storm\/","url_meta":{"origin":628094,"position":5},"title":"EMs turn to local debt markets, burn through FX reserves to weather the covid storm","author":"enterpriseam admin","date":"12 May 2020","format":false,"excerpt":"EMs turn to local debt markets, burn through FX reserves to weather the covid storm: Emerging markets are (kind of unexpectedly) not being beaten to a pulp by the current economic crisis \u2014 thanks in large part to their local debt markets, Ashmore global head of research Jan Dehn said\u2026","rel":"","context":"In &quot;THE MACRO PICTURE&quot;","block_context":{"text":"THE MACRO PICTURE","link":"https:\/\/enterpriseam.com\/egypt\/category\/the-macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/5\/124.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/628094","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=628094"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/628094\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/628075"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/628095"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=628094"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=628094"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=628094"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=628094"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=628094"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}