EMs under pressure give money managers a jolt

EMs under pressure give money managers a jolt
Emerging markets are heading for their worst month since February.
AUG 15, 2023
By  Bloomberg

Argentina and Russia are giving money managers a brutal reminder this week of idiosyncratic risks in emerging markets. 

In Argentina, the surprise win of Javier Milei in the primary elections has unnerved investors, forcing the government to devalue the currency by 18% on Monday. In Russia, the central bank called an extraordinary policy meeting for Tuesday after the ruble crashed through the 100 per dollar level for the first time since March 2022.

“There’s a lot of pressure on EM assets right now,” said Aninda Mitra, a macro and investment strategist at BNY Mellon Investment Management in Singapore. “Investors are caught between a hawkish Federal Reserve, a China slowdown, plus we’ve got these local idiosyncratic factors that are flaring up.”

Emerging market stocks and currencies are already set for their worst month since February amid a surge in Treasury yields and as China faces the threat of deflation.

Latest News

JPMorgan reopens fight with fintechs, crypto over fees for customer data
JPMorgan reopens fight with fintechs, crypto over fees for customer data

The Wall Street giant has blasted data middlemen as digital freeloaders, but tech firms and consumer advocates are pushing back.

The average retiree is facing $173K in health care costs, Fidelity says
The average retiree is facing $173K in health care costs, Fidelity says

Research reveals a 4% year-on-year increase in expenses that one in five Americans, including one-quarter of Gen Xers, say they have not planned for.

Advisor moves: NY-based Coastline wealth adds three teams with over $430M in assets
Advisor moves: NY-based Coastline wealth adds three teams with over $430M in assets

Raymond James also lured another ex-Edward Jones advisor in South Carolina, while LPL welcomed a mother-and-son team from Edward Jones and Thrivent.

Fintech bytes: Vestwell comes through for underserved savers with multilingual support
Fintech bytes: Vestwell comes through for underserved savers with multilingual support

MyVest and Vestmark have also unveiled strategic partnerships aimed at helping advisors and RIAs bring personalization to more clients.

UBS profit beats estimates as Ermotti sees brighter outlook
UBS profit beats estimates as Ermotti sees brighter outlook

Wealth management unit sees inflows of $23 billion.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.