Highlights The investors we met with last week were generally optimistic: No one expects a recession before 2020, and none of the investors we spoke with confessed to underweighting equities. Our concerns about inflation are not…
Highlights So What? The odds of the Democrats taking the Senate have fallen. Meanwhile China's policy easing will benefit China itself, or consumer goods exporters, more so than other EMs. Why? China is the fulcrum of global…
Jair Bolsonaro, an ex-army captain and a right-leaning, law-and-order candidate has won a surprising victory in the first round of the Brazilian presidential election (Chart I-1). Bolsonaro came within striking distance of 50%, but did…
Highlights Macro outlook: Global growth will continue to decelerate into early next year on the back of brewing EM stresses and an underwhelming policy response from China. Equities: Stay neutral for now, while underweighting EM…
Highlights Macro outlook: Global growth will continue to decelerate into early next year on the back of brewing EM stresses and an underwhelming policy response from China. Equities: Stay neutral for now, while underweighting EM…
Highlights The Trump administration's decision to effectively tariff the second round of imports at 25% materially raises the odds of another significant uptick in Chinese financial market volatility. Even if China ramps up its…
Highlights President Trump has little to do with the ongoing EM selloff; The macro backdrop is the real culprit behind Turkey's woes, particularly the strong dollar... ... Which is a product of global policy divergence, with the…
Highlights Without a true banking union it is impossible to have a true monetary union. The result is a fragmented monetary policy. A fragmented monetary policy with an inflexibly rigid fiscal policy is a recipe for economic and…