Emerging Markets

Michael McTague | |

As some aspects of the pandemic recede, or at least as some businesses re-start in the US and the wealthier countries, many wonder what is happening to emerging markets? China enjoys a recent burst of economic activity. Russia, another member of the BRICS (Brazil, Russia, India, China, South Africa) nations, sings the oil blues as dollars per barrel scrape the bottom of… the barrel. Exports and manufacturing remain on hold. Savings dry up even in the wealthier countries. Brazil’s Buzios auction disappointed. Risk is everywhere. Investors only plunk down their money on attractive opportunities.

Reuters | |

The U.S. economy is more resilient than many think, giving equities room to rise further while benchmark Treasury yields will likely lift to over 1.25% next year, said Rick Rieder, BlackRock’s Chief Investment Officer of Global Fixed Income.

U.S. government stimulus and Federal Reserve monetary policy are helping cushion the economy from the slump during COVID-19 and businesses operating virtually have posted productivity gains, Rieder said at the Reuters Summit. U.S. economic growth rebounded in the third quarter as more than $3 trillion in government COVID-19 relief helped millions of unemployed people cover expenses.

Reuters | |

Global debt is expected to soar to a record $277 trillion by the end of the year as governments and companies continue to spend in response to the COVID-19 pandemic, the Institute of International Finance said in a report on Wednesday.

The IIF, whose members include over 400 banks and financial institutions across the globe, said debt ballooned already by $15 trillion this year to $272 trillion through September. Governments - mostly from developed markets - accounted for nearly half of the increase.