Daily Shot: Emerging woes in emerging markets
- FX market expect a significant in EGP over next year
- Huge slowdown in Venezuelan imports
- Nigeria delays publication of key indicators
- Malaysia's industrial production better than expected
- Turkish stock market recovering afterthe failed coup
- More soggy numbers reported from China
1. Let's begin with emerging markets where Egypt will receive a $12 billion bailout from the IMF (over several installments). The FX markets are still betting on a significant devaluation – nearly 30% over the next year.
2. Bloomberg points out that the deterioration of Venezuela's imports is accelerating the nation's product scarcity and pushing households to the limit.
3. Nigeria delayed its GDP and unemployment release. Budget problems? The numbers look too scary (risking further pressure on the currency)?
4. The Russian GDP contraction was smaller than forecast. Green shoots? See some colour below.
7. EM equity markets continue to do well. Here is the Turkish stock market recovering from the coup-related decline. The second chart shows Mexican stock market index.