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Fed’s Printing Press Favors Emerging Markets (Blackrock blog, 2 min read) Emerging market equities have outperformed since the Fed restarted its balance sheet expansion late last year. With the Fed, ECB and BoJ all committed to further asset purchases in 2020, EM equities should continue to benefit, with China looking particularly cheap.
The U.S. Dollar and Emerging Market Assets (Blackrock blog, 2 min read) The US dollar is poised for a stable-to-weakening trend in the next 6 to 12 months as interest rate differentials move in favour of EM, and the trade truce reduces the safe haven demand for the dollar. Geopolitics and an unexpectedly hawkish Fed are the risks to watch.
The Oil Boom You Haven’t Heard of (OZY, 3 min read) Azerbaijan once accounted for half of all global oil output. Three oil booms later the country no longer ranks among the world’s top producers but Baku is looking to position itself back on the oil map. If previous transformations are anything to go by, don’t rule them out.