Wed, May 4, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

2009 outlook (7) – Opposing views on the fate of emerging markets: economists vs. Ashmore

Wednesday, January 14, 2009

By Benedicte Gravrand, Opalesque London. See yesterday’s 2009 outlook (5) here.

Economists see collapse of emerging markets

A problem with hedge funds is that some of them, according to Saxo Bank’s estimates, are partly correlated to the stock markets and to emerging markets. Chief economist David Karsbøl believes that most hedge funds have not brought their exposure to emerging markets down enough. “This is going to hit them,” he said.

Saxo Bank has very bearish views on E.M. economies which are not expected to recover before the Western economies. “Especially Eastern Europe, which is way too dependent on foreign capital,” he added.

Indeed Strauss-Kahn recently declared the IMF needed an additional $150bln to help emerging economies. “Just to keep Eastern Europe going in the first part of the year,” Karsbøl specified. “And I very much concur.” (See Outlook (4) for more on Eastern European economies.)

The same goes for areas which are export-oriented such as South-East Asian economies. Taiwan’s, South Korea’s and China’s exports have plunged in 2008. And those economies have no plan B, says Karsbøl. The Chinese are now sitting on a huge pile of U.S. debt and they have no plan as to who to produce for, as they have no domestic consumptio......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Hedge funds see $14.3bn outflows in Q1, CTAs and multi-strategy lead net inflows[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry saw net outflows of investor capital in the first quarter of the year, totaling $14.3bn, data from Preqin showed. This continues from the $8.9bn overall net outflows that funds recorded in Q4

  2. Third Point calls Q1 "catastrophic" for hedge funds[more]

    Bailey McCann, Opalesque New York: The first quarter of this year was rocky for hedge funds based on aggregate performance from the industry, but now we are beginning to hear what the managers thought of it as quarterly letters make their way to investors. Dan Loeb, CEO of New York-based $17 bill

  3. Asia - Stabilization of China's capital outflows may hinge on Janet Yellen, Fink says China to do well this year as bubble threat postponed, Chinese hedge fund to invest in India’s infrastructure[more]

    Stabilization of China's capital outflows may hinge on Janet Yellen From Bloomberg.com: Whether China’s recent stabilization of its currency and capital outflows continues -- or downside pressure reignites -- may hinge in large part on Janet Yellen. If the Federal Reserve chair sticks to

  4. …And Finally - After all, judges are human too[more]

    From Newsoftheweird.com: In March, one District of Columbia government administrative law judge was charged with misdemeanor assault on another. Judge Sharon Goodie said she wanted to give Judge Joan Davenport some files, but Davenport, in her office, would not answer the door. Goodie said once the

  5. Comment - Unmasking the men behind Zero Hedge, Wall Street's renegade blog[more]

    From Bloomberg.com: Colin Lokey, also known as "Tyler Durden," is breaking the first rule of Fight Club: You do not talk about Fight Club. He’s also breaking the second rule of Fight Club. (See the first rule.) After more than a year writing for the financial website Zero Hedge under the n