Each week Frontier Strategy Group’s global team shares their view on key media stories, and what the implications are for businesses that operate in emerging markets. For more information about how to contact our analysts, send us an email.
Danyi Yang on “G-20 Hears China Say There Will Be No Yuan Devaluation”
“While currency depreciation helps prop up China’s economy, increasing capital outflows and large USD-denominated debts are likely to prevent the Chinese leaders from planning a drastic devaluation. MNCs need to prepare for a gradually weakening yuan for the Chinese market and start contingency planning in the face of heightened currency volatility globally this year.”
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Pratima Singh on “Transform India’: Budget 2016 Prioritizes Agriculture and Rural Development”
“Important themes from this budget include a renewed focus on agriculture and rural development, increased infrastructure investment, and fiscal discipline. No major announcements on easing complex tax laws will keep foreign investment muted. Multinationals can take advantage of increased spending in the agriculture and infrastructure sectors, and should reconsider local manufacturing.”
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Mark McNamee on “Belarus Halts Negotiations with IMF Over New Loan”
“In the latest phase of the East-West balancing act by Belarus, Minsk looks set to receive funds from Moscow to help cover its high debt payments. With the EU also set to fund projects via the EIB and EBRD, Minsk has cleverly positioned itself: receiving help from Russia and the West to address their financial problems by dangling the threat of drifting towards the other side”
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Mario Gutierrez on “Argentina’s Macri Opens Congress Seeking To Seal Holdout Deal “
“Argentina’s President Mauricio Macri will speak before Congress today, seeking to garner cross-party support to put the final seal on a dispute with creditors that has been a drag on the economy for almost 15 years. Macri will try to convince Congress to repeal the so-called Lock Law, which prevents the country from offering better conditions than those offered in the 2005 debt restructuring.”
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Alec Lee on “Brazil’s Justice Minister Quits In Internal Row over Graft Probe”
“The change is a strong sign that the PT and Lula are feeling the heat from ongoing investigations into illegal kickbacks from Petrobras contracts. With nation-wide protests scheduled for two weeks from today, it is possible that this apparent affront to justice could drive heightened dissatisfaction with the current government and ruling party.”
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