Greece and its creditors arrived at a deal on Monday morning that outlines next steps towards providing €85 billion in additional bailout funds. While this is unambiguously good news for equities markets, the impact on business in Greece and the…
Is the euro really depreciating?
Eurozone news has been dominated by two stories in 2015: Greece’s debt crisis, and the euro’s “tumble” on foreign exchange markets. Greece is undoubtedly facing a debt crisis, but is the euro truly depreciating? The currency has certainly weakened against the…
Emerging Market View: What Our Analysts Are Reading
The European Central Bank (ECB) is ready to “step up the pressure” in its deflation battle, said ECB President Mario Draghi addressing the Euro Banking Congress in Frankfurt on Friday. According to the Wall Street Journal, ECB is ready to expand its…
Emerging Markets Outlook Bright in 2012
Original Article in MarketWatch Matt Lasov, director of global research at Frontier Strategy Group, said the emerging markets’ performance in 2012 depends on their relationship to the euro zone. “The euro zone is in a recession that is likely to…
Threat of Eurozone Crisis Spillover Weakens the Ruble
Trend The ruble is depreciating against the dollar as markets anticipate Russia will run a deficit in 2012. We expect the Russian government to intervene in the foreign exchange market in Q1 2012, but a significant decline in oil prices…
The Sovereign Debt Crisis in Emerging Markets (Part I)
What happened? In 2008, banks stopped lending as they were forced to use capital to absorb losses from deteriorating investment portfolios. When lending dried up, business struggled, industrial production contracted, and jobs were lost. Job loss drove the consumer into…
Germany Structuring Path to Euro Exit for Italy, Greece
German Chancellor Angela Merkel’s party voted today to provide a means for Euro-zone markets to voluntarily exit the Euro without losing access to the EU’s free trade zone. This move confirms that Germany is not willing to save the Euro…