HALISTER1: BlackRock Says EM Assets to Benefit From U.S.-Led Reflation

BlackRock Says EM Assets to Benefit From U.S.-Led Reflation

(Bloomberg) -- Rising wages, nominal growth and inflation reinforced by an expected shift to fiscal stimulus – should be a big positive for many EM assets, BlackRock global chief investment strategist Richard Turnill writes in note.
  • Greater infrastructure spending should boost demand for the commodities exported by EM producers
  • EM currencies are weaker, current account balances appear in better shape and commodity markets have found better demand/supply balance
  • Prefers selected commodity-producers; wary of manufacturing countries susceptible to U.S. trade stance
  • Favors hard-currency EM bonds particularly in Russia, Colombia and Kazakhstan
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Source: BFW (Bloomberg First Word)

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Richard Turnill (BlackRock Inc)

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