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Emerging Markets Daily - February 12
India Moves to Ban Crypto, Franklin Templeton Says Domestic Demand Drives EM, Oil Fizzles as Dollar Climbs, Copper Surges in "Perfect Storm," South African Pharma
The Top 5 Emerging Markets Stories - February 12
India Moves to Ban All Cryptocurrency
Domestic Demand Drives EM, Frontier Markets Rising, Says Franklin Templeton
Dollar Climbs, Oil Fizzles
Copper in “Perfect Storm” of Growth
South African Pharma Steps Onto Global Stage
India Moving to Ban All Cryptocurrency - CryptoBriefing
“India is moving to ban all cryptocurrencies despite the lack of backing from India’s Reserve Bank, according to recent reports…”
“While cryptocurrency did not feature in its financial plan, the new crypto bill will address the crypto legislation with talks of a blanket ban. The finance ministry official told the media that the bill would ban all cryptocurrencies except fiat-backed digital currency issued by India’s Reserve Bank. According to the law, ‘transaction directly via foreign exchanges’ will be prohibited too.”
“Investors will be given three-to-six months to unload their positions,” CryptoBriefing reports.
Domestic Demand Drives EM Equities, Frontier Markets Rising - Seeking Alpha/Franklin Templeton
“Emerging Asian equities outpaced broader EMs in January. East Asian markets were largely buoyant. In many EMs, a central new reality is the rise of domestic demand as a driver of growth. Often overlooked, we believe that the frontier markets (FMs) asset class continues to exhibit significant long-term growth potential.”
“Emerging market equities started off the year strong, with positive performances overall in January. Our Emerging Market Equity team provides an overview of what drove market moves, and why it has an eye on frontier markets in particular when looking longer term,” Franklin Templeton Investments writes in Seeking Alpha.
Dollar Climbs, Oil Rally Fizzles - Bloomberg
“Oil slipped below $58 a barrel in New York as a recent rally fizzled on strength in the dollar. Futures fell for a second session, after their longest rally in two years. The enduring pandemic continues to crimp fuel consumption from China to the U.S, with the International Energy Agency cutting its demand forecast for 2021 and describing the market as fragile. The U.S. government earlier this week also predicted the nation’s petroleum demand will likely need much more time to recover.”
“Despite the bearish sentiment, oil is still set to eke out a weekly gain and some are optimistic on the long-term outlook, including the IEA. Bank of America Corp. became the latest institution to join a chorus of bullish voices, saying demand could rise at its fastest pace since the 1970s over the next three years. The structure in the Brent market surged again on Friday, indicating tighter supplies despite the drop in headline prices,” Bloomberg reports.
Copper Bulls See “Perfect Storm” of Growth - Mining Journal
"‘The curve, options activity, pricing and trade commentary all point to us being [in] a bull market, the likes of which has not been seen for at least 10 years and some would argue ever,’ Marex Spectron's Alastair Munro said.”
“His colleague Anna Stablum noted the perfect storm for copper of a weaker US dollar, positive Chinese data and tight markets, with concentrate shipments delayed at least three to four weeks out of northern Chile due to heavy swells...”
“Among the majors, Anglo American closed up 4.75% in London and Freeport-McMoRan touched a one-year high of US$33.97 intraday before closing down 2.45%. Finally, market futures were mixed and China has started a week-long holiday for Lunar New Year celebrations,” Mining Journal reports.
South Africa Pharma Steps Up Onto Global Stage with Vaccine Co-Production - African Business
“The announcement by global pharmaceutical giant Johnson and Johnson (J&J) that it would partner with Durban-based drug maker Aspen to produce Covid-19 vaccines in November is testament to South Africa’s growing technological capabilities.”
“Africa’s largest pharmaceutical company has the capacity to produce 300m doses a year at its plant in Port Elizabeth where production should begin in April, if the vaccine passes the final stage of clinical trials. As South Africa struggles, along with African counterparts, to secure vaccines, a senior executive at Aspen said that the doses will be destined for J&J’s ‘global supply inventory’, declining to comment on whether any would be used locally.”
“Regardless of the destination, the confidence placed in South Africa by J&J to produce its vaccines is a rubber stamp on the reliability and sophistication of the country’s manufacturing sector,” African Business reports.