Emerging Markets Daily - July 26
Tunisia PM Sacked, Thai Baht Hit Hard, The Olympics and Japan Investment?, The New Commodities Boom and Brazil, Africa and Electricity
The Top 5 Emerging Markets Stories from Global Media - July 26
Tunisia PM Sacked after Violent Covid Protests
BBC
“Tunisia's president has sacked the prime minister and suspended parliament, after violent protests broke out across the country.”
“Thousands of protesters, angry at the government's mishandling of Covid-19, had flooded onto the streets and clashed with police on Sunday.”
“President Kais Saied announced he would take charge with help from a new prime minister, saying he intended to bring calm to the country.”
“But opponents branded his move a coup.” BBC News reports
Once Asia’s Top Performer, Thai Baht is Becoming Region’s Worst-hit Currency
CNBC
“The Thai baht, once the strongest-performing currency in Asia before the pandemic, has been steadily falling in 2021 and is this year’s worst-hit currency in the region, according to Mizuho Bank.”
“The Japanese bank pointed to ‘uncharacteristic under-performance in the Thai Baht, rendering it the worst performer to date in 2021’ in a note on Friday.”
“The Thai baht has plunged more than 10% against the U.S. dollar year-to-date, as of Monday morning, according to Refinitiv Eikon data.”
“Thailand’s currency is the weakest-performing this year compared to other major Asia Pacific currencies, according to Refinitiv. Against the greenback, the Japanese yen is nearly 7% lower, the Malaysian ringgit declined by 5%, while the Australian dollar is down 4.43% year-to-date.” Weizhen Tan reports
Are the Olympic Games a Springboard for Investors to Revisit Japan?
The National
“The Nikkei 225 hit a 30-year high in February, company dividends remain resilient and the country is home to leading tech and car brands.”
“As the eyes of the world turn on Japan during the troubled Tokyo Olympic Games, investors will be wondering whether its stock markets can still deliver gold.”
“The last time its markets led the field was back in the 1980s, when the Nikkei 225 flew to the dizzying height of 38,957.44 on December 29, 1989, during what is now known as the Japanese asset price bubble.”
“…Despite this bad luck, investors should consider increasing their exposure to what is still the second largest stock market in the world after the US, totalling 5.9 per cent of the MSCI World Index.” Harvey Jones reports
Can a New Commodities Boom Revive Brazil?
Financial Times
“Roughly every other glass of orange juice drunk around the world comes from the orchards of São Paulo state, boasts Duarte Nogueira.”
“…‘Coffee, sugarcane (cana), citruses, meat (carne) and cellulose’, the main ingredient for paper. ‘Agriculture is growing more and more and it is not only a virtue of our region, but of Brazil.’”
“The South American nation is now one of the world’s top producers of foodstuffs — from soyabeans to sugar and beef to bananas. Blessed with an abundance of natural wealth, like vast iron ore deposits and deep sea oil reserves, Brazil also supplies some of the most important raw materials for modern economies.”
“Latin America’s largest economy is now riding a rally in prices for many of these basic goods, as Covid-19 restrictions lift and worldwide growth returns. Among bullish traders there is even talk of a new commodities ‘supercycle’.” Michael Pooler and Bryan Harris report
About 770 Million Africans Have No Access to Electricity
AllAfrica
“Nigeria accounts for about 10 per cent of the African population without electricity.”
“The number of people without access to electricity in Africa dropped from almost 860 million in 2018 to 770 million in 2019, the International Energy Agency (IEA) has said.”
“This represents 38 per cent of the population in the continent.”
“In its report, 2019 Africa Energy Outlook, IEA said energy access policies continue to bear fruit in Africa, with data showing important progress.”
“The report gave for the first time an assessment of off-grid electricity access, sourced from government and commercial data.” Kabir Yusuf reports