Yellen Leads Fed Damned Every Way by Emerging Market Angst

Janet Yellen is discovering that when it comes to providing monetary stimulus, theFederal Reserve is damned byemerging markets when it does and damned when it doesn’t. Sixteen months after she used a Tokyo gathering of global policy makers to defend her institution against criticism it was purchasing too many assets, Fed Chair Yellen attends this week’s Group of […]

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Emerging-Market Shakeout Putting Reserves Into Focus: Currencies

Foreign-exchange reserves are emerging as the latest battleground between traders and developing nations trying to stem the worst rout in their currencies since 2008. Nations with the smallest reserves to fend off currency speculators will continue to see their exchange rates under pressure, options prices show. Of the 31 major currencies tracked by Bloomberg, traders […]

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Fink to Mobius Touting Emerging Stocks Fails to Stem Outflow

For all their recommendations to buy emerging-market stocks, the world’s largest money-management firms haven’t convinced some investors that the worst start to a year since 2009 is over. continue reading at bloomberg.com

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China Spurs Market Rout Blamed on Fed, Goldman Sachs AM Says

China’s policy shifts are a bigger driver of the selloff in emerging markets than the Federal Reserve’s decision to dial back stimulus, according to Goldman Sachs Asset Management. Volatility will rise toward its long-term average and that means an increase in risk premiums, said Philip Moffitt, head of fixed income in Sydney for Asia and the Pacific at Goldman Sachs […]

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Mobius Says Emerging-Market Selloff to Deepen Amid Outflows

The worst isn’t over for emerging markets after the benchmark stock index sank to a five-month low and the nations’ currencies tumbled, said Templeton Emerging Markets Group’sMark Mobius. “The negative sentiment is pretty much in place so you can expect a lot more selling,” Mobius, 77, who oversees more than $50 billion in developing-nation assets as an executive chairman at Templeton, […]

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Argentina Seen Extending World’s Biggest Currency Decline

Argentina’s peso is poised to extend losses  government said it will relax controls on the currency, a day after allowing the biggest devaluation since 2002 to arrest a decline in foreign reserves.  Argentines will be able to buy dollars for savings in proportion to their income, Cabinet Chief Jorge Capitanich said today in Buenos Aires. The […]

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World Bank Sees Record Demand for Political Risk Insurance

Investors’ demand for insurance against political risk is on track to match last year’s record as instability persists in the Middle East and disputes in Latin America erode confidence, the World Bank said. Investment insurance for developing economies by a group of the main public, private and multilateral providers reached $45 billion by mid-2013, according to the bank’s Multilateral Investment Guarantee […]

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Argentines Hit With 35% Foreign Credit Card Tax for Holidays

Argentine President Cristina Fernandez de Kirchner increased a tax on credit card purchases abroad ahead of the southern hemisphere summer vacation period to stem a hemorrhaging of reserves to a seven-year low. The government raised a levy on card purchases in foreign currency to 35 percent from 20 percent, according to a resolution published in today’s Official Gazette. […]

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Germany Summons U.S. Ambassador to Explain Merkel Phone Tapping

Germany summoned the U.S. ambassador to the Foreign Ministry over reports ChancellorAngela Merkel’s mobile phone was monitored by U.S. spy agencies as European Union leaders prepared to discuss tighter data protection. Ambassador John B. Emerson was called in for talks with Foreign Minister Guido Westerwellein Berlin this afternoon, a ministry spokeswoman said, speaking under customary condition of anonymity. France summoned […]

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Gold Bulls Raise Wagers Most in Month on Stimulus: Commodities

“Hedge funds’ combined holdings in gold futures rose the most this month as continued U.S. monetary stimulus spurred investors to sell short contracts and sent prices toward the first quarterly advance in a year. The net-long position in bullion jumped 12 percent to 78,654 futures and options in the week ended Sept. 24, the most […]

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