Tag Archives: emerging Asia

Investors should look for the gold of the future: forests

Probably not many people waking up next Sunday 21 March will be aware that it is the International Day of Forests — but they should be.

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Pay emerging markets to help stop climate change

Among developed countries investors, there are various interpretations of the strength of the commitment to environmental, social and governance (ESG) factors in emerging markets, ranging from the cynical to the idealistic.

The cynical view would be that there can be no “real” ESG in emerging markets because too often they are plagued by corruption, therefore investors cannot trust what companies in these countries report.

The idealistic view, on the other hand, would see every little step towards introducing ESG as a wonderful sign that these countries are finally deciding to adopt the same values as Western democracies.

While both extremes are wrong, sadly even the moderate take misses the main difference between emerging markets and developed ones: the effect of development itself on ESG — and in particular on the “E”.

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India could become a ‘swing state’ in a tri-polar world

By Sourajit Aiyer

This article was originally published in Society for Policy Studies’ South Asia Monitor, India.

The United States was the sole superpower after the bipolar Cold-War ended with the Soviet Union’s demise. Then, China started flexing its geopolitical muscle using its manufacturing boom-led foreign exchange to woo developing nations. It is fast expanding its military presence in its neighbourhood.

Russia has become assertive again, and is expanding its influence in Eurasian and Middle East regions, backed by the might of its defence establishment. It is quite a coincidence that the superpowers are often the biggest producers and exporters of defence arms.

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China’s economy could be hit by three big problems

By Sourajit Aiyer

This article was originally published by Foreign Policy News USA.

Can the Chinese economic engine really be hit? It is undergoing a transformational change currently, from investment-driven to a consumption-driven one, but that would still enable it to run at a decent speed.

Here are three distinct themes that can severely hit the Chinese engine in the years to come:

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Indian consumers have actually become poorer

By Sourajit Aiyer

This article was originally published in South Asia Monitor, India.

Some analysts in developed markets insist that future growth will come from emerging markets, whose share of world GDP has increased rapidly over the past decades. But if the India’s consumers are anything to go by, the road ahead for growth is not that straight, and it is quite bumpy.

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Hedge funds turn bearish on emerging markets

Hedge funds have turned bearish on emerging markets on a medium-term outlook, a recent survey of investors showed.

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Equities rally may be on shaky ground

The equities rally seen on Friday and which continued Monday morning in Asia seems to have been caused by bargain-hunting following strong outflows over the previous week.

But it is on shaky ground, because the Fed is unlikely to extend its liquidity provisions, so volatility is on the rise.

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Equities suffer heavy outflows

Equities suffered heavy outflows last week, when investors took refuge in the safety of bonds, according to two reports.

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