Creeping Government Role in Emerging Market Businesses are a Worry (Reuters)
John-Paul Smith, known for predicting Russia’s 1998 crisis and for his bearish call on emerging equities at the end of 2010, is bearish on emerging markets because of the increasing role of governments in business across the developing world – usually via holdings in listed companies which are then used to further the state’s policy objectives.
A recent example includes the money-laundering charges against Russian businessman Vladimir Yevtushenkov which many see as a possible play by state-run Rosneft for Bashneft, an oil firm owned by his company Sistema while in Turkey, shares in Bank Asya have tumbled around 40%, which the bank attributes to a systematic government campaign to undermine it.
Smith recently left Deutsche Bank after a four-year stint and has teamed up with Emad Mostaque, who was his colleague at Pictet Asset Management before he left in 2010 to join Deutsche, to form Eclectic Strategy which will provide advisory services on emerging markets to clients.
To read the whole article, Emerging markets veteran to focus on governance risks at new consultancy, go to the website of Reuters.
- Societe Generale Survey: Fund Managers Turning Bearish on Emerging Markets (CNBC)
- Emerging Market Monitor: Hit by the Trump Trade (Pictet Asset Management)
- Terry Smith: Emerging Markets to Outperform Over the Long-term But Brace for Volatility (FE Trustnet)
- Seven Reasons India Is Primed for Growth (Enterprising Investor)
- Deutsche Bank: Emerging Market Rally is a False Dawn (Barron’s)
- S&W’s McGrath: Emerging Markets Are at the Perfect Entry Point (FE Trustnet)
- Why China Will Keep Buying US Treasury Debt (SCMP)
- Investing in Cyprus ADRs / Cyprus Stocks List
- The Mexican Peso as a US Election Barometer (Bloomberg)
- AmCham Chile’s President Talks Up “Consensus,” “Shared Goals,” “Internal Dialog…”