Contact lenses, diamonds and boiled eggs are things that are better hard than soft. But economic landings in China? That's a different story.
updated: Thu Jan 19 2012 06:11:00
Robyn Curnow sits down with Christine Lagarde the Head of the IMF to talk about the impact of the eurozone crisis on Africa.
Baseball manager Casey Stengel once famously asked, "Can't anybody here play this game?"
Coming out of the 2008 financial meltdown, emerging markets were a rare bright spot: Places like Brazil, China, and India delivered fast economic growth and double-digit stock gains. But the price you pay for venturing into exotic markets is the risk of sudden, sharp losses.
Stocks have been sinking since April, so you'd think by now there would be an abundance of tempting shares to pick up on the cheap. Alas, you'd be disappointed.
The South Korean central bank surprised the markets on Friday with a $4bn lightning intervention in support of the won, carried out in the last two minutes of trading,
In the late 1980s, developed nations helped bail out Latin America and other emerging markets.
As they cope with the market's twists and turns, investors are finding comfort in a new kind of security blanket: emerging market bonds.
The news keeps getting worse for Sino-Forest's shareholders.
United States bonds are no longer officially rated Triple-A, at least in the eyes of Standard & Poor's.
Though you no longer have to worry about the havoc a debt-ceiling default could wreak on your finances, another threat lingers for Americans: The fallout from any future downgrade of U.S. government debt.
The numbers are in, and America isn't quite the corporate leader it has been in the past. While the U.S. still has more companies than any other country on the Fortune Global 500 list (133), that number has dropped significantly since 2005, when 176 of the world's biggest companies had headquarters in the States.
Investing in China is fraught with risk but there are strategies that can help investors avoid getting burned.
What will drive growth in the advertising industry over the next 10 years?
Vanguard Emerging Markets Stock is the undisputed giant among funds that invest in developing economies like China.
"We're thinking of pulling out of Brazil," the CEO of a large American corporation told me a week ago. The company has been operating there for a few years, doing several million dollars of business. The problem? A series of court judgments so inexplicable, and so crushingly expensive, that the CEO doubts his ability to manage the business. He doesn't see how the rulings can be honest -- even former President Luiz Lula da Silva called Brazil's judiciary a "black box" that's "untouchable" -- and if the system doesn't work, this CEO is bailing out.
The economies of the so-called BRIC nations -- Brazil, Russia, China and India -- are still growing like wild. But for investors, emerging markets had taken a backseat to the United States for much of this year.
updated: Thu Apr 14 2011 21:15:00
BRICS nations, the emerging economic titans of Brazil, Russia, India and China meet. CNN's Eunice Yoon reports.
Rewind to 1991 and you see India buried under an acute debt crisis that forces the nation to mortgage its gold reserves to pay for imports.
The global recovery is moving at two speeds, with emerging countries like China still expanding rapidly as advanced economies like the United States grow at a snail's pace.
updated: Tue Apr 05 2011 07:02:00
The BRIC countries -- Brazil, Russia, India and China ? are those identified as future economic powers. Can South Africa ever be in the club?
When British economist Jim O'Neill coined the term BRIC at the turn of the century -- referring to Brazil, Russia, India and China, countries he predicted would be future economic powerhouses -- it was difficult to imagine how big an impact the acronym would have.
How much of a contrarian is David Herro? These days the fund manager is eschewing scorching emerging markets in favor of the seemingly toxic (European banks) or moribund (Japanese companies). Herro's record suggests a method to his madness.
In a sharp reversal of last year's trend, investors have been pulling money out of emerging market funds and piling into large-cap stocks in more developed economies.
Investing in emerging markets is looking a little pricey right now but there's still plenty of room for investors to get in on the action.
Growing economic imbalances on a global scale and greater income inequality could fuel the next crisis, the head of the International Monetary Fund warned Tuesday.
updated: Mon Jan 10 2011 02:06:00
CNN's Pauline Chiou talks with Simon Godfrey of BNP Paribas about the impact of inflation in emerging markets.
Established already as a key player in Africa, South Africa boosted its image Friday after it was formally invited to join a federation of soaring global economies.
updated: Mon Dec 13 2010 20:23:00
CNN's Eunice Yoon explains China's efforts to fight inflation and expectations of an interest rate hike.
Federal Reserve Chairman Ben Bernanke on Friday defended the central bank's plans to spur U.S. economic growth, saying they could help reduce unemployment, and -- in a message aimed at China -- urged developing nations to let their currencies gain in value.
Perhaps we should call them emerged markets.
The rally in commodities cooled a bit Thursday, as the dollar firmed and world leaders gathered in Seoul to discuss trade policies.
Changes in the global pecking order are coming.
If the first episode of "Currency Wars" focused on pressure the U.S., Europe and emerging economies heaped on China for artificially keeping the value of its yuan low, the sequel could be called: "Currency Wars: The Fed Strikes Back."
A group representing the world's most prominent finance ministers wrapped up a two-day meeting in Korea Saturday with a pledge to not engage in currency wars or other economically protectionist policies.
Emerging-markets economies seem to have it all these days. Their lands are stocked with natural resources. Their national finances are strong. And a rising middle class is spurring breakneck growth in their businesses.
Forget fear of the unknown. You should really worry when all of Wall Street agrees on the merits of an investment idea. Case in point: emerging-market stocks.
What will likely be the defining characteristic of the new General Motors has gone largely unnoticed in the analysis of its initial public offering prospectus filed earlier this month: the degree to which it is no longer a North American-centric company.
At the G20 summit in Toronto last month, the leaders of world's largest economies embraced a brave new theme: Halting the alarming, potentially ruinous growth in already mountainous sovereign debt.
If you're looking to get in on the China growth train, be prepared to stomach the near-term risk.
The pros' advice couldn't be plainer: Investors need exposure to the regions outside the United States where more and more of the world's economic growth will be found in the years ahead. Yet most Americans stick close to home. Less than a third of the savers in Vanguard's retirement plans invest in international stock funds when they're available, according to a recent study by the mutual fund giant. Even fewer, one in 10, put money in emerging-markets funds -- that is, those specializing in developing countries such as Brazil, China, and India.
The leaders of Brazil, Russia, India and China called for the hastening of reform that would give these emerging economies more power in the International Monetary Fund and the World Bank.
It has become an investing truism of late: If you want stocks with high-octane potential, you're wise to invest in the fast-growing economies of emerging markets. The result has been frenzied demand for such stocks and skyrocketing valuations.
In an era of specialization, world allocation funds take on a challenge that verges on hubris: All it requires is deep expertise in stocks, bonds, and other securities in virtually every market on the face of the earth.
Investors have pumped a record amount of money into equity funds focused on emerging markets this year in a sharp reversal of sentiment.
Question: I'm considering investing in emerging markets mutual funds. But do you think that's a good idea, or are they just going to be the next investment bubble? -- Mario, Atlanta, Georgia
You wouldn't think the men who run the oil-rich country of Nigeria would have much spring in their step these days. The nation is plagued by a never-ending guerrilla war, one that has trimmed the country's oil production to two-thirds of its potential capacity.
The numbers are in, confirming what many already suspected: Emerging markets are the flavor of the month (or at least the quarter).
As the U.S. stock market tosses and turns, sustainable growth -- both in corporate profits and economic output -- seems far off. In China, on the other hand, recovery already seems to be a reality: Real estate, auto, and industrial sales have all bounced back this year, driving stocks on the Shanghai exchange up 50% since February. The velocity of the Chinese rebound surprised the World Bank, which recently increased its estimate for the country's GDP growth this year from 6.5% to 7.2%. Jing Ulrich, J.P. Morgan's Chinese equities strategist, thinks that figure is still too low. "China can still achieve 8% growth," she says. "Everything is happening very fast there."
For the first time, Brazil, Russia, India, and China -- dubbed the BRIC nations -- held a summit this week to discuss the global economy and their role in it.
It's only fitting that General Motors, once the embodiment of U.S. economic might, decided to sell its Hummer brand to a Chinese manufacturer after GM filed for bankruptcy.
It feels nothing like 2007 these days, except in one respect: Chinese stocks are outperforming again. The MSCI China Index, which tracks stocks traded in Hong Kong, has climbed 67% since late October (the S&P 500 has risen 2% in that time).
Stocks have surged recently on hopes that the U.S. economy may be close to hitting a bottom. The S&P 500 is up an impressive 21% in the past month.
Investors have largely panned the stimulus package that President Obama signed into law last month. But stimulus in China? Now that's a different story.
As bad as the year has been for U.S. equities, the scene around the world has been even more harrowing. Morgan Stanley Capital International's index of 21 non-U.S. markets is down 49% through Dec. 1, 2008, compared with a 43% slide in the S&P 500. But the real devastation has occurred in once-hot emerging markets. China's CSI index of 300 publicly traded stocks has fallen 63% for the year. The MICEX index of 30 of Russia's most liquid stocks is down a staggering 73%.
The last time we wrote about investing in emerging markets, we took a broad look at major indexes around the globe. Readers wanted to know more, namely possible ways to enhance returns by drilling down into particular companies, regions, or industries.
The Olympics giveth, melamine-tainted milk taketh away.
For U.S. investors, 1974 was a very scary year. The country was reeling from the Watergate scandal and the OPEC oil embargo, and Wall Street was in the worst bear market since World War II. By October, the S&P 500 was down 48% from its high two years earlier. It finished December with a value of 68.56, some 19% lower than it had a decade earlier.
Are emerging markets a bargain right now? The instinct is right, as developing-country indexes have taken a serious thumping this year. Year-to-date, Argentina's main index is down 51%. China's is down 63%. Russia is down 68%. Overall, the MSvCI Emerging Markets index is down 52% year-to-date, versus *just* a 34% drop for the S&P 500.
Dell Inc. unveiled four low-cost computer models for China, India and other emerging economies Wednesday in a new bid to tap the potential of high-growth markets outside the United States
Where in the world can you get good returns these days? The gains from foreign equity funds are mighty tempting, especially those of emerging market portfolios, which, despite a recent slump, are up an annualized 25% over three years.
updated: Fri Apr 04 2008 13:09:00
Shaukat Aziz, former Prime Minister to Pakistan, talks to MME about the emerging economies of China and the Middle East.
This week the who's who of the United Arab Emirates rubbed shoulders at a Gala dinner. Business people talked deals, swapped business cards and rubbed shoulders with government elite -- in China.
For years investors have piled into economies like China and India in search of outsize returns.
Stomaching the ups and downs of emerging markets can be difficult for most investors, but this asset class has a place in practically every portfolio.
By the time it was all said and done, an astonishing $22 billion had been vacuumed up in a matter of hours. So frenzied was the desire for this initial public offering - the largest in history - th...
Ben Bernanke isn't just scaring U.S. investors anymore. He's scaring investors around the world.
PAUL PLASTERER WORKS FOR A HIGH-END sporting goods company in Chicago, and if you ask him about his job, you'll quickly realize that he's a pretty business-savvy guy. He doesn't, however, have any ...
China's best-known Internet guru is Jack Ma, the founder of Alibaba.com, an e-commerce auction site that pitches made-in-China goods to a global market.
China already has a presence on the New York Stock Exchange and Nasdaq with plenty of investor interest. Does that mean the recent yuan revaluation will boost or bust these stocks?
Following is the full text of the keynote speech delivered by China's President Hu Jintao to the Fortune Global Forum in Beijing on Monday May 16. Mr Hu was welcomed by the Chairman and CEO of Time Warner, Richard Parsons. CNN is part of the Time Warner group.
THAT CHINA IS THE WORLD'S MOST explosive and intriguing economic growth story has been blindingly obvious for some time. And the stories in this issue provide ample evidence that the dynamic expans...
Ecuador has defaulted on its debt more than any other nation. So why would you want to buy its bonds? Or, for that matter, those of Russia, where oligarchs and an ex-KGB agent wrestle one another f...
If you're wondering which emotion is guiding investors these days, greed or fear, consider the current fascination with investing in China.
How's this for a can't-miss investment opportunity: Enormous but struggling nation with a potent workforce turns capitalist and embraces its destiny as a future economic powerhouse. Foreign capital...
I want to get exposure to Chinese equities. I feel the country is going to have a boom five to 10 years down the road and I feel if I invest now, I will be getting in early. What are the small and mid-sized equity companies in China of which stock can be purchased?
Chinese officials recently said the Chinese economy grew at 8.5 percent in 2003 and most observers say the real pace of growth was much higher than that. But that is last year's story.
Investing in China ought to be a no-brainer. With an economy that has barreled forward at an average rate of 7% for five years running and that will probably advance 9% in 2003 despite SARS, China ...
The high is always sweeter after the low. It's as true for investing as it is for life. So those battered veteran investors in emerging markets are no doubt savoring the phenomenal performance they...
Investing in emerging markets in the 1990s required great fortitude--and a crate or two of Rolaids didn't hurt either. Betting that the small, emerging economies around the world would produce outs...
CISCO ON THEIR MINDS
In retrospect, Steve Kantz knows that perhaps he should have been a bit more conventional when he opened an Individual Retirement Account in mid-1997. He'd considered a plain-vanilla U.S. stock fun...
Every weekday morning back in 1993, the most delirious year of the giddy 1990s Asia investing boom, stockbrokers from all over Southeast Asia called up mutual fund manager Robert Howe in Hong Kong ...
On a trip to Thailand in January 1997, Mark Madden, manager of the $156 million Pioneer Emerging Markets Fund, visited some two dozen companies asking: How much of the foreign currency debt on your...
Okay. So you've just read that the next 25 years look darn good for savvy investors. But what if you don't feel like waiting around for another couple of decades for your just deserts? What if you'...
After 18 years of marriage, Connie and Kel Saito still have their differences, even when they try to relax by playing mixed doubles on a tennis court near their San Jose home. "We'll have arguments...
Everyone loves Lyford Cay, Morgan Stanley's annual get-together for long-ball hitters. The workday is seriously civilized--eight to noon, then an hour and a half at night--leaving loads of time for...
Are you ready for the latest wrinkle in the sizzling world of emerging-market mutual funds? It's the new--and rapid-- proliferation of open-end single-country mutual funds. These new vehicles offer...
THIS MONTH: --What savvy managers are buying now --A fund that focuses on the bluest chips
With U.S. stocks racking up returns of 20% to 35% so far this year, you might figure only a lunatic would bother to seek superior gains abroad. But think again. "It's a virtual slam dunk that many ...
SPOOKED BY THE TURMOIL IN INTERNATIONAL stock markets, Americans are increasingly reluctant to invest abroad. In the first two months of 1995, only $829 million of fresh cash flowed into funds that...
How about a round of doubles? no, we don't mean tennis. we're talking about investments that could double in value over the next five years. Of course, if you're just beginning to learn the ways of...
If you've had money in one of the 42 so-called emerging markets funds (including 10 closed-end selections) over the past year, you have our condolences. All of them lost money, with the average ent...
Nearly lost in all the dire headlines--Mexican peso collapses! economic aftershocks of japan quake! u.s.-china trade war looms!--is 1995's Big Event: the beginnings of a global expansion of breatht...
Emerging markets? Submerging would be more like it. Investors in many parts of the developing world are finding themselves underwater as markets from Malaysia to Mexico sink under the weight of the...
NO COUNTRY today is more synonymous with growth, capital gains, and vast opportunities to make money than China. Small investors are crowding into mutual funds that promise to grab some of China's ...
Until recently, the case for emerging-market funds sounded so persuasive that it was almost rude to ask whether there was a catch. After all, developing economies such as Argentina, China, Indonesi...
Wall Street old-timers used to chuckle about ''Peruvian bonds'': broker slang for worthless securities. Nowadays owners of the Andean country's debt are the ones who are smiling. Loans that sold fo...
Adventuresome investors are intrigued by the almost boundless profit opportunities in China. But finding a low-cost way into the market is about as tough as finding a great Chinese eatery in Iowa. ...
THEY ARE the latest business buccaneers to mix it up in freewheeling Hong Kong. Tailored and sophisticated, with French cuffs just right, they command seemingly unlimited cash to snap up prime real...
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