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September 7, 2018, 2:13 AM GMT+3 Updated on September 7, 2018, 8:12 AM GMT+3
Investors are fast-losing faith in emerging markets, adding to pressures on policy makers whose fights with inflation and currency routs are getting more serious.
The world is bracing for the next batch of tariffs from the U.S., which could make the last round look like child’s play. And Christine Lagarde says we’re not safe enough a decade after the crisis.
Check back later on Friday for U.S. nonfarm payrolls data, which probably will show that employers added 198,000 workers last month after 157,000 in July, helping to trim the jobless rate to 3.8 percent to match the lowest level since 1969.
Here’s our weekly wrap of what’s going on in the world economy.
Contagion, Crisis, Cooling
It’s not just Turkey and Argentina’s problems. South Africa just fell into recession and brought the rand down with it. Indonesia’s flirting with a milestone in currency weakness not seen since the 1997-98 Asian financial crisis, though its fundamentals are still looking a lot better now versus then. India also remains in a bit of danger as emerging markets pressures add to pricey oil and policy tightening to keep the rupee as the worst performer in Asia, with a dark outlook. You could always put your money in Thailand, a new haven favorite.
Over in Europe, Italy’s bouts of defiance and reassurance are keeping markets on their toes while officials insist that the budget released in the coming weeks will soothe investors. The U.K. is among the most exposed... Read more
Source: Bloomberg
