In today’s briefing:
- China: Headwinds Persist, but a Turnaround Is Not off the Cards
- CX Daily: The World’s No. 1 EV-Battery Maker Juices Up Global Expansion
- Malaysia: Local and Foreign Investors Are Fleeing Despite the Commodity Boom
- Mexico Moves to Top EM Overweight
China: Headwinds Persist, but a Turnaround Is Not off the Cards
- The economy rebounded in the third quarter, but renewed lockdowns are putting the brakes on the economic recovery.
- Simultaneously, downward pressures are intensifying in other sectors of the economy.
- An easing of policy measures that have been a drag on the economy is not off the cards.
CX Daily: The World’s No. 1 EV-Battery Maker Juices Up Global Expansion
In Depth: The world’s No. 1 EV-battery maker juices up global expansion
China and the Vatican extend deal on appointing bishops
Beijing calls for local governments to facilitate entry for foreign business executives
Malaysia: Local and Foreign Investors Are Fleeing Despite the Commodity Boom
- Expansionary fiscal and monetary policy have bolstered growth at the expense of a 13%YoY depreciation of the ringgit and capital flight reflected in shrinking FX reserves amid surging trade surpluses.
- Elevated crude-oil and palm oil prices boosted the trade surplus, but the current account surplus shrank to less than 1% of GDP in 1H2022, as foreign-worker remittances soared.
- Despite 24 years of current account surpluses, Malaysia’s reserves provide just 4.6 months’ import cover. Net FPI outflows persisted even when global equities were soaring. Kleptocracy is inducing capital flight.
Mexico Moves to Top EM Overweight
- Mexico overweight reaches record levels among active GEM investors, moves to top country overweight.
- Mexico a beneficiary from a rotation out of Russia, Turkey and Tech, alongside Brazil and some of the MENA nations.
- Grupo Financiero Banorte and Wal-Mart de Mexico are widely held and have been instrumental in Mexico’s rise up the ranks over the past couple of years.
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