Investors have withdrawn $70 billion from developing country bond funds since the beginning of 2022, according to an analysis by JPMorgan Chase & Co. based on data from EPFR Global.
This is the largest capital outflow since JPMorgan began tracking this data in 2005.
Last week alone, net outflows from emerging markets bond funds amounted to $4.2 billion.
The growth of interest rates in developed countries increases the attractiveness of their assets and reduces interest in less reliable securities of emerging markets, writes the Financial Times newspaper. At the same time, the strengthening of the US currency increases the cost of developing countries to service the dollar debt.
In September, JPMorgan raised its 2022 emerging market bond fund outflow forecast to $80 billion from $55 billion, and the bank’s emerging markets analyst Milo Gunasinghe notes that investor capital outflows are unabated so far.
Initial registrations of new commercial vehicles in Ukraine (trucks and special vehicles) in September increased by 21% compared to August of this year – up to 613 units, which, however, is 57% less than in September 2021, reports “Ukravtoprom” in the Telegram channel.
“The market for new trucks is reviving,” the association believes.
As reported, in August, registrations of such cars decreased by 15% compared to July 2022 – to 507 units, while in July there was an increase by 38% compared to June 2022 – to 593 units.
Renault remained the market leader in September (171 cars), followed by Mercedes-Benz (83 units), and Citroen third (51 units). This is followed by DAF with 38 cars and VOLVO with 36 registrations.
According to the statistics of the association, in September last year, the top five market leaders included Citroen, Fiat, Renault, Volkswagen and the Belarusian MAZ.
Ukravtoprom informs that a total of 4.9 thousand new commercial vehicles were registered in Ukraine in January-September 2022, which is almost 56% less than in the same period of 2021.
Number of dead and wounded civilians in Ukraine as a result of military actions from 24.02.2022 according to un data (per)
graphics of the Club of Experts
The state-owned banks PrivatBank and Oschadbank (Kyiv) have become participants in the new state program of affordable housing “єOselya”, which has been launched in “Dії” in a test mode, the press services of the banks reported.
According to the report, under this program, bank customers can buy housing with an initial payment of 30% for PrivatBank and 20% for Oschadbank, with loans from 1 to 20 years at 3% per annum.
The military, law enforcement officers, doctors, educators and scientists can become participants in the program this year.
It is indicated that the mass launch of the program will take place in the second half of October, then it will be possible to use the service in the Diya mobile application, and it will be possible to submit an application in a few clicks.
affordable housing, Joselya, OSCHADBANK, PRIVATBANK, state program
Stock markets in Western Europe are falling during trading on Monday amid persistent concerns about high inflation and rising interest rates in the world’s leading economies.
The composite index of the largest companies in the region Stoxx Europe 600 fell by 1.26% by 11:41 a.m. to 382.97 points.
The German DAX fell 1.3%, the French CAC 40 fell 1.4%. The Italian FTSE MIB and the Spanish IBEX 35 are down 0.9% and 0.7% respectively.
The British stock index FTSE 100 is down 1% after the international rating agency S&P Global Ratings changed to “negative” from “stable” the outlook for the long-term ratings of the UK. The ratings themselves have been affirmed at ‘AA’.
As reported, the UK government at the end of September unveiled a tax cut plan in addition to its previously announced measures to provide widespread support to households to pay their electricity bills. As a result, according to S&P analysts, the country’s budget deficit will increase annually by an average of 2.6% of GDP until the end of 2025.
Investors also evaluate European statistics.
As it became known on Monday from the final data of S & P, the Purchasing Managers’ Index (PMI) in the manufacturing sector of the eurozone economy in September fell to 48.4 points from 49.6 points a month earlier. Preliminary data indicated a slightly more moderate decline – to 48.5 points.
In Germany, the manufacturing PMI fell to 47.8 from 49.1, in France it fell to 47.7 from 50.6, and in Italy the indicator rose to 48.3 from 48.
Shares of Credit Suisse fell 9% on Monday, despite statements from the head of the Swiss bank Ulrich Körner about the stability of the company’s finances. The bank’s management is expected to present a business reorganization plan at the end of October.
The price of shares of the French company Vinci is reduced by 0.8%, although earlier the company announced the receipt of two contracts for the construction of power transmission lines in Brazil for a total of 1.06 billion euros.
The capitalization of the British energy company Genel Energy is growing by 3.9%. The company announced the appointment of Paul Ware as its chief executive officer. Since June, he has held this position on a temporary basis.
ABB Ltd stock quotes. fell 7% after the Swedish-Swiss electrical equipment maker announced it had completed the spin-off of its Accelleron turbocharger business.
The decline leaders in the Stoxx 600 index, in addition to Credit Suisse, are Danske Bank (-8%) and tour operator Carnival Plc (-7.9%). Among the growth leaders are shares of salmon producer Bakkafrost (+8.3%), Swedish oil and gas company Orron Energy (+6.6%) and Norwegian Aker BP ASA (+5.5%).
The Japanese yen is depreciating against the US dollar on Monday morning.
The US dollar exchange rate against the yen at 8:56 am CST was 144.8 yen compared to 144.72 yen on Friday. During the session, the yen fell below 145 yen per $1, which could provoke the Japanese government to conduct foreign exchange intervention for the second time this year, writes Bloomberg.
The Japanese currency fell to 145.9 yen per dollar on September 22, after which the country’s Ministry of Finance decided to intervene in the foreign exchange market for the first time in 24 years. In total, authorities spent 2.84 trillion yen ($19.65 billion) in September to support the national currency, the ministry said.
The weakening of the yen comes against the backdrop of the Bank of Japan maintaining a loose monetary policy, while other central banks of the world have begun to tighten it due to inflation, beating multi-year records. In total, the yen has lost 21% since the beginning of the year.
“The yen is at risk of further depreciation as long as the BOJ’s yield curve control remains status quo and other central banks, including the Fed, continue to tighten or normalize policy,” said Oversea-Chinese Banking Corp. strategist. Christopher Wong.
Meanwhile, the ICE index, which shows the dynamics of the US dollar against six currencies (the euro, the Swiss franc, the yen, the Canadian dollar, the pound sterling and the Swedish krona), is down 0.27%, the broader WSJ Dollar is down 0.29%.
The euro/dollar pair is trading at $0.9822 compared to $0.9802 at the close of the session on Friday, the euro adds 0.2%.
The pound rose 0.7% to $1.1246 compared to $1.1168 at the close of the previous session.
