What Our Analysts Are Reading – 7/7/2017

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Each week Frontier Strategy Group’s global team shares their view on key media stories, and what the implications are for businesses that operate in emerging markets. For more information about how to contact our analysts, send us an email.


Antonio MartinezAntonio Martinez on “Dollar Gets Squeezed From All Sides”

“Improving economic growth in other developed markets, particularly the Eurozone, and weakening prospects for major fiscal stimulus in the US have led the dollar to weaken so far this year. Further Federal Reserve tightening is the main factor now limiting further weakness for the dollar through the end of 2017.”

Link to article |Read More of Antonio’s Commentary | Have a Question for Antonio?


Zeynep Kosereisoglu on “In surprise move, Egypt hikes key interest rates again”

“The Central Bank of Egypt raised interest rates by 2% for a second time in a row, increasing the rate by a total of 7% since November 2016. While the move will weigh on SMEs’ ability to invest, it shows that Egypt’s main focus and commitment is to stabilizing inflation, which will great pressures in the coming years as Egypt moves forward with subsidy removals.”

Link to article | Read More of Zeynep’s Commentary | Have a Question for Zeynep?


William Attwell on “South Africa’s ANC proposes nationalising central bank: sources”

“The ruling party’s proposal to nationalize the central bank is deepening fears over the future status of one the country’s last bastions of technocratic policy making. It follows a controversial statement by the state ombudsman last week the central bank should abandon its inflation-targeting mandate. The rand fell 2% against the dollar following the ruling party’s proposal.”

Link to article | Read More of William’s Commentary | Have a Question for William?


Alec LeeAlec Lee on “Brazil Ex-Minister Arrested, Adding to Pressure on Temer”

“A recent poll of congressmen showed only 43 deputies in the lower house willing to openly declare they would vote to block an indictment of President Temer. Despite the low number, if a vote was held today Temer would likely be victorious. However, as a vote is unlikely until the end of August, there is significant time for further developments such as this to erode Temer’s support.”

Link to article Read More of Alec’s Commentary | Have a Question for Alec?


Dalia Naguib on “Egypt announces steep rise in electricity price in IMF-backed reform”

“Electricity price hikes present another challenge for consumers, whose budgets are already under great pressure and are shifting spending habits in favor of cheaper goods. Not only should MNCs assess the implications on demand for their products, but they should also assess their own cost assumptions using scenarios to prepare for gradual subsidy removals through fiscal year 2021-22.”

Link to article | Read More of Dalia’s Commentary | Have a Question for Dalia?


Matthew KindingerMatthew Kindinger on “Ivory Coast Will Pay Civil Servants to Settle Wage Dispute”

“The government has agreed to pay civil servants a total of US$ 480 million to settle a long-standing dispute over wage arrears. This could result in fewer strikes and protests, and provide a short-term boost to consumer spending in certain parts of the country. However, this large payout will likely result in the government further delaying spending on infrastructure projects over the coming year.”

Link to article Read More of Matthew’s Commentary | Have a Question for Matthew?

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