MILLTRUST INTERNATIONAL
 

Milltrust Alert – Selected Insights from the Emerging Markets and Around Our Business

January 25, 2019

BY Alexander Kalis
MANAGING PARTNER

In This Week’s Issue…

Emerging Markets – What You Need to Know

Emerging Markets Equities Post Longest Rally in a Year
Emerging-market equities rose for a fourth week last week as signs of easing trade tensions supported the appetite for riskier assets. Currencies dropped amid a stronger dollar. The following is a roundup of emerging-markets news and highlights for the week ending Jan. 20:

  • China has offered to go on a six-year buying spree to ramp up imports from the U.S
  • The Reserve Bank of India, in consultation with the Indian government, has decided to rationalize the framework for external commercial borrowings and rupee-denominated bonds to improve the ease of doing business
  • Indonesia posted a record trade deficit in 2018 after a slump in the rupiah boosted imports and the trade war hurt exports; the shortfall was $1.1 billion in December, bringing the full-year deficit to $8.6 billion
  • Trump and North Korean leader Kim Jong Un are planning to meet near the end of February in Vietnam for a second summit, despite evidence that the Asian country is advancing its nuclear weapons program
  • South Africa’s central bank maintained its key interest rate at 6.75 percent, and trimmed inflation expectations at its first meeting of the year
  • The Turkish lira rallied after the nation’s central bank left interest rates unchanged and reaffirmed its stance on inflation
  • Private-sector money fled Russia at the fastest pace since 2014 last year as fresh U.S. sanctions and the threat of more to come dented confidence.
  • Egypt plans to issue between $3 billion and $7 billion worth of international bonds in the first quarter of the year,
  • Saudi Arabian Oil Co. could tap the bond market for about $10 billion to help fund the acquisition of petrochemicals giant Saudi Basic Industries Corp
  • Mexico reopened most fuel pipelines after closures that caused gasoline shortages in several states
  • Bank of America Merrill Lynch cut its forecast for Mexico’s economic growth in 2019 to 1 percent from 2 percent
  • Brazil’s Ibovespa rallied for a fourth week; President Jair Bolsonaro is expected to give the green light to a pension reform bill before Jan. 28

Sustainable Investments – What You Need to Know

Climate change picked to create big investment headwinds
Investors have been encouraged to consider the effects of climate change as a significant headwind to portfolios in the future, as investments remain at risk of physical and financial impacts. In AMP Capital’s latest analysis, Kirsten Le Mesurier, portfolio manager of the multi-asset group, encouraged investors to assess the level of risk climate change possesses to their portfolios, regardless of their personal views on the debate. “Some investors don’t believe in climate change and believe that any consideration of it in an investment process means sacrificing return,” she wrote.

Spain to invest €235 billion to tackle climate change over next decade
It comes as the country sets a target of 100% renewable electricity by 2050
Prime Minister Pedro Sanchez has apologised for the country’s inaction on climate change over the last decade, which he blamed on the hostile economic crisis Spain suffered for around six years. A new energy and climate change plan is expected to be submitted soon to the European Union, revealed Sanchez, which will see investments of €235 billion from 2021-2030.

Agriculture Investments – What You Need to Know

Why you should invest in agriculture
There are many reasons why a prospective investor should invest in agriculture. Experts say agriculture is a low-risk investment that keeps pace with inflation and increases in value over the long-term. They describe investment in agriculture as a tangible asset that provides benefit to the community, adding that it can diversify the investor’s portfolio. Experts say investments in agriculture can guarantee significant revenue for the investor.

Australian Agriculture Outlook 2019 tips positive year ahead
AUSTRALIAN agriculture is set for a bumper year with forecasts predicting cattle prices to strengthen, farmgate milk prices to push upwards and lamb and mutton to set new annual average records.
That’s according to Rural Bank’s Australian Agriculture Outlook 2019 released today.

SCIENCE, TECHNOLOGY & INNOVATION – WHAT YOU NEED TO KNOW

Flexible Electronics Market worth $16.50 billion by 2021
The global Flexible Electronics Market worth USD 16.50 billion by 2021” report represents the broad information comprising each and every aspect related to the global Flexible Electronics Market. The experts arranged and processed the global Flexible Electronics Market related raw data congregated from various sources with the help of different methodological and analytical tactics such as probability, SWOT analysis, and statistical variation among many. According to the report, global flexible electronics market was valued at USD 5.13 billion in 2015 and is expected to generate revenue of USD 16.50 billion by end of 2021, growing at a CAGR of slightly above 21% between 2016 and 2021.

Scientists who created Dolly the sheep reveal plans for gene-edited ‘superchickens’ resistant to flu in bid to halt human pandemic.
British scientists are developing gene-edited chickens designed to be totally resistant to flu in a new approach to trying to stop the next deadly human pandemic. The first of the transgenic chicks will be hatched later this year at the Roslin Institute at the University of Edinburgh in Scotland, said Wendy Barclay, a professor of virology at Imperial College London who is co-leading the project. The birds’ DNA has been altered using a new gene editing technology known as CRISPR.