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Saturday, 7 January 2017

Goldman’s Bet on Emerging Currencies Is BRICS Without the ‘C’ - Bloomberg

Goldman’s Bet on Emerging Currencies Is BRICS Without the ‘C’ - Bloomberg:
"Goldman Sachs Group Inc., home to the team that conceived the BRIC framework for investing in the largest emerging markets, is urging investors to "stay the course" with bets on the currencies of Brazil, Russia and India, along with South Africa.

When it comes to China, Goldman anticipates a “grinding” move lower for the yuan this year, “analogous to 2016.” Goldman emerging-market strategists led by Kamakshya Trivedi in London predicted in a note dated Thursday the yuan will retreat to 7.3 per dollar by year-end, more bearish than the 7.16 median forecast in a Bloomberg survey. It was at 6.883 on Thursday in Beijing.

China, South Korea and other Asian economies are vulnerable to U.S. President-elect Donald Trump’s protectionist election manifesto translating into policy and regulatory action. By contrast, Brazil, Russia, India and South Africa are less at risk, Goldman analysts reckon."

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