Latest news with #RodrigoCampos
The Star
27-06-2025
- Business
- The Star
World Bank urges aid for economies in conflict as US pushes cuts
(Reuters) -The goal of ending extreme poverty around the globe remains elusive partly due to compounding challenges faced by economies in fragile and conflict-affected situations (FCS) including food insecurity and weak government capacity, a report from the World Bank showed. The report released on Friday by the Washington-based lender calls on a scaling up of international support, debt relief and technical assistance at a time when the United States, the world's largest aid donor of the past decades, steps back. Extreme poverty is rising fast in economies hit by conflict and instability, according to the World Bank's first comprehensive report on FCS economies since the COVID-19 pandemic. Over 420 million people in conflict-ridden economies survive on less than $3 a day, more than the rest of the world combined, even as they are home to under 15% of the global population. The number is projected to rise to 435 million, or nearly 60% of the world's extreme poor, by 2030. "FCS economies have become the epicenter of global poverty and food insecurity, a situation increasingly shaped by the frequency and intensity of conflict," the World Bank report said. Economic output in FCS nations could stall or weaken further as conflict and violence have surged and intensified over the past years. The most high-intensity conflicts can shrink per capita GDP by some 20% after five years, according to the report. Conflict and war economies are home to 1 billion people and their populations average only six years of schooling, with life expectancy seven years shorter than in other developing countries. Since 2020, the per capita GDP in these economies has shrunk by an average of 1.8% per year, while it has expanded by 2.9% in other developing economies, the report said. 'Progress on poverty reduction has stalled since the mid-2010s, reflecting the compounded effects of intensifying conflict, economic fragility, and subdued growth,' it said. Targeted domestic reforms and coordinated, long-term global engagement are needed to lift those populations out of poverty, according to the World Bank. Measures need to focus on addressing root causes of conflict such as injustice and exclusion, as well as expanding access to education and healthcare, and improving infrastructure. Investment in tourism and agriculture could help create jobs for a growing working-age population. "With sound policies and sustained global engagement, FCS economies can chart a better path toward development," said the World Bank. (Reporting by Rodrigo Campos in New York; Editing by Andrea Ricci)
Yahoo
23-06-2025
- Business
- Yahoo
Holders of Argentina 1.5 billion euro GDP warrants file for US recognition of English judgments
By Rodrigo Campos NEW YORK (Reuters) -Holders of Argentina's 1.5 billion euro-denominated GDP warrants filed on Monday for U.S. courts to recognize English court judgments that hold Argentina liable for that debt. Hedge funds holding around 48% of the securities issued between 2005 and 2014 sued Argentina in 2019 and London's High Court ruled in their favor last October, leaving Argentina on the hook. "While the claimants remain open to finding a consensual resolution with respect to the sums outstanding under the English Judgments ... they intend to vigorously enforce their rights in any and all appropriate forums," said a statement from law firm Quinn Emanuel Urquhart & Sullivan, which represents certain holders. In order to be able to enforce the judgments against Argentine assets in the United States, the U.S. court must recognize the outcome of the process in the English courts. The statement says that to secure a $20 billion program with the International Monetary Fund announced in April, "it appears that Argentina evidently made representations to the Fund that it was engaged in active, good-faith efforts to resolve the English Judgments to address the Fund's lending into arrears guidelines. No negotiations are ongoing, and to the extent Argentina represented that they were, that representation was incorrect." The IMF did not immediately respond to a request for comment on whether Argentina misrepresented its efforts to clear this debt. The Argentine government did not immediately respond to a request for comment. The Quinn Emanuel statement also cites the IMF program target of Argentina regaining access to international capital markets. "There should not be, nor can there be in practice, any market access until and unless Argentina resolves its default under the English Judgments," the statement said.
Yahoo
23-06-2025
- Business
- Yahoo
Holders of Argentina 1.5 billion euro GDP warrants file for US recognition of English judgments
By Rodrigo Campos NEW YORK (Reuters) -Holders of Argentina's 1.5 billion euro-denominated GDP warrants filed on Monday for U.S. courts to recognize English court judgments that hold Argentina liable for that debt. Hedge funds holding around 48% of the securities issued between 2005 and 2014 sued Argentina in 2019 and London's High Court ruled in their favor last October, leaving Argentina on the hook. "While the claimants remain open to finding a consensual resolution with respect to the sums outstanding under the English Judgments ... they intend to vigorously enforce their rights in any and all appropriate forums," said a statement from law firm Quinn Emanuel Urquhart & Sullivan, which represents certain holders. In order to be able to enforce the judgments against Argentine assets in the United States, the U.S. court must recognize the outcome of the process in the English courts. The statement says that to secure a $20 billion program with the International Monetary Fund announced in April, "it appears that Argentina evidently made representations to the Fund that it was engaged in active, good-faith efforts to resolve the English Judgments to address the Fund's lending into arrears guidelines. No negotiations are ongoing, and to the extent Argentina represented that they were, that representation was incorrect." The IMF did not immediately respond to a request for comment on whether Argentina misrepresented its efforts to clear this debt. The Argentine government did not immediately respond to a request for comment. The Quinn Emanuel statement also cites the IMF program target of Argentina regaining access to international capital markets. "There should not be, nor can there be in practice, any market access until and unless Argentina resolves its default under the English Judgments," the statement said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-06-2025
- Business
- Yahoo
Analysis-Investors eye Latin America as they diversify away from Wall Street
By Rodrigo Campos and Carolina Mandl NEW YORK (Reuters) -Latin America has emerged as a top investing destination as ongoing wars - both of the military and trade variety - make investors seek options in a region they view as refreshingly untroubled by tariffs and major conflicts. Portfolio flows data suggests that investors are largely underexposed to Latin America even as many stock markets - including Brazil's and Mexico's - are trading at or near record highs, while sovereign bonds offer still-attractive yields. Although some prefer not to chase a stock rally, others have focused on the local debt market. "The Latam story is easier to tell now as stocks are cheap and there is a lack of options in emerging markets," said Leonard Linnet, head of equities at Itau BBA. "China is at the epicenter of the trade war, India is more expensive and has some geopolitical issues with Pakistan and investors are avoiding investing in Russia.' Brazil and Mexico are the behemoths where most international investors concentrate their exposure to Latin America. Both carry by far the largest regional weights in global benchmarks for stocks and bonds. Among all emerging markets, however, the two countries are relatively small. Brazil, which is Latin America's largest economy and market, constitutes 60% of the MSCI Latam index and just below 5% of the broader EM index. The stock markets of both Brazil and Mexico are trading near record highs and at low valuations, and their bonds offer attractive yields with the backdrop of softening monetary policy. The investment avenues thin out for some institutions as some Latin American markets are comparatively illiquid or lack investment-grade credit ratings. But in that higher-risk environment other investors see returns. "The investment opportunity in Latam does not require large changes in global asset allocations," Rob Citrone, founder of global macro hedge fund Discovery Capital, told his investors recently. "Asset flows, on the margin, dictate much of the price performance, so small changes to large markets, such as the U.S., can have big impacts on smaller markets, such as most in Latam." After a 26% decline in the regional stock index last year, Latam is the best performer for stocks this year. Within the MSCI universe, investors are paying just over $9 for each dollar in earnings across Latam - compared with more than $19 for developed markets. Although Mexico is closer to the trade war's epicenter, its listed companies are not so exposed to it, so the country's stocks are moving higher. "Price-to-earnings multiples in Latam are low now even when compared with its own historical average," said Itau BBA's Linnet. "Brazil is not only cheaper than China and India, it is trading at a 23% discount from (itself)." Netherlands-based Robeco has been increasing allocation to Latin America, mainly to Mexico, Brazil and Chile, as it has partially shifted away from the U.S., said Wim-Hein Pals, head of emerging markets team at Robeco. The firm is overweight Latam, while it is close to neutral China and underweight India. Both dollar weakness and idiosyncratic stories, including last year's FX selloff, have bolstered the region's currencies. With its benchmark interest rate at 14.75%, Brazil's real has emerged as one of the favored global carry currencies and is up 9% against the greenback this year. The Latin America currency index is up nearly 15% this year and last week touched a 14-year high. The outlook for the global economy and the issue of reallocating outside of the United States both face uncertainties and it is far too soon to expect material inflows to Latin America, said Graham Stock, senior emerging market strategist at RBC Global Asset Management. "Having said that, you could always see short-term trades that are dollar-bearish, and you could see some allocation into Latin American currencies, because they're high yielding. The carry is attractive there, and I think that is part of what we've seen." Beyond the region's largest economies, Argentina has been a forbidden fruit of sorts for investors over the past years. Its dollar debt has returned over 100% at the index level since President Javier Milei was elected in late 2023 and the local Argentine stock index rose 173% last year. Yet Argentina remains outside major benchmarks, making the market inaccessible to some of the largest investors - some of whom have grown more curious about Argentine assets since capital controls were all but lifted in mid-April. "We couldn't buy in on Argentina for all practical purposes while they were under the capital controls," said Alison Shimada, head of the Total Emerging Markets Equity team at Allspring Global Investments. "Now that that has changed, we would be interested, and we're doing some work on it, but at the right price." Some investors would like to see more Latam companies listed. Brazil also attracts most of the region's venture capital, with over 1,400 VC-backed startups since 2013 as of the first half of last year, according to the most recent data from LAVCA, while Uruguay, Chile and Colombia emerged as alternative hubs for innovation. Regardless of how many of these startups actually go to market, they will likely find investors thirsty for places to put money to work in the region. Said Allspring's Shimada: "I'd love to see those smaller countries have more listed assets." Sign in to access your portfolio
Yahoo
09-06-2025
- Business
- Yahoo
Analysis-Investors eye Latin America as they diversify away from Wall Street
By Rodrigo Campos and Carolina Mandl NEW YORK (Reuters) -Latin America has emerged as a top investing destination as ongoing wars - both of the military and trade variety - make investors seek options in a region they view as refreshingly untroubled by tariffs and major conflicts. Portfolio flows data suggests that investors are largely underexposed to Latin America even as many stock markets - including Brazil's and Mexico's - are trading at or near record highs, while sovereign bonds offer still-attractive yields. Although some prefer not to chase a stock rally, others have focused on the local debt market. "The Latam story is easier to tell now as stocks are cheap and there is a lack of options in emerging markets," said Leonard Linnet, head of equities at Itau BBA. "China is at the epicenter of the trade war, India is more expensive and has some geopolitical issues with Pakistan and investors are avoiding investing in Russia.' Brazil and Mexico are the behemoths where most international investors concentrate their exposure to Latin America. Both carry by far the largest regional weights in global benchmarks for stocks and bonds. Among all emerging markets, however, the two countries are relatively small. Brazil, which is Latin America's largest economy and market, constitutes 60% of the MSCI Latam index and just below 5% of the broader EM index. The stock markets of both Brazil and Mexico are trading near record highs and at low valuations, and their bonds offer attractive yields with the backdrop of softening monetary policy. The investment avenues thin out for some institutions as some Latin American markets are comparatively illiquid or lack investment-grade credit ratings. But in that higher-risk environment other investors see returns. "The investment opportunity in Latam does not require large changes in global asset allocations," Rob Citrone, founder of global macro hedge fund Discovery Capital, told his investors recently. "Asset flows, on the margin, dictate much of the price performance, so small changes to large markets, such as the U.S., can have big impacts on smaller markets, such as most in Latam." After a 26% decline in the regional stock index last year, Latam is the best performer for stocks this year. Within the MSCI universe, investors are paying just over $9 for each dollar in earnings across Latam - compared with more than $19 for developed markets. Although Mexico is closer to the trade war's epicenter, its listed companies are not so exposed to it, so the country's stocks are moving higher. "Price-to-earnings multiples in Latam are low now even when compared with its own historical average," said Itau BBA's Linnet. "Brazil is not only cheaper than China and India, it is trading at a 23% discount from (itself)." Netherlands-based Robeco has been increasing allocation to Latin America, mainly to Mexico, Brazil and Chile, as it has partially shifted away from the U.S., said Wim-Hein Pals, head of emerging markets team at Robeco. The firm is overweight Latam, while it is close to neutral China and underweight India. Both dollar weakness and idiosyncratic stories, including last year's FX selloff, have bolstered the region's currencies. With its benchmark interest rate at 14.75%, Brazil's real has emerged as one of the favored global carry currencies and is up 9% against the greenback this year. The Latin America currency index is up nearly 15% this year and last week touched a 14-year high. The outlook for the global economy and the issue of reallocating outside of the United States both face uncertainties and it is far too soon to expect material inflows to Latin America, said Graham Stock, senior emerging market strategist at RBC Global Asset Management. "Having said that, you could always see short-term trades that are dollar-bearish, and you could see some allocation into Latin American currencies, because they're high yielding. The carry is attractive there, and I think that is part of what we've seen." Beyond the region's largest economies, Argentina has been a forbidden fruit of sorts for investors over the past years. Its dollar debt has returned over 100% at the index level since President Javier Milei was elected in late 2023 and the local Argentine stock index rose 173% last year. Yet Argentina remains outside major benchmarks, making the market inaccessible to some of the largest investors - some of whom have grown more curious about Argentine assets since capital controls were all but lifted in mid-April. "We couldn't buy in on Argentina for all practical purposes while they were under the capital controls," said Alison Shimada, head of the Total Emerging Markets Equity team at Allspring Global Investments. "Now that that has changed, we would be interested, and we're doing some work on it, but at the right price." Some investors would like to see more Latam companies listed. Brazil also attracts most of the region's venture capital, with over 1,400 VC-backed startups since 2013 as of the first half of last year, according to the most recent data from LAVCA, while Uruguay, Chile and Colombia emerged as alternative hubs for innovation. Regardless of how many of these startups actually go to market, they will likely find investors thirsty for places to put money to work in the region. Said Allspring's Shimada: "I'd love to see those smaller countries have more listed assets." Sign in to access your portfolio
