GLOBAL MARKETS: Sterling pounded
Sterling’s slide to $1.24 on Tuesday was its weakest level against the dollar since April 2017
EM portfolio doubts
The summary sacking of Turkey’s central bank governor and the shock resignation of Mexico’s finance minister, which immediately roiled markets, are reminders of the high-risk nature of investing in emerging markets. It has cast doubt over developing economies converging with the developed world. Apart from China and India, there’s little sign of convergence. High commodity prices are a fading memory. Trade is stuttering and global supply chains are being disrupted. Many supposedly emerging markets are growing more slowly, raising questions over the role of emerging markets in a diversified portfolio.