This Is a Very Risky Time for Emerging Markets, Says Berenberg’s Pickering

The video discusses Argentine borrowing costs and compares them with other emerging markets. It highlights the importance of Argentina signaling a sustainable economic path. The video also explores factors driving growth in emerging markets, such as global demand and sentiment. It emphasizes the need to differentiate between markets during a trade war and identifies characteristics of resilient economies. The Turkish lira's performance is analyzed, noting the impact of central bank decisions and economic reforms.

What are the two main factors that drive growth in emerging markets?

• Domestic demand and foreign investment

• Global demand and domestic policies

• Global demand and global sentiment

• Interest rates and inflation

Which type of countries are generally considered safer in the emerging market space?

• Countries with rising labor costs

• Countries with high inflation

• Countries with good domestic demand and surpluses

• Countries with large deficits

What is a significant challenge for countries with rising unit labor costs?

• They attract more foreign investment

• They have lower inflation rates

• They experience rapid economic growth

• They tend to be penalized in the market

What is a potential risk for Turkey if the central bank cuts interest rates significantly?

• Markets could turn on Turkey quickly

• Strengthening of the Turkish lira

• Increased foreign investment

• Improved trade relations with Europe

What has Turkey been undoing that affects its investment appeal?

• Its geographical position

• Trade agreements with Asia

• Economic reforms of the last 30 years

• Its central bank independence