How U.S. Political Risk Is Weighing on Emerging Markets

The transcript discusses the impact of US political events, particularly debates, on emerging markets, with a focus on the Mexican peso's reaction to election uncertainties. It explores how the peso serves as a barometer for market sentiment and its role in emerging market investments. The discussion also touches on the potential impact of US elections on Russia, highlighting the perceived relationship between Trump and Putin and the implications for the Russian economy.

How did the markets react to the perception of Senator Clinton winning the debate?

• Emerging market equities fell.

• The Mexican peso weakened.

• The markets remained stable.

• The Mexican peso strengthened.

What is one of the main concerns about the Mexican peso in the context of the US elections?

• Rising oil prices.

• High inflation rates in Mexico.

• Potential renegotiation of NAFTA.

• Increased tourism in Mexico.

Why is the Mexican peso considered a barometer for Trump's electoral possibilities?

• Because it is pegged to the US dollar.

• Because of its liquidity and role in emerging markets.

• Due to its high interest rates.

• Due to its strong economic fundamentals.

How is Russia perceived in relation to Trump's political stance?

• As a strong opponent.

• As a neutral party.

• As a country Trump is conciliatory towards.

• As a potential trade partner.

What is the expected impact on the Russian economy if oil prices reach $60 next year?

• The ruble will weaken.

• The economy will decline.

• The economy will improve.

• The equity market will crash.