Turkey, Indonesia, S. Africa Need to Raise Rates to Stem Capital Outflows, Luk Says

The video discusses the overpricing of contagion risk in emerging markets, highlighting the political risks associated with the global trade war and China's economic stability. It examines market positioning, noting that while some emerging markets are rallying, others face challenges. The video also explores the role of central banks, emphasizing the accommodative policies of global central banks and the need for some emerging markets to raise rates to prevent capital outflows. The discussion concludes with an analysis of the current interest rate environment and its implications for emerging markets.

What factors are contributing to the current valuations of emerging markets?

How does political risk affect the stability of emerging markets?

What is the significance of the Ted spread in the context of emerging markets?

In what ways do central banks influence the economic conditions of emerging markets?

What are the implications of a potential trade war on emerging markets?