11 Jul 2014
Opportunity to buy EM - Societe Generale
FXStreet (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale, sees the recent price action in the EM space as a buying opportunity.
Key Quotes
" The top link is to the FX Weekly "Canaries and straws in the wind", and the second to the fixed income weekly "Storm in a teacup". The topic of the day yesterday was Portugal and the danger to Europe from widening Portuguese bond spreads, the threat to Portuguese government bonds from Banco Espirito Santo and the danger to BES from the Espirito Santo Group."
"The most-read story on Bloomberg this morning quotes BES saying that it has a Eur 1.2bn exposure to group companies and an Eur 2.1bn capital buffer beyond the regulatory 8% tier 1 ratio as of the end of Q1. Lack of liquidity, a reported explosion in Denizli, western Turkey, and poor mining data from South Africa yesterday all add to the sell-off for risk, but an excitable summer market is throwing up a short-term buying opportunity."
Key Quotes
" The top link is to the FX Weekly "Canaries and straws in the wind", and the second to the fixed income weekly "Storm in a teacup". The topic of the day yesterday was Portugal and the danger to Europe from widening Portuguese bond spreads, the threat to Portuguese government bonds from Banco Espirito Santo and the danger to BES from the Espirito Santo Group."
"The most-read story on Bloomberg this morning quotes BES saying that it has a Eur 1.2bn exposure to group companies and an Eur 2.1bn capital buffer beyond the regulatory 8% tier 1 ratio as of the end of Q1. Lack of liquidity, a reported explosion in Denizli, western Turkey, and poor mining data from South Africa yesterday all add to the sell-off for risk, but an excitable summer market is throwing up a short-term buying opportunity."