Strategy

February 16, 2015

MidLincoln Emerging Markets Charts and Datamine

Mining for Emerging Markets  Ideas

Perhaps Lukashenko wants to get Putin's chair.
The inflationary case for a weaker yuan
Lower Oil Causes Little U.S. Credit Disruption: Chart of the Day
Coal prices are testing the resistance of the downward trend of the last 4 years.
US crude oil inventories are at their highest level in at least 80 years
India and China free float are set to increase
China largest steel maker wants to invest into capacity oversees
India�s economy is now growing faster than China's
Turkish foreign minister demands extradition of theologian Gulen




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Perhaps Lukashenko wants to get Putin's chair.


We do not know if its true, but social media is full of humorous movie clip where Belarussian president Alexander Lukashenko grabs a chair from under Putin. This could be a metaphore

Source:https://meduza.io/en/lion/2015/02/12/belarusian-president-nearly-pulls-the-chair-out-from-under-putin-literally

The inflationary case for a weaker yuan


Yuan 20 per cent trade weighted appreciation it has seen since the currency's exchange regime was made more flexible in 2010, is likely to trigger a further widening of the yuan's daily trading band to 3 per cent each way, from the current 2 per cent, in a bid to steer the currency lower. Because the strong yuan is exerting similarly strong deflationary pressure on a quickly cooling economy in which industrial profits are growing at the slowest pace since 2012. Inflation is now running fully 2.7 percentage points below the central bank's 3.5 per cent target rate. Getting back to target while supporting the industrial sector would be a golden combination.

Source:http://www.scmp.com/business/money/article/1710305/chart-day-inflationary-case-weaker-yuan

Lower Oil Causes Little U.S. Credit Disruption: Chart of the Day


Cheaper crude and related declines in drilling and capital spending are �just not being as disruptive to credit markets� as might be anticipated before a recession. More banks eased terms for lending to larger borrowers in January than tightened them, according to a quarterly survey of senior loan officers by the Federal Reserve

Source:http://www.bloomberg.com/news/articles/2015-02-11/lower-oil-causes-little-u-s-credit-disruption-chart-of-the-day

Coal prices are testing the resistance of the downward trend of the last 4 years.




Source:http://www.businessinsider.com.au/chart-of-the-day-coal-breaks-its-4-year-downtrend-2015-2

US crude oil inventories are at their highest level in at least 80 years




Source:http://www.businessinsider.com/markets-chart-of-the-day-february-11-2015-2

India and China free float are set to increase


India free float is small.Free float of stock available for trading, as percentage of total shares in benchmark gauges among the world�s 15 biggest markets. India�s CNX Nifty ranks lowest at 48 percent, with the Shanghai Composite Index second-tightest at 50 percent. The U.S.�s Standard & Poor�s 500 Index is the most liquid, at 95 percent, according to data compiled by Bloomberg. India�s low free float, a consequence of high share ownership by company founders, deters some investors because they are unable to buy or sell large positions easily. The proportion will climb to 52 percent this year as regulators encourage more equity sales and the government speeds up divestment of stakes in state-run companies

Source:http://www.bloomberg.com/news/articles/2015-01-06/india-stock-sales-to-lift-world-s-lowest-float-chart-of-the-day

China largest steel maker wants to invest into capacity oversees


China owns over 700mnt of steel capacity. But it wants to get more capacity in other countries. Premier Li Keqiang said on Nov. 13. Hebei Province, the nation�s biggest steelmaking region, subsequently said it aims to transfer 5 million tons of production capacity overseas by 2017 and 20 million tons by 2023. Quite bizzare strategy

Source:http://www.bloomberg.com/news/articles/2014-12-15/china-steel-capacity-transfer-is-imaginary-chart-of-the-day

India�s economy is now growing faster than China's


Indeed India has been a rare bright spot among emerging markets.

Source:http://www.economist.com/news/business-and-finance/21642656-indias-economy-grew-faster-chinas-end-2014-catching-dragon

Turkish foreign minister demands extradition of theologian Gulen


Turkish Foreign Minister Mevlut Cavusoglu said that the U.S. must extradite theologian Fethullah Gulen. He reminded that Gulen�s passport had been nullified, Trend reports. Turkish Justice Minister Bekir Bozdag said earlier that Gulen�s movement was planning an Islamic revolution in Turkey.

Source:http://www.zaytung.com/fotohaberdetay.asp?newsid=238498