Trump Factor Swings Emerging Markets

The video discusses the impact of volatility in markets, particularly focusing on the influence of Trump's policies on emerging markets and the Mexican peso. It highlights the rise in default rates among corporate borrowers in emerging markets due to low interest rates and increased debt. The discussion also covers market reactions to the US elections, with a focus on the potential outcomes of a Trump or Clinton victory. The Mexican peso is used as an indicator of market sentiment towards Trump's policies, especially concerning trade deals like NAFTA.

What is one of the main reasons for the rising default rates in emerging markets?

• Increased corporate borrowing

• High-interest rates

• Decreased investor demand

• Stable market conditions

How have markets reacted to the prospect of a Clinton victory?

• They have seen a massive sell-off

• They have become more volatile

• They have largely priced it in

• They have ignored it

What is the 'Trump ometer' in the context of this discussion?

• A tool for predicting election outcomes

• A measure of Trump's popularity

• A gauge of market volatility

• The Mexican peso's reaction to Trump's policies

Which market is most affected by Trump's statements about trade deals?

• African markets

• Australian markets

• European markets

• Asian markets

What has been the effect of Trump's potential policies on the Mexican peso?

• It has strengthened significantly

• It has remained stable

• It has become a measure of market sentiment

• It has been unaffected