Emerging Markets' 'Pretty Negative Environment' to Continue, Nomura's Subbaraman Says

The video discusses the challenging environment for emerging markets (EM) due to rising US bond yields, a stronger dollar, and slowing EM growth. It explores how central banks in Asia might respond, with varied approaches expected across countries like India, Indonesia, and the Philippines. The video also examines the implications of current account surpluses and deficits, highlighting that while some Northeast Asian countries are insulated short-term, their long-term growth prospects may be weak. Conversely, countries like the Philippines and Indonesia show potential for long-term growth due to strong investment. The Philippines is noted for economic overheating, driven by strong domestic demand.

What are the main factors contributing to the negative environment for emerging markets?

• Rising US bond yields and a stronger dollar

• Decreasing US bond yields and a weaker dollar

• Falling US bond yields and a stable dollar

• Stable US bond yields and a fluctuating dollar

How are central banks in Asia expected to respond to the current economic environment?

• By following the Fed's actions closely

• By implementing varied responses

• By reducing interest rates

• By maintaining current interest rates

Which country is expected to have at least one more rate hike in December?

• Taiwan

• Thailand

• Indonesia

• India

What is a potential downside of having a current account surplus?

• Rapid currency depreciation

• Weak domestic demand and investment

• Strong domestic demand and investment

• High inflation rates

Which Asian country is currently experiencing economic overheating?

• Indonesia

• India

• Thailand

• Philippines