Emerging Market Rout Extends to the Gulf Region

The video discusses the current state of the carry trade, focusing on the impact of rising US bond yields and the Trump factor on emerging markets. It highlights the selling of emerging market bonds and the resulting currency impacts. Despite these challenges, there are positive trends in emerging markets, such as narrowing current account deficits and strong growth rates. The video suggests that once the Trump factor stabilizes, there may be a return to the carry trade.

What factors are contributing to the current state of the carry trade?

How has the rise of US bond yields affected emerging market bonds?

What is the 'Trump factor' and how is it influencing market emotions?

What positive developments are still occurring in emerging markets despite current challenges?

In what ways are current account deficits and growth rates in emerging markets significant?