Capital flows to emerging markets securities fell 48 per cent month-on-month in July amid a spike in coronavirus cases and growing concerns about the impact of the Covid-19 pandemic on the global economy, according to a new report by the Institute of International Finance.
Emerging markets attracted around $15.1 billion (Dh55.45bn) in capital flows last month, bucking the trend in in June which saw a nine-fold increase in flows, the report shows.
“Emerging-market stocks and debt posted a second month of positive flows, with investor appetite underpinned by a falling dollar and an accommodative Federal Reserve,” the IIF said. “The advance [however] was limited by concern about a resurgence in virus cases and the dim global outlook for growth.”
Several countries across Asia and Europe have seen a second wave of coronavirus cases in the last two months as governments eased movement restrictions to allow resumption of businesses.
As of Tuesday, there were more than 18.4 million global coronavirus cases, with about 11.6 million recoveries while the death toll stood at more than 697,000, according to Worldometer.
Emerging market economies including Brazil and India are among the hardest hit with the total number of cases at more than 2.75 million and 1.85 million respectively.
The total debt flows to emerging markets reached $13.2bn in July, while on the equity side, inflows reached $2.3bn, the report said.
Regionally, EM Asia benefited the most, registering inflows of $9.9bn, followed by EM Europe at $2.0bn, according to the report.
The world economy is set to slide into the deepest recession since the Great Depression, with the International Monetary Fund projecting a 4.9 per cent contraction this year and a sluggish recovery in 2021.
Growth in China will decelerate to 1 per cent, compared to a previous 1.2 per cent growth estimate, after expanding 6.1 per cent in 2019, its slowest pace in about three decades, according to the fund.
Indian economy is expected to contract by 4.5 per cent and Brazil by 9.1 per cent, the fund said in a report in June.
“While sentiment metrics show a rebound in the outlook, hard data are still lagging behind,” the IIF said.
“Overall, the shape of the recovery will be dependent on the capacity of the EM complex to put in place efficient policies to catalyse a recovery.”
Moving forward, “we see investors being more discerning” regarding investment decisions towards emerging markets, the IIF said.
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
The Breadwinner
Director: Nora Twomey
Starring: Saara Chaudry, Soma Chhaya, Laara Sadiq
Three stars
Kibsons%20Cares
%3Cp%3E%3Cstrong%3ERecycling%3Cbr%3E%3C%2Fstrong%3EAny%20time%20you%20receive%20a%20Kibsons%20order%2C%20you%20can%20return%20your%20cardboard%20box%20to%20the%20drivers.%20They%E2%80%99ll%20be%20happy%20to%20take%20it%20off%20your%20hands%20and%20ensure%20it%20gets%20reused%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EKind%20to%20health%20and%20planet%3C%2Fstrong%3E%3Cbr%3ESolar%20%E2%80%93%2025-50%25%20of%20electricity%20saved%3Cbr%3EWater%20%E2%80%93%2075%25%20of%20water%20reused%3Cbr%3EBiofuel%20%E2%80%93%20Kibsons%20fleet%20to%20get%2020%25%20more%20mileage%20per%20litre%20with%20biofuel%20additives%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ESustainable%20grocery%20shopping%3C%2Fstrong%3E%3Cbr%3ENo%20antibiotics%3Cbr%3ENo%20added%20hormones%3Cbr%3ENo%20GMO%3Cbr%3ENo%20preservatives%3Cbr%3EMSG%20free%3Cbr%3E100%25%20natural%3C%2Fp%3E%0A
UAE currency: the story behind the money in your pockets
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
Sanju
Produced: Vidhu Vinod Chopra, Rajkumar Hirani
Director: Rajkumar Hirani
Cast: Ranbir Kapoor, Vicky Kaushal, Paresh Rawal, Anushka Sharma, Manish’s Koirala, Dia Mirza, Sonam Kapoor, Jim Sarbh, Boman Irani
Rating: 3.5 stars
UAE currency: the story behind the money in your pockets
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
UAE currency: the story behind the money in your pockets
Read more about the coronavirus
Global Fungi Facts
• Scientists estimate there could be as many as 3 million fungal species globally
• Only about 160,000 have been officially described leaving around 90% undiscovered
• Fungi account for roughly 90% of Earth's unknown biodiversity
• Forest fungi help tackle climate change, absorbing up to 36% of global fossil fuel emissions annually and storing around 5 billion tonnes of carbon in the planet's topsoil
Zayed Sustainability Prize
Brief scoreline:
Manchester United 0
Manchester City 2
Bernardo Silva 54', Sane 66'
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
Titanium Escrow profile
Started: December 2016
Founder: Ibrahim Kamalmaz
Based: UAE
Sector: Finance / legal
Size: 3 employees, pre-revenue
Stage: Early stage
Investors: Founder's friends and Family
More from Neighbourhood Watch
