Kokomo Tribune; Kokomo, Indiana

National news

June 12, 2014

Brazil, other markets are no longer 'Fragile Five'

NEW YORK (AP) — Soccer fans will focus on Brazil and the start of the World Cup Thursday, but investors have been entranced by that nation's stock market for months.

Brazil has company. From Sao Paulo to Mumbai, investors are regaining their faith in emerging markets this year.

It's a big shift from 2013, when investment in those markets dried up because of worries about their slowing economic growth. It got so tough that five big developing markets — Brazil, South Africa, India, Indonesia and Turkey — were dubbed the "Fragile Five" by analysts at Morgan Stanley.

Now those countries are much more appealing to investors. Some have taken actions to strengthen their economies. Others have gone through political changes that have bolstered investor confidence. At the same time, slower growth in the U.S. has made investing overseas more alluring.

"These countries have done some homework to reduce their fragilities," says Jorge Mariscal, chief investment officer for emerging markets at UBS Wealth Management. "They have helped themselves a bit."

The "Fragile Five" raised interest rates to draw investors' cash back into their countries. India, for example, lifted its rate from 7.25 percent in September to 8 percent in March; Brazil hiked rates from 7.5 percent in May of last year to their current level of 11 percent.

Higher interest rates are appealing to investors in the U.S., where the Federal Reserve has held its benchmark lending rate at close to zero for more than five years, and where bond yields remain low.

In India, the government has also raised duties on gold. The metal is India's second-biggest import behind oil, and purchases have soared in recent years as incomes have risen there. The increased buying has sped up the flow of money out of the country, and weakened its currency.

Politics are also playing a role.

Text Only | Photo Reprints
National news
  • CIA Investigations [Duplicate] State Dept: 'No American is proud' of CIA tactics

    WASHINGTON (AP) — The State Department has endorsed the broad conclusions of a harshly critical Senate report on the CIA's interrogation and detention practices after the 9/11 attacks, a report that accuses the agency of brutally treating terror susp

    July 31, 2014 1 Photo

  • Full appeals court upholds labels on meat packages WASHINGTON (AP) — A federal appeals court has upheld new government rules that require labels on packaged steaks, ribs and other cuts of meat to say where the animals were born, raised and slaughtered. The meat industry has attempted to block the rul

    July 29, 2014

  • Hepatitis Drug [Duplicate] $1,000-per-pill Sovaldi now hepatitis treatment of choice WASHINGTON (AP) — The price may be high but so is demand. A new $1,000-per-pill drug has become the treatment of choice for Americans with hepatitis C, a liver-wasting disease that affects more than 3 million. Even with insurers reluctant to pay, Sov

    July 29, 2014 1 Photo

  • Debt Study [Duplicate] Study: 35 percent in US facing debt collectors WASHINGTON (AP) — More than 35 percent of Americans have debts and unpaid bills that have been reported to collection agencies, according to a study released Tuesday by the Urban Institute. These consumers fall behind on credit cards or hospital bill

    July 29, 2014 1 Photo

  • Virus drugmaker fights pediatricians' new advice CHICAGO (AP) — A costly drug given mostly to premature babies is at the center of a clash between the manufacturer and the nation's leading pediatrician's group, which recommends scaling back use of the medicine. The dispute involves new guidelines f

    July 28, 2014

  • Family Slain Maine [Duplicate] Police investigate deaths of family of 5 in Maine SACO, Maine (AP) — The state medical examiner plans to conduct autopsies on the bodies of five family members found shot to death in an apartment in southern Maine. Three children ages 4, 7 and 12 were among the victims discovered Sunday afternoon wh

    July 28, 2014 1 Photo

  • Obama Exporting Pollution [Duplicate] Not in my backyard: US sending dirty coal abroad NEWPORT NEWS, Va. (AP) — Coal from Appalachia rumbles into this port city, 150 railroad cars at a time, bound for the belly of the massive cargo ship Prime Lily. The ship soon sets sail for South America, its 80,000 tons of coal destined for power pl

    July 28, 2014 1 Photo

  • Zimmerman says he'll appeal NBC lawsuit dismissal ORLANDO, Fla. (AP) — George Zimmerman has filed a notice to appeal the dismissal of his defamation lawsuit against NBC Universal and three reporters. The appeal notice was filed Tuesday with the Seminole County Clerk of Courts. Judge Debra Nelson on

    July 25, 2014

  • House votes to limit tax credit for immigrants WASHINGTON (AP) — The House passed a bill Friday that would gradually increase the popular child tax credit and make it available to more families with higher incomes. However, millions of low-income families would lose the $1,000-a-child credit in 2

    July 25, 2014

  • Ruling on antibiotics in livestock reversed NEW YORK (AP) — The U.S. Food and Drug Administration isn't required to hold public hearings to evaluate the health risks of widespread use of antibiotics in animal feed, a federal appeals court ruled Thursday. The decision by the 2nd U.S. Circuit Co

    July 25, 2014

Latest news
Featured Ads
Only on our website
AP Video
Netanyahu Vows to Destroy Hamas Tunnels Obama Slams Republicans Over Lawsuit House Leaders Trade Blame for Inaction Malaysian PM: Stop Fighting in Ukraine Cantor Warns of Instability, Terror in Farewell Ravens' Ray Rice: 'I Made a Huge Mistake' Florida Panther Rebound Upsets Ranchers Small Plane Crash in San Diego Parking Lot Busy Franco's Not Afraid of Overexposure Fighting Blocks Access to Ukraine Crash Site Dangerous Bacteria Kills One in Florida Workers Dig for Survivors After India Landslide Texas Scientists Study Ebola Virus Smartphone Powered Paper Plane Debuts at Airshow Southern Accent Reduction Class Cancelled in TN
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Obituaries
Poll
Kelly Lafferty's video on Tom Miller