INSUBCONTINENT EXCLUSIVE:
By Yumi Teso , George Lei , and Alexander NicholsonThe selloff in emerging markets showed few signs of abating as a combination of mounting
and currencies.
The MSCI Emerging Markets Index of equities slumped 1.9 percent for the week, the biggest drop in a month, while a gauge
tracking developing-market currencies fell to a six-month low
The Bloomberg Barclays index of EM local-currency government bonds lost 0.2 percent in a second weekly decline.
Highlights for the week
ended June 15:The Fed raised interest rates by a quarter point for the second time this year in a widely expected move
Eight participants now see four or more hikes this year, compared with seven at the prior meeting.The ECB said it would end asset purchases
by the end of the year, but also pledged to keep interest rates at current record lows at least through the summer of 2019
The more dovish-than-expected outlook for borrowing costs weighed on the euro and boosted the dollar.President Donald Trump moved the United
States closer to a trade war with China by announcing tariffs on $50 billion of Chinese goods and pledging additional investment curbs,
effective next month; Beijing swiftly retaliated.ETF investors dumped emerging-market stocks in a fourth week of outflows, the worst losing
Sturzenegger.North Korean leader Kim Jong Un agreed to work toward complete denuclearization in a joint statement with President Trump, but
with 50.8 percent support and get the backing of a majority in parliament, according to a June 7-11 survey, though a surprise victory for
the opposition is also within the margin of error.Asia:The Chinese yuan fell while the Shanghai Composite Index of stocks closed at the
borrowing costs following the Fed as May retail sales, industrial production and fixed-asset investment all missed estimates.A 20 percent
investors were underwhelmed by the Trump-Kim summit: the ruling Democratic Party swept 14 of 17 metropolitan mayoralties and provincial
governorships, including the capital Seoul.The Indian rupee extended a two-week slide as the current-account deficit widened by more than
forecast in the first quarter on rising oil; inflation accelerated to 4.87 percent in May on the year from 4.58 percent the previous
month.India may reduce the issuance of short-tenor bonds, said Economic Affairs Secretary Subhash Garg.The Philippine peso slipped as the
billion in April, bigger than the estimate for a shortfall of $5.15 billion.The Borsa Istanbul 100 index fell to the lowest since April 2017
the ruble had its worst week since AprilRussia plans to raise the retirement age and increase the value-added tax.Saudi Arabia wants to
continue cooperation with Russia on oil, Crown Prince Mohammed bin Salman said at Kremlin talks with Russian President Vladimir Putin.South
missed estimates, rising at slowest pace since February 2017.FTSE/JSE Africa All Share index dropped, ending a two-week winning
raising financing costs and damping growth, the IMF said.The government spelled out its case against suspended tax chief Tom
much as $7.5 billion in the foreign-exchange market to support budget expenditures once it gets access to a credit line from the IMF; the
IMF said its executive board will vote on the credit line June 20
Argentine truck drivers went on a nationwide strike and other labor unions
have threatened to join the stoppage.The central bank held its benchmark interest rate at 40 percent and indicated it would stay high until
base scenario, central bank President Ilan Goldfajn said in an interview with Estado.The Ibovespa stock gauge fell to the lowest since
August 2017.The Mexican peso retreated for a third week; Andres Manuel Lopez Obrador, the favorite to win the presidency election, will work
to calm investors and business leaders who have been anxious about some of his promises, such as an audit of oil contracts, his campaign
chief said.Nafta renegotiations will continue through the summer as all three countries agree to work toward a deal, Canadian Foreign
election will be held on Sunday, with center-right candidate Ivan Duque poised for victory.
