MNI EM Credit Weekly: Trump-Xi Will They or Won’t They

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EXECUTIVE SUMMARY

• Global EM spreads were stable during the week, as investors absorbed earnings and new issuance started to dissipate. Asia benchmark USD spreads tightened amid signs of improved China-US relations. In CEEMEA, Turikye CB lowered 1-week repo rates, GCC financials continued to report solid earnings. In LATAM Ecuador’s reform agenda gaining traction and Bolivia electing a reformist president.
• Next week, In Asia, attention will focus on the APEC meeting in South Korea, where President Trump and President Xi are expected to meet on Friday. In CEEMEA, we expect corporate earnings to pick up, with no real significant economic data due. Argentina local elections in focus with poor performance by the ruling party bad for bonds.
• Sovs mentioned: China, Australia, Indonesia, India, Turkiye, Kazakhstan, Senegal, Brazil, Bolivia, Argentina and Ecuador.
• Corps mentioned: UltraTech Cement, China Vanke, Rio Tinto, Chinalco, We Soda, FAB, Comm Bank of Dubai, Abu Dhabi Islamic Bank, Turk Telekom, Digi Communication, OTEC, CSN, Orbia and Braskem.