Emerging Markets Seminar Round-up

Nordea Markets has a long-standing tradition of organising the Emerging Markets Seminar. Here is a round-up.

The seminar was recently hosted in Copenhagen and the seminar gathered thought leaders, cross-asset clients and Nordea Markets experts for a full day of insights to emerging markets.

We have gone to some length to secure the right thought leaders on the topics that matters the most for corporates with vested interest in Emerging Markets,” said Henrik Käll, Head of Global Trading in his opening address.

Thereafter our 75 guests heard from Russian Central bank, represented by Mr Alexander Morozov that provided an update on Russian economic outlook. More insights were shared when Mr. Vladimir Tsibanov from Ministry of Finance of the Russian Federation spoke about Russia’s fiscal rule.

Out of all market updates, I have a particular interest on Russia and presentations on this topic are always excellent

- Guest with vested interest in the Russian economy

Our very own Tuuli Koivu from Nordea Research shared her insights on the Chinese economy entitled “Where will Xiconomics take China?”. During her presentation we learnt of the Chinese government’s strong focus on the real estate sector, how and why ghost cities appears and suddenly gets populated. The trade deficit between the US and China was in focus and we learnt of the underlying factors driving this.

Ms Mayte Rico from the Mexican Central bank was next to present her view on the Mexican financial markets as seen directly from the engine room of the central bank’s market operations. Ms Mayte highlighted that interest to invest in Mexico from institutional investors have increased quite a lot.

After a joint lunch, we were given an update on the Romanian and Bulgarian economies by Mr Alejandro Hajdenberg from IMF. With a Romanian GDP growth of 6.9% in 2017 one would think all is good, but signs of an overheating economy such as: record low unemployment rate, rising inflation and tightening labour market are emerging.

The latter is a topic you can read more about here. The Q&A centred around potential plans for the country to seek Euro-area membership, in light of Bulgaria’s interest in applying for ERM II in the short term.

Our guests were curious to understand which role Nordea plays in ensuring their investments in emerging markets are sustainable. Kasper Elmgreen from Nordea Asset Management presented how we use our voting rights and do field trips to visit corporates to influence their business models to a have sustainable focus. Kasper walked us through the development and performance of our Emerging Star fund to show how Nordea for years have worked with incorporating sustainable investments.

Our final speaker was Mr Steen Hadsbjerg from Arla Foods who gave a very entertaining account of Arla’s operations in Nigeria and wider Africa. Apart from the obvious cultural difference, real business challenges lie in handling power failures, the shortage of cash in the economy and how to manage over 100 days payment cycles. Mr Hadsbjerg generously shared his experiences and we all learnt valuable lessons about potential pitfalls to avoid when doing business in the region.

The EM seminar is a unique opportunity to meet analysts from central banks and other government institutions and hear them share their view on the economy and fiscal/monetary policies first hand. It’s like getting an insider view from those who actually have an ability to shape and influence the economy and that gives a very good perspective on the market itself

- Senior Treasurer

We are grateful to all the speakers taking the time to address our customers and grateful that Anders Svendsen moderated the seminar. Special thanks to lead organisers Jana Poulsenova, Anna Salkova and Tina Noer from Nordea Markets for all event logistics.

If you are interested in the latest topics of concern for companies with Emerging Markets
exposure or general interest in emerging markets, we invite you to take a look at the first edition of Emerging Markets View, our new flagship publication.

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