Coronavirus Pushes Some Emerging Markets to Brink of Default

Joseph B. Hash

An unprecedented withdrawal of capital from emerging marketplaces is threatening to produce a wave of financial debt defaults as governments struggle with the double whammy of falling oil costs and the rapidly spreading coronavirus outbreak.

As traders fled emerging-market bonds in the latest months in favor of haven belongings, bond yields for the most vulnerable economies have skyrocketed. In one case in point, the generate on a dollar-denominated Angolan authorities bond maturing in November 2025 jumped to approximately 30% on Friday, from underneath 7% at the beginning…

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Coronavirus Pushes China’s Economy to the Brink

Joseph B. Hash

SHANGHAI—Business action in China turned broadly detrimental for the first time on document as home product sales, building action, retail product sales and factory output plunged, pushing unemployment to a document superior, signs of the high priced financial destruction linked with making an attempt to management the spread of the coronavirus.

Taken with each other, the information, which is from the first two months of the year, paint a bleak photograph of the effects that China’s authorities lockdowns on the motion of people and items have experienced considering the fact that they were executed in…

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