Cristian Maggio

Cristian Maggio has been quoted 17 times. The two most recent articles where Cristian Maggio has been quoted are EMERGING MARKETS-Emerging assets hit by China rate rise; lira resumes weakening and EMERGING MARKETS-Emerging stocks rise, currencies mixed on tepid dollar. Most recently, Cristian Maggio was quoted as having said, “The slide in the renminbi that we saw last year has reversed in January - the local authorities want to provide more support for the currency against the dollar or other currencies they have trade flows with. In the long term (FX purchases) is a respectable goal that will add to Russia's strength and give the government some additional budget discipline. But at the same time it will help weaken the currency, smooth volatility, and reduce the correlation between the dollar/rouble exchange rate and oil prices.”.

Cristian Maggio quotes

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Two things are supporting emerging market currencies: One is the yield and the other is volatility, and - as long as volatility remains low and yields remain high - the carry trade continues and this attracts flows into lira, rouble and other high yielders. It signals that the acute phase of the Russian crisis is over and none of the agencies expect further deterioration on the macro and creditworthiness front.

The slide in the renminbi that we saw last year has reversed in January - the local authorities want to provide more support for the currency against the dollar or other currencies they have trade flows with. In the long term (FX purchases) is a respectable goal that will add to Russia's strength and give the government some additional budget discipline. But at the same time it will help weaken the currency, smooth volatility, and reduce the correlation between the dollar/rouble exchange rate and oil prices.

Where you have an economy that is struggling to gain traction, any additional rate hike will add to the negative developments. It may derail the recovery and it might compromise the government's attempts to achieve a certain level of budget deficit.

In terms of Trump and the impact on emerging markets, the market is still trying to figure out what will happen. There are still a few more days before he is sworn in. China is a big player and Trump's rhetoric so far has been quite aggressive against China. Currencies are bouncing back and forth, and the renminbi is not immune from these fluctuations.

There is in general a more optimistic sentiment on emerging currencies today, which is because of the dollar weakening as a consequence of Trump's speech yesterday.

The final outcome was a done deal, but the message overall appeared more hawkish then we all expected ... and the reaction has been text-book with a sell-off in emerging markets, especially currencies. This is a very illiquid time, and it is a pity that these big events - this year like last year - are happening at this time of the year ... so the market moves are overextended.

The market has become overly optimistic on South Africa - it has priced in for too long without any solid reason that (President Jacob) Zuma may end his term prematurely.

The risk is that a strong print in the payrolls may firm the hand of the Fed. Pretty much everybody is expecting a hike of 25 bps in December, but it's about what comes next - the strength of the U.S. economy is one of those factors that will determine how aggressively the Fed tightens monetary policy next year.

No one has a clear answer to that question. We don't expect all his pledges to be implemented.

China's economy is at risk with his election, in particular that (Trump) would want to label China a currency manipulator. This is going to add strains to trade and diplomatic relations.

It's difficult to predict what Trump will do as president. In the absence of a clear view, the normal reaction is to hedge one's position by reducing risk exposure.

(Trump) is using very anti-Mexican rhetoric - from an immigration standpoint, and a (trade) standpoint, Mexico has a lot to lose if Trump goes ahead with those plans.

The fact that (the data) came in line with expectations is neutral, but it removes the risk of weaker growth. That gives the rest of emerging markets the liberty to focus on different aspects, and the move seems to be positive.

With the risk of further downgrades, this sector will be under pressure, which will likely trigger big outflows and put more pressure on the currency.

The market doesn't have many chances to be surprised on the positive side.

The market is just extending the moves we saw prevailing last week which were in a positive direction.

The odds that Rousseff will continue to the end of her mandate have fallen below 50 percent and the market is very happy about it.

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