Cuervo: inflation biggest threat to LatAm and EM markets

Inflation is the biggest threat facing Latin America and other emerging markets, according to Halbis...

Inflation is the biggest threat facing Latin America and other emerging markets, according to Halbis UK's emerging market equities manager Jose Cuervo. "Interest rates are going up globally, which may lead to the risk of recession later on and commodity price rises, placing Latin American countries at risk," he said. However, Cuervo expects we will actually see a soft landing in global growth, suggesting commodities will not drop off substantially. The manager pointed to Brazil as an example of a country that would be vulnerable to inflation. "Brazil has strong secular trends and it...