In July, even before US steel tariffs had sparked the sharp sell-off in Turkish lira that then spread its tremors across emerging markets (EMs) and risk assets from commodities to equities, strategists at Bank of America Merrill Lynch (BAML) were pondering potential winners from rising political populism.
They suggested that the inability of monetary and fiscal policy, global synchronized recovery and record corporate profits to create sustained wage growth means investors must discount more protectionism, redistribution and ultimately debt monetization via central banks in coming years, trends that a recession would dramatically accelerate.
Access intelligence that drives action
To unlock this research, enter your email to log in or enquire about access
