MENA | July PMIs, Oman’s electricity subsidies, Iran inflation
The PMIs for Saudi Arabia, the UAE and Qatar all remained in expansionary
territory in July at 55.8, 54.0 and 52.2 respectively. Both the UAE and Qatar’s
PMI rose on the back of stronger demand, but Saudi Arabia’s PMI fell for the
first time in four months.
What you will learn:
- The Omani government is set to reconsider plans to remove electricity
subsidies following complaints over the significant increase in May and June bills, with the authorities keen to avoid the clashes seen earlier this year due to worsening economic conditions and the current unemployment crisis.
- Iran’s headline inflation slowed in July to 43.7% y/y from 47.7% in June but remains high despite a decline in food and housing and utility price inflation rates.
- Saudi Arabia’s headline PMI declined for the first time in four months to 55.8 in July from 56.4 in June but remained well above the 50 no-change mark.
Local rates and FX: Asian local currency sovereigns – not long now
The pieces are almost in place for a high conviction OW on Asian local currency debt, but not quite. Indeed, we maintain a cautious view on all EM local currency sovereign bonds, including Asia, given the relentless concern over the dollar and domestic inflationary pressures.Find Out More
Pre-emptive debt restructuring: a viable scenario for Africa?
The question of debt restructuring is becoming a more pressing one: in recent weeks, a number of African sovereigns have openly or discreetly mulled public debt reorganisation, called for debt relief, or suffered credit rating downgrades owing to rising default odds.Find Out More