The reverberations from China’s slowing economy are being felt most acutely in commodities‑producing nations such as Brazil and Russia, whose economies can be viewed as a leveraged bet on China. Arguably the developed world has not benefited a great deal from the emerging markets growth story since capital has fled the developed world to seek opportunities in the emerging markets. As the US now recovers, the money will flow in the other direction, which spells bad news for emerging market economies.
Declining US Bond Yields
Ten-Year and Three-Month US government bond yields have been declining since 1984
Growing Emerging-Market Concerns
Emerging markets' credit default swap (CDS prices are rising while Eurozone CDS prices are stabilizing
Video: The Only Way is Up
Barrie Wilkinson, London-based partner and co-head of Oliver Wyman’s Finance & Risk practice in Europe, Middle East, and Africa. discusses what a rise in US interest rates could mean for the global economy.