This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Financial Lobby Group Warns On Emerging Markets

So far, there are few indications that the world's central banks are about to change course anytime soon. On Tuesday, the Bank of Japan bowed to pressure from government to raise its inflation target â¿¿ a move that will likely mean it has to increase its money supply. Meanwhile, the European Central Bank and the Bank of England are both facing pressure to do more to help their ailing economies.

In its report on investment flows into emerging markets, the IIF said most emerging market governments may have the foresight to avoid the pitfalls of boom and bust. However, it said investors and some governments may not be so careful, leading to unexpected losses and market turmoil.

The institute suggested rich countries should coordinate rate policy â¿¿ and that failure to do so risks undermining investor confidence and more market turmoil.

The rise in flows have made many uneasy in developing countries, since the inflows can lead to rising exchange rates for the countries that are on the receiving end. The higher exchange rates have the potential to hurt their exports.

The IIF said Tuesday that capital flows to Latin America and emerging Asian economies such as China, Indonesia and India are now 30 percent above the level in 2007, before the global financial crisis.

It raised its figure for capital flows for 2012 to $1.080 trillion from $1.026 trillion estimated in October and said money movements picked up sharply in the last months of 2012 and will likely rise in 2013 to $1.118 trillion and again in 2014 to $1.115 trillion.

The IIF, which is based in Washington, D.C., has 450 members, including major global commercial and investment banks, insurance companies, investment funds, hedge funds, and other finance-related institutions.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,776.91 +93.33 0.53%
S&P 500 2,081.34 +12.58 0.61%
NASDAQ 4,997.4590 +5.5190 0.11%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs