MACRO ALERT: LATAM risk sharply off - Spain also casualty...

MACRO ALERT:

LATAM risk is not only concern driving ARS - Argentina pesos down hard, now IBEX50 is also a casualty due to the bank exposure....... the BRICS & Fragile Five currencies all under pressure and there is downside growth from this.......and that in the week IMF and World Bank increased their growth forecast for world in 2014! Talk about inverse indicator!

http://www.bloomberg.com/news/2014-01-24/argentina-seen-extending-world-s-biggest-currency-decline.html

 

I am small long USDMXN and USDZAR on this...

 

ARGENTINA CDS – trading @ 2400 handle… or 24% p.a to insure per year against default.

 

 

USD/ARS up 20% this year to date and ACCELERATING….

 

 

 

Spain – one of the best performing markets in 2013 is hurt from bank exposure to Argentina and Latam overall…..

 

 

AND remarkable "real life" impact.. Samsung Galaxy price same day… from 8000 to 11500 ARS!

 

 

Med venlig hilsen  |  Best regards
Steen Jakobsen  |  Chief Investment Officer

 

Saxo Bank A/S  |  Philip Heymans Allé 15  |  DK-2900 Hellerup
Phone: +45 39 77 40 00  |  Direct: +45 39 77 62 23  |  Mobile: +45 51 54 50 00

 

Research: http://www.tradingfloor.com/traders/steen-jakobsen

Please visit our website at www.saxobank.com

 

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