Latest news with #GlobalEmergingMarket
Express Tribune
3 hours ago
- Business
- Express Tribune
Pakistan tops rankings for risk improvement
Listen to article In a major economic milestone, Pakistan has emerged as the top-performing market in the Global Emerging Market (EM) Rankings for reducing sovereign credit risk, according to a new Bloomberg Intelligence report. Over the past 12 months, Pakistan recorded the largest drop in sovereign default risk worldwide, measured through Credit Default Swaps (CDS), highlighting improved creditworthiness and economic stability. The CDS-implied probability of default has decreased significantly, positioning Pakistan at the forefront of the global EM pack. While Bloomberg's terminal data isn't widely accessible, the report was shared by Finance Minister's adviser Khurram Schehzad on social media platform X, sparking optimism within the financial community. Schehzad wrote, "As per the latest data posted by Bloomberg Intelligence, Pakistan stands out globally as the most improved economy in terms of reduction in sovereign default risk, as measured by CDS-implied probability." He added, "This is a resounding signal to global investors: Pakistan is not only back on the mapit is moving forward with stability, credibility, and reform at its core." According to the report, Pakistan's default probability fell from 59% to 47%, marking an 1,100 basis point improvementsharper than reductions seen in Argentina (7%), Tunisia (4%), and Nigeria (5%). In contrast, countries like Turkey, Ecuador, Egypt, and Gabon saw increases in their risk levels.
Express Tribune
11 hours ago
- Business
- Express Tribune
Pakistan records largest drop in default risk among emerging markets
Listen to article Pakistan has achieved the world's steepest decline in sovereign default risk over the past year, leading Bloomberg Intelligence's Global Emerging Market (EM) Rankings for credit risk improvement, according to data released by the finance minister's adviser on Saturday. Bloomberg, the international financial information and media firm, has described Pakistan as the most improved economy in terms of reducing default risk. The report attributes this progress to renewed investor confidence, macroeconomic stabilisation, structural reforms, successful engagement with the International Monetary Fund (IMF), timely debt repayments, and positive credit outlooks from global rating agencies including Fitch and S&P. According to Bloomberg's research division, Pakistan's credit default swap (CDS)-implied probability of default declined from 59 per cent to 47 per cent over the last 12 months — an 11 percentage point drop and the largest reduction among emerging markets globally. This improvement outpaces other countries such as Argentina, Tunisia, and Nigeria, while some nations including Egypt, Gabon and Turkey have seen their default risks increase. Breaking: Pakistan Leads the World in Sovereign Risk Improvement - Tops Global EM Rankings As per the latest data posted by Bloomberg Intelligence, Pakistan stands out globally as the most improved economy in terms of reduction in sovereign default risk, as measured by… — Khurram Schehzad (@kschehzad) June 28, 2025 Khurram Shehzad, adviser to the finance minister, took to social media platform X to highlight Pakistan's achievement, stating that the country 'stands out globally as the most improved economy in terms of reduction in sovereign default risk.' Read More: Pakistan, WB boost ties with $40b framework He further added that this 'marks the sharpest decline among major emerging markets,' and credited factors such as macroeconomic stabilisation, structural reforms, successful IMF engagement, and timely debt repayments for the positive trend. 'This is a resounding signal to global investors that Pakistan is not only back on the map — it is moving forward with stability, credibility, and reform at its core,' he said. Prime Minister Shehbaz Sharif welcomed the Bloomberg report, expressing satisfaction over the acknowledgment of Pakistan's economic stability. 'The report acknowledges important institutional reforms in various sectors, successful agreement with the IMF, and timely loan repayments, which are definitely evidence of improvement in the government's economic situation,' he remarked. Also Read: Global ranking of green passport improves He added that Pakistan was among the few countries to show the most economic improvement in the past year, according to Bloomberg's data, and said the country was advancing swiftly towards a stronger economic future. The prime minister attributed these gains to the sustained efforts and dedication of the government's economic team.
Business Times
23-05-2025
- Automotive
- Business Times
Analysts bullish on BYD as it overtakes Tesla, edge out other Chinese electric vehicle players
[SINGAPORE] Analysts are getting bullish on BYD as the Chinese automaker's soaring exports, rising global presence and cost competitiveness signal favourable tailwinds. In a Friday (May 16) research note, UOB Kay Hian (UOBKH) named BYD as a top buy and assigned it a 510 yuan target price. Morgan Stanley on Wednesday added BYD to its Global Emerging Market and Asia Pacific ex Japan Focus lists. Citi in a Wednesday note raised its target price for the counter to 669 yuan, with a 'buy' rating. This comes as the automaker logged a surge in exports for 2025, particularly in Europe, where it outsold Elon Musk's Tesla in sales in the continent for the first time. BYD registered 7,231 new-battery electric vehicles (EV) in April, a 169 per cent year-on-year surge that launched it into the top 10 brands by EV sales, while the American automaker moved one spot lower as its registrations dived 49 per cent. 'We think (BYD's) valuation is attractive at 18.3 times 2026 estimates for price-to-earnings ratio with 22 per cent return on equity,' said Morgan Stanley. On track for export growth target, strong 4M 2025 performance: Citi Based on the first four months of 2025, China's passenger vehicle export pattern has turned 'even more favourable towards BYD', Citi analysts Jeff Chung, Kyle Wu and Betty Li said. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up They pointed out that BYD's battery EV export market share 'accelerated significantly' from 23 per cent in FY2024 to 38 per cent for the first four months of FY2025. 'From the year-to-date trend for 2025, we expect (that for) 2025/2026, plugin-hybrid vehicles (PHEV) China exports… should grow at 236 per cent/100 per cent year on year,' they said. During the first four months, the Chinese automaker's exports grew across its Europe, Oceania, South-east Asia and Latin America markets, as Europe exports led growth and surged 385 per cent year on year. Given its performance for the four-month period, Citi analysts think BYD is 'on track' to hitting its 2025 export volume target of around one million exports, which 'remains achievable'. 'We expect BYD new energy vehicle 2025/2026 sales volumes of 5.75 million/7.2 million units on high-end brand sales growth, much better demand/supply relationship within the PHEV sector, wider average selling price positioning within the battery EV segment penetrating both the lower-end and higher-end segments going forward, and decent export sales growth.' Rising global presence, outselling Tesla With strong April 2025 sales, BYD is rapidly overtaking Tesla in Europe, said UOBKH analysts Ken Lee and Bella Lu. The Chinese carmaker outsold Tesla at ratios of 2:1 in Germany and 5:1 in the UK, and became the top EV brand in Italy with a 11.5 per cent market share. 'As Tesla's European sales slide and BYD expands aggressively, the competitive gap continues to widen,' they said. Morgan Stanley similarly highlighted BYD's 'increasing global presence'. Beyond overseas competition, the automaker has advantages over domestic peers – other Chinese EV players – given its vertically integrated supply chain and growing scale, said Tim Hsiao, auto analyst for China at Morgan Stanley. Better tech, lower costs BYD models such as Atto 3, Seal, and Song Plus DM-i are winning over European buyers with lower costs and superior technology, said UOBKH, while Morgan Stanley favours the automaker for its 'rapid EV product innovation'. BYD's 'localised strategy', with more than 120 stores, a Hungary plant set to open in 2026 as well as a balanced EV/PHEV lineup, contrasts with Tesla's premium pricing and limited model range, UOBKH noted. Likewise, Morgan Stanley's Hsiao pointed out that the automaker outdoes other Chinese EV players given its greater cost competitiveness and bargaining power with supply chains.
