How to Bet on the Middle Class in Emerging Markets

A growing consumer base in Brazil, India and Mexico will power spending for years to come.

Not even the dog days of summer can still the geopolitical waters for long. While the uneasy truce between the U.S. and Iran is intact, a permanent solution still feels far away. The United Arab Emirates said late Tuesday it was halting all trade and financial transactions with Iran. North American dealmaking is faring much better, but it’s still dicey. President Donald Trump paused a wave of tariffs on Canada that were set to go into effect this week, saying that both countries were close to finalizing new trade terms. I’ll talk more about Canada in a bit, but first, I’m diving into the world of emerging markets. Countries like India, Brazil, and Mexico are set to benefit from a growing middle class that’s making EM financials look very attractive. I also sat down with the chief financial officer of Mercado Libre , Latin America’s biggest online retailer, to learn more about how they’re thinking about the future. And finally, I’m taking a look at Europe’s looming energy problem as the bloc heads into winter with low natural gas supplies. Mentioned in this newsletter: Donald Trump, Mark Carney, Mercado Libre, Pictet, Itaú Unibanco, Credicorp, ICICI Bank, Banorte, Sociedad Química y Minera de Chile, El Niño.

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