Bloomberg Surveillance · Tuesday, June 30, 2026
Bob Michael highlights emerging markets as a pleasant surprise, noting their ability to withstand significant interest rate hikes, the pandemic, and oil shocks. While acknowledging nuances like shifts from energy exporters to importers, Michael suggests these markets have developed faster than often credited, citing China's adaptation to oil import changes as an example.
“Emerging markets are the pleasant surprise of the year so far. Here is yet another shot that they survive. They survive the FEDS five hundred and twenty five basis point rate hikes never happened before, they survive COVID, and now they're surviving an oil shot.”
“It's a little bit more nuanced. We had owned the energy exporters. We've now gone back to the importers. But when you look at the way China was able to cut imports of oil and repurpose how they get energy, it tells us that the emerging markets are maybe have developed faster than we want to give the term emerging markets credit for.”