The Middle East war risks ending a run of net credit-rating upgrades across emerging markets and could trigger a new downgrade cycle as it fuels inflation and tightens financial conditions, S&P Global Ratings Director Ravi Bhatia said. The warning comes as an energy shock ripples through developing economies, after disruption along a key oil shipping route sent oil prices soaring, raising costs fo...
The Middle East war risks ending a run of net credit-rating upgrades across emerging markets and could trigger a new downgrade cycle as it fuels inflation and tightens financial conditions, S&P Global Ratings Director Ravi Bhatia said. The warning comes as an energy shock ripples through developing economies, after disruption along a key oil shipping route sent oil prices soaring, raising costs for energy importers such as India, Turkey and Kenya. Even exporters are bracing for fallout as higher prices globally weigh on growth, stoke inflation and curb tourism. The shift would mark a reversal from the past three years, when many emerging markets repaired balance sheets, implemented fiscal reforms and regained market access after the pandemic triggered widespread defaults and rating cuts. Falling defaults across sovereigns and companies helped drive a net upgrade cycle in 2024 and 2025. A prolonged Iran conflict could now tilt the balance back toward downgrades. “Last year we saw inflation falling and credit conditions easing, leading to net upward rating pressure across Middle East and Africa sovereigns,” Bhatia said. “However, in 2026, given the new conflict in the Middle East, inflationary pressures are expected to rise, and financing conditions will become more challenging for the MEA region, raising potential downside risks.” Emerging-market sovereign dollar bonds returned about 52% between October 2022 and February 2026 as post-pandemic fiscal reforms helped resolve most debt defaults, attract foreign inflows and compress risk spreads. Three years of declining defaults pulled African sovereigns out of distress and fueled rallies in previously distressed issuers such as Lebanon and Ukraine. That momentum has reversed over the past four weeks after Iran moved to constrain the Strait of Hormuz — a route for about 20% of global energy exports — in response to attacks by the US and Israel. Brent crude traded at $115 a barrel on Monday, up from $72.48 before the war....
Sergio Delle Vedove Nike is due to report fiscal third-quarter results after the close on March 31, with Wall Street analysts expecting revenue of $11.2B and EPS of $0.28, down from last year's mark of $0.54. Key themes investors will be focused on include the update from Nike ( NKE ) on current demand trends, especially in China, and the outlook for margins amid new headwinds. In addition, manage...
Sergio Delle Vedove Nike is due to report fiscal third-quarter results after the close on March 31, with Wall Street analysts expecting revenue of $11.2B and EPS of $0.28, down from last year's mark of $0.54. Key themes investors will be focused on include the update from Nike ( NKE ) on current demand trends, especially in China, and the outlook for margins amid new headwinds. In addition, management commentary on product innovation, inventory discipline, and collaborations will tip sentiment. The impact of the World Cup being hosted in the U.S. this summer could also be a catalyst. Oppenheimer analyst Brian Nagel said the firm is hard-pressed to envision an “all clear” report for Nike ( NKE ), but expects that behind the noise of ongoing internal and external challenges, the report and management commentary should highlight continued, forward progress in successful strategic repositioning efforts at the company. "Per our analysis, now historical trough-ish multiples for NKE meaningfully underappreciate intermediate- to longer-term recovery prospects for the enterprise and discount well for further turnaround-related hindrances, nearer term," wrote Nagel. Outperform-rated Nike ( NKE ) is one of the firm's top picks within the consumer growth and e-commerce coverage. BTIG analyst Robert Drbul expects Nike ( NKE ) to show incremental underlying progress, particularly in North America. "In our view, management is making harder, faster decisions to reset the business, while the innovation engine is beginning to reassert itself," previewed Drbul. The firm believes investors may be underappreciating the degree to which Nike ( NKE ) is making the tough calls necessary to improve the trajectory of its business, particularly after recent actions such as corporate role reductions at Converse, distribution/automation-related changes in Memphis, and leadership appointments showing that Nike is prioritizing speed, accountability, and efficiency, which should all aid margin reco...