India may be one of the most vulnerable EMs, say Lambregts & Erken

EMs may struggle in the short term on the back of rising geopolitical developments, say Jan Lambregts and Hugo Erken

London-based Jan Lambregts , managing director and global head of financial markets research, Rabobank International, and Hugo Erken, head of international economics, RaboResearch Global Economics & Markets, tell Puneet Wadhwa that EMs may struggle in the short term on the back of rising geopolitical developments, which will likely cause a shift towards risk-off sentiment and capital outflows. Edited excerpts:

How do you see the global financial markets play out in the second half of 2020?

Lambregts: Consolidation is probably the best thing we can hope for, with significant downside risks returning in equity markets. While global liquidity remains ample and central