Welcome to our exchanges of Goldman Sachs markets update for Friday, January 15th.

Each week we check with a leader across the firm to get a quick take on what they're watching in markets.

I'm Jake Stewart, Global Head of Corporate Communications here at the firm, and today I'm

delighted to be joined by Jen Roth of our Global Markets Division,

who's going to talk about, as she always does,

the investing landscape for emerging markets.

Jen, welcome back to the program.

Happy New Year.

Thank you, great Jake.

Happy New Year.

Good to see you.

Hopefully next time we do this will be in person.

Yeah, we could do at least once in person, hopefully, sometimes soon.

So for those watching the emerging markets, the MSCI index has rallied back to record highs. What's driving

all the enthusiasm amongst investors?

So yeah, you're absolutely right. In the past few months, there really has been a significant amount

of enthusiasm around emerging markets as an

asset class. We've now had for over 10 months very easy monetary policy conditions globally

that have really flushed the market with liquidity. On top of the monetary impulse, you also have the fiscal impulse that is perceived to be even stronger with the Democratic wins in Georgia last week.

So you have a monetary anchor, you have a fiscal anchor and then the vaccine which doesn't necessarily help us on a spot basis but very positive for the forward.

You also have the world forecasting stronger global growth of 5.2% with G.S. in particular well above

consensus at 6.4%.

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