Welcome to our exchanges at Goldman Sachs markets update for Friday April

2030. Each week we check in with a leader across the firm to get a quick take

on what they're watching in markets.

This week we're looking at how emerging markets or EM have been fairing in the throes of the

pandemic and a nascent recovery.

I'm Jake Seward, Global Head of Corporate Communications at the firm. the currencies and emerging market sales in North America and a whole bunch of other stuff too.

But Jen, welcome back to the program.

Jake, it's great to see you as always.

I'm sad this is one of our last podcast, but I'm glad to be here on one of your last

weeks.

All right, well, me too.

Jen, last time you did a webcast or podcast in mid-January,

we discussed clients having a pretty constructive view

on EM as an asset class for

2021, you know sitting here in late April how is that assessment look?

You know unfortunately you know that conversation was far from correct.

In the first quarter of the EM external index was down 4.74%

and the local index was down 6.67%.

This looks even worse given the S&P was up 5.77%.

E. performance was really challenged by a number of factors that were set into motion after the Georgia

elections. The market reprised expectations for fiscal, growth, and inflation, which fed through the rates market.

Higher rates led to a stronger dollar and renew talk of US exceptionalism.

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