At least we _chose_ to let the EGP sink. (Or: Have fun, Erdogan.) The Turkish lira sank to a new record low yesterday as the sell-off in emerging market currencies gained steam again after a brief pause on Tuesday. EM currencies tracked by the JPMorgan currency index have now slumped five of the last six days, by our math. Donald Trump’s victory in the US presidential election “is causing investors to re-evaluate their EM thesis and the adjustment is being compounded by the surge in the US [10-year] yield … [and] if the macro community senses a ‘trend’ developing there is plenty of scope for the EM FX sell-off to accelerate,” Reuters quoted a Societe Generale research report as saying.

The currency to avoid? Not our friends in Mexico, where the battering the peso has taken is “unsurprising given Donald Trump’s campaign rhetoric,” writes Capital Economics (pdf), but unlikely to cause major damage to balance sheets because across Mexico, “USD debt burden is relatively low and concentrated in companies with USD-denominated earnings.” No, Capital Economics is worried about the lira, which continues to fall against the USD in an economy with plenty of USD-denominated debt.

…and the simultaneous “Trump taper” in emerging markets assets hasn’t yet run its course, Bloomberg warns.

EM outflows at the worst level since the China scare last year? The Institute of International Finance said in a note yesterday (pdf) that its seven-day moving average of daily portfolio flows to emerging markets “fell sharply over the past week … to its lowest level since the China worries-induced sell-off in August 2015.” What’s more the IIF says: “As noted in our latest Weekly Insight, market behavior has been quite divergent following the election of Donald Trump, with US equities (biotechs, banks, small-caps, and construction, in particular) rallying while global bonds, EM equities and FX sell-off. Since election day, foreigners have pulled nearly USD 6 bn from the EM countries in our daily sample, evenly spread between debt and equity

"Seen in a certain light, all of this may be good news for Egypt: While the EM carry trade is on the “early list of losers from a Donald Trump presidency … as soaring U.S. Treasury yields undermine the case for riskier government debt,” Deputy Finance Minister Ahmed Kouchouk told reporters yesterday that “foreign holdings of Egyptian debt have grown by as much as USD 900 mn since the pound was floated.”

And while you’re here, the people at Moody’s think 2017 looks — for want of a better word — decidedly “meh.” Global economic growth, it said in an emailed statement, will stabilize next year, “but remain at historically low levels.” We’re also going to be looking at “heightened political uncertainty stem[ming] from a busy election schedule in Europe, the start of the UK’s formal withdrawal from the EU, and likely changes in policy direction after the US presidential vote.” The result? A “growing risk of a re-pricing of assets, or a loss of confidence in the ability of China to manage its deleveraging and rebalancing process” stand out as risks to keep your eye on next year.