The China Effect Hits Indonesia and Brazil

Bloomberg: Indonesia's Economy Has Stopped Emerging

Growth was just 4.67 percent in the second quarter, the slowest pace in six years. What’s more, a recent MasterCard survey detected an "extreme deterioration" in consumer sentiment, which had plummeted to the worst levels in Asia.

Investors are already voting with their feet. The Jakarta Composite Index has fallen 13 percent from its April 7 record high, one of Asia's biggest plunges in that time. And foreign direct investment underwhelmed last quarter, coming in at $7.4 billion, little changed from a year earlier in dollar terms.

Bloomberg: Economists Think Brazil Will Get Downgraded to Junk in the Next Few Years

Latin America's largest economy has a 70 percent chance of losing its investment grade rating in the next few years, according to the median estimate in a Bloomberg News survey of economists. Standard & Poor's said last week it may downgrade the country's rating and revised its outlook to negative from stable. Brazil's bonds are currently rated BBB- which is one step away from junk. The company cited Brazil's political and economic challenges amid an ongoing probe into kickbacks at the country's state-owned oil company, Petrobras, which President Rousseff chaired at the time.