Group 1 - Major banks on Wall Street are preparing for another strong year in emerging markets, driven by a weak dollar and a surge in investments in artificial intelligence [1] - Emerging market bonds denominated in local currencies are expected to yield a 7% return, the best since 2020, with currency indices rising over 6% [1] - Morgan Stanley predicts that returns on local currency emerging market bonds will reach about 8% by mid-2026, while dollar-denominated emerging market bonds are expected to see "high single-digit" growth in the next 12 months [1] Group 2 - Other banks, including Bank of America and Goldman Sachs, also forecast a weakening dollar, with Bank of America predicting over 10% returns on local emerging market bonds next year, particularly recommending the Turkish lira and Brazilian real [2] - JPMorgan highlights significant corporate capital expenditure plans in artificial intelligence, predicting that by 2028, U.S. capital spending related to AI will reach $628 billion, impacting emerging markets through technology exports and rising metal prices [2] - JPMorgan expects $40 billion to $50 billion in inflows into emerging bond funds next year, driven by improved market sentiment and structural low holdings of emerging market assets [2]