Articles List

Articles List

FLNG Offers Advantage In Tight LNG Market

Shell's decision to proceed with the Browse FLNG project provides an innovate approach to a tightening LNG market in Asia. The more gradual phase-in of three smaller FLNG vessels over one vast facility will better suit the tightening market dynamics while providing lower cost structures.

Petrobras: New Business Plan Supports Modest Production Outlook

The release of Petrobras' 2015-2019 Business and Management Plan illustrates the more challenging fiscal and operating environment faced by the NOC, broadly confirming our more modest views regarding the company's future growth trajectory.

Disease Awareness Campaigns To Boost Sales Indirectly

Multinational pharmaceutical companies will increasingly use disease awareness programmes to indirectly boost sales. Generally viewed as positive by the public, these campaigns will allow drugmakers to engage current and potential customers in markets where DTC advertising of prescription medications is banned. Doctors are an important audience, especially in emerging markets, where knowledge of chronic diseases can be limited. A key risk to this approach is raising awareness of a disease and inadvertently boosting the profile of competing products.

Political Landscape Evolving To ANC's Disadvantage

BMI View: The decline of the African National Congress opens a political space for the realignment of post-Apartheid politics. A new labour federation led by the National Union of Metalworkers of South Africa and the Economic Freedom Fighters seems likely, which will not be market-friendly.

Sanctions Removal Will Improve Project Finance Outlook

Infrastructure project financing in Iran will considerably benefit from the lifting of international sanctions, should an agreement be signed between the P5+1 countries and Iran. Private sector investment will increase, encouraging the use of PPPs and attracting international construction players, who are already preparing to benefit from a first-mover advantage.

Manufacturing Woes To Continue

Russia's manufacturing purchasing managers' index (PMI) increased slightly from 47.6 in May to 48.7 in June but remained below the expansionary 50 mark, the seventh month in a row that manufacturing output has declined. This supports our view that the economy has yet to bottom out despite some green shoots in recent demand side data releases. The final Q115 GDP growth figure was also released this week at -2.2% y-o-y, and we forecast a full year contraction of -4.0%.

VW's Top 10 Spot At Risk

BMI View: After slipping to 10th in the US in H115, VW will not fall further by the end of the year. However, its longer term future is under threat from Subaru and BMW's product and expansion plans.

Outbound Investment To See Greater Developed Markets Focus

An increase in outbound investment from China will be underpinned by a slowdown in the country's economy, increasing sophistication of manufacturing, as well as efforts by the government to exert its soft power across the region.

Syria Buffer Zone Unlikely, Given Risks

The Turkish military is unlikely to establish a buffer zone in Syria, as this would increase tensions with NATO partners while raising a host of domestic and external security threats. However, stepped up rhetoric against Kurdish advances in Syria could hint that a coalition between the ruling AKP and nationalist MHP is in the works.