Articles List

Articles List

South Africa And Saudi Arabia Could Join EM Recession Club

Although not our core scenario, South Africa and Saudi Arabia could post annual recessions in 2016. In South Africa, this would most likely be prompted by a populist shift in policy which quashes investment. In Saudi Arabia, a plummet in oil prices could weigh heavily on the non-oil sector which is already in recession.

ExxonMobil: In Search Of Lower-Cost Barrels, Specialisation

Poor Q216 results indicate Exxon is still transitioning to a lower cost environment. The company will minimise capex, focusing on incremental production growth from low-cost barrels. Efficiency and specialisation will be targeted in its downstream and chemical operations. Long-term, Exxon has one of the most comprehensive global asset portfolios to leverage as prices improve.

US Presidential Election: Mining Industry Implications

The outcome of the November 2016 US presidential election will determine the trajectory of environmental regulations and thus raise or lower operating costs for the mining industry over the coming years. A Democratic win would result in policy continuity, tightening environmental regulations and therefore raising costs for miners. A Republican win would see an immediate cessation of antagonistic legislation toward coal and provide some respite for miners.

Electric Bus Production Bolsters Positive Manufacturing Outlook

Dongfeng Yangtse's USD101.4mn investment to set up electric bus production in Morocco will add high-value manufacturing to the Moroccan autos industry and continue to boost its attractiveness as investment destination for foreign automakers. This will in turn play into our positive outlook for the country to be a bright spot for vehicle manufacturing in the MENA region

Battery Storage: Lithium-ion To Take Market Spotlight

Lithium-ion battery technology's ability to perform energy storage tasks across multiple sectors will solidify its position as the dominant battery technology over the coming decade - with developers intensifying their efforts to get an edge in an increasingly competitive sector. Vanadium flow batteries will become an attractive storage option in isolated/unreliable power systems, where it can help displace the need for expensive diesel-fired power and support intermittent wind and solar power generation.

Shell: Strengthened Portfolio Positioned For Long-Term Growth

Shell's financial performance will suffer in H216, due to sustained commodity price weakness, limited production growth and narrower refining margins. The company's acquisition of BG has positioned it for longer-term growth, with attractive holdings in the deepwater and LNG space.

Further Growth Momentum For Asia Fruit Sales

Asia already accounts for the majority of fruit sales on a global level but this momentum is not expected to slow down over the next five years. With opportunities at the sub-national level in China, the rapid development of the Mekong Region and a growing middle-class in Indonesia, we expect to see more activity in trying to tap this potential from companies and countries.

No 'Clean Bill Of Health' For European Banks Yet

At the decree of regulators, Europe's banks have shed billions of pounds worth of assets and raised capital levels significantly since the last round of stress test results published by the European Bank Authority (EBA) in 2014. But according to the latest round of tests in 2016, they still do not have a clean bill of health to show for their efforts. This means that the region's lenders will be forced once more to turn to capital markets to raise funds to buffer up their vulnerable balance sheets.

Megabrew Merger Q&A: Latest Developments And Implications

The proposed takeover of SAB Miller by AB InBev has come under threat as the post-Brexit depreciation in the sterling reduces the value of the deal for shareholders. While it remains our core view that the deal will go through towards the end of 2016, we highlight the opportunities and challenges presented by the merger.

Five Key Takeaways From July Sales

There is much speculation that July's US light vehicle sales marked the beginning of the end for the market's growth streak. Here we give our initial reaction to the results and what they tell us about the market.