Articles List

Articles List

MENA infrastructure: Qatar & UAE continue outperformance

In the context of lower oil prices and constrained budgets, economic diversification remains a key driver of infrastructure growth in the MENA region, with markets set to enjoy an annual average construction industry growth rate of 5.3% over the next five years - above average for emerging markets. Adding upside to our growth forecasts which are currently set to moderate in the coming years is the wider adoption of the PPP model.

OPEC: black swan struggling to take flight

A surprise OPEC deal to collectively cut its output has raised upside risk to prices in Q416 and 2017. However, while the deal will help to strengthen market sentiment, we see muted impact on the fundamentals.

VW: a major challenger in autonomous taxis

VW Group's plan to enter the increasingly competitive autonomous ride-hailing field will be supported its possession of key technologies including autonomous driving technology, the mapping platform, and fleet management software, that will position the carmaker as one of the dominate players in the future autonomous mobility services business.

BlackBerry aims for recurring revenue

Our view that BlackBerry would exit the hardware market has played out. The company has switched its efforts towards software and services, as it looks to gain regular and recurring income from its suite of products. This will require further diversification, as the main source of service profits is still linked to its hardware business.

Parliamentary election results to confirm pro-western path

Georgia's parliamentary elections on October 8 will confirm the country's pro-Western path of economic and political reforms. The most likely winner will be the ruling centre-left Georgian Dream government, which advocates European Union and NATO membership.

Market conditions to remain favourable for domestic generic drugmakers

Japan's pharmaceutical market will remain favourable for domestic companies focused on the generic drug sub-sector. Generic drug penetration is on the rise, boding well for companies as they expand their manufacturing capabilities. In the long run, we anticipate more firms developing biosimilar products as the generic drug market becomes more competitive due to the growing presence of Indian and multinational generic drugmakers such as Aspen Pharmacare.

Rising health-awareness will gradually shift consumer market

Growing health concerns across the GCC will drive the rising demand for healthier food products. Consumers will grow increasingly aware of the health-consciousness trends on the back of rising momentum from governments to introduce tax on tobacco, fast-foods and soft drinks. We hold a positive outlook on the evolving consumption patterns stemming from rising incomes, which bode well for the adoption of more premium healthier products.

Hyundai worker strike threatens global market performance

We expect Hyundai's failure to resolve ongoing wage disputes to keep domestic production levels under pressure, which will place pressure on the automaker's inventory levels and thereby act as a drag on export volumes and the company's ability to meet demand in both the local and export markets.

Unbundling key to new telecoms regulation

We are sceptical that new telecoms regulation will drastically change the structure and competitive nature of the Swiss telecoms market. Swisscom continues to be the dominant player, with the state having a majority stake. However, should the new regulation mandate unbundling, it could lead to the market becoming far more competitive.

Enhanced water offerings to gain growth momentum

The enhanced water sub-category is poised for strong growth in developed markets on the back of heightened health consciousness. We believe that consumer preferences will increasingly shift towards low-calorie functional beverages over our forecasting period, driving growth in the segment.