Articles List

Articles List

Banking Sector: Low Interest Rates Threaten Profits

While Emerging European banking sectors are generally poised for a better year in 2016 amid an improving macroeconomic backdrop, the low interest rate environment will cap sector profits. Russia and Turkey's banking sectors will struggle due to challenging macroeconomic environments and ongoing currency weakness.

Gas Pipeline Construction Boom To Continue

Our long-held positive outlook for Mexico's midstream sector will continue to play out, with energy liberalisation, increasing consumption and cheap US natural gas driving capacity growth. CFE will attract strong investor interest for forthcoming pipeline tenders, driving growth in the sector through 2017.

Martindale Pharma Expands Footprint In GCC

We expect Martindale Pharma's strategical efforts to strengthen its presence in Saudi Arabia's pharmaceutical and healthcare markets will provide the company with opportunities to advance its position throughout the GCC. Whilst Saudi Arabia remains the company's top international market, plans to extend distribution agreements and the awarding of a new tender will go a long way towards accessing the GCC's lucrative pharmaceuticals market.

Power Market Reforms To Attract Growing Investment

The launch of a wholesale power market and the success of the first long-term energy auction in Mexico underscore the multiple business opportunities that the country's power sector will offer over the coming years.

Biotech Sector Presents Significant Investment Opportunities

As the share of biotechnologies within the global innovative pharmaceutical market increases, Argentina's highly developed and lower cost biotechnology industry is poised for increased investments over the medium-to-longer-term. Although private capital has not been widely invested in Argentina as in other countries due to the long-term absence of orthodox economic policy in the country, Argentina's improving business environment and free-market policy will spark strong long-term growth in investments. Geographical proximity and Argentina's relatively strong drug production ability means local market leaders will provide excellent investment opportunities for foreign drugmakers to expand their presence in Latin America.

OPEC: Not Much To Expect From June Meeting Either

OPEC's June meeting will fail to deliver an oil production cap agreement. Tensions between Saudi Arabia and Iran will prevent a political consensus from being reached, while the vast majority of oil producing countries will continue to favour winning or retaining market shares rather than supporting prices.

Consumer Chart Of The Week: Top Five EMs Under 100mn

In looking for new opportunities and the 'next' big consumer markets, we have used our population data for 2016 to identify the top 5 emerging markets with populations under 100mn. In our view, Iran and Vietnam represent the two best opportunities with Egypt, Ethiopia and DRC seeing slower growth over our forecast period.

Euro Fatigue To Prevail in CEE

The probability of countries in Central and Eastern Europe (CEE) joining the eurozone currency union will remain distant in the years ahead. Polish and Czech economic strength and relative resilience to global downturns imply that benefits from euro accession would be minimal. For Hungary and Romania the euro would lead to more economic and financial stability, but converging with all of the admission criteria look unlikely for the years to come.

Iron Ore: Brazil & Australia To Feed Supply Glut

The global iron ore market will stay in surplus over our forecast period to 2020. Expanding output in Brazil and Australia and lower steel demand in China will remain the drivers of global oversupply over our forecast period to 2020.

SSA Infrastructure Forecast: Ethiopia And Nigeria Boost Regional Growth Outlook

Over the next five years the Ethiopian construction market will post the strongest growth in Sub-Saharan Africa, followed by Nigeria, as both governments direct significant funding towards improving transport and energy infrastructure and capitalise on funding flows from China. Kenya and Cameroon will also expand significantly between 2016 and 2020, supported by efforts to improve freight logistics capacity and private sector participation in key projects.

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