Entries tagged with “investment-research”

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100 articles found for investment-research:

  • Demonetization’s Impact on the Indian Automotive Sector — Short-term Slump Will Subside Once Cash Flow Normalizes

    The Indian government’s bold move to invalidate large currency denominations in November has led to a severe liquidity crunch across the nation for over two months now. In an economy where dealing in hard cash is deeply entrenched, this has, invariably, resulted in a slowdown across several sectors.

    The automotive sector is among several other cash-starved sectors coping with India’s demonetization and slow transition to normalcy.

  • How Risk Return Relative Value Approach Helps Create Higher Alpha for Global Credit Portfolios

    Security selection for a Fixed Income Investment portfolio is a critical task in the entire portfolio management process. In contrast to the conventional top-down approach, the Risk Return Relative Value approach offers an alternate investment screening mechanism that helps generate higher returns for investors.

  • India’s Newest FMCG Upstart is Making Rivals Sweat

    India’s newest FMCG upstart is unsettling her markets.

    A home-grown brand that touts itself as holistically ayurvedic, Patanjali Ayurveda Limited is growing aggressively enough to displace other veteran and more well-established brands in the Indian market.

  • Macau's Gaming Sector - It's a Good Time to Roll the Dice

    The preferred playground of the gambling world’s high rollers, Macau is aggressively expanding its hospitality and tourism sectors and is well on its way to becoming the premium global gaming and tourist destination by 2018.

  • Six Sectors That Could Boom During the Trump Administration

    Here’s where to put your money if the Trump administration sticks to its guns.

  • Twitter — A Crystal Ball for Asset Managers?

    Crowdsourcing through social media could be the next big thing in an asset manager’s analytical arsenal. 

  • Fiscal Deficit Overview in the GCC

    A sustained slump in oil prices has eaten into the fiscal buffers that GCC countries built up over years of plentiful oil revenues.

    While the region witnessed an acute deterioration in its external and fiscal balances over the past three years, GCC countries anticipate a relatively lower fiscal deficit in 2017 as compared to the previous year, likely due to a series of reforms within the region as well as a rally in oil prices due to production cuts. 

  • Budget 2017–18: It is What You Make of It

    Preponed, progressive, and pervasive, the Indian Government’s Budget had a few unexpected turns that could hint at things to come.

  • 3 Reasons Why Most European Banks Will Recall Legacy Tier 1 Bonds in 2017

    Commerzbank and Standard Chartered surprised bondholders in November last year when they decided against exercising the call option on high-coupon fixed-rate legacy tier 1 bonds that are due in 2017.

    Their decision could be outliers rather than ominous however, driven largely by factors that aren’t likely to sway most other European banks.

  • OPEC Production Cuts Announced — Rebalancing Expected in 2017

    OPEC members agree to cut crude production to 32.5mn b/d until June 2017 — reducing global oil supplies by about 1%.

    The agreement among all 14 member countries will be effective for six months starting January 2017, with a provision to extend the deal until December.

  • Saudi Arabia Budget 2017 — Expect Aggressive Deficit Reduction

    If its budget is anything to go by, Saudi Arabia sees 2017 as a glass half full.
    Assuming that global oil prices rise and they manage fiscal fine-tuning effectively, can Saudi Arabia lower deficits without raising debt?

  • Saudi Labour Market Challenges

    In an effort to reduce unemployment, improve domestic workforce capabilities and participation, as well as boost productivity among SMEs and private sector players, Saudi Arabia is undergoing significant reforms as part of its shift toward a non-oil economy.

    This transformation will be some time in the making however, as the Kingdom has to overcome several challenges such as social dynamics of the labour market, wage disparity between Saudi nationals and migrant labourers, as well as an excessive dependence on foreign labour.

  • Inclusion in MSCI EM Index Fuelling Bullish Sentiments for the Saudi Stock Exchange

    The prospect of inclusion in the Morgan Stanley Capital International (MSCI) is fuelling bullish sentiments for the TASI, which could sustain well into the next three years. 

  • International Beer Brands Are Betting Big on Africa’s Untapped Beer Market

    Surging urban populations and better economic tides are good news for a budding African breweries sector; localization and aggressive expansion likely as several international players vie for a slice of the pie. 

  • MiFID II — Impact on the EU’s Research and Trading Desks

    The European Commission approved the Markets in Financial Instruments Directive II (MiFID II) in April last year, regulations that are slated for implementation by 3rd January, 2018.

    The directive requires complete unbundling of research costs from trading commissions in order to ensure efficient market performance and transparency, with significant implications for inducement-related considerations among both buy-side and sell-side firms.

  • Expect Sturdy Growth in the GCC’s Education Sector

    Most oil-exporting Arab states face the analogous challenges of fostering inclusive growth and creating job opportunities. The present slump in oil prices has exacerbated these challenges. Given the facts, economic diversification could be a viable option to boost growth, create jobs, and improve resilience to oil price volatility in the long run.

    This won’t be possible, however, unless the GCC’s education sector can gear up to give their students a fighting chance on a global playground.

  • OPEC Expects an Equilibrium in the Global Oil Demand-Supply Equation

    Although oil prices remain volatile, the anticipation of improving global economic climes coupled with a 0.6 mn bpd cut in production by non-OPEC oil-producing countries could cushion oil prices in 2017.

  • COP21 & Its Implications for India

    The Paris summit held in December 2015 marked a ground-breaking global agreement on climate change.

  • Nearly One-third of Saudi Stocks are Trading Below Book Value

    Despite some headway in reducing its reliance on oil, the Saudi economy and stock market is showing signs of stress in the face of declining oil prices.

  • OPEC Production Cuts Still Undecided — Oil Slides Again Due to Sagging Sentiment

    Iraq’s out, Trump’s in, and the oil market is writhing due to growing uncertainty.

  • Is There an E-commerce Bubble in India?

    The 1600s witnessed a surge in the demand for tulips.

  • Will Credit Growth Revive the Saudi Banking Sector?

    As Saudi Arabia begins diversifying its economy in earnest, the banking sector is looking forward to some favourable tailwinds amid government reforms and favorable demographics.

  • EM Bond Markets – Thematic Relative Value Ideas for EM Credit Markets

    Emerging market bond indices have been highly volatile over the past couple of months, mainly due to investor concerns over US elections, a UK slowdown, and weak Chinese data. A couple of defaults and instances of restructuring in markets like South Africa are some of the highlights on the short side of the spectrum.

    While EM bond markets have recovered from their lows in December 2016, we believe concerns over rate hikes and currency volatility have led to investors adopting a cautious approach.

  • KSA’s Petrochemical Earnings Improve in 2016, but Top Line Remains Muted

    Lower oil prices coupled with weak global demand continued to weigh on the kingdom’s petrochemical sector in 2016. Gross margin expansion however, did support bottom-line growth.

  • China’s Car Population May Peak With Regulatory Caps

    Auto sales in China slowed considerably over the nine months leading up to September 2015.

  • Is the ECB Fuelling an Asset Bubble in the European Corporate Debt Market?

    ECB maintains status quo; continues to blow a growing asset bubble.

  • Indian Government Invalidates Large Currency Denominations — Could This Affect the Nation’s Liquidity and GDP?


    Remember remember
    The 8th of November
    A bid to foil terror was plot
    With scant hours to midnight
    The government done did right
    A mortal blow to the shadow they wrought.

  • What Will a Trump Presidency Mean for Global Markets? — A Short and Long-term Overview

    The world's waiting with baited breath to see how hawkish the Trump presidency will really be.

  • 3 Consumer Staples Stocks You Need To Get In On

    Consumer Staples, prized for their slow but steady growth in investment portfolios, are generating higher alpha than ever before.

    They’ve not only been more resilient to the usual market headwinds but also have tremendous potential to grow, bolstered by technological disruptors and a growing consumer base among the world’s emerging market middle class.

  • US Equities Rally — Is There an End ‘Round the Bend?

    An economic slowdown, while worrisome for investors, is not as concerning as the basis on which market valuations seem to have been pegged. 

  • Saudi Arabia’s "Vision 2030" to Transform its Economy

    The oil-dependent Kingdom of Saudi Arabia (KSA) has a long-term blueprint to transform itself into a more diversified economy, with non-oil government revenues projected to increase six-fold to SAR1tn by 2030.
    It’s an ambitious dream to transform an economy that relies on crude oil exports for more than 70% of government revenues.
    Deputy Crown Prince Mohammed bin Salman’s 15-year economic plan is the boldest attempt yet in the Kingdom’s history to spur additional revenue streams amid a steep fall in commodity prices.

  • QFI Trading at TASI: Trends and Analysis

    Saudi Arabia opened its capital markets in June 2015 in a bid to attract foreign investments. The move allows foreign institutions to directly invest in shares listed on the Saudi stock exchange after obtaining a Qualified Foreign Investor (QFI) status from the Capital Markets Authority (CMA).

  • Kuwait Inflation Is at Its Lowest Since March 2004

    Kuwait’s consumer inflation declined to 0.5% YoY in September 2017 following a 1.2% YoY gain in August, according to Kuwait’s Central Statistical Bureau. This was the lowest inflation since March 2004. 

  • Pharma Deal-Making: In the Pink Of Health

    Deal-making in the global pharmaceuticals sector is booming, with no signs of slowing down.

  • Oil Prices May Rise if the OPEC Algiers Accord Holds

    Crude prices jump over 6% as OPEC reaches consensus on production cuts; builds hope that oil prices will rise.

  • Investing in Saudi’s Consumer Staples

    Consumer Staples, prized for their slow but steady growth in investment portfolios, are generating higher alpha than ever before.

    They’ve not only been more resilient to the usual market headwinds but also have tremendous potential to grow, bolstered by technological disruptors and a growing consumer base among the world’s emerging market middle class.

  • The 2016 US Presidential Election - Not Your Typical Year

    While election years usually bode well for the American markets and economy, 2016 could defy the norm. The Chinese slump and slipping oil prices are likely to weigh heavily on an already ailing American economy.

  • Why Hope Isn’t Lost For the Indian Markets?

    India has been well marketed by the Prime Minister Narendra Modi with his “Make in India” campaign as a great investment destination over the past year.

  • Robo-Advisors — Innovation in a Time of ETFs

    Automated solutions can now provide investment advice at costs ranging between 0.15% - 0.50% as compared to the usual 1% fee that traditional investment advisors charge. What started off as experiments in providing low-cost investment advisory tools have spawned over a hundred Robo-advisory services worldwide. 

    Could they be the game-changers they’re made out to be?

  • Indian Distressed Debt Market

    State of NPAs in the Indian Banking system and reasons for failure for previous RBI mechanisms to resolve NPAs; purpose for incorporation of IBC and procedure under IBC; Evolution of IBC and the way forward; Participant in Indian Distressed Debt Market

  • US Oil ETFs – A good investment opportunity or a high-risk bet?

    The recent volatility in crude oil prices has attracted investor interest towards oil ETFs as a proxy to play on the rebound in oil prices. As countries started authorizing emergency approvals, oil prices have shown strong resilience in recovering from the historic lows seen in April 2020. Meanwhile, oil ETFs are still struggling to recover, despite tracking the performance of benchmark oil futures. Does this mean investors betting on ETFs to gain from the anticipation of an oil-price recovery are walking into a trap? Or does the scenario point to something else entirely?

  • Brexit: An ear to the ground

    The Brexit endgame has begun with Boris Johnson becoming the Prime Minister. Known as a ‘Brexiter’, he has appointed only those party members in his Cabinet who support a ‘hard’ or ‘no-deal’ Brexit. We recently met several investment management firms, research houses and banks in the UK (before Mr. Johnson’s election as Leader of the Conservative Party) and gathered interesting insights and views on Brexit. Going by most of our conversations with these senior stakeholders, who will be impacted by Brexit, two scenarios are likely: hard Brexit (or no-deal Brexit) and soft Brexit (agreement between the UK and the EU). Whatever it is, the outcome will be there for all to see by October 31, 2019. Amid the confusion, however, there is hope that Brexit will be orderly and global financial markets will remain intact.

  • Are Global Equity Markets Riding on Select Stocks' Coat-tails?

    Global equity markets have defied the overall negative economic trends over the past six months and have continued to rise. However, a closer look reveals that this recovery is mainly due to an increase in stocks of select companies in just few sectors, led by IT, and not broad based. Several industries are badly hit, and their stocks would continue to exert downward pressure on indices till the onset of economic recovery. As economies recover unevenly from the COVID-19 crisis, the ongoing US House antitrust hearing on tech stocks and any possible action against tech companies may create short-term pressure on these stocks, and consequently, broader indices.

  • IP Theft – China and Beyond

    The world economy has long grappled with the effects of intellectual property (IP) theft, either aided or overlooked by the Chinese government. Due to rising economic costs, a strong international outcry has erupted over failure to contain surreptitious Chinese malpractices in global technology and manufacturing, resulting in an outflow of proprietary corporate and military property.

  • The US IPO Market is on an Upswing in 2017

    While the number of IPOs in the US decreased from 275 in 2014 to 105 in 2016, the US IPO market has rebounded in 1H2017. The rebound can be attributed to a backdrop of stable economic indicators, strong job growth & improved corporate earnings, all of which should make for low market volatility in the coming quarters.

  • Will Norway Survive The Global Slump In Oil Prices?

    As lower oil prices plague markets worldwide, the Kingdom of Norway — which generates about a quarter of its GDP from the oil and gas sector — has also been affected.

  • US Housing Market: Will Robust Demand Continue?

    While the US economy sank a record 31.7% in 2Q20, the country’s housing market has shown tremendous resilience. Demand for housing rose across segments in the sector, but bigger homes in suburban or rural areas have attracted more buyers and generated interest. Is this a short-term effect of the pandemic or a long-term trend?

  • Financial Data Management – How Would AI Shape the Financial Services Industry?

    Artificial Intelligence (AI) is increasingly incorporating sophistication and intelligence in various processes in the financial industry. Through its various tools, AI is simplifying complex financial tasks and making them less labor-intensive. Enhancements in AI would introduce more advanced methods and approaches, which would further help the industry boost productivity. Several financial firms have already adopted AI, and the technology is set to further penetrate this space.

  • Long-Term Trends Likely to Emerge in TMT Sector as an Aftermath of COVID-19

    COVID-19 has led to increased usage of internet as well as technology, media, and telecom (TMT). As the virus continues to force nations to remain under lockdown, these trends will be long-term and may become part of the “new normal.” While the developed countries already had a large base of online users, they still saw a surge in numbers. The emerging nations are continuing to see a rise and yet have unexplored potential that could lead to further growth.

  • Zeroing in on the Right Approach to Innovation

    Innovation is the crux on which growth depends in every domain. In business, companies can take recourse to different means of innovation. However, it has to be planned—identify the problem and then come up with a solution.

  • All that Glitters is Gold

    Gold remains a haven for investors as it is not adversely impacted by the COVID-19 outbreak. The rising gold prices of 2019 are continuing their upward trend in 2020, reaching new highs. The demand pattern of this precious metal is shifting, and the supply side is now facing constraints. Yet, gold could well be the savior that investors need to safeguard their money.

  • Global Dollar Shortage: Back and Here to Stay

    Amid the COVID-19 pandemic, demand for dollar – the global reserve currency – has increased. The recent turmoil in financial markets, a lack of liquidity and falling global trade has led to the strengthening of the US dollar vis-à-vis other currencies. The Federal Reserve has responded aggressively with interest rate cuts, quantitative easing and establishment of swap lines with major central banks to ensure liquidity and that the foreign exchange market functions smoothly. However, the measures proved inept in preventing the dollar index from touching an 18-year high. Is the dollar shortage a long-term scenario or a kneejerk reaction? Read on to find out.

  • Gaming: A Long-Term Investment Play?

    More than a third of the global population is now confined to homes, compelled to follow social distancing to limit the spread of the deadly coronavirus. The unprecedented scale of the pandemic has, however, blessed the gaming industry, which is buzzing with a sudden surge in sales of video games and gaming consoles as people seek ways to deal with the lockdown. The ‘new normal’ is here to stay for a long time and would definitely benefit the gaming industry, making it a profitable investment in the long term.

  • Will COVID-19 be a game changer for retail fashion?

    Stephen Covey once said, "If there's one thing that's uncertain in business, it's uncertainty."
    This holds true especially in current times, given the scale of the COVID-19 crisis and uncertainty surrounding its impact on the society and economy. Despite the challenges posed by epidemics, they often pave the way for innovation and bigger opportunities. This article explores how fashion retailers are coping with the crisis and looking at alternative avenues.

  • Surge in GCC sovereign bond issuances at attractive yields: Buyers underpricing risk?

    Multibillion-dollar bond issuances in April 2020 by three Gulf Cooperation Council (GCC) countries – Qatar, Abu Dhabi and Saudi Arabia – have galvanized the fixed income market, especially the emerging economies segment. The attractive yields offered prompted fixed income investors to submit bids exceeding the issue size. However, the region is reeling under the impact of the slump in oil market, besides the economic fallout of COVID-19-induced lockdowns. Therefore, the question arises would the yields adequately compensate for the risks.

  • Top sectors to watch out for as life changes due to Covid-19

    The COVID-19 pandemic has created ripples in the already volatile global stock market. Several major global indexes fell more than 30% from their recent highs within a couple of months, and then recovered marginally. Companies associated with the travel and tourism sector witnessed a drastic drop (40–50%) in share prices at an accelerating pace. A few other sectors also bore the brunt of this steep decline. Ironically, there are some sectors that stand to benefit from this scenario and present attractive investment opportunities.

  • Indian Banking Industry: Governance Reforms Imperative to Regain Confidence of Stakeholder

    Yes Bank is among the latest to be added to the list of Indian banks that have been in trouble recently. The string of bank failures has raised questions about the industry’s otherwise strong regulatory framework. Is there a way to prevent more such episodes?

  • Will Private Equity Firms Emerge Unscathed from the COVID-19 Crisis?

    COVID-19 has negatively affected almost all sectors of industry. Many bore the brunt of the pandemic, with lockdowns and restricted travel ringing up losses. The private equity business is no exception; many ongoing deals, and several more in the pipeline, are now paused. The business, which was on the upswing, will now be hit due to this turmoil. However, there are some factors favoring the PE space. If participants can take steps in the right direction, they may be able to emerge from this crisis with minimal damage.

  • Data sourcing: Key to decision-making

    Data sourcing is an essential step in developing robust data-backed strategies. Gleaning relevant and accurate information entails verifying the authenticity of data and its source. Skipping this could lead to inaccuracy in data compilation, which would affect analysis. Hence, companies must understand the importance of data sourcing and plan it accordingly.

  • Investment opportunities in distressed assets amidst Covid pandemic

    In the wake of the COVID-19 pandemic, nations are deploying various measures to limit causalities. The crude price war between Russia and Saudi Arabia isn’t helping either. The negative impact of the outbreak is felt across sectors. The distressed debt industry will now go into an overdrive as businesses face shutdowns and unemployment rises. Which sectors get affected? How severe will be the impact? 2020 will be the crucial year…

  • COVID-19: Impact on US M&A Market

    The ongoing health crisis, coupled with the resultant economic slowdown, has severely impacted the US M&A market. Numerous deals were either put on hold or cancelled in the last one month. Though in the medium term the recovery of the market would be sluggish, going by past economic downturns, this could be the right time to sign M&A deals. During downturns, quality companies are available at 13–21% valuation multiple discount, while previous cases show that deals carried out during this period generated almost 10% higher returns for shareholders.

  • Gap in demand–supply of masks: Is there a solution?

    As countries fight the COVID-19 pandemic, demand for protective gears is soaring. Masks, especially, have seen unprecedented growth in demand. As the number of cases rises and the acute supply shortage continues, companies and governments are taking steps to bridge the demand-supply gap. The big question is: will demand for masks remain high even after the pandemic is over, or will companies be holding large unused stocks?

  • Chinese Industries Adversely Affected by COVID-19

    The COVID-19 pandemic has created an economic turmoil. Industries across sectors are impacted as a result, and nations are preparing for the worst recession of the century. As the virus originated in China, it was the first country to feel the economic repercussions of the outbreak. Some sectors in the country were badly hit and may have to face the cascading effect of the virus as well. It seems that the worst is yet to come.

  • Cryptocurrencies: An Inevitable Step Into The Future?

    Cryptocurrencies, especially bitcoin, have been making news these days. Several factors have contributed to their emergence, from the surge in online platforms to their perception as a hedge against the dollar and their appeal to retail investors. As with any innovative change, these currencies are also fraught with challenges: their safety as an asset, the environmental hazard they pose, or the absence of government backing. However, what cannot be denied is that cryptos are changing the financial landscape. Building the right regulatory framework around them will only give these currencies more validity and make transactions more secure.

  • Consumer Non-durables in US Brace for Tougher Times as Economic Rampage Continues

    The COVID-19 crisis is not likely to get over anytime soon. Several countries have already declared their economies are in recession. Sectors like consumer non-durables have been adversely impacted as the purchase of non-essential items has completely stopped. With lockdowns disrupting supply and demand declining, there seems to be no respite for the sector in the near term.

  • Are European Airlines on the Path to Recovery Post the COVID-19 Pandemic?

    The global airline industry was considerably affected due to COVID-19, owing to complete shutdown on travel. However, as the ferocity of the pandemic gradually mitigates in European countries, air travel has resumed. Various technological innovations have been proposed to help airlines and airports eliminate the spread of infection. Governments are also taking initiatives to help revive the industry. Will the European airlines be able to emerge from this crisis unscathed?

  • Existential Risk Management – Managing the Risk of Extinction

    The global pandemic has once again bought fore the need to have risk management and business continuity plans to deal with crises. As COVID – 19 spread across the world, it spelled doom for the global economy and many companies were forced to declare bankruptcy. Could this have been avoided if there was a blueprint for disaster management, readying them to face unprecedented challenges?

  • Hospital M&A Activity is on life support, but recovery is imminent

    The number of hospital deals declined in H1 2020 as the COVID-19 pandemic spooked investors, making them conserve cash. With the pandemic adversely affecting many healthcare providers, many small players without a financial cushion are either forced into an M&A deal or have to declare bankruptcy. However, studies on the actual benefits of mergers and acquisitions (M&As) have made such deals less palatable for state governments, regulators, and other healthcare stakeholders. Deal makers will need to be more strategic in their deals going forward to ensure they pass through federal regulators and can survive a weakened health system

  • Data Segmentation - A Route to Happy Customers, Increased Revenue

    Data segmentation is a vital process that allows organizations to derive benefits from the vast repository of data they collect. Correct evaluation of data starts with accurate data segmentation, which should be error-free and relevant. The segmented data provides relevant actionable information to the different teams in a company, based on which they can develop strategies to increase revenue. Thus, the process is undoubtedly crucial for the growth of a company.

  • India’s Rising Forex Reserves and Its Significance

    India, at one point of time was on the verge of bankruptcy due to twin deficit and extremely low forex reserves worth about three weeks of imports. But for the first time in history, on June 5, Indian forex reserves crossed the USD500 billion milestone which can cover more than a year’s import. With its rising reserves, India should also focus on increasing returns on it to reduce net costs, thus bringing in greater benefits for the country.

  • KSA Telecom Sector: Taking a Giant Leap!

    The telecom industry in KSA has taken a giant leap forward in the past few years. The industry has shown incredible progress in terms of infrastructure development and deployment of advanced technologies. Currently, KSA is among the few countries in the world to adopt 5G services and is rapidly expanding its coverage across the Kingdom, thus presenting an attractive opportunity for key players in the sector.

  • The Future of Flexible Workspaces

    The COVID-19 pandemic not only bloomed into a widespread humanitarian crisis but also crippled the global economy. To survive, companies will need to sustain their operations over the short to medium term. If they withstand the current crisis, the flexible workspace sector could then rebound and have positive long-term prospects. A sector that came up to execute agile real-estate strategies has been now pushed to the forefront with the outbreak. Organizations are likely to look at the flexible workspace market to diversify and add resilience to their occupational portfolios. Thus, flexible workspaces could account for a greater share of workspaces than ever before.

  • US Elections – Impact of Presidential Change on Equity Markets

    With the US Elections slated to be held on November 3, 2020, curiosity about who would be the next American President is growing. Amid global tensions due to the COVID-19 pandemic and other geopolitical issues, citizens are hoping for a strong leadership. For Donald Trump, the current Republican President, the challenge to retain power has increased as voters’ attention has now shifted from concerns such as social equality to managing the huge number of COVID-19 cases and stimulating the economy, which has been severely hit by the pandemic. Can a leadership change from Donald Trump to Joe Biden positively impact equity markets?

  • Will American Students Be Free of Mortgage in Near Future?

    Students in the US have been carrying the burden of student loan for years now. Several students are unable to afford the expensive tuition fees. The new government under Joe Biden plans to bring about major changes which would make life simpler for students in the future and make higher education more affordable for lower income groups. This would make more residents eligible for high skill jobs and reduce the unemployment rate.

  • Will Saudi Arabia and Russia agree on production cuts to save oil market?

    Oil prices are gyrating due to the delay in Saudi Arabia and Russia reaching an agreement on cutting production. In a hostile environment, amid oversupply and falling demand, oil prices have become extremely volatile. Due to the pandemic and resultant shutdowns, demand has taken a hit, but market conditions for oil were challenging even in pre-COVID-19 days. With no respite from lockdowns in near future, oil storage facilities may reach capacity soon and logistics would become expensive for producers. Prospects, therefore, hinge on Russia and Saudi Arabia reaching an agreement soon. Expect prices to remain skewed downwards for some more time.

  • Has the Pain Subsided for the Microfinance Industry in India?

    The COVID-19 pandemic has taken a toll on the microfinance industry in India, with daily-wage workers facing the maximum brunt of the pandemic. Accordingly, the collection efficiency of microfinance lenders plunged during April–May 2020. The pandemic poses a financial risk to MFIs, as credit costs are expected to rise. Two good practices are expected to emerge out of this crisis: improved risk management and digitization for improving operational efficiency.

  • Can blockchain help overcome election voting woes in India?

    The voting system in India faces many challenges and has come under heavy scrutiny time and again. These issues could be eliminated with the implementation of a blockchain-enabled voting process that would be carried out online. The current voting process requires the voter’s physical presence, which has led to a decline in their numbers, but this online process could be the solution. Voters will be able to cast their votes from another city as well and hence exercise their democratic right. This initiative is still under development and only time will tell if it will be a success.

  • Understanding Impact Investment

    Impact investing has seen a significant rise over the past decade and the trend is likely to continue. As awareness of environmental degradation and the need for social developments increase, investors are favoring enterprises that have clearly defined social impact objectives. Despite the belief that COVID-19 might discourage investment in this space, the reality is somewhat different. Though impact investment is not a new term, it has gained more relevance in the post-pandemic world.

  • Will Slowing Vaccination Rate put the Brakes on the US Economic Recovery?

    The COVID-19 pandemic sent the US economy reeling in 2020. The US economy went into recession and the country had to face staggering unemployment. A rapid vaccination drive and multiple fiscal stimuli of over USD5 trillion is expected to help the country recover. However, the rate of vaccination in the US has slowed down, even as several US states rolled back restrictions put in place to contain the spread of the pandemic. Even post vaccination, the full resumption of economic activity may not be immediate. Several headwinds will likely line up, including inflation, rising Treasury yields, and red-hot markets. The slowdown in vaccination rate could put another hurdle in the US economic recovery, especially if cases surge and restrictions need to be reimposed.

  • Effect of the COVID-19 outbreak on the global theatrical release business and OTT platforms

    The global economy, initially unaffected by the outbreak of the COVID-19 virus in China in December 2019, could not surmount the successive fallout of the pandemic, that began spreading to other countries by early February 2020 and warranting a near-global lockdown. Although manufacturing, transportation and logistics have weathered the lion’s share of the associated economic impact, the effect on the global film production and distribution business is believed to extend to as far as mid-2021.

  • IMO 2020: Making Way for a Cleaner and Greener Earth

    IMO 2020 deadline to comply with low sulphur bunker fuel is round the corner and global ship operators are evaluating all feasible options to comply with the requirements. While ship operators are the end users to implement IMO 2020 regulation, the real fundamental impact will be seen higher up in the supply chain, which is the refining industry. Current marine fuel consumption accounts for ~50% of high-sulfur low quality byproducts produced by global refiners. Thus, one of the key challenges that refiners need to address is how to absorb this low quality byproduct post implementation of IMO 2020. Repercussions in terms of shipping cost and price of middle distillate products is also some of the key trends that industry observers are closely watching.

  • AI To Aid in Decision-making During Pandemic

    In today’s technology-driven world, artificial intelligence (AI)-enabled devices are more of a necessity than luxury. With more enterprises going online, AI is increasingly becoming relevant. It is also playing a significant role in fighting the global pandemic at various levels. While there are challenges in the adoption of AI, implementing the technology will only ensure organizations are better prepared for similar crises in future.

  • Is Bitcoin a safe haven?

    Cryptocurrency, a currency of the digital era, is slowly changing the norms of conventional trading. Due to its association with the dark net, it has a somewhat dodgy reputation and is not accepted in some countries. However, the currency, which has its origin in blockchain technology, is in fact technically a secure asset. Bitcoin is the most popular cryptocurrency, emerging as a favored asset to trade in due to high returns. This article examines the aspects of Bitcoin trading and its features to see if it can be considered as the next safe haven.

  • Obama's Climate Clean Up!

    The US Environmental Protection Agency’s (EPA)’s Clean Power Plan (CPP), which EPA unveiled in 2014, is expected to be finalized in early August. This plan mandates all states to reduce their carbon dioxide emission from existing power plants.

  • Payment Banks: A Paradigm Shift in India’s Banking System?

    The Reserve Bank of India (RBI) granted 'in-principle' approval to eleven entities that allows them to set up payment banks.

  • M&A Trends in US Technology Sector

    Technology acquisition has been the preferred way of strengthening position and expanding for both tech and non-tech companies in the US. M&A activity across major technology sub-sectors, including software, technology hardware & equipment, IT services, internet software and semiconductors, is driven by increased interest from non-tech companies and PE firms, and the need to acquire new age technologies such as IoT and AI.

  • The AI Revolution in Banking

    AI is among the key trends that will reshape the banking industry going forward. Today, AI has evolved to play an integral role in many phases of the banking ecosystem, with a potential to make banks exponentially “smarter”. AI is not just another technology to enhance productivity – it is an industry disruptor with the potential to bring exceptional value to businesses and customers.

  • Impact of digitization on Indian E-tail market

    Digitization, aided by remarkable growth in internet and smartphone users as well as reduction in smartphone prices, has triggered a major transformation in the Indian retail market. The rapid development of the digital market, coupled with favorable government reforms, higher capital outlays, and investment by foreign majors, is driving a gradual shift from retail to online retail. The uptrend in online retail is only expected to strengthen, unleashing immense growth opportunities.

  • Personal Finance Hacks to Revive the US Economy

    The net worth of an average American in the retirement age group of 65+ currently stands at ~$244,450; it drops to ~$94,450 if home equity is excluded. Even if one were to assume that all the equity tied up in home ownership can be tapped into by means of a reverse mortgage, an optimistic spending rule of 5% would yield an annual payout of ~$12,223, substantially short of the estimated requirement of ~$22,500 per year per person.

  • Indian Telecom Industry: Consolidation Paving Way for Stability

    The Indian telecom industry has witnessed significant changes over a period of time. Currently, it is in the consolidation phase amid intense competition, declining revenues, and high capex requirements. With increasing data usage among consumers, companies are shifting focus from traditional voice calls to wider digital consumer space such as content and mobile banking solutions. This paradigm shift is expected to be the key to stabilization and growth in the industry in the coming years.

  • Italy joins China’s Belt and Road Initiative – A short-sighted move?

    Italy became the first G7 country to formally join China’s Belt and Road Initiative. This move was seen with extraordinary caution in the West as Italy is a major NATO ally and any deal that tilts Italy towards China can be key challenge for the USA . Italy is currently in a vulnerable position with second highest debt to GDP ratio in the EU, after Greece. Its growth is also expected to experience a slowdown. Considering these situations, Italy aims to improve exports to the Asian Giant through the BRI project. However not everyone in Italy is onboard, coalition partner and Italy’s Deputy PM Matteo Salvini has stayed away from all official BRI related engagements to express displeasure over the agreements. The article explores a variety of political and economic angles and also explore China’s debt trap diplomacy in relation to Italy’s current financial vulnerability and analyse if the deal makes sense in the long term from an Italian perspective.

  • Is the US headed for a recession?

    A full-fledged trade war between the US and China, reminiscent of the Cold War, could result in U.S. imposing tariffs on all goods traded between the two. The resultant tax burden would push cost to a degree that U.S. companies would not be able to countervail them through cost pass-through or cost rationalization, thereby whittling down operating margins. The tax increase would also wipe out most of the long-term gains of the Tax Cuts and Jobs Act. As corporate fundamentals weaken, expansion and investment plans would be shelved, resulting in job cuts. Consumer confidence would take a beating, resulting in reduced consumption. The factors mentioned above could have a domino effect and push the US and (consequently) global economy to the tipping point of a full-blown recession.

  • Euphoria in Indian markets following elections: Will it last the next five years?

    The grand finale of the Indian political version of Game of Thrones culminated with a landslide victory for the BJP in the general elections held in May 2019. That markets were welcoming of the mandate was reflected in the euphoric jump made by benchmark indices as exit poll results poured in. However, markets seem to have moderated since then. The new government faces challenges on the economic and policy fronts, especially trade, in the light of the US upending long established systems and practices. Will these issues take the sheen off the post-election rally in Indian markets? How will the new government’s decisions or actions impact markets; will economic data override the externalities?

  • Will active fund management strategy make a comeback in 2019-20?

    Historically, since the financial crisis of 2008, passive fund management has outperformed active fund strategies, prompting investors to pull out cash from active funds and park their money in passive funds. This led active managers to cut down their fees as they looked to boost net returns; however, they continued to lag behind their passive counterparts. Passive funds did exceedingly well in a bullish market, which was marked by adoption of expansionary monetary policies in developed countries that were keen on infusing liquidity and promoting businesses. However, in the current scenario, as the world economy moves toward a slowdown and uncertainty surrounding certain high-profile political events increases, we believe volatility will rise as the year progresses. What do historical trends indicate? Which type of funds perform better in a volatile environment? More importantly, amid recessionary signals and high volatility, can active funds fare better?

  • Ramadan - The Impact on Saudi Stock Market

    We observed that the Ramadan has a pronounced impact on the Saudi stock market as measured by its all-share index TASI, when we analyzed past eight years’ stock market data.

  • Is alliance the answer to OEMs’ woes in global auto industry?

    The global automobile market is in a turmoil, reflected in declining sales volumes. Geopolitical issues and rising R&D cost due to tighter environment protection norms have created challenges for the industry. This is compelling key players to form alliances and forge partnerships in their bid to survive amid uncertainty. However, the moot question is: Is this enough? How sustainable are the alliances? Let’s take a look.

  • Yes Bank Fiasco: End of AT1 bond issuance in India?

    Yes Bank had been under stress for some time, marred by low capital adequacy and asset quality issues. RBI, which had been monitoring the situation closely, has now decided to step in and act decisively. Its sudden decision to impose a moratorium and announce restructuring has caught markets and investors unaware. One of the casualties of the proposed restructuring are the AT1 bondholders, whose entire investments would be written down and rendered worthless. This then raises the question: is the solution viable? Is this the first time that bonds are being written down, while equity investors are being compensated?

  • Are institutional brokerage rates in the US headed toward ‘zero’, in line with retail brokerage rates?

    On October 2, 2019, some of the largest online stock brokers in the US – Charles Schwab, E*Trade, and TD Ameritrade – mirrored each other’s moves in cutting the commission/fee charged for online trading to zero. The impact was immediately reflected on their shares prices that tanked as much as 12% (Schwab) to 28% (Ameritrade), depending on the share of revenue generated from commissions. While the quick succession in which fees were slashed has caught everyone’s attention, the latest round is only the most recent in a multi-year battle to retain customers and attract new ones (younger) amid direct competition (the ‘Robinhood’ model of zero fees) and changing industry dynamics (continued shift to passive investing). The decline in revenues following the cut in fees would prompt retail brokers to look for various ways to bridge the gap (cost cuts, consolidation, and diversification of revenues). While it is difficult to predict what would follow next in the retail broking space, the pressure on institutional broking will most likely intensify as the ripple effects of rates being slashed to zero spread industry-wide.

  • The What and Why of IMO 2020

    The proposed implementation of IMO 2020 on January 01, 2020, has thrown maritime companies in a tizzy as they prepare to comply with the new regulation. It is expected to bring about a massive shift in the industry, paving the way for either modification of vessels or changes in fuel requirements. The impact on shipping industry would be substantial with the demand-supply dynamics of fuel getting affected significantly. This article looks at possible changes on the part of maritime players and potential effect on the market.

  • The Looming Pension Fund Shortfall - Are Future Retirees at Risk?

    The major shift in demographics with increasing life expectancy is expected to create problems for future retirees, who are expected to outlive their savings. In economies where the population is aging rapidly, one of the key challenges is to provide financial security for the older population. Most economies concentrate their pension fund assets in conventional investments markets – equities and bonds – thereby, depending largely on markets that are volatile and dynamic. This warrants a more cautious and planned approach by fund managers entailing diversification of pension funds from low-risk, low-return to high-risk, high-return asset classes. Moreover, at an individual level, a more prudent approach is required in terms of planning investments and increasing savings.


Blogs

70 blog posts found for investment-research:


Infographics

21 infographics found for investment-research:


Special Reports

58 special reports found for investment-research:

  • Value Stocks - At the Cusp of Re-rating

    In December 2015, the US Federal Reserve decided to normalize interest rates, with an increase in the federal funds rate, for the first time since 2006.

    This reversal in interest rates is compelling investment managers to revisit their strategies.

  • Co-sourcing — Making Buy-Side Fixed Income Portfolio Management More Efficient

    While the ultimate goal of a portfolio manager is to outperform the index or benchmark, one has to constantly ensure the portfolio is resilient to economic, political, and financial volatilities and uncertainties. 

    Hybrid co-sourced models can help.  

    Buy-side fixed income firms are increasingly considering offshore relationships as an extension to their trading desks and in-house research teams. While outsourcing is not new to buy-side engagements, this practice is gaining more traction with portfolio managers who are under intense pressure to screen and propose effective investment ideas constantly. 

    Read on to know how co-sourcing can make buy-side fixed income firms far more efficient.

  • Saudi Aramco IPO — A Reality Of Mythical Proportions?

    With both the world's largest proven crude oil reserves as well as its largest daily oil production capacity to boast of, Saudi Aramco is a force to be reckoned with.

  • China Slowdown — Impact On Key Economies

    After three decades of extraordinary growth, the Chinese economy is undergoing a major transition from export and investment-driven growth to consumption and service-led sustainable growth.

    The transition is underway in the midst of a pronounced economic slowdown however, a contagion that has the potential to spill over to other economies as export-driven economies weather the effects of a Chinese slump. As waning demand from one of the world's most prolific markets has an adverse effect on global trade, commodities exporters are particularly concerned.

  • Global Clean Energy Outlook

    Cheaper coal, oil, and gas haven't been able to derail a general shift toward greener, more sustainable sources of energy. In this report, we'll examine the global transition towards clean energy, investments in renewable capacity additions, and the potential opportunities (and roadblocks) in the growing renewables sector.  

  • The Dollar Conundrum — Hedge Your Bets Before They're Bearish

    A well-diversified portfolio usually comprises of domestic and foreign investments. While portfolio diversification helps in mitigating country-specific and region-specific risks, it also exposes investors to the fancies of Foreign Exchange (FX) fluctuations. Consequently, investors are increasingly wondering whether to hedge  their foreign currency exposure.  

    We believe that a currency management strategy needs to be in place that enables investors’ to effectively manage overall portfolio volatility and risk, while also maximizing long-term returns. FX strategy is likely to vary depending on an investors’ primary objective: return maximization or risk reduction. Nonetheless, hedging currency tends to produce higher returns over the long term, while lowering risk. 

  • Listed Infrastructure - An Attractive Investment Alternative

    In the current global scenario where traditional asset classes no longer assure stable returns, listed infrastructure is attracting investors in a big way. In 2015, investors have largely been cautious about the equity markets due to expectations of stable growth in the US and the likely interest rate hike by the US Federal Reserve (Fed) amid declining jobless claims and improving consumer sentiment.

  • European Wealth Management - An Insatiable Appetite for Growth is Imminent

    While Europe boasts about USD 73 trillion (29%) of global wealth, just  USD 14 trillion of Europe’s gross wealth is currently managed under regulated open-ended funds. Although countries like  Germany, France, the UK and Italy comprise two-thirds of Europe’s wealth, smaller core countries such as Luxembourg and Switzerland reflect higher average wealth per adult, and hence, greater wealth management opportunities.

    This is especially true in Europe. 

  • China's Economy Slowing: Will Stimulus Save the Chinese Economy?

    China's economy is slowing. As the government grapples with decelerating economic growth, its monetary and

  • Buybacks & Dividends – A Trillion Dollar Offer

    Strong macro numbers, exceptionally low interest rates and a healthy recovery in profits after the economic crisis have increased several S&P500 companies' appetite for buybacks and dividends.

  • Emerging Markets’ Infrastructural Sector — At a Tipping Point

    Global infrastructure sector continues to bear the brunt of constrained public budgets and lack of effective government and private partnerships that has led to inadequate investment and a disappointing growth. Consequently, the gap between the required and actual investment continues to widen. We believe, selective investment strategy in emerging markets will open door to plethora of investment opportunities in the sector.

  • Solar Energy Sector in the Kingdom of Saudi Arabia

    The demand for electricity in Saudi Arabia is growing at a rate of 7% per year, pushed largely by a growing population. Current capacity stands at 66 GW, which is expected to double by 2030.

    One of the largest producers of oil in the world, the Kingdom of Saudi Arabia is also the world’s sixth largest consumer of oil. 

    The domestic consumption of oil has increased at an alarming rate of 4-6%, nearly twice the rate of population growth. Demand from residential as well as commercial customers has been steadily increasing, boosted by a rapid growth in both population and industry. The global leader in crude oil exports also burns more oil than any other country to generate electricity, spending nearly $16bn every year just to cope with local electricity demand.

    If these trends continue, domestic consumption could eat into Saudi oil exports and render the Kingdom a net oil importer by 2038.

    The shape of things to come has made the Saudi government keen to explore alternative sources of electricity production.

    Solar Energy is expected to get a huge boost in the coming years taking into account environmental and health effects, the economics of solar energy, the geographical location of solar power plants, and load forecasting in Saudi Arabia.

  • SAUDI ARABIA - A USD1.3 Trillion Economy by 2025

    As the exclusive knowledge partner for The Euromoney Saudi Arabia Conference 2013.

  • India Budget 2013-14 Analysis

    Given the limited resources at his disposal, expectations from the finance minister were low.

  • India Budget 2014-15 Analysis

    When the Finance Minister Mr. Arun Jaitley assumed office earlier this year, he had his task cut out for him.

  • Testing Times Ahead for Global Banks

    Regulatory reforms that followed the global financial crisis have boosted capital buffers substantially and improved the liquidity of global banks. As 2021 progresses, the years ahead would test the ability of global banks to withstand post-pandemic asset quality deterioration and eroding profitability due to prolonged low interest rates globally.

  • Green Bonds: An Emerging Asset Class

    The growing significance of environmentally sustainable projects has increased the importance of the green bond as an asset class in funding these projects. This reports discusses the emerging trends in the green bond domain and the factors that are driving its growth.

  • Diversification – A Shield for Big Miners in a Challenging Environment

    Over the past decades, the mining industry has successfully implemented diversification to generate stable earnings. This strategy worked in its favor when most of the sectors and industries were hit by the global pandemic. Owing to their wide product range and geographical presence, key players in the industry were able to bounce back quickly on their feet. Majority of mining companies have iron ore in their product portfolio. The rally seen in iron ore prices this year provided a cushion to big miners’ financials amid a challenging market environment.

  • M&A and Equity Offerings Quarterly Market Report – Q3’20 Review

    M&A announcements surged in the US, driven by pent-up demand caused by the screeching halt in M&A deal-making in 2Q’20; the multi-fold increase in IPO activity in the US indicates post-COVID-19 recovery.

  • Global M&A Flash Note: Surge in Deals in Q4 2020 a Prelude to Strong 2021

    Deal announcements strongly surged in the last two weeks of December 2020, not only surpassing the number struck during the same period in a strong 2019, but also beating the 20-year average by more than 60%. While H1 2020 was impacted by the onset of the pandemic, deal announcements picked up in H2 2020. Announcements further picked up towards the end of the year based on positive news such as the rollout of the vaccine in several countries and the conclusion of Brexit and the US elections. With the worse of the pandemic behind them, dealmakers have a fertile environment in 2021 with easy financing, political certainty, and high valuations. SPACs that raised funds in 2020 as well as PE firms sitting on significant dry powder are expected to be active in the new year.

  • Financial Data Management – A Detailed Step-by-Step Approach

    The saying “data is the new oil” is quite apt in the current age. In the digital world, data collection has become much simpler. However, data structuring and analysis remains complex. Digital transformation facilitates this process, yet obtaining relevant information requires expert knowledge and handling.

  • Sectoral Breakdown of Union Budget 2021: Where Health Really is Wealth

    The Union Budget has been structured on the general theme of Aatma-Nirbhar Bharat: Self- reliant India. The government aims to achieve this through a string of reforms such as farmer-friendly initiatives, emphasis on healthcare, significant infrastructure announcements, implementation of women and child welfare schemes, and promoting of skill development and educational policies. The finance minister proposed to double the spend on healthcare and sanitization as well as various large-scale infrastructure projects. To fund these, the government has mostly banked on measures such as asset monetization and borrowings. However, the actual revenue generation and collection during the next fiscal year, by means of tax and non-tax receipts, would be pivotal in disbursing the funds and managing the country’s deteriorating fiscal situation.

  • US Special Purpose Acquisition Companies: Market 2020 Review

    SPAC IPOs surged in 2020, with the number of deals growing by 320% YoY and the capital raised growing by 513% YoY since 2019.SPACs have managed to raise more capital in 2020 than the cumulative amount between 2010–19.

  • Pharmaceutical & MedTech: Edging Toward Normalcy

    Healthcare, like other sectors, was hit by COVID-19 in 2020. This especially holds true for the pharmaceutical and MedTech sub-sectors in healthcare that were impacted in 2Q20, reflected in the weak performance of companies in these domains. However, both sub-sectors recovered in 3Q20, with the relaxation of social restrictions and strong pick-up in demand for COVID-19-related antibodies and products. The outlook for both sub-sectors is positive; however, continuation of the pandemic and policy changes in countries of operation could pose risks.

  • US Special Purpose Acquisition Companies: IPO Market Overview

    The SPAC market is expected to gain momentum in the near future driven by big ticket deals, high-profile mergers, and growing investor interest. The significant growth in the market has made it a mainstream alternative to traditional IPOs, leading to a surge in SPAC IPOs as well as a 1.7 times rise in their average size in 2020 compared with 2019.

  • Global Chemical Industry - M&A and Valuation Insights

    M&A activity in early 2020 had been adversely impacted by the COVID-19 pandemic, and the deal count dwindled. However, as the year progressed, the number of deals surged, along with the increase in the deal value, driven by a number of factors. In the beginning of 2020, mega deals and cross-border deals sharply declined, but carve out intensity had increased, driven by portfolio adjustments in the second half of the year.

  • US Junk Bond Market 2020: The Issuance Frenzy and What Lies Ahead

    The year 2020 kicked off with equity markets soaring and high yield (HY) spreads at historic tights. However, the coronavirus pandemic spread globally, sending out one of the strongest exogenous shocks in history. Companies, hit by the lockdown, initially tapped the HY market to shore up cash reserves, extend maturities and preserve liquidity. However, strong support from governments and central banks turned the HY market in favor of issuers. As the market started to stabilize and the economy began to recover, companies took advantage of low interest rates and refinanced outstanding shorter-term and variable-rate debt on better terms. Consequently, HY issuance surged to record highs, which increased the leverage on balance sheets. Therefore, it is critical that the operating performance and cash flows of highly leveraged companies improve, as they need to service their debt obligations. If recovery is non-secular and patchy, default rates may be high in the near term.

  • US to Reignite Growth with Infrastructure Push

    The economic impact of the COVID-19 pandemic is staggering and long-lasting, with every sector feeling the brunt. To address this, the Democrats and Republicans have proposed stimulus packages, in the form of an infrastructure bill. The infrastructure sector in the US has been largely underfunded and closing the funding gap is essential to jump-starting the economy. We believe infrastructure investments could help rebuild the US economy, making it resilient to such shocks, and boost growth after this unprecedented economic fallout.

  • M&A Quarterly Market Report: Q1’21 Review – Sports Technology

    The sport technology market witnessed strong M&A activity in 2020. The trend continued in Q1’21, with an approximately 40% increase in transaction volume compared to the last quarter. The market is highly fragmented. This creates opportunities for consolidation as bigger players look to acquire small to mid-size companies that lack cash flows or leadership. SPACs are also evolving and looking to merge with companies in the sports technology sector.

  • Global Specialty Chemicals - M&A Quarterly Market Report

    The year 2020 was meant to be a year of transition for the chemical industry towards a recovery phase but then the COVID-19 pandemic disrupted it. The supply chain collapsed, production stopped, borders closed, and lengthy lockdowns led to a global economic slump.
    Although the second wave of coronavirus is still in the picture, the introduction of the vaccines in the markets have raised hopes for a recovery on a global scale. However, the other challenges Chemical and Specialty Chemical Sector faced prior to the pandemic remain unchanged. Hence, 2021 will be a year of re-adjustments of company portfolios with business models being put to the test and adapted to the new environment.

  • M&A Quarterly Market Report: Q1'21 Review and 2021 Outlook – Artificial Intelligence

    The outbreak of COVID-19 has severely impacted every industry directly or indirectly. The crisis has forced the organizations to fast-track technological upgradation and expand their scope of Artificial Intelligence (AI) to ensure business continuity. In 2020, there has been significant increase in AI adoption with more and more organization accepting AI and using it to their advantage rather than viewing it as a threat. In 2021, rapid growth in the AI investments across industries is expected. Not only the mainstream industries such as retail and manufacturing but industries like energy and agriculture will also show growth in the adoption of AI applications. With the correct approach for AI adoption and awareness about proper data security measures, organizations can leverage AI to stimulate economic growth.

  • Surge in Bankruptcies Amid Rising Debt and Volatility Across US Sectors in 2020

    The coronavirus pandemic has not just created a humanitarian crisis but is also the harbinger of an economic crisis. At its peak, it forced thriving sectors into losses, compelling businesses to shut shop. Even a developed country like the US struggled as large companies collapsed. This triggered a frenzy in bond markets with companies taking additional debt to stay afloat. While the economic scenario can be likened to the global financial crisis of 2009, recovery has been rather quick. However, it is too early to predict which direction the US economy will go in the next few years.

  • Growing Popularity of Celebrity-Led SPACs

    The SPAC boom continued in 2021, with SPACs raising USD109 bn in funds in H1 2021 breaking the 2020 funding record, and once again raising more money and issuing more IPOs than companies going the traditional route.

  • Expected Impact of U.S. Monetary Policy Tightening on GCC Banks

    The US Federal Reserve is on track to change its monetary policy stance with start of asset purchase taper expected in Q4 2021 and rate hikes starting in 2022/2023. The central banks of GCC countries mostly follow changes in the US Federal Reserve Rate, considering the pegged exchange rate regimes. The last time such rate hike cycle was followed (2015-2019), there were specific set of winners in terms of GCC banks, who witnessed substantial rise in their market capitalization. We conducted a detailed analysis to study how changes in the US monetary policy affects the profitability of GCC banks over the past 13 years (quarterly intervals). The study, conducted using statistical tools such as correlation between policy rates and net interest margins (NIMs) revealed interesting findings. The US Fed is clearly on track to start raising rates sooner rather than later, and we expect GCC central banks to follow suit, thus creating the grounds for changes in GCC banks' profitability trends, with Saudi Arabian banks likely to emerge winners among GCC banks.

  • US Pharma Sector M&A – 2Q & 3Q 2020 Dashboard: Trends, Transactions and Takeaways

    Deal volumes and average ticket size significantly off from last year. Oncology remained the preferred area for buyers, with cannabis being an interesting second, albeit in much smaller deals. Expect slow and measured M&A activity within the US pharma sector, at least for a few more quarters.

  • FATCA: High-Cost Initiative To Curb Tax Evasion

    Enacted by the United States Congress in March of 2010, the Foreign Account Tax Compliance Act (FATCA) is a federal law meant to deter tax evasion.

    Arguably one of the US government's most controversial mandates in recent times, the act aims to curtail routes that wealthy investors and corporations usually take to stash money in tax havens abroad.

    In agreement with 112 countries, FATCA calls for greater reporting compliance and information sharing among multiple tax jurisdictions, impacting various stakeholders in the value chain, from governments, banks, and financial institutions, down to IT and consulting firms, as well as individual US citizens.

  • M&A and Equity Offerings Quarterly Market Report - Q2’20 Review

    A lack of big-ticket transactions due to the ongoing pandemic suppressed M&A transaction value in Q2’20. However, US issuance market rebounded strongly in Q2’20 driven by surge in issuances from companies raising capital to stabilize business, invest in growth.

  • Indian IPOs: The Quality vs. Quantity Conundrum

    A phenomenal rise in the variety of IPOs this year heralds India's headway in becoming a more sophisticated market

  • Saudi Arabia – Emergence of an Innovation Kingdom | An Aranca Special Report

    Supported by resilient collaboration between the government, academia, and industry, the Kingdom of Saudi Arabia has laid the foundation for a knowledge-driven economy.

  • Aranca Report on India Interim Budget 2014

    In the last budget of the UPA II government, Mr. Chidambaram stressed on the country’s inherent potential to regain high economic growth.

  • Aircraft Safety Systems - In The Spotlight

    Not long after we first caressed the clouds, billions of travellers take to the skies every year on the world’s fastest mode of transport.

  • Connected Cars - A Rising Trend In The Global Automobile Sector

    Cars with access to the Internet, also known as connected cars, are gaining popularity in the automobile industry.

  • RBI's Surprise Rate Cuts: Beating The Rush?

    You found the two rate cuts in 2015 surprising? You are in for more!

  • High Yield Bonds - The Rise of the Fallen

    The global high yield bond markets have witnessed sentiment to risk-off mode.

  • Greece Impasse – Can Europe Bear Greece’s Future?

    After making some headway in fiscal reforms, Greece is still in trouble.

  • India Online Travel Industry - Potential For Rapid Growth

    With greater access to technology and connectivity than ever before, a booming middle class and several other tailwinds are expected to bolster the already rapid growth of online tourism in India.

  • Gold - Will it Shine In the Near Term?

    Gold prices slumped below USD1,100/ounce owing to a strong US dollar and a slew of other global happenings.

  • US Bankruptcy Dashboard – March, 2020

    Q1 2020 Chapter 11 bankruptcy filings in the US were at par with the trend seen in 2019. That said, almost all leading indicators are currently suggesting Q2 and Q3 could see a major spike. Some of the most vulnerable sectors are retail, consumer discretionary, wholesale traders & manufacturers as well as energy.

  • Asia Pacific: An Evolving VC Market

    Spurred by substantial growth in key economies like India and China, Asia-Pacific has emerged as a sweet spot for global Venture Capital investors.

  • Demographics in Saudi Arabia: New Age Of Opportunities

    While Saudi Arabia's economic performance has always floated on its oil, the sands of time reveal more vernal fortunes.

  • Photovoltaic Industry  Witnessing a Paradigm Shift

    The global photovoltaic (PV) industry has evolved substantially during the last decade.

  • China’s Luxury Market — Losing Sheen?

    China’s current economic slowdown has been a bane for the country’s millionaire club.

    A weak currency, strong ant-corruption reforms, and stiff luxury taxes are forcing global luxury brands to rethink their expansion plans in one of the world's fastest growing consumer economies. 

  • Market Liberalization in Saudi Arabia: Opportunities Galore for Foreign Investors

    In July 2014, authorities approved plans to fully open the Saudi stock exchange (Tadawul) to foreign direct investments (expected by 1H 2015).

  • Is yield curve inversion coming to Asia?

    The US yield curve inverted recently with the widely-tracked spread between 10- year and 2-year bond yields turning negative on August 14 for a brief period, sending the equities market sharply down (Dow fell 800 points, its biggest fall this year). Earlier, in May, the 10-year 3-month yield spread turned negative. The inverted yield curve (negative 10–2-year spread) has preceded economic recessions several times in the past. However, there is no accurate lead time for when the recession will hit following the inversion of the yield curve (studies indicate a range of 8 to 24 months with an average period of 22 months).

  • Investment in Gaming Industry – Not a Child’s Play

    Since the 70s gaming has been a popular activity among adolescents. With new technologies and innovations, games have only become more sophisticated. Easy availability of mobile phones and internet has added to their widespread usage. Pegged at an estimated USD148.8bn in 2019, the industry is expected to reach USD196bn until 2022, recording a CAGR of 9.6%. The sector is driven by changing demographics and increasing focus on other avenues such as mobile gaming. Although investing in individual stocks of conglomerates in the gaming space (Sony, Microsoft) or focused gaming companies (EA, Activision, NVIDIA) promises higher returns, it is accompanied with higher risks.

  • Supremacy of Netflix, Amazon and Hulu Set to Weaken in 2020?

    Introduced just a decade ago, video streaming is set to replace conventional cable TV, which has existed for almost seven decades in the US. Over the past years, early entrants such as Netflix, Amazon (Prime Video) and Hulu have acquired significant market share in the online streaming universe in the US. To tap into this revolutionary growth, giants from tech and media world, such as Disney, Apple, Comcast and AT&T, are entering the market, launching a streaming war of sorts.

  • COVID-19 Equity Market Impact – Does History Suggest We Stick to Classic Defensives?

    Whenever any equity market collapses, downside protection and relative outperformance become crucial. Healthcare, staples and utilities, by their very nature, are often termed classic defensives in such times.

  • Build America Bonds

    Federally subsidised BABs were launched more than a decade ago to fund infrastructure projects amid the liquidity crunch during the 2008 global financial crisis. Some features of BABs are still suitable for large infrastructure financing requirements. Thus, BABs may be reinstated as a financing option for Biden’s USD2.3 trillion infrastructure plan.