Entries tagged with “investment-research”

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83 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).

  • 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.

  • 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.

  • 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

  • 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.

  • 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.

  • Upbeat US IPO activity, not for Unicorns though

    The spectacular line-up of IPOs at the start of 2019 implied it would be a blockbuster year for the primary market in the US. The decline in issuances over 2018 was offset by increase in the value of issuances during the year. Unicorns such as Uber, Lyft, Slack that had raised billions in multiple rounds of private equity/VC funding seemed set to shatter the traditional 'path to profitability'. However, closer to the end of 2019, the picture is rather different: the IPOs of these 'gig economy', 'millennial focused' companies could not escape the scrutiny of a wider investor base in secondary markets. This clearly indicates that public investors do not share the same faith expressed by private equity investors in mere user aggregation and future monetization.

  • US-China Trade War: And The Winners Are...

    Over the last year and a half, the US-China tariff war has had a significant impact on trade diversion, creating both winners and losers. It has reshaped supply chains globally. The hike in tariff prompted the US to shift its supply chains to other Asian countries, while Chinese firms increased sourcing of goods from the Americas, excluding the US. Vietnam emerged as the biggest beneficiary and has since seen the most significant increase in market share, particularly in electronics and textiles. Asia’s other emerging economies, such as Bangladesh, Taiwan, and Thailand, have also benefitted from the trade war.

  • The Future of Digital Lending in India

    Digital lending is leading the FinTech revolution. Though still in the nascent stage, it has managed to gain a strong foothold in India. Various models are currently being used, as it slowly evolves and becomes sophisticated. In this article, we explore the potential of digital lending startups in India, along with factors driving growth and the role of various government initiatives to support it.

  • What drives commodity prices- speculation or fundamentals?

    Commodity prices are affected by various factors. While demand and supply dynamics could be the underlying cause of fluctuations, at times, other forces too create ripples in the market, such as speculation by traders, and changes in government policies. What is, therefore, the main cause of price fluctuation historically and has it changed?

  • 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.

  • Growing Competition in US Media Industry Driving Acquisitions

    The astronomical success of Netflix has disrupted the traditional entertainment market, luring tech players to the newly created SVOD segment and forcing incumbents to adapt. With content as the key differentiator, companies are either investing heavily in original content or acquiring traditional companies with popular existing content. Some companies are also using this opportunity to diversify or enter new segments through acquisitions. The past year has seen many major deals, including mega mergers such as Disney-Fox Corp and AT&T-Warner. The momentum is expected to continue as small media companies look to partnerships to boost scale or gain synergy.

  • 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.

  • Market reactions on Coronavirus, Is it overhyped?

    The outbreak of the deadly coronavirus in China has already started affecting various business sectors either directly or indirectly. As the death toll in the country climbs, China is forced to take preventive measures and focus its efforts on people’s health and safety. Increased leaves in factories, along with decreased travel and shopping, are already dragging a few sectors down. Will these effects lead to a global downturn or will they be a short-term panic attack? What will be the impact of this virus on the world economy? We attempt to answer these questions in this article.

  • Efficient Corporate Governance Framework - Essential for Success

    Corporate governance refers to a necessary framework adopted by companies to safeguard the interests of customers and other stakeholders. An efficient corporate governance structure can ensure positive returns for shareholder. Moreover, with ESG increasingly being recognized as a key component of corporate governance, this ensures that the company meets its obligations toward the environment and society.

  • PE Firms Going Long on US Online Short-Term Rental Market

    The vacation rental homes industry has developed rapidly and is set for more growth. Due to the promise it holds, the market has not only attracted venture capitalists but also witnessed an increase in mergers & acquisitions. This growth can be attributed to technological advancements and the market’s online nature, making it easy for travellers to choose, review and book. Hotel chains are also entering this space through either mergers or by creating smaller entities within to have a slice of the pie. Outlook for the industry remains positive and disruptive technologies will redefine the domain further.

  • Micro mobility in the fast lane – addressing the first and last mile commute

    The rising concern on environmental degradation has led to various solutions to reduce our carbon footprints. This business model, which involves shared use fleets of small e- vehicles has recently attracted a lot of attention, due to investments flooding it. The conducive environment has allowed this model to flourish and the futuristic outlook of its market is also positive.

  • 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.

  • GCC 2020 expansionary budgets under threat from oil price slump due to Covid-19 spread

    Oil prices have been declining over the past two months following the outbreak of coronavirus in Wuhan, China, which is now spreading globally. The spreading of the disease is expected to have a substantial effect on global GDP and oil prices. The persistent weakness in oil prices is worrisome mainly for the GCC region as oil is the major source of revenue. Gulf countries have already announced their budgets for 2020, assuming oil price at USD55–60 per barrel. With oil prices currently way below the GCC governments’ estimation, the deficits of these countries could widen toward the end of 2020. However, the constant efforts of GCC countries to diversify their economy towards the non-oil sector over the past many years would provide some cushion in this challenging environment.

  • North American Cannabis Sector: Challenges Facing Cannabis Companies in the US and Canada

    While 2019 may have been a difficult year for both Canadian and US cannabis companies, 2020 is expected to provide more reality checks. Even as the pace of legalization continues in the US with presidential candidates assigning cannabis a key position in their campaigns, multi-state operators (MSOs) are battling with operational and capital issues, and cash crunch. On the other hand, Canada grapples with supply issues. Canadian regulators are working to remove bottlenecks through efficient licensing.

  • Is the US economy heading toward a significant market correction?

    The US markets suffered its worst week in over a decade as investors went into panic mode with the S&P 500 losing almost 11.5% in a week, rapidly wiping out nearly a year’s worth of steady gains. With the longest ever 128-month expansion, investors are skeptical about a significant market correction in the short term. Moreover, the impact of coronavirus may weaken the Chinese economy and, in turn, US and other markets. Though economic indicators, such as the yield curve inversion and PMI data, provide substantial evidence for a correction, valuations remain on the higher side.

  • Will the oil market plunge sink all producers?

    The bloodbath witnessed by the crude oil market on the weekend of March 08, a ‘seismic’ event of sorts, saw oil prices nosedive to record lows. First, on Friday, March 6, news came in that talks between OPEC and select non-OPEC countries led by Russia for the extension of production cuts had collapsed; this implied that all producers would be free from April 1 to pump as much oil as they could. The likely result would be an oversupply in a market already grappling with slowdown in demand following the outbreak of coronavirus. Second, on Saturday, March 7, there was news of Saudi Arabia offering discounted prices to customers in line with its aggressive strategy to increase market share. This could potentially prompt producers across markets to cut prices in their bid to garner a bigger share. The overall impact was a mayhem in oil prices that led major research houses to substantially revise price targets downward. The developments may have far reaching negative impact, albeit in varying degrees, on all oil producers, from GCC countries to Russia to US shale oil producers.

  • Multivariate Model - An Optimal Method for Valuing Football Clubs?

    The Multivariate Model is a well-known method to carry out the valuation of football clubs. Its main components are revenues, transaction fees cost, assets owned by clubs. While a more optimal approach compared to DCF and Relative Valuation, it also suffers from certain limitations.

  • 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.

  • Debt Settlement Industry in US

    The American dream has always attracted people from across the globe. But sadly, today this lustrous dream is losing its sheen due to the growing debt crisis the country is grappling with. Those classy chip-embedded cards or credit cards, as they are known, have proved to be a boon for some while a bane for the others. Total consumer debt, comprising credit cards, mortgage, student loans, and auto loans, in the US climbed to $13.2bn as of Q2 2019. How is the country and its citizens going to escape the enormous debt they have hanging over them?

  • 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?

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • Changing Consumer Habits Herald Innovation

    Developments in the food & beverage (F&B) industry, an essential part of the US economy, are noteworthy. Changing consumer demand is creating opportunities for businesses to grow. As competition heats up, it becomes important to capitalize on the latest trends in order to stay ahead in the race. This article explores some of these trends and the potential for players in this business.

  • 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.

  • 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?

  • 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.

  • Smart Beta — Innovation, Meet Opportunity

    The tech bubble wiped out an estimated $30 trillion of wealth. The credit crisis that followed soon after further shook investor confidence in the markets. As a result, investors shifted from active management and hedge funds to passive investments that were still seeing massive growth.  

    In an attempt to reduce costs and boost returns, ETF providers dabbled in self-indexation to beat the market curve.

    Ideating, backtesting, constructing, and managing indices is a cumbersome endeavor however, demanding a lot of time and diligence if it’s to be done effectively.

    Efforts to circumvent these drawbacks have gradually spawned a new breed of innovative ETFs — known as Smart Beta — that combine aspects of both active and passive management strategies. 

  • Regime Based Asset Allocation (RBAA) — Let the Data Talk

    The growth of multi-asset portfolios in recent years has created a need to look beyond traditional asset allocation strategies. Different economic regimes produce significant impact on various asset returns and risks, albeit at varying degrees.

    Dynamically rebalanced asset classes have an established track record of increasing returns while reducing risk. A formal regime based asset allocation strategy could therefore be the optimal option for investors banking on multiple investment possibilities.

  • 5 Flaws and Fixes in P2P Lending That Could Make Banking Obsolete

    Online marketplace lending platforms — aka P2P platforms — could be a real threat to the banking sector if they get these things right.

  • Dubai – A Rising Star of Medical Tourism

    A number of significant investments as well as several favorable factors have made Dubai a medical tourism hotspot in the GCC region.

  • 3D Printing

    3D printing is a process of creating solid objects, where consecutive layers of materials are set in three dimensions until the desired object is formed according to data fed in the modelling software or from the scan of an existing object.

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Special Reports

34 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.

  • Photovoltaic Industry  Witnessing a Paradigm Shift

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

  • 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.

  • 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. 

  • 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.

  • 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.

  • 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.

  • 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.

  • 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).

  • 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

  • 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.

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

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

  • High Yield Bonds - The Rise of the Fallen

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

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

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

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

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