Articles List

Articles List

Panama - Q4 2014

We expect the new President Juan Carlos Varela (elected May 2014) to maintain a broadly pro-business stance, as he has stressed the need for a continued focus on improving infrastructure and competitiveness. As such, we expect construction and infrastructure companies involved in the country's substantial public works programme will continue to benefit under Varela's administration. This bodes well for the much needed modernisation and expansion of the country's water sector.

Strong Power Sector Growth On A Stable Outlook

Our 2015 outlook for the Asian power sector remains stable, despite slight revisions to the forecasts for four countries. Asia will be the second fastest growing region in terms of generation, behind Sub-Saharan Africa.

Rosneft To Struggle At University

Igor Sechin's announcement of a 730mn barrel oil discovery in the Kara Sea is redundant in the face of sanctions preventing technically specialised companies from developing resources on the Russian Arctic Shelf.

Novo Nordisk To Invest In Obesity Research With New Unit

This market holds much potential as well as risk. The recognition of obesity as a chronic disease will aid the efforts of pharmaceutical companies and Novo Nordisk will benefit from its expertise in diabetes, another chronic disease. Investment could lead to a portfolio of treatments, but success will depend upon further acceptance of this as a disease, acceptable safety risks, and increased payer/physician interest.

New growth frontier in South Africa's Telecoms market

BMI View: High-speed broadband service is the next growth frontier in South Africa's telecoms market. Traditional telecoms service providers have led the way in the development of broadband infrastructure and services, but major ISPs will take steps to benefit from this trend as evidenced by Dimension Data's recent consolidation activities in the broadband market.

Canal Development To Drive Public Unrest

Nicaragua's inter-oceanic canal project will prompt a deterioration in the country's political risk profile as it moves toward the first phase of construction. While we do not believe that the canal will be completed, initial development efforts will engender significant local unrest as the unfavourable terms of the project come to light.

Prince Rupert To Gain From US Transport Woes

Shippers will continue to divert their routes away from US West Coast Ports towards Canada until ongoing labour talks are concluded, which we believe will be before the end of 2014. We have therefore upgraded our 2014 container throughput growth forecast for the port of Prince Rupert. Other costs and delays on the US transport network are having a greater bearing on the upward revision to our medium-term (2015-2018) growth outlook.

Occupy Central Losing Steam As Beijing Asserts Will

Beijing's August decision that candidates for Hong Kong's Chief Executive position will need to be approved by a roughly 1,200 person committee confirms our view that the city-state is no longer politically autonomous from the mainland. While Occupy Central protestors continue to plan public protests over the matter, we believe that the movement is losing momentum, and that it will not seriously undermine commerce or social stability in the country.

Removal Of Ownership Restrictions Will Boost All-Share

The Tanzanian equity market will become increasingly liquid as the government relaxes controls on foreign ownership. More companies will list on the stock exchange, though we believe that telecoms companies will be resistant.