WEF-Survey shows that seldom used financial risk mitigation tools are key to bridge the emerging markets' $1 trillion infrastructure gap
July 28, 2016--The Risk Mitigation Instruments in Infrastructure: Gap Assessment report highlights the effectiveness and use of risk-mitigation instruments in infrastructure
The report shows that current instruments are too complex, lack adequate standardization and are too costly for the private sector to use
Several actions could help accelerate the allocation of institutional investors' funds towards investment opportunities in infrastructure in emerging and developing economies
A new report launched today by the World Economic Forum calls for international financial institutions to develop new tools and products to close the infrastructure gap in emerging and developing economies. The report, Risk Mitigation Instruments in Infrastructure: Gap Assessment, offers a framework for institutions to assess gaps in the provision of risk-mitigation instruments and to mobilize much-needed long-term infrastructure investment in emerging and developing economies.
view the Risk Mitigation Instruments in Infrastructure: Gap Assessment report
Source: World Economic Forum (WEF)
World Economic Forum-Risk-Mitigation Instruments in Infrastructure: Gap Assessment
July 28, 2016--The report, Risk Mitigation Instruments in Infrastructure: Gap Assessment, offers a framework for institutions to assess gaps in the provision of risk-mitigation instruments and to mobilize much-needed long-term infrastructure investment in emerging and developing economies.
The report outlines input from more than 40 institutional and private investors with total assets under management exceeding $2 trillion, as well as feedback from project developers and construction companies, global banking institutions, insurance and reinsurance companies, international financial institutions and professional services firms.
view the Risk Mitigation Instruments in Infrastructure Gap Assessment
Source: World Economic Forum
BlackRock's Midyear Outlook
July 27, 2016--Markets are torn between anxiety over the fallout from the UK's Brexit vote and the prospect of a strengthening U.S. economy.
The BlackRock Investment Institute provides a roadmap for the second half of the year.
Source: BlackRock
IMF-New External Assessments Show Larger Imbalances in 2015
July 27, 2016--External imbalances have widened again after narrowing following the global crisis
A more balanced policy mix is needed, with greater reliance on fiscal and structural policies
Collective policy action will be needed if global demand slows further
External imbalances widened again in 2015 after narrowing in the aftermath of the global financial crisis. Countries should take measures that reduce excess imbalances without compromising global demand, according to a new IMF analysis.
view the IMF 2016 External Sector Report
Outflows for Europe equity exposures moderated to ($1.6bn) and funds listed
in Europe experienced their first inflows since January with $0.6bn
Broad EM equities generated $3.6bn to bounce back from outflows in May, and
EAFE flows accelerated to $3.1bn
Source: BlackRock ETP Research
World Bank Raises 2016 Oil Price Forecast
Oil prices jumped 37 percent in the second quarter of 2016 due to disruptions to supply, particularly wildfires in Canada and sabotage of oil infrastructure in Nigeria. The revised forecast appears in the World Bank's latest Commodities Markets Outlook and takes into account a recent softening of demand and the recovery of some disrupted supply. Special Focus: Recent Credit Surge in Historical Context
Source: World Bank
DECPG Global Weekly-July 22, 2016
S&P downgraded Turkey's sovereign debt rating after failed coup attempt
WEEKLY INSIGHT
Fiscal policy challenges in emerging market and developing economies (EMDEs) vary across commodity importers and exporters. However, in most countries, the scope for expansionary fiscal policy remains limited.
Source: World Bank
Safe haven categories fared well, with gold and U.S. Treasuries accumulating $5.4bn and $1.5bn, respectively, and minimum volatility funds adding $2.8bn
Yield-oriented funds brought in a combined $8.7bn, led by the best high
dividend equity month on record with $3.8bn and EM debt with $2.3bn
Oil prices seen higher due to supply disruptions, strong demand in second quarter
July 26, 2016--The World Bank is raising its 2016 forecast for crude oil prices to $43 per barrel from $41 per barrel due to supply outages and robust demand in the second quarter.
Since the global financial crisis, credit to the private nonfinancial sector in EMDEs has risen rapidly, especially to the corporate sector.
July 22, 2016--TAKING STOCK
U.S. initial jobless claims edged lower; housing market rebounded
Euro Area PMIs edged down; ECB left interest rates unchanged
Flash UK PMIs fell sharply after Brexit vote.
Nigeria's inflation accelerated in June
Fiscal Policy Challenges in Emerging Market and Developing Economies
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