Articles List

Articles List

Solar Becomes A Bright Spot In Autos Manufacturing

BMI View: The use of renewable energy sources by carmakers will grow as sustainability and the issue of rising energy prices becomes increasingly important to their business. Solar will be one of the most favoured sources, as it can extend beyond just powering manufacturing facilities.

Petroleum Law Enhances Investment Clarity

More clarity on Mongolia's regulatory regime for the oil and gas industry could provide more business security for investors as the country seeks to boost domestic oil production for fuel security. However, more upstream exploration is needed to further de-risk participation in Mongolia.

Kenyan SMEs Set To Outperform

Small and medium enterprises (SMEs) face challenges across Sub-Saharan Africa, but those in Kenya are better placed than most to grow and succeed. An improving business environment, a technologically adept population, and established trade links with key export markets will help SME growth.

Drugmakers Pay Millions To Government Under First PPRS Rebate

The UK has traditionally had high state healthcare expenditure, with patients enjoying free access to doctors and specialists, and easy access to medicines. However, the government currently accounts for more than three-quarters of healthcare spending, and the expanding, ageing population will continue boost the demand for healthcare, pushing the government to focus on cost containment.

Potential For Stimulus Boosts Infrastructure Construction Outlook

We continue to hold the view that China's construction and infrastructure sectors are in a structural slowdown. The key reason for this outlook is because we believe that the basis for this increase in fixed asset investment is through the increase in liquidity in China's financial system, an unsustainable investment model due to the diminishing marginal return on expenditure. This however, does not mean a dearth of growth opportunities in both sectors.

Mining Equities Shaping Up For A Relief Rally

We expect mining equities to stage a relief rally in the coming weeks, albeit within the confines of a longer-term downtrend. A break higher by the Bloomberg World Mining Index illustrates that several factors are aligning that should temporarily boost sentiment towards mining equities after three years of decline.

Instability Damages Long-Term Oil Outlook

We have grown increasingly bearish on Libya's oil outlook. We see high volatility in output over the next six to 18 months, stemming from ongoing political instability, and expect the unstable security situation and falling investment levels to weigh on production growth across our 10-year forecast period.

Landscape Evolving For Asian Giants

We have slightly revised down our 2014 forecasts for electricity generation in Asia this quarter due to deterioration in the economic outlook for several countries in the region. Our forecasts for Japan experienced the most significant revisions due primarily to a slowing economy and a new energy plan. We also see growing upside risks to our power forecasts for India, while our long-term outlook for the broader Asian power sector remains unchanged and positive.

Drug Prices Continue To Fall

Governments will increasingly impose price controls on pharmaceuticals. Drugmakers have generally charged what the market will bear in developed and emerging markets. High prices were previously accepted by patients and national health services because it was difficult to equate monetary cost with clinical benefit. With the advent of health economics, coupled with increasing budget deficits, there will be more caps on medicine expenditure, especially on essential drugs.