In its Financial Stability Review of 2 May, the South African Reserve Bank sights the probability of further downgrades to South Africa’s credit ratings. This may weaken the currency and lead to higher borrowing costs. In April the sovereign credit rating was cut to junk (debt “non-investment grade” or “speculative”) by both S&P Global Ratings and Fitch Ratings Ltd. Having South … more
On 26 April Switzerland’s second biggest bank Credit Suisse reports a first quarter net income of CHF 596bn, reversing a CHF 302m loss a year earlier. This appears to be part of a trend of European banks getting back on a road of recovery. Credit Suisse CEO Tidjane Thiam among others announced that he intends to raise CHF 14bn through … more
It is reported that capital flows to emerging markets have turned positive for the first time since the 2nd quarter of 2014, having attracted a net US$ 28,6bn in the 1st quarter of 2017. This comes after the Washington DC-based Institute of International Finance (IIF) reported that cross-border portfolio flows in March were at their highest monthly level since January … more
On 17 February Kraft Heinz announces a US$ 143bn take-over bid for Unilever, only to be withdrawn two days later after strong pushback from the Unilever chief executive and Board. The potential benefits were questioned by Unilever shareholders, 70% of whom are long-term investors who have held their shares for over 7 years. The failed bid did raise concerns about … more
The World Economic Forum (WEF) publishes its Global Risks Report on 11 January. Based on its Global Risks Perception Survey (GRPS) with feedback from 750 experts, it concludes that rising income and wealth disparity and increasing polarization of societies are 1st and 3d respectively among underlying trends that will determine global developments in the next decade. Among top environmental issues ranking both high-risk … more
