Investors bullish about prospects for global growth

BofA Merrill Lynch Fund Manager Survey Finds Investors Displaying Growing Conviction in Growth

Portfolio managers indicate that QE era is coming to an end

Investors are increasingly bullish about prospects for global growth and a diminishing number expect further rounds of quantitative easing (QE) by central banks, according to the BofA Merrill Lynch Survey of Fund Managers for March.

A net 28 percent of investors expect the world economy to strengthen in the coming 12 months – a big rise from a net 11 percent in February. As recently as January the majority of respondents predicted that the economy would weaken. Eurozone confidence has risen – this month sees an even split between those expecting a stronger or weaker eurozone economy. In February a net 35 percent predicted the economy would deteriorate. Read more

World’s Most Competitive Cities in 2012

New Ranking Reveals U.S. and European Cities Are World’s Most Competitive

Mid-Size Cities Emerging as Key Drivers of Global Growth

Asian Cities Strongest Economically: EIU Report

 A new Economist Intelligence Unit (EIU) research report reveals that New York, London and Singapore rank first, second and third in competitiveness, out of 120 of the world’s major cities. Released today, the report, entitled Hot Spots, ranks the most competitive cities in the world for their demonstrated ability to attract capital, business, talent and tourists. Read more

Sharp run higher in oil prices on Iran concerns

On Friday, brent oil reached above $125 a barrel to end near a 10-month high as the United Nations’ nuclear watchdog said Iran has intensified work on uranium enrichment. For the week, Brent crude is up 4.9 percent, its biggest weekly percentage gain since the week to January 6.

The sharp run higher in oil prices causes worries that slower consumer demand will slow global economic growth, particularly as the euro zone seems to be headed for recession. Read more

UAE ranked second top frontier market on Bloomberg Markets

According to the results of Bloomberg Markets’ first ranking of the most-promising emerging and frontier markets for investors, the United Arab Emirates ranked second among the world’s frontier markets.  Index providers consider frontier markets still too small or illiquid for most investors. Bulgaria and Romania tied for third place. Read more

MENA trade with Russia, India and China set to grow

MENA trade with US, EU, Japan and Rest of Americas set to lag global average

Ernst & Young’s Emerging Markets Forum 2012 projects growing trade with emerging markets

The Middle East and North Africa (MENA) trade flows will grow fastest with Russia, India and China over the period 2012 to 2020, according to Ernst & Young’s forecast ‘Trading places: The emergence of new patterns of international trade,’ in conjunction with Oxford Economics. Beating the global average of trade growth that is set at 9.4% per annum, MENA trade with Russia will grow at 14.4% p.a., with India at 13.5% and with China at 12.5% through to 2020. On the other hand, annual MENA trade growth with US (8.4%), EU (7.7%) and Japan (7.3%) will lag the global trade growth average of 9.4% p.a. Read more

Renewed Confidence in Global Equities, Survey

Largest Recorded One-Month Improvement in Liquidity Conditions

Emerging markets benefit from bounce in risk appetite

Investors are showing renewed confidence in global equities amid radically improved market conditions and growing hopes of economic growth, according to the BofA Merrill Lynch Survey of Fund Managers for February.

Allocations towards equities have made the largest one-month leap since the beginning of 2011. A net 26 percent of asset allocators are overweight equities, up from 12 percent last month. Appetite for cyclical stocks, including Industrials and Materials sectors, has picked up while allocations towards defensive stocks, including Pharmaceuticals and Telecoms, have fallen. Investors have also reduced cash levels. A net 13 percent of asset allocators are overweight cash, down from a net 27 percent in January. Read more

Hedge Funds begin 2012 with strong gains

Emerging Markets gain +5.3 percent, leading broad-based advance

Hedge funds opened 2012 by posting broad-based gains in January, with the HFRI Fund Weighted Composite Index gaining +2.63 percent, the second highest monthly performance figure since December 2010, according to data released today by HFR, the leading global provider of data, analysis and indexation of the hedge funds industry. Read more

Emerging markets: Driving force behind renewable energy investment

• Energy requirements, policy and job creation are the key drivers
• Solar thermal energy has been a particularly popular investment with several large projects on the way in Abu Dhabi, Algeria, Jordan and Morocco

While developed countries remain focused on slowing demand and cutting costs, an insatiable hunger for energy within the emerging markets such as those in the Middle East and North Africa (MENA) now appears to be the driving force behind renewable energy investmentEmerging markets, renewable energy,  investment, according to Ernst & Young’s latest quarterly global renewable energy Country Attractiveness Indices report (CAI). Read more

MSCI extends review for reclassification of UAE from frontier status

MSCI, whose stock indexes are tracked by investors with about $3 trillion in assets, announced today it will extend its review for reclassification of the U.A.E. and Qatar from frontier status “in order to give additional time for market participants to assess the effectiveness” of the new payment systems in the exchanges, according to a statement. Read more

Wealth Management Year ahead 2012, Key Investments

Investors should focus on investments that offer yield, quality and diversification amid expectations that the global economy will avoid recession but experience fragile growth in 2012, according to Bill O’Neill, Chief Investment Officer for Europe, Middle East and Africa (EMEA) at Merrill Lynch Wealth Management and the author of the Merrill Lynch Wealth Management Year Ahead 2012. Read more

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