INTERNATIONAL. Marc Faber the Swiss fund manager and Gloom Boom & Doom editor spoke today about the Standard & Poor's credit rating downgrade of US sovereign debt, and how the downgrade was long overdue as the 'junk bond' was no longer worth of an AAA rating.
He views the downgrade as moderately positive for equities because it shows investors there is a risk in holding government bonds and discusses the conditions that will lead to QE3.
Speaking in an interview from Chiang Mai, Thailand, with Susan Li on Bloomberg's "Asia Edge" this morning, Faber said a government b
INTERNATIONAL. "Sovereign creditworthiness will likely remain the main driver behind bank ratings changes. But we note that many other risk metrics for the banks have remained fairly resilient, from profitability to funding and asset quality."
UAE. "The benefits of customer-funding are far more than just the freedom from heavy loans and interfering investors. Entrepreneurs must realise that their top priority - at least during the early days - is to find paying customers, not to raise capital."
QATAR. The outlook remains uneven and risks are tilted heavily on the downside. The eventual rise in US interest rates and geopolitical risks emanating from Eastern Europe and the Middle East are likely to add to the investment slowdown.
SAUDI ARABIA. Higher public spending and robust credit growth should support non-oil growth with construction, transport, manufacturing and retail sectors in the lead; A slowdown in global growth and geopolitical tensions constitute key risks, though they are less acute and more evenly balanced than in recent years.
UAE. Big data has the potential to increase top-line revenues by providing better and more timely insights on target consumers; Many organizations, including in the Middle East, are starting to invest in developing their capabilities to take advantage of big data.
INTERNATIONAL. White paper published by MBA graduates of Harvard Business School in collaboration with Growthgate Capital, suggests that many of the beliefs surrounding the impact of PE firms, such as job destruction and an excessive focus on short-term profitability, do not hold.
UAE. It is said that education is the best investment you can make for yourself and for your children. The affluent population in the Middle East appear to agree. They are also amongst the most digitally plugged-in in the world.
UAE. Cross- border bank M&A transactions to double by 2025, set to outpace GDP growth in emerging markets; Deloitte report also outlines the steps that these banks will need to take in order to expand internationally.
UAE. Valuations for resources sector equities are currently very attractive and trading below historical levels; Positive outlook is based on the size of differential between what it sees as positive company specific drivers versus a negative - often macro driven - consensus view.
SAUDI ARABIA. The Saudi Arabian index is the region's most diverse capital market due to its size and maturity; Jadwa Investment views the opening up of the Tadawul as an overall positive but believes a cautious and considered path to reform is the best way forward, much like the Chinese example.
INTERNATIONAL. "With business operations in both the UK and the GCC, BLME has made significant progress in the first half of the year"; The Group increased its Operating Profit before Impairment charges by 177%.
UAE. Dubai World, the state-owned company at the center of the emirate's 2009 financial crisis, reached a deal with its main creditors to extend the repayment of US$10.3 billion of debt, according to people with knowledge of the matter.