The annual Canning House Lecture – sponsored by Santander – was delivered this year by H.E Michelle Bachelet, President of Chile. The event, as reported by various outlets, explored the investment opportunities available to British companies who may be considering exporting to the region.
With a strong economy, sophisticated capital markets and a regime committed to foreign investment, Chile provides an ideal environment for UK exporters to thrive. What makes Chile particularly attractive is its extensive network of free-trade agreements with 62 countries – predicted to expand with the Trans-Pacific Partnership (TPP). Opportunities for UK firms are further boosted by the strong relationship enjoyed by the two nations.
Other topics addressed included: investment in mining, infrastructure, energy and education and science. Indeed, the opportunities for trade between the UK and Chile are vast.
After Moorgate’s outreach, the event was covered by the specialist press, including Global Banking & Finance Review, FX-MM and TFR.
The annual Canning Lecture – delivered this year by H.E Michelle Bachelet, President of Chile – gave a compelling insight into the investment opportunities available to those UK companies looking to export to the region. In a blog post for LinkedIn Pulse, John Carroll sheds light on the key areas for investment. Of particular interest, he writes, are the mining, energy, education and science and infrastructure sectors.
Chile consistently ranks highly in terms of competitiveness, economic freedom, income per capita and the low perception of corruption. Certainly, the country’s commitment to trade is supported by the free-trade agreements it has with 62 countries – giving it access to 85% of global GDP. Indeed, Carroll emphasises that there has never been a more opportune time to enhance trade relations between the UK and Chile. This sentiment was echoed by both governments and the business community present at the Canning House Lecture.
To read the LinkedIn Pulse post, click here.
Offering his insights to specialist magazine, The BRICS Post, Thomas Krieger, Regional Head of Latin America at Commerzbank, argues that if Brazil is to move on from a series of economic setbacks, it must ramp up its trade.
The Latin American economy has certainly suffered in recent years – facing corruption scandals, low commodity prices and the worst recession in over a century. But in a Q&A with the magazine, Krieger points out that by building a stronger export base and encouraging more trade with its regional neighbours, Brazil could secure a better long-term economic future.
Particularly, Krieger urges Brazil to channel its energies into the production of a broader range of higher-value exports – including aircraft and cars – in order to become less reliant on volatile revenues from raw commodities such as oil, metal ores, and agricultural products. He also notes that, as the world’s eighth-largest economy, Brazil will continue to offer great trading potential for partners around the globe.
Please read the article here.
Some market observers predict a global financial crisis in 2016-2017; one just as serious, if not more so, than that of 2008-2009. Writing for Institutional Investor’s Unconventional Wisdom column, Patrick Artus, Natixis’ Chief Economist, analyses the global economy today and discusses the potential triggers of the next crisis.
Signs of financial fragility have been growing since the spring of 2015. With a growing liquidity crisis and Brazil, China and various other commodity exporters experiencing economic turmoil, the stage is being set for another global financial crisis. However, despite these issues, the regulatory foundations built over the past eight years are resilient, and an economic crisis – if it does occur – will not stem from the same causes as those of 2008.
Artus argues that the Basel reforms have been read by many bankers as an extended mea culpa for getting things so grievously wrong before the crisis, which in turn have set a new era of stability. However, Natixis’ Chief Economist does speculate over the financial impact of a large, troubled country (such as Brazil) or a significant corporation – such as one in the US energy sector – going into default, which would lead to a rise in risk premia in the US and Europe. Indeed, the cause of the next financial downturn remains unclear, but what is certain is that the current global financial landscape may struggle to alleviate the economic effects should disaster strike.
To read Artus’ article, please click here.
Writing for leading magazine, Global Banking and Finance Review, Alexander Rost, Regional Head Indian Subcontinent & ASEAN at Commerzbank, stresses that diversified and higher-value export trade is crucial to ensuring that Bangladesh continues on its promising development path. Key to this will be collaboration between local and global banks – those institutions with the infrastructure to facilitate trade flows.
Yet with sustainability rising high on the agenda for global corporates, Rost also notes that Bangladesh must do all it can to ensure that environmental, social and governance (ESG) risks do not dissuade foreign trade partners from engaging in the country’s growth. He argues that, again, the banks will be crucial: while the central bank can channel investment into ‘green’ enterprises, global banks will play their part in shielding global companies from reputational risks in Bangladesh, and identifying reliable, sustainable trade partners on the ground.
Read the article online here, on pages 121-123.
On April 5th, the Commonwealth Enterprise and Investment Council hosted a trade and investment delegation from Lesotho, led by Deputy Prime Minister Mothetjoa Metsing. The day’s investment forum – including roundtables, project showcases and keynote addresses – was held at London’s Malborough House, and demonstrated the mountain kingdom’s investment opportunities in the mining, renewable energy, infrastructure and tourism sectors.
Following an interview with The Honourable Setipa – Lesotho’s Minister for Trade and Industry – GTR has published a Q&A exploring the landlocked country’s success in diversifying its economy, improving business efficiency and reducing physical and financial barriers to foreign investors.
To read the interview, please click here.
Having ushered in a new government, marked a quarter of a century of independence, and posted the first positive economic growth after six years of recession, Croatia’s fortunes seem at last on the mend.
Writing in specialist magazine, Trade and Forfaiting Review (TFR), Nicolas Adamovich – Commerzbank’s senior representative in the bank’s Zagreb office, and president of the German Croatian Chamber of Industry and Commerce – argues that the country’s economic recovery will rely on securing investment from abroad, in order to fully exploit its extensive trading prospects.
Bangladesh’s economy continues to make progress, and is looking to cement its new status as a middle-income country.
Writing in leading magazine, World Finance, Commerzbank’s Alexander Rost, Regional Head Indian Subcontinent & ASEAN, suggests that, to achieve this, a diversified economy is essential. This will require expanding new industries, reducing Bangladesh’s traditional overdependence on the textile industry, and improving its national infrastructure.
Rost argues that a strong financial sector can help mitigate risks to Bangladesh’s trade, and support its sustainable integration into the wider world economy.
The article can be read within the magazine here.
Falcon Group recently hosted a roundtable discussion in London to explore the exporting landscape – examining the challenges, opportunities as well as solutions for long-term growth and boosting British exports.
The roundtable, chaired by GTR, covered a number of topics, including the role of education in encouraging exporting, the impact of regulation on British exports, the rise of specialist financiers following the trade finance gap, and the role of the private sector in boosting British exports. The participants also discussed the complexity behind obstacles facing British companies in starting and continuing to export, and the reasons behind a limited British presence in the emerging markets.
The participants included representatives from the International Chamber of Commerce (ICC) UK, UK Export Finance (UKEF), British Exporters Association (BExA), Cummins Power Generation, Santander, and Coface UK, as well as Falcon’s CEO Will Nagle; CFO, Nick Gowland; and Head of Business Development for UK and Europe, and Emma Clark.
To read the full write-up of the discussion in GTR, please click here. (Please note, this link lies behind a paywall).
Commerzbank has announced the appointment of two new representatives for their offices in Taiwan and Vietnam. Hans-Kurt Schäfer (right) will head the bank’s representative office in Taipei, taking over from Thomas Debelic (left) who is to lead the Ho Chi Minh City base.
Commenting on the move, Schäfer says: “I am excited to be returning to Asia, adding to 30 years of experience working there and closely monitoring its development. Taiwan, in particular, is a market with great opportunities for engaging with the wider global economy. I would like to wish Thomas Debelic well on his new position.”
Debelic adds: “I look forward to my new position in Vietnam and hope to bring my experience of working with emerging financial markets and micro finance-strategies to East Asia. I would also like to thank my predecessor, Norbert Kraatz, for having built a solid foundation of expertise and contacts.”
The task of the representative offices is to establish close relationships with local banks, and advise corporate customers – mainly from Germany and Europe – while also cultivating contacts with local government offices.
Thanks to Moorgate’s outreach, the news was covered by a range of specialist trade and financial press, including The Asset, Global Trade Review, India’s Financial Chronicle (in print) and Treasury Management International.