GlobalAutoTV
Click to watch Daniel P. Malone -
Click to watch Daniel P. Malone -
asia resources


Need an office in Asia? Office suites, meeting rooms, virtual offices, network access



free downloads
ASIA: "Fuelling the Asian growth engine: Talent challenges, strategies and trends" report

ASIA: "Fuelling the Asian growth engine: Talent challenges, strategies and trends" report. 76-page report by Deloitte.

proceed to download
eJournals




back to index backASIAtalk April,  2017


Asia corporate sentiment on the rebound

Corporate confidence in the largest Asia ex-Japan firms has rebounded to the highest level since 2014, with top executives looking to growth in demand as the main driver of earnings, according to US asset manager Fidelity International's (Fidelity) latest annual survey.

The improvement was particularly strong in Asia Pacific, with China and India standing out.

The Fidelity Analyst Survey 2017 reflects the views of 146 of the company's equity and fixed- income analysts, gathered from roughly 17,000 meetings with corporate decision-makers. It showed management confidence in Asia and globally at a three-year high, bouncing back from a negative reading in 2016.

"With cyclical forces evident across all regions and sectors, chief executive officers now regard demand-led growth as the main driver of earnings growth for their companies, whereas last year they were looking to maximise cost efficiencies," Fidelity said last week (March 29) in a statement on its survey findings.

But its analysts flag some material risks, including the possibility of a renewed slide in oil prices, and a faster pickup in inflationary pressures in the US and UK that could potentially result in tighter global financial conditions. Protectionism in the US and Brexit are other concerns.

"China and India stand out in this year's survey," Catherine Yeung, investment director at Fidelity, says in the statement.

She says the renewed confidence in China is due to improving capital returns and balance sheet strength and shows that fears of a hard landing "have receded considerably".

"China is also the region where analysts expect the least expansion in headcount over the next year. This shows that China is climbing the value chain towards higher quality growth that embraces higher levels of automation," she adds.

As for India, Ms. Yeung says the withdrawal of some bank note denominations from the money supply last year caused "severe monetary shock" but that it "should strengthen the fight against corruption and broaden the tax base".

"India has a long-term sustainable economic growth rate around 6% or 7%, according to our analysts, driven by positive structural growth factors such as a younger population, and greater scope to grow per capita income and investment levels than other emerging markets," she adds.

Most analysts covering the US do not think their companies would benefit from protectionist policies. And a majority of analysts covering Europe say Brexit will have a negative impact on their companies.

But generally, Ms. Yeung says "there are few signs that political risk is genuinely holding companies back."

"Our analysts are not oblivious to the many political challenges that face the world, but generally they do not see these weighing on company investment decisions, with the noted exception of Brexit," she adds.

The survey found that information technology (IT) was the biggest winner among sectors, with analysts expecting stable or rising spending across all sectors and regions.

Surprisingly, Fidelity says, consumer discretionary companies, which usually benefit from any cyclical upswing, scored the lowest.

"This reflects the fact that risks to incumbents from waves of industry-led and consumer-led disruption are significant. Spending continues to shift from offline to online everywhere, disrupting existing business models, intensifying competition and squeezing profit margins," Ms. Yeung says.

Fidelity managed US$279 billion of assets globally as of December 31, 2016.

Source: Asia Asset Management - GAI






previous page

go top



search our site


Loading

ASIAtalk

Other articles from the same issue (April,  2017).

Automakers struggle to keep Vietnam production amid ASEAN tariff cuts
play read on

Auto Makers Long for Easier China
play read on

The Indian auto finance market - at a crossroads
play read on

Report: US Automakers Seek End To Chinese Tariff
play read on

WardsAuto: Koreans Snap Up First Imported Bolt EVs in 2 Hours
play read on

Indian Auto Stocks Hurt by Court Ruling
play read on

Chinese manufacturing, auto sales show rebound
play read on

Asia corporate sentiment on the rebound
play read on

One in four forced to pay bribe in Asia - report
play read on

India To Provide China Serious Competition In Low Cost Manufacturing By 2020 – Analysis
play read on

Low-cost Manufacturing In Asia: The Mighty Five
play read on

Shift of global economic power to emerging economies set to continue in long run, with India, Indonesia and Vietnam among star performers
play read on

Employee Pensions in India
play read on

China issues compliance requirements on related-party transactions
play read on

How Technology Can Help China With The New Customs Self-Tax Methodology
play read on

India to block Japan’s request for WTO dispute panel on steel penal duties
play read on

How Asian companies are making use of supply chain technology
play read on

Vietnam: New update on CIT, PIT, FCT, SCT, Import duty and Export duty, and other taxes and fees on March 2017
play read on

2017 Tax Reform - Passage of the Bills
play read on

APAC Was Highest Contributor to Supply Chain Risk in 2016
play read on

Vietnam releases new transfer pricing decree
play read on

Why India needs to take China’s One Belt One Road initiative seriously
play read on

Talent Acquisition is Top-of-Mind for Southeast Asian Orgs
play read on

India: Illustrative Ind AS consolidated financial statements - First time adoption
play read on

Singapore is on the Move!
play read on

Korean Tax Update 2017 March (Update in Korean language)
play read on

Japan looks beyond Industry 4.0 towards Society 5.0
play read on

Singapore signs slew of deals with Vietnam
play read on

Two-thirds of Singapore employers struggle to attract talent
play read on


Our Free eJournals
GlobalAutoExperts

To visit GlobalAutoExperts Directory, click here.


©2008 GlobalAutoIndustry.com | HCI Group, Ltd.
101 West Big Beaver Road, Suite 1400 | Troy, MI 48084 USA
USA Tel: +1.248.687.1060 | USA Fax: +1.248.927.0347
Fax UK: +44.(0)845.127.4765 | Fax Europe: +31.20.524.1659 | Fax Asia: +852.3015.8120