Wednesday 27th May 2015
NEWS TICKER: WEDNESDAY, MAY 27TH: The S&P Capital IQ division of McGraw Hill Financial (NYSE:MHFI) whose CUSIP Global Services (CGS) unit produces identifying instruments and entities that support efficient global capital markets, says Scott Preiss, currently CGS’s Vice President and Chief Operating Officer, has been promoted to the role of Global Head & Managing Director, replacing Jim Taylor, who is retiring, on July 1st, after 28 years of service - Orezone Gold Corporation (ORE-TSX) says a mining permit application has been submitted to the government of Burkina Faso for the construction and operation of its wholly owned Bomboré gold project. The application is based upon the recently announced positive Feasibility Study (April 28, 2015) and includes an environmental and social impact assessment and a relocation action plan (RAP) for the local people affected by the project. The four to eight month permitting process includes public hearings and a complete review by the Ministry of Mines and Energy1 (MEE) and the Ministry of Environment and Durable Development2 (MEDD) and the National Mining Commission3 (NMC), a technical panel. During a weekly cabinet session in parliament the recommendations of the NMC are reviewed and once approved, the permit is a Decree signed by the President of Burkina Faso, the Minister of Economy and Finances, the Minister of MEE and the Minister of MEDD - BNP Paribas Securities Services says its BNP Paribas Dealing Services subsidiary has been selected to manage the dealing activities of RPMI Railpen, the investment manager for the Railways Pension Scheme (RPS). RPS is the sixth largest pension scheme in the UK. Following its decision to bring some of its investment activities in house, RPMI Railpen says it was looking for a dealing desk solution to optimise the execution of its market transactions. RPMI Railpen manages the assets of the RPS on behalf of its parent company, the Railways Pension Trustee Company Limited. Railpen Investments, its investment arm, is an FCA authorised investment manager with assets under management exceeding £21bn - LIM Advisors Ltd, a Hong Kong based fund manager, has signed a milestone agreement to utilise SimCorp Dimension for a full front, middle and back office platform. The $2bn fund manager will leverage SimCorp Dimension to establish full operational capability across multiple asset classes, including equity, bonds, convertibles, listed futures & options and derivatives - Botswana-based grocery retailer, Choppies Enterprises Limited (Choppies) debuted on the Main Board of the Johannesburg Stock Exchange (JSE) in the Food Retailers and Wholesalers sector and is the sixth listing on the exchange this year. The firm raised SAR575m in a secondary listing. Choppies boasts a wide FMCG portfolio, including its own private label products and leading international food brands. As a fast growing retailer on the continent, Choppies’ secondary listing on the JSE is intended to assist the company with access to capital needed to support its organic and acquisitive growth as well as establish its presence and public profile in strategic markets in Southern and East African markets. The group is currently the top supermarket chain in Botswana, holding significant market share of the overall national food retail market. Choppies currently operates 125 retail outlets in Southern Africa, comprising 72 stores in Botswana, 35 stores in South Africa and 18 stores in Zimbabwe. Through the listing, Choppies intends to increase its footprint in South Africa, Zimbabwe, Kenya, Namibia, Tanzania and Zambia – Small World FS, the international payment services provider says it has processed £10bn in transactions since launching in 2006. The London-headquartered financial technology business now operates the third largest payout network in the world, with a global payout network of over 250,000 locations in 188 countries. This news comes after months of rapid expansion, including the extension of its digital services into 14 sending markets, as well as inking deals with the MTN Group, Africa’s largest mobile operator, and Nations Trust Bank, Sri Lanka’s fastest growing bank - Ullink, a global provider of market leading electronic trading and connectivity solutions, today announced that Kotak Institutional Equities (KIE), one of India's leading institutional brokers and a division of Kotak Securities has chosen Ullink’s UL Bridge connectivity solution. KIE has chosen UL Bridge to facilitate FIX messaging, message enrichment and order routing, to enhance its existing connectivity infrastructure. UL Bridge’s uniquely modular architecture works in conjunction with KIE’s Order Management System (OMS), allowing KIE to provide better execution services to more clients, both locally and globally - The Straits Times Index (STI) ended 35.04 points or 1.01% lower to 3424.94, taking the year-to-date performance to +1.78%. The top active stocks today were DBS, which declined 1.54%, Singtel, which declined 1.89%, OCBC Bank, which declined 0.67%, UOB, which declined 1.62% and Ascendas-hTrust, with a 1.43% advance. The FTSE ST Mid Cap Index declined 0.35%, while the FTSE ST Small Cap Index declined 0.06%. The outperforming sectors today were represented by the FTSE ST Health Care Index, which rose 0.26%. The two biggest stocks of the Index - Raffles Medical Group and Tianjin Zhongxin Pharmaceutical Group Corporation- ended 0.46% lower and 3.48% higher respectively. The underperforming sector was the FTSE ST Telecommunications Index, which slipped 1.81%. Singtel shares declined 1.89% and StarHub declined 0.50%.

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The European Review

By Patrick Artus, chief economist at Natixis

Countries’ attractiveness measured by business investment

Friday, 08 June 2012 Written by 
Countries’ attractiveness measured by business investment Countries’ attractiveness for companies can be measured indirectly, by looking at trends in cost-competitiveness, export market shares, production capacity and employment. But it can also be measured directly by looking at business investment: what proportion of investment by a country’s companies is carried out in that country or abroad? How much is invested by foreign companies in that country? We compare the United States, the United Kingdom, Germany, France, Spain, Italy, Sweden and Japan. The two measures of attractiveness rank the countries quite differently. If we measure attractiveness by business investment, the two most attractive countries are the United States and the United Kingdom, the two least attractive countries Italy and France. http://www.ftseglobalmarkets.com/

Countries’ attractiveness for companies can be measured indirectly, by looking at trends in cost-competitiveness, export market shares, production capacity and employment. But it can also be measured directly by looking at business investment: what proportion of investment by a country’s companies is carried out in that country or abroad? How much is invested by foreign companies in that country? We compare the United States, the United Kingdom, Germany, France, Spain, Italy, Sweden and Japan.

The two measures of attractiveness rank the countries quite differently. If we measure attractiveness by business investment, the two most attractive countries are the United States and the United Kingdom, the two least attractive countries Italy and France.

Countries’ attractiveness for setting up business

Attractiveness depends on cost-competitiveness, the tax system, the skill level of the labour force, corporate profitability, public infrastructure, etc. So it is a multi-faceted and complex variable.



It can be measured indirectly, by:

  • cost-competitiveness, in light of the trend in exchange rates measured by the real trade-weighted exchange rate. Currently the currencies of the United Kingdom, Italy and Spain are overvalued in real terms;
  • export market shares, in which losses have been very marked in Japan, the United Kingdom, France and Italy;
  • the trend in potential GDP and in production capacity in industry. Potential GDP has grown significantly in the United States, while production capacity has stagnated in the United Kingdom, Japan, Spain and Italy;
  • growth in employment excluding the civil service, which has been the most vigorous in Spain and the weakest in Japan.

If we use these criteria, the most attractive countries for companies are the United States, Sweden, Germany, Spain and France, while the least attractive are the United Kingdom, Italy and Japan.

Attractiveness measured by investment

However, for each country we also look at two direct measures of attractiveness for companies:

  • the proportion of the country’s business investment that is carried out in that country and not abroad. This proportion is low in Sweden, France, Spain and the United Kingdom;
  • the share of investment by foreign companies in GDP. This proportion is high in Sweden, the United Kingdom and Spain.

According to this investment criterion of attractiveness, the most attractive countries are the United States, the United Kingdom, Spain; the least attractive are France and Italy.

Which are the most attractive countries among the large OECD countries?

When you summarise both the indirect and the direct approaches, you realize that the United States tops the ranking, while France and Italy are found at the bottom.

Patrick Artus

A graduate of Ecole Polytechnique, of Ecole Nationale de la Statistique et de l'Adminstration Economique and of Institut d'Etudes Politiques de Paris, Patrick Artus is today the Chief Economist at Natixis. He began his career in 1975 where his work included economic forecasting and modelisation. He then worked at the Economics Department of the OECD (1980), before becoming Head of Research at the ENSAE. Thereafter, Patrick taught seminars on research at Paris Dauphine (1982) and was Professor at a number of Universities (including Dauphine, ENSAE, Centre des Hautes Etudes de l'Armement, Ecole Nationale des Ponts et Chaussées and HEC Lausanne).

Patrick is now Professor of Economics at University Paris I Panthéon-Sorbonne. He combines these responsibilities with his research work at Natixis. Patrick was awarded "Best Economist of the year 1996" by the "Nouvel Economiste", and today is a member of the council of economic advisors to the French Prime Minister. He is also a board member at Total and Ipsos.

Website: cib.natixis.com/research/economic.aspx

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