Vestifinance.ru: Pessimism came over big investors
06.10.2017,
11:20
Institutional investors are extremely pessimistic about economic and political prospects all over the world, Vestifinance.ru reported Friday referring to a survey conducted by Edelman.
YEREVAN, October 6. /ARKA/. Institutional investors are extremely pessimistic about economic and political prospects all over the world, Vestifinance.ru reports referring to a survey conducted by Edelman.
About 72% of 101 respondents from 14 countries think that political factors will be neutral or adverse for investments throughout the next year.
Respondents think that things were more positive in the previous 12 years.
Despite the economic growth recorded in the majority of developed countries, political landscape has changed.
The U.S. administration has run afoul with its old allies and old rivals, such as North Korea, since Donald Trump was elected as president in November.
Although the European Union looks stable, tension here started escalating after the Catalonia independence referendum in addition to the Great Britain withdrawal from it.
Even Angela Merkel’s government in Germany, sometimes considered as anchor for the union of 27 members, has been undermined by a sharp support of the country’s center-right anti-immigrant party.
Large investors are concerned about the fact that the companies in which they invest are not ready to cope with the appearing political risks, according to Lex Suvanto, Global Managing Director of Financial Communications and Capital Markets at Edelman.
Almost 50% of the respondents think that heads of companies underestimate the current political uncertainty.
Suvanto says that amid the growing political shocks, many large financial managers expect that companies will take a public stance on social issues.
Education, environment and free trade are topping the list of social problems, on which, as investors expect, companies will concentrate their attention.
Public political speeches may become risky for business leaders if they are in opposition to strong officials – business leaders dismissed their consulting groups in the White House in a protest to Trump’s disability to condemn racism.
They were also unhappy about the president’s decision to quit the Paris Climate Change Agreement. --0---
About 72% of 101 respondents from 14 countries think that political factors will be neutral or adverse for investments throughout the next year.
Respondents think that things were more positive in the previous 12 years.
Despite the economic growth recorded in the majority of developed countries, political landscape has changed.
The U.S. administration has run afoul with its old allies and old rivals, such as North Korea, since Donald Trump was elected as president in November.
Although the European Union looks stable, tension here started escalating after the Catalonia independence referendum in addition to the Great Britain withdrawal from it.
Even Angela Merkel’s government in Germany, sometimes considered as anchor for the union of 27 members, has been undermined by a sharp support of the country’s center-right anti-immigrant party.
Large investors are concerned about the fact that the companies in which they invest are not ready to cope with the appearing political risks, according to Lex Suvanto, Global Managing Director of Financial Communications and Capital Markets at Edelman.
Almost 50% of the respondents think that heads of companies underestimate the current political uncertainty.
Suvanto says that amid the growing political shocks, many large financial managers expect that companies will take a public stance on social issues.
Education, environment and free trade are topping the list of social problems, on which, as investors expect, companies will concentrate their attention.
Public political speeches may become risky for business leaders if they are in opposition to strong officials – business leaders dismissed their consulting groups in the White House in a protest to Trump’s disability to condemn racism.
They were also unhappy about the president’s decision to quit the Paris Climate Change Agreement. --0---
