Insights

Investment Insights by our experts and thought leaders

Japan's "Show Me the Money" Corporate Governance - September 2015

We explain how Abenomics is the "icing on the cake" of corporate governance improvement over the last decade.

Is A Global Recession Approaching?

Despite this evidence of a new global malaise, there are still those that continue to expect the US economy to “ride to the rescue” over the next few months.

Fintech Evolution in China

The internet revolution is coming to the financial sector, addressing inefficiencies in current system and business models. In China’s case we are witnessing a combination of financial liberalisation with an internet revolution in the financial sector.

US rate rises unlikely to have significant impact on 10-year Treasuries

Even though the current term premium on US Treasuries seems too low, it is unlikely to rise significantly unless offshore bond yields start to rise.

Economic Disappointment in Japan? Key points to remember (again)

As has long been our view, disappointing economic data should not worry investors in Japanese risk assets very much at all.

Why did China devalue the renminbi?

While RMB weakness will likely persist for a few months, we don't expect the currency to devalue more than 10% versus USD and we maintain our confidence that the currency will be included into the IMF SDR basket in a year from now.

Abe administration's 2015-version growth strategy: Focus on productivity

We will be watching to see how companies respond this year to the Corporate Governance Code, specifically the twin issues of selling cross-shareholdings and improving capital efficiency.

Soundbites: Our Summary of a Complex World

Without a doubt, we find the current state of the global economy more complex than perhaps at any other time in our 25 years of experience.

India: Our Debate on Key Issues

India is a key market to watch in the coming years. Our expert on India, Andrew Holland, CEO of Nikko AM's joint venture there, discusses with Simon Down of our UK fixed income team the forecast for reforms in the country, with some surprising conclusions.

Iron Ore: Supply has arrived but where is the demand?

What lies ahead for iron ore prices, particularly with the Chinese economy slowing and undergoing a transition away from a materials-intensive economy to a consumption-driven economy?

Greece: the Potential Victory from this Defeat

Like many countries that have previously refused to reform at all levels, sometimes it takes a true crisis to change.

Views on the China equity market selloff – from an Asian Fixed Income perspective

The sharp equity market correction in recent weeks after a very strong run over the past year will not have a crisis-level impact to the broader economy.

The Implications of the RMB Inclusion in the IMF SDR

The IMF has been supportive of China's attempt to be included, but has not indicated that it recommends it. Furthermore, there is a risk that most of these reforms are too new for the IMF to judge whether they are effective or sustainable.

China: Now and tomorrow

Nikko AM Asia views the recent corrections in Chinese equities, particularly in the onshore markets, as healthy given the sharp increases in value that had occurred due to a frenzied retail market intoxicated by relatively cheap margin financing.

Greek referendum will cause short-term volatility but unlikely to have long-term global market impact

We expect short-term volatility but the threat of financial contagion via the banking system in Europe is much lower than in 2011/12 and we’re unlikely to see a severe longer-term impact on global markets.

Commodity Producers Face A Difficult Year

One of the key features of the global economy – and particularly of the “Pacific Rim economies” – that has most concerned us over recent months has been the immensely weak investment spending trends that are starting to appear across Asia. We firmly believe that this weakness in capital spending ...

G-3 Economies Should Continue Rebounding

We believe the global economy should be quite firm for the next year, but not so strong as to cause inflation concerns.

Central Banks: Our Logic For Fed Hiking Three Times This Year

We have a non-consensus, but completely sound call for a more aggressive Fed, whereas we expect the ECB and BOJ to maintain their current aggressive easing program.

Forecasts for Stronger USD and Moderately Rising Global Yields

Despite good global economic growth, other commodity prices will likely remain quite flat in our view, partially due to a stronger USD.

Asset Class Forecasts: Maintain Overweight Global Equities

We calculate that equity valuations are at fair levels and that stocks can grow along with earnings.