According to Morgan Stanley, the current bear market cycle for emerging and Asian stocks is almost over. This is due to the areas’ above-average losses and competitive valuations.

The investment bank’s strategists, including Jonathan Garner, wrote in a note that there is a strong likelihood that a bottom will form in these markets amid “abundant” signs of capitulation. They also stated that they are changing their recommendations for stocks in emerging markets and Asia outside of Japan from equal weight to overweight.

The reevaluation by Jonathan Garner, who correctly forecasted increasing routs in developing and China markets earlier this year, came at a time when EM equities were experiencing a record stretch since their previous top due to a rising currency and China’s harsh COVID regulations.

Jonathan Garner and his colleagues noted, “A lot of wood has been chopped, and it’s time to sow seedlings for the next cycle.”

Accordingly, they recommended that investors “rotate towards proven early-cycle beneficiaries” and upgraded Korea, Taiwan, the semiconductor industry, and the IT hardware sector to “overweight.”

According to the paper, there is a high possibility that a trough will emerge for EM and Asian equities, marking a “compelling” buying opportunity, according to a framework of ten signposts that Morgan Stanley analyses to detect market inflection moments.

Given that both markets have significantly underperformed this year and the semiconductor inventory cycle is about to turn, Morgan Stanley stated that South Korea and Taiwan have the “highest conviction chances in a new cycle.”

The investment bank upgraded many other equities in separate reports, including competitor Taiwanese company AUO Corp. and suppliers LG Display Co. and SK Hynix Inc. of Korea. Its top options are Taiwan Semiconductor Manufacturing Co.

To finance the upgrades of Asia’s tech-heavy markets, Morgan Stanley revised its assessments of some of this year’s top performers, demoting Indonesia and Singapore to equal weight and downgrading India to underweight.

According to Morgan Stanley, the MSCI EM benchmark, which has dropped 26% this year, is expected to rise approximately 12% from now until June.

The post Morgan Stanley’s bold prediction for emerging markets and Asian stocks appeared first on International Finance.

Surveys showed that factory activity rebounded in China in June. However, a slowdown in South Korea and Japan, with a contraction in Taiwan, is a symptom of material shortage due to supply disruptions and soaring inflation.

China has relaxed its stringent lockdowns and relieved its economy, struggling under draconian start-stop policies. Manufacturers scrambled to meet pent-up demand, which was at its highest in 13 months in June.

However, analysts fear hikes in US interest rates to curb inflation will toss the country into recession and cut down global demand.

Financial markets have suffered because governments are tightening their fiscal policy due to a sharp rise in inflation, suffocating consumers.

The final au Jibun Bank’s Japan Manufacturing PMI (purchasing managers’ index) fell from 53.3 in June to 52.7 within a month, staying above the 50-mark separating expansion and contraction.

S.Korea’s S&P Global PMI fell from 51.8 in May to 51.3 in June, dropping consecutively due to supply constraints and a truckers’ strike.

Taiwan’s S&P global PMI fell below the 50-mark. It officially contracted when it slipped to

49.8 in June. The index stood at 50.0 in May, while Vietnam slumped to 54.0 in June from 54.7 in May.

However, on a positive note, China’s Caixin/ Markit manufacturing PMI jumped from 48.1 in May to 51.7 in June and is officially expanding.

The post Global recession fears peak as Asia’s manufacturing slows appeared first on International Finance.

Kakao has established two new blockchain-based entities-the Klaytn Foundation and Krust in Singapore.

In this regard, the Klaytn Foundation said, “We will expand the Klaytn World – more proactively and systematically. We will actively invest our human as well as financial resources in developers and businesses of the blockchain world to accelerate the growth of our ecosystem and the development of our technology.”

Kakao has set up a $300 million war chest called the Klaytn Growth Fund, which will be used extensively to invest in startups starting later this year with the fund to globally expand Klaytn ecosystem.

According to the ‘State of Crypto in Singapore Report 2021’ by crypto exchange Gemini in partnership with CoinMarketCap and Seedly, Ethereum is more popular among Singaporeans than bitcoin.

The report took into account the views of 4,348 Singaporeans who self-identify as having or being interested in personal finance and investment products, shows that 67 percent of the respondents currently own crypto assets.

While Ethereum emerged as the most popular crypto with nearly 78 percent of the respondents holding the currency, around 67 percent of them have invested in bitcoin.
The report further revealed that the Covid-19 pandemic has led to a spike in interest in cryptocurrencies among many Singaporeans.

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It is reported that the company seeks to transform its shipyard at Geoje into a smart shipyard. In addition, it is planning to transfer the technical knowledge on this from Korea to Nigeria to facilitate smart shipping in the country.

Managing Director of Samsung Heavy Industries Nigeria Jejin Jeon, said in a statement, “Samsung Heavy Industries has identified Nigeria and the West Africa region as an emerging market with an abundance of opportunity. Our investment in West Africa is a long term one, rooted in helping develop local human capacity by leveraging our fabrication and integration yard to the benefit of the entire West African maritime industry.”

The company has identified Nigeria and West Africa as emerging markets with growth potential. Its research is underway at both offshore and onshore centres across Korea, media reports said. Smart shipping will benefit Nigerians and the country’s port sectors on many levels. For example, it will provide advanced training for the youth in term of smart working, an important factor across all industries.

Also, the technologies will lower cost of operations, increase safety and uplift the shipbuilding industry in Nigeria.

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Vietnam-Korea Businessmen and Investment Association was established in September 2019, with an aim to connect Korean businesses and investors with the Vietnamese market, especially in banking and finance. The association targets a $100 billion bilateral trade between both countries in 2020. 

Bao Viet Securities is the first securities firm in Vietnam and a member of the insurance, investment, finance and banking group, Bao Viet Holdings. It is currently ranked among the top 10 companies holding the largest market shares in Vietnam stock market.

Bao Viet Securities’ cooperation with Vietnam-Korea Businessmen Investment Association is in line with its strategic expansion into a highly financial market like Korea. This cooperation also creates a foundation for business and investment opportunities for the business community in both Vietnam and South Korea. 

Bao Viet Securities also signed a Memorandum of Understanding with MHGroup on the same day. MHGroup provides consulting and training services in finance, banking, securities and auditing. In turn, the cooperation is expected to open up new opportunities for both parties and promote professional consultancy finance, banking and securities.

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According to reports from the Korean Ministry of land, Infrastructure and transport, the Korea-UAE aviation talks on the South Korea UAE flights were held in Abu Dhabi on August 7 and August 8.

The number of flights operating between South and Korea UAE on the UAE-Incheon route is currently low compared to the traffic. At present, Dubai based Emirates and Abu Dhabi based Etihad operate in the route seven times a week respectively.

Meanwhile, Korean Air is the only Korean based airline operating on the route. The airline has seven flights a week in the Incheon-UAE route. Korean Air can only accommodate 218 passengers.  UAE, on the other hand has a number of airbuses with a much higher number of passenger accommodation capacity.

Etihad and Emirates also have the capability to provide services at a cheaper cost as they are backed by government subsidies. The comparison between the cost and facilities, prompt the passengers to opt for the Middle Eastern airlines, causing loss to the Korean aviation industry.

According to statistics, in 2018, 72 percent of Emirates passengers and 63 percent of Etihad passengers travelled to Europe. The increase in the number of passengers to Europe has instilled a fear in the Korean aviation sector.

The Korean authorities feel that if the number of flights on the UAE-Incheon route are increased, people would prefer Middle Eastern airlines to travel to Europe and Africa, which would directly affect Korean Air, as the number of its passengers would fall.

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So, does President Donald Trump have an ulterior motive in scrapping the treaty? And what are the chances of Putin and Trump re-negotiating a deal within the six-month window? The effects of these questions are priceless to debate on—and they largely speak of Trump’s miscarried attempts on international affairs.

Demystifying Trump’s negotiation techniques

First, it is utmost important to understand Trump’s negotiation techniques since the time of his Presidentship. So far, his persistent problems with China, North Korea, Russia, and the majority of Europe is quite evident. Implying a nuclear war could be possible with North Korea because of his successive outbursts, such as “My [nuclear weapon] button is bigger than yours” and calling leader, Kim Jong Un a “little rocket man” we know that Trump has an aggressive form of negotiating.

In fact, it’s a well-trodden technique known as the ‘mad man’ approach, also used by President Nixon in the 1960’s and 1970’s, which is aimed at emphasising (or over-emphasising in this context) an initial stance, to help pave the way for a lesser, but related, demand.

And is it effective? That depends on where you sit politically, but, in the case of North Korea, it has arguably helped him to become the first US President to meet the country’s head of state.

A new treaty?

Trump’s threat that if a new treaty isn’t negotiated, America will out spend and out innovate other countries is arguably designed to frighten Russia and other countries, like China, into negotiating a new treaty before the six-month withdrawal period. Whether he intends to carry out his threat or not, this stands as a classic case of leverage—or an implied leverage—aimed at giving Trump one upmanship with him having to necessarily follow through.

Following this thought if Trump’s main aim is to open talks with Russia and China to create a new treaty that all countries will abide to—and result in a series of consequences if disturbed—then we can expect to see America bring  great incentives to the table in the interest of all parties. This could include a shared security intelligence or even an allied relationship.

Keys to a successful negotiation

Just like many of his manoeuvres, this approach is undoubtedly risky, especially when dealing with a similar ‘strong man’ counterpart like Putin. In business—and in the wider political sense—effective negotiation is about reaching a  compromise and securing a win-win for both parties. However with Russia refusing to stop its missiles manufacture, it doesn’t exactly lay the most productive foundations for negotiation.

To effectively move forward the key thing would be for both Trump and Putin to reconsider their approach toward negotiation and head back to the original treaty as a starting point. It is vital to ensure that their language and verbal behaviour from here on remains nuanced, open and flexible in order to create a positive climate for a successful negotiation. Trump, in particular, should be acutely aware that Russia can be expected to play ‘dirty negotiation tricks’ from the beginning, such as in delaying negotiation talks until the very end of the treaty—so America would be more willing to concede on points with a looming deadline.

Trump’s next steps

Trump has said that America is willing to negotiate a new treaty. With this, the next step is to get Russia and other major countries, like China, to the table swiftly. There is only six months left until the current treaty will be abandoned and both countries will make weapons with no consequences. This calls for an urgency talk to prevent a global arms race. To be able to implement a new treaty in time, the next few weeks will be vital—in terms of offering insights into what the other countries’ stances might be while considering a new treaty. More importantly, this could encourage Trump to increase pressure on countries by effectively selling the benefits of joining a treaty and promoting the consequences of not having one in place.

This will be a new development, considering Trump will have to remain reserved on many accounts. These negotiations will be built on a diplomatic and strategic approach. Whether this will happen or not—only time will tell—but for Trump and the global politics, the repercussions of getting it wrong could be devastating.

The post Will Trump save The Nuclear Treaty? appeared first on International Finance.

MAP Life is a harmonious combination of Mirae Asset Life which is a member of Korea-based Mirae Asset Financial Group—a leading independent financial services group in Korea, and Prévoir, a French independent insurance group with a rich heritage of over 108 years of serving the investment and protection needs of individuals and families worldwide.

With the joining of Mirae Asset Life, 2018 marked a significant milestone for MAP Life in Vietnam: Prévoir Vietnam changed the name of its life insurance to Mirae Asset Prévoir (“MAP Life”) in the country. MAP Life is the unique to the life insurance industry, where the transaction is done between two FDI partners and the only insurer named among “Top 10 Best M&A Deals 2017-2018.”  Although, the brand name has changed, its commitment remains the same: to provide customers, business partners, employees and other stakeholders with superior products and services that both Prévoir and Mirae Asset Life have developed over the years.

Having over 14 years of experience operating in Vietnam, the company (now known as MAP Life) is focusing on developing in-depth understanding of customers’ needs, building a strong base for financial soundness, and strengthening diversified distribution channels with an aim to provide local customers with increasing value propositions. So far, the company is proud to be among a few life insurers in Vietnam which has remained profitable in the past 3 years.

Since inception, MAP Life has been adopting a uniquely novel business model that best utilises strategic partners. Up to now, MAP Life has expanded its partnership to include local and foreign financial institutions on the basis of a win-win cooperation, meaning customers, partners, and MAP Life win.

Expectations in life insurance market—Top 5 in 2017-2021

In the middle of 2017, MAP Life focused on developing its sales forces, expanding over 10 new sale offices across the country besides the bancassurance partnership with the leading commercial banks and exclusive distribution agreement with National Citizen Bank. With strong support from both Prévoir and Mirae Asset Life, and their valuable experience, MAP Life is executing its strategy for rapid and sustainable growth. In 2018, MAP Life continued to successfully expand its partnership with financial institutions including Mirae Asset Finance Company and F88 Business JSC.

“We have been increasing investment, consolidating and upgrading infrastructure to serve the customers, continuing to develop distribution channels and diversify the product portfolios. Continuing to expand sales offices in provinces and cities apart from forging the strategic partnership in bancassurance and financial institutions” Chairman and CEO of MAP Life Mr. Khamsaya Soukhavong said.

MAP Life is currently one of the leaders in the Vietnamese life insurance market in terms of new policies issued per year. As of December 2018, being the top 5 in terms of profitability in life insurance market and a solvency margin up to 2,000%, MAP Life has a solid foundation and financial strength to ensure its long-term commitments to its clients and to the Vietnamese market, working toward its mission: “providing one-stop shop for fulfilling customers’ lifestyle aspiration.”

With the strong contribution to the life market, MAP Life is honoured to receive local and international awards in 2018 such as Golden Dragon 2017-2018, Top 10 Most reputable 2017-2018, Top 100 Best products, services for families and children, and The fastest growing partnership life insurance company 2018 awarded by International Finance Magazine, UK.

Map Life continues to pursue its initial strategy in an effort to maintain a sustainable growth through its ambition to be among the top 5 best insurance companies in the coming years.

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The members of the Security Council strongly condemned these launches, condemned further the Democratic People’s Republic of Korea for its outrageous actions, and demanded that the Democratic People’s Republic of Korea immediately cease all such actions.  The Security Council expressed its grave concern that the Democratic People’s Republic of Korea is, by conducting such a launch over Japan, as well as its recent actions and public statements, deliberately undermining regional peace and stability and have caused grave security concerns around the world.  The Security Council stressed that these Democratic People’s Republic of Korea actions are not just a threat to the region, but to all United Nations Member States.

The Security Council stressed, therefore, that all Member States must fully, comprehensively, and immediately implement all relevant Security Council resolutions, in particular resolution 2375 (2017) and 2371 (2017).  The Security Council also emphasized the vital importance of the Democratic People’s Republic of Korea immediately showing sincere commitment to denuclearization through concrete action and stressed the importance of working to reduce tensions in the Korean Peninsula and beyond.

The Security Council demanded that the Democratic People’s Republic of Korea comply with resolutions 1695 (2006), 1718 (2006), 1874 (2009), 2087 (2013), 2094 (2013), 2270 (2016), 2321 (2016), 2356 (2017), 2371 (2017) and 2375 (2017), as well as the statements of its President of 6 October 2006 (S/PRST/2006/41), 13 April 2009 (S/PRST/2009/7), 16 April 2012 (S/PRST/2012/13) and 29 August 2017 (S/PRST/2017/16) by suspending all activities related to its ballistic missile programme, and in this context, re-establish its pre-existing commitments to a moratorium on missile launches.

The Security Council reiterates the importance of maintaining peace and stability on the Korean Peninsula and in North-East Asia at large, expresses its commitment to a peaceful, diplomatic and political solution to the situation, and welcomes efforts by Council members, as well as other States, to facilitate a peaceful and comprehensive solution through dialogue.

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March 10, 2016

Congratulations on winning International Finance Magazine’s ‘Best International Advisory Company – EAST ASIA’ award.

Thank you. It’s an honour to receive it. This award – our seventh in as many months – is a reflection of the unbridled energy and commitment of our deVere Group teams in Hong Kong, China (Shanghai), Japan (Tokyo) and throughout the East Asia Region. The award showcases the dedication to providing our clients with a result-focused service.

Tell us more about deVere’s operations within East Asia. East Asia is a very important market for us for three important reasons. First, this region is where you’ll find some of the world’s biggest and most influential financial hubs, including Hong Kong, Shanghai and Tokyo. Clearly, as one of the world’s largest independent financial advisory organisations, we need to have a presence in these territories. Second, these dynamic, global financial centrzes are home to and are constantly attracting more expatriates and international investors. We’re widely recognised as the leading cross-border financial specialists and the vast majority of our 80,000-plus clients fit into these two groups.

Nigel Green, CEO, deVere Group

Third, there is an enormous growth potential for the financial advisory companies across East Asia. There are, for instance, cities in China that are amongst some of the most highly-populated in the world. So, there’s a huge demand for financial advice, yet most international firms don’t yet have a presence outside the main capitals. Plus, as the population of East Asia becomes more affluent and as the middle class grows, the opportunity for businesses like ours to grow is massive.

Does this mean that you have plans to expand across East Asia?

Yes, demand for our specialist advice is increasing within all the areas in which we currently operate [Hong Kong, Shanghai and Tokyo] and also outside these cities too, in places such as South Korea. As such we plan to meet this soaring client-driven demand with a careful, controlled, strategic growth across this region and on a more global level too.

What sets deVere apart from other firms within the international financial industry?

There are several key distinguishing factors. First is our truly global presence. We currently do business in more than 100 countries. If you’re an expat or an international investor, you are, typically, more likely to have a transient lifestyle. Indeed, 25 per cent of all expats move to a different city or country each year.

These people need and expect a continuity of service and advice. As we have a global network of 71 offices, located in most of the major expat destinations, such as Dubai, Abu Dhabi, Geneva, New York, London, Hong Kong, Cape Town, Doha and Sydney, deVere is uniquely placed to take care of them wherever they are now and wherever they’re likely to be in the future.

Second is our well-established alliances with the world’s most respected financial institutions. This means we have an unrivalled suite of products, many of which are exclusive to deVere clients, to help them achieve their long-term financial goals.

And third, we are always looking at ways to stay ahead and innovate for our clients. It’s in our DNA.

What is your ambition for deVere?

I’ve said before that I would like deVere to be the British equivalent of Bank of America Merrill Lynch.

That’s a big ambition. How will you achieve this?

By remaining true to our core strategy: to continue to put our clients at the heart of everything we do.

What will the next five years hold for the international financial services industry?

The international financial services industry is going to be defined by its unprecedented growth over the next five years. Ongoing and increasing client demand will be the key driver of the sector’s expansion. As people and companies become ever more globalised, the need for professional cross-border financial advice is set to skyrocket.

Other important factors that will help shape the next half decade will be a growing reliance on technology and social media in how we interact and communicate with clients.

What will be the major challenges for the sector?

Challenges include shifting regulatory landscapes and developing client expectations. That said, we embrace challenges as they force you to grow, to evolve and become even better.

What about challenges for your clients for this year and beyond?

As has been much-publicised of late, the markets are currently volatile.  But investors should be using this to their financial advantage.

There are two key reasons why they should be building up their portfolios now, in these more volatile times, in order to grow their wealth.

The first point is regarding the long-term benefits. No one can accurately predict when the markets will finally reach the bottom – it could be a month, it could be six months, who knows. But what we do know is that over the longer term, the performance of stock markets is fairly predictable: they go up. Indeed, for this reason, over a longer time horizon, investing in equities is almost universally recognised as one of the best ways people can accumulate wealth.

By not topping up and diversifying portfolios now, investors are pushing back the longer-term benefits they could be starting to reap. Why forsake the long-term gains that would be generated on money invested now?

The second, the buying opportunities. The see-sawing markets are a chance for investors to put new money into markets at lower prices. A slump in the market means that there are high quality equities available at more attractive prices.

Of course, no one knows for sure what will happen in the immediate future but, as stock markets typically rise over a longer-term period, now is the time to capitalise on the more favourable prices of decent stocks.

What’s next for deVere Group?

I recently joked whilst being interviewed at the London Stock Exchange that we want world domination. But I was only HALF joking!

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