AMERICAS MUTUAL FUNDS MARKET

AMERICAS: MARCH 2008 - The use of sub-advisers by US mutual funds is on the increase.

The use of sub-advisers by US mutual funds enables them to utilise knowledge and expertise in geographic areas and asset classes without the expense or time lapse involved in acquisition or building it in-house. This is despite the fact that the sub-adviser will receive approximately 50% of the management fee.

Lipper have reported that assets held in sub-advised funds in the United States increased to $641 bn in 2007 from $261 bn in 2002. Financial Research Corp. analysts forecast that over the next five years assets in sub-advised funds will grow at a...more

ASIA MOBILE PHONES MARKET

ASIA: MARCH 2008 - Significant reduction in carbon emissions through increased use of telecoms?

Telstra commissioned Climate Risk to produce the study Towards a High-Bandwidth, Low-Carbon Future: Telecommunications-based Opportunities to Reduce Greenhouse Gas Emissions.

The report analyses the opportunities for Australia to reduce carbon emissions through increased usage of their telecommunications network. It estimates that the potential to reduce carbon emissions by 4.9% by 2015 exists through these means. However, the full benefits cannot be realised until the roll-out of a national fibre optic network to residential and commercial consumers.

The report's authors identify seven carbon opportunities that could deliver total per annum emission savings of 27.2 million tonnes. These opportunities are remote management of power for appliances not in use or on "stand-by"; improving business productivity with "in-person" high-definition videoconferencing; through the use of broadband based, real-time....more

EUROPEAN CONSUMER BORROWING MARKET

EUROPE: MARCH 2008 - The rate of growth in unsecured lending slows whilst pawnbroking grows.

By June 2007 the total indebtedness of the UK had reached over £1.3 trillion which compares to UK wealth which, including property, is estimated by PwC to exceed £6 trillion. The Bank of England noted in its 2007 Inflation Reports that the ratio of household debt to annual income has risen by around a half since the start of the decade to 160% in the first quarter of 2007.

Secured lending (primarily mortgage lending) had a growth rate of 11.3% during the year to June 2007 whilst growth in unsecured lending fell to 1.1%. Secured debt accounted for around 84% of total outstanding debt.

PwC believe that the recent significant....more

EUROPEAN MOTOR VEHICLES MARKET

EUROPE: MARCH 2008 - European motor vehicle manufacturing landscape changes.

The European Automobile Manufacturers Association have calculated that, in total, there are more than 250 automobile manufacturing plants in Europe, directly employing 2.3 million Europeans and indirectly supporting a further 10 million jobs in related sectors. These plants produce more than 18.5 million vehicles each year.

Roughly 170 plants are operated by 14 major manufacturers who between them produce 90% of Europe's vehicles; the remaining European plants are operated by smaller, specialist or Japanese manufacturers.

Based on 2004 figures Germany, with 36, has the most plants, followed by the UK (32), Italy (29) and France (25). In Central and Eastern Europe, manufacture is concentrated in Poland, the Czech Republic and Russia, each with more than 10 plants.

The competitive landscape will be altered by two announcements....more

RUSSIA LIFE INSURANCE MARKET

EUROPE: MARCH 2008 - Russian insurance industry interests foreign investors.

Mergers and acquisitions activity in the Russian financial services sector has been strong since the beginning of 2006 and this trend is expected to continue through to the middle of 2008 according to a survey conducted by mergermarket for PwC. However, obstacles to concluding deals were found and included the lack of transparency, a lack of suitable targets and competition for the most attractive targets.

46% of respondents believed that the retail banking sector would be the most active whereas only 14% believed that the life insurance sector would be. However, a PwC spokesman was more positive stating that the Russian insurance market, because of its low capitalisation and high growth rate, would remain very attractive for foreign investors.

German, French and Italian companies are expected to have the most interest in acquiring in Russia. Most domestic respondents favour the presence of foreign investors because they provide easier...more