Poland risks alienating foreign investors

2022 ◽  
Keyword(s):  
Foreign Investors ◽  
Content Type

Headline POLAND: Warsaw risks alienating foreign investors

Bulk and block holders herding behaviour

2018 ◽  
Vol 7 (2) ◽  
pp. 150-171
Author(s):  
Ganesh R. ◽  
Naresh Gopal ◽  
Thiyagarajan S.
Keyword(s):  
Economic Performance ◽  
Institutional Investors ◽  
Design Methodology ◽  
Indian Market ◽  
Foreign Investors ◽  
Content Type ◽  
Industrial Sectors ◽  
Block Data ◽  
Block Holders

Purpose The purpose of this paper is to examine industry herding among the institutional investors and to find whether their herding behaviour is intentional or unintentional. Design/methodology/approach The study uses Lakonishok et al. (1992) model to examine the presence of industry herding behaviour among institutional investors. To determine whether the herding observed is intentional or unintentional, herding measure is regressed with volatility, volume, beta and return. The period of the study is from 1 April 2005-31 March 2015. Findings The findings of the study showed that though institutional investors have herding tendency towards most of the industries, in the overall period industry herding was not significant. The herding found in some industrial sectors was linked to economic performance of those sectors in India during the period of study and hence the herding was unintentional in nature. Research limitations/implications This is the first attempt to study industry herding among institutional investors and their intent in Indian market ever since the country opened its market to foreign investors in a big way. Present study is limited to the use of only bulk/block data instead of the entire trading data for the period. Originality/value This study is the first attempt to investigate industry herding behaviour of institutional investors in the market using their bulk and block trading data. The herding observed in well performing industries has been shown to be unintentional and hence rational. The results indicate that the entry of big institutional investors, including foreign institutions into the Indian market has not destabilised the market by irrational herding.

Investor-State dispute settlement (ISDS) cases and India: affronting regulatory autonomy or indicting capricious state behaviour?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Prabhash Ranjan
Keyword(s):  
Public Interest ◽  
Dispute Settlement ◽  
Due Process ◽  
International Investment ◽  
Public Power ◽  
Foreign Investors ◽  
Content Type ◽  
International Investment Law ◽  
Global Context ◽  
State Behaviour

Purpose The dominant narrative in the investor-State dispute settlement (ISDS) system is that it enables powerful corporations to encroach upon the regulatory power of developing countries aimed at pursuing compelling public interest objectives. The example of Phillip Morris, the tobacco giant, suing Uruguay’s public health measures is cited as the most significant example to prove this thesis. The other side of the story that States abuse their public power to undermine the protected rights of foreign investors does not get much attention. Design/methodology/approach This paper reviews all the ISDS cases that India has lost to ascertain the reason why these claims were brought against India in the first place. The approach of the paper is to study these ISDS cases to find out whether these cases arose due to abuse of the State’s public power or affronted India’s regulatory autonomy. Findings Against this global context, this paper studies the ISDS claims brought against India, one of the highest respondent-State in ISDS, to show that they arose due to India’s capricious behaviour. Analysis of these cases reveals that India acted in bad faith and abused its public power by either amending laws retroactively or by scrapping licences without following due process or going back on specific and written assurances that induced investors to invest. In none of these cases, the foreign investors challenged India’s regulatory measures aimed at advancing the genuine public interest. The absence of a “Phillip Morris moment” in India’s ISDS story is a stark reminder that one should give due weight to the equally compelling narrative that ISDS claims are also a result of abuse of public power by States. Originality/value The originality value of this paper arises from the fact that this is the first comprehensive study of ISDS cases brought against India and provides full documentation within the larger global context of rising ISDS cases. The paper contributes to the debate on international investment law by showing that in the case of India most of the ISDS cases brought were due to India abusing its public power and was not an affront on India’s regulatory autonomy.

Domestic matters will determine Mexican foreign policy

2021 ◽  
Keyword(s):  
Foreign Policy ◽  
Energy Policy ◽  
Latin American ◽  
Public Support ◽  
Critical Rhetoric ◽  
Short Term ◽  
Foreign Investors ◽  
Content Type ◽  
International Profile ◽  
Latin American And Caribbean

Significance The move follows Mexico’s hosting of a Community of Latin American and Caribbean States (CELAC) summit last month, and provides an opportunity to expand the country’s international profile. However, AMLO generally disregards foreign policy, except as a tool for advancing domestic interests and building public support. Impacts US relations will continue to dominate foreign policy, despite AMLO’s critical rhetoric about rich nations. In the short term, Mexico will frame its foreign policy around calls for increased access to COVID-19 vaccines. Mexico’s energy policy could become a source of international tension, given its potential implications for foreign investors.

New Algerian polls will not address protest demands

2021 ◽  
Keyword(s):  
Economic Reforms ◽  
Political Prisoners ◽  
Old Regime ◽  
Foreign Investors ◽  
Content Type ◽  
Protest Movement ◽  
External Borrowing

Significance Demonstrations resumed on February 22, the second anniversary of the ‘Hirak’ movement that ousted President Abdelaziz Bouteflika from office. His successor, President Abdelmadjid Tebboune, has failed to appease the protest movement. On February 21, he announced the release of political prisoners, a partial cabinet reshuffle and the dissolution of parliament in anticipation of elections, but the measures appear to have been ineffective in staving off dissent. Impacts After the elections, Tebboune might have backing for economic reforms that would open the economy to foreign investors. As reserves have fallen to USD43bn, down from USD59bn in February 2020, Algiers may have to resort to external borrowing. Members of the old regime who survived the fall of Bouteflika might decide to fight back if Tebboune challenges their interests too much.

African economies face rising risks from reshoring

2021 ◽  
Keyword(s):  
Supply Chains ◽  
Multinational Firms ◽  
Wage Differentials ◽  
Job Creation ◽  
Youth Unemployment ◽  
Foreign Investors ◽  
Content Type ◽  
Skilled Labour ◽  
Near Shore ◽  
The Cost

Significance As the need for cheap and low-skilled labour falls, wage differentials between Africa and other regions will cease to be a major draw for multinational firms and foreign investors, who may seek to re-shore or near-shore operations, triggering job losses and dampening new job creation. Impacts Job losses threaten to exacerbate youth unemployment and discontent in a continent where 70% of the population is under 30. The pandemic has increased the cost and risks of international supply chains. Africa’s tech sector will expand but its spread is regionally uneven and its impact on job creation will be limited for now.

Russia's central bank will anticipate sanction risks

2021 ◽  
Keyword(s):  
Exchange Rate ◽  
Credit Rating ◽  
Bond Market ◽  
Secondary Market ◽  
Foreseeable Future ◽  
Foreign Reserves ◽  
Foreign Investors ◽  
Content Type ◽  
Economic Fundamentals ◽  
Sovereign Credit Rating

Significance Because the risk of sanctions was priced into Russian bond prices and the ruble exchange rate, the market reaction to the measures announced on April 15 was muted. US investors can still buy and hold OFZs and Eurobonds on the secondary market, but the prospect of further restrictions are possible. Impacts Sanctions risks will weigh down Russia's sovereign credit rating for the foreseeable future. Diminished liquidity in the bond market will make it difficult to price new Russian corporate debt, particularly for new issuers. Strong economic fundamentals and high foreign reserves will encourage foreign investors to return once uncertainty subsides.

Ethiopian mobile banking begins a slow expansion phase

2015 ◽  
Keyword(s):  
Mobile Banking ◽  
African Countries ◽  
Foreign Investors ◽  
Expansion Phase ◽  
Content Type ◽  
Mobile Payments ◽  
Slow Expansion ◽  
National Bank ◽  
Roll Out

Subject Mobile banking in Ethiopia. Significance A significant increase in the roll-out of mobile banking platforms is underway. In December, the Irish-linked mobile banking platform m-Birr received regulatory approval and expects to add 13,000 users during February. The National Bank of Ethiopia's (NBE) mobile banking framework adopted in January 2013 was stymied by a 6,000-birr (295 dollar) cap on transactions and a requirement for printed receipts for transactions at branches. However, the roll-out of an agent network like m-Birr could change the sector's fortunes. Impacts Mobile payments services will spur demand for telecommunications, but strain the capacity of state monopoly Ethio Telecom. However, compared to the experience of private-sector driven processes in other African countries, take-up will grow at a modest pace. The role of foreign investors is likely to remain limited to technology provision.

New government in Guyana will face challenges

2015 ◽  
Keyword(s):  
Government Spending ◽  
Social Progress ◽  
Consensus Building ◽  
Business Climate ◽  
Foreign Investors ◽  
Content Type ◽  
Political Tension ◽  
National Congress ◽  
The Government ◽  
Progressive Party

Significance The government has changed hands only once since independence in 1966: in 1992 the People's Progressive Party (PPP), led by Cheddi Jagan, assumed power following 26 years of People's National Congress (PNC) government. Since the last election in 2011 the government has been hamstrung by a parliament in which a coalition of opposition parties, including the PNC, held a one-seat majority. The result has been gridlock, with no new legislation approved, and continuous disputes over the budget, government spending and agreements with foreign investors. Impacts The election could allow a new government to work toward consensus-building. This might facilitate policies to develop Guyana's potential, and narrow the socioeconomic gap with the rest of the region. If the result is close, political tension and deadlock will persist, undermining the business climate, investment and social progress.

Myanmar regulation reform will spur investment

2015 ◽  
Keyword(s):  
Direct Investment ◽  
Economic Reforms ◽  
Business Environment ◽  
Regulatory Environment ◽  
Business Climate ◽  
Foreign Investors ◽  
Content Type ◽  
Effective Administration ◽  
Regulation Reform ◽  
The Government

Subject Myanmar's business environment. Significance The government is instituting measures to improve the business climate and attract foreign direct investment (FDI) into the economy. As part of this effort, on February 24, it instituted the Competition Act. However, while there has been an influx of new FDI, foreign investors remain wary -- largely because of the challenges of navigating Myanmar's old and complex regulatory environment. Impacts Economic reforms could slow in the event of an opposition electoral victory, as the new government gains experience. Improvements to the business environment could be constrained by a faltering or failed ethnic peace process. Regulatory reforms backed up by effective administration could contribute to equitable economic growth.

Nazarbayev's re-election will boost Kazakh 'siloviki'

2015 ◽  
Keyword(s):  
Foreign Policy ◽  
Presidential Election ◽  
Strategic Alliance ◽  
Political Stability ◽  
Intention To Stay ◽  
The West ◽  
Foreign Investors ◽  
Content Type ◽  
Political Office ◽  
High Degree

Significance Three candidates competed for the country's supreme political office in the election on April 26. Unsurprisingly, Nazarbayev (74) won by a landslide, obtaining 97.7% of the total votes cast; the official turnout was 95.2%. This is the fifth presidential election in Kazakhstan since it gained independence in 1991. Nazarbayev's triumphant re-election suggests he intends to stay in power so long as his health permits. The prospect of an early succession is, therefore, again indefinitely delayed. Impacts Nazarbayev's re-election and apparent intention to stay in power are positive signs for foreign investors interested in political stability. His win may facilitate implementing anti-crisis measures thanks to domestic stability and a high degree of political centralisation. Kazakhstan's strategic alliance with Russia in the Eurasian Union is unlikely to experience major changes after Nazarbayev's re-election. Astana will continue to pursue a multi-vector foreign policy aimed at good relations with Russia, China, the West and Islamic countries.

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