General
Technology Sector –2020 Update
In 2020, the technology sector witnessed the highest growth with more than 42% returns, which were more than double the returns (on average 18.9%) generated over the last decade
In 2020, the technology sector witnessed the highest growth with more than 42% returns, which were more than double the returns (on average 18.9%) generated over the last decade
We take a look at the top 10 countries by M&A volume and evaluate how are they performing with regard to dealing with COVID-19 uncertainties, economic activity, and M&A deal making.
M&A in APAC increased by 15% in 2020 primarily due to a surge of activity in Q3 2020 and activity started recovering at the end of H1 2020; strong H2 2020 ensured double digit
growth for the full year.
The COVID-19 pandemic overwhelmed the world in 2020. No one anticipated the social and economic scenarios that unfolded in 2020. However, 2021 started on a positive note, with the rollout of the first phase of COVID-19 vaccination programs across many countries.
Fintech stocks outperforming other stocks in the FIG sub-sector and banking remains the most affected sub-sector due to deteriorating loan portfolios and low
interest rates
The COVID-19 pandemic severely affected the North American consumer and retail sector in 2020. The nature of consumer spending changed drastically in 2020, as shoppers focused on buying essential items, rather than non-essentials.
The process of information dissemination has become real-time and on-demand, resulting in a rapidly shrinking of decision window for executives. Technology is transforming businesses, particularly in the area of data and reporting.
We gathered our data from text extracted from PDF reports with different sections belonging to Environmental, Social, and Governance parameters. Based on a set of questions in the three parameters mentioned above, we need to find the answers from the text extracted.
The COVID-19 pandemic has pushed the world in an economic recession that far worse than the financial crisis in 2008–09. Although many economies have been able to sail through the economic uncertainties, the fatigue induced by the pandemic is creating a new set of problems for governments across the globe.
Leading companies are acknowledging the relationship between environmental impact and overall business performance.
The banking industry’s creditworthiness remains closely tied to the economic performance of sovereign agents during times when the IMF and IDB forecast GDP losses between 8-10% for Latin America and the Caribbean in 2020.
COVID-19 has shut down large segments of the economy despite complete lockdowns being lifted in most countries, since negative effects caused by the disruption in supply chains and social-distancing restrictions has caused the risk of mass loan defaults to continue to mount.
If Standard Due Diligence cannot answer these questions, Enhanced Due Diligence (EDD) is required. If EDD is unable to answer these questions, the determination may be that the client relationship/transaction is not appropriate for the institution performing the due diligence.
For many banks, the third quarter of 2020 is lining up two competing challenges: business planning for 2021, and continuing uncertainty about the duration and magnitude of COVID-19’s impact on their business.
Models are complicated things, and the principles of model governance, implementation, and use are there to make sense of them, make them explainable, and confirm that they work. Let’s take a closer look at how financial institutions currently do that and check our recommended practices for robust financial crime prevention, detection, and reporting.
Covid-19 has augmented the traditional weaknesses faced by model risk management (MRM) teams, such as error-prone test evidence collection processes and time-consuming deep dives, as well as an increased workload.
Strong Rebound in M&A in Q3 2020 with Value of Announced Deals up 41% Y-o-Y and strong ECM Activity across IPOs, Follow-ons, and Convertibles
SPACs have no commercial operations and are formed exclusively to raise capital via IPO, with the only purpose of acquiring an existing company, which generally is unidentified, within a predetermined period up to 24 months. After the acquisition, the acquired company automatically turns into a public company.
Evalueserve hosted a panel discussion on the topic of “Reimagine the Role of Technology to Drive Time-Critical Insights”, with industry leaders Sebastian Hartmann (Global Technology Strategy, KPMG), Arsh Maini (CEO, Candela Labs), and Marc Vollenweider (Co-Founder and Chief Strategist, Evalueserve).
The outbreak of COVID-19 has had a devastating effect on global economies. However, as the COVID-19 curve begins to flatten, economies across the world are starting to recover. Considering the current situation, consumer and retail companies are also preparing to operate in a new economic reality.
Technology sector has significantly outperformed most other sectors.
The six largest economies of LatAm – Argentina, Brazil, Chile, Colombia, Mexico and Peru – are among the top 12 countries with the most coronavirus cases in the world, which has led to negative GDP forecasts for 2020, depreciation of local currencies and deterioration in credit profiles.
The volume of M&A activity in APAC increased by 13% YTD compared to 2019 and aggregated to $585bn, primarily due to higher deal volumes in China and Japan.
We take a look at the top 10 countries by M&A volume and how they are faring with regard to COVID-19, their economy, and M&A dealmaking. We assign a recovery score indicating their extent of recovery so far and how much they need to do to achieve a pre-COVID-19 level of normalcy.
Before we delve into the post-pandemic scenarios, here is a quick recap of the developments in the LNG market: The first six months of 2020 were one of the most turbulent phases for the market.
The disruption caused by the COVID-19 pandemic has severely affected the already debt-laden oil & gas companies. Many companies are finding it difficult to sustain amid the current crude price levels. This is leading to a growing wave of bankruptcies in the sector.
The global economy is still reeling under the pressure of the COVID-19 pandemic. Starting June 2020, many economies began lifting lockdown measures that were implemented to curb the spread of the virus.
Globally, the M&A activity slowed down in H1 2020, with USD1.2 trillion of deals announced during the period, which was the lowest first half value recorded since H1 2013. The number of announced deals during the period also declined to a six year-low.
Fintech stocks outperformed the S&P 500 due to a strong demand for digitalization. Banking stocks, on the other hand, have suffered the most due to existing pressure on margins due to the recent cuts in interest rates and expected continuous increase in non-performing loans due to the overall economic slowdown.
The shock of the COVID-19 pandemic, and the lockdown measures adopted to contain it, have had a debilitating effect on the global economy. According to the World Bank, the global economy will likely contract by 5.2% in 2020.
Making Credit Risk Review Process Faster, Accurate and More Efficient.
The disruption caused by the coronavirus (COVID-19) pandemic has severely impacted the retail sector. Although the outlook is positive for essential businesses (such as groceries) and businesses equipped with digital operations, brick and mortar retail stores are looking at huge losses and the risk of bankruptcy.
COVID-19 has infected more than 11 million people globally. To control the pandemic, countries were forced to impose lockdowns and social distancing measures. Although several countries have re-started economic activities, the crisis has had a significant impact on the world economy. As per IMF estimates, global economy is expected to shrink by 4.9% in 2020.
The economic slowdown due to the rapid spread of the coronavirus globally resulted in a historical dip in the S&P 500 index. Just a month after its record high, the S&P 500 was down 31%.
Climate-related incidents are increasing, and institutions that are not adequately assessing risks will suffer unexpected financial losses. Banks’ perceived role in averting the course of climate change is also coming to the forefront of the public agenda, and any financial institution that is not proactively tackling the problem will likely be behind the competition in implementing future regulations as well as managing their portfolios.
COVID-19 adversely affected the FIG sub-sectors, compelling firms to take drastic measures to mitigate long-term risks.
Based on their current structure, independent sponsors face several inherent challenges, which could arise from a lack of manpower or tight deadlines. They need to undertake several basic activities, such as building contact lists or creating investment memorandum, that prevent them from focusing on networking and building relationships.
Examining private equity interest in struggling sectors such as automobile, travel, oil and gas, and power reveals declines in deals and investments. This article suggests strategies for firms to navigate the crisis.
COVID-19 could wipe off 13–30 MMT of LNG demand in 2020. The industry is battling depressed downstream demand, low prices, high storage levels, and increased concerns over the viability of projects and supply cuts.
Even as COVID-19 continues to spread, the burden of the disease is asymmetrically distributed; countries find themselves at different stages of the pandemic. Some nations that succeeded in initial containment of the virus, such as Singapore and Hong Kong, are now witnessing a resurgence.
As of early May, school and university closures have impacted more than 70% of the global student population (over 1.3 billion learners). The education sector (both public and private) has faced the largest disruption in recent history.
As financial models increasingly adopt machine learning and other advanced technologies, the need becomes pressing to adopt objective validation standards for determining their fitness for purpose. In this article, we detail a three-step process for detecting unintended biases which is our contribution toward the establishment of such standards.
The CEE economies are readying for a severe recession and the banks are bracing for defaults in the wake of the coronavirus lockdown.
The global market has been heavily impacted due to the COVID-19 pandemic, disrupting M&A trends across sectors. The announced global M&A deal volume reduced 34% on a YoY basis to $780 billion as of April 23, 2020 and is most likely to continue declining through the second quarter.
This insights paper was prepared by the Risk & Compliance practice at Evalueserve. For a detailed analysis on how the Covid-19 crisis can impact your anti-financial crime operations and your immediate opportunities to enhance them during the lockdown and beyond.
As we continue to witness a global crisis of unprecedented scale, professional advice, experience, and active support are more critical than ever for business leaders across the globe. With each report, we will dive into a sector to assess what’s happening now and what the long-term implications are. We will provide our thoughts on what businesses can do during these times. Our aim is to strike a balance between brevity and context.
Even as COVID-19 continues to spread, the burden of the disease is asymmetrically distributed; countries find themselves at different stages of the pandemic. Some nations that succeeded in initial containment of the virus, such as Singapore and Hong Kong, are now witnessing a resurgence
Inflow of customers drives the Hotel industry. Decline in inflow due to postponement or cancellation of corporate travel – meetings, incentives, conferences, and exhibitions (MICE) – due to Covid-19 have significantly reduced occupancy levels.
The dampening impact of COVID-19 is expected to continue in Q2 2020. The most optimistic GDP turnaround estimate, to pre-Covid-19 levels, is 4–6 quarters.
Ripple effects of demand shock from COVID-19, felt across the value chain. Given the current state of outbreak it’s unlikely that the demand loss from COVID-19 would diminish before Q3 2020 and despite the optimistic recovery, 2020 oil demand will still face substantial decline.
Economic recession inevitable in 2020, but quick rebound expected in 2021. Global copper demand to decline 1.7%, USD/CLP increased 19.2% since social unrest.
Mining Industry: Impact of COVID-19 changed from moderate to high within March 2020. Companies are resorting to production slowdown, complete shutdown, demobilization of
workforce, and shuttering / isolation of operations.
Amid a global crisis of unprecedented scale, professional advice, expertise, and active support are more critical than ever for business leaders across the globe. The COVID-19 pandemic not only ends an uninterrupted bull run since the global financial crisis of 2007–08, but also stress-tests business models, global supply chains, and the war chests of companies globally.
Impacts on technology and telecommunications sectors vary somewhat by region. In North American there have been some setbacks. However the tech and telecom industries, and some of the larger individual players, in North America are highly diversified. As such, while some sentiments have been negative, others have been cautious but not alarmist (as not all subsectors are equally impacted).
Global economy is grappled with a severe demand shock, as more than 100 countries closed their borders in the past month. According to the UN Department of Economic and Social Affairs, Global economy could shrink by up to 1% in 2020 due to Covid-19.
In 2019, consumer spending accounted for almost 70% of US GDP and made up about 58% of China’s GDP growth. With both countries being at the epicenter of this staggered crisis, consumer spending is likely to stay low through 2020. Consumer behavior will undergo a dramatic shift and firms will need to adapt to the changing environment while ensuring stricter compliance of better health and safety conditions.
China is almost 4-10 weeks ahead of rest of the world when it comes to Covid-19 outbreak and its implications for the country’s economy. Not surprisingly, Covid-19 had a strong negative impact on China’s GDP during Q1 2020 with projected Q1 Real GDP growth expected to decline from pre-Covid-19 projection of 5.9% YoY growth to post Covid-19 projection of 0.2% YoY growth for Q1 2020. Projections are as of Mar 31, 2020.
Global auto sales were already struggling to keep pace even before the outbreak of Covid-19. China led the descent with its dramatic sales drop of more than 20% year on year during this month. Initially, the Asian auto industry was hit the hardest due to the coronavirus impact, where the Chinese industry witnessed a 79% decrease in the sales.
Globally, the pharmaceutical industry may experience logistics and demand disruptions, but less compared to other sectors. North America and EMEA plan to invest in API facilities to reduce reliance on APAC.
Global oil market was expected to balance in the second half of 2020, driven by production cuts from OPEC+, favorable demand growth, and stagnant non-OPEC supply growth. However, the Covid-19 outbreak lowered oil and oil products’ consumption of the largest consumer (China), and the Saudi Arabia-Russia disagreement will result in an extremely oversupplied market (at least in the short term).
Monetary policies and quantitative easing (QE) across the globe are aimed at promoting liquidity and stimulating credit, but the demand shock will require expansive and ongoing fiscal stimulus. Banks with credit exposure to vulnerable sectors like Energy, Hospitality and Leisure, Retail, Airlines, and Industrial products are likely to see loan-loss reserves increase as default rates tick up.
Check how targeted, smart automation can make a real difference to KYC, boosting efficiency and freeing up financial services firms’ resources to focus on fighting financial crime more successfully.
Discover the multiple ways that automation can make small but powerful changes to your KYC process.
It takes far more cost and effort to gain a new customer than it does to retain one. Read our 7-step process for identifying and retaining you most valuable customers.
ESG investing – still not convincing financial advisors? See what will make them drive the demand for it and how asset managers can support them.
See how by breaking down the validation process into its essential elements and standardizing the approach, you can make significant time and cost savings while also enhancing quality.
Read the latest survey-based report of 54 Indian companies focused on their investments and operations in China. The report has been developed and published in collaboration with Confederation of Indian Industry (CII).
Have a look at current trends in the world of robo-advice, and how leading and challenger brands are exploiting it.
Dividend stocks are often associated with older investors looking for a regular yield, while young investors target short-term price movements. But does the relentless pursuit of price returns actually work?
MiFID II is revolutionizing the way investors pay for their research. Check the most recent trends emerging in the research industry and see how much buy-side can expect to pay for research, and what will they be willing to pay for.
Does one ‘digitalization’ strategy apply to all business functions alike? To find out how to make non-core digitalization a success, read our Insights article.
In the pharmaceutical, life sciences and healthcare industries, the time spent gathering, normalizing, analyzing and interpreting commercial data is staggering. But does it have to be that way? Our exclusive new industry insights paper looks at five ways to make business intelligence workflows smarter. Download your copy today.
Going digital is the key to improving efficiency and creating a seamless customer experience. But crafting an effective digital strategy is easier said than done. This brief guide will get you started on the journey.
Managing a brand in today’s dynamic media landscape is a major challenge. Research and the statistical analysis of big data can be powerful tools to help marketers identify new ways to strengthen their brands and drive sales.
We asked 260 procurement professionals, in 14 industries worldwide, about the problems and priorities they face. Our findings, summarized in this exclusive survey report, feature the four key trends shaping the procurement landscape today.
Cognitive technology is transforming the way firms do business. In this article we explore how forward-looking companies around the world are putting cognitive technology to work across a range of business functions.
The digital stack is an interlinked set of technologies that create value for your organization, customers, partners and co-competitors.
China is in the lead in the global digital environment. Read our article to find out why companies across the globe should pay attention to this country’s digital revolution.
Consumer behavior is changing fast, business environments are increasingly volatile, and more and more marketplaces are going digital. In this turbulent landscape, it’s no wonder that securing organic, profitable incremental growth is the single most important challenge facing corporations today.
Brexit – a work in progress, with everything still to pay for. This industry insights examines the economic and commercial impacts of Brexit, including the key factors you should consider if your portfolio covers UK firms.
Identifying opportunities for workplace efficiency is not a matter of choice in the modern, competitive professional services industry anymore. Automation has a distinct role to play in increasing efficiency and reducing employee involvement in monotonous, time-consuming tasks. But what does it take to successfully streamline research and analytics?
Retaining promising junior bankers has become a high priority for investment banks. Automation has demonstrable advantages in terms of increased efficiency and reduced costs, but what about the potential for increased satisfaction?
The efficiency increases of mind+machine gains impact businesses on the scale of their operations. The time-to-market of solutions will drastically come down and so will the costs, and the potential reach will increase multi-fold thanks to such innovations.
Sell-side research is seeing a range of disruptive changes that are currently redefining the marketplace. Delivering reports that provide newer and deeper insights are needed more than ever before. Is the use of intelligent automation a defining factor in this race to survive?
Index users and providers are facing greater scrutiny due to the expansion of financial regulations covering the index industry. Discover what are the options for index providers and users.
Are you part of the global pharma conversation? Do you have the systems in place to join it? More and more pharmaceutical and healthcare companies are finding the need to actively engage with patients, physicians and key opinion leaders.
Assets under management by robo-advisors are on the rise and both startups and industry leaders are investing in this new technology. But what does that mean for human financial advisors?
Compliance with BCBS 239 is not only mandatory for systemically important banks (SIBs), it also has tangible business benefits. Why then are so many banks struggling to meet the requirements for compliant risk data aggregation and reporting?
Maintaining efficient and compliant customer engagement and communications in the financial services industry can be challenging, but modern, dynamic workflows are changing the face of publishing.