Archive for April, 2015

4 New Ways We Are Making Our Reports Time Efficient For You

Frontier operates on the core belief that our most precious resource is time

With regard to our Research, we have consistently attempted to present our products in a simple concise way and thus enabling time efficiency in reading our Research. In coming months, we plan to take numerous steps to make it more so, reducing the time to get great information and insight.

In our research reports, only some of the information might be of use to all the clients who have opted in for it, while many pages of charts/detail might only be of use to a few. To make it easier for all, and to help you choose if a particular report is worth digging into, we will be structuring it as follows in the future,

  1. First have a couple of very short essential bullet points capturing the most important points in a nutshell
  2. Then a concise executive summary in the email text (so you don’t have to even open the PDF unless of real interest)
  3. The attached PDF will include further in-depth analysis and explanations supported by data and charts.  The email text will indicate the contents of the reports so that you can decide whether the full PDF is relevant for you to read.
  4. In the case of a chart heavy report, the PDF will be structured so that the most important 3-5 charts will be right up front, and then the rest for those who would like further information.

Our aim is to frame our products in a way where our clients could get to the core of what they need, without spending time reading beyond what’s needed for them. By this we hope to show you what to look for, what to avoid, and how to be selective and time efficient when using our Research.

The Global Economy in April

China made headlines in April recording the slowest pace of economic growth since 2009 in the first quarter of 2015. GDP growth came in at 7%, below the 7.3% recorded in the previous quarter.  Furthermore, the country’s securities authority tightened margin lending regulations, raising fears of a possible sell-off in the world’s best performing stock market. As a response to the volatility created by this action in the equity market as well as to stimulate economic growth People’s Bank of China cut its reserve requirement ratio (RRR). China also saw a first in April after it let a state-owned company default on its onshore debt for the first time in history.

The month also saw several other significant events taking place in the global economic and political landscape. Iran reached a framework agreement with the western powers on its nuclear operations. The agreement requires Iran to take several steps with regard to its nuclear operations including the reduction of installed centrifuges. A final deal is yet to be signed among the parties. Nevertheless, the initial agreement fueled concerns among the oil traders with the likelihood of Iran’s oil returning to the already over-supplied market following a possible lifting of sanctions. Crude prices held steady during the month mostly buoyed by ongoing tension in Yemen. However, prices came under pressure during the first week of April after it was reported that US oil inventory hit a 14-year high.

April was a crucial month for Greece, which is still struggling to reach a deal with its creditors while trying to meet varied payments with the little amount of cash the country is left with. However, the country made its big IMF repayment due this month without delay. The real test for the country would come in May when another critical IMF repayment is due if it fails to secure a funding deal by then. The IMF added to the pressure when the Managing Director Christine Lagarde stated that the Fund would not approve any debt repayment extension for the country.

In another historical event Muhammed Buhari became the first opposition candidate to win a Presidential election in Nigeria, beating the incumbent Goodluck Jonathan who is accused of corruption and incompetence. The democratic transition which took place bears some similarities to Sri Lanka’s January Presidential elections.