By Adam Cadle
Economic market performance in 2012 will largely depend on how governments perform in their geopolitical roles, according to a study conducted by the Economic Intelligence Unit.
Other stories you may find of interest:Industry responds to EIOPA consultation
In a study of nearly 800 institutional investors, respondents stated that the threat of an oil spike is the main risk to global recovery along with tensions over Iran’s nuclear programme. The economic risk contagion threat from Spain was also mentioned.
Entitled The search for growth, the report has also revealed that less than half of respondents think that businesses will increase capital investment in 2012. Further, investors are continuing to move away from commodities in the face of lower demand for many raw materials.
Whilst the majority of investors believe that debt levels are unlikely to change over the next year, they do believe that debt will continue to restrict economic recovery since the 2008 global economic crisis.
Pension and investment associations across Europe have expressed different views on what they see as the future of cross-border pension provision, as the European Investment and Occupational Pension Association (EIOPA) closed its consultation on the IORP Directive yesterdayIAS19 impact on pensions uncertain
The effects of the revised International Accounting Standard (IAS19) on European listed companies’ financial statements remain uncertain, Mercer has said. No consensus has been reached over the interpretation of some of the revised IAS19’s requirements, so there could be opportunities for early adopters to work with their auditors to select the solution that best meets their needsA solution to the European sovereign debt crisis?
Europe is still negotiating to find a solution to the European sovereign debt crisis, but this will inevitably end in a messy compromise that fails to resolve the peripheral solvency crisis and merely prolongs the agony until the next stage, said Stuart Thomson, chief economist at Ignis Asset Management