Global Risk Insights's Contributions

Despite Iran deal, Price War Will Dominate 2015 Oil Markets

Regardless of the final outcome of Iran’s nuclear program negotiations, the coming months will see a continuing price war between OPEC producers and the shrinking US shale sector. It is highly unlikely that Iran will be allowed to start exporting its oil freely...

Will Germany Build the Next Silicon Valley?

While Germany has the economic and human capital to rival Silicon Valley, it is hindered by its laws and staid investment culture – yet changes are afoot.

Nuclear Deal Offers Only a Glimmer of Hope for Iran’s Economy

Between crippling sanctions and plunging oil prices, Iran’s economy has been under severe pressure in recent years. While the potential for a nuclear deal has caused optimism, entrenched interests of the Revolutionary Guard will...

China’s Monetary and Exchange Rate Problems Increase With Reform

After months of downward revisions to growth forecasts, the Chinese slowdown is now officially admitted with Premier Li Keqiang announcing the government target for GDP growth to be down to 7%.

4 Types of Businesses That Benefit From Net Neutrality

Internet providers are dismayed by the FCC’s net neutrality decision, but the ruling opens up opportunities to several other types of businesses. The late-February decision by the Federal Communications Commission (FCC) to...

End of Commodity Supercycle Puts Pressure on US Agriculture

With profit margins shrinking, American agriculture faces risk management challenges. One approach would be to make a priority of managing margin risk. The boom of the commodity supercycle is over, at least as far as...

Global Oil Glut Could Further Depress Oil Prices

With the global oil supply expected to outpace demand in 2015 and 2016, there is a growing risk from an oil glut that might further slash oil prices. The 50 percent fall in oil prices continues to rattle energy markets...

OPEC’s Influence Has Long Been Exaggerated

The nearly 50% decline in oil prices questions the future of the Organization of the Petroleum Exporting Countries (OPEC) and casts doubt on its ability to influence prices. However, the role of OPEC has...

How Likely Is the Greek Bailout Strategy to Succeed?

Greece and its Eurozone partners agreed an 11th hour deal on February 20th to extend the country’s bailout for four months, setting up another potential standoff in June when a 3.5 billion Euro debt payment comes due.

Five Countries Most Affected by the Oil Price Crash

Since June 2014, global oil prices have dropped by more than 50 %. The drop could strongly affect the economic and political stability of these five oil exporting countries. Oil prices make winners and losers. Still...

Russia Unveils Anti-Crisis Plan to Rescue Its Economy

In response to Standard and Poor’s downgrade of Russia’s credit rating to junk, the government has adopted a $35 billion anti-crisis plan. However, the document is ambiguous and the measures are unlikely to remedy the Russian economy.

Rise of Radical Parties Challenges Eurozone Efficiency

In recent years, the new radical right’s political discourse has attracted voters across Europe and experienced a substantial increase in electoral support. Unlike radical right parties throughout history, the ‘new’...

China Struggles to Sustain GDP Growth

Chinese economic growth has been high for years, but China’s economic forecasters and politicians have accepted that growth will even out. Chinese President Xi Jinping calls it the “new normal.” Official data has shown...

Weakening Currencies Put Developing Countries’ Debt at Risk

Debts issued in foreign currencies, some of which are not counted in official statistics, are a rising risk to developing economies as the UK and US get closer to raising rates. With the Swiss National Bank abandoning...

Will Draghi’s QE Work?

The ECB finally launched a larger-than-expected QE programme last week, despite German opposition and Greek elections. President Mario Draghi hopes that it will revive the eurozone and rebut deflation. Several questions are...

Will Obama’s State of the Union Proposals Survive Congress?

Last night, President Obama delivered his 2015 State of the Union Address to a special joint session of Congress covering swathes of domestic and foreign policy issues. The important question, given the political risks of...

China’s Shanghai-Hong Kong Stock Connect Fails to Deliver

At the moment, mainland investors need to have a portfolio of 500,000 yuan, or just over $80,000, to participate in the scheme. This regulation excludes a lot of investors and traders. Lowering this minimum portfolio would allow for...

EU Court and Greek Elections May Block QE From the ECB

As the Eurozone battles low inflation and a weak economy, consensus around quantitative easing (QE) has grown. The question is whether the ECB’s meeting on January 22nd will offer more than just talk from the bank or if Eurozone...

Greek Elections Draw the Eurozone Closer to Political Conflict

As Lithuania celebrates its entrance into the Eurozone, Greece contemplates its own exit for the second time. With the upcoming elections and the rise of the Syriza Party marking uncertainty about Greece’s future in the Eurozone...

Eurasian Economic Union Jeopardized by Trade War

Fears of Russia’s declining ruble led Belarus’ government to impose a 30 percent commission on the purchase of foreign currency on December 19th. It comes just weeks before both former Soviet states are set to upgrade the current customs union into the Eurasian Economic Union (EEU).

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