15. Institutional Architecture and the Future of Industrial Policy
We are proposing a different system based approach to medium to long-term industrial policy to that on which past UK policy has been based. There are nevertheless important lessons to be learned from past UK experience. These relate in particular to the ability of governments to design and deliver policy. This is a question of government failure. A systems approach might address these issues in four ways. First, there is a need for policy to be designed in an embedded way which eschews top down design and implementation. Second, in the face of uncertainty and the need for reflexive policy learning, an options approach would be essential. Third, there would be a requirement to build policy design and information processing capacity. Finally it would embody the creation and design of policy intermediaries to enhance the connectedness of the system and improve its institutional architecture.
For the UK Equity portion, five funds are suggested, namely CF Woodford Equity Income, Investec UK Alpha, Old Mutual UK Alpha, AXA Framlington UK Select Opportunities and Man GLG Undervalued Assets.
Overall within the UK Equity blend, we are seeking to provide exposure to a range of different mandates and management styles. The CF Woodford Equity Income fund is managed by Neil Woodford who typically runs a defensively positioned low beta portfolio. Historically, his fund has provided better drawdowns through a combination of astute top-down calls and a robust valuation discipline. However, his long-term positions can lead to a performance profile which is markedly different from the underlying benchmark. The Investec UK Alpha fund is run by Simon Brazier, who was previously running a similar mandate at Threadneedle before moving to Investec at the beginning of 2015. The process blends fundamental, bottom- up stock research with top-down analysis. Brazier is mindful of the risk/reward dynamics of the fund and aims to provide investors with a consistent return profile. The Old Mutual UK Alpha fund is managed by Richard Buxton. The fund tends to have a strong bias to large-cap companies and he builds a concentrated portfolio with position sizes being determined by his level of conviction. He typically favours investing in companies that appear underpriced relative to their growth prospects. The manager’s long- term approach can lead to extended periods of performance and risk outcomes that can differ from that of the market. The AXA Framlington UK Select Opportunities fund is managed by a very experienced fund manager, Nigel Thomas, and he considers top-down factors carefully when constructing the portfolio. The fund provides exposure to companies from across the market cap scale and usually has a strong focus on mid-and small-cap companies, as well as an overall growth bias. Finally, the Man GLG Undervalued Assets fund is managed by Henry Dixon, who seeks to identify two types of companies, those where the market is undervaluing a stock’s asset base and those where the market is undervaluing a stock’s return on assets. The fund’s disciplined investment process leads it to have a high turnover and significant biases down the market cap scale. From an investment style perspective, the fund tends to hold a value bias and therefore complements the blend further as it gains exposure to different parts of the UK market.
The fund tends to have a strong bias to large-cap companies and he builds a concentrated portfolio with position sizes being determined by his level of conviction. He typically favours investing in companies that appear underpriced relative to their growth prospects. The manager’s long-term approach can lead to extended periods of performance and risk outcomes that can differ from that of the market. The AXA Framlington UK Select Opportunities fund is managed by a very experienced fund manager, Nigel Thomas, and he considers top-down factors carefully when constructing the portfolio. The fund provides exposure to companies from across the market cap scale and usually has a strong focus on mid-and small-cap companies, as well as an overall growth bias. The BlackRock UK Special Situations fund is strongly biased towards mid- and small-cap companies and is based upon meticulous stock selection. The managers are skilled both in identifying smaller companies with potential whilst acknowledging the inherent risk in this strategy within the portfolio construction, tilting its aggregate positioning as they deem appropriate for the market conditions. Finally, the GLG Undervalued Assets fund is managed by Henry Dixon, who seeks to identify two types of companies, those where the market is undervaluing a stock’s asset base and those where the market is undervaluing a stock’s return on assets. The fund’s disciplined investment process leads it to have a high turnover and significant biases down the market cap scale. From an investment style perspective, the fund tends to hold a value bias and therefore complements the blend further as it gains exposure to different parts of the UK market.
LONG & MEDIUMTERM STORAGE NOW AVAILABLE
Facilities Management (FAMA) is pleased to announce the availability of dry goods storage at our new off-campus storage complex. This storage site consists of a warehouse and limited outside storage that can be arranged by special request on a case by case basis. Our new facility is ideally located for your Campus storage needs, conveniently located at 701 Government Avenue just off Sixth Street south of the main campus.
• Strategic behavior of the agents: for a same system cost structure, different regulation policies, or different number and size of agents lead to different prices.
• Typically longterm models are based on Nash equilibriums, and can account for most of those factors.
MLT export financing What is MLT export financing?
n MLT export financing is a medium-long-term (2-10 years) financing structure for
buying Hungarian goods and services, which is intended to provide financing allowing Hungarian exporters to get the consideration for their goods or services immediately after delivery.
• We are raising the long-term issuer credit rating on Heartland Bank Ltd.
(Heartland) to 'BBB' and assigning it a negative outlook.
• The rating upgrade reflects our view that Heartland's business position strengthened over the past three years upon the bank's transition toward its core niche markets and away from non-core assets.
The search for increased efficiency, which is a feature of the recent evolution of maritime economy, makes it probable that this new factor will emerge, but the scope of its influence is extremely difficult to determine, as only few ships spend their whole working life in the fleet of the shipowner who ordered them. The contractor-owner is most often a national of a developed country and when he thinks that a unit of his fleet is no longer economically profitable, because of technical developments in his sphere of activity, he replaces it by a new more suitable vessel, but the obsolete ship is not scrapped. In fact, there will be other shipowners in the world who are of the opinion that the ship can still be run economically in the light of her purchase price, operating costs and the state of the market in which they intend to use her. Consequently, the second-hand value of a ship remains much higher than her scrap value for a very long time.
The intuition behind the model in this paper is that earnings per unit of capital, and hence real share prices and dividends, for the full dividend payout firm converge toward a constant in the long run due to endogenous forces in the markets for labour and fixed investment. Suppose that share prices increase from a steady-state equilibrium because of a technology innovation that increases the returns to capital. The increase in Tobin’s q leads to a higher capital stock, which in turn lowers the returns to capital due to diminishing returns to capital. The capital-induced reduction in earnings exactly counterbalances the technology-induced increase in earnings in the steady state equilibrium. Similarly, a reduction in the required share returns results in only temporarily higher share prices because the capital stock endogenously adjusts to the new level of required returns to such an extent that earnings per unit of capital matches the required returns. Finally, a supply shock such as a stronger union movement brings earnings per unit of capital down to a lower level. The effects on earnings and stock prices, however, are temporary because the wage pressure results in a reduction in the capital stock due to Tobin’s q. The capital stock is reduced until the pre-shock earning per unit of capital is established, which brings real share prices and dividends back to their initial equilibrium.
4. The development of the Strategy involved all Government Ministries, Independent Departments, Parastatals, the Private Sector, Labour Organisations and Civil Society. Each of these key Stakeholders was requested to identify and prioritize the core elements of their Economic Diversification initiatives that would have a “Big Bang” or “Significant Impact” on the economic diversification drive initiative and submit them for inclusion into the EDD Medium to Long-Term Strategy Action Plan where their performance will be tracked from a national perspective. A Workshop and a Pitso were organised in September and November 2010 respectively, where the Stakeholder contributions were shared, discussed, refined and packaged into the EDD Medium to Long-Term Strategy Action Plan.The Strategy envisages achievement of economic diversification through implementation of the EDD Thematic Areas which will be driven by a globally competitive private sector. These are as follows: i. Sectoral Development and Business Linkages Thematic Area which aims to develop Botswana’s
The crisis had permanent adverse effects on the level of potential output
Another optimistic assumption that underlies the scenarios presented here is that the crisis has only reduced the level of potential output and has had no permanent adverse effect on its growth rate. Compared with pre- crisis projections, the level of aggregate OECD potential output, both currently and over the next few years, has been revised downwards by about 2½ per cent. 5, 6 Underlying the loss are permanent reductions in capital endowment as firms have adjusted to the end of cheap financing and increases in the number of people becoming detached from the labour force as long-duration cyclical unemployment has evolved into structural unemployment. Some of the smaller countries, including Greece and Ireland, experienced losses exceeding 10% of potential output relative to pre-crisis projections, the difference vis-à-vis the OECD as a whole being attributable mainly to much larger negative hysteresis effects due to very large and sustained negative output gaps. Because even very large output gaps are assumed to close fairly quickly, the possibility of large negative output gaps persisting for several years, with hysteresis-type effects continuing to drag down the level of potential output, is thus a downside risk to the scenarios presented here.
Domestic energy businesses will continue to be the Group’s largest source of revenue going forward.
For international energy businesses along the energy value chain and environment and non-energy businesses, we will pursue growth until the two areas combined rival the profit levels of domestic energy businesses. To this end, we will expand business scope and improve business quality while raising consolidated return on assets to around 4% and consolidated return on equity to approximately 9% over the longterm.
Abstract. The research focuses on several challenges on short, medium and longterm bank lending in Romania, taking into consideration a series of economic and social criteria as well as different types of loans. At the same time, special attention is paid to the post-accession into the EU impact and to the financial and economic effects of the international crisis. The main results of the research are expected to point out the necessity of structural improvements in the field of long-term loans contributing to investments boosting as a vital prerequisite for Romania’s economy sustainable development. Meanwhile it is worth mentioning the intensity and duration of the crisis in Romania compared to other developed and emerging EU member countries. The importance of addressing causes that hinder the monetary policy transmission channels, lending sustainable re-launching, more involvement of banks in European funds absorption and growing market share for banks with domestic capital, are highlighted as main conclusions resulting from the study.
The suggested changes also create opportunities to extend this work in order to include additional effects. Although the changes wrought here seem appropriate given the relevant literature and appropriate data, the method could in principle be applied to other input weights, instead of labour. Given appropriate data, the method could be used to estimate differences in the evolution of all weights, rather than focusing on one as an indicator that is then used to drive other weights. The representation includes trend terms in yield equations, allowing modellers to introduce additional effects on total factor productivity as it relates to yield. The prices used as proxy for crop input prices could also be adjusted if necessary. For example, the GDP deflator is retained as the indicator of the non-traded (labour) price, as in the original model, but better data might be available. Even without time series data, a systematic difference in the trend of GDP deflator and the price of labour to crop production could be reflected by adjusting this term. Thus, this representation can be extended to include additional effects with modest adjustments to the yield trend or to one of the input prices.
The research is devoted to the analysis of some challenges on short, medium and long-term bank lending in Romania, taking into consideration a series of economic and social criteria as well as different types of loans. At the same time, special attention should be paid to the post-accession into EU impact and to the financial and economic effects of the international crisis. The main results of the research are expected to point out the necessity of structural improvements in the field of long-term credits contributing to investments boosting as a vital prerequisite for Romania’s economy sustainable development. Meanwhile it is worth mentioning the intensity and duration of the crisis in Romania compared with other developed and emerging EU member countries. As main directions for future researches resulting from our study the importance of improvements in monetary policy transmission channels, the credit sustainable re-launching, and growing market share for banks with domestic capital, including majority state-owned capital are highlighted.
Company town clusters are formed by the agglomeration of numerous subcontractor groups around the assembly factory of a particular LE. Typical examples are the region around Toyota City, which has Toyota Motor Corporation at its heart, and Hitachi City, which has Hitachi at its heart. Cluster regions have developed as a result of enterprises cutting the cost of expensive tasks such as production management and the acquisition of new customers, and their move to specialize in certain production processes. SMEs benefit from being within the same business groups as the LEs. The success of Toyota Motor Corporation raised the number of employees living in Toyota City, as well as the value added (at 2000 prices) by 1.5% and 0.6% between 1997 and 2007, respectively (Table 4). On the other hand, although the number of employees in Hitachi City was more than 40,000 before 1994, it came down to 25,000 in 2005. In the 1990s, Hitachi shifted the manufacturing base of its home appliances abroad. As a result, the number of employees at its major subcontractors was reduced to half the size it was in the 1970s (Japan Small Business Research Institute 2003). As clusters are affected by the difficulties experienced by LEs, SMEs are forced to diversify their businesses. The traditional business model of being dependent on certain LEs and doing business within the cluster is not functioning as well as it used to. Within the clusters, SMEs are discovering new clients and trying to diversify outlets.
2.3 Combining short-term utilization with long-term technology development
Priority should be put on those renewable energy technologies that have both market demand in the short-term and large development potential for the long-term. Importance should be attached to technologies mature in the current market, such as hydropower, biomass power, biogas, biomass pellet fuel, wind power, and solar thermal. At the same time, importance should also be attached to those less mature technologies that have good future prospects, such as solar PV and liquid bio-fuels.
Much controversy surrounds the existence of the momentum effect and the reversal effect on developed countries’ stock markets. Zhu (2003) is one of the representative scholars and has proved that China does not have a reversal effect through the study of the securities market. Chen Qiao and Wang Shi (2003) found that the inertial strategy based on the industry portfolio showed significant excess returns. Hameed and Ting (2000) found a significant price reversal effect in the Malaysian stock market indicating that there is a reversal effect in developed country stock markets. Gaunt ’ s (2000) study found that the Australian market also shows a significant reversal effect. His sample interval was from 1974 to 1997, the formation period was five years and, after an 18- month holding period, the reversal effect appeared. From the theoretical results of these scholars, we conclude that there are divergent views on whether there are momentum and reversal trends in the Chinese market, and the conclusions are totally different. The focus of our study is to clarify medium-term momentum and long-term reversal effects rather than prove their existence. Based on the above literature, we know that the reversal effect is a ubiquitous phenomenon and is concentrated in the medium and longterm. Thus, our decision will be more inclined to choose the mature US financial market so that the statement on the existence of medium-term momen- tum and long-term reversal will be unified. The US stock market has become a better option for our empirical analysis.
Key rating drivers and their description
Sovereign ownership with demonstrated capital support from GoI – The GoI remains PNB’s largest shareholder, accounting for a 73.15% equity stake as on September 30, 2021, down from 85.59% as on September 30, 2020 after two rounds of equity capital raise of Rs. 5,588 crore during the last 12 months. The bank raised Rs. 3,788 crore and Rs. 1,800 crore through the qualified institutional placement (QIP) of equity shares in December 2020 and May 2021, respectively. PNB and other amalgamating banks had received sizeable equity capital support from the GoI amounting to Rs. 55,274 crore during FY2018- FY2020 of which Rs. 17,757 crore was infused in FY2020. PNB did not receive any capital infusion from the GoI in FY2021 as its capital position remained adequate and it raised capital from the market. Supported by the recapitalisation over the years, the bank has recorded a substantial reduction in its stock of NNPAs.