Global investors upbeat but Irish bosses are worried
The January global fund manager survey from Bank of America Merrill Lynch found two-thirds of investors had expectations of global growth, improving outlook to a two-year high.
US president-elect Donald Trump’s inauguration this week has investors primed for stronger growth and inflation, the survey of 215 investors with €511bn worth of assets under management found.
Michael Hartnett, chief investment strategist at Merrill, said: “Ahead of the US presidential inauguration, investors are positioned for stronger growth and inflation, but are not willing to turn fully bullish with China-related risks on the horizon.”
Manish Kabra, European equity quantitative strategist, said fund managers have returned to Europe amid improvement in the macro outlook, but that the UK remains the most under-weighted region.
In contrast to overall optimism of global investors, Irish business confidence has dropped to the second lowest level since the 2012 crisis, the latest Global Economic Conditions Survey from the Association of Chartered Certified Accountants and the Institute of Management Accountants found.
The survey found that almost half of business leaders globally were concerned over falling income due to low levels of government expenditure.
The survey saw 4,500 finance professionals and business leaders worldwide respond. The UK has hit its second lowest confidence levels since 2011.
Brexit, instability in the eurozone and upcoming elections in Holland, France, and Germany led to Irish pessimism among respondents, while uncertainty over US and China trade also hit confidence.
Liz Hughes, head of ACCA Ireland, said: “Irish business confidence has fallen to its lowest levels since Q2 in 2012, when we were facing the prospect of financial crisis.
“Undoubtedly Ireland is being severely impacted by the Brexit effect with uncertainty over relations with the UK and sterling fluctuations harming trade and investment prospects.”
