Daily News: December 17, 2012

BNY Mellon: Eurozone Stability Top Concern For Business


Companies say that stability of the eurozone and global systemic market risk, along with the prospect of increased regulatory oversight, are weighing most on their business outlook and on the markets, according to an annual survey conducted by BNY Mellon.

Eurozone issues are the top concern of firms surveyed in Western Europe, followed closely by those in North America. Latin American companies, however, point to global systemic risk and the sustainability of emerging market growth as their chief worries. In Asia-Pacific, while most of those surveyed consider Eurozone stability important to market confidence, a higher percentage of firms are concerned by currency exchanges rates than in other regions. Regulatory concerns are pervasive; half of respondents are uncertain about how additional regulatory oversight will affect liquidity, with over a third saying it will be negatively impacted.

Developed as a benchmarking tool for BNY Mellon’s depositary receipt clients, the survey, Global Trends in Investor Relations, looks at how publicly traded companies are managing their IR practices and the issues affecting them. The survey features input from more than 800 companies across 59 countries. Respondents span the range of market cap and industry sectors, including financials, industrials, consumer, technology and healthcare.

“Uncertainty is the underlying theme of this year’s survey, so it’s no surprise company executives are devoting more of their outreach to retaining current institutional investors,” said Christopher M. Kearns, deputy CEO of BNY Mellon’s Depositary Receipts business. “Issues like the Eurozone and ‘fiscal cliff’ continue to weigh heavily on markets globally. In response to these challenges, we’re seeing more firms seeking to boost their international shareholders. Depositary receipts remain a key tool for companies in both traditional and emerging markets to source new pools of capital.”

To read the full report, click here.