Marty Dropkin, director of research for fixed income at Fidelity International, talks to Julian Marr about the group's 2017 Analyst Survey, which has flagged up strengthening corporate conditions across the globe.
The survey has indicated CEO confidence has reached its highest level since 2014. The associated global analyst sentiment indicator has increased from five points in 2016 up to six points this year, with management regarding demand-led growth as the main driver of earnings growth for their companies.
In the above video, Dropkin explains how the survey is conducted and what it covers before discussing the key takeaways, principal risks highlighted by Fidelity's 150-strong team of analysts and some of the more surprising findings.
He adds: "The global sentiment indicator is back to levels we have not seen since 2014. We were anticipating some improvement but we were a little bit surprised at just how much improvement we saw this year."
Particular themes picked up by Dropkin include the implications of the turnaround in sentiment towards the emerging markets, a "bottoming out" in capital expenditure, the oil price, how businesses are coping with disruptive technologies and the influence of politics on corporate decision-making.
Dropkin says: "Since our last survey, political changes have taken much of the world on a new path. With the oil price lows now behind us, oil-price sensitive sectors and regions are bouncing back strongly from last year's lows.
"This, combined with evidence of modest demand growth and continued innovation across sectors, is driving higher levels of investment and activity, which has also been reflected in firmer macroeconomic data. As a result, corporate fundamentals are now seen to be improving everywhere - in all regions and sectors."
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