Tuesday, 9 June 2015

CHAIRMAN'S MESSAGE - Paolo Provera, Chairman ITFA / General Manager ABC International Bank Plc.- Milan Branch

Dear Members and Friends,

Sell in May and go away - I am sure many of you have heard this saying, but no one would have predicted the extent at which credit markets, both equities and bonds, would have sold off last month, primarily in the euro area. And June is offering no respite so far. With summer just around the corner, and trading activity tending to subside during this period, emerging markets could well benefit from the subdued trading activity on capital markets, as growth forecasts seem to be stabilising, albeit selectively by region, on the back of the recent recovery in commodity prices.

Recent reports seem to indicate that the depth of the Russian recession may be less severe than previously expected. Forecasts now point towards a 4% GDP contraction in Russia in 2015, especially given the recent oil price rebound and early signs of recovery in business and consumer confidence. Business surveys are now pointing to recovery in activity.

All in all, the emerging market growth recovery is intact, but headwinds remain. Asia continues to be the clear leader for EM growth, but Q115 data has proven to be underwhelming. Chinese growth has already dropped to 7% from 7.2%, and data continues to disappoint. In Latin America, growth prospects remain somewhat subdued and with little indication so far that the relief from commodity prices will translate to much better growth this year.

Enough about emerging markets for now. In this Newsletter, I would like to introduce two new individuals within our growing Association, namely Duncan Friggieri and Alexia Vella. Their recruitment was deemed necessary as we felt that the administrative work of our Association could no longer be handled by the Board, due to the growing volume of work involved. Their roles as Administrators include supporting our members on any issues/queries which they might have, to offer members faster replies, the on-boarding of new members, to increase communication thus supporting the Board, co-ordination and communication of events/training courses as well as all online-related material, to name a few.

As I am sure you are well aware, both Duncan and Alexia have been instrumental since the turn of the year in keeping you all well informed of any developments within our Association. They have provided us Board Members with the much needed impetus to take our Association forward and reap as much synergies as possible. I, on behalf of the Board, would like to thank them both for their support in the last few months.

It goes without saying that preparations for our forthcoming Annual Conference are in full swing, and the whole team is constantly working behind the scenes so as to ensure that this highly-anticipated event is fruitful to all attendees. We are pleased with the rate at which registrations have been coming through and this gives us the drive to continue working hard so that the event will be ultimately well-attended. We thank you all for your continuous support.

As always, we look forward to hearing from you with any feedback you may want to share with us by sending an email to myself, any of the Board Members or to our general email, info@itfa.org.  

Best wishes
Paolo Provera

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