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The meal replacement products category is expected to continue to register a decline in sales in 2011, despite renewed efforts by manufacturers to introduce new brand extensions to stimulate demand. Sales are being impacted by changes in consumer eating habits; people seeking to lose weight are encouraged to follow a combination of healthy eating and physical exercise. Although meal replacement products are subject to a certain level of demand, they have a negative image among many Dutch...

Our current outlook on Bahrain's consumer sector is cautiously optimistic, as consumer confidence looks like it is beginning to regain some strength. Bahrain's economy will continue gathering steam through 2012, supported by high oil prices, an influx of aid from Saudi Arabia and a gradual recovery in the tourism industry. We forecast real GDP growth of 3.4% in 2012, following an estimated 1.9% in 2011.

BMI View: We forecast steady growth in grains output over the short term in Canada, as we do not believe the recent decision to end the Canadian Wheat Board's monopoly on grains trading will affect planting decisions by farmers. On the contrary, still-elevated global prices are likely to encourage them to boost production. Both the livestock and dairy sectors are still being affected by slow growth in herds and high feed prices, which are expected to prevent producers from taking full advantage of new export market openings. Thus, we forecast poor output growth in both sectors despite high prices and government support.

The Iran Petrochemicals Report examines the impact of the international sanctions regime on the performance and development of downstream operators, paying particular attention to producers' export performance, credit availability and access to technology.

The US commercial banking sector continues to heal slowly, alongside an economic recovery that is weak by historical standards. Total client loans have finally returned to their 2008 peak, and continue to grow at a modest, steady pace, with a 2.4% increase in 2011. We anticipate 5.5% lending growth in 2012, with upside risks. Client deposits continue to surge, having risen by a cumulative 17% since the end of 2008, and 6.9% in 2011 alone. We are pencilling in 6.0% deposit growth in 2012, in line with a general shift toward a conservative funding mix for many commercial banks. The loan-deposit ratio has fallen from 133% in 2007 to around 110%, and we expect it to remain around this level for the coming years. There are several reasons why we believe the US banking sector has turned the corner, though there are a few major risks that threaten to derail the recovery. Positive News For Banks ???? Lending growth is picking up. The trough in credit growth came in Q110 at -4.5% y-o-y, and two years later, from corporate to household lending, banks are stepping up once again. Nonrevolving consumer credit growth reached a six-year high in December 2011, at 5.5% y-o-y, while revolving credit growth finally turned positive for the first time since Q109 (albeit at a still-weak 0.1% y-o-y). The willingness to borrow appears to be increasing, albeit at a very modest pace, as employment prospects and economic growth improve alongside low interest rates. Business lending, too, is picking up the pace. The weak spot remains real estate lending, which we do not expect to improve substantially for several quarters. ???? Loan standards continue to ease. According to the Federal Reserve's quarterly survey, senior loan officers at commercial banks continue to loosen lending restrictions, both for business and consumer loans. The accompanying chart shows the net percentage of respondents tightening loan standards, and while the proportion reporting tightened business loans ticked up in the most recent survey in January 2012 (mainly as a result of eurozone fears, we believe, meaning this should be temporary), conditions remain fairly loose. ???? Non-performing loan ratios are declining. As the accompanying chart shows, based on Federal Reserve data, NPLs peaked in Q309 but are slowly coming down. Loan loss reserves, too, are shrinking, suggesting cautious optimism among banks. ???? Banks are looking increasingly to profit-making opportunities, rather than merely ensuring their survival. Following years of balance sheet consolidation and fear over the condition of the economy, US commercial banks are poised to become increasingly aggressive. Earnings result conference calls for several major US banks included indications that corporate managers are looking for ways to increase margins and top line. Return-on-assets ratios are slowly climbing.

New Zealand, which consists of two main islands - the North and the South - and a number of smaller islands, is known for its natural beauty, culture, rugby and eco-tourism. The country's marketing slogan, '100% Pure New Zealand', has been in use for over 10 years. In the New Zealand Tourism Strategy 2015, the Pure New Zealand campaign promotes responsible tourism and refers to the Maori concept of kaitiakitanga, which means guardianship, care or protection in relation to the environment. There are a number of tourism businesses focusing on nature and green initiatives to protect the natural environment in New Zealand. More than 10% of New Zealand has been awarded World Heritage status by the UN Educational, Cultural and Scientific Organization (UNESCO). The three main sites are Tongariro National Park; Te Wahipounamu, which contains four national parks; and the Sub-Antarctic Islands.

Boston Scientific Corporation (Boston Scientific) is a global medical device company engaged in developing, manufacturing and marketing medical devices that are used in a range of interventional medical procedures. The company offers products in six dedicated business groups, namely, Cardiac Rhythm Management (CRM) that includes Interventional Cardiology, Peripheral Interventions businesses; Cardiovascular; Electrophysiology; Endoscopy; Urology/Women's Health and Neuromodulation. Priority markets include the US, Europe, Middle East, Africa (EMEA), Japan and Asia Pacific and the Americas (Inter-Continental).

BMI View: The commercial banking sector's problem of rising non-performing loans (NPLs) will unlikely ease in the immediate future despite the State Bank of Pakistan's interest rate cuts, given the stickiness of debt servicing costs. Furthermore, the banks' heavy exposure to Pakistan's struggling manufacturing sector should keep the risk of high NPLs acute. Given the dim fundamental picture, Pakistani financial stocks are set for continued underperformance. One of the key issues that Pakistan's commercial banking sector will have to contend with as the year marches along is the steady rise of non-performing loans (NPLs). As seen from the accompanying chart, the percentage of net NPLs to net loans has been on a secular uptrend since 2008, with the latest data showing a multi-year high of 6.2% in Q311 (up from 5.2% in the previous quarter). Below, we highlight our thoughts on why NPLs are likely to remain elevated, at least for the time being. Debtors Yet To Benefit From SBP Cuts Firstly, despite the State Bank of Pakistan's (SBP) 200 basis points (bps) worth of interest rate cuts in its current loosening cycle, it appears that the banking sector is still under stress given its apparent reluctance to bring down debt servicing costs in line with the central bank's easing. As such, debtors have yet to fully realise the SBP's dovish stance, with interest payments largely unchanged from the peak. It is therefore Pakistan Commercial Banking Report Q2 2012 © Business Monitor International Ltd Page 34 unsurprising that the central bank's cuts have done little so far to stem the rise of NPLs. In comparison, while interest rates on gross disbursements have fallen by 139bps from their peak (to 13.23% as of December 2011), interest rates on outstanding loans have fallen by only 35bps to 13.46%. At the moment, the spread between the interest on outstanding loans over the SBP's reverse repo rate stands at 146bps - well above the historical average of 35bps (see chart). Substantial Exposure To Struggling Manufacturers Secondly, the banking sector's huge exposure to Pakistan's floundering manufacturing sector, plagued largely by a seemingly intractable energy crisis, also keeps the risk of a prolonged bout of high NPLs acute. As seen from the chart below, at 57.4%, the majority of loans made to private sector businesses are made specifically to the country's manufacturing sector. Unfortunately for Pakistani banks, manufacturers are struggling to maintain any kind of growth momentum. The quantum index of large-scale manufacturing (QILSM) has largely disappointed since April 2011 (see chart), with growth having fallen from the March peak of 12.5% y-o-y to -0.5% by November, according to the latest data. Furthermore, not only have most loans made their way into a fragile manufacturing sector, but a significant portion of these loans have gone into Pakistan's critical textile industry, which is currently suffering from subdued cotton

Offshore projects contribute over 90% to Brazil's oil and gas production of about 860 million barrels of oil equivalent (MMboe), owing to the rapid development of deep water and ultra deep water oil and gas projects in the country. The country's major offshore development started in 2007 with the discovery of the Tupi oil field, which is expected to hold 5-8 billion barrels of resources. Subsequently, the country's pre-salt development activities have now extended to neighboring areas such as the Campos and Espiritu Santo basins, which have witnessed several major discoveries. Brazil's government is focusing on the development of offshore oil and gas activities, especially in pre-salt and post-salt areas. FPSOs are expected to play a key role in the development of deep water and ultra deep water projects in Brazil. Currently, about 40+ FPSOs are expected to be developed globally by 2015, of which Petrobras alone plans to add 12 in Brazil.

"Grid Parity for Wind and Solar Power - Future Outlook and Impact Analysis" is the latest report from GlobalData, the industry analysis specialists that offer comprehensive information and understanding of the wind and solar power markets.