Will the end of interest rake hikes
be a catalyst for M&A and the capital markets?
Could regulation cool the red-hot gen AI outlook?
And how will water risks impact the global economy?
I'm Sarah Cottle
and in this addition of According to Market Intelligence,
we are once again looking ahead
as we explore these three big topics in depth
in our big picture 2024 outlook reports.
Let's start with interest rates and the financial markets.
Equity issuance and M&A plummeted in 2023
as higher interest rates sidelined dealmaking.
Pent-up investor demand
and the end of rate hikes, however,
may fuel a resurgence.
Seven out of ten investment managers
said their investment appetite would grow
when the Federal Reserve stops raising rates,
according to an October survey from Market Intelligence.
And now turning to tech, gen AI remains the center
of attention as businesses adapt to new possibilities.
The question of who will win out from this boom
beyond the cloud operators has yet to be answered.
AI companies are drawing billions in funding,
yet regulation to prevent misuse may calm
some of the initial excitement,
according to our technology analysts.
Lastly, rising global temperatures continue
to threaten business stability, this time via water risks.
Physical, geopolitical and regulatory risks for businesses
have all been heightened by droughts
and floods across the world,
affecting CapEx and supply chain management.
More frequent droughts and heavy rains
hamper electricity generation,
disrupt agricultural production and exports
and interrupt supply routes,
which all lead to water becoming a more
strategic resource over the next decade.
And that’s according to Market Intelligence.