The Economist (July 15)
While it is unlikely to solely account for all of the weakness in productivity plaguing developed countries, “there is a growing belief that the persistence of zombie firms—companies that keep operating despite a poor financial performance—may explain the weak productivity performance of developed economies in recent years.”
Institutional Investor (August 28)
“Chinese companies are the new force in global M&A.” With $51 billion of outbound M&A, China has surpassed both Japan ($37 billion) and Germany ($49 billion) during the first eight months of 2014. Though it still trails the U.S. ($174 billion), “mainland firms are stepping up the pace of foreign acquisitions, increasingly targeting technology and consumer plays in developed countries.”
Tags: Acquisitions, China, Consumer, Developed countries, Germany, Japan, M&A, Technology, U.S.
Investment Week (January 22, 2014)
“Investors are better off looking away from the US for their developed market equity exposure,” according to Cazenove Capital multi-manager Marcus Brookes who argues that U.S. stocks have gotten pricey and, contrary to popular belief, many U.S. companies have increased their leverage. “In the face of the cheap markets of Europe and Japan, I would much rather put my clients’ capital there because if it does go wrong it is a cheaper market.”
Tags: Capital, Cazenove Capital, Companies, Developed countries, Equity, Europe, Exposure, Investors, Japan, Leverage, Marcus Brookes, Markets, Pricey, Stocks, U.S.
The Los Angeles Times (January 21, 2014)
Half a century ago, the Surgeon General declared cigarette smoking causes lung cancer. Since the earth-shattering report, “the percentage of Americans who smoke has dropped by more than half,” with only 18% still lighting up. “Other developed countries have achieved similarly dramatic smoking reductions.” Staggering estimates are put on items such as lives saved and medical costs eliminated. “But this is not the end of the story, sadly.” Cigarette smoking has grown dramatically in developing countries, nearly tripling between 1970 and 2000 alone. “There are now 1 billion smokers globally, almost one-third of the world’s adult population, and smoking rates are increasing in some countries, such as Bangladesh and Indonesia.”
Tags: Bangladesh, Cigarettes, Developed countries, Developing countries, Estimates, Indonesia, Lives, Lung cancer, Medical costs, Smokers, Surgeon General, U.S.
