Institutional Investor (May Issue)
“New innovative business models by upstarts Tesla and Uber are poised to disrupt multiple industries at once.” Both companies have been driving around barriers thrown up by conventional businesses that feel threatened. “The real winners to watch — the companies that will shape the landscape of American business and tech — are those that seek to fill customers’ every need, that work themselves into new markets however possible.”
Tags: Barriers, Business, Business models, Customers, Disrupt, Innovative, Markets, Needs, Tech, Tesla, Threatened, U.S., Uber, Winners
Real Estate Investment Today (April Issue)
“REITs contribute to more resilient real estate markets and a more resilient financial system.” Sub-prime mortgages contributed to the residential property collapse, but REITs helped stabilize the commercial market. A recent study by researchers from the University of Wisconsin and the Bank for International Settlements found that REITs provide markets with much needed transparency and liquidity. It’s “clear that REITs provide real benefits for the broader commercial real estate industry, for investors and for our nation’s economy.”
Tags: BIS, Commercial, Economy, Financial system, Industry, Investors, Liquidity, Markets, Real estate, REITs, Residential property, Resilience, Sub-prime, Transparency, University of Wisconsin
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.
Institutional Investor (October Issue)
We are living in “disparate times.” Income inequality hit a record in 2012, with the top 10% accounting for 50.4% of total earnings. Much as hypertension can lead to a coronary event, “inequality my leave markets prone to crashes.”
Chicago Tribune (October 16)
“Raising the debt limit neither authorizes new spending nor increases our national debt by a single dime…. It simply allows us to pay the bills Congress has already racked up.” As such, the debt ceiling should be repealed. “All it does is make the markets jittery and provide an opportunity for contemptible, hypocritical grandstanding that distracts from serious negotiations about taxes and spending. At worst it crashes the economy. No president, Democrat or Republican, should ever again have to negotiate with Congress with such a threat over his or her head.”
Tags: Congress, Debt ceiling, Democrat, Economy, Markets, National debt, Negotiations, President, Republican, Spending, Taxes, U.S.
Wall Street Journal (June 29)
“The real lesson of recent days concerns the Fed’s ability to exit from its extraordinary interventions. The mere hint that the Fed might eventually taper its bond purchases sent markets into anxious gyrations…. Imagine the uproar when the Fed finally decides to act, as it eventually must.”
Euromoney (May Issue)
“The Cyprus solution is inadequate as well as sending the wrong messages on depositors’ risks and free capital flows. Then there’s Slovenia…and Italy….. So the euro debt crisis is not over….. Markets are far too sanguine about the outcomes.”
Tags: Banks, Cyprus, Debt crisis, Depositors, EU, euro, Free capital flows, Markets, Outcomes, Risks
Euromoney (January issue)
“It won’t take much to improve on last year’s ECM and M&A revenue numbers. According to Dealogic’s preliminary full-year 2012 figures, ECM revenue fell to $13.3 billion last year—the lowest since 2003. M&A revenue was $17.3 billion in 2012—down 15% compared with 2011.” Debt capital markets, however, fared better in 2012 with DCM revenue at $21.1 billion, a 23% increase over 2011.
New York Times (August 2)
An automated trading program went amok at Knight Capital Group, flooding the NYSE and other markets with orders at the opening bell. This “was the latest black eye for the financial markets. The runaway trading suggests that regulators have not been able to keep up with electronic programs that increasingly dominate the supercharged market and have helped undermine investor confidence in stocks.” Some of the trades were cancelled when markets returned to order at 10:15, but Knight is expected to take a large loss.
An automated trading program went amok at Knight Capital Group, flooding the NYSE and other markets with orders at the opening bell. This “was the latest black eye for the financial markets. The runaway trading suggests that regulators have not been able to keep up with electronic programs that increasingly dominate the supercharged market and have helped undermine investor confidence in stocks.” Some of the trades were cancelled when markets returned to order at 10:15, but Knight is expected to take a large loss.
Tags: Automated trading, Knight, Markets, NYSE, Regulators
Financial Times (May 1)
China’s vice-premier Li Keqiang writes of strengthening ties between China and Europe, which now trade over $1.5 billion of goods daily. “Economically, both regions have much to benefit from each other’s strength; this is the defining feature of China-EU relations. When ‘designed in Europe’ is combined with ‘made in China’ and when European technologies are applied to the Chinese market, there will be amazing results.”
China’s vice-premier Li Keqiang writes of strengthening ties between China and Europe, which now trade over $1.5 billion of goods daily. “Economically, both regions have much to benefit from each other’s strength; this is the defining feature of China-EU relations. When ‘designed in Europe’ is combined with ‘made in China’ and when European technologies are applied to the Chinese market, there will be amazing results.”
Tags: China, Europe, Li Keqiang, Markets, Technology, Trade