Barron’s (November 5)
“It has been an eventful year in Brazil, though perhaps not in the way investors would have liked. The country’s growth has stalled to an expected 1.5% this year—a figure not exactly befitting an emerging market, especially one that not so long ago had been growing at four times that rate.” Despite the bad economic news, however, four experts assembled at a Barron’s roundtable believe Brazil investors have “reason for optimism.”
Tags: Brazil, Emerging market, Growth, Investors, Optimism
Investment Week (October 25)
Unfazed by a recent slump in the Dow, veteran investor Warren Buffet is taking advantage of the chance to increase his equity holdings. “If the market is down, I am happier buying. If I go to the supermarket and they have reduced prices, I feel better. So if I go to the stock exchange and they have reduced prices I feel better.” Indeed, he believes growth will continue in the U.S., which has stronger fundamentals than Europe.
Washington Post (October 24)
The International Monetary Fund (IMF) released its World Economic Outlook. It predicts that during the next four years, the U.S. “will be the strongest of the world’s rich economies. U.S. growth is forecast to average 3 percent, much stronger than that of Germany or France (1.2 percent) or even Canada (2.3 percent). Increasingly, the evidence suggests that the United States has come out of the financial crisis of 2008 in better shape than its peers — because of the actions of its government.”
Tags: Canada, Financial Crisis, France, Germany, Government, Growth, IMF, U.S., World Economic Outlook
The Economist (September 29)
“Growth at last appears to be returning to Britain’s economy…. The squeeze on real take-home pay is easing as inflation falls and wages edge up. Business surveys suggest activity is picking up…. which suggests the current quarter will see a positive figure for GDP growth.” In 2009, the UK experienced a “false dawn.” With “countless threats to renewed recovery,” leaders should avoid choking this recovery to make up for revenue shortfalls.
Tags: Economy, False dawn, GDP, Growth, Recovery, Revenue shortfalls, Threats, UK
New York Times (September 16)
“On the most basic level, the American Recovery and Reinvestment Act is responsible for saving and creating 2.5 million jobs. The majority of economists agree that it helped the economy grow by as much as 3.8 percent, and kept the unemployment rate from reaching 12 percent.”
The Economist (July 14)
With unemployment over 8% and full year growth expected to now come in at less than 2%, the U.S. economy still looks weak. The Economist notes, however, the ”comeback kid” is making progress. “America’s economy is certainly in a tender state. But the pessimism of the presidential slanging-match misses something vital. Led by its inventive private sector, the economy is remaking itself …. Old weaknesses are being remedied and new strengths discovered, with an agility that has much to teach stagnant Europe and dirigiste Asia.”
Tags: Asia, Comeback kid, Economy, Europe, Growth, U.S., Unemployment
Wall Street Journal (June 21)
In a move that “could add to the unease plaguing global markets,” Moody’s “downgraded more than a dozen global banks, including the five largest U.S. banks with global trading arms, to reflect declining profitability in an industry that is being rocked by soft economic growth, tougher regulations and nervous investors.”
New York Times (May 24)
“With Greece in meltdown, raising fears of cascading bank insolvencies and deepening recession, Europe’s leaders failed again this week to agree on the ambitious initiatives needed to quell the crisis.” If they don’t quickly wise up and promote growth, “the consequences could be disastrous — for their countries and the rest of the world.”
Institutional Investor (March 8, 2012)
“Euro zone crisis? What crisis? Top European executives, after putting their businesses on sound footing, are focused on longer-term challenges.” As examples, Institutional Investor points to Unilever and BASF, where effective management is successfully leading back to growth. BASF was also singled out by both buy and sell side analysts for having the best IR department.
“Euro zone crisis? What crisis? Top European executives, after putting their businesses on sound footing, are focused on longer-term challenges.” As examples, Institutional Investor points to Unilever and BASF, where effective management is successfully leading back to growth. BASF was also singled out by both buy and sell side analysts for having the best IR department.
Financial Times (December 11)
Congress should extend the payroll tax cut. “US growth is too fragile at this stage to risk fiscal contraction. If the payroll cut expires, it would withdraw almost $1,000 from the average middle-class pay packet.” Unemployment benefits should also be extended. Congress should “not punish those who are trying to find work.”
Tags: Congress, Growth, Payroll tax, U.S., Unemployment benefits