Wall Street Journal (November 1)
In the U.S., “GDP growth accelerated to 3% for a time along with investment, but then came Mr. Trump’s trade interventions. More than the damage from tariffs, business confidence fell amid the uncertainty of what Mr. Trump might do next. This has led to slower growth that is reflected in roughly 2% GDP growth in the last two quarters…. The strong evidence is that trade policy is the main growth culprit.”
Tags: Business confidence, Culprit, Damage, GDP, Growth, Interventions, Investment, Tariffs, Trade, Trump, U.S., Uncertainty
Financial Times (October 30)
“As the world economy slows and even Germany’s economy shows signs of weakness…. Policymakers in Germany and elsewhere should promote public and private spending—investment, above all. Huge opportunities do seem to exist. Moreover, the chance to borrow at today’s ultra-low long-term interest rates is a blessing, not curse…. In today’s economy, it is the only prudent thing to do.”
Tags: Borrow, Economy, Germany, Investment, Opportunities, Policymakers, Private, Prudent, Public, Slows, Spending, Ultra-low rates. Interest, Weakness
Market Watch (August 24)
“U.S. China tensions over trade policy have reached a boiling point, the only question remaining is whether business executives — and the stock market — can stand the heat…. The further upping of trade barriers, along with Trump’s forceful response, threatens to further erode already sagging business confidence and trigger more weakness in U.S. business investment, which could eventually lead to rising unemployment.”
Tags: Barriers, China, Confidence, Investment, Stock market, Tensions, Trade, Trump, U.S., Unemployment, Weakness
BBC (June 17)
According to the British Chambers of Commerce, “Brexit worries will see business investment contract faster this year and recover more slowly next year” as businesses are focusing on contingency planning and stockpiling, rather than sustainable investment.
New York Times (April 13)
“Brexit is not doable because it makes no sense, whatever the prime minister’s scattershot efforts or offers to resign. You can hoodwink people—but not if you give them three years to reflect on how they were hoodwinked before doing the deed the hoodwinking was about. The British cannot actually go through with something that will lower their incomes, make them poorer, lose them jobs, drain investment, expose their market to trade deals over which they would have no say, and—just an afterthought—lead to the breakup of Britain.”
Tags: Brexit, Hoodwink, Incomes, Investment, Jobs, Market, PM, Scattershot, Trade deals
MarketWatch (March 8)
“Car makers are facing a perfect storm of trade tariffs, slumping demand in the crucial Chinese market, and a backlash against diesel, which are together having a seismic effect on businesses. A shift toward electric and autonomous vehicles has not helped. They require vast investment and a different way of thinking.” Instead of the usual “corporate grins” at the Geneva Motor Show, there is “a collective grimace.”
Tags: Backlash, Car makers, China, Diesel, EVs, Geneva Motor Show, Grimace, Investment, Perfect storm, Slumping demand, Trade tariffs
Forbes (February 18)
“Drawn by generous incentives and the opportunity to sell directly into a unifying Europe, the car industry became a poster child for inward investment.” Now the survival of this industry in the UK is at stake. Honda’s scheduled plant closing “comes after last month’s announcement of up to 4,500 job losses at Jaguar Land Rover and news that Nissan’s new X-Trail model is to be made in Japan, not Sunderland.” Furthermore, “Toyota and Ford have warned of negative consequences in the case of Britain editing the European Union without a negotiated deal.”
Tags: Car industry, EU, Europe, Ford, Honda, Incentives, Investment, Jaguar Land Rover, Job losses, Nissan, Survival, Toyota, UK
Financial Times (February 14)
“Official figures from the Dutch investment agency show 42 companies relocated to the Netherlands last year citing Brexit as the reason. The investment has resulted in 1,923 jobs and €290m in investment. Sony and Panasonic have also announced plans to set up their European headquarters in the country.” But the good news may not last. “The Netherlands is likely to be one of the biggest EU losers from a hard Brexit given the close trading links between the two countries especially in fresh produce and the importance of Rotterdam, Europe’s busiest port, to British trade.”
Tags: Brexit, EU, Headquarters, Investment, Losers, Netherlands, Panasonic, Port, Rotterdam, Sony, UK
Bloomberg (June 15)
“The trouble is, every time China’s leadership finds itself with the appetite for the long-awaited rebalancing away from investment and toward consumption, it finds itself staring into a terrifying abyss of slowing growth…. Beijing has been trying to take its foot off the accelerator of state fixed-asset investment almost since it tapped it two years ago, but private investment clearly hasn’t been sufficient to fill the gap.” Now a trade war is likely to “trample” the long-awaited rebalancing.
Tags: Appetite, China, Consumption, Investment, Leadership, Private, Rebalancing, State, Trade war
Institutional Investor (December 1)
“Next year’s first review of Europe’s Solvency II regulations has given fund managers and consultants a platform to voice their concerns.” Though “most asset managers agree that the rules have enhances insurers’ understanding of investment portfolio risk” many also feel that the “policymakers mispriced asset risks” leading to unintended consequences. In particular, restrictions that “effectively ruled out some assets which could have provided higher, albeit riskier, returns” have proven particularly odious for annuities.
Tags: Asset managers, Asset risk, Europe, Fund managers, Insurers, Investment, Mispriced, Policymakers, Portfolio risk, Regulations, Restrictions Annuities, Rules, Solvency II
