The Economist (July 4)
“Shale matters. The industry has become huge—listed firms have invested over half a trillion dollars of capital…. Shale firms owe almost as much debt as Greece. After drilling beneath much of Texas and North Dakota, they account for 5% of global oil output. The health of shale firms affects people around the world, from Western drivers and Saudi Arabia’s sheikhs to Asia’s consumers.”
Tags: Asia, Capital, Consumers, Debt, Drilling, Greece, North Dakota, Oil, Output, Saudi Arabia, Shale, Texas
Wall Street Journal (January 7)
“As notable as the magnitude of the greenback’s rise has been its rapidity: 13% against the euro and some 15% against the yen since the end of June. Capital that had flowed into emerging markets since the world financial panic is now heading back to the land of the free,” boosting the economic strength of the U.S.”
Tags: Capital, Economic strength, Emerging markets, euro, Financial panic, Greenback, Magnitude, U.S., Yen
Bloomberg (September 9)
The Federal Reserve is taking a tougher regulatory stance and will require large, systemically important banks to increase their capital. “Given the incentives big banks face, only regulators can ensure they operate with enough capital for their own good — and for the good of society. The Fed still has a long way to go, but at least it’s headed in the right direction.”
Tags: Banks, Capital, Fed, Incentives, Regulators, Society
Bloomberg (July 15)
“Cross-border private capital is so readily available for good emerging-market borrowers that multilateral lenders such as the World Bank are having to explain why they’re needed any longer. To justify their existence, they’re trying to recast themselves as repositories of development expertise.” With the BRICS poised to create their own new currency reserve fund and development bank, the proposed institutions look anachronistic. The BRICS just “don’t need their own bank.”
Tags: Borrowers, BRICS, Capital, Cross-border, Currency reserve fund, Development bank, Emerging market, Lenders, World Bank
Euromoney (May Issue)
“Dollar-denominated debt capital market volume in Asia reached almost $27 billion in April, the highest monthly volume on record…. These record volumes underline the fact that global investors remain keenly focused on Asia, despite continuing worries about a slowdown in China and India.”
Tags: Asia, Capital, China, DCM, Debt, Dollar, Global, India, Investors, Market, Record, Slowdown, Volume, Worries
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.
Wall Street Journal (October 30)
Al Gore warns a carbon asset bubble “is still growing because most market participants are mistakenly treating carbon risk as an uncertainty, and are thus failing to incorporate it in investment analyses. By overlooking a known material-risk factor, investors are exposing their portfolios to an externality that should be integrated into the capital allocation process.” If we are to avoid catastrophic levels of global warming, many fossil fuel reserves will ultimately end up as stranded carbon assets. “The transition to a low carbon future will revolutionize the global economy and present significant opportunities for superior investment returns. However, investors must also acknowledge that carbon risk is real and growing. Inaction is no longer prudent.”
Tags: Al Gore, Capital, Carbon assets, Carbon risk, Fossil fuel, Global economy, Global warming, Investment, Investors, Material-risk factor, Opportunities, Returns
Wall Street Journal (October 7)
“Billionaire Warren Buffett tossed lifelines to a handful of blue-chip companies during the financial crisis. Five years later the payoff on those deals is becoming clear: $10 billion and counting.” In terms of income before taxes, the investments to companies like Bank of America, Dow Chemical, General Electric, Goldman Sachs and Mars, have yielded Berkshire approximately 40%. Berkshire received an attractive premium, but provided the companies with critical capital and something even more valuable: “Mr. Buffett’s implicit endorsement of their long-term prospects. Shares of these companies generally went up after they revealed Berkshire’s involvement.”
Tags: Bank of America, Berkshire, Billionaire, Blue-chips, Capital, Dow Chemical, Endorsement, Financial Crisis, General electric, Goldman Sachs, Investments, Mars, Payoff, Premium, Shares, Warren Buffett
Financial Times (January 15)
”Britain’s high streets are in mourning. Another chapter of retail history seems set to close after the collapse of HMV, the UK’s last national music chain. It is the latest in a series of household names to shut up shop. But instead of mourning past glories (Sir Edward Elgar opened the first HMV store in 1921), there are good reasons to welcome the process of creative destruction that is finally taking its toll on UK retailing – however agonising it is for those affected.” Killing off zombie companie frees up capital for more productive enterprises. Though some may see the passing of HMV and other worn out retailers as “the end of the high street,” it’s really just “a new beginning.”
Tags: Capital, Creative destruction, High streets, HMV, Retail, UK, Zombies
Global Times (December 17)
As Beijing moves to ease congestion by restricting sales of autos, overseas news outlets are noting this story which advocates relocating the capital. “Traffic jams and environmental problems in Beijing are leading some experts to revisit a decades-long proposal for China to relocate its capital to Central China or another part of the country.” Other factors favoring a move involve limited drinking water and the need to boost regional development. Many, however, view any such move as impractical and unlikely.
Tags: Beijing, Capital, Environment, Relocation, Traffic jams
