Wall Street Journal (September 15)
“The world’s second-largest economy is faring worse than previously thought, with government stimulus measures proving too short-lived to counter China’s sharp real-estate downturn or to prop up flagging factory output.” The slowdown in growth was highlighted by a slump in industrial production which fell to levels last seen during the financial crisis. “The falloff comes as Europe is stumbling and the U.S. recovery looks more moderate than expected, leaving the world in search of economic growth.”
Tags: China, Downturn, Economy, Europe, Factory output, Financial Crisis, Government, Growth, Industrial production, Real estate, Recovery, Stimulus, U.S.
Euromoney (September Issue)
“The recovery of the global real estate market from the devastating toll inflicted by the financial crisis is continuing to gather pace, with investment almost back to 2008 levels and growing confidence fueling increased risk appetite.”
Euromoney (July Issue)
UBS was named “Bank of the Year” by Euromoney. “Less than three years ago, UBS was written off as one of the ultimate victims of the financial crisis. The bold decisions taken then by a new chief executive and his management team make it today a bank that others seek to emulate.”
Tags: Bank, Bold decisions, Chief executive, Euromoney, Financial Crisis, Management team, UBS, Victim
The Economist (May 24)
“Obituaries of the Great Moderation may have been premature.” Following the financial crisis, volatility has again returned to low levels characteristic of the Great Moderation. “The big question is whether the return of the Great Moderation has also prompted a return of the sort of risk-taking that produced the crisis. There are troubling signs.”
New York Times (March 23)
“It’s the one question about the 2008 financial crisis that people still ask me more than any other: Why have regulators done so little to rein in the credit rating agencies?” Despite abuses which helped create the sub-prime crisis and despite numerous resolutions to revise the regulatory environment for firms like S&P and Moody’s, little has been done. “Ratings still loom large, even after they were found to have been so disastrously inaccurate in 2008. It’s yet another example of the glacial pace of regulatory change.”
Tags: Abuses, Credit rating agencies, Financial Crisis, Moody's, Ratings, Regulators, S&P, Sub-prime crisis
Financial Times (October 25)
“A painful and protracted hangover from the financial crisis has slashed demand for cars in Europe, forcing mainstream manufacturers to close factories, lay off workers and fill their financial statements with red ink.” Despite these measures, however, the industry is still struggling with overcapacity, compelling many global automakers to subsidize European losses with sales elsewhere. Providing a glimmer of optimism for Europe, however, Ford “called the bottom of the disastrous market slump on Thursday, the first carmaker confident enough to turn tentative hopes into official profit guidance and draw a financial line under six years of falling sales.”
Tags: Automakers, Carmakers, Demand, Europe, Factories, Financial Crisis, Ford, Guidance, Losses, Manufacturers, Optimism, Overcapacity, Sales, Workers
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
Wall Street Journal (September 20)
“What will German voters be choosing when they go to the polls on Sunday? A new Parliament, definitely, but not likely a new direction for their government. In this year’s federal election campaign, the parties’ platforms could have been written two years ago, the candidates for Chancellor are allergic to bold ideas, and opinion polls have been flat for months, only tightening a little in the last few weeks. Europe’s most important election since the financial crisis is an election about nothing.”
Tags: Bold ideas, Campaign, Chancellor, Election, Europe, Financial Crisis, Germany, Government, Opinion polls, Parliament, Polls, Voters
Institutional Investor (September 17)
“As the global recession and financial crisis recede in the rearview mirror, companies have been acting more proactively in using their balance sheets in ways that enhance shareholder value. But we think they can do more…. By mid-2013, U.S. companies were sitting on cash that was equivalent to about 11 percent of their total assets, a three-decade high and earning almost nothing.” Fortunately, there are signs of change. Companies “have become more receptive to using debt to buy back shares, increase dividends and make acquisitions.”
Tags: Acquisitions, Assets, Balance sheets, Buybacks, Cash, Debt, Dividends, Financial Crisis, Recession, Shareholder value, Shares, U.S.
Euromoney (August Issue)
In the U.S., it seems everyone is becoming an entrepreneur. “Some 6 million businesses were created in the U.S. in 2012. The country is experiencing a start-up boom…. Since the financial crisis, the number of businesses being started has rocked.”
Tags: Boom, Businesses, Entrepreneur, Financial Crisis, Start-ups, U.S.
