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Financial Times (May 19)

2020/ 05/ 20 by jd in Global News

In Ireland, “the jobless rate for the under-25s surged to 52.8 per cent in April,” up drastically from 12 per cent in February, and “the hit to young workers was not unique to Ireland.” For example, McKinsey has found that “workers aged 15-24 throughout Europe are almost twice as likely as those aged 25-54 to have jobs at risk’ 41 percent for the young; and 25 percent otherwise.

 

The Economist (November 23)

2019/ 11/ 23 by jd in Global News

Management consulting is being disrupted. “Advice on strategy, which used to be meat and potatoes for firms like McKinsey and its peers, Bain and the Boston Consulting Group (BCG), is now a side dish; it accounts for about a tenth of revenues.” These days clients “want consultants to provide and install products, including new technologies, that transform them from top to bottom and keep disrupters at bay.”

 

Institutional Investor (February 14)

2018/ 02/ 15 by jd in Global News

“Record-high fundraising has resulted in some growing pains and new challenges for private market managers.” In 2017, “fund managers raised a record sum of nearly $750 billion. Much of this fundraising was driven by so-called mega funds, or funds larger than $5 billion,” which more than doubled their take over 2016.  According to McKinsey & Co., the largest firms are now increasingly challenged by where to deploy capital, rather than how to raise it. Maintaining “the persistency of firm performance” is also growing more challenging “as the biggest firms get bigger.”

 

Institutional Investor (January 16)

2018/ 01/ 18 by jd in Global News

“BlackRock CEO Larry Fink has written a letter to CEOs detailing his requests for corporate stewardship as the firm moves toward shareholder activism year-round…. The letter is the latest move by an asset manager to focus more on shareholder activism and environmental, social and governance criteria in investments. For instance, BlackRock competitor Vanguard Group said in an August report that it is taking a more active approach to monitoring companies in its portfolio, while a McKinsey & Co. study published in October found that asset managers no longer consider ESG a niche strategy.”

 

Institutional Investor (February 23)

2017/ 02/ 25 by jd in Global News

As private capital firms accumulate extra funds, the growth in “dry-powder” has caused considerable alarm. Uninvested capital expanded 26.8% in 2015 alone. According to McKinsey & Co., there really isn’t that much to worry about. Though “uninvested capital in the private markets has reached $1.6 trillion,” it “hasn’t outpaced growth in deal volumes.”

 

The Economist (September 19)

2015/ 09/ 21 by jd in Global News

“Corporate profits more than tripled in 1980-2013, rising from 7.6% of global GDP to 10%, of which Western companies captured more than two-thirds. The after-tax profits of American firms are at their highest level as a share of national income since 1929.” Yet a recent study suggests “the golden age of the Western corporation may be coming to an end.” The McKinsey Global Institute projects “that corporate profits may fall from 10% of global GDP to about 8% in a decade’s time.”

 

Institutional Investor (March 10)

2015/ 03/ 11 by jd in Global News

“China’s red-hot growth inevitably has to cool given that it has already overbuilt and overborrowed. China’s debt load has exploded four-fold since 2007, largely on the back of shadow banking and a real estate boom.” China’s total debt load (estimated at 282% of GDP by McKinsey) now “tops debt loads in the U.S., Germany, Australia and other developed countries. China’s corporate debt amounts to 125 percent of GDP.”

 

CFO.COM (November Issue)

2012/ 11/ 30 by jd in Global News

“Is providing quarterly earnings guidance worth the effort?” Increasingly U.S. companies are saying no. Quarterly guidance is criticized for “consuming an inordinate amount of time, rarely hitting the bull’s-eye, and unnecessarily shifting company’s focus to short-term tactics at the expense of long-term value.” While quarterly guidance still remains common, more companies are moving toward “annual guidance with quarterly updates.” According to the National Investors Relations Institute, the percentage of companies providing quarterly guidance has fallen from 86% to 76% since 2009. A McKinsey & Co. study analyzed 4,000 public companies, finding that “quarterly earnings guidance does not result in superior valuation.” Many companies who want to discontinue the practice, however, may hesitate out of fear analysts might assume they were trying to hide something.

 

Business Green (April 18)

2012/ 04/ 20 by jd in Global News

A new report from McKinsey “predicts solar power will be cost competitive with fossil fuels in hot countries within two to three years.” Capacity is likely to double within five years. The consulting firm’s report also predicts that costs will decrease 10% annually through 2020 when “costs could decline to $1 per watt peak (Wp) for a fully installed residential system.”

 

The Economist (July 7)

2011/ 07/ 08 by jd in Global News

“Deleveraging will dominate the rich world’s economies for years. Done badly, it could wreck them.” The countries that most ballooned their debt are now struggling to reduce it. This is having a major impact on spending and economies. Moreover, citing analysis by the McKinsey Global Institute, attempts to reduce debt have only just begun. For example, “the ratio of total debt to GDP in both America and Britain has fallen by just over ten percentage points from its peak—a fraction of the scale of debt reduction in a typical deleveraging period.”

 

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