World economy

Equity buybacks began around three decades ago

Why Investors And Companies Like Buybacks

Stock repurchases by corporates have by far been the most dominant source of demand for American equites in the current bull market. According to figures of AXA IM, equity buybacks since the global financial crisis, for S&P 500 companies, have totalled more than US$3.5tn, continuing a phenomenon that began around three decades ago.


Debt as the current biggest economic threat

The biggest economic threat today is not the interest rate, nor the exchange rates, nor the possible trade war fuelled by Trump: it’s the debt accumulated by countries across the world. This has increased 12% of GDP since the crisis, totalling 225% of global GDP. Starting with China, followed by Europe and ending up with the US, the threat from the current and future debt is terrifying.

Libor Is Double The Levels Of Last April Promoting Further Deleveraging

The market behaviour in Q2 continues to be one of de-risking, says Mark Tinker Head of Framlington Equities Asia. “It is clear that the noise traders who came so enthusiastically into equity markets around the turn of the calendar year have gone again before the start of the new financial year, taking their leverage with them”, he explains.