ATL Capital |For most people, the summer is a time for relaxing and taking a well-earned break from work. But it can also bring instability and suprises in the stock markets. While August has been a negative month for investments for the last eight years, it’s September which is traditionally the worst summertime month.
John Bruton | The best way to avoid stagnation induced by uncertainty would be for governments in developed countries to produce comprehensive, demographically-based scenarios for the economy over the next 30 years.
There are a lot of indicators which basically show that the US economy is strong, but it’s a “weak” strength, since it has been unable to maintain average growth of 2%. A weakness I see in the US economy is investment: in the second quarter it declined, which is not a sign of strength.
By Jean Pisani Ferry via Caixin | Investment in many advanced and emerging economies is down – except in China – but governments around the world can take steps to improve the situation.
MADRID | Bankinter Analysis | 3Q Perspectives. Economic cycle speeds up and, mostly, gains soundness and reliability. Global growth will consolidate in 2014/2015 by +3%/+4% with positive news for developed countries and less favorable surprises in emerging markets. Japan and India are the exception to this rule. Spain will also amaze and main economic risk will lie in regional regional integrity issues whose aftermath may be undervalued, regardless the final scenario.
MADRID | The Corner | As global confidence revives and money is in the air, more deals are expected. Foreign direct investment (FDI) inflows, which grew year-on-year to $1.45tn in 2013, will rise to $1.6tn in 2014, $1.75tn in 2015 and $1.85 tn in 2016, according to the last U.N. economic think tank UNCTAD report. Spain is one of the EU’s most benefitted recipients attracting $39 billion from vulture funds, venture capital, billionaire families, pension plans or even sovereign funds.
MADRID | By J. J. Fernández-Figares | According to Eurostat, the US became by far the largest foreign investor in the European Union (EU-28) during 2013, with a figure that triples 2010 data. For its part, the second largest foreign investor in 2013 was Brazil, with €21bn.
MADRID| By The Corner | Spain is to lead the EU economic recovery until 2018, according to Morgan Stanley. External sector, capital spending and internal demand would be the factors pushing the country’s growth. Regarding capex, Spanish businesses are the most inclined to rise their investment expenditure in manufacturing during year 2014 in order to boost production capacity.
MADRID | The Corner | Head of Economics at the International Energy Agency remarked that “the investment in renewables in Europe has tripled the US’ investment in the entire shale gas production.” Prices are 20% below the right level to recover the cost of new investments due to the existence of overcapacity and subsidised prices in renewables.
Iris Mir | Tight control of capital accounts has pushed China to a financial deadlock. Chinese savers are looking to new online investment platforms amid a lack of substantial wealth management options. Last year China’s Internet payment platform launched the online investment platform Yu’e Bao to offer its users the possibility of investing the idle money on their Alipay accounts and getting much higher benefits than any traditional bank. More than 43.03 million people already enjoy its advantageous financial products. The opportunities of this business model are huge and many other Chinese internet giants are following suit.