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Open Letter IMF, ECB and EU
Open letter from Wim Grommen regarding concerns about European stock indices. Dear Ms Lagarde, dear Mr Draghi and dear Mr Van Rompuy, Now that the welfare of many citizens in Greece, Portugal, Spain, Italy and France threatens to sink beneath the critical...
Private equity exits in Central and Eastern Europe achieve third highest activity on record
2013 was a year of strong exit activity in the CEE region, the 3rd highest on record, which unlike the previous two record years, was not dominated by one or two large disposals. In addition, 88 companies were exited, the highest number in the past seven years....
Share and Share Alike
Much commentary and public concern have focused on the evident trend decline in the share of U.S. national income flowing to labor (and the corresponding trend rise in the share of U.S. national income flowing to capital). It seems timely to review the data onlabor’s...
Size does not matter for the time being
Taking the long-term development of small caps versus large caps into consideration shows that there is a strong relationship with the general equity market development. Small caps outperform when equity markets are rising and vice versa. Based on the recent development...
Strong performances Footlocker, outperforming indices
Foot Locker, Inc. is a global retailer of shoes and apparel, operating 3,473 primarily mall-based stores in the United States, Canada, Europe, Australia, New Zealand and twenty other countries as of February 1, 2014. The Company operates in two segments: Athletic...
NIBC: Mixed signals about economic activity
The Chart of the Week shows real exports and government expenditures in Japan. After eurozone inflation fell to 0.4% in July and eurozone GDP growth stagnated in Q2, financial market participants strongly urge the ECB to engage in quantitative easing. The purchase...
Global Macro Matters: Higher inflation? Follow the money . . .
Wage pressures are a "canary in the coal mine" for trend inflection points. Over the past three decades, the public's expectations for future inflation have been a critical factor influencing core inflation trends. Inflation expectations are reflected in the link...
NIBC: Rising financial market nervousness on global risks
The Chart of the Week shows the annual change in the unemployment rate and the federal funds target rate, the Federal Reserve’s main policy rate. The Federal Reserve’s policymakers argue that “there remains significant underutilisation of labour resources”. Yet,...
Faber expects massive sell-off
The Swiss market guru Marc expects huge sell-offs later this year. Faber reported to Bloomberg that the current bull market, started in Augustus 2009, should be at his end. A five year period is way too long for a bull market compared to the real development of...
The Dow Jones Industrial Average: a Fata Morgana
Wim Grommen, The Dow Jones Industrial Average: a Fata Morgana The Dow Jones Industrial Average (DJIA) Index is the only stock market index that covers both the second and the third industrial revolution. Calculating share indexes such as the Dow Jones Industrial...
U.S. Economy Shrank
For the first time in three years the U.S. economy shrank for the first time in three years because companies reduced investment and added inventories at a much slower pace. The Commerce Department said today in Washington that in the first quarter GDP decreased...
Vivus shareholder eyes to buy company in $640 million deal
Vivus Inc's largest shareholder, Aspen Investment Fund said it was planning to acquire the company in a $640 million deal. On Wednesday, in a regulatory filing Aspen said it intended to have discussions with Vivus about its strategic and operations plans, management...
Yellen Has Limited Power to Reduce U.S. Housing Slowdown
Federal Reserve Chair Janet Yellen and her colleagues are concerned and surprised by the timid housing recovery. On May 7, in testimony to Congress Yellen termed the industry as a risk to the outlook. Although the industry is recovering from devastation of first...
World shares near all-time high
World shares are near an all-time high and the euro is steady, because the ECB ensured that global liquidity will prolong. In most of the big economies of the world, record-low interest rates support asset markets. Britain's FTSE opened 0.3% higher. The rest...
Alibaba’s China Base Is Good News and Bad News for IPO Investors
It is very easy to get attracted by glossy numbers in Alibaba’s IPO prospectus: 231 million active buyers last year, 72% revenue growth and 44% profit margins. After page 19 of the document, is a grim reminder that putting money in a Chinese company -- particularly...