The US economy was still recovering during the first quarter. The unemployment rate remained elevated. Housing data remained mixed. And credit remained fairly light. Yet large US companies appear to have performed particularly well during the first three months of the year, so who should they and their shareholders be thanking?
While Europe teeters amid a debt crisis and the domestic recovery starts and stops, major US multinationals are recording sales and earnings growth largely on the buying power of the rest of the world. Heavy industrial names like Caterpillar, technology leaders such as Intel and global consumer product and industrial leader like 3M have all made investors happy with better-than-expected first-quarter earnings results, with most of their profit growth coming from overseas, especially the Pacific.
US companies bolstering their revenues with sales abroad is not new, but the role these markets are playing has expanded recently as more established economics have buckled.
Asian demand is a huge factor in global growth, but not every nation within the region is poised for the same continued expansion. In fact, because China is the main source of that demand, certain sectors could see a bit of a slowdown in their earnings growth within the region.
Companies such as 3M, which on Tuesday posted earnings of $1.29 a share, up from 74 cents a share a year earlier, are turning their focus to emerging markets in ways that would have seemed inconceivable a decade ago.
By 'localizing' its products to optimally meet the needs of each regional emerging market, 3M essentially is able to offer customized products which can readily outperform local competitors' products.
Some of the emerging market surge is less about the economies themselves than about the cost of the raw materials and energy needed to power them.
Although a little caution is warranted particularly in the industrial and technology sectors.
It's important to note that the earnings of the US companies are increasingly coming from overseas.
These shares are for good and experienced investors only, I think, because you need to inform yourself very good about the evolution of the company and the share. You also need to look very good at the future of the company.
Once you have enough information you can decide with good taught if you will invest in these shares or not. If you do good research you can make a lot of money on these shares.
This blog is based on following article: http://www.smartmoney.com/investing/economy/why-investors-should-care-about-asia-now/?cid=1108#mod=BOL_hpp_footer
Liesbeth Masschelein
vrijdag 30 april 2010
donderdag 29 april 2010
Greece crisis: investors wait on deal details
The article “Greece crisis: investors wait on deal details” talks about the European investors who are not able to invest in Greece until they know the details of the rescue plan for the Greek economy and other eurozone countries.
Nowadays there is a big fear that the Greek crisis could spread to other parts of the eurozone because our currency is very weak compared with the dollar.
President Barack Obama and the German Chancellor Angela Merkel have also their concerns over a possible contagion because Standard and Poors downgraded Spain’s debt which is a sign of a loss of confidence in another important European country. In other European countries the situation will also become very difficult because there is a high pressure.
They are convinced that the rescue plan should come there as soon as possible. If the EU will make a chance to conjure the financial crisis they have to prove that they are able to take important decisions in a very short time span.
In my opinion the statement of Angela Merkel is a bit contradictory because on the one hand the European negotiations about loans were jammed due to the German attitude. On the other hand she said that the negotiations with the Greek government, IMF and the European Commission need to be accelerated.
Analysts said that the provided packet of 45 billion Euros will not be enough to solve the Greek problem and that they will need a lot of money in the coming years.
This blog is based on the following article:
http://news.bbc.co.uk/2/hi/business/10090310.stm
De Bruycker Mathias 2FV4
Nowadays there is a big fear that the Greek crisis could spread to other parts of the eurozone because our currency is very weak compared with the dollar.
President Barack Obama and the German Chancellor Angela Merkel have also their concerns over a possible contagion because Standard and Poors downgraded Spain’s debt which is a sign of a loss of confidence in another important European country. In other European countries the situation will also become very difficult because there is a high pressure.
They are convinced that the rescue plan should come there as soon as possible. If the EU will make a chance to conjure the financial crisis they have to prove that they are able to take important decisions in a very short time span.
In my opinion the statement of Angela Merkel is a bit contradictory because on the one hand the European negotiations about loans were jammed due to the German attitude. On the other hand she said that the negotiations with the Greek government, IMF and the European Commission need to be accelerated.
Analysts said that the provided packet of 45 billion Euros will not be enough to solve the Greek problem and that they will need a lot of money in the coming years.
This blog is based on the following article:
http://news.bbc.co.uk/2/hi/business/10090310.stm
De Bruycker Mathias 2FV4
Incredibly inexpensive US stocks cheapest since 1990!
Even after the biggest rally since the 1930's, US stocks remain the cheapest in two decades as the economy improves.
Earnings estimates for Standard & Poor's 500 Index companies from Apple Inc. to intel Corp. and CSX Corp. climbed 9.1 percent on average in April, twice the gain in their prices and the largest monthly increase since at least 2006, data compiled by Bloomberg show. The benchmark gauge for American equities is trading at 14.2 times forecasts for its companies' profits, lower than any time since 1990, except for the six months after Lehman Brothers Holdings Inc. collapsed.
Income is beating analysts' estimates by 22 percent in the first quarter, making investors even more bullish that the rally will continue after the index climbed 80 percent since March 2009. While bears say the economy's recovery is too weak for earnings to keep up the momentum, Fisher Investments and BlackRock Inc. are snapping up companies whose results are most tied to economic expansion.
New-home sales surged the most since 1963, recovering from the April 16 rout when the Securities and Exchange Commission said it was suing New York-based Goldman Sachs Group Inc. for fraud. The index is up 9.2 percent for 2010, the largest gain in the world's 15 biggest equity markets, Bloomberg data show.
While analysts are raising estimates, they're not boosting investment ratings. It's easier for analysts to adjust their earnings estimates than to aggressively put forth strong 'buy' recommendations. It may be a reflection of concern about the resilience of earnings in 2011 and beyond.
Companies are losing the benefit of a weaker dollar after the currency appreciated 9.5 percent since November against a basket of six trading partners. A rising currency cuts demand for American exports and reduces overseas revenue when converted back to dollars.
David Rosenberg says US stocks are poised for losses because they've become too expensive
Economic growth will slow and stocks retreat as governments around the world reduce spending after supporting their economies through the worst recession since the 1930's.
In these times of crisis you should invest in sheep stocks such as these in America. The stock exchange always has a good evolution in the long run.
This blog was based on following article: http://www.investmentnews.com/article/20100426/FREE/100429917
Liesbeth Masschelein
2FV4
Earnings estimates for Standard & Poor's 500 Index companies from Apple Inc. to intel Corp. and CSX Corp. climbed 9.1 percent on average in April, twice the gain in their prices and the largest monthly increase since at least 2006, data compiled by Bloomberg show. The benchmark gauge for American equities is trading at 14.2 times forecasts for its companies' profits, lower than any time since 1990, except for the six months after Lehman Brothers Holdings Inc. collapsed.
Income is beating analysts' estimates by 22 percent in the first quarter, making investors even more bullish that the rally will continue after the index climbed 80 percent since March 2009. While bears say the economy's recovery is too weak for earnings to keep up the momentum, Fisher Investments and BlackRock Inc. are snapping up companies whose results are most tied to economic expansion.
New-home sales surged the most since 1963, recovering from the April 16 rout when the Securities and Exchange Commission said it was suing New York-based Goldman Sachs Group Inc. for fraud. The index is up 9.2 percent for 2010, the largest gain in the world's 15 biggest equity markets, Bloomberg data show.
While analysts are raising estimates, they're not boosting investment ratings. It's easier for analysts to adjust their earnings estimates than to aggressively put forth strong 'buy' recommendations. It may be a reflection of concern about the resilience of earnings in 2011 and beyond.
Companies are losing the benefit of a weaker dollar after the currency appreciated 9.5 percent since November against a basket of six trading partners. A rising currency cuts demand for American exports and reduces overseas revenue when converted back to dollars.
David Rosenberg says US stocks are poised for losses because they've become too expensive
Economic growth will slow and stocks retreat as governments around the world reduce spending after supporting their economies through the worst recession since the 1930's.
In these times of crisis you should invest in sheep stocks such as these in America. The stock exchange always has a good evolution in the long run.
This blog was based on following article: http://www.investmentnews.com/article/20100426/FREE/100429917
Liesbeth Masschelein
2FV4
woensdag 28 april 2010
Closed-end funds offers opportunities for investors
Closed-end funds are funds, which are issued just like normal shares. They take off with an initial public offering (ipo) with a fixed number of shares, these are negotiable on the stock market. This system is in contradiction to open-end funds, where they issue new parts for each new investor.
The theoretical price of each closed-end share is called the Net Asset Value (NAV). This contains the total value of all the financial products (like shares, bonds, currencies,…) in the closed-end fund, divided by the total number of shares. But the real price of the fund depends on its supply and demand. When you can buy under the NAV, you will enjoy a discount. If you have to pay more than the NAV, you need to pay a premium.
Last year, there were two trends visible at the market of closed-end funds. On the one hand, there was a calm increase of the interest in equities. On the other hand, some funds made distribution payments. These payments are using the same principle like dividends of common shares, which make them charming for investors.
Like the rest of the stock exchange, the most closed-end funds rebounded last year. As a result, many discounts were reduced or some funds even have a premium now. However, if you are looking attentive, you may find some funds with up to seventeen percent discount.
Investors should make a choice: going for a high discount and hoping that the closed-end fund will return to its NAV or investing in a fund with a higher payout. As we all know, this situation depends on the future market changes. If the stock market drops, this will also have its consequences on the closed-end funds. But maybe, we could discover some interesting discounts.
http://www.investmentnews.com/article/20100425/REG/304259961
Benny De Meyer, 2FV4
The theoretical price of each closed-end share is called the Net Asset Value (NAV). This contains the total value of all the financial products (like shares, bonds, currencies,…) in the closed-end fund, divided by the total number of shares. But the real price of the fund depends on its supply and demand. When you can buy under the NAV, you will enjoy a discount. If you have to pay more than the NAV, you need to pay a premium.
Last year, there were two trends visible at the market of closed-end funds. On the one hand, there was a calm increase of the interest in equities. On the other hand, some funds made distribution payments. These payments are using the same principle like dividends of common shares, which make them charming for investors.
Like the rest of the stock exchange, the most closed-end funds rebounded last year. As a result, many discounts were reduced or some funds even have a premium now. However, if you are looking attentive, you may find some funds with up to seventeen percent discount.
Investors should make a choice: going for a high discount and hoping that the closed-end fund will return to its NAV or investing in a fund with a higher payout. As we all know, this situation depends on the future market changes. If the stock market drops, this will also have its consequences on the closed-end funds. But maybe, we could discover some interesting discounts.
http://www.investmentnews.com/article/20100425/REG/304259961
Benny De Meyer, 2FV4
zondag 25 april 2010
Sinopec invests $4.65bn in Canadian oil project
Last week Sinopec, which is a Chinese oil company, has announced it will invest $4.65 billion in a Canadian oil project. It isn’t the first time Sinopec is doing this. Last year, Sinopec already paid $7.5 billion to Addax Petroleum, a company with oil assets in Africa and Iraqi.
The Canadian oil project, which is called Syncrude, is the biggest project Canada has known till today. This project pumps an estimated 350,000 barrels a day, about 13% of Canada's overall oil output.
I think that this investment will certainly have some advantages, and will help to better the world economy. Some advantages could be that Syncrude will now be able to maximize its oil capacities. They probably will be able to pump even more oil than they did before, which will help to stimulate the American and even the world economy.
There is also a big negative side, not on this investment, bit on the oil industry. As we all know, oil is one of the fossil fuels. Fossil fuels play a big role in today’s world economy due to the fact that they are used so often all over the world as most machines work on it. The negative side is that these fossil fuels aren’t inexhaustible and that they all will be gone one day. Due to this, this investment might be effective today, but in 50 years time these kind of investments won’t exist anymore.
Used sources: http://news.bbc.co.uk/2/hi/8616919.stm
Niels Roels
The Canadian oil project, which is called Syncrude, is the biggest project Canada has known till today. This project pumps an estimated 350,000 barrels a day, about 13% of Canada's overall oil output.
I think that this investment will certainly have some advantages, and will help to better the world economy. Some advantages could be that Syncrude will now be able to maximize its oil capacities. They probably will be able to pump even more oil than they did before, which will help to stimulate the American and even the world economy.
There is also a big negative side, not on this investment, bit on the oil industry. As we all know, oil is one of the fossil fuels. Fossil fuels play a big role in today’s world economy due to the fact that they are used so often all over the world as most machines work on it. The negative side is that these fossil fuels aren’t inexhaustible and that they all will be gone one day. Due to this, this investment might be effective today, but in 50 years time these kind of investments won’t exist anymore.
Used sources: http://news.bbc.co.uk/2/hi/8616919.stm
Niels Roels
maandag 19 april 2010
BlackRock is possible buyer for ING's real estate business
ING Group NV is a Dutch financial institution, which works worldwide. The Group got solvency problems in the period of the financial crises and the Dutch government supplied their capital with €10 billion.
Since the end of 2009, banks are recovering. But the governments want changes in the policy of the financial institutions. So, ING Group has to split up its banking and insurance operations. ING has decided to sell the “ING Real Estate Investment Management”, because this division is less integrated in the company’s structure.
ING considered some possibilities like an initial public offering (IPO) or a sale to another firm. Several sources of information declare that BlackRock is interested to buy ING Real Estate. The last years, that company is investing a lot in its real estate. This transaction is in line with the current evolution: the number of real estate investment managers is reducing.
I think the Dutch government makes a little mistake.
Belgium already has sold Fortis to BNP Parisbas for a small price. When the governments support that foreign companies take over one of the largest institutions of a country, then the governments plays with their inhabitants. Because there’s a high risk that the foreign investor fire the employees. At my opinion, the governments should try to hold such a big companies like Fortis and ING in their own country.
http://www.investmentnews.com/article/20100415/FREE/100419927
Benny De Meyer, 2FV4
Since the end of 2009, banks are recovering. But the governments want changes in the policy of the financial institutions. So, ING Group has to split up its banking and insurance operations. ING has decided to sell the “ING Real Estate Investment Management”, because this division is less integrated in the company’s structure.
ING considered some possibilities like an initial public offering (IPO) or a sale to another firm. Several sources of information declare that BlackRock is interested to buy ING Real Estate. The last years, that company is investing a lot in its real estate. This transaction is in line with the current evolution: the number of real estate investment managers is reducing.
I think the Dutch government makes a little mistake.
Belgium already has sold Fortis to BNP Parisbas for a small price. When the governments support that foreign companies take over one of the largest institutions of a country, then the governments plays with their inhabitants. Because there’s a high risk that the foreign investor fire the employees. At my opinion, the governments should try to hold such a big companies like Fortis and ING in their own country.
http://www.investmentnews.com/article/20100415/FREE/100419927
Benny De Meyer, 2FV4
It isn't too late to buy health care stocks!!
As investors re-evaluate their stock portfolios and look to make sense of the new health care reform legislation, a big question now is whether health care stocks are still worth buying.
The sector is still attractive despite recent strong returns and concerns about reform.
Health care stocks have long been regarded by investors as conservative, defensive positions. Their product portfolios include a range of necessary and desirable products.
Health care companies typically hold up well during difficult market environment due to characteristics including patent protection.
The same factors that have made these stocks attractive over the past couple of years remain in place.
Older Americans spend far more on health care then younger people. Internationally, the story is similar. Many nations are moving to increase access to health care services.
Increased access to health care globally means more patients and, consequently, more opportunities for growth of the health care sector. Such growth should be supplemented by an inevitable growth in health care spending on a per-capita basis.
Health care companies have traditionally generated strong free cash flow and are likely to continue doing so.
One influence that remains is the effect of health care reform in the US. Reform will likely increase access for patients and boost volume, helping to offset pricing pressures and cost controls.
Just as doctors advise patients that they shouldn't neglect their health, it would appear that investors would benefit y not neglecting health care stocks in their portfolios
Health care will always be needed and mostly by the older population. So health care stocks are interesting to invest in. They will always have a profit because of the new methods, research and development.
My blog was based upon this article: http://www.investmentnews.com/article/20100411/REG/304119990
Masschelein Liesbeth
2FV4
The sector is still attractive despite recent strong returns and concerns about reform.
Health care stocks have long been regarded by investors as conservative, defensive positions. Their product portfolios include a range of necessary and desirable products.
Health care companies typically hold up well during difficult market environment due to characteristics including patent protection.
The same factors that have made these stocks attractive over the past couple of years remain in place.
Older Americans spend far more on health care then younger people. Internationally, the story is similar. Many nations are moving to increase access to health care services.
Increased access to health care globally means more patients and, consequently, more opportunities for growth of the health care sector. Such growth should be supplemented by an inevitable growth in health care spending on a per-capita basis.
Health care companies have traditionally generated strong free cash flow and are likely to continue doing so.
One influence that remains is the effect of health care reform in the US. Reform will likely increase access for patients and boost volume, helping to offset pricing pressures and cost controls.
Just as doctors advise patients that they shouldn't neglect their health, it would appear that investors would benefit y not neglecting health care stocks in their portfolios
Health care will always be needed and mostly by the older population. So health care stocks are interesting to invest in. They will always have a profit because of the new methods, research and development.
My blog was based upon this article: http://www.investmentnews.com/article/20100411/REG/304119990
Masschelein Liesbeth
2FV4
donderdag 8 april 2010
Virgin Money and Wilbur Ross in RBS branch bid
The article “Wilbur Ross and Virgin Money in RBS bid” talks about the British businessman Richard Branson who wants to buy a part of the banking network of the Royal Bank of Scotland. According to a British newspaper he could count on support of the American billionaire Wilbur Ross.
They have said that Wilbur Ross would be ready to invest 112 billion £ in Virgin Money which is a financial subsidiary company of Branson. Nowadays Virgin Money has around 1.7 billion customers and around 5% market share in the UK. In my opinion these figures aren’t bad at all and there is a huge potential to grow in the future.
Nowadays Mister Ross makes a lot of money by investing in coal and steel and other companies, especially high technological companies.
Branson is very pleased that he has found an ally to buy RBS. Mr Ross is convinced that Virgin Money will be one the big winners due to the take-over. I have my doubts with this take-over because I think both “companies” have not the same objectives and it will be difficult to become on the same line.
The Bank RBS, which has received billions of government support to remain intact in the financial crisis and face the hard economic times is ordered by the EU to sell a large part of their assets and this is a huge drain for the Scottish Bank because they will lose their insurance department.
Virgin Money has refused to give any reaction on the articles published in the newspapers. We have to wait what the future will bring for Virgin Money but it is generally known that there are other possible buyers for example the Spanish bank Santander.
This blog is based on following article:
http://news.bbc.co.uk/2/hi/business/8603324.stm
De Bruycker Mathias
2FV4
They have said that Wilbur Ross would be ready to invest 112 billion £ in Virgin Money which is a financial subsidiary company of Branson. Nowadays Virgin Money has around 1.7 billion customers and around 5% market share in the UK. In my opinion these figures aren’t bad at all and there is a huge potential to grow in the future.
Nowadays Mister Ross makes a lot of money by investing in coal and steel and other companies, especially high technological companies.
Branson is very pleased that he has found an ally to buy RBS. Mr Ross is convinced that Virgin Money will be one the big winners due to the take-over. I have my doubts with this take-over because I think both “companies” have not the same objectives and it will be difficult to become on the same line.
The Bank RBS, which has received billions of government support to remain intact in the financial crisis and face the hard economic times is ordered by the EU to sell a large part of their assets and this is a huge drain for the Scottish Bank because they will lose their insurance department.
Virgin Money has refused to give any reaction on the articles published in the newspapers. We have to wait what the future will bring for Virgin Money but it is generally known that there are other possible buyers for example the Spanish bank Santander.
This blog is based on following article:
http://news.bbc.co.uk/2/hi/business/8603324.stm
De Bruycker Mathias
2FV4
zaterdag 3 april 2010
Accel Invests in Personal Finance Site for Women
This article talks about LearnVest, a new personal finance website for women. LearnVest recently announced it has received an investment of almost $5 million from Accel, a venture capital firm.
Some more background information: LearnVest is founded by Alexa von Tobel in 2006. With LearnVest, she wanted to give women the opportunity to finance their money together or alone with the same purposes. As women have certain issues to plan for, like pregnancy, raising children, etc women get confidence towards the future when their money is wisely invested. LearnVest helps women to find the right investment by sending daily newsletters, and due to the fact women come together on the web and gather their money into one big amount the return also is bigger.
I think this investment will certainly have its effects on the online investment market and will be especially in favor of LearnVest of course. This investment will attract even more women from all over the world to invest their money wisely in efficient companies. Also the online investment market in general will enlarge as people, also men, will get more confidence due to these investments. In my opinion, investments like these show people and companies really have confidence in the online and worldwide investment market.
Sources used: http://bits.blogs.nytimes.com/2010/04/01/accel-invests-in-personal-finance-site-for-women/
Niels Roels
Some more background information: LearnVest is founded by Alexa von Tobel in 2006. With LearnVest, she wanted to give women the opportunity to finance their money together or alone with the same purposes. As women have certain issues to plan for, like pregnancy, raising children, etc women get confidence towards the future when their money is wisely invested. LearnVest helps women to find the right investment by sending daily newsletters, and due to the fact women come together on the web and gather their money into one big amount the return also is bigger.
I think this investment will certainly have its effects on the online investment market and will be especially in favor of LearnVest of course. This investment will attract even more women from all over the world to invest their money wisely in efficient companies. Also the online investment market in general will enlarge as people, also men, will get more confidence due to these investments. In my opinion, investments like these show people and companies really have confidence in the online and worldwide investment market.
Sources used: http://bits.blogs.nytimes.com/2010/04/01/accel-invests-in-personal-finance-site-for-women/
Niels Roels
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