Cash-holders can smile, but companies must look to costs
Article Abstract:
US stock prices have fallen by some 10% and European stock prices are affected by trends in the US. Falling interest rates, low inflation and slow growth are not helpful for corporate profits though they may bring other benefits. Companies are having to cut costs, and this is one reason for a large number of mergers. The US has a quarterly reporting system which means that there is little delay in news, whether it is good or bad. US profit expectations have collapsed, and this is being interpreted by bulls as linked to specific factors such as a strike which affected General Motors. Meanwhile, German stocks have performed well.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
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An unappreciated technological miracle
Article Abstract:
Technological change has helped to make companies more profitable and has pushed up profits, and this justifies higher stock prices, both in the US and the United Kingdom. UK companies have a higher return on equity than do US companies, despite a slowdown in the UK economy in 1998. UK investment in plant and machinery has increased as a proportion of gross domestic product. There are still risks that the UK market could be hit by international events or that profits could be squeezed by increased competition or higher costs for raw materials or higher wages.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1999
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The paradox of profits
Article Abstract:
The significance of US profit warnings for stock price performance at a time when the economy is performing well is examined in detail.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 2000
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