Research done at the Bank of Canada and elsewhere, including conversations with business leaders, suggests that the main cause
of weak investment is the high level of uncertainty that companies are facing, particularly about future demand prospects.
So when economic growth slows because
of weak investment, trade slows disproportionately.
Not exact matches
Increased venture capital
investment in a number
of provinces, along with lagging
investment in European countries since the recession, has vaulted Canada from being one
of the
weakest to one
of the strongest countries on this indicator.
LONDON, May 2 - Gold steadied on Wednesday near 4 - month lows as the dollar's uptrend paused, but prices
of the precious metal are expected to remain under pressure from a significantly stronger U.S. currency and
weak investment demand.
«Persistent conflicts and their regional spillovers, security concerns,
weaker - than - anticipated public
investment (Afghanistan, Jordan), delays in implementation or completion
of structural reforms (Jordan, Morocco, Pakistan, Tunisia), and political and policy uncertainty (Lebanon, Pakistan) continue to weigh on growth.
When the U.S. Federal Reserve chose to hold rates in June, it specifically called out
weak business
investment in that country by way
of explanation.
«Because we are in the hospitality and recreation business, which is largely dependent on discretionary spending,» the company's latest financial report explains, «we believe that the
weak housing market, increases in unemployment, decreases in air flights to Las Vegas, decreases in the value
of stock and other
investments, and the general tightening
of spending on business travel have all affected visitations to Las Vegas and the spending budget
of our customers.»
While credit risk might seem like a bad idea with the U.S. economy still
weak and the rest
of the world looking equally uncertain, high - yield bonds do offer bigger returns than government and
investment - grade bonds.
The four conglomerates originated in different sectors, but their underlying business model is the same: cultivate powerful allies in the Communist Party; use those relationships to win regulatory and property concessions; gather
investment from friends, family and other proxies
of party elites into a murky, unregulated private holding company; borrow heavily from state - owed banks and other sources to finance prodigious growth plans; invest as aggressively as possible in stock and property overseas as a hedge against slower growth in China and the risk
of a
weaker Chinese currency.
The
weakest aspect
of Canada's economy this year was the feeble performance
of private
investment, projected by the Conference Board
of Canada to contract by nearly 8 per cent compared to 2014 levels.
Investors are increasingly unable to meet VC's capital calls and are unloading their
investments at «deep discounts,» raising the prospect
of the shutdown
of weaker venture firms.
Oil prices are higher, but not high enough to inspire new
investment in the oil patch, where retrenchment has lead to «very
weak» overall business
investment, the Bank
of Canada said.
Canada has posted some
of its
weakest economic growth outside
of a recession over the past couple
of years in part because business
investment sunk along with the price
of oil.
In July, when the Bank
of Canada cut its policy to its current setting
of 0.5 %, policy makers expressed concern over
weak non-energy exports and a deep contraction in business
investment brought on by the collapse
of commodity prices.
Conversely, in light
of weak oil prices, firms in energy - related regions and sectors plan to further curtail
investment over the next 12 months.
Last year, and for the first time since 2001, the contribution
of net exports to overall growth turned positive, but the performance
of non-energy exports and
investment remains
weak.
Meanwhile, exports and
investment are still
weaker than one would expect at this stage
of the business cycle, even though growth in the global economy has also surprised on the upside.
Business
investment is
weak except for mergers that create economies
of scale, less jobs, less competition, less money available for R&D and improved productivity.
GDP growth likely stalled in the fourth quarter
of 2015, pulled down by temporary softness in the U.S. economy,
weaker business
investment and several other temporary factors.
Recent work at the Bank
of Canada and elsewhere shows that about half
of the slowdown in trade growth among advanced economies in the post-crisis period can be explained by
weak economic activity, especially sluggish business
investment.
«In recent quarters,
weaker foreign demand has dampened business
investment, and low oil prices have weighed on energy - related
investment, both
of which have typically led to slower PDFP growth.
The weakness in the U.S. dollar is essentially a reflection
of very
weak demand conditions in the U.S., both for goods, and for U.S. security
investments by foreigners.
«The expectations were low already, so when you think about JPMorgan — and this also relates to Bank
of America and Citigroup — JPM met or slightly exceeded expectations, but the macroeconomic environment is
weak, and that really bled through into some
of the
investment banking results.
So, for example, I would argue that in the early stages
of reform, especially in countries that have suffered many years
of terrible economies and
weak investment, crony capitalism can be consistent with high levels
of growth because the kinds
of programs that lead to growth — mostly massive
investment programs in countries in which capital stock is excessively low — benefit the elites directly.
Because China begins the process with the highest
investment level in history, the extent
of the transformation must exceed that
of any other case, and it must occur at a time when
weak Chinese demand is compounded by
weak global demand, thereby reducing productive
investment opportunities for the private sector.
In a context
of continued
weak investment at the global level, any additional uncertainty has the potential to keep businesses on the sidelines longer.
The value - conscious, historically - informed, risk - managed, full - cycle discipline
of the Funds is intended to achieve long - term
investment returns, while reducing sensitivity to general market fluctuations in conditions that have historically been associated with
weak or negative market return / risk profiles.
There was a
weaker correlation between the ability to trade (daily trading volume, issue size and frequency
of zero - trading days) and credit spreads for both
investment - grade and high - yield markets.
The
weaker profile for business
investment suggests that, in the near term, growth in potential output is more likely to be in the lower part
of the Bank's range
of estimates.
Nouriel Roubini, one
of a handful
of economists said to have foreseen the financial crisis, counts 10 things that could cause trouble, if they aren't doing so already, including the bursting
of asset - price bubbles, unusually
weak business
investment, and extreme income inequality.
GDP growth was relatively
weak, as was business
investment (as distinct
of course from housing over-
investment).
The downward revision reflects further downgrades
of business
investment plans in the energy sector, as well as
weaker - than - expected exports
of non-energy commodities and non-commodities.
As the Canadian economy contends with softer than expected exports,
weak business
investment and effects
of the Alberta wildfires, real GDP growth in 2016 is forecast to be 1.4 per cent...
To ensure sustainable growth, it needs to reduce the dependence on exports and fixed asset
investment and to increase domestic consumption — but the rate
of consumption growth remains
weak.
As I mentioned earlier, business
investment collapsed during the Great Recession, and its much -
weaker - than - expected recovery since, despite historically low financing rates, has been a major source
of disappointment in advanced economies.8
Cap - ex is
weak but this is a function
of depressed cash flow in the resource sectors that drove the prior run - up in
investment spending.
2016.06.10 Canadian economic activity erratic through 2016: RBC Economics As the Canadian economy contends with softer than expected exports,
weak business
investment and effects
of the Alberta wildfires, real GDP growth in 2016 is forecast to be 1.4 per cent...
A
weaker dollar is beneficial to oil and other dollar - denominated commodities, as it makes them cheaper to holders
of other currencies, broadening their
investment appeal.
They know that a system
of paying for transactions, advice in the form
of product recommendations, obscure disclosure
of costs, and
weak reporting benefit the
investment industry more than investors.
Further suggested reading:
Investment Masters Class Tutorial -
Weak Market, Pessimism, Uncertainty & Panic Giverny Capital -[Francois Rochon] 2008 Letter «The Opportunity
of a Generation»
While insurance sector M&A has cooled off after a bumper 2015 due to what many players see as over-inflated valuations, soft insurance markets, increasing competition, higher claims and
weak investment yields are putting profitability under pressure, meaning that M&A remains a possible source
of growth according to Credit Suisse.
While a rising dollar hurts the near - term performance
of non-U.S.
investments (when translated back into dollar terms), over longer timeframes
weaker foreign currencies can improve the competitiveness
of businesses outside
of the U.S..
«I turn down many otherwise down attractive
investments because
of their
weak balance sheets, and I believe that this discipline is a material reason for our success over the years.»
As referenced above, Kite is not immune to
weaker tenants like Toys - R - Us and Bed, Bath, & Beyond; however, many
of Kit's top tenants are
investment grade - rated:
Although
investment has been
weak, the
investment intentions data imply that most
of the decline in business
investment has already occurred.
On the spending side
of the ledger, the priorities have been agriculture support (after two
weak monsoons), rural development spending, infrastructure
investments and a massive structural shift to direct benefit transfers deposited in the bank accounts
of beneficiaries — made possible by the extraordinary biometric identity card program (Aadhaar) covering 950 million people, and the impressive financial inclusion initiative which has opened over 200 million new bank accounts for impoverished families.
They confirmed, at that point, a picture
of very strong business
investment; declining government
investment, as earlier fiscal stimulus is unwound; relatively flat dwelling
investment; and
weak commercial construction.
Credit Suisse was one
of the worst performers for the quarter due to a
weaker investment banking environment and because
of negative comments about Credit Suisse in the Swiss National Bank's (SNB) recent annual Financial Stability report.
Though these times are frustrating for our shareholders — and, remember, that includes all
of the portfolio managers — these periods
of weak performance have been opportunities for additional
investment rather than reasons to give up on our
investment philosophy.
Through most
of this recovery, the
weakest component
of demand in non-Japan Asia has been
investment.