The Forecast projects a moderating
price growth rate in the year ahead, at 4.7 percent from December 2016 to December 2017.
The most recent FNB Property Barometer reported that against expectation, the national house
price growth rate improved on a month - to - month basis throughout last year from a low of 1.5 % year - on - year in December 2016 to 6.1 % for December 2017.
RaiBlocks demonstrated enormous
price growth rate, giving 70 times increase on the investment; Dent provided 23 times capital growth.
Stock: XYZ Initial Investment: $ 50,000.00 Starting Share Price: $ 100 Starting Quarterly Dividend: $ 0.75 Annual Share
Price Growth Rate: 5 % (compounded quarterly) Annual dividend Growth Rate: 5 % (compounded annually)
To create its list, the company «relied on two factors: the overall home
price growth rate since 1991 (our growth factor) and the average odds that a homeowner in a particular market would have experienced significant price declines within the decade after buying a home (our stability factor).»
And, while Millennials have seen their wages increase, it is nowhere near the 7 - 15 % annual home
price growth rates for top metro markets where many Millennials try to live and grow their career.
Not exact matches
Important factors that could cause actual results to differ materially from those reflected in such forward - looking statements and that should be considered in evaluating our outlook include, but are not limited to, the following: 1) our ability to continue to grow our business and execute our
growth strategy, including the timing, execution, and profitability of new and maturing programs; 2) our ability to perform our obligations under our new and maturing commercial, business aircraft, and military development programs, and the related recurring production; 3) our ability to accurately estimate and manage performance, cost, and revenue under our contracts, including our ability to achieve certain cost reductions with respect to the B787 program; 4) margin pressures and the potential for additional forward losses on new and maturing programs; 5) our ability to accommodate, and the cost of accommodating, announced increases in the build
rates of certain aircraft; 6) the effect on aircraft demand and build
rates of changing customer preferences for business aircraft, including the effect of global economic conditions on the business aircraft market and expanding conflicts or political unrest in the Middle East or Asia; 7) customer cancellations or deferrals as a result of global economic uncertainty or otherwise; 8) the effect of economic conditions in the industries and markets in which we operate in the U.S. and globally and any changes therein, including fluctuations in foreign currency exchange
rates; 9) the success and timely execution of key milestones such as the receipt of necessary regulatory approvals, including our ability to obtain in a timely fashion any required regulatory or other third party approvals for the consummation of our announced acquisition of Asco, and customer adherence to their announced schedules; 10) our ability to successfully negotiate, or re-negotiate, future
pricing under our supply agreements with Boeing and our other customers; 11) our ability to enter into profitable supply arrangements with additional customers; 12) the ability of all parties to satisfy their performance requirements under existing supply contracts with our two major customers, Boeing and Airbus, and other customers, and the risk of nonpayment by such customers; 13) any adverse impact on Boeing's and Airbus» production of aircraft resulting from cancellations, deferrals, or reduced orders by their customers or from labor disputes, domestic or international hostilities, or acts of terrorism; 14) any adverse impact on the demand for air travel or our operations from the outbreak of diseases or epidemic or pandemic outbreaks; 15) our ability to avoid or recover from cyber-based or other security attacks, information technology failures, or other disruptions; 16) returns on pension plan assets and the impact of future discount
rate changes on pension obligations; 17) our ability to borrow additional funds or refinance debt, including our ability to obtain the debt to finance the purchase
price for our announced acquisition of Asco on favorable terms or at all; 18) competition from commercial aerospace original equipment manufacturers and other aerostructures suppliers; 19) the effect of governmental laws, such as U.S. export control laws and U.S. and foreign anti-bribery laws such as the Foreign Corrupt Practices Act and the United Kingdom Bribery Act, and environmental laws and agency regulations, both in the U.S. and abroad; 20) the effect of changes in tax law, such as the effect of The Tax Cuts and Jobs Act (the «TCJA») that was enacted on December 22, 2017, and changes to the interpretations of or guidance related thereto, and the Company's ability to accurately calculate and estimate the effect of such changes; 21) any reduction in our credit
ratings; 22) our dependence on our suppliers, as well as the cost and availability of raw materials and purchased components; 23) our ability to recruit and retain a critical mass of highly - skilled employees and our relationships with the unions representing many of our employees; 24) spending by the U.S. and other governments on defense; 25) the possibility that our cash flows and our credit facility may not be adequate for our additional capital needs or for payment of interest on, and principal of, our indebtedness; 26) our exposure under our revolving credit facility to higher interest payments should interest
rates increase substantially; 27) the effectiveness of any interest
rate hedging programs; 28) the effectiveness of our internal control over financial reporting; 29) the outcome or impact of ongoing or future litigation, claims, and regulatory actions; 30) exposure to potential product liability and warranty claims; 31) our ability to effectively assess, manage and integrate acquisitions that we pursue, including our ability to successfully integrate the Asco business and generate synergies and other cost savings; 32) our ability to consummate our announced acquisition of Asco in a timely matter while avoiding any unexpected costs, charges, expenses, adverse changes to business relationships and other business disruptions for ourselves and Asco as a result of the acquisition; 33) our ability to continue selling certain receivables through our supplier financing program; 34) the risks of doing business internationally, including fluctuations in foreign current exchange
rates, impositions of tariffs or embargoes, compliance with foreign laws, and domestic and foreign government policies; and 35) our ability to complete the proposed accelerated stock repurchase plan, among other things.
By contrast, while the cost of older, branded pharmaceuticals continue to rise and contribute to increased spending, when discounting is considered,
prices of these drugs increased, on average, 2.8 % in 2015, the lowest
growth rate in years.
«The first thing to keep in mind is that, in some long run equilibrium, wage inflation should be equal to what the
growth rate of productivity is — so how much workers can produce — and the increase in
prices for the goods they produce,» he said at the UBS Greater China conference in Shanghai.
(Bond yields move inversely with bond
prices, and rising yields tend to signal expectations of higher
growth and inflation ahead and, therefore, higher interest
rates.)
The bank cited the prospect of slower economic
growth in Canada brought about by lower oil
prices as one reason for moderating the
rate.
Citing sluggish
growth abroad and lower oil
prices, the Bank of Canada this morning lowered the overnight lending
rate one quarter of a percentage point, to 0.5 %.
Still, the Fed chairman reiterated his argument that lower
rates boost
growth by helping increase
prices of stocks, homes and other assets.
Currently, the company is trading at about 25 times earnings and with a long - term earnings per share
growth rate of about 15 %, its
price - to - earnings to
growth ratio — a metric used to value fast growing companies — is about 1.4.
Comments: «Admittedly, we are forecasting relatively low
rates of earnings
growth for 2013 given our
price forecasts,» he writes.
One way for
price growth to halt or even fall is for interest
rates to rise.
It also coincides with what Amazon claims is a tripling in the
growth rate of Kindle e-reader sales, thanks to new lower
price points and the rollout of a third - generation version of the device.
In tandem, if wages do not rise at the
rate of house -
price growth, then buying a property becomes more and more unaffordable.
Such risks, uncertainties and other factors include, without limitation: (1) the effect of economic conditions in the industries and markets in which United Technologies and Rockwell Collins operate in the U.S. and globally and any changes therein, including financial market conditions, fluctuations in commodity
prices, interest
rates and foreign currency exchange
rates, levels of end market demand in construction and in both the commercial and defense segments of the aerospace industry, levels of air travel, financial condition of commercial airlines, the impact of weather conditions and natural disasters and the financial condition of our customers and suppliers; (2) challenges in the development, production, delivery, support, performance and realization of the anticipated benefits of advanced technologies and new products and services; (3) the scope, nature, impact or timing of acquisition and divestiture or restructuring activity, including the pending acquisition of Rockwell Collins, including among other things integration of acquired businesses into United Technologies» existing businesses and realization of synergies and opportunities for
growth and innovation; (4) future timing and levels of indebtedness, including indebtedness expected to be incurred by United Technologies in connection with the pending Rockwell Collins acquisition, and capital spending and research and development spending, including in connection with the pending Rockwell Collins acquisition; (5) future availability of credit and factors that may affect such availability, including credit market conditions and our capital structure; (6) the timing and scope of future repurchases of United Technologies» common stock, which may be suspended at any time due to various factors, including market conditions and the level of other investing activities and uses of cash, including in connection with the proposed acquisition of Rockwell; (7) delays and disruption in delivery of materials and services from suppliers; (8) company and customer - directed cost reduction efforts and restructuring costs and savings and other consequences thereof; (9) new business and investment opportunities; (10) our ability to realize the intended benefits of organizational changes; (11) the anticipated benefits of diversification and balance of operations across product lines, regions and industries; (12) the outcome of legal proceedings, investigations and other contingencies; (13) pension plan assumptions and future contributions; (14) the impact of the negotiation of collective bargaining agreements and labor disputes; (15) the effect of changes in political conditions in the U.S. and other countries in which United Technologies and Rockwell Collins operate, including the effect of changes in U.S. trade policies or the U.K.'s pending withdrawal from the EU, on general market conditions, global trade policies and currency exchange
rates in the near term and beyond; (16) the effect of changes in tax (including U.S. tax reform enacted on December 22, 2017, which is commonly referred to as the Tax Cuts and Jobs Act of 2017), environmental, regulatory (including among other things import / export) and other laws and regulations in the U.S. and other countries in which United Technologies and Rockwell Collins operate; (17) the ability of United Technologies and Rockwell Collins to receive the required regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the merger) and to satisfy the other conditions to the closing of the pending acquisition on a timely basis or at all; (18) the occurrence of events that may give rise to a right of one or both of United Technologies or Rockwell Collins to terminate the merger agreement, including in circumstances that might require Rockwell Collins to pay a termination fee of $ 695 million to United Technologies or $ 50 million of expense reimbursement; (19) negative effects of the announcement or the completion of the merger on the market
price of United Technologies» and / or Rockwell Collins» common stock and / or on their respective financial performance; (20) risks related to Rockwell Collins and United Technologies being restricted in their operation of their businesses while the merger agreement is in effect; (21) risks relating to the value of the United Technologies» shares to be issued in connection with the pending Rockwell acquisition, significant merger costs and / or unknown liabilities; (22) risks associated with third party contracts containing consent and / or other provisions that may be triggered by the Rockwell merger agreement; (23) risks associated with merger - related litigation or appraisal proceedings; and (24) the ability of United Technologies and Rockwell Collins, or the combined company, to retain and hire key personnel.
The U.K. had been expected to follow close behind the Federal Reserve in raising interest
rates for the first time in nearly a decade, but with lower commodity
prices and weak wage
growth still keeping a lid on inflation, economists now think that the U.K. may not raise
rates till 2017 — even though new data out Wednesday showed the employment
rate hit a 45 - year high of 74 % in the three months to November.
For the first time since oil
prices crashed, strong job
growth has the Bank of Canada worried about inflation, meaning higher interest
rates are coming
Morgan Stanley lowered its
ratings on several chip stocks, citing lower flash memory
prices and meager earnings
growth next year.
Morgan Stanley lowers its
ratings on several chip stocks, citing lower flash memory
prices and meager earnings
growth next year.
S&P Global
Ratings Tuesday said the economic risks facing financial institutions operating in New Zealand have heightened, partly due to continued strong
growth in residential property
prices.
«While overall
price growth slowed, gains in core
price measures remained firm, leaving the Bank of Canada on track to lift interest
rates two more times this year,» Alicia Macdonald, the Conference Board of Canada's principal economist, said in a statement.
Housing
prices in Pennsylvania grew just 2.6 % between Q3 2014 and Q3 2015, the seventh - lowest
growth rate among the states and DC.
Housing
prices in Arizona rose 8.3 % between Q3 2014 and Q3 2015, the seventh - highest
growth rate in the country.
Texas» housing market has been improving, with housing
prices rising 7.5 % between Q3 2014 and Q3 2015, the 10th - highest
growth rate among the states and DC.
Housing
prices in Colorado increased 12.7 % between Q3 2014 and Q3 2015, the second - highest
growth rate among the states and DC.
Having acquired so much debt, Canadians are vulnerable to
rate increases, and housing
price gains have vastly outpaced wage
growth.
The more consequential reforms — such as introducing market - based interest
rates, reducing excess capacity, subjecting state - owned enterprises to increased competition and financial discipline, enforcing strict environmental laws, and raising
prices of natural resources — are expected to depress
growth.
Let's say that, over the next two years, the QE taper pushes
rates on the most popular 30 - year mortgages up to 5.5 %, from 4.5 % today, and home
price growth slows to 5 % year - over-year from the current 12 %.
The economy at that time benefited from much higher
rates of productivity
growth, which allowed employers to raise pay and hire more without having to lift
prices.
The key number here is the PEG ratio — a company's forward four - quarter
price - to - earnings ratio plus its future annual earnings - per - share
growth rate.
The real estate bubble in Canada won't collapse and
prices will keep a
growth rate of 6 % for the next 21,054,656,706,543,581 years.
These risks and uncertainties include: Gilead's ability to achieve its anticipated full year 2018 financial results; Gilead's ability to sustain
growth in revenues for its antiviral and other programs; the risk that private and public payers may be reluctant to provide, or continue to provide, coverage or reimbursement for new products, including Vosevi, Yescarta, Epclusa, Harvoni, Genvoya, Odefsey, Descovy, Biktarvy and Vemlidy ®; austerity measures in European countries that may increase the amount of discount required on Gilead's products; an increase in discounts, chargebacks and rebates due to ongoing contracts and future negotiations with commercial and government payers; a larger than anticipated shift in payer mix to more highly discounted payer segments and geographic regions and decreases in treatment duration; availability of funding for state AIDS Drug Assistance Programs (ADAPs); continued fluctuations in ADAP purchases driven by federal and state grant cycles which may not mirror patient demand and may cause fluctuations in Gilead's earnings; market share and
price erosion caused by the introduction of generic versions of Viread and Truvada, an uncertain global macroeconomic environment; and potential amendments to the Affordable Care Act or other government action that could have the effect of lowering
prices or reducing the number of insured patients; the possibility of unfavorable results from clinical trials involving investigational compounds; Gilead's ability to initiate clinical trials in its currently anticipated timeframes; the levels of inventory held by wholesalers and retailers which may cause fluctuations in Gilead's earnings; Kite's ability to develop and commercialize cell therapies utilizing the zinc finger nuclease technology platform and realize the benefits of the Sangamo partnership; Gilead's ability to submit new drug applications for new product candidates in the timelines currently anticipated; Gilead's ability to receive regulatory approvals in a timely manner or at all, for new and current products, including Biktarvy; Gilead's ability to successfully commercialize its products, including Biktarvy; the risk that physicians and patients may not see advantages of these products over other therapies and may therefore be reluctant to prescribe the products; Gilead's ability to successfully develop its hematology / oncology and inflammation / respiratory programs; safety and efficacy data from clinical studies may not warrant further development of Gilead's product candidates, including GS - 9620 and Yescarta in combination with Pfizer's utomilumab; Gilead's ability to pay dividends or complete its share repurchase program due to changes in its stock
price, corporate or other market conditions; fluctuations in the foreign exchange
rate of the U.S. dollar that may cause an unfavorable foreign currency exchange impact on Gilead's future revenues and pre-tax earnings; and other risks identified from time to time in Gilead's reports filed with the U.S. Securities and Exchange Commission (the SEC).
Slower
price growth could also offset the impact of rising interest
rates and slow the erosion in affordability.
«We believe the bias for stock
prices in general remains to the upside, underpinned by a growing economy, low interest
rates and increasingly, cheaper oil... With operating margins at elevated levels, top line
growth is poised to more quickly bleed through to the bottom line, thus supporting earnings.»
Commentary: «Revenues were up 8.3 % for the third quarter versus the prior - year period, due primarily to higher commodity
prices impacting the Company's supply chain revenues, higher same store sales in both domestic and international stores, store count
growth in international markets and the positive impact of changes in foreign currency exchange
rates.»
Right now with earnings
growth very strong and the bond market already reflecting a fair amount of Fed tightening (
pricing in 5
rate hikes over the coming 2 years), my sense is that the stock market is in OK shape to withstand some tightening of financial conditions and not unravel in the process.
Broadly, we still prefer equities over credit due to strong earnings
growth, modestly cheaper valuations following last month's swoon and market's
pricing in expectations of Fed
rate increases.
GDP grew by 0.55 percent in the second quarter of the year, which, although a meager
growth rate, was welcomed because it signaled Nigeria's exit from the recession that it plunged into due to the oil
price crash.
The wage pop [last Friday's 2.9 %
growth in hourly wages] spooked the markets because investors, already skittish as valuations were a bit steep (though not as bad as people have been saying, given strong current and expected corporate earnings), envisioned this sequence: wage
growth gooses
price growth (i.e., inflation), which raises both market and Federal Reserve interest
rates, which slows
growth and shaves corporate profit margins.
There were a few reasons: the transition from Fed quantitative easing to anticipation of interest
rate hikes and worries about the impact of lower commodity
prices and slowing Chinese
growth.
According to a recent Morgan Stanley Research report, U.S. commercial real - estate
pricing in 2017 could drop by as much as 10 %, year over year, amid slowing revenue
growth, rising interest
rates and tightening lending conditions.
Bond
prices have fallen, and their yields have risen, amid speculation that
rates and inflation will climb as the economy shows added
growth.
TORONTO, September 14, 2016 - Canadian economic
growth will snap back after a second - quarter contraction and will get further lift in 2017 from rising energy
prices, low interest
rates, and federal stimulus, according to the latest RBC Economics Outlook report.
Rising interest
rates might cause
prices to slow in
growth (and yes, cash buyers won't care, so an AirBnB IPO might create a lot of new cash buyers).
Although we knew that lowering the policy
rate could worsen vulnerabilities related to household debt, we also knew that it would counter the risk that
growth would crater and lessen the probability that the oil
price shock would trigger financial stability risks.
BOB PISANI, NIGHTLY BUSINESS REPORT CORRESPONDENT: The markets are facing a trifecta of issues, higher earnings that could already be
priced into the market slower global
growth and finally higher
rates.