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Premarket Stocks: The light money boom is coming to an end



However, with the global economy slowing, dividend growth has fallen back to the bottom.

"We have warned investors year-round that the rapid growth in income they have seen in recent years will return to more normal levels," said asset manager Janus Henderson in a report released Monday. The trend started in the second quarter and continued in the third. Although the company has not yet finalized its outlook for 2020, it expects more for next year.

"We are experiencing very low growth and a dull economic environment," said Jane Shoemake, Investment Director of Global Equity Income.

Shoemake pointed out that even in this environment, companies "still make a good living". For example, energy companies that restructured their business when oil prices fell, promoted recent growth.

Figures: Janus Henderson expects dividend payments to increase by 3.9% in 201

9 over the previous year. It continues to forecast a record of $ 1.43 trillion.

The Big Picture: In 2017, the world saw synchronous economic growth, while the corporate earnings bonus of 2018 was fed by the sugar price of US tax cuts. That would not take forever. While economic growth continues to grow, the light returns of recent years are becoming increasingly difficult to achieve. Share buybacks are also slowing down.

Aramco's more modest IPO could still dethrone Alibaba Wanted by Crown Prince Mohammad bin Salman, but high enough to prepare the wave for a record IPO before the year's end.

  The most valuable company in the world: Saudi Arabia sets its oil monopoly at 1.7 trillion dollars

On Sunday gave Saudi Aramco announced that its sales target was 1.5% of its 200 billion shares in a partial privatization for every 30 riyals (8 USD) to 32 riyals (8.53 USD).

At a higher price, Aramco would record the largest IPO of all time. It would raise more than $ 25 billion and remove the crown from Alibaba's public debut in 2014.

That's not all. With a value between $ 1.6 and $ 1.7 trillion, Aramco would be the most valuable company in the world. Currently, this title Apple worth $ 1.18 trillion.

However, this victory is overshadowed by the fact that the IPO is more modest than originally announced. Low oil prices, the climate crisis and geopolitical risk have aroused the skepticism of international investors and could force the Saudi kingdom to rely on rich indigenous families, sympathetic sovereign wealth funds or major clients such as China, who register for equities.

: The stock price is set on December 5, and trading on the Saudi Stock Exchange is expected to start later this month.

Equities are back in fashion

In August, the world's largest asset manager told its clients It was time to sell shares – the first time since the eurozone crisis that it had this advice.

Now UBS sticks to his bearish warning. This is further evidence of investors' recent stance that a slowdown in economic growth is not an indication of a looming recession and gives stocks a longer maturity to drive higher prices. This is not exactly a bullish position, but far less gloomy.

UBS Global Wealth Management's Chief Investment Officer Mark Haefele highlighted four reasons why the bank is more optimistic in a recent announcement to clients: 1) US and China trade talks, 2) Increased momentum through central banks, 3) more reasonable expectations on corporate profits, and 4) preliminary signs of economic stabilization.

The prevention of an almost bullish attitude is an insecurity for the trade. "Of course, we must acknowledge that geopolitical gains can quickly vanish," Haefele wrote, noting that President Donald Trump claims to have "not agreed" with China.] The September US cash flow data arrives at 4:00 pm ET.

Tomorrow: New Data on the US Real Estate Market.


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