Life is in the living, not the grave; joy is in hope, not receipt. Nothing is ever as fulfilling as we can imagine. And so it is with the stock markets that, at bottom, are a barometer of people’s moods.
A broad range of US companies reined in estimates of 2019 growth last week, most notably Amazon. Last week, we noted that any corporate concerns about next month’s profit and revenue growth would weigh heavily on stock markets and we were correct.
The S&P 500 slumped 3.9% in dollar terms, putting it 9.3% down from its peak in September. Other markets followed the American bourse downward, although the UK held up better with a cheaper pound lending some support amid Brexit worries.
The Environmental Association for Universities and Colleges (EAUC) has launched a new guide that highlights the business benefits of sustainability and explains why it is key to the success of higher education institutions.
Apart from some fairly benign congressional hearings, America’s tech giants have faced minimal scrutiny at home. The European Union has been active, though, fining Alphabet €2.4bn in June for misusing the dominance of its Android operating system and now investigating Amazon’s possible misuse of data on sales made by its third-party merchants. What will it take for the US government to take aim at these behemoths?
The past 18 months have been monumentally important for women around the world. The women’s suffrage movement turned 100, #metoo continues to transform gender equality and figures on the gender pay gap revealed that many women are still being short-changed in the workplace. These forces are driving great advancements for women, in their personal lives and also at work, and women’s entrepreneurship is surging in the UK.
Entrepreneurship is moving in the right direction
For answers about the global stock market dip of the past couple of weeks, we think you need to look at the bond market. That, mixed with some jumpy robots, is most likely the cause, we believe.
The US market stabilised last week. Well, on the surface, at least.
Trouble in some emerging markets (EMs) has pushed yields for EM debt in general to attractive levels relative to safer developed market bonds. The crucial question for investors is whether the problems in Argentina and Turkey are localised or could spread to other regions. Investors have been spooked and EM currencies remain under pressure, but have markets over-reacted?