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Stock markets broke records and the banking monster did not come

Comedian Brexit is gaining momentum again, good news from Germany can lead to a European banking union and stock markets can grow. Read the selection of the most interesting news from the world of business and finance.

Are Stock Markets Too High?

Stock markets have set new records, which traditionally open the way for overestimated stocks and a possible recession. The US S & P 500 stock index received up 300% from March 2009, which looks bombastic, but it was due to the large drop that preceded this growth.

When we compare the value of shares to the profits of the companies they represent, their value has not gone beyond the average since World War II. In other words, the value of the stock is healthy and reasonably reflects the profits of the companies.

In addition, so-called FANG actions, such as Facebook, Apple, Netflix and Google (now the Alphabet), increase that diameter. The value of these stocks is well above the levels that should be traded on their earnings – which is also good, investors appreciate the technological advantage or strength companies have in their markets.

Another important factor is the investor sentiment. Huge falls do not come when we worry about crises every week, just the opposite is true. So we know the ancients – the best time to invest was yesterday, the second best time is today.

Unexpected Common Sense Victory

The unsecured banking monster does not arise, talks between Deutsche Bank and Commerzbank fell. Almost everyone involved disagreed with the connection, the motive was very prosaic – it was a very stupid idea.

Especially Deutsche Bank remains a problem and has to deal with its problems and costs alone. On the other hand, Commerzbank has become a free and sufficiently attractive bank that can find a replacement partner, for example in the form of French BNP Paribas.

Such a marriage could trigger a series of similar cross-border connections in the euro area, pushing for the conclusion of the European banking union. This is a necessary condition for a functional and economically successful monetary union.

Fortunately, common sense has led to dubious political interests and catastrophic merger has been avoided. In a second step, this tie must be turned into a victory and the next step of deeper European integration has begun.

Traditional Potpourri

The Slovak economy continues to show positive values. Unemployment has dropped to 5.03% in March, but it will be even nicer for the decline in all regions, not just in the Western Slovak phenomenon. More than 4% of the unemployed received more than half of all districts.

After years of promises and deferrals, Uber is serious about entering the stock market. The estimated cost per share is 44 to 50 per share, so the total value of the business can reach 84 billion.

Alternative taxi service is extraordinarily cautious, the original bombing plan spoke more than $ 100 billion. But caution is in place after competing with Lyft apparently overestimated its stock and managed to erase almost 30% of its value since it entered the stock market.

In Britain, Nigel Farage, a strong return, took over a conservative with his Brexit party. She runs the country in her convertible car, turns up beers in bars, and raises voices in hundreds of thousands.

Unprepared for responsibility for the country's management or Brexit, he is struggling to win the elections to the European Parliament. In the current state of British politics, new parliamentary elections are also not ruled out, where a pleasant outcome can also be expected. The question is whether Farage really wants it – it's an anti-system policy that can only shout and evade responsibility.

More reading for curious:

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The man who circled the world with the girl

The author is chief analyst at Finax – Intelligent Investment

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