The last few years haven’t done wonders for the reputation of the pharmaceutical industry. In 2015, Turing Pharmaceuticals faced public outrage after hiking the price of Daraprim, a drug used to treat the parasitic disease toxoplasmosis in vulnerable populations such as pregnant women and AIDS patients, by more than 5,000 percent. This year, Mylan is embroiled in an ongoing controversy after the price of its emergency allergy treatment EpiPen increased sixfold in under a decade. Meanwhile, both major U.S. presidential candidates have promised voters that they will work to lower consumer drug prices. The combination of bad publicity and potential government interference has weighed on healthcare stocks. After the Turing news broke and Democratic candidate Hillary Clinton pledged to tackleRead More »
Articles by Alice Gomstyn
When it comes to professional advancement, women can be their own worst enemy, right? That’s pretty much an accepted fact at this point. But is it true? For years, feminists and workplace diversity proponents have grappled with the suggestion that high-ranking women actively limit the advancement of their female subordinates, a phenomenon known as Queen Bee syndrome. Female executives, the thinking goes, believe that there is limited room for women at the top, so preventing others from reaching the upper echelons of management is an act of self-preservation. But a new study by the Credit Suisse Research Institute suggests that there aren’t as many Queen Bees as conventional wisdom might suggest. Female executives, it seems, are actually more likely to promote women who work under them thanRead More »
In the years before the 2008 financial crisis, investors flocked to equities in fast-growing emerging economies. But when the crisis put the brakes on global growth, that attraction to emerging markets proved a fickle one, and investors sought safe haven in less risky investments. In late 2016, however, the pendulum is swinging back again, with investors citing several reasons for renewed confidence in emerging market equities. Among the most surprising? Their politics are relatively more stable than in the developed world. Start with Latin America: In Brazil, embattled president Dilma Rousseff was ousted in August and her successor, Michael Temer, is advocating pro-business measures such as the auctions of infrastructure and energy contracts to private companies that won’t, unlike inRead More »
Will the recent upheaval in Brazil’s political leadership lead to a stronger economy? Investors certainly think so. Fueled by anticipation of embattled president Dilma Rousseff’s impeachment and economic reforms by her replacement, Michael Temer, the Bovespa has jumped more than 50 percent since late January. In the week after Rousseff’s official ouster on August 31, the index rose a full 4 percent, and Brazilian consumer confidence reached its highest level since January 2015 that same month. But Brazil’s rising economic tide won’t lift all boats equally. Equity strategists on Credit Suisse’s Global Markets team have highlighted those sectors best poised for a strong recovery themselves. Consider the real estate sector, specifically shopping malls. Things haven’t been so good of late:Read More »
Latin American airline profits came in for a hard landing last year as the region’s economic woes grounded would-be passengers. Brazil-based Gol Linhas Aéreas posted a record-breaking loss of more than R$4.4 billion for the year, while Chile’s LATAM airlines reported a loss of US$219 million of its own. But this year promises loftier profits for the industry. And the prognosis is as simple as they come: As macroeconomic conditions improve across the region, Credit Suisse says airlines’ profit margins and stock performance will follow. Brazil’s battered economy, the largest in the region, looks set to finally start growing again next year, while Argentina’s economy is expected to grow 3.2 percent, rebounding from this year’s decline. The first part of the airline investment argumentRead More »
Does the recent stabilization in oil prices portend better times ahead for energy companies? Investors in oilfield services companies (OFS), which provide equipment and support to exploration and production companies, certainly think so, as evidenced by the fact that the stocks of several such companies up by double-digit percentages this year. Can the rally continue? Equity strategists from Credit Suisse’s Global Markets team think so.
Why? The answer lies in a single number: the oil rig count. When oil prices began their slide in the summer of 2014, U.S. drillers stayed optimistic, and continued sending new oil rigs out into the oil patch. That October, the number of active rigs dotting American oil fields reached a record 1,609, according to energy services firm Baker Hughes. But the
Global equities have had quite the comeback since the Brexit referendum. After plummeting more than 5 percent in the two trading days following the surprise “Leave” result of the June 23 referendum, the S&P 500 took just ten days to reach a new all-time high. The Euro Stoxx 50 and MSCI All-Country World Index have likewise climbed, with both up more than 10 percent from their post-Brexit troughs. Can the rally continue? Equity strategists on Credit Suisse’s Global Markets team believe that it will, and that the upward march in global stocks will continue into 2017.
That optimism is rooted in good news on the manufacturing front. New orders in the U.S. boosted the Markit purchasing managers index (PMI) to an eight-month high in July, while new orders increased in 12 of 18 industries
Chinese firms are going on an international shopping spree and their interest in Europe may spur a revival in the continent’s M&A market.
The post Europe’s New M&A Patron: China appeared first on The Financialist.
The gold mining industry has a glittering future, but rising gold prices are only part of story.
The post Gusto for Gold Mines appeared first on The Financialist.
Once corporations in China could reasonably assume that, in the face of trouble, their government would help them avoid defaulting on their bonds. But Beijing seems to have abandoned this “soft guarantee.”
The post Rocky Ratings in China appeared fi…
Asian countries, already struggling with declining exports, face new challenges in the aftermath of the United Kingdom’s Brexit vote. Central bankers from Indonesia to Vietnam have room to reduce interest rates, though, and they likely will do just …Read More »
A handful of Asian frontier markets, including Mongolia, Sri Lanka and Vietnam, offer a mix of compelling growth prospects for savvy investors.
The post Frontier Markets: Asian Countries Are on the Move appeared first on The Financialist.
With rates cuts and conventional quantitative easing demonstrating diminishing returns, what are central bankers to do?
The post Next Up for Central Banks: Infrastructure Investments? appeared first on The Financialist.
Forget superyachts: Some sophisticated seafarers traverse the waves in decades-old wooden yachts that have been restored to their former glory, and then some.
The post Seafaring in Style appeared first on The Financialist.
Is the U.S. housing recovery still on firm footing?
The post They Will Come, Even If You Don’t Build It appeared first on The Financialist.
Three tech giants recently reported earnings misses, but that doesn’t mean the whole sector is in trouble. The situation, in fact, is quite the opposite.
The post Is It Time to Worry About Tech? appeared first on The Financialist.
European equities have underperformed due to the pressure of a strong euro, technological disruption and political issues. But they’re not down for the count: A number of promising developments should help bolster the continent’s stocks.
The post Eu…
Though the M&A frenzy seen last year is unlikely to repeat itself in 2016, companies are still confident about pursuing acquisitions, Robin Rankin, Credit Suisse’s co-head of Global Mergers and Acquisitions, said at a recent M&A panel discussion hos…Read More »
Though U.S. equities have been beating earnings expectations, expensive valuations, fewer buybacks and sluggish global industrial production growth may hamper stock performance for the remainder of 2016. What’s an investor to do? Think small.
Frontier markets are collectively known for their high growth potential, but their individual demographics and economic characteristics vary widely from country to country. Investors who ignore these differences do so at their own peril.
The post Fr…
Though consumers in the emerging world were less optimistic about spending following a tough 2015, upwardly mobile young people were more inclined to open their wallets. Their shopping preferences will likely shape consumption in emerging markets f…Read More »
With the number of new Internet users expected to level off, China’s Internet giants are expanding far beyond their core businesses to drive growth.
The post China’s New Conglomerates appeared first on The Financialist.
Technological innovation, new regulations and threats from China’s growing businesses are making a host of industries vulnerable to disruption. At least a few, however, should remain relatively unscathed.
The post What It Takes to Escape Disruption …
Historically, value stocks have tended to outperform momentum and quality stocks, but that’s not been the case in the last two years. What’s behind the value strategy’s fall from grace?
The post The Fall of Value and the Search for Quality appeared …
Don’t let a handful of negative indicators fool you: The U.S. is not in a recession now and is unlikely to fall into one this year, Credit Suisse economists say.
The post The Case Against a U.S. Recession appeared first on The Financialist.
Can the European economy withstand the economic shocks reverberating from China? For the most part, the answer is yes, thanks to an export sector that has little exposure to the Middle Kingdom. But there are a few pockets of vulnerability.
The post …
There are many reasons for investors to feel gloomy about China’s economy, but there are also a handful of investing opportunities tied to the Middle Kingdom, including Japanese equities and European auto parts makers.
The post Weathering China’s Slo…
From the potential for further easing by the European Central Bank to a resilient regional economy, a host of factors play into an increasingly promising forecast for European equities.
The post Europe’s Turn to Shine appeared first on The Financial…
It pays to be in the payment business: Bank infrastructure updates, credit card security changes and new health care payment rules will drive long-term growth for fintech payment firms.
The post Fintech’s Digital Payday appeared first on The Financia…
The use of social media to inform trading decisions has caught fire in recent years. Social media analytics firms say they’ve put tools in place to weed out valuable information from the noise.
The post Market Intel: Separating the Tweet From the Cha…