By leon
As the year draws to a close, we can once again say that 2024 has been a strong vintage for investors. Looking ahead, 2025 will certainly bring new challenges. During the festive season, we plan to take a brief creative break to reflect on the year gone by and prepare for what lies ahead. On … Continued
By leon
Novo Nordisk—Europe’s largest listed company by market capitalization—saw its stock price plummet by 21% on Friday following the release of underwhelming results for its latest weight-loss drug, Cagrisema. In a late-stage trial, patients lost 22.7% of their body weight, falling short of the 25% reduction Novo Nordisk had targeted and only narrowly surpassing the results … Continued
By leon
Over the past 25 years, China has risen from near obscurity to claim the top spot in global automotive manufacturing, now accounting for 39% of worldwide production. Given that non-luxury car making has always been a numbers-driven business dating back to the era of the Ford Model T, it will be increasingly difficult for legacy … Continued
By leon
As the price of gold has risen by 28.6% in USD terms in 2024, we believe the primary driver of this increase is heightened central bank purchasing. The renewed emphasis on gold as a strategic reserve may be fueled by inflationary concerns and the desire of non-U.S. central banks to reduce their dependence on the … Continued
By leon
Excluding NVIDIA from the S&P 500 reveals that European stocks have performed on par with their U.S. counterparts since the start of the current bull market in October 2022. As the old saying goes, “If you torture the numbers enough, they’ll eventually give in.” This graph’s narrative, however, hinges on the careful choice of starting … Continued
By leon
A fascinating study by Citigroup on the rise of AI-powered robots and humanoids ( Citi GPS – The rise of AI robots – Dec 24 ) predicts that over 1.3 billion AI-driven robots will inhabit the Earth by 2035, with this number soaring to 4 billion by 2050. Key applications are expected to include autonomous … Continued
By root
The higher valuations of U.S. equities are largely driven by a clear advantage in profitability, both compared to their own historical levels and to European counterparts. Over the past decade, S&P 500 companies have boosted their return on equity (ROE) by approximately 5%, now standing over 4% higher than that of major European firms.
By root
Philips shares dropped 17% yesterday following third-quarter results that fell short of expectations, prompting the company to lower its full-year comparable sales forecast. Management cited weakness in the crucial Chinese market, which accounts for 7.7% of 2023 sales, due to low consumer confidence and an ongoing anti-corruption campaign affecting the healthcare sector. We see the … Continued
By root
The IMF has released its updated economic growth forecasts for 2025, projecting global real GDP growth to hold steady at 3.2%. While growth is expected to moderate in both China and the U.S., the latter is likely to remain the world’s primary economic driver. Among the major economies, only India and China are expected to … Continued
By root
One of ECP’s five key quarterly investment themes highlights the United States’ dominant role as the primary driver of the global economy. Today’s graph illustrates this perspective by comparing GDP growth and key leading indicators—Manufacturing and Services PMIs—for both the US and Europe. Two key takeaways emerge. Firstly, the US GDP continues to expand, while … Continued