[TE Summary] Jun 15th 2017 Fizzing - Corporate Europe is giddy with optimism
Fizzing
Corporate Europe is giddy with optimism
Emmanuel Macron's arrival on the scene has transformed the mood
http://www.economist.com/news/finance-and-economics/21723422-economists-and-federal-reserve-are-not-about-abandon-phillips
Print edition, business, Jun 15th 2017
Summary
1. Macron's arrival with giant victory in parliamentary elections has brought about optimisms on the outlook of Europe.
2. Mr. Mestrallet displayed expectations on "de-blocking" of Mr. Macron such as legislative reform of a rigid labor hour market to simplify rules on hiring and firing and tax cuts from 34.4% to 25%
3. This business sentiment in Europe was picking up by low oil prices, QE, a cheap Euro, thriving exports before Mr. Macron's coming.
4. Germany has been fine on their own because of their exporting prowess and a steady domestic economy, but 19 economies's annualized aggregate growth was 2.3% in the first quarter, double US's, especially Spain and Portugal were the brightest.
5. European-level reform to spur growth such as encouraging cross-border mergers can now be encouraged by both Germany and France.
Renaissance era
6. France will be transformed to a center for tech firms but for more companies coming, Europe needs to unify all fiscal rules and norms to a true single market.
7. A "euphoric" mood is prevailing in Germany because of sustained economic growth indicating their outlook brighter than ever.
8. Especially in capital goods producing industry such as Jungheinrich, this upturn of economy is obvious.
9. M&A deals increased to $172bn, a 80% increase on the same period in 2016, involving both US and European firms in the first five months of the year, which would be 34% involving European firms.
10. Since Macron's victory, the biggest Italian-Spanish mergers of road-toll firms and $70bn gas-industry tie-up by Praxair, of America, and Linde, of Germany show the deal trends.
11. This M&A deals are also a sign of European firms weakness by which it means they have been fallen behind global peers.
12. Nevertheless, investors are cheered that many firms are expanding revenues, for example, SEAT, a subsidiary of Volkswagen turning profit for the first time in a decade, Portuguese exporters and tourism firms with rapid growth, and higher defense spending caused by US's threat on the support for NATO.
13. Even Italy, an economic laggard, is beginning to show a sign of hope with firms of rising car domestic sales and exports, and a more business-friendly political climate is being portended.
14. Whether firms translate the profits into investment for the future such as digitization remains to be seen, but cash hoarding of €2trn ($2.2trn) is just back to the absolute levels seen before 2008 and lower in relative terms.
15. Less spending was caused by lingering timidity, not by tight credit, so if the reforms by new political leaders work well, investment can boost up.
Word and expressions
1. fizz: (of a liquid) produce bubbles of gas and make a hissing sound
- move with or display excitement, exuberance, or liveliness
2. giddy: excited to the point of disorientation
3. tailwind: a wind blowing in the direction of travel of a vehicle or aircraft a wind blowing from behind
4. scale up: increase
5. welter: move in a turbulent fashion
6. laggard: someone with slow progress falling behind others
7. chipper: cheerful and lively
8. portend: be a sign of warning that (something, especially something momentous or calamitous) is likely to happen
9. in the bag: (of something) as good as secured; drunk
Permalink
http://eoesociety.blogspot.com/2017/06/te-article-summary-jun-15th-2017.html
Corporate Europe is giddy with optimism
Emmanuel Macron's arrival on the scene has transformed the mood
http://www.economist.com/news/finance-and-economics/21723422-economists-and-federal-reserve-are-not-about-abandon-phillips
Print edition, business, Jun 15th 2017
Summary
1. Macron's arrival with giant victory in parliamentary elections has brought about optimisms on the outlook of Europe.
2. Mr. Mestrallet displayed expectations on "de-blocking" of Mr. Macron such as legislative reform of a rigid labor hour market to simplify rules on hiring and firing and tax cuts from 34.4% to 25%
3. This business sentiment in Europe was picking up by low oil prices, QE, a cheap Euro, thriving exports before Mr. Macron's coming.
4. Germany has been fine on their own because of their exporting prowess and a steady domestic economy, but 19 economies's annualized aggregate growth was 2.3% in the first quarter, double US's, especially Spain and Portugal were the brightest.
5. European-level reform to spur growth such as encouraging cross-border mergers can now be encouraged by both Germany and France.
Renaissance era
6. France will be transformed to a center for tech firms but for more companies coming, Europe needs to unify all fiscal rules and norms to a true single market.
7. A "euphoric" mood is prevailing in Germany because of sustained economic growth indicating their outlook brighter than ever.
8. Especially in capital goods producing industry such as Jungheinrich, this upturn of economy is obvious.
9. M&A deals increased to $172bn, a 80% increase on the same period in 2016, involving both US and European firms in the first five months of the year, which would be 34% involving European firms.
10. Since Macron's victory, the biggest Italian-Spanish mergers of road-toll firms and $70bn gas-industry tie-up by Praxair, of America, and Linde, of Germany show the deal trends.
11. This M&A deals are also a sign of European firms weakness by which it means they have been fallen behind global peers.
12. Nevertheless, investors are cheered that many firms are expanding revenues, for example, SEAT, a subsidiary of Volkswagen turning profit for the first time in a decade, Portuguese exporters and tourism firms with rapid growth, and higher defense spending caused by US's threat on the support for NATO.
13. Even Italy, an economic laggard, is beginning to show a sign of hope with firms of rising car domestic sales and exports, and a more business-friendly political climate is being portended.
14. Whether firms translate the profits into investment for the future such as digitization remains to be seen, but cash hoarding of €2trn ($2.2trn) is just back to the absolute levels seen before 2008 and lower in relative terms.
15. Less spending was caused by lingering timidity, not by tight credit, so if the reforms by new political leaders work well, investment can boost up.
Word and expressions
1. fizz: (of a liquid) produce bubbles of gas and make a hissing sound
- move with or display excitement, exuberance, or liveliness
2. giddy: excited to the point of disorientation
3. tailwind: a wind blowing in the direction of travel of a vehicle or aircraft a wind blowing from behind
4. scale up: increase
5. welter: move in a turbulent fashion
6. laggard: someone with slow progress falling behind others
7. chipper: cheerful and lively
8. portend: be a sign of warning that (something, especially something momentous or calamitous) is likely to happen
9. in the bag: (of something) as good as secured; drunk
Permalink
http://eoesociety.blogspot.com/2017/06/te-article-summary-jun-15th-2017.html
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