Skip to main content
Knowledge and Training for Financial Decision Making!

NEWSLETTER of January 10, 2025


The following content has been added at finexpert:


Studies > Performance

Citi
2025 WEALTH OUTLOOK
The global economy has defied expectations in recent years. Forecasts of recession — backed up by usually reliable indicators — came to nothing. Despite the sharpest and most synchronized interest-rate hiking campaign by global central banks in decades, growth has endured. Corporate profits in the U.S. recently reached new highs, with profits elsewhere closing in on their former peak. In 2025 and 2026, we expect this rule-breaking expansion to continue. We also expect the growth to be accompanied by further geopolitical and political discord. >more

Studies > Corporate Finance

Skadden
ACTIVIST INVESTING IN EUROPE 2025
Corporate executives and activist investors expect a sharp rise in shareholder activism across Europe this year, according to our exclusive report out today in collaboration with Activistmonitor. Discover more about the interplay between shareholder activism and an explosive mix of economic, political and geopolitical factors shaping what we expect to be a dynamic landscape in Europe in 2025. >more

Studies > Macro

Deutsche Bank Research
DEUTSCHLAND-MONITOR BAUFINANZIERUNG Q1/2025
After two years of recession, the outlook remains cautious. We expect GDP growth of 0.5% in 2025 and 1% in 2026. In 2024, long-term mortgage rates also fell from around 4% at the beginning of the year to 3.4% at the end of the year. We expect 5-10 year mortgage rates to be at 3.5% at the end of 2025. For 2024 and 2025, we expect a significant drop in new construction. Given the fall in interest rates and the expectation that house prices and incomes will rise roughly in line with inflation, the affordability index should fall slightly in Q1 2025 to around 80. We expect a sideways movement for 2025. >more

Studies > Macro

Deloitte
AUSBLICK UNTERNEHMENSINVESTITIONEN: WANN ENDET DIE FLAUTE?
Modern machines, devices and technologies are important for companies and the economy as a whole for many reasons. They contribute to more efficient production, support the expansion of production capacities, increase innovative capacity and help companies to remain competitive overall. German companies are still reluctant to invest in equipment, which is significantly below the pre-pandemic level. A gradual recovery can be expected in 2025 thanks to falling interest rates, but the structural challenges mean that no dynamic development can be expected. >more


Research Papers > Corporate Finance

THE DISAPPEARING INDEX EFFECT
Robin M. Greenwood, and Marco Sammon
2024
The abnormal return associated with a stock being added to the S&P 500 has fallen from an average of 7.4% in the 1990s to less than 1% over the past decade. This has occurred despite a significant increase in the share of stock market assets linked to the index. A similar pattern has occurred for index deletions, with large negative abnormal returns during the 1990s, but only 0.1% between 2010 and 2020. We investigate the drivers of this surprising phenomenon and discuss implications for market efficiency. Finally, we document a similar decline in the index effect among other families of indices. >more

Research Papers > M&A

SUSTAINABILITY OR GREENWASHING: EVIDENCE FROM THE ASSET MARKET FOR INDUSTRIAL POLLUTION
Ran Duchin, Janet Gao, and Qiping Xu
2024
We study the asset market for pollutive plants. Firms divest pollutive plants in response to environmental pressures. The buyers are firms facing weaker environmental pressures, with supply chain relationships or joint ventures with the sellers. While pollution levels do not decline following divestitures, the sellers highlight their sustainable policies in subsequent conference calls, earn higher returns as they sell more pollutive plants, and benefit from higher ESG ratings and lower compliance costs. Overall, the asset market allows firms to redraw their boundaries in a manner perceived as environmentally friendly without real consequences for pollution and with substantial gains from trade. >more

You are not a member?

Sign up here

Login

Forgot your password?