Econ--Multex: "Taking Some Wind Out of the Sails"
multexinvestor.com
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Edited for ease of reading:
>>>Deutsche Banc Alex. Brown's Abraham Gulkowitz
A much more balanced perspective is developing in regard to business growth and opportunities around the world. Instead of a runaway U.S. economy far outpacing the rest of the world, growth prospects for the year 2000 are stronger than anything we've seen in a decade and are better balanced between Europe and Asia (outside of Japan).
Evidence has been accumulating that the overheating U.S. business environment is being tamed.
...First, corporations are hitting natural constraints with the tightest labor markets in decades and higher energy costs.
...A series of central bank increases in interest rates has led to a tougher financing environment -- credit spreads are wider and a long, long list of companies await equity financing.
...The setbacks in the dot.com space have had an impact on investment thinking and consumers' wealth considerations.
...And a new aggressiveness by policymakers on the antitrust front (Microsoft, telecom, airlines, B2B commerce, etc.), in an effort to maintain a level playing field in various sectors, has had a symbolic affect on financial market performance.
All told, the downshifting in U.S. growth will be most welcome if it allows business activity in Europe and elsewhere to finally take on more of the growth burden.
Abraham Gulkowitz is Chief Global Strategist for Deutsche Bank, New York and Director of Research & Strategy for the Global Investment Bank. His responsibilities include the analysis of economic issues related to corporate financing transactions and private banking. <<< |
