Spain: a growing equity market
Article Abstract:
The Spanish equity market is comparatively underdeveloped, having recently recovered from a period of political and economic transition from 1974 to 1983. The market is undercapitalized at only 18% of GNP. Average ratings of Spanish equities are 14 times reported earnings, due to an inflationary accounting system. Analysts often prefer to look at price-cash flow ratios instead. Spanish shares are at four times cash flow now, similar to West Germany. The Spanish market is still illiquid for two reasons: most shares are held by families, banks, or in corporate cross-relationships, and there are no market-makers or brokerage firms. There are plans to establish independent brokerages soon. A desirable Spanish investment is Telefonica, the telephone company. Alternatives for new investors would be specialist investment trusts or Spanish banking groups.
Publication Name: The Accountant's Magazine
Subject: Business
ISSN: 0001-4761
Year: 1988
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Manufacturing industry - brighter prospects
Article Abstract:
The United Kingdom may be a better location for manufacturing concerns than the U.S., due to a cheap and plentiful labor supply and the proximity to European markets (where U.S. goods are popular). The British textile industry has announced that shirts can be made as cheaply in Lancashire as they are in Hong Kong, due to the use of technologically advanced equipment in the British factories. Counterbalancing these good news items related to British manufacturing are the realizations that Britain must develop internationally traded manufactured goods (to replace the nation's losses related to falling oil prices), and that Britain must find work for the manufacturing laborers who have been replaced by technology. Other trends and developments in the British manufacturing industries are discussed as well.
Publication Name: The Accountant's Magazine
Subject: Business
ISSN: 0001-4761
Year: 1986
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Better prospects in world bond markets
Article Abstract:
The prices of government bonds have decreased and yields have increased due to the efforts of governments to fight inflation. Fears of inflation have resulted in higher interest rates, and the prospects of a larger demand for capital by governments to retire debts has depressed the medium- and long-term markets in government bonds. In the 1990s, the demand for capital will be strong, but the demand will be met by increased capital formation in the private sector and a reduction of national deficits. In the future, top quality bonds will perform better as governments will be moved to raise taxes in order to reduce deficits, which will reduce government demand on credit, leading to lower interest rates and bond yields.
Publication Name: The Accountant's Magazine
Subject: Business
ISSN: 0001-4761
Year: 1990
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