Apr 29, 2019
Most people think of Japan as a highly developed and prosperous country. With a GDP per capita of $39,306 in 2018, its economy is among the most advanced in the world, home to global powerhouses such as Toyota, Honda, Sony and Nintendo, just to name a few. What many people don’t realize, however, is that Japan is also the most debt-ridden country in the world, with government debt amounting to 238 percent of the country’s GDP in 2017, according to the IMF.
As the following chart shows, that puts Japan far ahead of Greece, Italy and Portugal, the European Union’s debt-laden problem children, and the United States, which also saw its public debt soar to unprecedented levels in recent years. While the U.S. saw its debt level rise from 65 to 105 percent between 2007 and 2017, Spain and the UK suffered the biggest increases, with debt levels in both countries more than doubling over the same period.
May 10, 2019
Uber stocks are hitting Wall Street today in an IPO that valued the company at US$82.4 billion. Uber is selling initial shares at $45 a piece and raised US$8.1 billion in the biggest IPO in five years, since Alibaba went public in 2014 in an even larger public offering.
Fellow rideshare company Lyft, which went public in March in a somewhat smaller IPO, had sold shares for a much higher USUS$72, but prices came crashing down soon after. The release of the Q1 number didn’t do anything to stop the downwards spiral because of negative earnings. The poor performance of its competitor has reportedly made some buyers wary of Uber stock also.
Yet, Lyft stock has only been public for some weeks. A look at Facebook stock, which was introduced to the NASDAQ in 2012, shows how success can come over time. Shares of the company were sold at US$38 on day one and reported losses until mid-2013. Currently, they are trading at approximately US$170 a piece.
Oct 7, 2019
Munich was deemed the city with the highest risk of a housing bubble developing in a recent survey released by investment bank UBS. Other cities at risk include Amsterdam, Toronto, Vancouver and Frankfurt, placing two Canadian and two German cities in the top 7.
Amsterdam recorded the strongest annual price increase of any city in the survey since it was first released in 2015. Real prices increased by close to 10 percent, accompanying a wave of speculative buying. Dubai was the city where conditions eased most noticeably after housing boomed between 2010 and 2014 in connection to high oil prices.
Looking at the ratios of housing prices to rent, housing prices to income, the increase in mortgage payments to the increase of GDP, the increase in construction spending to the increase of GDP and, finally, the ratio of housing prices in the city and the surrounding areas, UBS determined their risk index. Out of 24 cities included in the survey (all of which are known for their high real estate prices), seven were found to be in bubble-risk territory. Twelve more were considered to have an “overvalued housing market”, among them Zurich, London and San Francisco as well as Madrid, Stockholm and Sydney. The only city with an “undervalued” housing market according to the survey was Chicago.