Economic Conditions Snapshot

456 views

Published on

Published in: Business, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
456
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
10
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Economic Conditions Snapshot

  1. 1. ECONOMIC CONDITIONS SNAPSHOT DEBMALYA KHAN
  2. 2. <ul><li>Nearly 70% of the companies say that they have seen their profits fall as a result of global turmoil </li></ul><ul><li>Negative impact on most of the company’s profits over the past six months </li></ul><ul><li>Main cause of lower profits is the lower spending of consumers and other businesses </li></ul><ul><li>China- reduced costs- Change is a response to lowered profits or a cause of it </li></ul><ul><li>Companies planning for external financing for need for cash </li></ul>
  3. 3. PURPOSE FOR SEEKING FUNDING <ul><li>To increase our available cash </li></ul><ul><li>To redefine existing debt </li></ul><ul><li>To pay for new initiatives ( e.g.. Geographic expansion , innovation ) </li></ul><ul><li>To repay regular operating expenses </li></ul><ul><li>Others </li></ul>
  4. 4. OPPORTUNITY IN TURMOIL <ul><li>27% of the companies say that they are considering developing new products and meet new customer demand </li></ul><ul><li>20% companies entering new markets </li></ul><ul><li>One main reason- sound financial base – 44% have been making steady profits since the last six months. </li></ul><ul><li>Mostly North American companies better off than the those in the rest of the world </li></ul><ul><li>Smaller and private companies </li></ul><ul><ul><li>looking more stable than larger and public ones </li></ul></ul><ul><ul><li>Fewer instances of negative impact on profits </li></ul></ul>
  5. 5. NEGATIVE IMPACT ON TRENDS <ul><li>Stalled markets, high costs of credit, low market liquidity, low asset price </li></ul><ul><li>Increases market volatility </li></ul><ul><li>High Government regulations and increased activity in the financial sector </li></ul><ul><li>Widespread negative impact of the Global turmoil </li></ul><ul><li>Companies have become less risk averse </li></ul><ul><li>Significant restructuring of companies including consolidation </li></ul><ul><li>Little geographic or social backlash against the free market system </li></ul>

×