Posts Tagged ‘Lack’
February 19, 2014 | 
Author Business Monitor identify a lack of anticipated growth in Russia’s infrastructure sector
(PRWEB UK) 12 February 2014
Business Monitor has just released its latest findings on Russia’s infrastructure sector in its newly-published Russia Infrastructure Report.
Business Monitor has considerably revised down their construction industry forecast for Russia in 2014 in light of recently published lacklustre official data. With a contraction of 1.25% in the first nine months of 2013, they now forecast only moderate growth in the industry of 1.5% for 2014. Although they had anticipated significant growth in the industry as a result of the large investments made for the Winter Olympic Games, this seems to have failed to materialise. In addition, private investment has continued to weaken as a result of endemic corruption, inefficient bureaucracy and lack of investor guarantees. This poor business environment is exacerbated by stubbornly high inflation and slow economic growth.
Key developments in the sector covered by the Report:
■ Business Monitor’s Country Risk team forecasts a slowdown in the Russian GDP, which should arrive at 2.0% in 2013, down from 3.4% in 2012, with a slight acceleration to 2.5% expected in 2014.
■ Infrastructure associated with the export of commodities (pipelines, ports and transport infrastructure – to support oil and gas output east and west of the Urals) has a high growth potential – as development is predicated on growth in the natural resources sector. These projects have been prioritised by the government.
■ In November 2013, Avtodor shortlisted four teams to bid for the M-11 highway. The four teams are Corsan-Corviam Construccion and consortia Stolichniy Tract OJSC, Roads Construction Corporation and Two Capitals Highway. The concession agreement involves financing, constructing and operating the 543km-684km section of the toll road.
■ In January 2014 Lithuania-based company Avia Solutions Group and Russia’s state-owned company Rostec signed a cooperation agreement to develop and management a new Moscow airport with a capacity of 12mn passengers per year. The new Russian airport, dubbed Ramenskoye International Airport, is designed to cater for low-cost airlines – a niche industry that has experienced slow growth in Russia as a result of insufficient infrastructure.
■ Business Monitor have recently seen significant developments in the residential/non residential sector, including the announcement of a US$ 15.4bn government budget aimed at developing and modernising St Petersburg’s residential buildings. This project – announced in August 2013, will see the development of 900ha of land in 22 different sites around St Petersburg.
■ Business Monitor maintain their view that political risk is the main element that can ultimately curtail growth as public policy remains opaque, convoluted and subject to frequent change. The planned privatisation scheme remains on the agenda; yet, on the back of heavy state involvement and strong vested interests, they believe foreign enthusiasm to be muted.
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Posted in Commodities | 
Tags: anticipated, Business, Growth, identify, Infrastructure, Lack, Monitor, Russias, sector | 
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Cost Cuts and Declining Revenues Signal Lack of Future Economic Growth, According to Investment Contrarians Expert
New York, NY (PRWEB) October 10, 2012
In a recent Investment Contrarians article, financial expert George Leong notes that revenues going forward, especially organic growth rates, will be extremely important for a healthy economy. Leong states that revenues need to grow to drive earnings; but businesses are cutting costs to drive earnings instead, signaling a lack of economic growth for the near future.
“Based on the current estimates, earnings for the S&P 500 are estimated to fall 2.6% in the third quarter, which would end the 11 straight months of earnings growth,” states Leong, citing FactSet (http://www.FactSet.com). “So far for the third quarter, 82 S&P 500 companies have issued negative earnings-per-share (EPS) guidance versus only 21 companies reporting positive guidance.”
According to Leong, Alcoa, one of the world’s top aluminum makers, is a good indicator for the global economy, as the metal is used in many industrial applications.
“In the second-quarter earnings season, Alcoa beat slightly on earnings, but revenues are an issue, as will likely be the situation for many U.S. companies,” reports Leong. He also notes that the company’s revenues are estimated to fall 12.7% in the third-quarter earnings season, followed by a 5.0% decline in the fourth-quarter earnings season.
“This is not what you would expect if the economy was healthy,” says Leong, noting that while there is some hope and optimism for the third-quarter earnings season, he expects disappointment across the board.
As in the past quarters, the key question, in Leong’s view, is whether companies are growing their revenues to drive earnings, or is earnings growth being generated by cost cuts. This is critical, and could give a good indication of how well corporate America is actually doing.
“The reality is that many companies cut costs during hard times, and they should be in a better condition now. If the economy was truly healthy, [the market] would see earnings growth driven by revenues,” Leong concludes.
To see the full article and to get a real contrarian perspective on investing and the economy, visit Investment Contrarians at http://www.investmentcontrarians.com.
Investment Contrarians is a daily financial e-letter dedicated to helping investors make money by going against the “herd mentality.”
The editors of Investment Contrarians believe the stock market and the economy have been propped up since 2009 by artificially low interest rates, never-ending government borrowing and an unprecedented expansion of our money supply. The “official” unemployment numbers do not reflect people who have given up looking for work and are thus skewed. They believe the “official” inflation numbers are also not reflective of today’s reality of rising prices.
After a 25- to 30-year down cycle in interest rates, the Investment Contrarians editors expect rapid inflation caused by huge government debt and money printing will eventually start us on a new cycle of rising interest rates.
Investment Contrarians provides unbiased research. They are independent analysts who love to research and comment on the economy and investing. The e-newsletter’s parent company, Lombardi Publishing Corporation, has been in business since 1986. Combined, their economists and analysts have over 100 years of investment experience.
Find out where Investment Contrarians editors see the risks and opportunities for investors in 2012 at http://www.investmentcontrarians.com.
George Leong, B. Comm., one of the lead editorial contributors at Investment Contrarians, has just released, “A Problem 23 Times Bigger Than Greece,” a breakthrough video where George details the risk of an economy set to implode that is 23 times bigger than Greece’s economy! To see the video, visit http://www.investmentcontrarians.com/press.
©Copyright 1997-
, Vocus PRW Holdings, LLC.
Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.
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Posted in Debt | Tags: According, Contrarians, cost, Cuts, Declining, Economic, Expert, Future, Growth, Investment, Lack, Revenues, Signal | 8 Comments »
With the economic downturn, many companies look to send jobs overseas and save lots of money but what impact does that have here at home on the scores of people looking for work. (Nov. 13)
Video Rating: 4 / 5
Outsourcing
Video Rating: 4 / 5