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Companies appear to be gaining market power

Companies appear to be gaining market power

Finance
COMPETITION forces companies to keep prices low to attract customers. But if a few firms become powerful enough, they can see off competitors and charge more. A new working paper by Jan De Loecker of the University of Leuven and Jan Eeckhout of University College London presents evidence that this is happening across the rich world.The researchers examine markups—selling prices divided by production costs. At 1, products are sold at cost; above 1, there is a gross profit. Using the financial statements of 70,000 firms in 134 countries, the authors find average markups rose from 1.1 in 1980 to 1.6 in 2016.America and Europe saw the biggest increases (see chart). But in many emerging markets markups barely rose. In China they fell. That suggests rich-world firms may have been able to i...
New sectors taking charge as market seeks to rebound

New sectors taking charge as market seeks to rebound

Finance
NEW DELHI: Even though the benchmark indices have largely recovered from their Januray lows, most sectors that led the charts between February 2016 and January 2018 – the phase during which Sensex rallied 58 per cent to 36,450 from 23,000 –are not finding favour with investors. They are now ruling at the bottom of the performance charts, making way for a comeback by those sectors which missed the earlier rally, data showed. The BSE Realty index has fallen 22 per cent since January, emerging best performer among all sectors between February 2016 and January 2018 with a 154 per cent surge. PSU stocks, too, have gone off investor radar. The BSE PSU index has slipped 21 per cent in the recent fall, compared with a 65 per cent rise over the preceding 29 months. The BSE Metal index, the third b
Contrition wins the day for Uber in a big market

Contrition wins the day for Uber in a big market

Finance
SECOND chances exist, after all. Last September Uber was sideswiped when Transport for London (TfL), the city’s transport regulator, revoked the ride-hailing giant’s licence to operate in the capital, citing concerns related to public safety and reporting of drivers’ criminal offences. The decision appeared to dent the prospects of the firm, which counts London as its largest European market and one of the most lucrative of its 600 cities. Uber continued to operate in London while appealing the decision, but a lot still hung in the balance.Welcome news came on June 26th when a judge in London awarded the firm a licence for 15 months. In court Uber had taken a contrite and muted stance, promising to do more to provide support for riders and drivers, including launching a t...
Investors fret about a trade war, but they aren't fleeing the stock market

Investors fret about a trade war, but they aren't fleeing the stock market

Finance
At a conference held by a top investment bank in Manhattan last week, attendees were asked to submit what they thought was the biggest risk to the global economy. When their concerns showed up on the conference screen, these words were the most popular: Trump, trade war and protectionism. Outside, meanwhile, the stock market was having another up day. In recent weeks, against the expectations of many on Wall Street, investors have not run for the exits as President Trump has stepped up trade brawls with China, Canada and the European Union. On Friday, when the Trump administration and China announced tit-for-tat tariffs on $ 50 billion of goods from each c...

What Happened in the Stock Market Today

Finance
[unable to retrieve full-text content]Stocks opened higher Monday but fell over the course of the session The Dow Jones Industrial Average DJINDICES DJI 160 and the S amp P 500 SNPINDEX GSPC 160 both closed down but still managed gains for the month of April Today s stock Latest Articles in