The US concerns in 2016, earn more money and economically more profitable than all the others. This shows Handelsblatt compiled a List of the 100 most valuable corporations. Firms from Germany do not play in it (more than) almost any role.
When in January Donald trump will take the oath as US President, he may rely on the economic strength of the country. His campaign promise to “first take care of America” wall street has already learned. The Handelsblatt list of the most valuable in the world by stock market capitalization of companies shows that 58 of the 100 largest law firms in the United States. And the first 13 completely from America — demonstration of microeconomic forces, which in this expression in the exchange’s history has not happened.
One of only three in the top of the list with Apple, Google (Google) and Microsoft with 1.6 trillion euros are worth more than all 30 Dax corporations put together, which only come out at 1.1 trillion euros. This dominant position is not due to individual sectors of the economy such as the IT field, but read widely represented in all sectors. First of all restructured major US banks returned to his former power. To 100 leading companies, there are 21 financial institution, among them twelve American banks — but no one from the Eurozone. Europe in General has lost the value of hundreds of leading companies. The most expensive undertaking in Germany, SAP is the 59th place, followed by Siemens with 65.
The reason for this relative weakness: the Dax companies earned 70% of turnover abroad, and are heavily dependent on free trade. Hubert Barth (Barth Hubert), head of representative office of Germany consulting company EY, skeptical: “New frontiers, skepticism, discrimination and nationalism mean high risks for the leading companies of Germany”.
The weakness of producers in Europe has been for several years. The most important stock exchange’s barometer, the Euro Stoxx 50 captures 40% below its highest level of all time in 2000. Never again the stock did not reach the level of the euphoria around the stock of Telecom and Internet. The crisis in Finance and real estate 2008 resulted in many southern European countries, prolonged stagnation or even recession — in addition to the public debt crisis, which inhibits the securities markets.
Quite different is the situation on wall street. Here is an important stock indexes such as the Dow Jones, S&P 500 and the technology exchange Nasdaq almost daily hit record. And it is in any case not only the technology stocks that, as in previous years, contributed to the flourishing on the stock exchange.
Firms from the United States to expand its dominance
Investors put in 2016 for firms in all industries and in all quantities: as Blue Chips and manufacturer of construction machinery, Caterpillar, or on the oil giant Chevron., both of which climbed more than 30%, also in small, completely unknown in Germany values. Because also the Russell 2000, which are US firms, some of which market capitalization is much less than one billion dollars records, a record level. This year alone, the U.S. won an average of 12%, and the Dow gained even 15%. At the same time the Euro Stoxx 50 lost a whole 5%. Scissors capitalization reveals a wider. Because the Anglo-Saxon financial markets measure the value not in circulation, profits or profitability, and stock market capitalization. And here Americans, it seems, is so went forward that they did not catch up: 58 out of 100 for the strongest stock performance of enterprises from the United States. Four years ago, there were 39. It seems that as much as now, the Americans dominated for the last time in the early 1970’s, when over 60 firms from the list of 100 came from the United States and recorded more than 80% of stock market capitalization. Then there was no Dax, and operations with securities was limited almost exclusively Anglo-Saxon region. However, firms are not only very valuable. They also sell the greatest number of goods, sell such number of services like no other to earn the most money, and they cost more profitable than all the others. Thus, Corporate America lives up to its leading position on the commercial and conservative rules of balance, which probably correspond to the German scale of values.
Only one of the leading three in the world — iPhone-Riese Apple, Google’s search engine in your holding Alphabet and software Microsoft earns this year in the end, presumably the 80 billion euros. This generally corresponds to the total annual gross national product of a country such as Slovakia — more than the total net profit of all 30 Dax corporations.
“Today’s reality is that the growth comes from the West,” — said industrial expert Armin Schmiedeberg (Armin Schmiedeberg) from the consulting firm Bain & Company..America gives impetus to the world — in spite of all protectionist visions of the elected President of Donald trump.
More than a quarter of hundreds of leading companies in 2016 will receive a net income of approximately more than 10 billion euros, of which 18 companies from the USA, seven from Asia, British-Asian Bank HSBC and two Swiss chemical giant Roche and Novartis. From the Eurozone in 2016, perhaps, no one will be able to achieve. In Germany, the largest income will receive three producer of cars in Dax. This alone points to the special situation of this industry in Europe’s largest economy. However, neither Daimler nor BMW and Volkswagen will likely not reach the level of profit of ten billion euros.
100 leading corporations benefit from its pricing policy
Striking high profitability of many of hundreds of leading companies. Or is it Apple with it smartphones, or Google with its world-famous search engine, or Facebook, where a network crowd of more than a billion users — all with every dollar of turnover and the deduction of all costs remains double-digit profit. Three of the four companies among hundreds of leading get pure percentage of turnover. with more than 10%. Almost half even has a profit margin of more than 20%. That’s unusual. In Germany, this result can show among all listed firms at best a dozen companies.
A significant reason for the high profitability of the leading companies is the fact that a very large and international corporations benefit from its pricing policy, customer demand and benefits from its scale. Therefore, profitability is not reduced, the more the companies produce, the larger they become. So 40 years ago, founded by bill gates (Bill Gates), the company Microsoft with its software has achieved such high market penetration that new manufacturers find it difficult to conquer at least part of the market. In 2015, every dollar of turnover remained 13 cents net profit this year it may be almost 20 cents. A definite return for which, as a rule, have concerns Dax, Microsoft no.
All industries show strength
To earn a lot of money and without monopolistic structures or new innovations. Prove it for a long time profitable concerns, such as, for example, Procter&Gamble washing powder Ariel or Pampers brand diapers, or Coca-Cola with sweet drinks. In principle, it is all mass production, which can arbitrarily increase and copy. However, the giants managed to tie customers to brands, and around the world.
Philip Morris also quite convincing double-digit rendetemi over 20% for many years. Although for several years, as weakening sales of cigarettes in the developed countries, but globalization was a Golden exit for the tobacco group. In developing countries smoke more and more people. Even in Europe, revenue is growing, because consumers continue to smoke when cigarettes are expensive. Almost nobody is so insensitive to the rise in prices, as smokers — despite the awful pictures on the cigarette packages.
2016 will go down in financial history as the year when all sectors showed strength, at least in the United States. Perhaps nowhere is there such strong differences between Europe and America, in the financial industry. If we are talking about total sums — the sum of all the value of assets or total capital, then the Europeans can compete. But this is only as to amounts. In this case, and Deutsche Bank is still considered large. However, profitability, shareholders ‘ equity and net profit between America and Europe are worlds. JP Morgan with billions of Euro 297 is 12 times more expensive than the most expensive Bank in Germany.
The ten largest banks in the U.S. increased last year their net profit with good 30% to almost 110 billion euros. It was 40 billion euros more than in the pre-crisis year 2007. And also this year, JP Morgan Chase, Wells Fargo, Bank of America again record double-digit billions.
The European large banks, in contrast, has not yet reached pre-crisis levels, including in 2016. They are much more affected than their competitors in the United States who greatly benefit from the boom in the business of borrowing at low interest rates. While American institutions after the financial crisis under pressure from the government promptly increased its equity restruktureerimise and if they don’t burst like Lehman Brothers — out of the crisis strengthened, in Europe, this process lasts for years.
Even trump is unable to dampen IT courses-stock
However, the most prestigious industry remains the technology sector in California’s Silicon Valley, a haven of innovation and many firms at the global level. Five of the seven largest corporations in the world by stock-exchange capitalization relate to IT. With smartphones, Internet search or online trading, Google and Amazon, but also Microsoft, Intel, IBM, Oracle, and, of course, Facebook own the world market. They hire the best developers in the world and attract risk investors who put their money in a growing company. A kind of Perpetuum mobile.
Even the election of Donald trump will not be able long time to put pressure on security prices IT. Apple & Co to convince their investors with new innovations and high profit. In this wayward Republican during the election campaign called for a boycott of Apple because the smartphone manufacturer for reasons of data protection were afraid to support FBI investigations. Amazon came under fire over unpaid taxes on billions of dollars.
Deep antipathy trump against IT mutual. IT firm with its employees contributed to the campaign of Hillary Clinton is a hundred times more money than Donald trump. After the elections for the courses IT concerns also pressured. Over the week, the Dow Jones grew significantly with many traditional industrial companies around Exxon, General Electric and Caterpillar, while the losses suffered. Before this could not last longer than one week. However, the horror is over — because still IT companies earn the most money. Only Apple will receive 112 million euros of net profit — and that’s every day of the year. Bank Commerzbank in Germany that would take a year. And Deutsche Bank in 2016 will not achieve this.