4 December 2017 · 2 min read

US tax reform a modest positive for US equities and dollar

Estimated total corporate tax benefit of US$ 74bn per year is not a game-changer

The prospective headline cut to the US corporate tax rate from 35% to 20% is a positive but not as significant as it may look at first sight. Historically, the US corporate sector has enjoyed an effective tax rate closer to 25% due to ample scope for deductions. The US Congressional Budget Office believes that the total revenue lost from the US business taxes from the Senate tax bill would be $744bn over 10 years. Following implementation, this would represent approximately a 6% increase in net income for the US corporate sector from 2019.

Read more...
Richard Windsor
4 December 2017

Digital Sensors - Heart of the matter

Apple is creeping up on the medical devices industry

Read more...
Richard Windsor
1 December 2017

Amazon - Size 12s

Amazon is stomping on Microsoft’s patch. 

Read more...
Richard Windsor
30 November 2017

Uber – Annus horriblis

Even at $54bn, no shortage of sellers

Read more...
Richard Windsor
28 November 2017

E-commerce – Look East.

In mobile, China is more developed than USA

Read more...
Richard Windsor
27 November 2017

Uber vs. Lyft – Blood in the water

This is Lyft’s best chance to catch Uber

Read more...
Richard Windsor
24 November 2017

Apple - No Nirvana

Vrvana unlikely to accelerate Apple’s AR

Read more...
24 November 2017 · 2 min read

Economic surprise accelerating

Positive economic surprise still offering short-term support for risk assets

The positive economic surprise data seen over the last 3m continues to strengthen. If anything, the data is moving faster than any monetary tightening leading to a benign environment for risk assets such as equities. What is more of a conundrum is the lack of response in global bond yields, even as the final developed market central bank to move, the Bank of Japan, is now hinting that it is past peak monetary accommodation. Earnings forecasts for 2017 remain robust with median growth close to 10% for developed markets and a similar level of growth forecast for 2018.

Read more...
Sarah Godfrey
23 November 2017 · 2 min read

Edison clients win at the Investment Week Investment Company of the Year Awards

Special recognition for Foreign & Colonial IT on 150th anniversary

Investment company research clients of Edison picked up several of the honours at the Investment Week Investment Company of the Year Awards last night in London.

Read more...
Richard Windsor
22 November 2017

Sonos – Sounds of sameness pt. III.

Sonos has finally enabled Alexa voice control and Spotify support in its speaker systems thereby ensuring that it will now be competing purely on the quality of its hardware. The Sonos One is Sonos’ first voice-activated speaker which has received rave reviews for its sound quality, but very little else. This is because this device uses Amazon’s Alexa to control its functions and is adding support for streaming services like Spotify and Tidal with increasing regularity. While this is exactly what is required to sell speakers in this day and age, it is confirmation that Sonos has completely lost its mojo.

Read more...