Investors want review of how Sports Direct operates, company profits still way down and Brexit boost for Choo.
Need for a review say shareholders
Europe’s top companies are still miles away the profitability they enjoyed before the financial crash, Swiss broker UBS claimed today.
While profits across the continent are recovering, they are only now back to the level of 2009.
In a gloomy piece on the prospects for the eurozone, UBS suggests the current situation is eerily reminiscent of Japan.
Here, the Swiss broker says: “For years we talked about a ‘delayed’ profit recovery and waited… But it never really came.”
In Japan, it took 15 years to get back to its 1989 profit peak.
And according to UBS, Europe is closing in on its Japanese peers.
European company profits peaked in early 2007 but ten years on profits are still 30% below those levels.
In contrast, US company profits are 25% ahead of their peak in the last cycle.
Britain is one of the laggards, with a 34% decline from peak, says the broker along with Europe’s perennial sick men Italy, Portugal, Spain faring even worse.
Sweden and Germany are on top but even the Gemans still nurse a 5% earnings gap compared to 2007 says UBS.
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SOURCE: Proactive Investors
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