You’ll remember we argued a year ago that Capex/sales ratios were unsustainable. Well guess what. We were kind of right and we were kind of wrong. Capex did indeed rise but a parallel jump in sales means the ratio is still locked into those 30-year lows.
But the conclusions we drew in December 2017 are still valid. Here we argue that the timeline towards the end of under-investment has merely shifted. In this issue of NOYM, we’ll cover the following:
» Reality bites: Capex is up from one year ago, but so too are sales
» The outliers: In Capex terms, Energy and Materials are different. Why?
» Feed me: Demand is rising and, risk aside, investment will need to step up
» Dividends: Normalised ratios would boost global capex by 28% in 2020
You might also like to join Johan Trocme and Hemming Svensson for our follow-up webinar for NOYM: Capex II – Running to stand still at 10:00 CET, November 28.
The information provided within this website is intended for background information only. The views and other information provided herein are the current views of Nordea Markets as of the date of publication and are subject to change without notice. The information provided within this website is not an exhaustive description of the described product or the risks related to it, and it should not be relied on as such, nor is it a substitute for the judgement of the recipient.
The information provided within this website is not intended to constitute and does not constitute investment advice nor is the information intended as an offer or solicitation for the purchase or sale of any financial instrument. The information provided within this website has no regard to the specific investment objectives, the financial situation or particular needs of any particular recipient. Relevant and specific professional advice should always be obtained before making any investment or credit decision. It is important to note that past performance is not indicative of future results.
Nordea Markets is not and does not purport to be an adviser as to legal, taxation, accounting or regulatory matters in any jurisdiction.
The information provided within this website may not be reproduced, distributed or published for any purpose without the prior written consent from Nordea Markets.