25 November 2024 – According to a recent study by the ifo Institute, German bureaucracy destroys 146 billion euros in economic output per year – the main cause of the excessive bureaucracy can be found in Brussels! And reporting season in the USA: second-line stocks shine with strong earnings growth.
Reporting season in the USA: second-line stocks shine with strong earnings growth
The reporting season for the third quarter paints a positive picture: US small caps from the Russell 2000 are impressing with a 34 per cent increase in profits compared to the previous year. Although this does not exceed the expectations of analysts, who had anticipated a rise of 36 per cent, it remains a clear success.
Frontrunners in growth markets
Communication service providers, healthcare and technology stocks performed particularly well, recording gains of over 60, 50 and just under 40 per cent respectively. These sectors show how dynamically and future-orientated second-line stocks operate in high-growth markets.
Optimistic outlook for US small caps
The Russell 2000 has gained 17 per cent in euros in the last three months. Analysts expect further profit increases of over 40 per cent on average by the end of 2025. These forecasts emphasise the potential that US small caps hold for investors.
Excessive bureaucracy costs Germany 146 billion euros a year in economic output
Bureaucracy in Germany has increased more and more in recent years. Last week, the ifo Institute estimated the economic damage this causes in Germany at 146 billion euros per year.
70% of current burdens are due to EU directives
One of the main reasons for the excessive bureaucracy, according to the ifo Institute, is that 70% of the current burden on the economy is due to the implementation of EU directives. And Germany traditionally transposes the requirements from Brussels too stringently into national law and regulates more than is actually necessary.
Costs for EU bureaucracy in the trillions of euros?
If Germany, but also the other EU member states and especially the European Union as the driving force behind the creation of ever more bureaucratic hurdles, were to focus on reducing bureaucracy, up to one trillion euros per year in economic output could be freed up across the EU. Small and medium-sized enterprises (SME) in Europe in particular suffer from nonsensical and cost-intensive reporting obligations and need quick and effective relief here.
Iron ore prices continue to rise on Monday
Iron ore prices on the Chinese Dalian Commodity Exchange (DCE, +0.83%) and the Singapore Exchange (SGX, +1.77%) rose on Monday. Base metals on the SHFE also rose by between 0.3% and 1.6%.
Base metals up on the LME
Base metals on the European LME are also showing a favourable trend today and have started trading with gains of more than 1.0% in some cases.
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