OECD BUSINESS AND FINANCE OUTLOOK

HIGHLIGHTS24 June 2015Adrian Blundell-Wignall

Thinking about over-investment - Companies’ capital expenditure rate greater in emerging economies for general industry

Emerging markets’ ROEs falling versus the cost of equity in general industry – opening a value creation gap

Productivity of sales versus value added in advanced and emerging country infrastructure and general industrial companies

US general industrial companies: Operating cash is rising and buybacks are huge

Low interest rates could persist for a long time

Changes in retirement income as interest rates change

Evolution of the present value of a hypothetical fixed cash flow promise payable over 20 years when interest rates fall

Drop in interest rates increases exposure to longevity risk of mortality tables across countries – average shortfall for females, age 65

Private funds versus regulated funds

Covenant Protection Index and selected covenant frequency

Thank you

Find the OECD Business and Finance Outlook online

www.oecd.org/finance/oecd-business-finance-outlook.htm