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Four of investors’ top 5 favorite investment destinations are in Europe, Milken Institute report shows

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Traders work on the floor of the New York Stock Exchange (NYSE) in New York.

Four of investors’ top five favorite destinations are in Europe, according to the Milken Institute’s Global Opportunity Index (GOI) report.

Denmark topped this year’s rankings, scoring first on business perception, a measure of the ease of doing business in a country as well as other regulatory metrics.

The index factors in 100 indicators under five categories: business perception, economic fundamentals, financial services, institutional framework, and international standards and policy.

Denmark ranked third on economic fundamentals which capture macroeconomic performance, workforce talent, and “efforts to create a resilient and sustainable economy and society,” according to the report.

These are the top five countries that investors find attractive, according to the latest GOI report:

  1. Denmark
  2. Sweden
  3. Finland
  4. United States
  5. United Kingdom

The U.S. moved up one spot to the fourth position this year, ranking highest in the institutional framework category, which tracks the protection a country’s institutions offer to investors’ rights and their assets.

The country ranked fifth in the financial services category, which evaluates the overall financial system in a nation as well as the accessibility to finance.

Finland which placed third overall, was ranked highest in the international standards and policy category that evaluates economic openness and the extent to which a country’s policies are aligned with global regulatory and intellectual property protection standards.

Emerging and developing Asia performed well compared to other E&D regions, drawing more than half (53.2%) of the funds flowing into E&D countries between 2018 and 2022, according to the report.

“While advanced economies provide stability, investors seeking high-growth returns continue to show interest in emerging and developing economies,” Maggie Switek, Senior Director of the research department at The Milken Institute, said in a statement.

Among Asian E&D economies, Malaysia emerged as investors’ favorite and ranked 27th globally.

It has the “best investment conditions” among all E&D economies, and ranks well on institutional frameworks, partially due to the fact that the country “has very strong investors’ rights,” Switek said.

Malaysia is also now the sixth largest chip exporter in the world and packages 23% of all U.S. chips, according to The New York Times.

Overall, E&D regions “offer attractive opportunities to investors interested in emerging markets with favorable growth potential,” the report said.

Rising tensions between the U.S. and China, however, have hit inflows to Asian E&D economies, down 75.4% in 2022, the report added.

The world’s second-largest economy, China, came in at 39th place. “That’s actually pretty high,” Switek told CNBC’s Squawk Box Asia, adding it is still an emerging and developing Asian economy according to the IMF.

“While China attracted more than half of total capital inflows to E&D Asia between 2018 and 2022, its appeal to investors appears to have decreased recently, likely due to rising geopolitical tensions with the US,” the report said.

Here are the top 10 E&D Asian countries on the Global Opportunity Index:

  1. Malaysia
  2. Thailand
  3. China
  4. Indonesia
  5. Vietnam
  6. India
  7. Mongolia
  8. Sri Lanka
  9. Philippines
  10. Cambodia

Singapore topped Asia as investors’ favorite country in the region, and grabbed the 14th place globally. Hong Kong and Japan ranked 15th and 16th, respectively, in Asia.

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Tesla shares soar more than 14% as Trump win is seen boosting Elon Musk’s electric vehicle company

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NEW YORK (AP) — Shares of Tesla soared Wednesday as investors bet that the electric vehicle maker and its CEO Elon Musk will benefit from Donald Trump’s return to the White House.

Tesla stands to make significant gains under a Trump administration with the threat of diminished subsidies for alternative energy and electric vehicles doing the most harm to smaller competitors. Trump’s plans for extensive tariffs on Chinese imports make it less likely that Chinese EVs will be sold in bulk in the U.S. anytime soon.

“Tesla has the scale and scope that is unmatched,” said Wedbush analyst Dan Ives, in a note to investors. “This dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players.”

Tesla shares jumped 14.8% Wednesday while shares of rival electric vehicle makers tumbled. Nio, based in Shanghai, fell 5.3%. Shares of electric truck maker Rivian dropped 8.3% and Lucid Group fell 5.3%.

Tesla dominates sales of electric vehicles in the U.S, with 48.9% in market share through the middle of 2024, according to the U.S. Energy Information Administration.

Subsidies for clean energy are part of the Inflation Reduction Act, signed into law by President Joe Biden in 2022. It included tax credits for manufacturing, along with tax credits for consumers of electric vehicles.

Musk was one of Trump’s biggest donors, spending at least $119 million mobilizing Trump’s supporters to back the Republican nominee. He also pledged to give away $1 million a day to voters signing a petition for his political action committee.

In some ways, it has been a rocky year for Tesla, with sales and profit declining through the first half of the year. Profit did rise 17.3% in the third quarter.

The U.S. opened an investigation into the company’s “Full Self-Driving” system after reports of crashes in low-visibility conditions, including one that killed a pedestrian. The investigation covers roughly 2.4 million Teslas from the 2016 through 2024 model years.

And investors sent company shares tumbling last month after Tesla unveiled its long-awaited robotaxi at a Hollywood studio Thursday night, seeing not much progress at Tesla on autonomous vehicles while other companies have been making notable progress.

Tesla began selling the software, which is called “Full Self-Driving,” nine years ago. But there are doubts about its reliability.

The stock is now showing a 16.1% gain for the year after rising the past two days.

The Canadian Press. All rights reserved.

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S&P/TSX composite up more than 100 points, U.S. stock markets mixed

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TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 103.40 points at 24,542.48.

In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.

The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.

The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.

The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.

This report by The Canadian Press was first published Oct. 16, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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S&P/TSX up more than 200 points, U.S. markets also higher

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TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.

The S&P/TSX composite index was up 205.86 points at 24,508.12.

In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.

The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.

The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.

The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.

This report by The Canadian Press was first published Oct. 11, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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