Foreign investment in US plunged 32%

Foreign investment in the United States dropped 32% in 2017, according to numbers released Wednesday by the US Bureau of Economic Analysis. The largest chunk of last year's foreign direct investment came from Canada ($66.2 billion), followed by the United Kingdom and Japan. Europe as a whole accounted for 40 percent of new foreign investment in the U.S.The figures come amid increasing trade tensions between the U.S. and several top economic allies.

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the figure is representing the second year of decline after a peak in 2015 when foreign investors' expenditure in the US hit $439.5 billion. I am sure 2018 will be worse. See the pattern?

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10 minutes ago, Ja’Nako Bezze said:

Foreign investment in the United States dropped 32% in 2017, according to numbers released Wednesday by the US Bureau of Economic Analysis. The largest chunk of last year's foreign direct investment came from Canada ($66.2 billion), followed by the United Kingdom and Japan. Europe as a whole accounted for 40 percent of new foreign investment in the U.S.The figures come amid increasing trade tensions between the U.S. and several top economic allies.

our allies hiding money into mattresses 

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4 minutes ago, mthebold said:

Why is this a bad thing?

Less money in the economy, for starters. I really cant see hoo to twist this and make it as victory

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1 minute ago, Joanna said:

Less money in the economy, for starters. I really cant see hoo to twist this and make it as victory

Acquisitions of US companies are already part of the economy. These new figures about the decline are pre-trade tiff. The tariffs may actually boost foreign investment by companies that want to avoid the tariffs.

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Just now, JohnAtronis said:

Acquisitions of US companies are already part of the economy. These new figures about the decline are pre-trade tiff. The tariffs may actually boost foreign investment by companies that want to avoid the tariffs.

All I read recently is US companies moving the production abroad 

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2 minutes ago, JohnAtronis said:

Acquisitions of US companies are already part of the economy. These new figures about the decline are pre-trade tiff. The tariffs may actually boost foreign investment by companies that want to avoid the tariffs.

Explain that Elon Musk and Harley. Even Warren Buffett is big into Chinese electric car technology and manufacturing

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14 minutes ago, Joanna said:

the figure is representing the second year of decline after a peak in 2015 when foreign investors' expenditure in the US hit $439.5 billion. I am sure 2018 will be worse. See the pattern?

rate last year dropped to levels similar to 2014 and the years before the financial crisis. That is the pattern I am worried about

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and there I thought the tax bill was going to bring more foreign investments.

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29 minutes ago, Ja’Nako Bezze said:

Foreign investment in the United States dropped 32% in 2017, according to numbers released Wednesday by the US Bureau of Economic Analysis. The largest chunk of last year's foreign direct investment came from Canada ($66.2 billion), followed by the United Kingdom and Japan. Europe as a whole accounted for 40 percent of new foreign investment in the U.S.The figures come amid increasing trade tensions between the U.S. and several top economic allies.

It tells us that foreign investment is down because they feel American equities / securities are too expensive to buy at current levels. Just pay attention to are investments in US Treasuries. The next major auction is next week

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20 minutes ago, mthebold said:

Why is this a bad thing?

watch the market slide

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32 minutes ago, Ja’Nako Bezze said:

Foreign investment in the United States dropped 32% in 2017, according to numbers released Wednesday by the US Bureau of Economic Analysis. The largest chunk of last year's foreign direct investment came from Canada ($66.2 billion), followed by the United Kingdom and Japan. Europe as a whole accounted for 40 percent of new foreign investment in the U.S.The figures come amid increasing trade tensions between the U.S. and several top economic allies.

Capital is flowing toward China already

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29 minutes ago, Joanna said:

the figure is representing the second year of decline after a peak in 2015 when foreign investors' expenditure in the US hit $439.5 billion. I am sure 2018 will be worse. See the pattern?

Other angle is that 50% of profits for US business come from sales abroad and that trade war we started is going to create major problems in our economy.

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Just now, 李伟王芳 said:

Other angle is that 50% of profits for US business come from sales abroad and that trade war we started is going to create major problems in our economy.

Eventually the trade war is going to hurt profits big time.

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(edited)

I think with the UK leaving the EU it would be a good opportunity to explore the possibillty of an Anglosphere Free Trade Zone (with the possibility of free movement of Labour (but no unearned welfare entitlements)

Core members would be the USA, UK, Australia, Canada (if Turdeau would allow it), New Zealand. 

open to the Rep of Ireland and possibly middle income Caribbean and Pacific Island states. Could also consider countries such as Singapore, Iceland, Norway and Switzerland. 

What are the advantages?

  • We all share one common language
  • We have comparable states of wealth per head of population 
  • We have very similar legal systems
  • Standards across those countries are broadly similar
  • We are all Democratic 
  • Rates of corruption are relatively low. 
  • Next time the EU says 'we are the biggest trading block' we can laugh at them. 

 

Edited by NickW
  • Upvote 1

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38 minutes ago, Ja’Nako Bezze said:

Foreign investment in the United States dropped 32% in 2017, according to numbers released Wednesday by the US Bureau of Economic Analysis. The largest chunk of last year's foreign direct investment came from Canada ($66.2 billion), followed by the United Kingdom and Japan. Europe as a whole accounted for 40 percent of new foreign investment in the U.S.The figures come amid increasing trade tensions between the U.S. and several top economic allies.

What happened to "America Open for Business"?

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Just now, Stephen said:

What happened to "America Open for Business"?

that was long time ago

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21 minutes ago, 李伟王芳 said:

All I read recently is US companies moving the production abroad 

Not only that. Imagine how these numbers will look in a few months now that BMW, Honda, Toyota and Huyndai are all downsizing production in their US plants.

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50 minutes ago, Ja’Nako Bezze said:

Foreign investment in the United States dropped 32% in 2017, according to numbers released Wednesday by the US Bureau of Economic Analysis. The largest chunk of last year's foreign direct investment came from Canada ($66.2 billion), followed by the United Kingdom and Japan. Europe as a whole accounted for 40 percent of new foreign investment in the U.S.The figures come amid increasing trade tensions between the U.S. and several top economic allies.

As in 2016, the vast majority of foreign investment came from the acquisition of U.S. businesses, which accounted for 97.5 percent of all new foreign investment in 2017. Only $6.4 billion of the overall investment was aimed at establishing new U.S. businesses or expanding foreign-owned U.S. business.

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I think part of it, too, is that China pretty much has what it wanted from the US in terms of tech and now it's focusing on building up its homegrown companies. 

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For foreign companies investing in the US is becoming a liability.  The more you invest in the US the more you are exposed to US sanctions.

The European or Asian companies having heavily invested in the US or heavily depending of the US market are now the more exposed to Trump's blackmails (pull out of Iran or face sanctions... don't work on the  North Stream 2 pipeline or face sanctions...).

Is it still worth to invest in the US if this imply risking huge fines or loosing many other markets to please the US administration vagaries ?

 

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1 hour ago, Guillaume Albasini said:

For foreign companies investing in the US is becoming a liability.  The more you invest in the US the more you are exposed to US sanctions.

The European or Asian companies having heavily invested in the US or heavily depending of the US market are now the more exposed to Trump's blackmails (pull out of Iran or face sanctions... don't work on the  North Stream 2 pipeline or face sanctions...).

Is it still worth to invest in the US if this imply risking huge fines or loosing many other markets to please the US administration vagaries ?

 

that is why China is investing heavily in Africa. No questions asked, no risk, 

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4 hours ago, mthebold said:

You could equally argue that China's debt, lack of transparency, and tendency to screw foreign companies create serious business risks.  US companies may be better off reducing their exposure to China. 

Not to mention having your technology and trade secrets stolen.  I never understood the mad rush to invest in China.  It's a market that will never be all that profitable for US companies.

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2 hours ago, 李伟王芳 said:

For foreign companies investing in the US is becoming a liability.  The more you invest in the US the more you are exposed to US sanctions.

...

that is why China is investing heavily in Africa. No questions asked, no risk, 

??  How does investing the US expose you more to US sanctions?

Investing in Africa is no risk??  Ha!  Talk about lack of infrastructure, constant threat of war, not enough educated workers, a high level of corruption, etc.

There are REASONS why the economies of Africa suck.

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16 hours ago, RealusN said:

??  How does investing the US expose you more to US sanctions?

Investing in Africa is no risk??  Ha!  Talk about lack of infrastructure, constant threat of war, not enough educated workers, a high level of corruption, etc.

There are REASONS why the economies of Africa suck.

I was talking China’s growing use of “soft power” in Africa, especially educational and technological transfer initiatives. China has committed billions of dollars in development finance for Africa over the past decade as Beijing seeks to secure its political and economic clout on the continent. 

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