As executives gather in Davos, Switzerland, this week for the World Economic Forum's annual meeting, business confidence is rising, with a weekly gauge compiled by Moody's Analytics Inc. at its highest level since the survey began in 2003.
Mergers and acquisitions are surging, with $130 billion in takeover offers already announced this year. And enterprises from Microsoft Corp. to Volkswagen AG are readying plans to step up capital spending after companies have squirreled away a record amount of cash to protect against a new financial crisis.
"The animal spirits are coming back," said Mark Zandi, chief economist for New York-based Moody's. "This is going to be a good year" for capital expenditures and hiring.
Behind the projected upturn: increased confidence in the durability of expansion following faster U.S. and global growth late last year, the need to replace aging and out-of-date equipment, and a waning of what Zandi calls "existential fears," including concerns about a breakup of the euro region.
Full story at http://www.bloomberg.com/news/2014-01-20/investor-animal-spirits-spread-to-companies-worldwide.html
Mergers and acquisitions are surging, with $130 billion in takeover offers already announced this year. And enterprises from Microsoft Corp. to Volkswagen AG are readying plans to step up capital spending after companies have squirreled away a record amount of cash to protect against a new financial crisis.
"The animal spirits are coming back," said Mark Zandi, chief economist for New York-based Moody's. "This is going to be a good year" for capital expenditures and hiring.
Behind the projected upturn: increased confidence in the durability of expansion following faster U.S. and global growth late last year, the need to replace aging and out-of-date equipment, and a waning of what Zandi calls "existential fears," including concerns about a breakup of the euro region.
Full story at http://www.bloomberg.com/news/2014-01-20/investor-animal-spirits-spread-to-companies-worldwide.html
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