2010 is witnessing a divide in the world’s economy. Asia not including Japan is witnessing a ‘M & A’ boom, while the ‘west’ is experiencing a slump. The sovereign debts situation is putting off would be investors and business builders in Europe and the USA. But countries throughout Asia are finding the current times very favourable to attracting investment money.
This will be the trouble for Europe and the USA in pulling out of the current recession. Confidence has been gradually worn away by the extent of indebtedness to the point where deal-makers are leaving and looking elsewhere in the globe for future growth.
The FT today writes –
There were $89.4bn worth of deals in the Asia-Pacific region, excluding Japan, during the first three months of the year – an increase of almost 93 per cent from the same period a year earlier.
However, European M&A activity weakened for the fifth consecutive quarter as sovereign debt worries deterred corporate acquisitions. The value of deals in Europe fell 5.7 per cent during the period, the slowest start to the year for the region since 1998. The US was quieter. In spite of a series of big healthcare deals, US activity dropped 25.6 per cent to $148bn in the quarter.
They used to say ‘Head West, young man.’ Today, make that ‘East’.