The Dow And The Goddess of Productivity

The Dow And The Goddess of Productivity

The Dow,  a stock market index that measures the stock performance of 30 large companies listed on stock exchanges in the United States, was inaugurated in 1885. It took 72 years to hit 1,000 points in 1972. But from 20,000 to 29,000 points, it was under 3 years. Simply, there is a massive acceleration on wealth creation at an unprecedented level in this age where Amazon, Apple, Google’s Alphabet and Microsoft have touched the face of T-alpha. Yes, $1 trillion market cap. The T-alpha is unified by one thing: technology, the goddess of productivity. Sure, there is a concern that the wealth may not be distributed fairly and equally, but that does not mean the goddess did not create or accelerate wealth creation.

The Dow Jones Industrial Average on Wednesday closed at the psychologically significant 29,000 milestone, marking the first finish at or above that level for the blue-chip benchmark.

The Dow closed out Wednesday’s action, following the signing of the first phase of a multi-staged trade pact between China and the U.S., up 0.3% to 29,030.22, a gain of 90.55 points.

The gain marks the 40th trading day since its last milestone on Nov. 15, and the fastest such ascent for the Dow since January of 2018 when it took only eight trading sessions to close at 26,000

 

 

 

This productivity is everywhere: “In 2019, Africa had 110 companies listed on the London Stock Exchange, with market capitalization of $197 billion”, from a Remarks Delivered by Dr. Akinwumi A. Adesina, President of the African Development Bank Group at the London Stock Exchange, London United Kingdom, January 22, 2020

Good morning!

I would like to thank Don Robert, the Chairman of the London Stock Exchange Group for inviting me to the exchange. It’s great to be here! It’s such an honor and privilege to be asked to open the market today.

The London Stock Exchange is the 3rd largest in the world with a market capitalization of about $4.6 trillion.

And Africa is tapping into the London Stock Exchange.

In 2019, Africa had 110 companies listed on the London Stock Exchange, with market capitalization of $197 billion.

As wealth grows in Africa, it leads to wealth right here also in the United Kingdom.

African economies are growing strong and the prospects for greater wealth creation are compelling.

Last year 17 African countries grew by 3-5% and 20 countries grew by 5% and above. Indeed, six of the fastest-growing economies in the world are in Africa.

Foreign direct investments to Africa grew at 11% last year, far exceeding the 4% growth in Asia, even as FDI declined by 13% globally and by 23% in developed economies.

This is a resurgent Africa!

The Africa Continental Free Trade Area is worth $3.3 trillion, making it the largest free trade zone in the world.

Africa can no longer be ignored!

That’s why I am excited about the UK-Africa Investment Summit held on Monday right here in London.

It’s time to recalibrate UK-Africa trade and investment. And a good place to start on investments is on infrastructure.

The continent’s unmet infrastructure demand is worth $68-108 billion a year, offering huge opportunities for global investors.

The London Stock Exchange can help to unlock a lot of capital for meeting Africa’s investment opportunities.

The Africa Development Bank has been a close partner of the London Stock Exchange. We participate on the Board of the London Stock Exchange Africa Advisory Group. And we are delighted with our partnership on the Companies that inspire Africa report.

The Africa Investment Forum, launched by the African Development Bank, helped to attract investment interests worth $40.1 billion last year, in less than 72 hours.

We want to do more to leverage institutional investors.

With institutional investors holding £8 trillion of assets under management in the UK, and only 1% of that going to Africa, it is time to change the trend.

The African Development Bank looks forward to working with the London Stock Exchange to deepen the development of capital markets in Africa, and to attract UK institutional investors to Africa.

The synthetic securitization of $1 billion issued by the Bank has attracted global institutional investors to infrastructure in Africa. The Bank is also working on improving African Capital markets access to domestic and international markets passive investment flows.

The Bank will be working with the London Stock Exchange Africa Advisory Group to attract a greater portion of the $5 trillion in global Exchange Traded Fund assets under management into African capital markets. And we look forward to developing green bond markets with you in Africa.

We are excited about the recent listing of Kenya’s Acorn Holdings, the country’s first green bond in the Nairobi and London Stock Exchanges in January 2020.

The African Development Bank also hopes to partner with the London Stock Exchange on our planned initiative to unlock dormant capital from existing fixed assets across Africa, with an estimated value of $4-5 trillion.

My ringing of the bell here today marks the beginning of a new, exciting, strategic and impactful engagement between the African Development Bank and the London Stock Exchange to jointly expand wealth creation in Africa and the UK.

So let’s get the partnership on its way.

And let the trade begin

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2 thoughts on “The Dow And The Goddess of Productivity

  1. It is called Trump Economy, no other argument can obliterate that. The pundits and ‘experts’ have speculated gloom and doom, including recession, yet Dow is running away.

    The tech sector is on top of the food chain, with their exponential growth towering above traditional metrics and predictions.

    Again, the idea of fairness and equality when it comes to wealth distribution is utopian, capitalism makes such thought unrealistic. The focus should rather be on equal opportunities and wellbeing, and not pay gap between the highest earners and lowest earners, except you want to embrace socialism.

    We need the billionaires around, so levelling everyone up cannot be considered a credible alternative.

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