Why Did U.S. Corporate Profits Plunge in Fourth Quarter?

Why Did U.S. Corporate Profits Plunge in Fourth Quarter?

Assessment

Interactive Video

Business

University

Hard

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The video discusses the US GDP growth revision to 1.4% and the significant decline in corporate profits. It highlights concerns about market valuations, potential risks from dollar strength, and the impact of global economic factors. The discussion shifts to the Japanese market, examining corporate culture changes and governance challenges. The video emphasizes the importance of profitability and global growth for market stability.

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7 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the revised annualized growth rate for the US GDP in the latest quarter?

0.8%

2.0%

1.4%

1.0%

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a potential risk to equities if corporate profits continue to decline?

A straight line up in stock prices

Stable interest rates

Increased corporate buybacks

Another leg down in equities

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What are the two main reasons investors might be long on the Japanese equity market?

Confidence in the US dollar and European markets

Anticipation of higher interest rates and stable inflation

Expectation of a weaker yen and belief in corporate culture transformation

Belief in a stronger yen and government reforms

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a significant challenge in transforming Japanese corporate culture?

High inflation rates

Activists' past failures

Overnight changes in governance

Lack of government support

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which index has underperformed the Nikkei 225 this year despite government support?

S&P 500

Nikkei 400

Dow Jones

FTSE 100

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What factor contributed to the underperformance of Japanese indices in the first quarter?

Rising inflation

Hedge fund deleveraging

Stable corporate profits

Increased foreign investments

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a key reason for the hot money flows pulling out of Japan?

Hedge fund losses elsewhere

Stable yen value

Successful economic reforms

Restart of inflation