WCA September 2011

From the americas

the United States. Besides Australia, they turned to stock markets in Britain, Taiwan, South Korea and Canada.” Citing data from the accounting firm Grant Thornton (Chicago) and the British-based consultancy Dealogic, Mr Bowley noted that the 10 US companies that went public abroad in 2010 – and 75 from 2000 to 2009 – compare with only two US companies choosing foreign exchanges from 1991 to 1999. The trend, he believes, reflects a decidedly global outlook toward stocks, just as the number of public companies in the US is shrinking. According to the World Federation of Exchanges, from a peak of more than 8,800 American companies at the end of 1997, that number fell to about 5,100 by the end of 2009: a 40% decline. (“Fast-Growing Companies Look Abroad for Investors,” 7 th June). The former Brussels bureau chief for the Herald Tribune pointed out that some companies have merged, or gone out of business, or been taken private by private equity firms. Other young businesses have chosen to sell themselves to bigger companies rather than go public. And, certainly, as the economy improves and investors shaken by the financial crisis begin to regain confidence, American stock markets may once again open up for companies trying to go public. Listings may rise. Right now, however, nearly three years since the financial crisis began, markets in the United States are barely open to many companies, leading them to turn to investors abroad. As Mr Bowley wrote: “Denied a chance to list their stock and go public [at home], they are finding ready buyers of their shares on foreign markets.” The jobs connection ❖ ❖ As with all business trends in the US in a period of persistent unemployment, the venture capital quest is being monitored for its jobs-related significance. Executives and analysts consulted by the Herald Tribune expressed concern that, as young, fast-growing companies are forced to look overseas for public status and investors, they may increasingly shift their geographic focus. As a result, any jobs they create will be abroad. David Weild, a former vice-chairman of the New York- based securities exchange NASDAQ, told Mr Bowley: “Issuers have to put themselves through a grinder to go overseas, so any significant percentage of overseas listings is a sign that our markets have become hostile to innovation and job formation.” ❖ ❖ Small business is also a worry point in Canada, in an otherwise favourable outlook for employment. The Canadian jobless rate fell to its lowest level in more than two years in May as a combination of more jobs and fewer people seeking work pushed the rate to 7.4%. Statistics Canada said 22,300 new jobs were created in the month, the most recent for which data is available. This was slightly above consensus estimates. But, as noted by Julian Beltrame of the Canadian Press, while all the jobs were full-time, they came in the self- employment category, which could indicate that many Canadians turned to creating their own occupation

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Wire & Cable ASIA – September/October 2011