Experience Stern | News & Events

Excerpt from CNBC -- "We're not going to have a global recession because China is going to be able to avoid a hard landing. Therefore, the stock market is going to go up there. Their currency is going to be stable. And therefore, it's not going to be a contagion to other emerging markets."

Excerpt from MIT Sloan Management Review -- "Today’s rapid pace of technological change has fundamentally transformed global IT outsourcing. Traditionally viewed as a cost-saving measure, IT outsourcing is increasingly leveraged as a strategic tool for acquiring cutting-edge innovation. Many companies are expanding their portfolios of IT suppliers to include smaller, highly innovative companies. This pursuit of emerging technologies and capabilities, however, has elevated the complexity of managing supplier portfolios. The outsourcing practices that companies have been maturing in the past decade are under a new level of duress. Today, organizations need to reimagine IT outsourcing strategies in increasingly turbulent business environments."

Excerpt from Business Insider -- "'This recession has been more persistent than others because it was perceived as an extremely unlikely event,' wrote the economists in a new study. 'Observing the crisis in 2008-09 caused agents to re-estimate macro risk. For example, in 2006, no one raised the possibility of financial panic. Today, the question of whether the financial crisis might repeat itself arises frequently and option prices continue to reflect heightened tail risk (defined as the probability of large adverse shocks).'"

Excerpt from The Boston Globe -- "'A Ferrari costs 10 times as much as a good car, and 7,000 people make that purchase each year. You can get great speakers for a 100th of $80,000,' [Galloway] said. 'I don’t doubt these are better speakers, but are they 100 times better?'"

Excerpt from CNBC -- "I'll tell you the two ways you can justify investing in Amazon and then I'll tell you why I would not invest in either. The first is to think of it as a trade. You buy at $625, you sell at $650, you're going to make money. And if the momentum in the stock carries it forward, you're going to make money. Forget about value; play it as a pricing game. The other is, there is a story out there that you can actually use to get to $625. It's a plausible story. It's a story where Amazon dominates three different businesses: the retail business, the entertainment business and the cloud-computing business. And you could get to $625. And if that's the reason you're investing in Amazon, then all the more power to you. From my perspective, though, the odds of that story unfolding are low, so as an investor, I'm not that interested in Amazon. I love it as a company, but as an investment, it's not for me."

Excerpt from Bloomberg -- “'All large European banks are under great pressure from regulatory changes and low stock prices to change their business models,' Roy Smith, a finance professor at New York University’s Stern School of Business, said in an e-mail. 'These changes have to be quite significant to make enough difference.'”

Excerpt from Xinhua -- "'I think in the short term the GDP could get worse, [and] the process of rebalancing could actually be painful, but a short-term pain to make the country healthier and more vibrant in the future,' said Foudy."

Excerpt from The Economist -- "On October 26th, an op-ed in the Wall Street Journal by Michael Spence and Kevin Warsh, both of Stanford University, argued that the Federal Reserve’s $3 trillion bond-buying programme, which was designed to push down long-term rates and boost corporate borrowing, has actually caused business investment to fall. The authors write that the Fed’s unconventional policies to expand the money supply, known as quantitative easing (QE), have made short-term financial assets like stocks and bonds more appealing as their capital value increases, thereby diverting capital from more productive longer-term investments in the 'real economy'. The result has been low investment growth, weak productivity, and stagnant wages."

Excerpt from The New York Times -- "'I think it’s just become wildly overblown because everything gets wildly overblown today,' Professor Winer said. 'The total amount of attention that Starbucks gets and the reaction to it is something that could, in fact, work in their favor.'"

Excerpt from Marketplace -- "'Gold isn't produced fast enough to keep up with the growth of the economy,' said Richard Sylla, professor of economics at New York University."

Excerpt from Bloomberg -- "I don't think an outfit like Fidelity has any business being in this space, to be quite honest. I don't think they know how to play the pricing game and I think when you get these public company investors in private spaces, you're really asking for trouble."

Excerpt from WIRED -- "'The moment that they began making their own films they had to recognize that they were without many opportunities to pursue international business,' says Alvin Lieberman, executive director of the Entertainment, Media, and Technology Initiative at NYU’s Stern School of Business. After all, most major film studios now make more money from international markets than the United States, and have adjusted the development process to accommodate that change."

Excerpt from Bloomberg -- "The first thing I came up with for right now has got to be the refugee crisis in Europe. I mean, we've got some 5 million nearly refugees coming just from Syria. Only 6% made it to Europe thus far. A lot more are coming. The ability of the Europeans to integrate these people is virtually nil. The cultural backlash. The populism that comes in the European capitals as a consequence."

Excerpt from The New York Times -- "Jonathan Haidt, a professor of social psychology at N.Y.U., noted in an email that for liberals, 'compassion for those who are suffering is the most crucial virtue.' Conservatives, in contrast, 'believe more in "just deserts" and making criminals pay.'"

Excerpt from Pudong Times -- "Emerging markets, especially in China, have recently accelerated liberalization processes in numerous financial sectors. Nobel winner Robert Engle, Director of the Volatility Institute at NYU Stern School of Business, gave a speech about the risks of 2016. The audience took part in a wide discussion of financial topics."

Excerpt from the San Francisco Chronicle -- "'Their narratives are grounded in the truth,' [Sundararajan] said. 'Uber creates a form of work for hundreds of thousands of people. Airbnb’s hundreds of thousands of hosts are leading better lives because they can supplement their income with their Airbnb revenues.' Although they are multibillion-dollar companies, their models 'actually do share a pretty large fraction of the value created (by renting rooms or giving rides) with the people providing the service.'"

Excerpt from LiveMint -- "Pankaj Ghemawat (No. 19) is based at New York’s Stern School and IESE Business School in Spain. Nominated for the 2013 Thinkers50 Global Solutions Award for his Global Connectedness Index, Ghemawat was the youngest full professor at Harvard Business School. His 2011 book World 3.0 won the Thinkers50 Book Award."   

Excerpt from Investor's Business Daily -- "It has a potential to be a game changer,' said Anindya Ghose, professor at New York University's Stern School of Business. 'I think the rest of the world will look to (the U.S.) to shape the agenda and make the rules.'"

Excerpt from Les Echos -- "For a long time we lived with the idea that the world had become flat and the border had completely disappeared, thanks to globalization. This was never the case! Economic, cultural, administrative and political differences between countries have always existed. Today, the DHL Global Connectedness Index 2014, on which I worked, measures levels of integration between countries, and shows that we are almost back to the state where we were before the crisis, the same 'levels' of globalization. But if we look in detail, it is the flow of people and information that have increased, while the growth in trade and capital transfers, which affect the operation of enterprises, are stagnating."

Excerpt from Financial News -- "Getting rid of the troublesome investment banks leaves the parents with much diminished scale and more limited aspirations, but the parents would be able to concentrate on their commercial and retail businesses and have a chance to improve their stock prices considerably, as UBS has done, while greatly easing the minds of their regulators."

Excert from The Wall Street Journal -- "The ratio can be calculated by dividing operating income—typically defined as earnings before interest and taxes, or EBIT—by its interest expense. ... 'If your coverage ratio is 1, then you have no cushion,' says Dan Gode, accounting professor at the New York University Stern School of Business. Simply: When a company’s operating earnings are equal to its borrowing costs (giving it a coverage ratio of 1.0), there is no margin for error. If the business meets a rough patch and earnings drop, then the company might not be able to pay the interest on its loans. 'If the ratio is north of 3 or 4, then you have some cushion,' Prof. Gode adds."

Excerpt from Fortune -- "Focusing on too narrow of an audience reduces its potential as a form of entertainment. Conversely, acknowledging women as part a financially viable part of the total gamer audience forces game companies to innovate their businesses."

Excerpt from Forbes -- "Insisting on clear prose analysis rather than hard numbers keeps you from sliding down the slope that Paul Romer, an economist at NYU, recently named ‘Mathiness’, i.e. economics masquerading as science through math. Avoiding the 'mathiness trap' will thereby make you more likely to examine the logic and assumptions underpinning the drivers and constraints that are driving the situation."

Excerpt from the Financial Times -- "In the US, economists John Asker, Joan Farre-Mensa and Alexander Ljungqvist have found evidence that public companies invest substantially less and are less responsive to changes in investment opportunities, especially in industries where share prices are most sensitive to earnings news."

Excerpt from The New York Times -- "'We’re at an incredible impasse,' said Luís Cabral, a Portuguese economist and professor at New York University. 'There are two different readings of this election, both legitimate, but with opposite prescriptions in terms of what should be done next.'"