Peter-Jan Engelen

University of Antwerp. Utrecht University. Passionate about
#SustainableFinance, #InnovationFinance, #CorporateFinance, #CorporateGovernance, #CSR, #IPO.

[Peter-Jan Engelen @PeterJanEngelen]

RIP https://t.co/nciCwjWhkC

[Peter-Jan Engelen @PeterJanEngelen]

Vlaanderen kan enkel reguleren en taxeren ...

[De Tijd @tijd]

Vlaamse regering bekijkt fermettetaks https://t.co/f2mhZt3uTe

[Peter-Jan Engelen @PeterJanEngelen]

There is no place for weapons in a sustainable investment portfolio #responsiblefinance https://t.co/wWSFGeqTcX via @FT

[my_finance_professor @My_Finance_Prof]

BAM !!!

Nvidia -17%

Markets were bleeding yesterday.

And, not only Nvidia:

SMCI -13%

Oracle -15%

ARM -12%

ASML -7%

https://t.co/bHM8cZsJY8 -7%

The tech sector reacted heavily on the news of DeepSeek, a Chinese start-up in the AI sector.

This Chinese firm released an AI model last week that seems to perform at least as good as the current AI models, but a much lower cost. Rumors are that this AI model even outperforms models such as ChatGPT. The model seems to be developed in a much shorter time and at a price tag of millions instead of billions. On top, the model will be open source.

The next couple of weeks and months will show whether the rumors are entirely true. If they are, this is a major event and a very serious competitor and threat to the dominant US AI models.

But, even if it is not completely true, it does not matter. The news planted a seed in the heads of investors. Are those very high valuations of AI companies warranted? Will they be able to meet those very high expectations?

So investors drove many stock prices of firms banking on the AI wave south.

Is this the end of a so-called AI bubble? What do you think?

#AI #Nvidia #DeepSeek #GenAI #Oracle #ASML #bubble #China

(Current event discussion 030)

Data: Yahoo!Finance

Credits: Photo by Possessed Photography on Unsplash

[my_finance_professor @My_Finance_Prof]

A Messi IPO?

The international football star Lionel Messi, one of the best players all time (he won 8 times the Best Player in the World award), listed his real estate investment (REIT) firm Edificio Rostower Socimi in Madrid.

Shares started trading at 57.4 euros per share at the Portfolio Stock Exchange, a small European alternative market under Spanish supervision. The fund is valued at €223 million.

His firm owns seven hotels, three office spaces and five apartments in Spain, mostly in the Spanish region of Catalonia. This is no surprise as he moved from Argentina at the age of 12 years to join FC Barcelona’s where he stayed until 2021.

Would you invest in this REIT?

#listing #stock #exchange #equity #Madrid #IPO #Messi #REIT #Portfolio

(Current event discussion 029)

Credits: Photo by Pedro Chosco on Unsplash

[Peter-Jan Engelen @PeterJanEngelen]

Stop waisting our money https://t.co/Vqwt37JCSA

[my_finance_professor @My_Finance_Prof]

Have you seen the yield-to-maturities on European government bonds lately?

Not surprisingly some countries pay a very low risk premium on top of German government bonds, for instance, the Netherlands or Ireland, while some countries pay a much higher risk premium, such as Italy.

There are, however, more remarkable developments in this market. We can observe that France is currently paying a higher risk premium than Spain or Greece. Wow!

We can also observe that financial markets access Portugal less risky than Belgium. Wow again!

#government #bonds #YTM #risk #premium #default #eurozone #yield #yieldtomaturity #sovereign #sovereignrisk #France #Belgium #Greece #Portugal #Spain

(Current event discussion 026)

[my_finance_professor @My_Finance_Prof]

About half of the new startups fail after 5 years.

What are the main reasons why starting a new venture is so risky?

What the main reasons why new firms do not survive?

#startups #survival #failure #entrepreneurship #founders

(Fact 018: basic)

Source: CBInsights (2021)

[my_finance_professor @My_Finance_Prof]

What is the failure rate of startups in Europe? Does it matter in which country you start a new venture?

What is the top and bottom three of survival rate among European countries?

Why is the success so much bigger in Sweden or the Netherlands, and so much smaller in Portugal or Germany?

Any ideas?

#startups #survival #failure #entrepreneurship #founders

(Fact 017: basic)

Source: Eurostat (2024)

[my_finance_professor @My_Finance_Prof]

How many startups survive after 5 years?

[my_finance_professor @My_Finance_Prof]

What is the failure rate of startups?

Is it 90%?

Starting a new firm is a very challenging experience as the founders needs to overcome many obstacles before turning the new venture into a big success. So, it is no surprise to see many firms failing.

However, how many firms do actually fail?

The number you frequently come across is that 90% of startups fail. You find this number on different websites, in media publications of magazines as Forbes or Fortune.

90%? Really?

What do data tell us?

If we look at data from the US Bureau of Labor Statistics we learn that about 21% of new established firms fail after one year. This new goes up to 30% after two years, gradually increasing to 49% after five years.

Not exactly 90%.

After 10 years about 65% of new startups fails to exist. This number goes up to 80% after 20 years.

Data from Europe suggests that 19.29% of European firms fail after one year and 55.04% after five years.

#startups #survival #failure #entrepreneurship #founders

(Fact 016: basic)

Credits: Photo by Marcel Chavers on Unsplash

Source: BLS (2024); Eurostat (2024)

[Peter-Jan Engelen @PeterJanEngelen]

I am not leaving to Bluesky, the real news is here @elonmusk

[Peter-Jan Engelen @PeterJanEngelen]

@DjokerNole is a Legend!

[Novak Djokovic @DjokerNole]

This dream is long lived and fought for. I wanted to compete in the finals of Olympic games for such a long time. Representing my country at a global event is a huge privilege and honor that I cherish. Serbia will have a medal on Sunday!!! Ideeeemooooo 🥳🇷🇸🇷🇸🇷🇸🇷🇸

[Peter-Jan Engelen @PeterJanEngelen]

The gold reserve of the UK seems small compared to other countries #gold #reserve #UK

[my_finance_professor @My_Finance_Prof]

Which countries hold the largest gold reserves in the world?

[Peter-Jan Engelen @PeterJanEngelen]

Terechte oproep voor meer #responsiblebanking ? https://t.co/37kCiYInrn

[my_finance_professor @My_Finance_Prof]

How big is Nvidia?

[my_finance_professor @My_Finance_Prof]

How many basis points France needs to pay extra after the EU elections? #risk #premium #bonds #EU #France #yield #bonds #government

[Peter-Jan Engelen @PeterJanEngelen]

An end to single-use plastic bags? https://t.co/pXjPPnM1lp

[Peter-Jan Engelen @PeterJanEngelen]

I now have a sister account on X for my students: @My_Finance_Prof Everyone welcome to follow posts on finance and investments, also non-students 😀

[Peter-Jan Engelen @PeterJanEngelen]

@stefamichielsen Een doodgeboren kind ...