MUNICH, Dec 29 (Reuters) – There is no longer a German company among the world’s 100 most valuable companies. By the end of 2022, global stock markets will be more dominated than ever by American companies, although technology companies have fallen sharply in value over the past 12 months, according to analysis by management consultants EY on Thursday. . Eleven of the 12 most expensive publicly traded companies (as of December 27 close) are based in the United States, led by iPhone maker Apple, which is the only one to top the 2 trillion mark with a market value of $2.07 trillion. Only Arab oil giant Saudi Aramco can enter the US phalanx in second place, which at $1.87 trillion represents the revival of oil and energy stocks in the shadow of war in Ukraine.
German flagship SAP is still the country’s most valuable company at nearly $121 billion, but the software group has fallen to 106th place in the EY rankings. Number two in Germany is Munich-based technology group Siemens, which has to settle for $109 billion and 116th place. Deutsche Telekom came in 130th, just under the $100 billion mark. It is the only one of eleven German companies in the world’s top 300 to have increased in value this year – by 14%. With a market value of nearly $92 billion, Porsche AG is the 145th best-placed newcomer in the world. The sports car maker has clearly outperformed parent company Volkswagen, which has lost around 44% of its market value since the end of 2021.
Major German companies symbolize the long-term bearish trend in Europe on global stock exchanges. In 2007, 46 of the 100 most valuable stocks came from the old continent and 7 from Germany alone. In 2022, only 15 come from Europe – and none from Germany. The number of US and Canadian companies in the ranking nearly doubled to 62 out of 32 over the same period. With Nestlé (23rd place, $321 billion), Roche (32nd place, $262 billion) and Novartis (45th place, $196 billion), three of the top 50 come from Switzerland.
WHERE ARE GERMANY’S FUTURE PROSPECTS?
“Given the still significant importance of German companies to the global economy, Germany is clearly underrepresented on global stock exchanges,” said Henrik Ahlers, head of EY Germany. “But what matters for the stock market is not the successes of the past, but the prospects for the future.” Germany has so far failed to provide proof of this. “We are living in fundamental upheaval – although the rules are currently being set by US and Asian IT companies.” The impression is created that Europe only watches from afar. Many European companies are in deep restructuring, only a few young companies from the continent have reached the top of the world.
The fragmented capital market in Europe also contributes to the backlog of stock exchanges, explains the boss of EY. “The uniformity of capital market rules in Europe would be an important step.” By far the heaviest stock in Germany’s main Dax index, gas company Linde, is set to pull out of the Frankfurt Stock Exchange as it feels disadvantaged by the rules there. . The Irish-headquartered company rose to 59th out of 71 in the global stock exchange rankings with a market value of $162 billion this year.
PRICE DROP AT AMAZON AND TESLA
The fall in the stock markets has left its mark on the most expensive companies. The top 100 collectively lost $7.2 trillion in market value, or 20% of their total market cap. Shares of leader Apple and number three Microsoft each lost 30%, Google’s parent company Alphabet (fourth place) fell 41% and Amazon (fifth place) even lost half of its market value during the of the last twelve months. Electric car maker Tesla fell two-thirds from sixth to 20th place with a price drop, Facebook operator Meta from seventh to 26th place.
No German company in the “Top 100” of the world stock exchanges – the United States dominates
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