European stocks face more turbulence. In good times, companies pay a premium known as 'goodwill' when they take over another firm. This is a reflection of the value of the target's intangible assets such as its brand name or market share.
Accounting rules force companies to review goodwill annually, notes Alexis Xydias on Bloomberg.com, and with the good times well and truly over the pan-European market fell by 46% last year hefty write-downs are now on the cards.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
But on the plus side, it "cleans things up" and reduces overall uncertainty, says Guillaume Duchesne at Fortis Private Banking.
-
The most resilient ski resorts in the world – where is the best place for snow retention?Luxury ski resorts are thriving, with some destinations better positioned to weather the storm of warmer winters than others. We look at the most resilient locations for snow
-
Clubrooms by No1 Lounges review: A luxury airport lounge for escaping the hustle and bustleMoneyWeek visits Clubrooms by No 1 Lounges, an airport lounge intended to elevate the pre-flight experience for passengers seeking privacy
